Document:

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                                                                   EXHIBIT 10.22

                        SPONSORSHIP EXTENSION AGREEMENT

     THIS AGREEMENT, dated for reference purposes as of August 24, 1999 (the
"Agreement"), is by and between FOOTBALL NORTHWEST LLC, a Washington limited
liability company ("FNW") and MERCATA, INC., a Delaware Corporation ("Sponsor").

                                R E C I T A L S
                                ---------------

     A.  Pursuant to that certain Consent to Assignment and Amendment of Use
Agreement dated January 7, 1997, as amended, between King County, Washington
("King County") and FNW, FNW is granted the exclusive right to and revenue from
all advertising both inside and outside the King County Domed Stadium (the
"Kingdome") and the Kingdome Pavilion, including on adjacent parking lots.

     B.  The Kingdome is located in Seattle, Washington and currently serves as
the home venue for the National Football League ("NFL") franchise for the
Seattle Seahawks.

     C.  FNW owns and, during the term of this Agreement, FNW or its successor
or assign will retain the exclusive signage and advertising rights for the
Kingdome.

     D.  Sponsor desires to acquire from FNW certain sponsorship rights in the
areas described below and FNW is vested with the authority to grant and desires
to grant such rights to Sponsor in accordance with the terms and provisions of
this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
hereby agree as follows:

     1.  Sponsorship Benefits.  Sponsor shall during the term of this Agreement
         --------------------
receive the following sponsorship benefits:

         a. Seahawks Network Television-"Seahawks Saturday"
            1. Sponsorship of "The Mercata Minute" showcasing weekly Power Buy
               Updates for a total of seventeen (17) shows and seventeen (17)
               'Mercata Minutes'.
            2. Right of first refusal to sponsor "The Mercata Minute" on some or
               all post-season "Seahawks Saturday" shows
            3. Talent fees for Rich Waltz are inclusive within this agreement.
            4. Talent fee for Shawn Springs will be paid directly by sponsor
              ($700) separate from this agreement.

         b. In-Stadium Promotion
            1. 60,000 Seahawks/Sponsor window clings that promote Mercata to be
               distributed at the October 3, 1999 game at Kingdome, (Seahawks
               vs. Oakland Raiders)
            2. One (1) DiamondVision announcement promoting tune-in to "Seahawks
               Saturday Show" and sponsor involvement with show.  Content shall
               be subject to Sponsor's review and approval.

         c. Print

                                      1.

<PAGE>

            1. Mid-season Sponsor/Seahawks advertorial featuring "Power Buy"
               scoreboard. Location, content and format shall be subject to
               Sponsor's review and approval.

         d. Seahawks.com
            1. Sponsor to retain high profile home page presence with
               Seahawks.com, including a text and graphic link directing
               visitors to Mercata.com. Text and graphics shall be provided by
               Sponsor, and subject to Seahawks.com's review and approval.
            2. Seahawks and Sponsor to track click through performance during
               1999 regular season to measure visits to Mercata site from
               Seahawks.com. Any information voluntarily shared by the parties
               in connection with this Paragraph 1(d)(2) shall be subject to the
               confidentiality provisions in Paragraph 12.

         d. Other Opportunities
            1. Seahawks shall make appropriate introductions and otherwise use
               best faith efforts to assist Sponsor in working on similar
               marketing programs with the NFL and its member franchises
            2. Mercata's right to use Seahawks trademarks for promotional
               purposes shall extend throughout the 1999 regular season.

     2.  Term.  The term of this Agreement shall commence on August 24, 1999,
         ----
and shall thereafter continue until all above Sponsor benefits are completed,
but in no event beyond the end of the 1999 season (the "Term").  This Agreement
is noncancellable by either party except for termination in accordance with
Paragraph 7, below, and may be mutually extended by written agreement of the
parties.

     3.  Consideration.  In consideration of the sponsorship rights and other
         -------------
services and products granted and provided to Sponsor by FNW hereunder, Sponsor
hereby agrees to pay FNW a sponsorship fee in the amount of Sixty eight thousand
Dollars ($67,800) (the "Sponsorship Fee").

         3.1  Invoices and Payment.  FNW will send Sponsor invoices for the
              --------------------
Sponsorship Fee in two (2) monthly installments beginning October 1, 1999.
Invoices are payable thirty (30) days after receipt.  A five percent (5%) late
fee will be added to all invoices which become past due and interest at a rate
of twelve percent (12%) per annum will be charged on all balances not paid
within thirty (30) days of the date they are due.

     4.  Sponsor's Content and Design.  The content and design of Sponsor's
         ----------------------------
creative material shall be within the discretion of Sponsor. However, if FNW
objects to any such material when it is proved or thereafter, it shall notify
Sponsor as soon as possible and Sponsor shall take prompt action to address
FNW's concerns.

     5.  Trademarks
         ----------

         5.1  Use of Sponsor's Trademarks.  FNW shall not, by this Agreement,
              ---------------------------
obtain any night, title or interest in the trademarks or other proprietary
property of Sponsor, nor shall this Agreement give FNW the right to use, refer
to, or incorporate in marketing or other materials the name, logos, trademarks,
designs, identifications, or copyrights of Sponsor in any manner except as
authorized by Sponsor.  Sponsor acknowledges that FNW and parties conducting
events within the Kingdome may televise, video tape, or take still photographs
of events occurring in the Kingdome.  Sponsor hereby consents to the commercial
exploitation of such television broadcasts, video tapes and still photographs
notwithstanding the fact that the content and design of Sponsor's images may be
visible in such television broadcasts, video tapes and still photographs.

                                      2.
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         5.2  Use of FNW and Seattle Seahawks Trademarks.  Sponsor shall not, by
              ------------------------------------------
this Agreement, obtain any right, title or interest in the trade names or
trademarks of FNW, the Seattle Seahawks, the NFL, NFL Enterprises, L.P., NFL
Properties, Inc. or any affiliate of such, nor shall any such agreements give
Sponsor the right to use, refer to, or incorporate in marketing or other
materials the names, logos, trademarks, designs, identifications or copyrights
of FNW, the Seattle Seahawks, the NFL, NFL Enterprises, L.P., and NFL
Properties, Inc. without the prior written approval of FNW, which approval may
be withheld in FNW's reasonable discretion.  Sponsor may use Seahawks trademarks
for promotional purposes as necessary to convey the Sponsor benefits described
herein.  However, all such rights shall expire at the end of the 1999 regular
season.

     6.  Indemnification.  FNW agrees to defend, indemnify and hold Sponsor
         ---------------
harmless from and against all claims, suits, liabilities, costs and expenses,
including reasonable attorney costs and fees, for injury to, including death of,
persons (whether they be third persons or employees of either of the parties
hereto) or any loss of or damage to property in any manner arising from or
relating to the rights conveyed herein, with the understanding that this
obligation shall not apply to, and Sponsor agrees to defend, indemnify and hold
FNW and its officers, directors, employees and agents harmless from and against,
all losses, claims, suits, demands, actions, liabilities, costs and expenses,
including reasonable attorney costs and fees, for injury to, including death of,
persons (whether they be third persons or employees of either of the parties
hereto) or any loss of or damage to property in any manner arising from the
content of any advertising copy supplied by Sponsor or the negligence or
intentional misconduct of Sponsor or its officers, employees or agents.

     7.  Termination.  FNW and Sponsor shall each have the right but not the
         -----------
obligation to terminate this Agreement upon forty-five (45) days prior written
notice, without further liability except as otherwise provided by this Paragraph
7 if any of the following shall occur:

         (a) Damage to or destruction of the Kingdome to the extent that the
             Kingdome is closed for a period of greater than thirty (30) days,
             in which case the refund provisions of this Paragraph 7 shall
             apply.

         (b) The cancellation or termination of FNW's NFL franchise or the
             relocation of FNW's NFL franchise to a location more than 50 miles
             from Seattle, Washington.

         (c) The other party materially defaults in the performance of its
             material obligations under this Agreement and such other party
             fails to correct such breach within thirty (30) days of written
             notice.

         If this Agreement is so terminated by Sponsor, Sponsor shall be
entitled to a pro rata refund of any payments under this Agreement.

     8.  Remedies
         --------

         8.1  Generally.  In the event that either party fails to fully comply
              ---------
with any of its obligations under this Agreement, the other party shall be
entitled to all remedies set forth in this Agreement and, except as otherwise
provided herein, all remedies otherwise available at law or in equity.

         8.2  Limitation on Damages.  In no event shall either party be liable
              ---------------------
for any special, incidental or consequential damages arising out of or in
connection with this Agreement or the performance thereof.  FNW's liability for
any breach of this Agreement shall be strictly limited to

                                      3.
<PAGE>

refunding to Sponsor that portion of any consideration paid by Sponsor for which
Sponsor has not received the rights granted to it herein.

     9.   Limitations.  This Agreement is subject to the Constitution and Bylaws
          -----------
and other rules and regulations of the NFL, the statutes and regulations of the
State of Washington, and the ordinances and rules of King County, Washington and
the City of Seattle, Washington as they presently exist or as they may from
time-to-time be amended, including without limitation, any rule or regulation of
the NFL or any agreement to which the NFL is a party which restricts the
visibility of signage within the Kingdome during NFL games which are televised
nationally.  The obligations of either party to perform under this Agreement
shall be excused if such failure to perform or any delay is caused by matters
such as acts of God, strikes, lockout, work stoppage, picketing, damage or
concerted action by any employee or labor organization, civil commotion, riots,
war, acts of government, or any other cause whether similar or dissimilar to
those enumerated which are reasonably beyond the control of the party obligated
to perform.  Upon the occurrence of such event, the duties and obligations of
the party shall be suspended for the duration of the event preventing
performance.

     10.  Entire Agreement.  The entire agreement between the parties pertaining
          ----------------
to the subject matter of this Agreement is incorporated into this document.
This Agreement may not be modified or amended except by a writing duly executed
by the parties hereto.  This Agreement supersedes any and all prior agreements
and understandings between the parties.

     11.  Successor Interests.  Neither this Agreement nor any of the rights or
          -------------------
obligations of either FNW or Sponsor hereunder may be assigned, transferred or
conveyed by operation of law or otherwise by either party, nor shall such
agreements or rights inure to the benefit of any trustee in bankruptcy,
receiver, creditor, or trustee of either party's business or its properties
whether by operation of law or otherwise, except with the prior written consent
of the other party, which consent shall not be unreasonably withheld, and the
delivery of a written document in which the assignee assumes all of the
obligations of the assigning party and the assigning party acknowledges that it
will continue to be bound to such obligations if not performed by the assignee.
For purposes of this Paragraph 11, the transfer of a fifty percent (50%) or
greater ownership interest in a party shall be deemed to be an assignment of
this Agreement.  Notwithstanding the foregoing, no assignment or attempted
assignment by Sponsor shall be valid except to a party which intends to continue
the business of Sponsor as presently conducted.  Sponsor does hereby consent to
any transfer or assignment by FNW of its rights under this Agreement to an
affiliate of FNW without any additional prior consent of Sponsor.  Subject to
the foregoing, this Agreement shall be binding upon and shall inure to the
benefit of all successors and assigns of the parties.

     12.  Confidentiality. Each of the parties deems the provisions of this
          ---------------
Agreement to be confidential and proprietary in nature.  FNW and Sponsor each
agree that the terms of this Agreement will be kept confidential and will not be
disclosed in any manner whatsoever, in whole or in part, by either party without
the prior written consent of the other party except to the extent necessary for
such party to enforce its rights under this Agreement or as either party may be
advised by its legal counsel that it is obligated to disclose the terms of such
agreements.  Moreover, each party agrees to disclose the terms of this Agreement
only to its respective officers, employees, agents and representatives who need
to know of such terms and who agree to be bound by the confidentiality terms of
this Paragraph.  Each party shall be responsible for any breach of this
Paragraph by its respective officers, employees, agents and representatives.
The terms of this Paragraph shall survive the expiration or termination of this
Agreement for whatever reason for a period of three (3) years after such
expiration or termination.

                                      4.
<PAGE>

Notwithstanding the foregoing, FNW may disclose the terms of this Agreement to
King County, Washington and to lenders, legal counsel, and financial advisors.

     13.  Washington Law.  This Agreement shall be deemed to have been made in
          --------------
the state of Washington and shall be construed in accordance with the laws of
the state of Washington.  The exclusive venue for any suits or actions arising
out of this Agreement shall be in the Superior Court for the State of Washington
for King County or in the United States District Court for the Western District
of Washington.

     14.  Notices.  All notices under this Agreement shall be in writing and
          -------
shall be deemed to have been duly given if personally delivered, sent by
telecopier, sent by overnight courier service or sent by registered or certified
mail, postage prepaid, and shall be deemed given upon the earlier of actual
receipt or one day after it is sent, if sent by overnight courier, or three days
after it is sent by registered or certified mail.  All notices or other
communications shall be made as follows:

          To FNW:             11220 N.E. 53rd Street
                              Kirkland, WA 98033
                              Attn: Scott Patrick
                              V.P./Corporate Sales

          With a Copy to:     Richard E. Leigh, Jr.
                              Vice President/General Counsel
                              110-110th Avenue NE., Suite 550
                              Bellevue, WA 98004

          If to Sponsor:      Jerome Pache, Vice President Business Development
                              Leslie Wallis, General Counsel
                              MERCATA, Inc.
                              110 110th Avenue NE
                              Bellevue, WA 98004-5840

     15.  Arbitration.  Any controversy or claim arising out of or relating to
          -----------
this Agreement, including, but not limited to a claim based on or arising from
an alleged tort will, at the request of any party be determined by arbitration
in accordance with the Federal Arbitration Act (9 U.S.C. Section 1, et. seq.)
under the auspices and rules of the American Arbitration Association ("AAA").
The AAA will be instructed by either or both parties to prepare a list of judges
who have retired from the Superior Court of the State of Washington, a higher
Washington court or any federal court.  Within 10 days of receipt of this list,
each party may strike one name from the list.  The AAA will then appoint an
arbitrator from the name(s) remaining on the list.  The arbitration will be
conducted from Seattle, Washington.  Any controversy in interpretation or
enforcement of this provision or whether a dispute is arbitrable, will be
determined by the arbitrators.  Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction.  The institution
and maintenance of an action for judicial relief or in pursuit of an ancillary
remedy, does not constitute a waiver of the right of any party, including the
plaintiff, to subject the controversy or claim to arbitration.

     16.  Attorneys' Fees.  In the event any suit or action is brought or an
          ---------------
arbitration or bankruptcy proceeding is initiated (including, without
limitation, appeals of the foregoing) to enforce or interpret any of the
provisions of this Agreement, or which is based thereon, the prevailing party
shall be entitled to reasonable attorney fees in connection therewith.  The
determination of who is the prevailing party and

                                      5.
<PAGE>

the amount of reasonable attorney fees to be paid to the prevailing party shall
be decided by the court or courts, including any appellate court, in which such
matter is tried, heard, or decided, including the court which hears any
exceptions made to an arbitration award submitted to it for confirmation as a
judgment (with respect to attorneys' fees incurred in such confirmation
proceedings), or by the arbitrator(s) (with respect to attorneys' fees incurred
prior to and during the arbitration proceedings), as the case may be.

     17.  Relationship of Parties.  The parties are acting herein as independent
          -----------------------
contractors and independent employers.  Nothing herein contained shall create or
be construed as creating a partnership, joint venture or agency relationship
between the parties and no party shall have the authority to bind the other in
any respect.

     18.  Agreement Approval.  Each party hereby represents and warrants that
          ------------------
all necessary approvals for this Agreement have been obtained, and the person
whose signature appears below has the authority necessary to execute this
Agreement on behalf of the parties indicated.

     19.  Captions.  Paragraph headings herein are for convenience only and
          --------
shall not affect the construction or meaning of this Agreement.

                                      6.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

          FOOTBALL NORTHWEST LLC                            MERCATA, INC.

By:  /s/ Scott Patrick                 By:  /s/ Jerome Pache
   ------------------------------         --------------------------------

Name:    Scott Patrick                 Name:    Jerome Pache
     ----------------------------           ------------------------------
          (printed or typed)                     (printed or typed)

Title:  VP/Corporate Sales             Title:  VP, Business Development
      ---------------------------            -----------------------------

                                      7.<PAGE>

                                                                   EXHIBIT 10.23

                          TELEVISION LETTER AGREEMENT
                          ---------------------------

     The parties to this Agreement are TRAIL BLAZERS INC. ("Trail Blazers" or
"TBI") and MERCATA, INC. ("Advertiser").  Advertiser wishes to reserve
commercial time for advertising during television telecasts of the Trail
Blazers' National Basketball Association ("NBA") basketball games in accordance
with the provisions of this Agreement.

     The parties agree as follows:

     1.   Sponsorship.  This Agreement commences with the Trail Blazers' first
          -----------
pre-season game of the 1999-2000 NBA season and terminates with the last playoff
game in which the Trail Blazers participate following the 1999-2000 regular
season.  The Trail Blazers will telecast, on a commercial television station in
the Portland, Oregon metropolitan area, 26 preseason and/or regular season games
each season.  In addition, the Trail Blazers may telecast some playoff games on
a commercial television station in the Portland, Oregon metropolitan area.
Advertiser hereby agrees to sponsor all games telecast by the Trail Blazers on a
commercial television station in the Portland, Oregon metropolitan area.  Up to
five additional preseason and/or regular season games may be added by TBI in its
sole discretion upon reasonable notice to Advertiser and with a corresponding
proportionate increase in the Annual Fee.  Except for "Bonus Coverage" as may be
set forth on the attached Schedule A, nothing contained in this Agreement will
entitle Advertiser to commercial time or obligate Advertiser to pay any fees
with respect to games cablecast or otherwise transmitted on other than a
commercial television station in the Portland, Oregon metropolitan area.
Advertiser's commercials will be telecast on an equal rotation basis within the
air time segment.

          Advertiser hereby reserves and purchases the following commercial time
          during telecasts of Trail Blazer games:

          Thirty commercial seconds in the play-by-play portion of telecasts of
          Trail Blazers games.

          Format:  One 30-second commercial

     2.   Promotions.  In addition to the commercial time purchased above,
          ----------
Advertiser shall be entitled to the additional promotions and media specified in
the attached Schedule A, which is incorporated herein by reference.

     3.   Fees and Payment Schedule.  In consideration for the commercial time
          ---- --- ------- --------
and additional promotions and media to be received by Advertiser hereunder,
Advertiser agrees to pay a non-cancelable Annual Fee for each NBA season covered
by this Agreement and to pay a non-cancelable Additional Playoff Fee for each
playoff game in accordance with the following:

          (a)

               ----------------------------------------------
                      Season             Net Annual Fee/1/
               ----------------------------------------------
                    1999-2000               $130,000
               ----------------------------------------------

          (b)  The Annual Fee is payable as follows: TBI will send invoices to
Advertiser for the Annual Fee in six equal monthly installments beginning
November 1 of each season.  Invoices will be considered to be past due if not
paid within 30 days after receipt.

______________________________
/1/ The Advertiser must provide all broadcast material in a ready-to-use
condition. Advertiser agrees to pay market rates for any production/creative
services provided by the Trail Blazers at Advertiser's written request.

                                      -1-
<PAGE>

          (c) An Additional Playoff Fee of $5,000 per game shall be charged for
each playoff game which is telecast by the Trail Blazers on a commercial
television station in the Portland, Oregon metropolitan area during the term of
this Agreement.

          (d) Any Additional Playoff Fees will be payable as follows:  TBI will,
following each playoff round in which the Trail Blazers televise games, send
invoices to Advertiser for the Additional Playoff Fees for playoff games
televised in such round.  Invoices will be considered to be past due if not paid
within 30 days after receipt.

          (e) A 1.5 percent late fee will be added to all invoices which become
past due and interest at a rate of 18 percent per annum will be charged on all
balances not paid within 30 days of when they are due.

     4.   Protection and Operative Clauses.
          ---------- --- --------- -------

          (a) No rights of exclusivity are granted to Advertiser by this
Agreement and nothing contained herein shall limit in any manner the rights of
the Trail Blazers to sell commercial time during any of its telecasts for
advertisements to any other entity or for the advertisement of any product or
service.

          (b) The script and tone of any advertising must conform to the
policies of the Trail Blazers and the telecasting station, each of which shall
have the continuing right to reject or edit telecast material to the extent
necessary to conform to such policies and as may be in the public interest.  In
addition, Advertiser acknowledges that the Trail Blazers maintain a variety of
commercial relationships and, therefore, in the interest of protecting the
interests of all its sponsors, the Trail Blazers have the unilateral discretion
to reject advertising based on product category exclusivity, the incompatibility
or antithetical nature of the advertising, the tenor and object of the
advertising, or the promotion of a product or service either not in the category
for which Advertiser contracted or of an entity other than Advertiser.  If any
advertising is so rejected, the Trail Blazers will provide Advertiser with 10
days' written notice of such rejection to allow Advertiser to furnish suitable
substitute advertising prior to the next scheduled telecast.  Advertiser will be
entitled to a pro rata refund or a make good for any commercials it does not
receive as a result of such rejection.

          (c) All advertisements will be in the form of videotape recordings,
half-inch, three-fourths-inch, one-inch or Beta format.  Advertiser shall be
responsible for the content and quality of all commercial materials.  All
advertising and commercial code-traffic instructions shall be delivered to the
Trail Blazers 10 days prior to telecast.  Advertiser may change the content on 7
days' advance notice.

          (d) If Advertiser's telecast material or code-traffic instructions are
not furnished by Advertiser in a timely manner, the Trail Blazers may utilize
any previously furnished material of Advertiser to fill spots reserved for
Advertiser for upcoming telecasts.  No requirement as to air time product
separation regarding the scheduling of advertisements for competitive products
applies to this Agreement.  Unless otherwise stated herein, no exclusivity
rights are granted to Advertiser.

          (e) Advertiser will receive written deadline and specifications for
any print media referenced in this Agreement.  Advertiser shall be responsible
for the content and quality of any print commercial productions.  If
Advertiser's printed material is not furnished in a timely manner, the benefits
in this Agreement which involve printed material will be forfeited with no
financial rebates.

          (f) All advertising material furnished to the Trail Blazers which is
not retrieved by Advertiser within two months following the end of the term of
this Agreement shall become the property of the Trail Blazers.  This paragraph
is not intended to, nor shall it be construed to, give TBI any right, title or
interest in any of the trademarks, trade names, advertising slogans or
copyrighted material belonging to Advertiser, nor does this paragraph give TBI
use of the Advertising materials for any purpose other than to the extent
permitted herein during the term of this Agreement or the destruction of such
materials.

                                      -2-
<PAGE>

          (g)  (1)  Advertiser shall be entitled to, from time to time, make
reasonable use of TBI's name, trade names, trademarks and logos in connection
with advertising by Advertiser in the state of Oregon and the Portland, Oregon
metropolitan area; provided, however, that Advertiser shall only do so with the
prior written approval of TBI, which approval may be withheld in TBl's sole
discretion, and provided further that any advertising material making use of
such shall identify Advertiser as a "Proud Trail Blazers Sponsor." TBI
understands and agrees that Advertiser is the exclusive owner of Advertiser's
proprietary business models and technology, including but not limited to its
PowerBuy(TM) method of group buying, its We-Commerce(TM) technology and any
subsequent developments thereof.  Advertiser does not grant TBI any right or
license, express or implied, in Advertiser's proprietary business models or
technology.

               (2)  TBI shall not, by this Agreement, obtain any right, title or
interest in Advertiser's name, trade names or logos, or Advertiser's proprietary
business methods and technology, including but not limited to its PowerBuy(TM)
method of demand aggregation.  However, Advertiser grants TBI a royalty-free,
non-exclusive, worldwide license to organize, reproduce, create derivative works
from, publicly display, distribute and otherwise use Advertiser's name, trade
names or logos to provide the promotions and media described in Schedule A.  All
such rights shall immediately terminate upon the termination of this Agreement.

          (h)  This Agreement is subject to all federal, state and municipal
laws and regulations now or hereafter in effect, including regulations,
decisions, actions and orders of the Federal Communications Commission, and in
addition is subject to the terms of any telecast license held by the television
station. This Agreement shall be construed in accordance with the laws of the
state of Oregon.

          (i)  (1)  Advertiser shall indemnify, defend, and hold the Trail
Blazers harmless from and against any and all claims, damages, loss, liability
or expense, including attorneys' fees and the cost of any legal proceedings,
arising out of the advertisements furnished by Advertiser, including but not
limited to claims, actions or proceedings, and any appeal, for libel, slander,
invasion of privacy, infringement of copyright or license, unfair or improper
trade practices, other wrongful business conduct, or conduct in violation of the
rules and regulations of the Federal Trade Commission and analogous state
agencies. This indemnity shall specifically extend to the television station
telecasting such advertisements.

               (2)  TBI shall indemnify, defend, and hold Advertiser harmless
from and against any and all claims, damages, loss, liability or expense,
including attorney fees and the cost of any legal proceedings, arising out of
TBI's improper use of the advertisements, trademarks, trade names or logos
furnished by Advertiser.

          (j)  If legal proceedings or arbitration proceedings are initiated by
either party to enforce or interpret this Agreement, the party prevailing in any
suit, action or proceeding, and in any appeal therefrom, shall be entitled to
recover its reasonable attorney fees as fixed by the court in which the action
is tried or in which the appeal is heard or by the arbitrator who hears the
proceeding.  Additionally, in the event that Advertiser seeks the protection of
or becomes the subject of proceedings in the United States Bankruptcy Court, the
Trail Blazers shall be entitled to recover its reasonable attorney fees incurred
in such proceedings as fixed by such court.

          (k)  If after 7 days advance written notice from TBI, Advertiser fails
to pay any overdue invoice (a "Default"), the entire Annual Fee for the
remainder of the term of this Agreement shall become immediately due and
payable.  If the entire Annual Fee is not paid within 7 days of receipt by
Advertiser of a notice of Default, the Trail Blazers may immediately terminate
this Agreement in addition to seeking whatever other relief is afforded by
applicable law.

          (l)  Either party may terminate this Agreement upon the cancellation
or termination of the Trail Blazers' NBA franchise or the relocation of the
Trail Blazers' franchise to a location more than 50 miles from Portland, Oregon.
In such event, Advertiser will receive a pro rata refund based upon the number
of commercials not delivered.

                                      -3-
<PAGE>

          (m)  In no event shall either party be liable for any special,
incidental, or consequential damages or loss of profits arising out of or
relating to any breach of this Agreement.  The exclusive remedies for Advertiser
in the event of a breach by TBI shall be a suitable make good and a pro rata
compensating credit for lost time.

          (n)  Neither this Agreement nor the rights hereunder may be assigned
by Advertiser without the prior written consent of the Trail Blazers which
consent may be withheld in the sole discretion of the Trail Blazers.

     5.   Right of Refusal.  Subject to another advertiser purchasing
          ----- -- -------
exclusivity in the retail e-commerce web site category, Advertiser shall have a
right of first refusal with respect to advertising time offered by the Trail
Blazers for local telecasts of selected games for the 2000-2001 season, on terms
and conditions then being offered by the Trail Blazers. This right shall only
apply to placements the same as those provided for in this Agreement and must be
exercised by executing and returning to the Trail Blazers the Letter Agreement
for the 2000-2001 season within 15 days after it is presented to either
Advertiser or Advertiser's agent.

     6.   Limitations.  This contract requires Advertiser to abide by the
          -----------
Constitution and Bylaws and other rules and regulations of the National
Basketball Association as they presently exist or as they may from time to time
be amended.

     7.   Notices.  All notices to be given pursuant to this Agreement shall be
          -------
in writing and shall be deemed received when personally delivered or three
business days after deposit in regular mail addressed to the address as set
forth below.  Either party may change such address by written notice to the
other party of such change.

     8.   Entire Agreement.  This Agreement constitutes the entire agreement and
          ------ ---------
understanding between the parties and may be amended only by a written
instrument executed by them.

     EXECUTED as of this 1st day of October, 1999.

TRAIL BLAZERS INC.                      ADVERTISER

By:  /s/ E. Hubert                      By: /s/ Tom Van Horn
     --------------------------            ---------------------------
Title:  VP Sales & Service              Title:  President and CEO
One Center Court, Suite 200             110 - 110th Ave. NE
Portland, Oregon 97227                  Bellevue, WA 98004-5840

                                      -4-
<PAGE>

                                  SCHEDULE A
                                  ----------

 .    Advertiser will receive one full page, four-color ad in Hoop Magazine
     (artwork to be provided color separated and camera-ready by sponsor)
     starting with the December issue. Advertiser will be subject to the same
     requirements as other Hoop Magazine advertisers.

 .    Advertiser will receive, as a bonus, 13 commercials on the Blazers
     statewide television/cable network.

 .    Advertiser will receive sponsorship of one (1) in-game feature ("Mercata
     Power Play of the Game") in 26 games on KGW-TV and 25 BlazerVision cable
     games. The feature will include an on-screen graphic and a live announcer
     read such as "Tonight's Mercata Power Play of the Game, brought to you by
     Mercata. Go on-line and check out tonight's Mercata PowerBuy Deals, such as
     . . ."

 .    Advertiser will receive one "live" half-time PowerBuy announcement each
     game. Announcement will include a graphic of Mercata's home page and a
     special PowerBuy announcement featuring the "PowerBuy Deal of the Day" and
     its price at the start of the game. PowerBuy feature will come from one of
     Mercata's key categories: Appliances, Baby, Home and Kitchen, Consumer
     Electronics, Gifts and Gadgets, Hobbies, Holiday, Lawn and Garden, Luggage,
     Hand and Power Tools, Watches and Jewelry, or Sports and Fitness.

 .    Advertiser will receive one in-arena promotion: a minimum of twenty (20)
     AstroVision features during Blazers games that will include logo
     identification for Mercata.

 .    Advertiser will receive two (2) "Mercata Minute" commercials during each of
     six half-hour TV specials on KGW-TV. The "Mercata Minute" will showcase
     weekly PowerBuy updates and the Mercata home page.

 .    Advertiser will receive a total of 12 "Mercata Minute" features during six
     (6) half-hour TV specials on KGW-TV.

 .    Advertiser will receive two (2) opening, middle or closing billboards
     during each of six (6) half-hour TV specials on KGW-TV.

 .    Advertiser will receive banner advertisements on ROSEQUARTER.COM together
     with a direct "hotlink" to Advertiser's home page, currently located at
     mercata.com.

 .    Advertiser will receive a banner advertisement on BLAZERS.COM, TBI's
     Internet team home page on NBA.COM, together with a "hotlink" to
     Advertiser's home page, subject to the following: (1) this Agreement, any
     link from such banner (the "Link"), the banner artwork and the destination
     page of the Link must be submitted to, and approved by in writing, NBA
     Properties, in its sole discretion, before posting, (2) the Link must be
     directly to Advertiser's web site and not to any "bridge" or transactional
     page or stand alone site (unless otherwise required by the NBA), (3) if the
     Advertiser is engaged in an advertising category in which an NBA sponsor
     competes, the Link must not point to any information on the sponsor's site
     that is related to basketball, the NBA, or include any content that creates
     the impression that Advertiser is associated or affiliated with the NBA or
     another team, a player in uniform, or a coach, (4) this Agreement and
     specifically this benefit are subject to the Constitution and Bylaws and
     other rules and regulations of the NBA as they presently exist or as they
     may from time to time be amended, and (5) this benefit will expire on the
     earlier of the end of this contract or October 1, 2000, unless the NBA
     allows such links to continue for subsequent seasons.

 .    Subject to NBA approval, Advertiser will receive 20 pieces of Blazers
     merchandise, at cost, to be featured on the Mercata web site.

                                       5.

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