ADVERTISING INSERTION ORDER

EXHIBIT 10.12





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AOL ADVERTISING INSERTION ORDER

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Contract #: ________________ AOL Salesperson: ___________

Credit Approval Received Sales Coordinator: _________ Date: ______________________



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Advertiser Advertising Agency

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Contact Person Doug Walner

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Company Name Stamps.com, Inc.

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Address - Line 1 2900 31st St., Suite 150

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Address - Line 2 Santa Monica, CA 90405

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Phone # 310-450-1444

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Fax #

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Email Dwalner@stamps.com

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SIC Code

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Advertiser IAB Category

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Billing Information

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Send Invoices to (choose one): Advertiser [_] Agency

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Advertiser or Agency Billing Same as above

Contact Person

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Company Name

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Billing Address - Line 1

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Billing Address - Line 2

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Billing Phone #

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Billing Fax #

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Billing Email Address

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P.O. #, if applicable

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1. Guaranteed Payments. Advertiser shall make the following payments to AOL:



a. [***]* upon execution of this Insertion Order Agreement,

b. [***]* on each of (i) January 1,1999 and (ii) February 1, 1999;

c. [***]* on March 1, 1999; and

d. Subject to the provisions of Section 2 of Exhibit A, [***]* on each of

(i) May 1, 1999, (ii) August 1, 1999, (iii) November 1, 1999, and (iv)

February 1, 2000; provided however, should the Phase II Promotions

commence prior to or after May 1, 1999, Advertiser shall pay AOL [***]*

on the commencement date of the Phase II Promotions (the "Phase II

Promotion Launch Date"), and [***]* on each of the four (4) month, seven

(7) month, and ten (10) month anniversaries of the Phase II Promotion

Launch Date.



2. Additional Payments. See Sections 3 and 8 of Exhibit A, and Section 9 of

Exhibit E attached hereto.



3. Late Payments; Wired Payments. All amounts owed hereunder not paid when due

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and payable will bear interest from the date such amounts are due and

payable at the prime rate in effect at such time. All payments required

hereunder will be paid in immediately available, non-refundable U.S. funds

wired to the "America Online" account, Account Number 323070752 at The

Chase Manhattan Bank, 1 Chase Manhattan Plaza, New York, NY 10081 (ABA:

021000021). In the event of nonpayment on any of the dates specified above,

Advertiser shall have an additional five (5) business days within which to

make such payment and if Advertiser does not make the required payment in

such additional five (5) business days, AOL reserves the right to

immediately terminate this Insertion Order Agreement with written notice to

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* [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.



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Inventory Type(choose one): [_] AOL Service only [_] AOL Affiliate only (e.g AOL.com)

[_] Aol Service & AOL Affiliate

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AOL Service

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AOL Inventory/Demographic* Display Display # of Ad Slots Total Gross Total

Purchased Start Date Stop Ad Type Purchased Price Impressions

Date

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PHASE I PROMOTIONS

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Run of E-mail: Zip Code Area 1 [***]* [***]* Banner [***]* [***]*

Rotation

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Run of E-mail: Zip Code Area 2 [***]* [***]* Banner [***]* [***]*

Rotation

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Run of E-mail: Zip Code Area 3 [***]* [***]* Banner [***]* [***]*

Rotation

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Run of Service: Zip Code Area 1 [***]* [***]* Banner [***]* [***]*

Rotation

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Run of Service: Zip Code Area 2 [***]* [***]* Banner [***]* [***]*

Rotation

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Run of Service: Zip Code Area 3 [***]* [***]* Banner [***]* [***]*

Rotation

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Computing Download Software: Zip [***]* [***]* Banner [***]* [***]*

Code Targeted Rotation

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PHASE II PROMOTIONS [***]* [***]*

See Exhibit B attached hereto

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* Attach completed AOL Demographic PHASE I $193,000 [***]*

Profile Worksheet PROMOTIONS TOTAL:

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All necessary artwork and active URL's must be provided by advertiser 3 business days prior to start date.



Artwork required from Advertiser/Agency:

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[_] 234x60 IAB Standard /10k Max [_] 145x30 Old Standard /10k Max [_] 120x60 Shopping/10k Max

[_] 175x45 Chat/Mail in-box/10k Max [_] 197x40 PF Area/10k Max [_] Special_____

* Static banners only, no animation*



Linking URL: The HTTP/URL address to be connected to the Advertisement shall be: http://www.stamps.com, or any other HTTP/URL

agreed upon by Advertiser and AOL (the "Affiliated Advertiser Site"). Advertiser shall be responsible for any hosting or

communication costs associated with the Affiliated Advertiser Site.



Please send artwork and URL to (choose one):



[_] AOLARTWEST@aol.com [_] AOLARTEAST@aol.com

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AOL reserves the right to immediately cancel any advertising flight in the event of a material change to the nature or content of

the site linked to the Advertisement.

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* [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.





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AOL Affiliate (e.g., AOL.com)

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AOL Affiliate Display Display # of Ad Slots Total Gross Total

Inventory/Demographic* Start Stop Ad Type Purchased Price Impressions

Purchased Date Date

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PHASE I PROMOTIONS

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Digital City - Market Selection [***]* [***]* Banner [***]* [***]*

Rotation

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PHASE II PROMOTIONS [***]* [***]*

See Exhibit B attached hereto

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* See attached package description for PHASE I $7,000 [***]*

any AOL.com package purchases PROMOTIONS

TOTAL :

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All necessary artwork and active URL's must be provided by advertiser 3 business days prior to start date.



Artwork required from Advertiser/Agency :

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[_] 468x60 NF Reviews, Search Terms, My News & Hometown/10k Max/animation OK

[_] 100x70 AOL.com Home Page/3k Max/No animation [_] 120x60 NF Home Page/2k Max/No animation

[_] 120x60 Shopping/4k Max/No animation [_] 234x60 NF Kids Only & Hometown/5k Max/animation OK

[_] 120x60 Instant Messenger/7.5k Max/animation OK



Linking URL: The HTTP/URL address to be connected to the Advertisement shall be the same address as that of the Advertiser Site.



Please send artwork and URL to (choose one):



[_] AOLWEBWEST@aol.com [_] AOLWEBEAST@aol.com

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AOL reserves the right to immediately cancel any advertising flight in the event of a material change to the nature or content of

the site linked to the Advertisement.

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Advertising Purchase Summary

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Total Price Total Impressions CPM

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AOL Networks [***]* [***]*

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AOL Affiliate [***]* [***]*

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Total Purchase Price [***]* [***]* [***]*

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(Less Agency Discount) N/A N/A

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Net Purchase Price Total Impressions

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$1,900,350 [***]*

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The products and/or services to be offered or promoted by Advertiser in the Advertisements are as follows: online postal services (i.e., services associated with the online sale of postage stamps and ancillary products and services related thereto) (the "Advertiser Products").







* [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.





4. Impressions Commitment. Any guarantees are to impressions (as measured by

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AOL in accordance with its standard methodologies and protocols), not

"click-throughs." In the event there is (or will be in AOL's reasonable

judgment) a shortfall in impressions as of the end of a display period (a

"Shortfall"), such Shortfall shall not be considered a breach of the

Agreement by AOL; instead, AOL will provide Advertiser, as its sole remedy,

with "makegood" impressions through advertisement placements on the AOL

Service. In connection with the foregoing, AOL shall use reasonable efforts

to ensure that any makegood impressions shall be provided to Advertiser

through promotions that are comparable in nature to the appropriate type of

promotions through which the impressions should have been delivered (e.g.,

if there is a Shortfall that should have been delivered through Level A

Promotions, AOL shall use reasonable efforts to make up such impressions

with other Level A Promotions). In the event that AOL is unable to provide

makegood impressions through the appropriate comparable promotions, AOL

shall provide such impressions through other types of promotions as

follows: (i) for each Level A impression that was not delivered, AOL shall

deliver either (a) three (3) Level B impressions or (b) ten (10) Level C

impressions; (ii) for each Level B impression that was not delivered, AOL

shall deliver either (a) 1/3 of a Level A impression or (b) three (3) Level

C impressions; and (iii) for each Level C impression that was not

delivered, AOL shall deliver one Level C impression. To the extent

impressions commitments are identified without regard to specific

placements, such placements will be as mutually agreed upon by AOL and

Advertiser during the course of the display period. AOL reserves the right

to alter Advertiser flight dates to accommodate trafficking needs or other

operational needs. In such cases, AOL will make available to Advertiser

reasonably equivalent flight(s).



5. Navigation. Advertiser shall provide continuous navigational ability for

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AOL users to return to an agreed-upon point on the AOL Service (for which

AOL shall supply the proper address) from the Affiliated Advertiser Site

(e.g., the point on the AOL Service from which the Affiliated Advertiser

Site is linked).



6. Term. Unless otherwise terminated as provided herein, the term hereof

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shall begin on the first Display Start Date and shall expire on the last

Display Stop Date.





AUTHORIZED SIGNATURES



In order to bind the parties to this Insertion Order Agreement, their duly authorized representatives have signed their names below on the dates indicated. This Agreement (including Exhibits A, B, C, D and E attached hereto and incorporated by reference) shall be binding on both parties when signed on behalf of each party and delivered to the other party (which delivery may be accomplished by facsimile transmission of the signature pages hereto).



AOL ADVERTISER



By: /s/ David M. Colburn By: /s/ John M. Payne

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Print Name: David M. Colburn Print Name: John M. Payne

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Title: SVP Business Affairs Title: Pres/CEO

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Date: 12/16/98 Date: 12/15/98







EXHIBIT A

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1. Authorization to Conduct Business. Advertiser hereby represents and

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warrants that it has obtained all necessary permits, licenses or other

authorizations from the United States Postal Service (the "USPS") which

permits Advertiser to conduct a beta test of the Advertiser Products by

advertising and offering for sale the Advertiser Products on the AOL

Service during the Phase I Promotions.



2. Phased Roll-Out of Promotions. The Advertisements provided hereunder

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shall be provided by AOL in accordance with the Insertion Order provided

above, subject to the following:



a. At least three (3) days prior to the Phase I Promotions Display Stop

Date, Advertiser shall provide AOL with a written notice which shall

contain the following :



i. a representation by Advertiser that Advertiser has obtained all

necessary permits, licenses or other authorizations from the

USPS which permits Advertiser to engage in a full scale rollout

and sale of the Advertiser Product through the AOL Service (the

"USPS Authorization"), and



ii. an election by Advertiser to receive the Phase II Promotions.

Provided, however, that if prior to the end of the Phase I

Promotions Advertiser shall receive USPS Authorization to

promote and sell the Advertiser Products on a full scale basis

through the AOL Service, Advertiser shall provide AOL with a

written notice (provided at least two (2) days prior to the date

on which Advertiser wishes to begin receiving the Phase II

Promotions) (the "Acceleration Notice"), containing (A) the

representation required pursuant to Section 2(a)(i) of this

Exhibit A, and (B) an election by Advertiser to receive the

Phase II Promotions. In such event, the parties hereto shall

create a new insertion order which will indicate the new Display

Start Date of the Phase II Promotions, which insertion order

shall be attached hereto as an Exhibit. Notwithstanding the

foregoing, (1) upon receipt of an Acceleration Notice, AOL shall

only be obligated to place Advertisements for which Advertiser

has already provided the necessary creative art work and related

materials to AOL, and which requires less than two (2) days of

advance notice to place on the AOL Service; to the extent that

any Advertisement required to be placed during the Phase II

Promotions shall require more than two (2) days of advance

notice to be placed on the AOL Service, AOL shall provide such

Advertisements within thirty (30) days after receipt of the

Acceleration Notice; (2) AOL shall not be obligated to provide

the Phase II Promotions unless and until Advertiser makes the

representation required pursuant to Section 2(a)(i) of this

Exhibit A; and (3) if Advertiser does not receive the USPS

Authorization prior to June 30, 1999, notwithstanding anything

otherwise contained herein, either party shall have the right to

immediately terminate this Insertion Order Agreement without any

further obligation or liability of any kind (other than any

liability incurred by either party prior to such date) to the

other party on account of such termination. In the event of such

termination, Advertiser shall have no further payment

obligations under this Insertion Order Agreement other than

payment obligations due and payable at the time of termination.



3. Additional Promotions.

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a. Phase I. During the Phase I Promotions, from time to time, Advertiser

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shall have the right to purchase up to [***]* worth of additional

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from AOL subject to the following restrictions:



i Advertiser shall purchase such additional impressions in minimum

increments of [***]* at a CPM value that is equivalent to the

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CPM value of comparable types of provided hereunder, pursuant to

an AOL Insertion Ord ...