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                                                                    EXHIBIT 10.9
                                 LEASE AGREEMENT

1. PARTIES. This Lease, dated for reference purposes only, April 3, 2006, is
made by and between QUEEN INVESTMENT COMPANY, LLC, a Washington Limited
Liability Company (herein called "Landlord"), and CELEBRATE EXPRESS, INC., a
Washington corporation (herein called "Tenant").

2. PREMISES. Landlord hereby leases to Tenant and Tenant leases from Landlord
for the term, at the rental, and upon all of the conditions set forth herein,
that certain real property situated in the City of Kirkland, County of King,
State of Washington, commonly known as the 405 Business Park, located at 11232
120th Avenue NE, Kirkland, Washington 98033 and described as approximately 2,500
square feet and being situated on the first floor, Suite 108 and 109. Said real
property, including the land and all improvements thereon, is herein called the
"Premises". A map showing the Premises is attached hereto as Exhibit A and by
this reference made a part hereof.

3. TERM.

      3.1 TERM. The term of this Lease shall be for sixty (60) months commencing
on December 1, 2006, continuing through November 30, 2011, unless sooner
terminated pursuant to any provisions hereof.

      3.2 DELAY IN COMMENCEMENT. Notwithstanding said commencement date, if for
any reason Landlord cannot deliver possession of the Premises to Tenant on said
date, Landlord shall not be subject to any liability therefore, nor shall such
failure affect the validity of this Lease or the obligations of Tenant hereunder
or extend the term hereof, but in such case Tenant shall not be obligated to pay
rent until possession of the Premises is tendered to Tenant. If the actual term
commencement date be a date other than the scheduled term commencement date, all
dates set forth in this Lease Agreement shall be adjusted accordingly. However,
if Landlord shall not have delivered possession of the Premises within one
hundred twenty (120) days from said commencement date, Tenant may, at Tenant's
option, by notice in writing to Landlord within ten (10) days thereafter, cancel
this lease. If either party cancels as herein provided, Landlord shall return
any money previously deposited by Tenant and the parties shall be discharged
from all obligations hereunder. In no event, however, shall Tenant have the
right to cancel this Lease because of any delay in delivering possession of the
Premises as the result of (i) any act of God or the elements, (ii) shortage or
unavailability of necessary materials, supplies, or labor, (iii) shortage of or
interruption in transportation or facilities, (iv) regulations or restrictions,
or (v) any other cause beyond Landlord's reasonable control unless such delay
exceeds one year from said commencement date, then either party may cancel on
written notice to the other prior to delivery of possession.

      3.3 EARLY POSSESSION. In the event that Landlord shall permit Tenant to
occupy the Premises prior to the commencement date of the term, such occupancy
shall be subject to all of the provisions of this Lease. Said early possession
shall not advance the termination date of this Lease.

      3.4 DELIVERY OF POSSESSION. Tenant shall be deemed to have taken
possession of the Premises when any of the following occur: (a) a Certificate of
Occupancy is granted by the proper governmental agency, or (b) upon issuance of
a Certificate by Landlord's architect or contractor stating that the Premises
are ready for occupancy.

4. RENT. Tenant shall pay to Landlord as rent for the Premises equal monthly
installments as outlined on EXHIBIT B, in advance, on the first day of each
month of the term hereof. Tenant shall pay Landlord upon execution hereof the
sum of One Thousand Five Hundred and No/100 Dollars ($1,500.00), as rent for
December 2006. Rent for any period during the term hereof

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which is for less than one (1) month shall be a pro rata portion of the monthly
installment. Rent shall be payable without notice or demand and without any
deduction, offset, or abatement, in lawful money of the United States of America
to Landlord at the address stated herein or to such other persons or at such
places as Landlord may designate in writing.

6. USE.

      6.1 USE. The Premises shall be used and occupied only for warehousing,
manufacturing, packaging, mailing and associated office and marketing of
merchandise and accessory retail operations as are legal within City of Kirkland
zoning and for no other purpose without prior written consent of Landlord, which
consent may be withheld or conditioned as Landlord may deem appropriate within
the exercise of its sole discretion.

      6.2 COMPLIANCE WITH LAW. Tenant shall, at Tenant's expense, comply
promptly with all applicable statutes, ordinances, rules, regulations, orders,
and requirements in effect during the term or any part of the term hereof
regulating the use by Tenant of the Premises. Tenant shall not use or permit the
use of the Premises in any manner that will tend to create waste or a nuisance,
or, if there shall be more than one tenant of the building containing the
Premises, which shall tend to unreasonably disturb such other tenants.

      6.3 CONDITION OF PREMISES. Tenant hereby accepts the Premises in their
condition existing as of the date of the possession hereunder, subject to all
applicable zoning, municipal, county and state laws, ordinances and regulations
governing and regulating the use of the Premises, and accepts this Lease subject
thereto and to all matters disclosed thereby and by any exhibits attached
hereto. Tenant acknowledges that neither Landlord nor Landlord's agent has made
any representation or warranty as to the suitability of the Premises for the
conduct of Tenant's business.

      6.4 INSURANCE CANCELLATION. Notwithstanding the provisions of Article 6.1
hereinabove, no use shall be made or permitted to be made of the Premises nor
acts done which will cause the cancellation of any insurance policy covering
said Premises or any building of which the Premises may be a part, and if
Tenant's use of the Premises causes an increase in said insurance rates, Tenant
shall pay any such increase.

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      6.5 LANDLORD'S RULES AND REGULATIONS. Tenant shall faithfully observe and
comply with the rules and regulations as attached in Exhibit C, which Landlord
shall from time to time, promulgate. Landlord reserves the right from time to
time to make reasonable modifications to said rules and regulations. The
additions and modifications to those rules and regulations shall be binding upon
Tenant upon delivery of a copy of them to Tenant. Landlord shall not be
responsible to Tenant for the nonperformance of any said rules and regulations
by any other tenants or occupants.

7. MAINTENANCE, REPAIRS AND ALTERATIONS.

      7.1 LANDLORD'S OBLIGATIONS. Subject to the provisions of Article 9, and
except for damage caused by any negligent or intentional act or omission of
Tenant, Tenant's agents, employees, or invitees, Landlord, at Landlord's
expense, shall keep in good order, condition and repair the foundations,
exterior walls and the exterior roof (see Article 7.2 below) of the Premises.
Landlord shall not however, be obligated to paint such exterior, nor shall
Landlord be required to maintain the interior surface of exterior walls,
windows, doors or plate glass. Landlord shall have no obligations to make
repairs under this Article 7.1 until a reasonable time after receipt of written
notice of the need for such repairs. Tenant expressly waives the benefits of any
statute now or hereafter in effect which would otherwise afford Tenant the right
to make repairs at Landlord's expense or to terminate this Lease because of
Landlord's failure to keep the Premises in good order, condition and repair.

      7.2 TENANT'S OBLIGATIONS. Subject to the provisions of Article 7.1 and
Article 9. Tenant, at Tenant's expense, shall keep in good order, condition and
repair the Premises and every part thereof (regardless of whether the damaged
portion of the Premises or the means of repairing the same are accessible to
Tenant) including, without limiting the generality of the foregoing, all
plumbing, heating, air conditioning, ventilating, electrical and lighting
facilities and equipment within the Premises, fixtures, interior walls,
ceilings, windows, doors, plate glass, and skylights, tenant identification
signs within the Premises and fences surrounding the Premises including but not
limited to damage due to break-ins, theft or vandalism. During the term of this
Lease, Landlord shall contract for the maintenance of heating, ventilating and
air conditioning (HVAC) systems and the expenditure for such maintenance, shall
be charged and treated as a common area expense as stated in Article 19.
Landlord, at its option, may require Tenant to contract for and directly pay for
the maintenance of the HVAC system for the Premises. Roof repairs up to $5,000
per year shall be treated as a common area maintenance expense in accordance
with Articles 11 and 19. Tenant shall reimburse Landlord for all damage done to
the Premises, normal wear and tear excepted, occasioned by any act or omission
of Tenant or Tenant's officers, contractors, agents, invitees, licensees, or
employees, including, but not limited to, cracking or breaking of glass.

      The repainting of the exterior of the Premises shall be treated as a
common area expense in accordance with Articles 11 and 19. The annual charges
for said exterior painting shall be based upon one-fifth of the amount of the
actual cost incurred until fully recovered over the ensuing five (5) year
period.

      7.3 SURRENDER. On the last day of the term hereof, or on any sooner
termination, Tenant shall surrender the Premises to Landlord in good condition,
broom clean, ordinary wear and tear excepted. Tenant shall repair any damage to
the Premises occasioned by its use thereof, or by the removal of Tenant's trade
fixtures, signs, furnishings and equipment pursuant to Article 7.5, which repair
shall include the patching and filling of holes and repair of structural damage.

      7.4 LANDLORD'S RIGHTS. If Tenant fails to perform Tenant's obligations
under this Article 7, Landlord may, at its option (but shall

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not be required to) enter upon the Premises, after ten (10) days prior written
notice to Tenant or with no prior written notice if an emergency, and put the
same in good order, condition and repair, and the cost thereof together with
interest thereon at the rate of sixteen percent (16%) per annum, shall become
due and payable as additional rent to Landlord together with Tenant's next
rental installment.

      7.5 ALTERATIONS AND ADDITIONS.

            (a) Tenant shall not, without Landlord's prior written consent, make
any alterations, improvements, or additions in, on, or about the Premises,
except for nonstructural alterations not exceeding One Thousand Dollars ($1,000)
in cost. As a condition to giving such consent, Landlord may require that Tenant
remove any such alterations, improvements, additions or utility installations at
the expiration of the term, and to restore the Premises to their prior
condition.

            (b) Before commencing any work relating to alterations, additions
and improvements affecting the Premises (none of which are required or requested
by Landlord, nor any obligation of Tenant under this Lease), Tenant shall notify
Landlord in writing of the expected date of commencement thereof. Landlord shall
then have the right at any time and from time to time to post and maintain on
the Premises such notices as Landlord reasonably deems necessary to protect the
Premises and Landlord from mechanic's liens, materialmen's liens, or any other
liens. In any event, Tenant shall pay, when due, all claims for labor or
materials furnished to or for Tenant or for use in the Premises. Tenant shall
not permit any mechanic's or materialmen's liens to be levied against the
Premises for any labor or material furnished to Tenant or claimed to have been
furnished to Tenant or to Tenant's agents or contractors in connection with work
of any character performed or claimed to have been performed on the Premises by
or at the direction of Tenant.

            (c) Unless Landlord requires their removal, as set forth in Article
7.5(a), all alterations, improvements, or additions which may be made on the
Premises shall become the property of Landlord and remain upon and be
surrendered with the Premises at the expiration of the term. Notwithstanding the
provisions of this Article 7.5(c), Tenant's machinery, equipment and trade
fixtures, other than that which is affixed to the Premises so that it cannot be
removed without material damage to the Premises, shall remain the property of
Tenant and may be removed by Tenant subject to the provisions of Article 7.3.

8. INSURANCE INDEMNITY.

      8.1 INSURING PARTY. As used in this Article 8, the term "insuring party"
shall mean the party who has the obligation to obtain the insurance required
hereunder. The insuring party in this case shall be the Landlord. Tenant shall
reimburse Landlord for the cost of the insurance in accordance with Article 19.

      8.2 LIABILITY INSURANCE. Tenant shall obtain and keep in force during the
term of this Lease a policy of comprehensive public liability insurance insuring
Landlord and Tenant against all liability arising out of the ownership, use,
occupancy or maintenance of the Premises and all areas appurtenant thereto. Such
insurance shall be in an amount of not less than One Million Dollars
($1,000,000) for injury or death of any person in any one accident or
occurrence. Such insurance shall further insure Landlord and Tenant against
liability for property damage of at least Five Hundred Thousand Dollars
($500,000). The limits of said insurance shall not, however, limit the liability
of Tenant hereunder. In the event that the Premises constitute a part of a
larger property said insurance shall have a Landlord's Protective Liability
endorsement attached thereto. If Tenant shall fail to procure and maintain said
insurance Landlord may, but shall

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not be required to, procure and maintain the same, but at the expense of Tenant.

      8.3 PROPERTY INSURANCE. The insuring party shall obtain and keep in force
during the term of this Lease a policy or policies of insurance covering loss or
damage to the Premises, in the amount of the full replacement value thereof, or
as required by any lender, providing protection against all perils included
within the classification of fire, extended coverage, vandalism, malicious
mischief, special extended perils (all risk) and sprinkler leakage. Said policy
may include up to $1,000 deductible, the cost of said deductible shall be borne
in accordance with Articles 7.1 and 7.2. In addition thereto, insuring party
shall maintain (i) full coverage plate glass insurance on the Premises, (ii) air
conditioning equipment, and other pressure vessels systems located in, on, or
about the Premises with limits of not less than One Hundred Thousand Dollars
($100,000) per occurrence and (iii) rent loss insurance in favor of Landlord
insuring Landlord against any loss of rental from damage or destruction of the
premises for a period of least twelve (12) months from the date of such damage
or destruction. Said insurance shall provide for payment for loss thereunder to
Landlord or to the holder of a first mortgage or deed of trust on the Premises.
If the insuring party shall fail to procure and maintain said insurance, the
other party may, but shall not be required to, procure and maintain the same,
but at the expense of the Tenant.

      8.4 INSURANCE POLICIES. Insurance required hereunder shall be in companies
rated A1, AAA or better in "Best Insurance Guide". The insuring party shall
deliver prior to possession, to the other party, copies of policies of such
insurance or certificates evidencing the existence and amounts of such insurance
with loss payable clauses satisfactory to Landlord. No such policy shall be
cancelable or subject to reduction of coverage or other modification except
after ten (10) days prior written notice to Landlord. If Tenant is the insuring
party, Tenant shall, within ten (10) days prior to the expiration of such
policies, furnish Landlord with renewals thereof, or Landlord may order such
insurance and charge the cost thereof to Tenant, which amount shall be payable
by Tenant upon demand. Tenant shall not do or permit to be done anything that
shall invalidate the insurance policies referred to in Article 8.3. Tenant shall
forthwith, upon Landlord's demand, reimburse Landlord for any additional
premiums attributable to any act or omission or operation of Tenant causing such
increase in the cost of insurance. If Landlord is the insuring party, and if the
insurance policies maintained hereunder cover other improvements in addition to
the Premises, Landlord shall deliver to Tenant a written statement setting forth
the amount of any such cost increase and showing in reasonable detail the manner
in which it has been computed.

      8.5 WAIVER OF SUBROGATION. Tenant and Landlord each waive any and all
rights of recovery against the other, or against the officers, employees, agents
and representatives of the other, for loss of or damage to such waiving party or
its property or the property of others under its control, where such loss or
damage is insured against under any insurance policy in force at the time of
such loss or damage provided that this waiver of subrogation shall not in any
manner absolve Tenant of its obligations to make repairs pursuant to Article 7.2
or its obligation to indemnify Landlord pursuant to Article 8.6. Tenant and
Landlord shall, upon obtaining the policies of insurance required hereunder,
give notice to the insurance carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.

      8.6 HOLD HARMLESS. Tenant shall indemnify, defend and hold Landlord
harmless from any and all claims arising from Tenant's use of the Premises or
from the conduct of its business or from any activity, work or things which may
be permitted or suffered by Tenant in or about the Premises and shall further
indemnify, defend and hold Landlord harmless from and against any and all claims
arising from any breach or default in the performance of

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any obligation on Tenant's part to be performed under the provisions of this
Lease or arising from any negligence of Tenant or any of its agents,
contractors, employees or invitees and from any and all costs, attorney's fees,
expenses and liabilities incurred in the defense of any such claim or action or
proceeding brought thereon. Tenant hereby assumes all risk of damage to property
or injury to persons in or about the Premises from any cause, and Tenant hereby
waives all claims in respect thereof against Landlord, excepting where said
damage arises out of negligence of Landlord.

      8.7 EXEMPTION OF LANDLORD FROM LIABILITY. Tenant hereby agrees that
Landlord shall not be liable for injury to Tenant's business or any loss of
income therefrom or from damage to the goods, wares, merchandise or other
property of Tenant, or about the Premises, nor, unless through its negligence,
shall Landlord be liable for injury to the person of Tenant, Tenant's employees,
agents, contractors and invitees, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water, or rain, or from the
breakage, leakage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether the said damage or injury results from conditions arising upon
the Premises or upon other portions of the building of which the Premises are a
part, or from other sources or places, and regardless of whether the cause of
such damage or injury or the means of repairing the same is inaccessible to
Landlord or Tenant. Landlord shall not be liable for any damages arising from
any act or neglect of any other tenant, if any, of the building in which the
Premises are located.

9. DAMAGE OR DESTRUCTION. Partial damage is defined as not greater than forty
percent (40%) of the total rentable square feet improved building area within
the Tenant space.

      9.1 PARTIAL DAMAGE - INSURED. Subject to the provisions of Article 7.1, if
the Premises are damaged and such damage was caused by a casualty covered under
an insurance policy required to be maintained pursuant to Article 8.3, Landlord
shall, at Landlord's expense, repair such damage as soon as reasonably possible,
and this Lease shall continue in full force and effect.

      9.2 DAMAGE - UNINSURED. In the event the Premises may be damaged or
destroyed by a casualty which is not covered by fire and extended coverage
insurance carried by Landlord, the Landlord shall restore same, provided that if
the damage or destruction is to an extent greater than ten percent (10%) of the
then replacement cost of improvements on the Premises (exclusive of Tenant's
trade fixtures and equipment and exclusive of foundations) then Landlord may
elect not to restore and to terminate this Lease. Landlord must give Tenant
written notice of its election not to restore within thirty (30) days from the
date Landlord received notice of such damage and, if not given, Landlord shall
be deemed to have elected to restore and in such event shall repair any damage
as soon as reasonably possible. In the event Landlord elects to give such notice
of Landlord's intention to cancel and terminate this Lease, Tenant shall have
the right within ten (10) days after receipt of such notice to give written
notice to Landlord of Tenant's intention to repair such damage at Tenant's
expense, without reimbursement from Landlord, in which event this Lease shall
continue in full force and effect and Tenant shall proceed to make such repairs
as soon as reasonably possible. If Tenant does not give such notice within such
ten (10) day period, this Lease shall be canceled and terminated as of the date
of the occurrence of such damage.

      9.3 TOTAL DESTRUCTION. If at any time during the term hereof the Premises
are totally destroyed to an extent greater than forty percent (40%) of rentable
square feet from any cause whether or not covered by the insurance required to
be maintained by the insuring party pursuant to Article 8.3 (including total
destruction required by any authorized public

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authority), this Lease shall automatically terminate as of the date of such
total destruction, unless Landlord elects to repair per Paragraph 9.1.

      9.4 DAMAGE NEAR END OF TERM. If the Premises are partially destroyed or
damaged during the last twelve (12) months of the term of this Lease, Landlord
may, at Landlord's option cancel and terminate this Lease as of the date of
occurrence of such damage by giving written notice to Tenant of Landlord's
election to do so within thirty (30) days after Landlord receives notice of
occurrence of such damage.

      9.5 ABATEMENT OF RENT.

            (a) If the Premises are partially destroyed or damaged and Landlord
or Tenant repairs or restores them pursuant to the provisions of this Article 9,
the rent payable hereunder for the period during which such damage, repair or
restoration continues shall be abated in proportion to the degree to which
Tenant's reasonable use of the Premises is substantially impaired. Except for
abatement of rent, if any, Tenant shall have no claim against Landlord for any
damage suffered by reason of any such damage, destruction, repair or
restoration.

            (b) If Landlord shall be obligated to repair or restore the Premises
under the provisions of this Article 9 and shall not commence such repair or
restoration within ninety (90) days after such obligations shall accrue, Tenant
may, at Tenant's option, cancel and terminate this Lease by giving Landlord
written notice of Tenant's election to do so at any time prior to the
commencement of such repair or restoration. In such event this Lease shall
terminate as of the date of such notice. Any abatement in rent shall be computed
as provided in Article 9.5(a).

10. REAL PROPERTY TAXES.

      10.1 PAYMENT OF TAXES. Tenant shall pay all real property taxes, as
additional rent, applicable to the Premises during the term of this Lease
including reasonable costs for attorneys or tax experts secured by Landlord in
seeking reduction of the taxes assessed on the Premises. All such payments shall
be made in accordance with Article 19. If any such taxes shall cover any period
of the time prior to or after expiration of the term hereof, Tenant's share of
such taxes shall be equitably prorated to cover only the period of time within
the tax fiscal year during which this Lease shall be in effect.

      10.2 DEFINITION OF "REAL PROPERTY TAXES". As used herein, the term "real
property tax" shall include any form of assessment, license fee, tax on rent,
levy, penalty, or tax (other than inheritance or estate taxes) imposed by any
authority having the direct or indirect power to tax, including city, county,
state or federal government, or any school, agricultural, lighting, drainage or
other improvement district thereof, as against any legal or equitable interest
of Landlord in the Premises or in the real property of which the Premises are a
part, as against Landlord's right to rent or other income therefrom, or as
against Landlord's business of leasing the Premises, and Tenant shall pay any
and all charges and fees which may be imposed by the EPA or other similar
governmental regulations or authorities.

      10.3 JOINT ASSESSMENT. If the Premises are not separately assessed,
Tenant's liability shall be an equitable proportion of the real property taxes
for all of the land and improvements included within the tax parcel assessed,
such proportions to be determined by Landlord from the respective valuations
assigned in the assessor's work sheets or such other information as may be
reasonably available. Landlord's reasonable determination thereof, in good
faith, shall be conclusive.

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      10.4 PERSONAL PROPERTY TAXES.

            (a) Tenant shall pay prior to delinquency all taxes assessed against
and levied upon leasehold improvements, fixtures, furnishings, equipment and all
other personal property of Tenant contained in the Premises or elsewhere. Tenant
shall cause said leasehold improvements, trade fixtures, furnishings, equipment
and all other personal property to be assessed and billed separately from the
real property of Landlord.

            (b) If any of Tenant's personal property shall be assessed with
Landlord's real property, Tenant shall pay Landlord the taxes attributable to
Tenant within ten (10) days after receipt of a written statement setting forth
the taxes applicable to Tenant's property.

11. COMMON AREAS.

      11.1 DEFINITIONS. The phrase "Common Areas" means all areas and facilities
outside the buildings, or portions thereof actually occupied by Tenant, that are
provided and designated for general use and convenience of Tenant and other
tenants and their respective officers, agents, and employees, customers and
invitees. Common Areas include (but are not limited to) pedestrian sidewalks,
landscaped areas, roadways, parking areas, trash, water, sewer, metro, roof
repairs and exterior painting per Article 7.2, and railroad tracks, if any.
Common Areas shall also include the unexposed electrical, plumbing and sewage
systems lying outside the Premises and window frames, gutters and downspouts on
the building or buildings of which the Premises are a part. Landlord reserves
the rights from time to time to make changes in the shape, size, location,
number and extent of the land and improvements constituting the Common Areas.
Landlord may designate from time to time additional parcels of land for use as
part thereof; and any additional land so designated by Landlord for such use
shall be included until Landlord revokes such designation.

      11.2 MAINTENANCE. During the term of this Lease, Landlord shall operate,
manage and maintain the Common Areas so that they are clean and free from
accumulation of debris, filth, rubbish and garbage. The manner in which such
Common Areas shall be so maintained, and the expenditures for such maintenance,
shall be at the sole direction of Landlord, and the use of the Common Areas
shall be subject to such reasonable regulations and changes therein as Landlord
shall make from time to time, including (but not by way of limitation) the right
to close from time to time, if necessary, all or any portion of the Common Areas
to such extent as may be legally sufficient, in the opinion of Landlord's
counsel, to prevent a dedication thereof or the accrual of rights of any person
or the public therein, or to close temporarily all or any portion of such Common
Areas for such purposes.

      11.3 TENANT'S RIGHTS AND OBLIGATIONS. Landlord hereby grants to Tenant,
during the term of this Lease, the license to use, for the benefit of Tenant and
its officers, agents, employees, customers, and invitees, in common with the
others entitled to such use, the Common Areas as they from time to time exist,
subject to the rights, powers, and privileges herein reserved to Landlord.
Storage, either permanent or temporary, of any materials, supplies or equipment
in the Common Areas is strictly prohibited. Should Tenant violate this provision
of the Lease, then in such event, Landlord may, at its option, either terminate
this Lease, or without notice to Tenant, remove said materials, supplies or
equipment from the Common Areas and place such items in storage, the cost
thereof to be reimbursed by Tenant within ten (10) days from receipt of a
statement submitted by Landlord. All subsequent costs in connection with the
storage of said items shall be paid to Landlord by Tenant as accrued. Failure of
Tenant to pay these charges within ten (10) days from receipt of statement shall
constitute a breach of this Lease. Tenant and its officers, agents, employees,
customers and invitees shall park their motor vehicles only in areas as
designated from time to time by Landlord for that purpose. Tenant shall not at
any time park or permit the parking of motor vehicles, belonging to it or to
others, so as to interfere with the pedestrian

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sidewalks, roadways, and loading areas, or in any portion of the parking areas
not designated by Landlord for such use by Tenant. Tenant agrees that receiving
and shipping goods and merchandise and all removal of refuse shall be made only
by way of the loading areas constituting part of the Premises. Tenant shall
repair, at its cost, all deterioration or damages to the Common Areas occasioned
by its lack of ordinary care.

      11.4 CONSTRUCTION. Landlord while engaged in constructing improvements or
making repairs or alterations in or about the Premises or in their vicinity
shall have the right to make reasonable use of the Common Areas.

12. UTILITIES. Tenant shall pay for all water, gas, heat, light, power,
telephone and other utilities and services supplied to the Premises, together
with any taxes thereon. If any such services are not separately metered to
Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord of
all charges jointly metered with other premises in accordance with Article 19.
If during the term of the Lease, Tenant's use creates above standard water,
sewer consumption, in Landlord's sole discretion, then Tenant shall, at Tenant's
expense, be required to install a separate water meter.

13. ASSIGNMENT AND SUBLETTING.

      13.1 LANDLORD'S CONSENT REQUIRED. Tenant shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet, or otherwise transfer or
encumber all or any part of Tenant's interest in this Lease or in the Premises
without Landlord's prior written consent, which Landlord shall not unreasonably
withhold. Any attempted assignment, transfer mortgage, encumbrance, or
subletting without consent shall be void and shall constitute a breach of this
Lease. Any transfer of Tenant's interest in this Lease or in the Premises from
Tenant by merger, consolidation, or liquidation, or by any subsequent change in
the ownership of thirty percent (30%) or more of the capital stock of Tenant or
thirty percent (30%) or more partnership interest of Tenant shall be deemed a
prohibited assignment within the meaning of this Article 13. No option to
extend, if any, may be assigned by Tenant and no subtenant shall have any right
to exercise any such option.

      13.2 NO RELEASE OF TENANT. Regardless of Landlord's consent, no subletting
or assignment shall release Tenant of Tenant's obligation to pay the rent and to
perform all other obligations to be performed by Tenant hereunder for the term
of this Lease. The acceptance of rent by Landlord from any other person shall
not be deemed to be a waiver by Landlord of any provision hereof. Consent to one
assignment or subletting, shall not be deemed consent to any subsequent
assignment or subletting.

      13.3 ASSIGNMENT FEE. In the event that Landlord shall consent to a
sublease or assignment under Article 13.1, Tenant shall pay to Landlord
reasonable fees not to exceed Five Hundred Dollars ($500) incurred in connection
with giving such consent.

            All rent received by Tenant from its subtenants in excess of the
rent payable by Tenant to Landlord under this Lease shall be paid to Landlord,
or any sums to be paid by an assignee to Tenant in consideration of the
assignment of this Lease shall be paid to Landlord.

      13.4 ASSIGNMENT BY LANDLORD. Landlord shall be permitted freely to assign
all of its rights and obligations hereunder, and upon such assignment of its
obligations, Landlord shall no longer be liable under this Lease. Tenant hereby
agrees to attorn to any assignee of Landlord's interest hereunder, whether such
assignment is voluntary or by operation of law.

                                       9
<PAGE>

      13.5 REASONABLE CONSENT. In aid to the Landlord's determination whether to
consent to any assignment, transfer or subletting but without limiting reasons
for which such consent may be withheld, Tenant, at Landlord's request, shall
submit in writing to Landlord: (1) the name and legal composition of the
proposed subtenant, assignee or transferees, and the nature of the transaction
contemplated and purposes of it; (2) the nature of the proposed subtenant's
business to be carried on in the Premises; (3) the terms and provisions of the
proposed sublease, assignment or transfer; and (4) current financial statements
of the subtenant or assignee and such other reasonable financial information as
Landlord may request concerning the proposed transaction and the proposed
subtenant, assignee or transferee without limiting the authority of the Landlord
to withhold reasonably its consent, Landlord may require any assignee or
subtenant to assume all of the obligations of the Tenant with respect to this
Lease, but such assumption shall not release the Tenant.

14. DEFAULTS; REMEDIES.

      14.1 DEFAULTS. The occurrence of any one or more of the following events
shall constitute a default and breach of this Lease by Tenant:

            (a) The vacation or abandonment of the Premises by Tenant for a
period of thirty (30) days or more.

            (b) The failure by Tenant to make any payment of rent or any other
payment required to be made by Tenant hereunder, as and when due where such
failure shall continue for a period of ten (10) days after written notice
thereof from Landlord to Tenant.

            (c) The failure by Tenant to observe or perform any of the
covenants, conditions, or provisions of this Lease to be observed or performed
by Tenant, other than described in Paragraph (b) above, where such failure shall
continue for a period of thirty (30) days after written notice thereof from
Landlord to Tenant provided, however, that if the nature of Tenant's default is
such that more than thirty (30) days are reasonably required for its cure, then
Tenant shall not be deemed to be in default if Tenant commenced such cure within
said thirty (30) day period and thereafter diligently prosecutes such cure to
completion.

            (d) (i) The making by Tenant of any general assignment, or general
assignment for the benefit of creditors; (ii) the filing by or against Tenant of
a petition to have Tenant adjudged a bankrupt or petition for reorganization or
arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty (60) days);
(iii) the appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where possession is not restored to Tenant within thirty
(30) days; or (iv) the attachment, execution or other judicial seizure of
substantially all of Tenant's assets located at the Premises of Tenant's
interest in this Lease, where such seizure is not discharged within thirty (30)
days.

      14.2 REMEDIES IN DEFAULT. In the event of any such default or breach by
Tenant, Landlord may at any time thereafter, with or without notice or demand
and without limiting Landlord in the exercise of any right or remedy which
Landlord may have by reason of such default or breach:

            (a) Terminate Tenant's right to possession of the Premises by any
lawful means, in which case this Lease shall terminate and Tenant shall
immediately surrender possession of the Premises to Landlord. In such event
Landlord shall be entitled to recover from tenant all damages incurred by
Landlord by reason of Tenant's default, including but not limited to: (i) the
cost of recovering possession of the Premises; and (ii) expenses of reletting,
including necessary renovation and alteration of the Premises; and (iii)
reasonable attorney's fees, and any real estate commission actually paid
applicable to the unexpired term of this Lease;

                                       10
<PAGE>

and (iv) the worth at the time of award determined by the court having
jurisdiction thereof, of the unpaid rent that had been earned at the time of
termination of this Lease; and (v) any other amount, and court costs necessary
to compensate Landlord for all detriment proximately caused by Tenant's default.
Unpaid installments of rent or other sums shall bear interest from the date due
at the rate of sixteen percent (16%) per annum. In the event Tenant shall have
abandoned the Premises, Landlord shall have the option of (1) retaking
possession of the Premises, taking possession of all personal property remaining
in the Premises and recovering from Tenant the amount specified in this Article
14.2(a), or (2) proceeding under Article 14.2(b). As used in this Paragraph, the
term "the worth at the time of award" is to be computed by discounting the total
rent payable by the amount of the discount rate of the Federal Reserve Bank of
San Francisco at the time of the award, plus one percent (1%).

            (b) Maintain Tenant's right to possession, in which case this Lease
shall continue in effect whether or not Tenant shall have abandoned the
Premises. In such event, Landlord shall be entitled to all of Landlord's rights
and remedies under this Lease including the right to recover the rent as it
becomes due hereunder.

            (c) Pursue any other remedy now or hereafter available to Landlord
under the laws or judicial decisions of the state in which the Premises are
located.

      14.3 DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord
fails to perform obligations required of Landlord within a reasonable time, but
in no event later than thirty (30) days after written notice by Tenant to
Landlord and to the holder of any first mortgage or deed of trust covering the
Premises, where name and address shall have theretofore been furnished to Tenant
in writing, specifying wherein Landlord has failed to perform such obligation;
provided, however, that the nature of the Landlord's obligation is such that
more than thirty (30) days are required for performance, then Landlord shall not
be in default if Landlord commences performances within such thirty (30) day
period and thereafter diligently prosecutes the same to completion.

      14.4 LATE CHARGES. Tenant hereby acknowledges that late payment by Tenant
to Landlord of rent and other sums due hereunder will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed on
Landlord by the term of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or any other sums due from Tenant shall
not be received by Landlord or Landlord's designee within ten (10) days after
said amount is due then Tenant shall pay to Landlord a late charge of ten
percent (10%) of such overdue amount, per each monthly period, but not any
interest thereon. In no event shall any late charge be required in violation of
any law.

            A Twenty-Five Dollar ($25) charge shall be paid Landlord for any
returned check.

            The parties hereby agree that such late charge represents a fair and
reasonable estimate of the cost Landlord will incur by reason of late payment by
Tenant. Acceptance of such late charge by Landlord shall in no event constitute
a waiver of Tenant's default with respect to such overdue amount, nor prevent
Landlord from exercising any of the other rights and remedies granted hereunder.

      14.5 CURE BY LANDLORD. Landlord, at any time after Tenant commits a
default, may cure the default at Tenant's cost. If Landlord at any time by
reason of Tenant's default, pays any sum or does any act that requires the
payment of any sum, the sum paid by Landlord at the time the sum is paid shall
be due from Tenant to Landlord, and if paid at a later date shall bear interest
at the rate of sixteen percent (16%) per annum from the date

                                       11
<PAGE>

the sum is paid by Landlord until Landlord is reimbursed by Tenant. The sum,
together with interest shall be deemed additional rent hereunder.

15. CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain, or sold by Landlord under the threat of the exercise of
said power (all of which is herein referred to as "condemnation"), this Lease
shall terminate as to the part so taken as of the date the condemning authority
takes title or possession; whichever occurs first. If more than twenty-five
percent (25%) of the floor area of any building on the Premises, or more than
twenty-five percent (25%) of the land area of the Premises not covered with
buildings, is taken by condemnation, either Landlord or Tenant may terminate
this Lease as of the date the condemning authority takes possession by notice in
writing of such election within twenty (20) days after Landlord shall have
notified Tenant of the taking, or, in the absence of such notice, then within
twenty (20) days after the condemning authority shall have taken possession.

      If this Lease is not terminated by either Landlord or Tenant, then it
shall remain in full force and effect as to the portion of the Premises
remaining, provided the rental shall be reduced in proportion to the floor area
of the buildings taken within the Premises as bears to the total floor area of
all buildings located on the Premises. In the event this Lease is not so
terminated, then Landlord agrees, at Landlord's sole costs, as soon as
reasonably possible, to restore the Premises to a complete unit of like quality
and character as existed prior to the condemnation. All awards for the taking of
any part of the Premises or any payment made under the threat of the exercise of
power of eminent domain shall be the property of Landlord, whether made as
compensation for diminution of value of the leasehold or for the taking of the
fees or as severance damages; provided, however, that tenant shall be entitled
to any award for loss of or damage to Tenant's trade fixtures and removable
personal property.

16. GENERAL PROVISIONS.

      16.1 ESTOPPEL CERTIFICATE.

            (a) Tenant shall, at any time, upon not less than ten (10) days
prior written notice from Landlord, execute, acknowledge and deliver to Landlord
a statement in writing (i) certifying that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modification and
certifying that this Lease, as so modified, is in full force and effect) and the
date to which the rent, security deposit, and other charges are paid in advance,
if any, and (ii) acknowledging that there are not, to Tenant's knowledge, any
uncured defaults on the part of Landlord hereunder, or specifying such defaults,
if any , which are claimed. Any such statement may be conclusively relied upon
by any prospective purchaser or encumbrancer of the Premises.

            (b) Tenant's failure to deliver such statement within such time
period shall be conclusive upon Tenant that (i) this Lease is in full force and
effect, without modification except as may be represented by Landlord, (ii)
there are not uncured defaults in Landlord's performance, and (iii) not more
than one (1) month's rent has been paid in advance.

            (c) If Landlord desires to finance or refinance the Premises, or any
part thereof, Tenant hereby agrees to deliver to any lender designated by
Landlord such financial statements of Tenant as may be reasonably required by
such lender. Such statements shall include the past three (3) years' financial
statements of Tenant. All such financial statements shall be received by
Landlord in confidence and shall be used only for the purposes herein set forth.
Tenant shall execute any estoppel certificate, subordination agreement, and/or
attornment agreement submitted to Tenant by Landlord for purposes of said
financing; provided however, that Tenant shall be allowed the quiet use and
enjoyment of the Premises as long as Tenant is not in default under the terms of
this Lease.

                                       12
<PAGE>

      16.2 LANDLORD'S INTEREST. The term "Landlord" as used herein shall mean
only the owner or owners at the time in question of the fee title, vendee's
interest under a real estate contract, or a tenant's interest in a ground lease
of the Premises. In the event of any transfer of such title or interest,
Landlord herein named (and in case of any subsequent transfers, the then
grantor) shall be relieved from and after the date of such transfer of all
liability as respects Landlord's obligations thereafter to be performed,
provided that any funds in the hands of Landlord or the then grantor at the time
of such transfer, in which Tenant has an interest, shall be delivered to the
grantee. The obligations contained in this Lease to be performed by Landlord
shall, subject to aforesaid, be binding upon Landlord's successors and assigns,
only during their respective periods of ownership.

      16.3 SEVERABILITY. The invalidity of any provision of this Lease, as
determined by a court of competent jurisdiction, shall in no way affect the
validity of any other provision hereof.

      16.4 INTEREST ON PAST DUE OBLIGATIONS. Except as expressly herein
provided, any amount due to Landlord not paid when due shall bear interest at
sixteen percent (16%) per annum from the due date. Payment of such interest
shall not excuse or cure any default by Tenant under this Lease.

      16.5 TIME OF ESSENCE. Time is of the essence.

      16.6 CAPTIONS. Article and Paragraph captions are not a part hereof.

      16.7 INCORPORATION OF PRIOR AGREEMENT; AMENDMENTS. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No prior
agreement or understanding pertaining to any such matter shall be effective.
This lease may be modified in writing only, signed by the parties in interest at
the time of modification.

      16.8 WAIVERS. No waiver by Landlord of any provision hereof shall be
deemed a waiver of any other provision hereof or of any subsequent breach by
Tenant of the same or any other provision. Landlord's consent to or approval of
any act shall not be deemed to render unnecessary the obtaining of Landlord's
consent to or approval of any subsequent act by Tenant. The acceptance of rent
hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of
any provision hereof, other than the failure of Tenant to pay the particular
rent so accepted regardless of Landlord's knowledge of such preceding breach at
the time of acceptance of such rent.

      16.9 RECORDING. Tenant shall not record this Lease without Landlord's
prior written consent, and such recordation shall, at the option of Landlord,
constitute a noncurable default of Tenant hereunder. Either party shall, upon
request of the other, execute, acknowledge and deliver to the other a "short
form" memorandum of this Lease for recording purposes.

      16.10 HOLDING OVER. If Tenant remains in possession of the Premises or any
part thereof after the expiration of the term hereof without the express written
consent of Landlord, such occupancy shall be a tenancy from month to month at a
rental in the amount of 150% of the last monthly rental plus all other charges
payable hereunder, and upon the terms hereof applicable to month to month
tenancy.

      16.11 CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive, but shall wherever possible, be cumulative with all other remedies at
law or in equity.

      16.12 COVENANTS AND CONDITIONS. Each provision of this Lease performable
by Tenant shall be deemed both a covenant and a condition.

                                       13
<PAGE>

      16.13 BINDING EFFECT; CHOICE OF LAW; PRORATION. Subject to any provisions
hereof restricting assignment or subletting by Tenant and subject to the
provision of Article 13.2, this Lease shall bind the parties, their
representatives, successors and assigns. This Lease shall be governed by the
laws of the state where the Premises are located. All prorations shall be on the
basis of a thirty (30) day month.

      16.14 SUBORDINATION.

            (a) This Lease, at Landlord's option, shall be subordinate to any
ground lease, mortgage, deed of trust, or any hypothecation for security now or
hereafter placed upon the real property of which the Premises are a part and to
any and all advances made on the security thereof and to all renewals,
modifications, consolidations, replacements and extensions thereof.
Notwithstanding such subordination, Tenant's right to quiet possession of the
Premises shall not be disturbed if Tenant is not in default and so long as
Tenant shall pay the rent and observe and perform all of the provisions of this
Lease, unless this Lease is otherwise terminated pursuant to its terms. If any
mortgagee, trustee or ground lessor shall elect to have this Lease prior to the
lien of its mortgage, deed of trust or ground lease, and shall give written
notice thereof to Tenant, this Lease shall be deemed prior to such mortgage,
deed of trust, or ground lease, whether this Lease is dated prior or subsequent
to the date of said mortgage, deed of trust or ground lease, or the date of
recording thereof.

            (b) Tenant agrees to execute and deliver any documents required to
effectuate such subordination or to make this Lease prior to the lien of any
mortgage, deed of trust or ground lease, as the case may be, and failing to do
so within ten (10) days after written demand, does hereby make, constitute and
irrevocably appoint Landlord as Tenant's attorney-in-fact and in Tenant's name,
place and stead, to do so.

      16.15 ATTORNEYS' FEES. If either party named herein brings an action to
enforce the terms hereof or declare rights hereunder the prevailing party in any
such action, on trial or appeal, shall be entitled to his reasonable attorney's
fees to be paid by the losing party as fixed by the court.

      16.16 LANDLORD'S ACCESS. Landlord and Landlord's agents shall have the
right to enter the Premises at reasonable times for the purpose of inspecting
the same, showing the same to prospective tenants, purchasers or lenders, and
making such alterations, repairs, improvements or additions to the Premises or
to the building of which they are a part as Landlord may deem necessary or
desirable. Landlord may at any time place on or about the Premises any ordinary
"For Sale" or "For Lease" signs, and Landlord may at any time during the last
one hundred twenty (120) days of the term hereof place on or about the Premises
any ordinary signs all without rebate or rent or liability to Tenant.

      16.17 SIGNS. Tenant shall not place any sign upon the Premises without
Landlord's prior written consent. All signs installed by Tenant shall be removed
upon termination of this Lease with the sign location restored to its former
state.

      16.18 MERGER. The voluntary or other surrender of this Lease by Tenant, or
a mutual cancellation thereof, shall not work a merger, and shall, at the option
of Landlord, terminate all or any existing subtenancies, or may, at the option
of Landlord, operate as an assignment to Landlord of any or all of such
subtenancies.

      16.19 CORPORATE AUTHORITY. If Tenant is a corporation, each individual
executing this Lease on behalf of said corporation represents and warrants that
he is duly authorized to execute and deliver this Lease on behalf of said
corporation in accordance with a duly adopted resolution

                                       14
<PAGE>

of the Board of Directors of said corporation or in accordance with the bylaws
of said corporation, and that this Lease is binding upon said corporation in
accordance with its terms.

      16.20 LANDLORD'S LIABILITY. If Landlord is a joint venture or limited
partnership, the liability of the partners of Landlord pursuant to this Lease
shall be limited to assets of the partnership, and Tenant, its successors and
assigns, hereby waive all rights to proceed against any of the partners, or the
officers, shareholders, or directors of any corporate partner of Landlord,
except to the extent of their interest in the partnership. As used in this
Article, the term "Landlord" shall mean only the owner or owners at the time in
question of the fee title, vendee's interest under a real estate contract, or
its interest in a ground lease of the Premises, and in the event of any transfer
of such title or interest, Landlord herein named (and in case of any subsequent
transfers the then grantor) shall be relieved from and after the date of such
transfer, and any funds in the hands of Landlord or the obligations thereafter
to be performed; provided that nay funds in the hands of Landlord or the then
grantor at the time of such transfer, in which Tenant has an interest, shall be
delivered to the grantee. The obligations contained in this Lease to be
performed by Landlord shall, subject as aforesaid, be binding on Landlord's
successors and assigns only during the respective period of ownership.

      16.21 FINANCING. Tenant shall not execute any document purporting to
affect the Premises or any other property of which the Premises are a part,
including, without limitation; any financing statement, without prior written
consent of Landlord, which may be withheld or conditioned in Landlord's sole
discretion.

      16.22 INABILITY TO PERFORM. This Lease and the obligations of the Tenant
hereunder shall not be effected or impaired because the Landlord is unable to
fulfill any of its obligations hereunder or is delayed in doing so, if such
inability or delay is caused by reason of strike, labor troubles, force majeure,
weather and acts of God, or any other cause beyond the reasonable control of the
Landlord, and Landlord shall not be liable for any such delay.

17. COMPLETION BOND. At any time, Tenant either desires to or is required to
make any repairs, alterations, additions, improvements or utility installations
thereon, pursuant to Articles 7.5 or 9.2 herein or otherwise, Landlord may at
its sole option, require Tenant, at Tenant's sole cost and expense, to obtain
and provide to Landlord a lien and completion bond in an amount equal to one and
one-half (1-1/2) times the estimated cost of such improvements, to insure
Landlord against any liability for mechanic's and materialmen's liens and to
insure completion of the work.

18. NOTICES. Wherever under this Lease provision is made for any demand, notice
or declaration of any kind, or where it is deemed desirable or necessary by
either party to give or serve any such notice, demand or declaration to the
other party, it shall be in writing and served either personally or sent by
United States mail, postage prepaid, addressed to the address set forth herein
below:

              To Landlord:                      QUEEN INVESTMENT COMPANY, c/o
                                           GVA Kidder Mathews
                                           12886 Interurban Avenue South
                                           Seattle, WA  98168

              To Tenant:                        CELEBRATE EXPRESS, INC.
                                           11220 120th Ave. NE; #101
                                           Kirkland, WA 98033

                                       15
<PAGE>

19. PAYMENT OF COMMON AREA UTILITIES AND EXPENSES, INSURANCE AND REAL PROPERTY
TAXES. In conjunction with monthly rent payments, Tenant shall each month pay as
additional rent, a sum representing Tenant's pro rata share of common area
utilities and expenses, insurance, real property taxes, a reasonable management
fee and any other nonsegregated expense obligation of Tenant. Such amount shall
be estimated annually by Landlord in good faith to reflect actual or anticipated
costs. Yearly and upon termination of this Lease, Landlord shall compute its
actual costs for such expenses during such period. Any overpayment by Tenant
shall be refunded or credited to subsequent charges and Tenant shall pay any
deficiency within fifteen (15) days after receipt of Landlord's statement.
Tenant's pro rata share shall be computed by multiplying the aforementioned
charges times a percentage obtained by dividing the total square footage of the
Premises by the total building square footage of the whole of Landlord's land
and improvements.

20. HAZARDOUS AND TOXIC WASTE MATERIALS. Tenant shall be responsible for all
expenses, damages, liabilities, including reasonable attorneys' fees, occurring
as a result of Tenant's use or release of any hazardous and toxic waste
materials as they may affect the leased premises. "Release" means any spill,
visible leak, pumping, pouring, explosion, emission, discharge, injection,
escape, dumping, disposing or other entering into the environment of any
substance, chemical, material, pollutant or contaminant at, in, by, from or
related to the leased premises. Tenant's obligations in this regard shall
survive and extend beyond the termination date of this lease. Whereby the
statute of limitation for any indemnification action shall not begin to run
until Landlord has sustained damage. Landlord is entitled to indemnity under the
terms of this Agreement.

21. SPECIAL ARTICLES. The following numbered articles are made a part hereof,
22, 23 and appear below or are shown on Exhibit(s) A, B and C, attached hereto.

22. REPAYMENT OF FREE RENT. If this Lease provides for a postponement of any
monthly rental payments, a period of "free" rent or other rent concession, such
postponed rent or "free" rent is called the "Abated Rent." Tenant shall be
credited with having paid all of the Abated Rent on the expiration of the Lease
Term only if Tenant has fully, faithfully, and punctually performed all of
Tenant's obligations hereunder, including the payment of all rent (other than
the Abated Rent) and all other monetary obligations and the surrender of the
Property in the physical condition required by this Lease. Tenant acknowledges
that its right to receive credit for the Abated Rent is absolutely conditioned
upon Tenant's full, faithful and punctual performance of its obligations under
this Lease. If Tenant defaults and does not cure within any applicable grace
period, the Abated Rent shall immediately become due and payable in full and
this Lease shall be enforced as if there were no such rent abatement or other
rent concession.

23. AGENCY DISCLOSURE. At the signing of this Agreement, Agent Kelly Carlson of
GVA Kidder Mathews represented Landlord. It is agreed between the parties that
no other brokers are recognized in this transaction other than Kelly Carlson.

                         (SIGNATURES ON FOLLOWING PAGE)

                                       16
<PAGE>

      The parties hereto have executed this Lease at the place and on the dates
specified immediately adjacent to their respective signatures.

Dated this 6th day of June, 2006, at Seattle, WA.

              "Landlord":                  QUEEN INVESTMENT COMPANY, LLC

                                    By:    /s/ Richard Lea, III
                                           ------------------------------------
                                           Richard Lea, III

                                    Title: Richard Lea III President
                                           ------------------------------------
                                           President

Dated this 1st day of June, 2006, at Kirkland, WA.

              "Tenant":                    CELEBRATE EXPRESS, INC.

                                    By:    /s/ Darin White
                                           ------------------------------------
                                    Title: Vice President, Finance

This Lease has been prepared for submission to you and your attorney. GVA Kidder
Mathews is not authorized to give legal or tax advice. Neither Landlord nor GVA
Kidder Mathews makes any representations or recommendations as to the legal
sufficiency, legal effect or tax consequences of this document or any
transaction relating thereto. These are questions for your attorney with whom
you should consult before signing the document or determine whether your legal
rights are adequately protected.

                                       17
<PAGE>

                                    EXHIBIT B
                                  RENT SCHEDULE

            Base rent shall be according to the following schedule:

<TABLE>
<S>                                                                   <C>
December 1, 2006 - November 30, 2007                                  $ 1,500.00
December 1, 2007 - November 30, 2008                                  $ 1,545.00
December 1, 2008 - November 30, 2009                                  $ 1,591.35
December 1, 2009 - November 30, 2010                                  $ 1,639.09
December 1, 2010 - November 30, 2011                                  $ 1,688.26
</TABLE>

                                       18
<PAGE>

                                    EXHIBIT C
                               RULES & REGULATIONS

1.    Any directory provided by Landlord for the building will be for the
      display of the name and location of Tenants, and Landlord reserves the
      right to exclude any other names.

2.    Tenant shall not place any new or additional locks on any doors of the
      Premises or rekey any existing locks without the consent of Landlord.

3.    Landlord reserves the right to exclude or expel from the common areas any
      person who, in the judgment of Landlord, is intoxicated, under the
      influence of drugs or who shall in any manner violate any of the rules and
      regulations.

4.    Tenant shall not do or permit to be done within the Premises anything that
      would unreasonably annoy or interfere with the rights of other tenants of
      the building.

5.    Tenant shall not permit its employees or invitees to loiter in or about
      the common areas, or to obstruct any of the parking, truck maneuvering or
      other common areas, or to place, empty or throw any rubbish, litter, trash
      or material of any nature upon any common area.

6.    No storage of materials, equipment or property of any kind is permitted
      outside the Premises and Landlord may remove any such property at Tenant's
      risk and expense.

7.    Tenant shall not make or permit any use of the Premises which may be
      dangerous to life, limb or property or any noise, odor or vibrations to
      emit from the Premises which are objectionable to Landlord or other
      occupants of the Building; or to create, maintain or permit a nuisance or
      any violation of any regulation of any governmental agency thereon.

8.    Tenant shall not commit or permit to be committed any waste, damage or
      injury to the Premises, the building or parking, loading and other common
      areas adjoining and shall promptly repair the same at its expense.

9.    Tenant understands that any equipment required for maintenance of the
      Premises is Tenant's responsibility and that Landlord has no equipment
      available for Tenant's use therefore, e.g., ladders or lifts for
      relamping, etc.

10.   Tenant shall use the Premises and shall operating its equipment on the
      Premises in a safe and prudent manner, and any damage or cracks occurring
      in the floor of the Premises shall be promptly repaired by Tenant at its
      expense.

11.   Tenant shall not at any time display a "For Rent" sign upon the Premises.

12.   Tenant shall be responsible for keeping a copy of the Lease and Landlord's
      current rules and regulations upon the Premises.

13.   Tenant agrees to cause its employees to park only in such areas as may be
      designated by Landlord from time to time for employee parking.

14.   Tenant shall not waste electricity or water and agrees to cooperate fully
      with Landlord to assure the most effective and economical use of utilities
      service as may be provided to the building by Landlord.

15.   Tenant shall keep Landlord advised of the current telephone numbers of
      Tenant's employees who may be contacted in an emergency, i.e., fire,
      break-in, vandalism, etc. If Landlord shall deem it necessary to

                                       19
<PAGE>

respond to such emergency in Tenant's behalf, Tenant shall pay all costs
incurred for services ordered by Landlord to secure or otherwise protect the
Premises and the contents thereof, including a premium charge for any time spent
by Landlord's employees in responding to such emergency.

                                       20<PAGE>
                                                                   EXHIBIT 10.14

May 10, 2006

Kevin A. Green                                                  (SENT VIA EMAIL)
[Address]

Dear Kevin:

Celebrate Express, Inc. (the "Company") is pleased to offer you employment as
President and Chief Executive Officer ("CEO") of the Company on the following
terms:

      1. POSITION; EFFECTIVE DATE. As President and CEO, you will report to the
Company's Board of Directors (the "Board"), and will perform the duties
customarily associated with this position and such other duties assigned by the
Board. Your first date of full time employment with the Company (the "Start
Date") will be no later than May 15, 2006. You will also be elected to the Board
of Directors of the Company at its first regularly-scheduled meeting following
the Start Date. Except as provided in Section 3.1 herein, you will devote your
full time and attention to the business affairs of the Company, except for
vacations as provided in Section 2.4 hereof and periods of illness or
incapacity. This agreement is being entered into with the approval of the
Compensation Committee of the Board (the "Compensation Committee") and will be
effective upon the date of the parties' execution.

      2. COMPENSATION AND EMPLOYEE BENEFITS.

            2.1 BASE SALARY. Your annual base salary will be $350,000, less
payroll deductions and required withholdings, paid according to the Company's
regular payroll schedule and procedures. At no time during your employment with
the Company will such annual base salary be reduced below $350,000 unless such
reduction is made in connection with and in an amount commensurate with an
across-the-board reduction of the salaries of senior executive employees of the
Company.

            2.2 PERFORMANCE BONUS. Beginning with the fiscal year beginning June
1, 2006, you will be eligible to earn an annual performance bonus with a target
of one hundred percent (100%) of your annual base salary based on the Company's
performance and your achievement of individual performance goals and objectives
agreed upon by you and the Compensation Committee for a given fiscal year, as
determined in good faith by the Compensation Committee in its sole discretion.
You will be eligible for any such bonus if you are employed at the end of the
fiscal year and any bonus payment will be subject to payroll deductions and
required withholdings.

            2.3 SIGNING BONUS. You will receive a $75,000 signing bonus that
will be paid on your first regularly scheduled pay date after your Start Date,
according to the Company's regular payroll schedule and procedures.

<PAGE>

            2.4 EMPLOYEE BENEFITS. You will be entitled to all benefits,
including vacation, health and disability benefits, for which you are eligible
under the terms and conditions of the standard Company benefit plans, which may
be in effect from time to time and provided by the Company to its senior
executive level employees generally. You will earn four (4) weeks of paid
vacation per year.

            2.5 STOCK OPTIONS.

                  (a) You will be awarded a nonqualified stock option to
purchase three hundred thousand (300,000) shares of the Company's Common Stock
by the Compensation Committee at its next meeting following the Start Date. The
per share exercise price of such stock option will be equal to the closing price
of the Company Common Stock on Nasdaq on the date of grant. The term of such
stock option is ten (10) years, subject to earlier expiration in the event of
the termination of your continuous service with the Company. The shares subject
to the grant will vest as follows: 1/4 of the total number of option shares will
vest on the one-year anniversary of the grant date and 1/16 of the total number
of option shares will vest on each quarterly anniversary thereafter such that
all option shares will be vested on the four-year anniversary of the grant date.
Notwithstanding the foregoing, a portion of the shares subject to your
outstanding stock options may vest on an accelerated basis pursuant to Section 6
below. Except as provided herein, such stock options will be subject to the
provisions of the equity incentive plan of the Company under which the options
are granted and the applicable form of stock option agreement thereunder.

                  (b) Incrementally, you will be eligible to participate in the
Company's equity incentive plans in the same manner as the Company's other
senior executive level employees generally.

            2.6 EXPENSES. The Company will reimburse you an aggregate amount not
to exceed $100,000 for expenses related to (i) the packing, transportation, and
unpacking of your household goods, (ii) a temporary residence and/or hotel
accommodations in the Greater Seattle area, (iii) relocation related travel and
lodging, (iv) the sale of your existing home and the purchase of a new primary
residence in the Greater Seattle area and (v) your attorney in connection with
negotiations of this Agreement. You agree to provide documentation to support
any such expenses in accordance with the Company's generally applicable
policies.

      3. OTHER ACTIVITIES DURING EMPLOYMENT.

            3.1 ACTIVITIES. Except with the prior written consent of the Board,
you will not during your employment undertake or engage in any other employment,
occupation or business enterprise. You may engage in civic and not-for-profit
activities, so long as such activities do not interfere with the performance of
your job duties.

            3.2 INVESTMENT AND INTERESTS. Except as permitted by Section 3.3
below, during your employment you agree not to acquire, assume or participate
in, directly or indirectly, any position, investment or interest known by you to
be adverse or antagonistic to the Company, or its business or prospects,
financial or otherwise.

                                      -2-
<PAGE>

            3.3 NONCOMPETITION.

                  (a) During the term of your employment by the Company, except
on behalf of the Company, you will not, without the prior written consent of the
Board, directly or indirectly, whether as an officer, director, shareholder,
partner, proprietor, associate, representative, consultant, or in any capacity
whatsoever engage in, become financially interested in, be employed by or have
any business connection with any other person, corporation, firm, partnership or
other entity whatsoever that competes with the products or services being
developed or exploited by the Company during your employment; provided, however,
that anything above to the contrary notwithstanding, you may own, as a passive
investor, securities of any entity, so long as your direct holdings in any one
such corporation do not in the aggregate constitute more than one percent (1%)
of the voting stock of such corporation.

                  (b) If your employment with the Company is terminated by you
for any reason, for one year following the termination of your employment you
will not, without the prior written consent of the Board, directly or
indirectly, whether as an officer, director, shareholder, partner, proprietor,
associate, representative, consultant, or in any capacity whatsoever engage in,
become financially interested in, be employed by or have any business connection
with any other person, corporation, firm, partnership or other entity whatsoever
that competes with the Business of the Company; provided, however, that anything
above to the contrary notwithstanding, (i) you may own, as a passive investor,
securities of any entity, so long as your direct holdings in any one such
corporation do not in the aggregate constitute more than one percent (1%) of the
voting stock of such corporation, (ii) you may work for a division, entity or
subgroup of any of such companies that engage in the Business so long as such
particular division, entity or subgroup does not engage in the Business, or
(iii) you may work for a company that engages in the Business if the Company (or
its subsidiaries) ceases to engage in the Business. For purposes of this Section
3.3(b), "Business" means the designing, manufacturing or selling of party
products, costumes or any other product category (or business line) representing
greater than ten percent (10%) of the Company's revenues.

            3.4 SOLICITATION OF EMPLOYEES, CONSULTANTS AND OTHER PARTIES. During
the term of your employment with the Company, and for a period of one year
following the termination of your employment with the Company for any reason,
you agree that you will not directly or indirectly hire or solicit, induce,
recruit or encourage any of the Company's employees or consultants to terminate
their relationship with the Company to work for yourself or any other person or
entity with which you are affiliated. For a period of one year following
termination of your relationship with the Company for any reason, you agree that
you will not solicit any licensor to or customer of the Company or third-party
provider of the Company's products or services, with respect to any business,
products or services that are competitive to the products or services offered by
the Company or under development as of the date of termination of your
relationship with the Company.

      4. PROPRIETARY INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT;
INDEMNIFICATION AGREEMENT; COMPANY POLICIES. You agree to execute a Proprietary
Information and Inventions Assignment Agreement, a copy of which is attached
hereto as Exhibit A. The parties agree to execute the Indemnification Agreement
attached hereto as Exhibit B providing certain indemnification rights to you.
You further agree to abide by the Company's rules, policies and procedures.

                                      -3-
<PAGE>

      5. TERMINATION OF EMPLOYMENT.

            5.1 AT-WILL EMPLOYMENT RELATIONSHIP. Your employment with the
Company will be at-will. The Company may terminate the employment relationship
at any time, with or without Cause (as defined below) upon thirty (30) days
advance notice (or the Company may pay your salary for such thirty (30) days in
lieu of notice). You may terminate the employment relationship at any time, with
or without Cause and upon thirty (30) days advance notice to the Company, or
such shorter period as the Company may deem acceptable.

            5.2 VOLUNTARY TERMINATION.

                  (a) If you terminate your employment at any time, without Good
Reason (as defined below), you will not be entitled to severance pay, pay in
lieu of notice or any other such compensation other than payment of accrued
salary and vacation and such other benefits as expressly required in such event
by applicable law or the terms of applicable benefit plans. The continued
vesting of any stock options held by you will cease on the termination date, and
your right to exercise vested option shares will be governed by the terms of the
Company's applicable equity incentive plans and the corresponding stock option
agreements. If you terminate your employment without Good Reason less than
twelve (12) months after your Start Date, then the amounts paid to you pursuant
to Sections 2.3 and 2.6 will become due and payable by you to the Company within
sixty (60) days of the termination date.

            5.3 TERMINATION FOR CAUSE, DEATH OR DISABILITY.

                  (a) If the Company terminates your employment at any time for
Cause (as defined below) or if your employment is terminated by reason of your
death or disability (defined as the inability, in the opinion of a qualified
physician acceptable to the Company, because of illness or physical or mental
incapacity or disability to perform the essential functions of your position,
whether with or without reasonable accommodations, for a continuous period of
more than 90 days) your salary will cease on the date of termination and you
will not be entitled to severance pay, pay in lieu of notice or any other such
compensation other than payment of accrued salary and vacation and such other
benefits as expressly required in such event by applicable law or the terms of
applicable benefit plans. The continued vesting of any stock options held by you
will cease on the termination date, and your right to exercise vested option
shares will be governed by the terms of the Company's equity incentive plan and
the corresponding stock option agreements. If the Company terminates your
employment for Cause within twelve (12) months of the Start Date, but not in the
event of the termination of your employment by reason of death or disability,
then amounts paid to you pursuant to Sections 2.3 and 2.6 will become due and
payable by you to the Company within sixty (60) days of the termination date.

                  (b) DEFINITION OF CAUSE. For purposes of this agreement,
"Cause" means the occurrence of any one or more of the following: (i) your
conviction of, or plea of no contest with respect to, any felony; (ii) your
participation in a fraud or act of dishonesty that results, or is likely to
result, in material harm to the Company; (iii) your violation of a fiduciary
duty owed to the Company; (iv) your material violation of any contract or
agreement between you and the Company, including but not limited to this
agreement or your Proprietary Information and Inventions Agreement; or (v) your
willful and deliberate non-performance of your job duties (other than by reason
of your physical or mental illness, incapacity or disability) or failure to
comply with the direct instructions of the Board (unless such instructions are
illegal), or your commission of an act involving willful misconduct or gross
negligence that results, or is reasonably likely to result, in

                                      -4-
<PAGE>

material harm to the Company, or any action taken by you without adequate
authority from the Board; provided that, with respect to Section 5.3(b)(iv) or
(v), the Board has given you written notice specifying the nature of the
violation, failure or action and a reasonable opportunity of not less than
fifteen (15) days to cure the condition giving rise to the alleged violation,
failure or action.

            5.4 SEVERANCE BENEFITS FOR TERMINATION WITHOUT CAUSE OR RESIGNATION
FOR GOOD REASON.

                  (a) If the Company terminates your employment without Cause or
you resign your employment for Good Reason (defined below), you will receive
your regular salary, benefits and other compensation through the termination
date, including any bonus earned for the prior calendar year that is unpaid as
of the termination date. In addition, you will receive an additional twelve (12)
months of your base salary in effect as of such termination date and any
performance bonus (or portion thereof) payable to you for the current calendar
year for objectives or business results actually achieved as of the termination
date, if any, as determined by the Compensation Committee. This base salary will
be paid according to the Company's payroll procedures during the twelve (12)
month period following the termination date. Your receipt of any severance
benefits under this Section 5.4 is contingent upon your signing and not revoking
the Release Agreement (attached as Exhibit C) and your signing and not revoking
a "Separation Agreement" in a form reasonably acceptable to you and the Company.
The Separation Agreement will include (i) a mutual obligation to maintain the
Separation Agreement in confidence, subject to disclosure by the Company as
reasonably necessary to implement the terms of the Separation Agreement,
disclosure by you to your spouse, legal counsel and accountant; and disclosure
by either party in response to a subpoena, order or as otherwise required by
law; (ii) a mutual obligation for non-disparagement; (iii) an obligation for
your future cooperation with Company in response to investigations,
administrative claims, or judicial proceedings (provided that the Company will
pay your reasonable expenses and will pay you a reasonable hourly rate for your
time after the time period encompassed by your salary continuation (maximum of
two years and minimum of one year) has expired); (iv) an obligation to promptly
notify the Company in the event you are requested and/or subpoenaed to testify
in any administrative and/or judicial proceeding concerning the Company and/or
your employment with the Company; (v) an obligation to reasonably cooperate with
the Company and its legal counsel with respect to testimony in civil matters,
and testimony in administrative and/or criminal matters in which your penal
interests are not potentially affected; (vi) an obligation not to solicit or
encourage any current and/or former employee of the Company to become adverse to
and/or commence legal proceedings against the Company; and (vii) such other
matters as the Company's counsel and your counsel reasonably agree are
reasonable to be incorporated into an employee separation agreement with
executive employees.

                  (b) DEFINITION OF GOOD REASON. For purposes of this Agreement,
"Good Reason" will mean any one of the following events that occurs without your
consent: (i) the material reduction in your responsibilities, authorities or
functions as an employee of the Company; (ii) a reduction in your level of
compensation (including base salary, fringe benefits and target bonuses under
any corporate-performance based bonus or incentive programs, other than in
connection with a commensurate across-the-board reduction); (iii) a relocation
of your place of employment resulting in an increase of your commute to work by
more than fifty (50) miles; (iv) the Company files any petition or action for
relief under any bankruptcy, reorganization, insolvency or moratorium law or any
other law for the relief of, or relating to, debtors, now or hereafter in
effect, or makes any assignment for the benefit of creditors or takes any
corporate action in

                                      -5-
<PAGE>

furtherance of any of the foregoing; or (v) the Company's material breach of
this Agreement. Notwithstanding the foregoing, you must provide the Company with
thirty (30) days' advance written notice of Company's conduct giving rise to
Good Reason (the "Cure Period") and during the Cure Period, the Company may
attempt to rescind or correct the matter giving rise to Good Reason. If the
Company does not rescind or correct the conduct giving rise to Good Reason to
your reasonable satisfaction by the expiration of the Cure Period, your
employment will then terminate with Good Reason.

      6. CHANGE IN CONTROL.

            6.1 DEFINITION. "Change in Control" will mean (a) any consolidation
or merger of the Company with or into any other corporation or other entity or
person, or any corporate reorganization in which the shareholders of the Company
immediately prior to such consolidation, merger or reorganization, own less than
fifty percent (50%) of the voting power of the surviving entity immediately
after such consolidation, merger or reorganization, (b) any transaction or
series of related transactions to which the Company is a party in which in
excess of fifty percent (50%) of the Company's voting power is transferred,
excluding (i) any consolidation or merger effected exclusively to change the
domicile of the Company or (ii) any transaction or series of transactions
principally for bona fide equity financing purposes, or (c) a sale of all or
substantially all of the assets of the Company.

            6.2 STOCK OPTIONS.

                  (a) In the event that within twelve (12) months following a
Change in Control, the Company terminates your employment without Cause or you
resign for Good Reason (a "Change in Control Termination"), any remaining
unvested portion of all stock options held by you will have the vesting
accelerated such that all options are fully vested and exercisable as of the
date of the Change in Control Termination (the "Acceleration").

                  (b) Notwithstanding Section 6.2(a), if your employment is
terminated by the Company without Cause prior to a Change in Control and the
Board determines that such termination (i) was at the request of a third party
who has indicated an intention or taken steps reasonably calculated to effect a
Change in Control and who subsequently effectuates a Change in Control or (ii)
otherwise occurred in connection with, or in anticipation of, a Change in
Control which actually occurs, then, your termination of employment will be
deemed a Change in Control Termination and you will receive the Acceleration.
Your receipt of the Acceleration is contingent upon your signing and making
effective the Release Agreement.

      7. GENERAL PROVISIONS.

            7.1 SEVERABILITY. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but such invalid, illegal or
unenforceable provision will be reformed, construed and enforced in such
jurisdiction so as to render it valid, legal, and enforceable consistent with
the intent of the parties insofar as possible.

                                      -6-
<PAGE>

            7.2 ENTIRE AGREEMENT. This Agreement, together with its exhibits,
constitutes the entire and exclusive agreement between you and the Company, and
it supersedes any prior agreement, promise, representation, or statement,
written or otherwise, between you and the Company with regard to this subject
matter, including that certain offer letter dated April 6, 2006. It is entered
into without reliance on any promise, representation, statement or agreement
other than those expressly contained or incorporated herein, and it cannot be
modified or amended except in a writing signed by you and a duly authorized
officer of the Company.

            7.3 SUCCESSORS AND ASSIGNS. This Agreement is intended to bind and
inure to the benefit of and be enforceable by you, the Company and your and its
respective successors, assigns, heirs, executors and administrators, except that
you may not assign any of your duties hereunder and you may not assign any of
your rights hereunder without the written consent of the Company, which will not
be withheld unreasonably.

            7.4 GOVERNING LAW. All questions concerning the construction,
validity and interpretation of this Agreement will be governed by the law of the
State of Washington as applied to contracts made and to be performed entirely
within Washington.

            7.5 ARBITRATION. Any and all controversies, claims or disputes
between you and the Company (including any employee, officer, director,
shareholder or benefit plan of the Company in their capacity as such or
otherwise) arising out of, relating to, or resulting from your employment with
Company or the termination of your employment with Company will be submitted to
and settled by binding arbitration in King County in the State of Washington in
accordance with the Employment Dispute Resolution Rules then in effect of the
American Arbitration Association (the "AAA Rules"). Arbitration will be
conducted by one arbitrator, mutually selected by you and the Company. The final
decision of the arbitrator(s) will be furnished to you and the Company in
writing and will constitute a conclusive determination of the issue(s) in
question, binding upon you and the Company and will not be contested by either
you or the Company. You acknowledge and agree that you are agreeing to arbitrate
disputes voluntarily and without any duress or undue influence by the Company or
anyone else. You further acknowledge and agree that you have carefully read
these terms and that you have asked any questions needed for you to understand
the terms, consequences and binding effect of this agreement and fully
understand it, including that you are waiving your right to a jury trial.
Finally, you agree that you have been provided an opportunity to seek the advice
of an attorney of your choice before signing up to these terms.

                     [THIS SPACE INTENTIONALLY LEFT BLANK]

                                      -7-
<PAGE>

      To indicate your acceptance of the Company's offer of employment, please
sign and date this Agreement in the space provided below and return it to me.

Sincerely,

CELEBRATE EXPRESS, INC.

BY: /s/ JEAN REYNOLDS
    -------------------------------
    Jean Reynolds
    Lead Independent Director and
      Chair of the Compensation Committee
      of the Board of Directors

ACCEPTED AND AGREED:

/s/ Kevin A. Green                         5/10/06
------------------------           ------------------------
    Kevin A. Green                           Date

EXHIBIT A - Proprietary Information and Inventions Assignment Agreement

EXHIBIT B - Indemnification Agreement

EXHIBIT C - Release Agreement

                                      -8-
<PAGE>

                                    EXHIBIT A

                PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

      In exchange for my becoming employed by Celebrate Express, Inc. or any of
its current or future subsidiaries, affiliates, successors or assigns
(collectively, the "Company"), and for any cash and equity compensation for my
services, I hereby agree as follows:

      1. CONFIDENTIALITY OBLIGATION. I understand and agree that all Proprietary
Information (as defined below) shall be the sole property of the Company and its
assigns, including all trade secrets, patents, copyrights and other rights in
connection therewith. I hereby assign to the Company any rights I may acquire in
such Proprietary Information. I will hold in confidence and not directly or
indirectly to use or disclose, both during my employment by or consulting
relationship with the Company and for a period of three years after its
termination (irrespective of the reason for such termination), any Proprietary
Information, whether or not during working hours, except to the extent
authorized by the Company, until such Proprietary Information becomes generally
known. I agree not to make copies of such Proprietary Information except as
authorized by the Company. Upon termination of my employment or consulting
relationship or upon an earlier request of the Company, I will return or deliver
to the Company all tangible forms of such Proprietary Information in my
possession or control, including but not limited to drawings, specifications,
documents, records, devices, models or any other material and copies or
reproductions thereof.

      2. OWNERSHIP OF PHYSICAL PROPERTY. All document, apparatus, equipment and
other physical property in any form, whether or not pertaining to Proprietary
Information, furnished to me by the Company or produced by me or others in
connection with my employment or consulting relationship shall be and remain the
sole property of the Company. I shall return to the Company all such documents,
materials and property as and when requested by the Company, except only (i) my
personal copies of records relating to my compensation; (ii) if applicable, my
personal copies of any materials evidencing shares of the Company's capital
stock purchased by me and/or options to purchase shares of the Company's capital
stock granted to me; (iii) my copy of this Agreement and (iv) my personal
property and personal documents I bring with me to the Company and any personal
correspondence and personal materials that I accumulate and keep at my office
during my employment (my "Personal Documents"). Even if the Company does not so
request, I shall return all such documents, materials and property upon
termination of my employment or consulting relationship, and, except for my
Personal Documents, I will not take with me any such documents, material or
property or any reproduction thereof upon such termination.

      3. ASSIGNMENT OF INVENTIONS.

            (a) Without further compensation, I hereby agree promptly to
disclose to the Company, all Inventions (as defined below) which I may solely or
jointly develop or reduce to practice during the period of my employment or
consulting relationship with the Company which (i) pertain to any line of
business activity of the Company, (ii) are aided by the use of time, material or
facilities of the Company, whether or not during working hours or (iii) relate
to any of my work during the period of my employment or consulting relationship
with the Company, whether or not during normal working hours ("Company
Inventions"). During the term of my employment or consultancy, all Company
Inventions that I conceive, reduce to practice, develop or have developed (in
whole or in part, either alone or jointly with others) shall be the sole
property of the Company and its assigns to the maximum extent permitted by law
(and to the fullest extent permitted by law shall be deemed "works made for
hire"), and the Company and its assigns shall be the sole owner of all patents,
copyrights, trademarks, trade secrets and other rights in connection therewith.
I hereby assign to the Company any rights that I may have or acquire in such
Company Inventions.

            (b) I attach hereto as Exhibit A-1 a complete list of all
Inventions, if any, made by me prior to my employment or consulting relationship
with the Company that are relevant to the Company's business, and I represent
and warrant that such list is complete. If no such list is attached to this
Agreement,

                                      -9-
<PAGE>

I represent that I have no such Inventions at the time of signing this
Agreement. If in the course of my employment or consultancy (as the case may be)
with the Company, I use or incorporate into a product or process an Invention
not covered by Section 3(a) of this Agreement in which I have an interest, the
Company is hereby granted a nonexclusive, fully paid-up, royalty-free,
perpetual, worldwide license of my interest to use and sublicense such Invention
without restriction of any kind.

      NOTICE REQUIRED BY REVISED CODE OF WASHINGTON 49.44.140:

      ANY ASSIGNMENT OF INVENTIONS REQUIRED BY THIS AGREEMENT DOES NOT APPLY TO
AN INVENTION FOR WHICH NO EQUIPMENT, SUPPLIES, FACILITY OR TRADE SECRET
INFORMATION OF THE COMPANY WAS USED AND WHICH WAS DEVELOPED ENTIRELY ON THE
EMPLOYEE'S OWN TIME, UNLESS (a) THE INVENTION RELATES (I) DIRECTLY TO THE
BUSINESS OF THE COMPANY OR (II) TO THE COMPANY'S ACTUAL OR DEMONSTRABLY
ANTICIPATED RESEARCH OR DEVELOPMENT OR (b) THE INVENTION RESULTS FROM ANY WORK
PERFORMED BY THE EMPLOYEE FOR THE COMPANY.

      4. FURTHER ASSISTANCE; POWER OF ATTORNEY. I agree to perform, during and
after my employment or consulting relationship, all acts deemed necessary or
desirable by the Company to permit and assist it, at its expense, in obtaining
and enforcing the full benefits, enjoyment, rights and title throughout the
world in the Inventions assigned to the Company as set forth in Section 3 above.
Such acts may include, but are not limited to, execution of documents and
assistance or cooperation in legal proceedings. I hereby irrevocably designate
the Company and its duly authorized officers and agents as my agent and
attorney-in fact, to execute and file on my behalf any such applications and to
do all other lawful acts to further the prosecution and issuance of patents,
copyright and mask work registrations related to such Inventions. This power of
attorney shall not be affected by my subsequent incapacity.

      5. INVENTIONS. As used in this Agreement, the term "Inventions" means
discoveries, developments, concepts, designs, ideas, know-how, improvements,
inventions, trade secrets and/or original works of authorship, whether or not
patentable, copyrightable or otherwise legally protectable. This includes, but
is not limited to, any new product, machine, article of manufacture, biological
material, method, procedure, process, technique, use, equipment, device,
apparatus, system, compound, formulation, composition of matter, design or
configuration of any kind, or any improvement thereon.

      6. PROPRIETARY INFORMATION. As used in this Agreement, the term
"Proprietary Information" means information or physical material not generally
known or available outside the Company or information or physical material
entrusted to the Company by third parties. This includes, but is not limited to,
Inventions, confidential knowledge, copyrights, product ideas, techniques,
processes, formulas, object codes, biological materials, mask works and/or any
other information of any type relating to documentation, laboratory notebooks,
data, schematics, algorithms, flow charts, mechanisms, research, manufacture,
improvements, assembly, installation, marketing, forecasts, sales, pricing,
customers, the salaries, duties, qualifications, performance levels and terms of
compensation of other employees, and/or cost or other financial data concerning
any of the foregoing or the Company and its operations. Proprietary Information
may be contained in material such as drawings, samples, procedures,
specifications, reports, studies, customer or supplier lists, budgets, cost or
price lists, compilations or computer programs, or may be in the nature of
unwritten knowledge or know-how.

      7. NO CONFLICTS. I represent that my performance of all the terms of this
Agreement as an employee of or consultant to the Company does not and will not
breach any agreement to keep in confidence proprietary information, knowledge or
data acquired by me in confidence or in trust prior to my becoming an employee
or consultant of the Company, and I will not disclose to the Company, or induce
the Company to use, any confidential or proprietary information or material
belonging to any previous employer or others. I agree not to enter into any
written or oral agreement that conflicts with the provisions of this Agreement.

                                      -10-
<PAGE>

      8. NO INTERFERENCE. I certify that, to the best of my information and
belief, I am not a party to any other agreement which will interfere with my
full compliance with this Agreement.

      9. EFFECTS OF AGREEMENT. This Agreement (a) shall survive for a period of
five years beyond the termination of my employment by or consulting relationship
with the Company, (b) inures to the benefit of successors and assigns of the
Company and (c) is binding upon my heirs and legal representatives.

      10. INJUNCTIVE RELIEF. I acknowledge that violation of this Agreement by
me may cause irreparable injury to the Company, and I agree that the Company
will be entitled to seek extraordinary relief in court, including, but not
limited to, temporary restraining orders, preliminary injunctions and permanent
injunctions without the necessity of posting a bond or other security and
without prejudice to any other rights and remedies that the Company may have for
a breach of this Agreement.

      11. MISCELLANEOUS. This Agreement supersedes any oral, written or other
communications or agreements concerning the subject matter of this Agreement,
and may be amended or waived only by a written instrument signed by me and an
executive officer of the Company. This Agreement shall be governed by the laws
of the State of Washington applicable to contracts entered into and performed
entirely within the State of Washington, without giving effect to principles of
conflict of laws. If any provision of this Agreement is held to be unenforceable
under applicable law, then such provision shall be excluded from this Agreement
only to the extent unenforceable, and the remainder of such provision and of
this Agreement shall be enforceable in accordance with its terms.

      12. ACKNOWLEDGMENT. I certify and acknowledge that I have carefully read
all of the provisions of this Agreement and that I understand and will fully and
faithfully comply with such provisions.

CELEBRATE EXPRESS, INC.                                   KEVIN A. GREEN

By:   ____________________________________________        ______________________
                                                          Kevin A. Green
Title:____________________________________________

Dated:___________________________________ ,______.        Dated: May 10, 2006.

                                      -11-
<PAGE>

                                   Exhibit A-1

      CELEBRATE EXPRESS, INC.
      11220 120th Avenue NE
      Kirkland, WA  98033

      Ladies and Gentlemen:

      1. The following is a complete list of all Inventions relevant to the
subject matter of my employment by the Company that have been made or conceived
or first reduced to practice by me, alone or jointly with others or which has
become known to me prior to my employment by the Company. I represent that such
list is complete.

      2. I propose to bring to my employment or consultancy the following
materials and documents of a former employer:

______   No materials or documents.

______   See below:

                                                  By:  _________________________
                                                       Kevin A. Green

                                       1
<PAGE>

                                    EXHIBIT B

                            INDEMNIFICATION AGREEMENT

      This Indemnification Agreement (this "Agreement") is made as of May __,
2006 by and between Celebrate Express, Inc. (the "Company"), and Kevin A. Green
("Indemnitee").

                                    RECITALS

      A. Indemnitee is an officer or director of the Company and in such
capacity is performing valuable services for the Company.

      B. The Company and Indemnitee recognize the difficulty in obtaining
directors' and officers' liability insurance, the significant cost of such
insurance and the general reduction in the coverage of such insurance.

      C. The Company and Indemnitee further recognize the substantial increase
in litigation subjecting officers and directors to expensive litigation risks at
the same time that such liability insurance has been severely limited.

      D. As of the date hereof, the Company has provisions for indemnification
of its directors in Article V of its Amended and Restated Articles of
Incorporation (the "Articles of Incorporation") and Article X of its Amended and
Restated Bylaws (the "Bylaws") which provide for indemnification of the
Company's directors and officers to the fullest extent permitted by the
Washington Business Corporation Act (the "Statute").

      E. The Articles of Incorporation, Bylaws and the Statute specifically
provide that they are not exclusive, and thereby contemplate that contracts may
be entered into between the Company and the members of its Board of Directors
and its officers with respect to indemnification of such directors and officers.

      F. The Bylaws provide that the Company may maintain, at its expense,
insurance to protect itself and any of its directors and officers against
liability asserted against such persons incurred in such capacity whether or not
the Company has the power to indemnify such persons against the same liability
under Section 23B.08.510 or .520 of the Statute or a successor statute.

      G. In order to induce Indemnitee to continue to serve as an officer and/or
director, as the case may be, of the Company, the Company has agreed to enter
into this Agreement with Indemnitee.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the recitals above, the mutual
covenants and agreements herein contained, and Indemnitee's continued service as
an officer and/or director, as the case may be, of the Company after the date
hereof, the parties to this Agreement agree as follows:

      1. INDEMNITY OF INDEMNITEE

            (a) Scope. The Company agrees to hold harmless and indemnify
Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized

                                       2
<PAGE>

by this Agreement, the Company's Articles of Incorporation, the Bylaws, the
Statute or otherwise. In the event of any change, after the date of this
Agreement, in any applicable law, statute or rule regarding the right of a
Washington corporation to indemnify a member of its board of directors or an
officer, such changes, to the extent that they would expand Indemnitee's rights
hereunder, shall be within the purview of Indemnitee's rights and the Company's
obligations hereunder, and, to the extent that they would narrow Indemnitee's
rights hereunder, shall be excluded from this Agreement; provided, however, that
any change that is required by applicable laws, statutes or rules to be applied
to this Agreement shall be so applied regardless of whether the effect of such
change is to narrow Indemnitee's rights hereunder.

            (b) Nonexclusivity. The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Articles of Incorporation, the Bylaws, any agreement, any
vote of shareholders or disinterested directors, the Statute, or otherwise,
whether as to action in Indemnitee's official capacity or otherwise.

            (c) Additional Indemnity. If Indemnitee was or is made a party, or
is threatened to be made a party, to or is otherwise involved (including,
without limitation, as a witness) in any Proceeding (as defined below), the
Company shall hold harmless and indemnify Indemnitee from and against any and
all losses, claims, damages, liabilities, expenses (including attorneys' fees),
judgments, fines, ERISA excise taxes or penalties, amounts paid in settlement
(if such settlement is approved in advance by the Company, which approval shall
not be unreasonably withheld) actually and reasonably incurred by Indemnitee in
connection with such Proceeding if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful
(collectively, "Damages").

            (d) Definition of Proceeding. For purposes of this Agreement,
"Proceeding" shall mean any actual, pending or threatened action, suit, claim or
proceeding, whether civil, criminal, administrative or investigative (including
actions, suits, or proceedings brought by or in the right of the Company) and
whether formal or informal, in which Indemnitee is, was or becomes involved as a
party or otherwise, by reason of the fact that Indemnitee is or was a director,
officer, employee or agent of the Company or that, being or having been such a
director, officer, employee or agent, Indemnitee is or was serving at the
request of the Company as a director, officer, employee, trustee or agent of
another corporation or of a partnership, joint venture, trust or other
enterprise (collectively a "Related Company"), including service with respect to
an employee benefit plan, whether the basis of such proceeding is alleged action
(or inaction) by Indemnitee in an official capacity as a director, officer,
employee, trustee or agent or in any other capacity while serving as a director,
officer, employee, trustee or agent; provided, however, that, except with
respect to an action to enforce the provisions of this Agreement, Proceeding
shall not include any action, suit, claim or proceeding instituted by or at the
direction of Indemnitee unless such action, suit, claim or proceeding is or was
authorized by the Company's Board of Directors.

            (e) Determination of Entitlement. In the event that a determination
of Indemnitee's entitlement to indemnification is required pursuant to Section
23B.08.550 of the Statute or any successor thereto or pursuant to other
applicable law, the appropriate decision-maker shall make such determination;
provided, however, that Indemnitee shall initially be presumed in all cases to
be entitled to indemnification, that Indemnitee may establish a conclusive
presumption of any fact necessary to such a determination by delivering to the
Company a declaration made under penalty of perjury that such fact is true and
that, unless the Company shall deliver to Indemnitee written notice of a
determination that Indemnitee is not entitled to indemnification within twenty
(20) days of the Company's receipt of Indemnitee's initial written request for
indemnification, such determination shall conclusively be deemed to have been
made in favor of the Company's provision of indemnification and the Company
hereby agrees not to assert otherwise.

                                      -3-
<PAGE>

            (f) Survival. The indemnification provided under this Agreement
shall apply to any and all Proceedings, notwithstanding that Indemnitee has
ceased to be a director, officer, employee, trustee or agent of the Company or a
Related Company.

      2. EXPENSE ADVANCES

            (a) Generally. The right to indemnification of Damages conferred by
Section 1 shall include the right to have the Company pay Indemnitee's expenses
in any Proceeding as such expenses are incurred and in advance of such
Proceeding's final disposition (such right is referred to hereinafter as an
"Expense Advance"). Any Expense Advance to be made under this Agreement shall be
paid by the Company to Indemnitee within twenty (20) days following delivery of
a written request therefor by Indemnitee to the Company.

            (b) Conditions to Expense Advance. The Company's obligation to
provide an Expense Advance is subject to the following conditions:

                  (i) Undertaking. If the Proceeding arose in connection with
Indemnitee's service as a director or officer of the Company (and not in any
other capacity in which Indemnitee rendered service, including service to any
Related Company), then Indemnitee or his or her representative shall have
executed and delivered to the Company an undertaking, which need not be secured
and shall be accepted without reference to Indemnitee's financial ability to
make repayment, by or on behalf of Indemnitee to repay all Expense Advances if
and to the extent that it shall ultimately be determined by a final,
unappealable decision rendered by a court having jurisdiction over the parties
and the question that Indemnitee is not entitled to be indemnified for such
Expense Advance under this Agreement or otherwise.

                  (ii) Cooperation. Indemnitee shall give the Company such
information and cooperation as it may reasonably request and as shall be within
Indemnitee's power.

                  (iii) Affirmation. Indemnitee shall furnish, upon request by
the Company and if required under applicable law, a written affirmation of
Indemnitee's good faith belief that any applicable standards of conduct have
been met by Indemnitee.

      3. PROCEDURES FOR ENFORCEMENT

            (a) Enforcement. In the event that a claim for indemnity, an Expense
Advance or otherwise is made hereunder and is not paid in full within sixty days
(twenty days for an Expense Advance) after written notice of such claim is
delivered to the Company, Indemnitee may, but need not, at any time thereafter
bring suit against the Company to recover the unpaid amount of the claim (an
"Enforcement Action").

            (b) Presumptions in Enforcement Action. In any Enforcement Action
the following presumptions (and limitation on presumptions) shall apply:

                  (i) The Company shall conclusively be presumed to have entered
into this Agreement and assumed the obligations imposed on it hereunder in order
to induce Indemnitee to continue as an officer and/or director, as the case may
be, of the Company;

                  (ii) Neither (i) the failure of the Company (including the
Company's Board of Directors, independent or special legal counsel or the
Company's shareholders) to have made a determination prior to the commencement
of the Enforcement Action that indemnification of Indemnitee

                                      -4-
<PAGE>

is proper in the circumstances nor (ii) an actual determination by the Company,
its Board of Directors, independent or special legal counsel or shareholders
that Indemnitee is not entitled to indemnification shall be a defense to the
Enforcement Action or create a presumption that Indemnitee is not entitled to
indemnification hereunder; and

                  (iii) If Indemnitee is or was serving as a director, officer,
employee, trustee or agent of a corporation of which a majority of the shares
entitled to vote in the election of its directors is held by the Company or in
an executive or management capacity in a partnership, joint venture, trust or
other enterprise of which the Company or a wholly owned subsidiary of the
Company is a general partner or has a majority ownership, then such corporation,
partnership, joint venture, trust or enterprise shall conclusively be deemed a
Related Company and Indemnitee shall conclusively be deemed to be serving such
Related Company at the request of the Company.

            (c) Attorneys' Fees and Expenses for Enforcement Action. In the
event Indemnitee is required to bring an Enforcement Action, the Company shall
indemnify and hold harmless Indemnitee against all of Indemnitee's fees and
expenses in bringing and pursuing the Enforcement Action (including attorneys'
fees at any stage, including on appeal); provided, however, that the Company
shall not be required to provide such indemnity for such attorneys' fees or
expenses if a court of competent jurisdiction determines that each of the
material assertions made by Indemnitee in such Enforcement Action was not made
in good faith or was frivolous.

      4. LIMITATIONS ON INDEMNITY; MUTUAL ACKNOWLEDGMENT

            (a) Limitation on Indemnity. No indemnity pursuant to this Agreement
shall be provided by the Company:

                  (i) On account of any suit in which a final, unappealable
judgment is rendered against Indemnitee for an accounting of profits made from
the purchase or sale by Indemnitee of securities of the Company in violation of
the provisions of Section 16(b) of the Securities Exchange Act of 1934 and
amendments thereto;

                  (ii) For Damages that have been paid directly to Indemnitee by
an insurance carrier under a policy of officers' and directors' liability
insurance maintained by the Company;

                  (iii) On account of Indemnitee's conduct which is finally
adjudged to have been intentional misconduct, a knowing violation of law or the
RCW 23B.08.310 or any successor provision of the Statute, or a transaction from
which Indemnitee derived benefit in money, property or services to which
Indemnitee is not legally entitled; or

                  (iv) If a final decision by a court having jurisdiction in the
matter shall determine that such indemnification is not lawful.

            (b) Mutual Acknowledgment. The Company and Indemnitee acknowledge
that, in certain instances, federal law or public policy may override applicable
state law and prohibit the Company from indemnifying Indemnitee under this
Agreement or otherwise. For example, the Company and Indemnitee acknowledge that
the Securities and Exchange Commission (the "SEC") has taken the position that
indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain
ERISA violations. Furthermore, Indemnitee understands and acknowledges that the
Company has undertaken or may be required in the future to undertake with the
SEC to submit the question of indemnification to a court in certain
circumstances for a determination of the Company's right under public policy to
indemnify Indemnitee.

                                      -5-
<PAGE>

      5. NOTIFICATION AND DEFENSE OF CLAIM

            (a) Notification. Promptly after receipt by Indemnitee of notice of
the commencement of any Proceeding, Indemnitee will, if a claim in respect
thereof is to be made against the Company under this Agreement, notify the
Company in writing of the commencement thereof; but the omission to notify the
Company will not relieve the Company from any liability which it may have to
Indemnitee under this Agreement unless and only to the extent that such omission
can be shown to have prejudiced the Company's ability to defend the Proceeding.

            (b) Defense of Claim. With respect to any such Proceeding as to
which Indemnitee notifies the Company of the commencement thereof:

                  (i) The Company may participate therein at its own expense;

                  (ii) The Company, jointly with any other indemnifying party
similarly notified, may assume the defense thereof, with counsel satisfactory to
Indemnitee. After notice from the Company to Indemnitee of its election to
assume the defense thereof, the Company shall not be liable to Indemnitee under
this Agreement for any legal or other expenses (other than reasonable costs of
investigation) subsequently incurred by Indemnitee in connection with the
defense thereof unless (i) the employment of counsel by Indemnitee has been
authorized by the Company, (ii) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the
conduct of the defense of such action, or (iii) the Company shall not in fact
have employed counsel to assume the defense of such action, in each of which
cases the fees and expenses of counsel shall be at the expense of the Company.
The Company shall not be entitled to assume the defense of any action, suit or
proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have made the conclusion provided for in (ii) above;

                  (iii) The Company shall not be liable to indemnify Indemnitee
under this Agreement for any amounts paid in settlement of any Proceeding
effected without its written consent;

                  (iv) The Company shall not settle any action or claim in any
manner which would impose any penalty or limitation on Indemnitee without
Indemnitee's written consent; and

                  (v) Neither the Company nor Indemnitee will unreasonably
withhold its, his or her consent to any proposed settlement.

            (c) Notice to Insurers. If, at the time of the receipt of a notice
of a claim pursuant to Section 5(a) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

      6. SEVERABILITY. Nothing in this Agreement is intended to require or shall
be construed as requiring the Company to do or fail to do any act in violation
of applicable law. The Company's inability, pursuant to court order, to perform
its obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable, as provided in
this Section 6. If this Agreement or any portion hereof shall be invalidated on
any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

                                      -6-
<PAGE>

      7. NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is intended
to create in Indemnitee any right to continued employment.

      8. OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company shall, from time
to time, make the good faith determination whether or not it is practicable for
the Company to obtain and maintain a policy or policies of insurance with
reputable insurance companies providing the officers and directors of the
Company with coverage for losses from wrongful acts, or to ensure the Company's
performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. In all policies of
director and officer liability insurance, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same rights and benefits
as are accorded to the most favorably insured of the Company's directors, if
Indemnitee is a director; or of the Company's officers, if Indemnitee is not a
director of the Company but is an officer; or of the Company's key employees, if
Indemnitee is not an officer or director but is a key employee. Notwithstanding
the foregoing, the Company shall have no obligation to obtain or maintain such
insurance if the Company determines in good faith that such insurance is not
reasonably available, if the premium costs for such insurance are
disproportionate to the amount of coverage provided, if the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient
benefit, or if Indemnitee is covered by similar insurance maintained by a parent
or subsidiary of the Company.

      9. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of the
expenses, judgments, fines or penalties actually or reasonably incurred in the
investigation, defense, appeal or settlement of any civil or criminal action,
suit or proceeding, but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion of such expenses,
judgments, fines or penalties to which Indemnitee is entitled.

      10. MISCELLANEOUS

            (a) Governing Law. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
Washington, without giving effect to principles of conflict of law.

            (b) Entire Agreement; Enforcement of Rights. This Agreement sets
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification, amendment or termination of this Agreement, nor any waiver of any
rights under this Agreement, shall be effective unless in writing signed by the
parties to this Agreement. The failure by either party to enforce any rights
under this Agreement shall not be construed as a waiver of any rights of such
party.

            (c) Construction. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

            (d) Notices. Any notice, demand or request required or permitted to
be given under this Agreement shall be in writing and shall be deemed sufficient
when delivered personally or sent by telegram or forty-eight (48) hours after
being deposited in the U.S. mail, as certified or registered mail, with postage
prepaid, and addressed to the party to be notified at such party's address as
set forth below or as subsequently modified by written notice.

                                      -7-
<PAGE>

            (e) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

            (f) Successors and Assigns. This Agreement shall be binding upon
Indemnitee and upon the Company, its successors and assigns, and shall inure to
the benefit of Indemnitee, Indemnitee's heirs, personal representatives and
assigns and to the benefit of the Company, its successors and assigns.

            (g) Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
to effectively bring suit to enforce such rights.

[Signature page follows]

                                      -8-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and
as of the day and year first above written.

                                               CELEBRATE EXPRESS, INC.

                                               _________________________________
                                               By: _____________________________
                                               Its:_____________________________

AGREED TO AND ACCEPTED:

_________________________________
Kevin A. Green

Address:_________________________
        _________________________

                                       1
<PAGE>

                                    EXHIBIT C

                                RELEASE AGREEMENT

                 (TO BE SIGNED ON OR AFTER THE SEPARATION DATE)

      I understand that my employment with Celebrate Express, Inc. (the
"Company") terminated effective _____________________, ____ (the "Separation
Date"). The Company has agreed that if I choose to sign this Release Agreement
("Release"), the Company will provide certain severance benefits (minus the
required withholdings and deductions) pursuant to the terms of the employment
agreement dated April ___, 2006 (the "Agreement"). I understand that I am not
entitled to such severance benefits unless I sign this Release, and it becomes
fully effective. I understand that, regardless of whether I sign this Release,
the Company will pay me all of my accrued salary and vacation through the
Separation Date, to which I am entitled by law.

      In consideration for the severance benefits I am receiving under the
Agreement, as described therein, I hereby agree to release the Company and its
officers, directors, agents, attorneys, employees, shareholders, parents,
subsidiaries, affiliates, successors, and assigns, of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys'
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known or unknown, suspected and unsuspected, disclosed and
undisclosed, liquidated or contingent, arising out of or in any way related to
agreements, events, acts or conduct at any time prior to and including the
execution date of this Release, including but not limited to: any and all such
claims and demands directly or indirectly arising out of or in any way connected
with my employment with the Company or the termination of that employment;
claims or demands related to salary, bonuses, commissions, incentive payments,
stock, stock options, or any ownership or equity interests in the Company,
vacation pay, personal time off, fringe benefits, expense reimbursements,
severance benefits, or any other form of compensation; claims pursuant to any
federal, any state or any local law, statute, common law or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as amended;
the federal Americans with Disabilities Act of 1990; the federal Employee
Retirement Income Security Act; the federal Age Discrimination in Employment Act
of 1967, as amended ("ADEA"); the Fair Labor Standards Act, as amended; the
Washington Family Leave Act, as amended; the Washington Minimum Wage Act as
amended; Chapter 49.60 of the Revised Code of Washington; tort law; contract
law; wrongful discharge; discrimination; harassment; fraud; misrepresentation;
defamation; libel; emotional distress; and breach of the implied covenant of
good faith and fair dealing.

      I represent and warrant that I have not breached my obligations to the
Company under the terms of the Proprietary Information and Invention Assignment
Agreement (the "Confidentiality Agreement") that I signed with the Company, and
I will continue to maintain the confidentiality of all Company confidential
and/or proprietary information as provided in the Confidentiality Agreement. I
acknowledge and agree that the provisions of the Agreement and the
Confidentiality Agreement that survive termination by their terms will continue
to be applicable to me after the Termination Date, including without limitation
Section 3 of the Agreement (regarding noncompetition and nonsolicitation).
Additionally, I further agree to return all the Company's property and
confidential and proprietary information in my possession or control, and any
copies or duplicates thereof, to the Company within five (5) business days.

<PAGE>

      I acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under the ADEA and that the consideration given for the
waiver in the above paragraphs is in addition to anything of value to which I
was already entitled. I have been advised by this writing, as required by the
ADEA, that: (a) my waiver and release do not apply to any claims that may arise
after my signing of this Release; (b) I should consult with an attorney prior to
signing this Release; (c) I have twenty-one (21) days within which to consider
this Release (although I may choose to voluntarily sign this Release earlier);
(d) I have seven (7) days after I sign this Release to revoke it; and (e) this
Release will not be effective until the eighth day after this Release has been
signed by me.

      I ACCEPT AND AGREE TO THE TERMS AND CONDITIONS STATED ABOVE:

_________________________________              _________________________________
Date                                           Kevin A. Green

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