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STANDARD COMMERCIAL/INVESTMENT
PURCHASE AGREEMENT
(Non-Residential or More Than Four Residential Units)

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DEFINITIONS

        BROKER includes cooperating brokers and all sales persons. DAYS means
calendar days, midnight to midnight, unless otherwise specified. BUSINESS DAY
excludes Saturdays, Sundays and legal holidays. DATE OF ACCEPTANCE means the
date Seller accepts the offer or the Buyer accepts the counter offer. DELIVERED
means personally delivered, transmitted by facsimile machine, by a nationally
recognized overnight courier, or by deposit in the U.S. Mail, postage prepaid.
In the event of mailing, the document will be deemed delivered three (3)
business days after deposit; in the event of overnight courier, one (1) business
day after deposit; and if by facsimile, at time of transmission provided that a
transmission report is generated and retained by the sender reflecting the
accurate transmission of the document. Unless otherwise provided in this
Agreement or by law, delivery to the agent will constitute delivery to the
principal. DATE OF CLOSING means the date title is transferred. TERMINATING THE
AGREEMENT means that both parties are relieved of their obligations and all
deposits will be returned to Buyer less expenses incurred by or on account of
Buyer to date of termination. PROPERTY means the real property and any personal
property included in the sale.

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        AGENCY RELATIONSHIP CONFIRMATION.    The following agency relationship
is hereby confirmed for this transaction and supersedes any prior agency
election:

        LISTING AGENT: Keegan & Coppin Company, Inc. is the agent of (check
one):

        ý the Seller exclusively; or o both the Buyer and the Seller.

        SELLING AGENT: Meridian Commercial, Inc. (if not the same as the Listing
Agent) is the agent of (check one):

        ý the Buyer exclusively; or o the Seller exclusively, or o both the
Buyer and the Seller.

        Note: This confirmation DOES NOT take the place of the AGENCY DISCLOSURE
form (P.P. Form 110.42 CAL) required by law.

        San Francisco Development, a California corp. hereinafter designated as
BUYER, offers to purchase the real property situated in San Rafael, County of
Marin, California, commonly known as 171 and 181 Carlos Drive, FOR THE PURCHASE
PRICE OF $2,150,000.00 (two million one hundred fifty thousand and no/100
dollars) on the following terms and conditions:

1.   FINANCING TERMS AND LOAN PROVISIONS.

    A.   $ 5,000.00   DEPOSIT evidenced by ý check, or o
other:                  , held uncashed until acceptance and not later than
three (3) business days thereafter deposited toward the purchase price with:
Fidelity National Title Company     B.   $ 20,000.00   ADDITIONAL CASH DEPOSIT
to be placed in escrow o within     days after acceptance, o upon receipt of
Loan Commitment per Item 2, ý Other: removal of all contingencies.     C.   $
2,125,000.00   BALANCE OF CASH PAYMENT needed to close, not including closing
costs.     D.   $     NEW FIRST LOAN:               o FIXED RATE: For     years,
interest not to exceed      %, payable at approximately $                  per
month (principal and interest only), with the balance due in not less
than    years.               o ARM: For     years, initial interest rate not to
exceed      %, with initial monthly payments of $                  and maximum
lifetime rate not to exceed      %               o Buyer will pay loan fee or
points not to exceed            .

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              o Lender to appraise property at no less than purchase price.    
          o OTHER TERMS:     E.   $     EXISTING FINANCING: o FIRST LOAN, o
SECOND LOAN: o ASSUMPTION OF, o SUBJECT TO existing loan of record described as
follows:
    

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    F.   $     SELLER FINANCING: o FIRST LOAN, o SECOND LOAN, o THIRD LOAN,
secured by the property.
o Seller Financing Addendum, P.P Form 131.1-3 CAL, is attached and made a part
of this Agreement.     G.   $     OTHER FINANCING TERMS:
    

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    H.   $     TOTAL PURCHASE PRICE (not including closing costs).

2.   LOAN APPROVAL. Conditioned upon Buyer's ability to obtain a commitment for
new financing, as set forth above, from a lender or mortgage broker of Buyer's
choice, and/or consent to assumption of existing financing provided for in this
Agreement, within      days after acceptance. Buyer will in good faith use his
or her best efforts to qualify for and obtain the financing and will complete
and submit a loan application within five (5) days after acceptance. Buyer
o will, o will not provide a o prequalification letter, or o pre-approval letter
from lender or mortgage broker based on Buyer's application and credit report
within            days after acceptance. In the event a loan commitment or
consent is obtained but not timely honored without fault of Buyer, Buyer may
terminate this Agreement.
3.
 
BONDS AND ASSESSMENTS. All bonds and assessments which are part of or paid with
the property tax bill will be assumed by the Buyer. In the event there are other
bonds or assessments which have an outstanding principal balance and are a lien
upon the property, the current installment will be prorated between Buyer and
Seller as of the date of closing. Future installments will be assumed by Buyer
WITHOUT CREDIT toward the purchase price, EXCEPT AS FOLLOWS:
 
 

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This Agreement is conditioned upon both parties verifying and approving in
writing the amount of any bond or assessment to be assumed or paid within ten
(10) days after receipt of the preliminary title report. In the event of
disapproval, the disapproving party may terminate this Agreement.

4.   PROPERTY TAX. Within five (5) days after acceptance, Seller will deliver to
Buyer for his or her approval a copy of the latest property tax bill. Buyer is
advised that: (a) the property will be reassessed upon change of ownership which
may result in a tax increase; and (b) the tax bill may not include certain
exempt items such as school taxes on property owned by seniors. Buyer should
make further inquiry at the assessor's office. Within ten (10) days after
receipt of the tax bill, Buyer will in writing approve or disapprove the tax
bill. In the event of disapproval, Buyer may terminate this agreement.

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5.
 
EXISTING LOANS. Seller will, within three (3) days after acceptance, provide
Buyer with copies of all notes and deeds of trust to be assumed or taken subject
to. Within five (5) days after receipt Buyer will notify Seller in writing of
his or her approval or disapproval of the terms of the documents. Approval will
not be unreasonably withheld. Within three (3) days after acceptance, Seller
will submit a written request for a current Statement of Condition on the above
loan(s). Seller warrants that all loans will be current at close of escrow.
Seller will pay any prepayment charge imposed on any existing loan paid off at
close of escrow. Buyer will pay the prepayment charge on any loan which is to
remain a lien upon the property after close of escrow. The parties are
encouraged to consult his or her lender regarding prepayment provisions and any
due on sale clauses.
6.
 
DESTRUCTION OF IMPROVEMENTS. If the improvements of the property are destroyed,
materially damaged, or found to be materially defective as a result of such
damage prior to close of escrow, Buyer may terminate this Agreement by written
notice delivered to Seller or his or her Broker, and all unused deposits will be
returned. In the event Buyer does not elect to terminate this Agreement, Buyer
will be entitled to receive, in addition to the property, any insurance proceeds
payable on account of the damage or destruction.
7.
 
EXAMINATION OF TITLE. In addition to any encumbrances assumed or taken "subject
to," Seller will convey title to the property subject only to: [1] real estate
taxes not yet due; and [2] covenants, conditions, restrictions, rights of way
and easements of record, if any, which do not materially affect the value or
intended use of the property.
 
 
        Within three (3) days after acceptance, Buyer will order a Preliminary
Title Report and copies of CC&Rs and other documents of record if applicable.
Within ten (10) days after receipt, Buyer will report to Seller in writing any
valid objections to title contained in such report (other than monetary liens to
be paid upon close of escrow). If Buyer objects to any exceptions to the title,
Seller will use due diligence to remove such exceptions at his or her own
expense before close of escrow. If such exceptions cannot be removed before
close of escrow, this Agreement will terminate, unless Buyer elects to purchase
the property subject to such exceptions. If Seller concludes he or she is in
good faith unable to remove such objections, Seller will so notify Buyer within
ten (10) days after receipt of said objections. In that event Buyer may
terminate this Agreement.

8.   EVIDENCE OF TITLE will be in the form of a policy of title insurance,
issued by Fidelity National Title Company, paid by ý Buyer, o Seller, o Other.
NOTE: Buyer should discuss the type of policy with the title company of his or
her choice at the time escrow is opened. In the event a lender requires an ALTA
lender's policy of title insurance, ý Buyer, o Seller will pay the premium.
9.
 
PRORATIONS. Rents, real estate taxes, interest, payments on bonds and
assessments assumed by Buyer, and homeowners association fees will be prorated
as of the date of recordation of the deed. Security deposits, advance rentals,
or considerations involving future lease credits will be credited to Buyer.
10.
 
CLOSING. Full purchase price to be paid and deed to be recorded o on or before
                                , OR o within    days after acceptance. Both
parties will deposit with an authorized escrow holder, to be selected by Buyer,
all funds and instruments necessary to complete the sale in accordance with the
terms of this Agreement. o Where customary, signed escrow instructions will be
delivered to escrow holder within    days after acceptance. Escrow fee to be
paid by Buyer. County/City transfer tax(es), if any, to be paid by Seller. THIS
PURCHASE AGREEMENT TOGETHER WITH ANY ADDENDA WILL CONSTITUTE JOINT ESCROW
INSTRUCTIONS TO THE ESCROW HOLDER.

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11.
 
PHYSICAL POSSESSION. Physical possession of the property, with keys to all
property locks, alarms, and garage door openers, will be delivered to Buyer
(check one):
 
 
ý On the date of recordation of the deed, not later than 11:00 ý a.m., o p.m.;
 
 
o On the    day after recordation, not later than    o a.m., o p.m.
12.
 
FIXTURES. All items permanently attached to the property, including light
fixtures and bulbs, attached floor coverings, all attached window coverings,
including window hardware, window and door screens, storm sash, combination
doors, awnings, TV antennas, burglar, fire, smoke and security alarms (unless
leased), pool and spa equipment, solar systems, attached fireplace screens,
electric garage door openers with controls, outdoor plants and trees (other than
in movable containers), are included in the purchase price free of liens,
EXCLUDING: None.
13.
 
NOTICE OF VIOLATIONS. By acceptance, Seller warrants that he or she has no
written notice of violations relating to the property from City, County, State,
Federal or any other governmental agencies.
14.
 
INCOME AND EXPENSE STATEMENT. Within seven (7) days of acceptance, Seller will
deliver to Buyer, for his or her approval, a true and complete statement of
rental income and expenses. Within seven (7) days of receipt of that statement,
Buyer will notify Seller in writing of his or her approval or disapproval. In
case of disapproval, Buyer may terminate this Agreement.
15.
 
SERVICE CONTRACTS. Within seven (7) days of acceptance, Seller will furnish
Buyer, for his or her approval copies of any service and/or equipment rental
contracts with respect to the property which run beyond close of escrow. Within
seven (7) days of receipt of the copies, Buyer will notify Seller in writing of
his or her approval or disapproval. In case of disapproval, Buyer may terminate
this Agreement.
16.
 
EXISTING LEASES. This Agreement is subject to existing leases, and rental
agreements. Within seven (7) days of acceptance, Seller will deliver to Buyer,
for his or her approval, true copies of all existing leases and rental
agreements, copies of all outstanding notices sent to tenants, and a written
statement of any oral agreements with tenants. Seller will also deliver to
Buyer, within seven (7) days of acceptance, a statement of any uncured defaults,
claims made by or to tenants, and a statement of all tenants' deposits held by
Seller. Seller warrants all information to be true and complete. Buyer's
obligations are conditioned upon approval of existing leases and rental
agreements. Within seven (7) days of receipt of the documents, Buyer will notify
Seller in writing of his or her approval or disapproval. In case of disapproval,
Buyer may terminate this Agreement. Buyer's obligations under this Agreement are
further conditioned upon receipt on or before date of closing of Estoppel
Certificates executed by each tenant acknowledging that a lease or rental
agreement is in effect, that no lessor default exists, and stating the amount of
any prepaid rent or security deposit.
17.
 
CHANGES DURING TRANSACTION. During the pendency of this transaction, Seller
agrees that no changes in the existing leases or rental agreements will be made,
nor new leases or rental agreements entered into, nor will any substantial
alterations or repairs be made or undertaken to the property without the written
consent of the Buyer.
18.
 
MAINTENANCE. Seller will maintain the property until the closing in its present
condition, ordinary wear and tear excepted. The heating, ventilating, air
conditioning, plumbing, elevators, loading doors, and electrical systems will be
in good operating order and condition as of the time of closing.

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19.
 
ACCESS TO PROPERTY. Seller agrees to provide reasonable access to the property
to Buyer and inspectors, appraisers, and all other professionals representing
Buyer.
20.
 
WALK-THROUGH INSPECTION. Buyer will have the right to conduct a walk-through
inspection of the property within 7 days prior to close of escrow, to verify
Seller's compliance with the provisions under Item 12, FIXTURES, and Item 18,
MAINTENANCE. This right is not a condition of this Agreement, and Buyer's sole
remedy for an alleged breach of these items is a claim for damages. Utilities
are to remain turned on until the close of escrow.
21.
 
COMPLIANCE WITH LOCAL LAWS. Seller will comply with any local laws applicable to
the sale or transfer of the property, including but not limited to: Providing
inspections and/or reports for compliance with local building and permit
regulations, including septic system inspection reports; compliance with minimum
energy conservation standards; and compliance with water conservation measures.
All required inspections and reports will be ordered within three (3) days after
acceptance and will be paid by o Seller, o Buyer. If Seller does not agree
within    days after receipt of a report to pay the cost of any repair or
improvement required to comply with such laws, Buyer may terminate this
Agreement.
22.
 
OPTIONAL PROVISIONS. The provisions in this Item 22, if initialed by Buyer are
included in this Agreement.
22-A.
 
[      ] [      ] PEST CONTROL INSPECTION. Within 30 days after acceptance, ý
Buyer, o Seller, will obtain at his or her expense a current written report of
an inspection by a licensed structural pest control operator of the main
building (excluding the roof covering), and all attached structures plus the
following:
 
 
        The inspector will be requested to provide a separate report for:
"Section 1"—Any portion of the structure(s) where infestation or infection is
evident, and "Section 2"—Where conditions are present which are deemed likely to
lead to infestation or infection, but where no infestation or infection exists
at this time. Within three (3) days after receipt of the report, Seller may: (a)
elect to pay the entire cost of work recommended in said report (including work
recommended in both Section 1 and Section 2); or (b) elect to pay none or only a
portion of the cost of such work. Written notice of such election will be
delivered to Buyer or his or her Broker, together with the report.
 
 
        In the event Seller does not agree to pay for all the recommended work
(including work recommended in both Section 1 and Section 2), Buyer may: (a)
elect to pay the balance of the cost of any Section 1 work not paid for by
Seller; (b) elect to have any remaining Section 2 work done at Buyer's expense;
OR (c) terminate this Agreement. Written notice of Buyer's elections will be
delivered to Seller or his or her Broker within seven (7) days after receipt of
Seller's notice.
 
 
        Work to be performed at Seller's expense may be performed in whole or in
part by the Seller; provided that, upon completion of Seller's work but before
the area has been closed up, the property is reinspected by a licensed
structural pest control operator at Seller's expense who certifies that the
inspected property is free of evidence of active infestation or infection. As
soon as they are available, copies of inspection reports, certifications, or
other proof of completion of the work will be delivered to Brokers of Buyer and
Seller, who are authorized to receive the documents on behalf of their
principals.
 
 
        Funds for work to be done at Seller's expense after close of escrow will
be held in escrow and disbursed by the escrow holder upon receipt of a
certification by a licensed structural pest control operator that the property
is free of evidence of active infestation or infection.

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22-B.   [      ] [      ] SELLER TO PAY FOR WORK SHOWN IN EXISTING PEST CONTROL
REPORT. Within 24 hours after acceptance, Seller will furnish Buyer a copy of
the existing pest control report dated        by                        . Seller
agrees to pay for both Section 1 and Section 2 work, if any, recommended in said
report, or perform the work himself or herself as stated in Item 22-A. Within
fifteen (15) days after acceptance, Buyer will notify Seller in writing of
approval or disapproval of the report. In case of disapproval, Buyer may
terminate this Agreement.
22-C.
 
[      ] [      ] WAIVER OF PEST CONTROL INSPECTION. Buyer has satisfied himself
or herself about the condition of the property and agrees to purchase the
property without the benefit of a structural pest control inspection. Buyer
acknowledges that he or she has not relied upon any representations by either
the Broker or the Seller with respect to matters that would normally be covered
in a pest control inspection.
22-D.
 
[      ] [      ] INSPECTIONS OF PHYSICAL CONDITION OF PROPERTY. Buyer will have
the right to retain, at his or her expense, licensed experts including but not
limited to engineers, geologists, architects, contractors, surveyors, arborists,
and structural pest control operators to inspect the property for any structural
and nonstructural conditions, including matters concerning roofing, electrical,
plumbing, heating, cooling, appliances, well, septic system, pool, boundaries,
geological and environmental hazards, toxic substances including asbestos,
formaldehyde, radon gas, and lead-based paint. Buyer, if requested by Seller in
writing, will promptly furnish, at no cost to Seller, copies of all written
inspection reports obtained. Buyer will approve or disapprove in writing all
inspection reports obtained within     days after acceptance. In the event of
Buyer's disapproval, Buyer may elect to terminate this Agreement.
22-E.
 
[      ] [      ] MAINTENANCE RESERVE. Seller agrees to leave in escrow a
maintenance reserve in the amount of $            . If, in the reasonable
opinion of a qualified technician, any of the equipment listed under Item 18,
MAINTENANCE, is not in working order, Buyer will furnish Seller a copy of the
technician's inspection report and/or submit written notice to Seller of
non-compliance of any of the terms under Item 18, MAINTENANCE, within seven (7)
days after occupancy is delivered.
 
 
        In the event Seller fails to make the repairs and/or corrections within
five (5) days after receipt of said report or notice, Seller authorizes the
escrow holder to disburse to Buyer against bills for such repairs or corrections
the sum of such bills, not to exceed the amount reserved. Said reserve will be
disbursed to Buyer or returned to Seller not later than fifteen (15) days after
date occupancy is delivered.

22-F.   [      ] [      ] FLOOD HAZARD ZONE. Buyer has been advised that the
property is located in a special flood hazard area designated by the Federal
Emergency Management Agency (FEMA). It will be necessary to purchase flood
insurance in order to obtain any loan secured by the property from any federally
regulated financial institution or a loan insured or guaranteed by an agency of
the U.S. Government. The purpose of the program is to provide flood insurance at
reasonable cost. For further information consult your lender or insurance
carrier.

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22-G.
 
[      ] [      ] EARTHQUAKE FAULT OR SEISMIC HAZARD ZONE DISCLOSURES. The
property is situated in a Earthquake Fault Zone or Seismic Hazard Zone as
designated under §§ 2621-2625 and §§ 2690-2699.6 of the California Public
Resources Code. Construction or development of any structure for human occupancy
may be restricted. No representations on the subject are made by Seller or
Broker. Buyer may make further independent inquiries at appropriate governmental
agencies concerning the use of the property under the terms of the above
statutes. Within seven (7) days after acceptance, Buyer will notify Seller in
writing of satisfaction or dissatisfaction of said inquiries. In case of
dissatisfaction Buyer may terminate this Agreement.
22-H.
 
[      ] [      ] PROBATE/CONSERVATORSHIP SALE. Pursuant to the California
Probate Code, this sale is subject to court approval at which time the court may
allow open competitive bidding. An "AS IS" Addendum (P.P. form 101-AI) o is, o
is not attached and made a part of this Agreement.
22-I.
 
[      ] [      ] RENT CONTROL ORDINANCE. Buyer is aware that a local ordinance
is in effect which regulates the rights and obligations of property owners. It
may also affect the manner in which future rents can be adjusted.
22-J.
 
[      ] [      ] TAX DEFERRED EXCHANGE (INVESTMENT PROPERTY). In the event that
Seller wishes to enter into a tax deferred exchange for the property, or Buyer
wishes to enter into a tax deferred exchange with respect to property owned by
him or her in connection with this transaction, each of the parties agrees to
cooperate with the other party in connection with such exchange, including the
execution of such documents as may be reasonably necessary to complete the
exchange; provided that: (a) the other party will not be obligated to delay the
closing; (b) all additional costs in connection with the exchange will be borne
by the party requesting the exchange; (c) the other party will not be obligated
to execute any note, contract, deed or other document providing for any personal
liability which would survive the exchange; and (d) the other party will not
take title to any property other than the property described in this Agreement.
It is understood that a party's rights and obligations under this Agreement may
be assigned to a third party intermediary to facilitate the exchange. The other
party will be indemnified and held harmless against any liability which arises
or is claimed to have arisen on account of the exchange.
22-K.
 
[      ] [      ] PERSONAL PROPERTY. The purchase price includes all furniture
and furnishings and any other personal property owned by Seller and used in the
operation of the property per attached signed inventory, receipt of which is
hereby acknowledged. This inventory is incorporated by reference. The personal
property will be transferred to Buyer by a Warranty Bill of Sale delivered at
closing.
23.
 
LIQUIDATED DAMAGES. By initialing in the spaces below,
 
 
[      ] [      ] Buyer agrees                        [      ] [      ] Buyer
does not agree     [      ] [      ] Seller
agrees                        [      ] [      ] Seller does not agree

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that in the event Buyer defaults in the performance of this Agreement, Seller
will retain as liquidated damages the deposit set forth in Items 1-A and 1-B,
and that said liquidated damages are reasonable in view of all the circumstances
existing on the date of this Agreement. In the event of additional deposit(s)
required under Item 1-B, the parties will execute a similar liquidated damages
provision as required by law. In the event that Buyer defaults and has not made
the deposit required under Item 1-B or refuses to execute the liquidated damages
provision with respect to such additional deposit, then Seller will have the
option of retaining the initial deposit or terminating the obligations of the
parties under this Item 23 and recovering such damages from Buyer as may be
allowed by law. Parties understand that in case of dispute mutual cancellation
instructions are necessary to release funds from escrow or trust accounts.
24.
 
DEFAULT. In the event Buyer defaults in the performance of this Agreement
(unless Buyer and Seller have agreed to liquidated damages), Seller may, subject
to any rights of Broker, retain Buyer's deposit to the extent of damages
sustained and may take such actions as he or she deems appropriate to collect
such additional damages as may have been actually sustained. Buyer will have the
right to take such action as he or she deems appropriate to recover such portion
of the deposit as may be allowed by law. In the event that Buyer defaults
(unless Buyer and Seller have agreed to liquidated damages) Buyer agrees to pay
the Broker(s) any commission that would be payable by Seller in the absence of
such default.
25.
 
MEDIATION OF DISPUTES. If a dispute arises out of or relates to this Agreement
or its breach, by initialing in the "agree" spaces below the parties agree to
first try in good faith to settle the dispute by voluntary mediation before
resorting to court action or arbitration, unless the dispute is a matter
excluded under Item 26 ARBITRATION.
 
 
[      ] [      ] Buyer agrees                        [      ] [      ] Buyer
does not agree     [      ] [      ] Seller
agrees                        [      ] [      ] Seller does not agree
26.
 
ARBITRATION OF DISPUTES. Any dispute or claim in law or equity arising out of
this Agreement will be decided by neutral binding arbitration in accordance with
the California Arbitration Act (C.C.P. § 1280 et seq.), and not by court action
except as provided by California law for judicial review of arbitration
proceedings. Judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction. The parties will have the right to discovery
in accordance with Code of Civil Procedure § 1283.05.
 
 
        The parties agree that the following procedure will govern the making of
the award by the arbitrator: (a) a Tentative Award will be made by the
arbitrator within 30 days following submission of the matter to the arbitrator;
(b) the Tentative Award will explain the factual and legal basis for the
arbitrator's decision as to each of the principal controverted issues; (c) the
Tentative Award will be in writing unless the parties agree otherwise; provided,
however, that if the hearing is concluded within one (1) day, the Tentative
Award may be made orally at the hearing in the presence of the parties. Within
15 days after the Tentative Award has been served or announced, any party may
serve objections to the Tentative Award. Upon objections being timely served,
the arbitrator may call for additional evidence, oral or written argument, or
both. If no objections are filed, the Tentative Award will become final without
further action by the parties or arbitrator. Within thirty (30) days after the
filing of objections, the arbitrator will either make the Tentative Award final
or modify or correct the Tentative Award, which will then become final as
modified or corrected.

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        The provisions of C.C.P. § 128.5 authorizing the imposition of sanctions
as a result of bad faith actions or tactics will apply to the arbitration
proceedings. A prevailing party will also be entitled to an action for malicious
prosecution if the elements of such cause of action are met.
 
 
        The following matters are excluded from arbitration: (a) a judicial or
non-judicial foreclosure or other action or proceeding to enforce a deed of
trust, mortgage, or real property sales contract as defined in Civil Code §
2985; (b) an unlawful detainer action; (c) the filing or enforcement of a
mechanic's lien; (d) any matter which is within the jurisdiction of a probate
court, or small claims court; or (e) an action for bodily injury or wrongful
death, or for latent or patent defects to which Code of Civil Procedure § 337.1
or § 337.15 applies. The filing of a judicial action to enable the recording of
a notice of pending action, for order of attachment, receivership, injunction,
or other provisional remedies, will not constitute a waiver of the right to
arbitrate under this provision.
 
 
        NOTICE: By initialing in the ["agree"] space below you are agreeing to
have any dispute arising out of the matters included in the "Arbitration of
Disputes" provision decided by neutral arbitration as provided by California law
and you are giving up any rights you might possess to have the dispute litigated
in a court or jury trial. By initialing in the ["agree"] space below you are
giving up your judicial rights to discovery and appeal, unless those rights are
specifically included in the "Arbitration of Disputes" provision. If you refuse
to submit to arbitration after agreeing to this provision, you may be compelled
to arbitrate under the authority of the California Code of Civil Procedure. Your
agreement to this arbitration provision is voluntary.
 
 
        We have read and understand the foregoing and agree to submit disputes
arising out of the matters included in the "Arbitration of Disputes" provision
to neutral arbitration.

[      ] [      ] Buyer agrees                        [      ] [      ] Buyer
does not agree

[      ] [      ] Seller agrees                        [      ] [      ] Seller
does not agree

27.   ATTORNEY FEES. In any action or proceeding involving a dispute between
Buyer and Seller arising out of the execution of this Agreement or the sale,
whether for tort or for breach of contract, and whether or not brought to trial
or final judgment, the prevailing party will be entitled to receive from the
other party a reasonable attorney fee to be determined by the court or
arbitrator(s).
28.
 
EXPIRATION OF OFFER. This Offer will expire unless acceptance is delivered to
Buyer or to Matt Brown of Meridian Commercial, Inc. (Buyer's Broker) on or
before (date) 11/2/01 (time) 5:00 o a.m. ý p.m.
29.
 
COUNTERPARTS. This Agreement may be executed in one or more counterparts, each
of which is deemed to be an original.

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30.   CONDITIONS SATISFIED/WAIVED IN WRITING: Each condition or contingency,
covenant, approval or disapproval will be satisfied according to its terms or
waived by written notice delivered to the other party or his or her Broker.
31.
 
TIME. Time is of the essence of this Agreement; provided, however, that if
either party fails to comply with any contingency in this Agreement within the
time limit specified, this Agreement will not terminate until the other party
delivers written notice to the defaulting party requiring compliance within 24
hours after receipt of notice. If the party receiving the notice fails to comply
within the 24 hours, the non-defaulting party may terminate this Agreement
without further notice.
32.
 
SURVIVAL. The omission from escrow instructions of any provision in this
Agreement will not waive the right of any party. All representations or
warranties will survive the close of escrow.
33.
 
ENTIRE AGREEMENT/ASSIGNMENT PROHIBITED. This document contains the entire
agreement of the parties and supersedes all prior agreements or representations
with respect to the property which are not expressly set forth. This Agreement
may be modified only in writing signed and dated by both parties. Both parties
acknowledge that they have not relied on any statements of the real estate Agent
or Broker which are not expressed in this Agreement. Buyer may not assign any
right under this agreement without the prior written consent of Seller. Any such
assignment will be void and unenforceable.
34.
 
ADDENDA. The following addenda are attached and made a part of this Agreement:
 
 
        o Addendum No. 1
 
 
        o Addendum No. 2
35.
 
ADDITIONAL TERMS AND CONDITIONS.

Seller Provided documents. Within 10 days of the acceptance of this offer Seller
shall provide Buyer with copies of all documents in Seller's possession that
materially pertain to the property including, by illustration but not
limitation, the following: plans, permits, surveys, architectural drawings,
correspondence with any governmental or quasi governmental agency or any
neighboring property owners, correspondence with tenants, hazardous materials
studies or reports, information pertaining to the potential of splitting the
parcel.

Buyer shall have up to 30 days after acceptance to review and either approve or
disapprove in its sole discretion. If Buyer approves, this condition shall be
removed in writing. If Buyer does not approve of any of the conditions revealed
in its investigations during the time so stipulated, Buyer my terminate this
agreement by giving Seller written notice to the same. If Buyer so terminates,
this agreement shall be null and void and all deposits made by Buyer shall be
refunded to Buyer without offset or charge.

NOTICE: The California Department of Justice, sheriff's departments, police
departments serving jurisdictions of 200,000 or more and many other local law
enforcement authorities maintain for public access a data base of the locations
of persons required to register pursuant to paragraph (1) of subdivision (a) of
Section 290.4 of the Penal Code. The data base is updated on a quarterly basis
and a source of information about the presence of these individuals in any
neighborhood. The Department of Justice also maintains a Sex Offender
Identification Line through which inquiries about individuals may be made. This
is a "900" telephone service. Callers must have specific information about
individuals they are checking. Information regarding neighborhoods is not
available through the "900" telephone service.

LIMITATION OF AGENCY: A real estate broker or agent is qualified to advise on
real estate. If you have any questions concerning the legal sufficiency, legal
effect, insurance, or tax consequences of this document or the related
transactions, consult with your attorney, accountant or insurance advisor.

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The undersigned Buyer acknowledges that he or she has thoroughly read and
approved each of the provisions of this offer and agrees to purchase the
property for the price and on the terms and conditions specified. Buyer
acknowledges receipt of a copy of this offer.

Buyer  

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ACCEPTANCE

Seller accepts the foregoing Offer and agrees to sell the property for the price
and on the terms and conditions specified.

NOTICE: The amount or rate of real estate commissions is not fixed by law. They
are set by each Broker individually and may be negotiable between the Seller and
Broker.

36.   COMMISSION. Seller agrees to pay in cash the following real estate
commission for services rendered, which commission Seller hereby irrevocably
assigns to Broker(s) from escrow:

1.875% of the accepted price, or $                  , to the listing Broker:
Keegan & Coppin, and

1.875% of the accepted price, or $                  , to the selling Broker:
Meridian

without regard to the agency relationship. Escrow instructions with respect to
commissions may not be amended or revoked without the written consent of the
Broker(s).

        If Seller receives liquidated or other damages upon default by Buyer,
Seller agrees to pay Broker(s) the lesser of the amount provided for above or
one half of the damages after deducting any costs of collection, including
reasonable attorney fees.

        Commission will also be payable upon any default by Seller, or the
mutual rescission by Buyer and Seller without the written consent of the
Broker(s), which prevents completion of the purchase. This Agreement will not
limit the rights of Broker and Seller provided for in any existing listing
agreement.

        In any action for commission the prevailing party will be entitled to
reasonable attorney fees whether or not the action is brought to trial or final
judgment.

37.   PROVISIONS TO BE INITIALED. The following items must be "agreed to" by
both parties to be binding on either party. In the event of disagreement, Seller
should make a counter offer.

Item 23. LIQUIDATED DAMAGES Item 25. MEDIATION OF DISPUTES Item 26. ARBITRATION
OF DISPUTES.

Seller acknowledges receipt of a copy of this Agreement. Authorization is given
to the Broker(s) in this transaction to deliver a signed copy to Buyer and to
disclose the terms of purchase to members of a Multiple Listing Service, Board
of Association of REALTORS® at close of escrow.

38.   IF CHECKED ý ACCEPTANCE IS SUBJECT TO ATTACHED COUNTER OFFER DATED
November 13, 2001

Seller       

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ADDENDUM NO. 2

To Agreement dated November 13, 2001 between Ten Fold Corporation and Delaware
Corp., Seller, and San Francisco Development, a California Corp., Buyer,
concerning property located at 171 and 181 Carlos Drive, San Rafael, CA.

        The parties agree as follows:

        Buyer hereby removes its contingencies to the agreement and further
removes conditions of the purchase as defined in the attached "Removal of
Conditions" and agrees to close subject to the following additional conditions.

        Purchase Price to be $2,100,000.00.*

*The parties subsequently agreed to reduce the purchase price to $1.9 million.

        Buyer to add $595,000.00 into escrow within 24 hours of acceptance of
this Addendum to Purchase Agreement.

        Buyer assigns its interest in this Purchase Agreement to Thomas J.
Holden et al.

        A condition precedent to this agreement and to Buyer's willingness to
close escrow is the commitment of the Seller or the Seller's Lender to
carry-back a note in the amount of $1,500,000.00. The close shall be as soon as
the title company can record the deed and prepare all other necessary documents
for the close. If such note is not made then the agreement is null and void and
neither party shall have any liability to the other hereunder and all deposits
made by Buyer shall be returned to Buyer without offset or charge. The terms of
such note shall include the following:

Terms:   Due within six months of the close of escrow, Buyer may prepay the loan
at any time with no prepayment penalty. Interest Rate:   8% annual interest
rate. Payments:   Interest only at approximately $10,000.00 per month.

        Seller shall be responsible to directly credit TWM Architects for the
month's free rent as defined in the Lease and Addendum to Lease. Seller shall be
entitled to collect any outstanding monies owed by TWM Architects as of the Date
of Close. All other rights and obligations defined in the lease and any
extensions shall be the responsibility of the Buyer as of the close date.

This Addendum, upon its execution by both parties, is made a part of the above
Agreement.

If checked ý this Addendum is of no force or effect unless executed by all
parties and delivered prior to (date) December 19, 2001 (time) 5:00 o a.m. ý
p.m., to Ten Fold Corporation (Name of Party).

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QuickLinks

STANDARD COMMERCIAL/INVESTMENT PURCHASE AGREEMENT (Non-Residential or More Than
Four Residential Units)
DEFINITIONS
ACCEPTANCE
ADDENDUM NO. 2