Document:

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                                                                   Exhibit 10.03

                                  DOVEBID, INC.

                           2002 EQUITY INCENTIVE PLAN

                            As Adopted June 10, 2002

     1. PURPOSE. The purpose of this Plan is to provide incentives to attract,
retain and motivate eligible persons whose present and potential contributions
are important to the success of DoveBid, Inc., a Delaware corporation (the
"Company"), and its Subsidiaries, by offering them an opportunity to participate
in the Company's future performance through awards of Options, Restricted Stock
Awards and Stock Bonuses. Capitalized terms not defined in the text are defined
in Section 24.

     2. SHARES SUBJECT TO THE PLAN.

        2.1 Number of Shares Available. Subject to Sections 2.2 and 18, the
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be 1,500,000 Shares plus any Shares that are subject to: (a)
issuance upon exercise of an Option but cease to be subject to such Option for
any reason other than exercise of such Option; (b) an Award granted hereunder
but are forfeited or are repurchased by the Company at the original issue price;
and (c) an Award that otherwise terminates without Shares being issued. In
addition, any authorized shares not issued or subject to outstanding grants
under the Company's 1999 Stock Option Plan (the "Prior Plan") on the Effective
Date (as defined in Section 19 below) and any shares issued under the Prior Plan
that are forfeited or repurchased by the Company or that are issuable upon
exercise of options granted pursuant to the Prior Plan that expire or become
unexercisable for any reason without having been exercised in full, will no
longer be available for grant and issuance under the Prior Plan, but will be
available for grant and issuance under this Plan. At all times the Company shall
reserve and keep available a sufficient number of Shares as shall be required to
satisfy the requirements of all outstanding Options granted under this Plan and
all other outstanding but unvested Awards granted under this Plan.

        2.2 Adjustment of Shares. In the event that the number or type of
outstanding shares of the Company's Common Stock is changed by a stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination,
reclassification or similar change in the capital structure of the Company
without consideration, then (a) the number or type of Shares reserved for
issuance under this Plan, (b) the number or type of Shares that may be granted
pursuant to Sections 3 and 9 below, (c) the Exercise Prices of and number or
type of Shares subject to outstanding Options, and (d) the number or type of
Shares subject to other outstanding Awards may, upon approval of the Board in
its discretion, be proportionately and appropriately adjusted to reflect such
change in the capital structure; provided, however, that fractions of a Share
will not be issued but will either be replaced by a cash payment equal to the
Fair Market Value of such fraction of a Share or will be rounded up to the
nearest whole Share, as determined by the Board.

     3. ELIGIBILITY. ISOs (as defined in Section 5 below) may be granted only to
employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company. All other Awards may be
granted to employees, officers, directors, consultants, independent contractors
and advisors of the Company or any Parent or Subsidiary of the Company; provided
such consultants, independent contractors and advisors render bona fide services
not in connection with the offer and sale of securities in a capital-raising
transaction. No person will be eligible to receive more than 500,000 Shares in
any calendar year under this Plan pursuant to the grant of Awards hereunder. A
person may be granted more than one Award under this Plan.

     4. ADMINISTRATION.

        4.1 Committee Authority. This Plan will be administered by the
Committee or by the Board acting as the Committee. Except for automatic grants
to Outside Directors pursuant to Section 9 hereof, and subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have

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                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

full power to implement and carry out this Plan. Except for automatic grants to
Outside Directors pursuant to Section 9 hereof, the Committee will have the
authority to:

            (a)     construe and interpret this Plan, any Award Agreement and
                    any other agreement or document executed pursuant to this
                    Plan;

            (b)     prescribe, amend and rescind rules and regulations relating
                    to this Plan or any Award;

            (c)     select persons to receive Awards;

            (d)     determine the form and terms of Awards;

            (e)     determine the number of Shares or other consideration
                    subject to Awards;

            (f)     determine whether Awards will be granted singly, in
                    combination with, in tandem with, in replacement of, or as
                    alternatives to, other Awards under this Plan or any other
                    incentive or compensation plan of the Company or any Parent
                    or Subsidiary of the Company;

            (g)     grant waivers of Plan or Award conditions;

            (h)     determine the vesting, exercisability and payment of Awards;

            (i)     correct any defect, supply any omission or reconcile any
                    inconsistency in this Plan, any Award or any Award
                    Agreement;

            (j)     determine whether an Award has been earned; and

            (k)     make all other determinations necessary or advisable for the
                    administration of this Plan.

            4.2     Committee Discretion. Except for automatic grants to Outside
Directors pursuant to Section 9 hereof, any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or the Award, at any later time, and such determination will be final and
binding on the Company and on all persons having an interest in any Award under
this Plan. The Committee may delegate to one or more officers of the Company the
authority to grant an Award under this Plan to Participants who are not Insiders
of the Company.

     5.     OPTIONS. The Committee may grant Options to eligible persons and
will determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISOs") or Nonqualified Stock Options ("NQSOs"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

            5.1 Form of Option Grant. Each Option granted under this Plan
will be evidenced by an Award Agreement which will expressly identify the Option
as an ISO or an NQSO ("Stock Option Agreement"), and, except as otherwise
required by the terms of Section 9 hereof, will be in such form and contain such
provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

            5.2 Date of Grant. The date of grant of an Option will be the date
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

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            5.3   Exercise Period. Options may be exercisable within the times
or upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company ("Ten Percent Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted. The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

            5.4   Exercise Price. The Exercise Price of an Option will be
determined by the Committee when the Option is granted; provided that: (i) the
Exercise Price of an ISO will be not less than 100% of the Fair Market Value of
the Shares on the date of grant; and (ii) the Exercise Price of any ISO granted
to a Ten Percent Stockholder will not be less than 110% of the Fair Market Value
of the Shares on the date of grant. Payment for the Shares purchased may be made
in accordance with Section 8.

            5.5   Method of Exercise. Options may be exercised only by delivery
to the Company of a written stock option exercise agreement (the "Exercise
Agreement") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding the Participant's
investment intent and access to information and other matters, if any, as may be
required by or desirable to the Company to comply with applicable securities
laws, together with payment in full of the Exercise Price for the number of
Shares being purchased.

            5.6   Termination.  Notwithstanding the exercise periods set forth
in the Stock Option Agreement, the exercise of an Option will always be subject
to the following:

            (a)   If the Participant is Terminated for any reason except the
                  Participant's death or Disability, then the Participant may
                  exercise such Participant's Options only to the extent that
                  such Options would have been exercisable by the Participant on
                  the Termination Date no later than three (3) months after the
                  Termination Date (or such shorter or longer time period not
                  exceeding five (5) years as may be determined by the
                  Committee, with any exercise beyond three (3) months after the
                  Termination Date deemed to be an NQSO), but in any event no
                  later than the expiration date of the Options.

            (b)   If the Participant is Terminated because of Participant's
                  death or Disability (or the Participant dies within three (3)
                  months after a Termination other than for Cause or because of
                  the Participant's Disability), then the Participant's Options
                  may be exercised only to the extent that such Options would
                  have been exercisable by the Participant on the Termination
                  Date and must be exercised by the Participant (or the
                  Participant's legal representative or authorized assignee) no
                  later than twelve (12) months after the Termination Date (or
                  such shorter or longer time period not exceeding five (5)
                  years as may be determined by the Committee, with any exercise
                  beyond (a) three (3) months after the Termination Date when
                  the Termination is for any reason other than the Participant's
                  death or Disability, or (b) twelve (12) months after the
                  Termination Date when the Termination is for the Participant's
                  death or Disability, deemed to be an NQSO), but in any event
                  no later than the expiration date of the Options.

            (c)   If the Participant is terminated for Cause, then Participant's
                  Options shall expire on such Participant's Termination Date,
                  or at such later time and on such conditions as are determined
                  by the Committee.

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                                                                   DoveBid, Inc.
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            5.7   Limitations on Exercise. The Committee may specify a
reasonable minimum number of Shares that may be purchased on any exercise of an
Option, provided that such minimum number will not prevent any Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

            5.8   Limitations on ISOs. The aggregate Fair Market Value
(determined as of the date of grant) of Shares with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year (under
this Plan or under any other incentive stock option plan of the Company or any
Parent or Subsidiary of the Company) will not exceed $100,000. If the Fair
Market Value of Shares on the date of grant with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year exceeds
$100,000, then the Options for the first $100,000 worth of Shares to become
exercisable in such calendar year will be ISOs and the Options for the amount in
excess of $100,000 that become exercisable in such calendar year will be NQSOs.
In the event that the Code or the regulations promulgated thereunder are amended
after the Effective Date to provide for a different limit on the Fair Market
Value of Shares permitted to be subject to ISOs, such different limit will be
automatically incorporated herein and will apply to any Options granted after
the effective date of such amendment.

            5.9   Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.4 for Options granted on
the date the action is taken to reduce the Exercise Price.

            5.10  No Disqualification. Notwithstanding any other provision in
this Plan, no term of this Plan relating to ISOs will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

     6.     RESTRICTED STOCK. A Restricted Stock Award is an offer by the
Company to sell to an eligible person Shares that are subject to restrictions.
The Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

            6.1   Form of Restricted Stock Award. All purchases under a
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("Restricted Stock Purchase Agreement") that will be in such form and
contain such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan. The offer of Restricted Stock Awards will
be accepted by the Participant's execution and delivery of the Restricted Stock
Purchase Agreement and full payment for the Shares to the Company within thirty
(30) days from the date the Restricted Stock Purchase Agreement is delivered to
the person. If such person does not execute and deliver the Restricted Stock
Purchase Agreement along with full payment for the Shares to the Company within
thirty (30) days, then the offer will terminate, unless otherwise determined by
the Committee.

            6.2   Purchase Price. The Purchase Price will be determined by the
Committee on the date the Restricted Stock Award is granted. Payment of the
Purchase Price may be made in accordance with Section 8.

            6.3   Terms of Restricted Stock Awards. Restricted Stock Awards
shall be subject to such restrictions as the Committee may impose. These
restrictions may be based upon completion of a specified number of years of
service with the Company or upon completion of the performance goals as set out
in advance in the Participant's individual Restricted Stock Purchase Agreement.
Restricted Stock Awards may vary from Participant to Participant and between
groups of Participants. Prior to the grant of a Restricted Stock Award, the
Committee shall: (a) determine the nature, length and starting date of any
Performance Period for the Restricted Stock Award;

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                                                      2002 Equity Incentive Plan

(b) select from among the Performance Factors to be used to measure performance
goals, if any; and (c) determine the number of Shares that may be awarded to the
Participant. Prior to the payment of any Restricted Stock Award, the Committee
shall determine the extent to which such Restricted Stock Award has been earned.
Performance Periods may overlap and Participants may participate simultaneously
with respect to Restricted Stock Awards that are subject to different
Performance Periods and having different performance goals and other criteria.

            6.4   Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee determines otherwise.

     7.     STOCK BONUSES.

            7.1   Awards of Stock Bonuses. A Stock Bonus is an award of Shares
(which may consist of restricted stock) for services rendered to the Company or
any Parent or Subsidiary of the Company. A Stock Bonus may be awarded for past
services already rendered to the Company and contain such provisions, or any
Parent or Subsidiary of the Company pursuant to an Award Agreement (the "Stock
Bonus Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee may from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. A Stock Bonus may
be awarded upon satisfaction of such performance goals as are set out in advance
in the Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine.

            7.2   Terms of Stock Bonuses. The Committee will determine the
number of Shares to be awarded to the Participant. If the Stock Bonus is being
earned upon the satisfaction of performance goals pursuant to a Performance
Stock Bonus Agreement, then the Committee will: (a) determine the nature, length
and starting date of any Performance Period for the Stock Bonus; (b) select from
among the Performance Factors to be used to measure performance goals, if any;
and (c) determine the number of Shares that may be awarded to the Participant.
Prior to the payment of any Stock Bonus, the Committee shall determine the
extent to which such Stock Bonus has been earned. Performance Periods may
overlap and Participants may participate simultaneously with respect to Stock
Bonus that are subject to different Performance Periods and different
performance goals and other criteria. The number of Shares may be fixed or may
vary in accordance with such performance goals and criteria as may be determined
by the Committee. The Committee may adjust the performance goals applicable to
the Stock Bonuses to take into account changes in law and accounting or tax
rules and to make such adjustments as the Committee deems necessary or
appropriate to reflect the impact of extraordinary or unusual items, events or
circumstances to avoid windfalls or hardships.

            7.3   Form of Payment. The earned portion of a Stock Bonus may be
paid currently or on a deferred basis with such interest or dividend equivalent,
if any, as the Committee may determine. Payment may be made in the form of cash
or whole Shares or a combination thereof, either in a lump sum payment or in
installments, all as the Committee will determine.

     8.     PAYMENT FOR SHARE PURCHASES.

            8.1   Payment. Payment for Shares purchased pursuant to this Plan
may be made in cash (by check) or, where expressly approved for the Participant
by the Committee and where permitted by law:

            (a)   by cancellation of indebtedness of the Company to the
                  Participant;

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                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

            (b)   by surrender of shares that either: (1) have been owned by the
                  Participant for more than six (6) months and have been paid
                  for within the meaning of SEC Rule 144 (and, if such shares
                  were purchased from the Company by use of a promissory note,
                  such note has been fully paid with respect to such shares); or
                  (2) were obtained by the Participant in the public market;

            (c)   by tender of a full recourse promissory note having such terms
                  as may be approved by the Committee and bearing interest at a
                  rate sufficient to avoid (i) imputation of income under
                  Sections 483 and 1274 of the Code and (ii) variable accounting
                  treatment under Financial Accounting Standards Board
                  Interpretation No. 44 to APB No. 25; provided, however, that
                  Participants who are not employees or directors of the Company
                  will not be entitled to purchase Shares with a promissory note
                  unless the note is adequately secured by collateral other than
                  the Shares; provided, further, that the portion of the
                  Exercise Price or Purchase Price, as the case may be, equal to
                  the par value of the Shares must be paid in cash or other
                  legal consideration permitted by the Delaware General
                  Corporation Law;

            (d)   by waiver of compensation due or accrued to the Participant
                  for services rendered to the Company or a Parent or Subsidiary
                  of the Company;

            (e)   with respect only to purchases upon exercise of an Option, and
                  provided that a public market for the Company's Common Stock
                  exists:

                  (1)   through a "same day sale" commitment from the
                        Participant and a broker-dealer that is a member of the
                        National Association of Securities Dealers (an "NASD
                        Dealer") whereby the Participant irrevocably elects to
                        exercise the Option and to sell a portion of the Shares
                        so purchased to pay for the Exercise Price, and whereby
                        the NASD Dealer irrevocably commits upon receipt of such
                        Shares to forward the Exercise Price directly to the
                        Company; or

                  (2)   through a "margin" commitment from the Participant and
                        an NASD Dealer whereby the Participant irrevocably
                        elects to exercise the Option and to pledge the Shares
                        so purchased to the NASD Dealer in a margin account as
                        security for a loan from the NASD Dealer in the amount
                        of the Exercise Price, and whereby the NASD Dealer
                        irrevocably commits upon receipt of such Shares to
                        forward the Exercise Price directly to the Company; or

            (f)   by any combination of the foregoing.

            8.2   Loan Guarantees. The Committee may help the Participant pay
for Shares purchased under this Plan by authorizing a guarantee by the Company
of a third-party loan to the Participant.

     9.     AUTOMATIC GRANTS TO OUTSIDE DIRECTORS.

            9.1   Types of Options and Shares. Options granted under this Plan
and subject to this Section 9 shall be NQSOs.

            9.2   Eligibility. Options subject to this Section 9 shall be
granted only to Outside Directors.

            9.3   Initial Grant. Each Outside Director who first becomes a
member of the Board on or after the Effective Date will automatically be granted
an option for 15,000 Shares (an "Initial Grant") on the date such Outside
Director first becomes a member of the Board, unless such Outside Director
received a grant of options before the Effective Date.

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                                                                   DoveBid, Inc.
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            9.4   Succeeding Grant. Immediately following each Annual Meeting of
the Company's stockholders, each Outside Director will automatically be granted
an option for 5,000 Shares (a "Succeeding Grant"), provided, that the Outside
Director is a member of the Board on such date and has served continuously as a
member of the Board for a period of at least twelve (12) months since the
Initial Grant to such Outside Director. If less than twelve (12) months has
passed since the Initial Grant to such Outside Director, then the number of
shares subject to the Succeeding Grant will be pro-rated based on the number of
days passed since the Initial Grant to such Outside Director, divided by 365
days.

            9.5   Vesting. The date an Outside Director receives an Initial
Grant or a Succeeding Grant is referred to in this Plan as the "Start Date" for
such option.

            (a)   Initial Grant. Each Initial Grant will vest as to 1/36 of the
                  Shares each month after the Start Date for such Initial Grant,
                  so long as the Outside Director continuously remains a
                  director or a consultant of the Company.

            (b)   Succeeding Grant. Each Succeeding Grant will vest as to 1/12
                  of the Shares each month after the Start Date for such
                  Succeeding Grant, so long as the Outside Director continuously
                  remains a director or a consultant of the Company.

Notwithstanding any provision to the contrary, in the event of a Corporate
Transaction (as defined in Section 18.1), the vesting of all options granted to
Outside Directors pursuant to this Section 9 will accelerate and such options
will become exercisable in full immediately prior to the consummation of such
event at such times and on such conditions as the Committee determines and must
be exercised, if at all, within three (3) months of the consummation of said
event. Any options not exercised within such three-month period shall expire.

            9.6   Exercise Price and Exercisability. The exercise price of an
option pursuant to an Initial Grant or a Succeeding Grant shall be the Fair
Market Value of the Shares at the time that such option is granted. Initial
Grants and Succeeding Grants shall be immediately exercisable although the
Shares issued upon exercise of an option will be subject to the restrictions on
transfer and the Company may reserve to itself and/or its assignee(s) in the
Award Agreement a right to repurchase a portion of or all Unvested Shares held
by an Outside Director following such Outside Director's termination as a
director or a consultant of the Company.

     10.    WITHHOLDING TAXES.

            10.1  Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

            10.2  Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined. All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee and be in writing in a form acceptable to the
Committee.

     11.    TRANSFERABILITY.

            11.1  Except as otherwise provided in this Section 11, Awards
granted under this Plan, and any interest therein, will not be transferable or
assignable by any Participant, and may not be made subject to execution,

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                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

attachment or similar process, otherwise than by will or by the laws of descent
and distribution or as determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs.

            11.2  All Awards other than NQSOs. All Awards other than NQSOs shall
be exercisable: (i) during the Participant's lifetime only by (A) the
Participant, or (B) the Participant's guardian or legal representative; and (ii)
after the Participant's death, by the legal representative of the Participant's
heirs or legatees.

            11.3  NQSOs. Unless otherwise restricted by the Committee, an NQSO
shall be exercisable: (i) during the Participant's lifetime only by (A) the
Participant, (B) the Participant's guardian or legal representative, (C) a
Family Member of the Participant who has acquired the NQSO by "permitted
transfer;" and (ii) after the Participant's death, by the legal representative
of the Participant's heirs or legatees. "Permitted transfer" means, as
authorized by this Plan and the Committee in an NQSO, any transfer effected by
the Participant during the Participant's lifetime of an interest in such NQSO
but only such transfers which are by gift or domestic relations order. A
permitted transfer does not include any transfer for value and neither of the
following are transfers for value: (a) a transfer under a domestic relations
order in settlement of marital property rights or (b) a transfer to an entity in
which more than fifty percent of the voting interests are owned by Family
Members or the Participant in exchange for an interest in that entity.

     12.    PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.

            12.1  Voting and Dividends. No Participant will have any of the
rights of a stockholder with respect to any Shares until the Shares are issued
to the Participant. After Shares are issued to the Participant, the Participant
will be a stockholder and have all the rights of a stockholder with respect to
such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are restricted stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
restricted stock; provided, further, that the Participant will have no right to
retain such stock dividends or stock distributions with respect to Shares that
are repurchased at the Participant's Purchase Price or Exercise Price pursuant
to Section 12.2.

            12.2  Restrictions on Shares. At the discretion of the Committee,
the Company may reserve to itself and/or its assignee(s) in the Award Agreement
a right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of the Participant's Termination Date and the date the
Participant purchases Shares under this Plan, for cash and/or cancellation of
purchase money indebtedness, at the Participant's Exercise Price or Purchase
Price, as the case may be.

     13.    CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

     14.    ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates. Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of the Participant's obligation to
the Company under the promissory note; provided, however, that the Committee may
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory

                                       8

<PAGE>

                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

note notwithstanding any pledge of the Participant's Shares or other collateral.
In connection with any pledge of the Shares, the Participant will be required to
execute and deliver a written pledge agreement in such form as the Committee
will from time to time approve. The Shares purchased with the promissory note
may be released from the pledge on a pro rata basis as the promissory note is
paid.

     15.    EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
restricted stock) or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

     16.    SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not
be effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other provision in this Plan, the Company will have no obligation to issue
or deliver certificates for Shares under this Plan prior to: (a) obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable; and/or (b) completion of any registration or other qualification
of such Shares under any state or federal law or ruling of any governmental body
that the Company determines to be necessary or advisable. The Company will be
under no obligation to register the Shares with the SEC or to effect compliance
with the registration, qualification or listing requirements of any state
securities laws, stock exchange or automated quotation system, and the Company
will have no liability for any inability or failure to do so.

     17.    NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

     18.    CORPORATE TRANSACTIONS.

            18.1  Assumption or Replacement of Awards by Successor. Except for
automatic grants to Outside Directors pursuant to Section 9 hereof, in the event
of (a) a dissolution or liquidation of the Company, (b) a merger or
consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of
the Company in a different jurisdiction, or other transaction in which there is
no substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption, conversion or
replacement will be binding on all Participants), (c) a merger in which the
Company is the surviving corporation but after which the stockholders of the
Company immediately prior to such merger (other than any stockholder that
merges, or which owns or controls another corporation that merges, with the
Company in such merger) cease to own their shares or other equity interest in
the Company, (d) the sale of substantially all of the assets of the Company, or
(e) the acquisition, sale, or transfer of more than 50% of the outstanding
shares of the Company by tender offer or similar transaction (each, a "Corporate
Transaction"), any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants. In the alternative, the
successor or acquiring corporation may substitute equivalent Awards or provide
substantially similar consideration to Participants as was provided to
stockholders (after taking into account the existing provisions of the Awards).
The successor corporation may also issue, in place of outstanding Shares of the
Company held by the Participants, substantially similar shares or other property
subject to repurchase restrictions no less favorable to the Participant. In the
event such successor corporation (if any) refuses to assume or substitute
Awards, as provided above, pursuant to a Corporate Transaction described in this
Subsection 18.1, such Awards will expire on such Corporate Transaction at such
time and on such conditions as the Committee will determine. Notwithstanding
anything in this Plan to the contrary, the Committee

                                       9

<PAGE>

                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

may, in its sole discretion, provide that the vesting of any or all Awards
granted pursuant to this Plan will accelerate upon a Corporate Transaction
described in this Section 18.1. If the Committee exercises such discretion with
respect to Options, such Options will become exercisable in full prior to the
consummation of such event at such time and on such conditions as the Committee
determines, and if such Options are not exercised prior to the consummation of
the Corporate Transaction, they shall terminate at such time as determined by
the Committee.

            18.2  Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 18, in
the event of the occurrence of any Corporate Transaction described in Section
18.1, any outstanding Awards will be treated as provided in the applicable
agreement or plan of merger, consolidation, dissolution, liquidation, or sale of
assets.

            18.3  Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either; (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

     19.    ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become effective
on the date on which the registration statement filed by the Company with the
SEC under the Securities Act registering the initial public offering of the
Company's Common Stock is declared effective by the SEC (the "Effective Date").
This Plan shall be approved by the stockholders of the Company (excluding Shares
issued pursuant to this Plan), consistent with applicable laws, within twelve
(12) months before or after the date this Plan is adopted by the Board. Upon the
Effective Date, the Committee may grant Awards pursuant to this Plan; provided,
however, that: (a) no Option may be exercised prior to initial stockholder
approval of this Plan; (b) no Option granted pursuant to an increase in the
number of Shares subject to this Plan approved by the Board will be exercised
prior to the time such increase has been approved by the stockholders of the
Company; (c) in the event that initial stockholder approval is not obtained
within the time period provided herein, all Awards granted hereunder shall be
cancelled, any Shares issued pursuant to any Awards shall be cancelled, and any
purchase of Shares issued hereunder shall be rescinded; and (d) in the event
that stockholder approval of such increase shall not be obtained within the time
period provided herein, all Awards granted pursuant to such increase shall be
cancelled, any Shares issued pursuant to any Awards granted pursuant to such
increase will be cancelled, and any purchase of Shares pursuant to such increase
shall be rescinded.

     20.    TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate ten (10) years from the date this Plan is
adopted by the Board or, if earlier, the date of stockholder approval. This Plan
and all agreements thereunder shall be governed by and construed in accordance
with the laws of the State of California.

     21.    AMENDMENT OR TERMINATION OF PLAN. The Board may at any time
terminate or amend this Plan in any respect, including, without limitation,
amendment of any form of Award Agreement or instrument to be executed pursuant
to this Plan; provided, however, that the Board will not, without the approval
of the stockholders of the Company, amend this Plan in any manner that requires
such stockholder approval.

     22.    NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by
the Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements

                                       10

<PAGE>

                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

as it may deem desirable, including, without limitation, the granting of stock
options and bonuses otherwise than under this Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.

     23.    INSIDER TRADING POLICY. Each Participant and Outside Director who
receives an Award shall comply with any policy adopted by the Company from time
to time covering transactions in the Company's securities by employees, officers
and/or directors of the Company.

     24.    DEFINITIONS.  As used in this Plan, the following terms will have
the following meanings:

            "Award" means any award under this Plan, including any Option,
Restricted Stock Award or Stock Bonus.

            "Award Agreement" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

            "Board" means the Board of Directors of the Company.

            "Cause" means (a) the commission of an act of theft, embezzlement,
fraud, dishonesty, (b) a breach of fiduciary duty to the Company or a Parent or
Subsidiary of the Company, or (c) a failure to materially perform the customary
duties of employee's employment.

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Committee" means the Compensation Committee of the Board.

            "Company" means DoveBid, Inc., a Delaware corporation, or any
successor corporation.

            "Disability" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            "Exercise Price" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

            "Fair Market Value" means, as of any date, the value of a share of
the Company's Common Stock determined as follows:

            (a)   if such Common Stock is then quoted on the Nasdaq National
                  Market, its closing price on the Nasdaq National Market on the
                  last trading day prior to the date of determination as
                  reported in The Wall Street Journal;

            (b)   if such Common Stock is publicly traded and is then listed on
                  a national securities exchange, its closing price on the last
                  trading day prior to the date of determination on the
                  principal national securities exchange on which the Common
                  Stock is listed or admitted to trading as reported in The Wall
                  Street Journal;

            (c)   if such Common Stock is publicly traded but is not quoted on
                  the Nasdaq National Market nor listed or admitted to trading
                  on a national securities exchange, the average of the closing
                  bid and asked prices on the last trading day prior to the date
                  of determination as reported in The Wall Street Journal;

                                       11

<PAGE>

                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

            (d)   in the case of an Award made on the Effective Date, the price
                  per share at which shares of the Company's Common Stock are
                  initially offered for sale to the public by the Company's
                  underwriters in the initial public offering of the Company's
                  Common Stock pursuant to a registration statement filed with
                  the SEC under the Securities Act; or

            (e)   if none of the foregoing is applicable, by the Committee in
                  good faith.

            "Family Member" includes any of the following:

            (a)   child, stepchild, grandchild, parent, stepparent, grandparent,
                  spouse, former spouse, sibling, niece, nephew, mother-in-law,
                  father-in-law, son-in-law, daughter-in-law, brother-in-law, or
                  sister-in-law of the Participant, including any such person
                  with such relationship to the Participant by adoption;

            (b)   any person (other than a tenant or employee) sharing the
                  Participant's household;

            (c)   a trust in which the persons in (a) and (b) have more than
                  fifty percent of the beneficial interest;

            (d)   a foundation in which the persons in (a) and (b) or the
                  Participant control the management of assets; or

            (e)   any other entity in which the persons in (a) and (b) or the
                  Participant own more than fifty percent of the voting
                  interest.

            "Insider" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

            "Option" means an award of an option to purchase Shares pursuant to
Section 5.

            "Outside Director" means a member of the Board who is not an
employee of the Company or any Parent or Subsidiary of the Company.

            "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

            "Participant" means a person who receives an Award under this Plan.

            "Performance Factors" means the factors selected by the Committee
from among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

            (a)   Net revenue and/or net revenue growth;

            (b)   Earnings before income taxes and amortization and/or growth in
                  earnings before income taxes and amortization;

            (c)   Operating income and/or operating income growth;

            (d)   Net income and/or net income growth;

            (e)   Earnings per share and/or earnings per share growth;

                                       12

<PAGE>

                                                                   DoveBid, Inc.
                                                      2002 Equity Incentive Plan

            (f)   Total stockholder return and/or total stockholder return
                  growth;

            (g)   Return on equity;

            (h)   Operating cash flow return on income;

            (i)   Adjusted operating cash flow return on income;

            (j)   Economic value added; and

            (k)   Individual business objectives.

            "Performance Period" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

            "Plan" means this DoveBid, Inc. 2002 Equity Incentive Plan, as
amended from time to time.

            "Restricted Stock Award" means an award of Shares pursuant to
Section 6.

            "SEC" means the Securities and Exchange Commission.

            "Securities Act" means the Securities Act of 1933, as amended.

            "Shares" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 18, and any
successor security.

            "Stock Bonus" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

            "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

            "Termination" or "Terminated" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of absence
approved by the Committee; provided, that such leave is for a period of not more
than 90 days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute or unless provided otherwise pursuant to
formal policy adopted from time to time by the Company and issued and
promulgated to employees in writing. In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting suspension
of vesting of the Award while on leave from the employ of the Company or a
Parent or Subsidiary of the Company as it may deem appropriate, except that in
no event may an Option be exercised after the expiration of the term set forth
in the Stock Option Agreement. The Committee will have sole discretion to
determine whether a Participant has ceased to provide services and the effective
date on which the Participant ceased to provide services (the "Termination
Date").

            "Unvested Shares" means "Unvested Shares" as defined in the Award
Agreement.

            "Vested Shares" means "Vested Shares" as defined in the Award
Agreement.

                                       13<PAGE>

                                                                   Exhibit 10.53

                               DOVE PARTNERS, INC.

                   SERIES A PREFERRED STOCK PURCHASE AGREEMENT

                                  June 4, 1999

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                             Page
<S>                                                                                          <C>
1.   Formation of Holdings .................................................................   1

     1.1      Certificate of Incorporation .................................................   1

     1.2      Purchase and Sale of Common Stock ............................................   2

     1.3      Purchase and Sale of Initial Shares of Series A Preferred Stock ..............   2

     1.4      Purchase and Sale of Additional Shares of Series A Preferred Stock ...........   2

     1.5      Tax-Free Formation ...........................................................   3

     1.6      Use of Proceeds ..............................................................   3

2.   Representations and Warranties of the Company .........................................   3

     2.1      Organization, Good Standing and Qualification ................................   4

     2.2      Capitalization and Voting Rights .............................................   4

     2.3      Subsidiaries .................................................................   4

     2.4      Authorization ................................................................   5

     2.5      Governmental Consents ........................................................   5

     2.6      Customer Relations ...........................................................   5

     2.7      Litigation ...................................................................   5

     2.8      Patents and Trademarks .......................................................   6

     2.9      Compliance with Other Instruments ............................................   7

     2.10     Agreements Action ............................................................   7

     2.11     Related Party Transactions ...................................................   8

     2.12     Permits ......................................................................   9

     2.13     Environmental g do Safety Laws ...............................................   9

     2.14     Marketing Rights .............................................................   9

     2.15     Disclosure ...................................................................   9

     2.16     Registration Rights ..........................................................  10

     2.17     Financial Statements .........................................................  10

     2.18     Changes ......................................................................  10

     2.19     Organizational Documents .....................................................  11

     2.20     Title to Property and Assets .................................................  11

     2.21     Employee Benefit Plans .......................................................  12

     2.22     Tax Matters ..................................................................  12
</TABLE>

                                      -i-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                             Page
<S>                                                                                           <C>
     2.23   Insurance .......................................................................  13

     2.24   Books and Records ...............................................................  13

     2.25   Labor Agreements and Actions ....................................................  13

     2.26   Assumptions or Guaranties of Indebtedness of Other Persons ......................  13

     2.27   Member or Stockholder Agreements ................................................  14

     2.28   Year 2000 Readiness .............................................................  14

3.   Representations and Warranties of Holdings .............................................  14

     3.1    Organization, Good Standing and Qualification ...................................  14

     3.2    Capitalization and Voting Right .................................................  15

     3.3    Authorization ...................................................................  15

     3.4    Governmental Consents ...........................................................  15

     3.5    Litigation ......................................................................  15

     3.6    Registration Rights .............................................................  16

     3.7    Valid Issuance of Series A Preferred Stock and Holdings Common Stock ............  16

     3.8    Market Stand-Off Agreements .....................................................  16

4.   Representations and Warranties of the Contributing Members .............................  16

     4.1    Company Membership Interests ....................................................  17

     4.2    Binding Effect ..................................................................  17

     4.3    Purchase Entirely for Own Account ...............................................  17

     4.4    Disclosure of Information .......................................................  17

     4.5    Accredited Investor .............................................................  18

     4.6    Investment Experience ...........................................................  18

     4.7    Restricted Securities ...........................................................  18

     4.8    Further Limitations on Disposition ..............................................  18

     4.9    Legends .........................................................................  18

5.   Representations and Warranties of the Investors ........................................  19

     5.1    Binding Effect ..................................................................  19

     5.2    Purchase Entirely for Own Account ...............................................  19

     5.3    Disclosure of Information .......................................................  19

     5.4    Investment Experience ...........................................................  19
</TABLE>

                                      -ii-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                               Page
<S>                                                                           <C>
     5.5    Accredited Investor ..............................................  19

     5.6    Restricted Securities ............................................  20

     5.7    Further Limitations on Disposition ...............................  20

     5.8    Legends ..........................................................  20

     5.9    Risks ............................................................  21

     5.10   No Representations ...............................................  21

6.   California Commissioner of Corporations .................................  21

7.   Conditions to Initial Closing ...........................................  21

     7.1    Conditions to Investor's Obligations .............................  21

     7.2    Conditions to Contributing Members' and Holding Obligations ......  24

8.   Conditions to the Additional Shares Closing .............................  24

     8.1    Conditions to the Investors' Obligations .........................  24

     8.2    Conditions to Holdings' Obligations ..............................  25

9.   Miscellaneous ...........................................................  25

     9.1    Survival of Warranties ...........................................  25

     9.2    Successors and Assigns ...........................................  25

     9.3    Governing, Law ...................................................  26

     9.4    Titles and Subtitles .............................................  26

     9.5    Notices ..........................................................  26

     9.6    Finder's Fee .....................................................  26

     9.7    Expenses .........................................................  26

     9.8    Amendments and Wavers ............................................  27

     9.9    Severability .....................................................  27

     9.10   Aggregation of Stock .............................................  27

     9.11   Entire Agreement .................................................  27

     9.12   Counterparts .....................................................  27
</TABLE>

                                    SCHEDULES

1.3 .....................................................  Schedule of Investors

1.6 ..........................................................   Use of Proceeds

                                     -iii-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                            Page

<S>                                                          <C>
2 .......................................................... Disclosure Schedule
</TABLE>

                                    EXHIBITS

EXHIBIT A - Certificate of Incorporation
EXHIBIT B - Senior Operating Manager Job Description
EXHIBIT C - Investors' Rights Agreement
EXHIBIT D - Stockholders' Agreement
EXHIBIT E - Form of Counsel Opinion
EXHIBIT F - Form of National Loan Exchange Common Stock Purchase Agreement

                                      -iv-

<PAGE>

                  SERIES A, PREFERRED STOCK PURCHASE AGREEMENT

     THIS SERIES A PREFERRED STOCK PURCHASE AGREEMENT (this "Agreement") is made
as of the 4th day of June 1999, by and between Dove Partners, Inc., a Delaware
corporation ("Holdings"), Dove Brothers LLC, a California limited liability
company (the "Company") The Dove Holdings Corporation, a California corporation
("Dove Holdings") Ross Dove and Kirk Dove, as individuals, and Koll Management
Services, Inc., a Delaware corporation ("Koll") (each a "Contributing Member",
and, collectively, (the "Contributing Members") and the investors listed on
Schedule 1.3 hereto, each of which is referred to herein as an "Investor" and
collectively, the "Investors".

     WHEREAS, the Contributing Members own all of the outstanding membership
interests in the Company;

     WHEREAS, the Investors and the Contributing Members desire to organize and
capitalize Holdings and provide for its initial governance and other matters;

     WHEREAS, Holdings is a newly formed entity with no prior assets or
operations;

     WHEREAS, the Contributing Members desire to contribute all of the
membership interests in the Company to Holdings in exchange (the "Exchange") for
common stock of Holdings ("Holdings Common Stock") in a transaction intended to
qualify under Section 357 of the Internal Revenue Code of 1986,as amended (the
"Code");

     WHEREAS, Holdings, as of the date hereof, is authorized to issue up to
13,000,000 shares of Series A Preferred Stock (the "Series A Preferred Stock")
having the rights, preferences, privileges and restrictions set forth in
Holding's Certificate of Incorporation, a copy of which is attached hereto as
Exhibit A;

     WHEREAS, Holdings desires to issue and sell an aggregate of 12,090,909
shares of Series A Preferred Stock, subject to adjustment as provided herein, to
the Investors for an aggregate purchase price of $3,990,000 in two closings, the
Initial Closing (as defined in Section 1.3 hereof) and the Additional Shares
Closing (as defined in Section 1.4 hereof) pursuant to the terms and conditions
set forth herein;

     WHEREAS, the Investors desire to purchase from Holdings in the Initial
Closing the number of Initial Shares (as defined in Section 1.3 hereof) of
Series A Preferred Stock set forth opposite the name of the investor in Schedule
1.3 of this Agreement, and the Investors desire to purchase from Holdings in the
Additional Shares Closing the number of Additional Shares as specified in
Schedule 1.3;

              NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     1.   Formation of Holdings

          1.1  Certificate of Incorporation. The Certificate of Incorporation of
Holdings was filed with the Secretary of State of Delaware on June 4, 1999 (the
"Certificate of Incorporation"), a certified copy of which is attached hereto as
Exhibit A.

                                       1

<PAGE>

          1.2  Purchase and Sale of Common Stock.

               (a)  Purchase and Sale. Upon the terms and conditions of this
Agreement, at the Initial Closing, Holdings agrees to acquire and each of the
Contributing Members agrees to contribute all of the membership interests in the
Company (the "Company Membership Interests") owned by such Contributing Member
in exchange for the issuance and delivery (i) to Dove Holdings of 25,688,135
shares of Holdings Common Stock, (ii) to Ross Dove of 254,417 shares of Holdings
Common Stock, (iii) to Kirk Dove of 254,417 shares of Holdings Common Stock and
(iv) to Koll of 2,015,152 shares of Holdings Common Stock.

               (b)  Common Stock Payment and Delivery. At the Initial Closing,
Holdings shall deliver to each Contributing Member a certificate representing
the Holdings Common Stock which such Contributing Member is entitled to receive
against delivery to Holdings of the certificates or certificates of interests or
other instruments, if any, issued by the Company and evidencing the Company
Membership Interests owned by such Contributing Member.

          1.3  Purchase and Sale of Initial Shares of Series A Preferred Stock.

               (a)  Purchase and Sale. Upon the terms and conditions of this
Agreement, each Investor agrees, severally, to purchase at the Initial Closing,
and Holdings agrees to sell and issue to each such Investor at the Initial
Closing that number of shares of the Series A Preferred Stock set forth opposite
each such Investor's name on Schedule 1.3 hereto for the purchase price set
forth therein (the "Initial Shares").

               (b)  Initial Closing. The closing (the "Initial Closing") of the
purchase and sale of the Company Membership Interests and the Initial Shares
shall be held at the offices of. O'Melveny & Myers LLP, 275 Battery Street, 26th
Floor, San Francisco California, at 10:00 A.M., on June 14,1999, or at such
other time and place on or before June 30, 1999 as the parties agree (which time
and place are designated as the "Initial Closing Date").

               (c)  Initial Shares Closing Payment and Delivery. At the Initial
Closing, Holdings shall deliver to each Investor a certificate representing the
Initial Shares which such Investor is purchasing at the Initial Closing (as set
forth on Schedule 1.3) against delivery to Holdings by such Investor of a check
or wire transfer in the amount of the purchase price therefor payable to
Holdings' order.

          1.4  Purchase and Sale of Additional Shares of Series A Preferred
Stock.

               (a)  Triggering Event. Upon the occurrence of the Triggering
Event (as hereinafter defined), the Investors shall purchase from Holdings on
and as of the Additional Shares Closing Date (as defined in Section 1.4(c)
hereof) that number of additional shares of Series A Preferred Stock opposite
each such Investor's name on Schedule 1.3 hereto for the purchase price set
forth therein (the "Additional Shares"), upon the terms and conditions of this
Agreement. The "Triggering Event" shall be deemed to have occurred on the fifth
business day following the receipt by the Investors of notice from Holdings of
the hiring by Holdings of a person to fill the position of senior operating
manager of Holdings having the duties,

                                       2

<PAGE>

responsibilities and authority as described in Exhibit B (the "Senior Operating
Manager") who has been mutually agreed upon by the Investors and Ross Dove and
Kirk Dove.

               (b)  Purchase Regardless of Triggering Event. At any time during
that period from the Initial Closing Date through September 30 1999, any
Investor may in its discretion elect, regardless of the absence or occurrence of
the Triggering Event, to purchase the Additional Shares in accordance with the
terms and conditions hereof provided that each such Investor provides Holdings
and the other Investors written notice of its desire to purchase the Additional
Shares no later than September 15,1999(a "Notice of Exercise").

               (c)  Additional Shares Closing. The closing of the purchase and
sale of the Additional Shares hereunder (the "Additional Shares Closing") shall
be held at such time and place as the parties agree but in no event later than
the earlier of (i) fifteen(15) days after the Triggering Event or (ii) fifteen
(15) days after Holdings' receipt of a Notice of Exercise. The date on which the
Additional Shares Closing actually occurs is referred to herein as the
"Additional Shares Closing Date." If the Additional Shares Closing has not
occurred on or before September 30, 1999, then the parties obligations under
this Section 1.4 shall terminate and be of no further force or effect.

               (d)  Additional Shares Closing Payment and Delivery. At the
Additional Shares Closing, Holdings shall deliver to each Investor a certificate
representing the number of Additional Shares such Investor is purchasing from
Holdings, against delivery to Holdings by such Investor of a check or wire
transfer in the amount of the purchase price therefor payable to Holdings'
order.

          1.5  Tax-Free Formation. Each of the transactions involving the
Holdings Common Stock and the Series A Preferred Stock hereunder are intended to
be entered into as part of a single integrated plan intended to qualify under
Section 351 of the Code. The Exchange and the formation of Holdings are intended
to be tax-free transactions pursuant to Section 351 of the Code and
corresponding state and local laws.

          1.6  Use of Proceeds. The net proceeds (after payment of transaction
expenses) from the sale of the Initial Shares and the Additional Shares will be
used by Holdings as set forth on Schedule 1.6 hereto to develop an internet
auction business and shall not be used to repay existing indebtedness of the
Company audits subsidiaries or to invest in capital assets held for resale.
Pending utilization for the purposes set forth herein, Holding: shall invest the
net proceeds in short-term, interest-bearing government securities or
certificates of deposit or their equivalent issued by a bank or trust company
organized under the laws of the United States or any state thereof, having
capital, surplus and undivided profits aggregating at least $100,000,000.

     2.   Representations and Warranties of the Company. Except as set forth in
the applicable section of the disclosure schedule provided by the Company to the
Investors prior to the execution of this Agreement (the "Disclosure Schedule")
and attached hereto as Schedule 2, the Company hereby represents and warrants to
Holdings and each Investor as follows:

                                        3

<PAGE>

          2.1  Organization, Good Standing and Qualification. The Company is a
limited liability company duly organized, validly existing and in good standing
under the laws of its state of organization and has all requisite power and
authority under the laws of its state of organization, its Articles or
Certificate of Organization and Operating Agreement to carry on its business as
now conducted and as proposed to be conducted. The Company has only two
subsidiaries, Dovetech, Inc., a California corporation ("Dovetech") and National
Loan Exchange, Inc., a Delaware corporation ("National Loan Exchange")
(collectively, the "Subsidiaries"). Each Subsidiary is a corporation duly
organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has all requisite corporate power and
authority to conduct its business as now conducted and as proposed to be
conducted. The Contributing Members have delivered to Holdings (it being
understood that all items stated herein to have been delivered or provided to
Holdings have also been delivered or provided to the Investors) complete and
correct copies of the organizational documents of each of the Company and its
Subsidiaries. Each of the Company and its Subsidiaries is duly qualified to
transact business and is in good standing in each of the jurisdictions specified
in Section 2.1 of the Disclosure Schedule.

          2.2  Capitalization and Voting Rights.

               (a)  All of the outstanding Company Membership Interests (i) are
owned as of the date hereof and (ii) will be owned after giving effect to the
transactions set forth in Section 7(o) hereof by the Contributing Members in the
percentages set forth on Section 2.2 of the Disclosure Schedule. The outstanding
Company Membership Interests are all duly and validly authorized and issued,
fully paid and nonassessable and were issued in accordance with the registration
or qualification provisions of the Securities Act of 1933, as amended, and any
relevant state securities laws, or pursuant to valid exemptions therefrom.

               (b)  No options, warrants, rights (including conversion or
preemptive rights) or agreements are presently outstanding for the purchase or
acquisition from the Company of any Company Membership Interests. The Company is
not a party or subject to any agreement or understanding and, to the Company's
knowledge, there is no agreement or understanding between any persons and/or
entities, which affects or relates to the voting or giving of written consents
with respect to any security or by a director of the Company.

          2.3  Subsidiaries. As of the date hereof the Subsidiaries are the only
subsidiaries of the Company. Section 2.3 of the Disclosure Schedule is a
complete and correct list setting forth for each Subsidiary (a) the number of
shares of authorized capital stock of each class of its capital stock, and (b)
the number of issued and outstanding share of each class of its capital stock,
the names of the holders thereof and the number of shares held by each such
holder as of the date hereof and after giving effect to the transactions set
forth in Section 7(o) and 7(p) hereof. All of the issued and outstanding shares
of capital stock of each Subsidiary have been duly authorized and are validly
issued, fully paid and non-assessable. The Company owns of record and
beneficially 100% of the outstanding shares of capital stock of Dovetech and
66.6666% of the outstanding shares of capital stock of National Loan Exchange,
free and clear of all liens, encumbrances, adverse claims and interests of
others of any kind. There are no preemptive or similar rights on the part of any
holder of any class of securities of either Subsidiary, or options, warrants,
conversion or other rights, agreements, commitments of any

                                        4

<PAGE>

kind obligating either Subsidiary, contingently or otherwise to issue, sell or
otherwise cause to become outstanding any shares of its capital stock of any
class or securities convertible into or exchangeable for any such securities.
There are no voting trusts, proxies, or other agreements or understandings with
respect to the voting, dividend rights or disposition of any capital stock of
either Subsidiary. Neither the Company nor either Subsidiary controls directly
or indirectly or has any direct or indirect equity participation in any
corporation, partnership, trust or other entity other than the Company's
ownership of Subsidiaries.

          2.4  Authorization.

     The Company and its members and managers have all requisite power and
authority under the laws of its state of organization, its Articles or
Certificate of Organization and Operating Agreement necessary for the
authorization, execution and delivery of this Agreement and the other agreements
contemplated hereby to which it is a party and the performance of all of its
obligations hereunder and thereunder. This Agreement and the other agreements
contemplated hereby to which the Company is a party have been duly authorized,
executed and delivered by the Company, and constitute valid and legally binding
obligations of the Company, enforceable in accordance with their respective
terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement of creditors' rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief, or other
equitable remedies.

          2.5  Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, local or provincial governmental authority on
the part of the Company or Subsidiaries is required in connection with the
consummation of the transactions contemplated by this Agreement

          2.6  Customer Relations. Since December 31,1997, no significant
customer of the Company or Subsidiaries that has been a party to a master
national auction contract with the Company has terminated its relationship with
the Company or Subsidiaries or threatened to do so. Section 2.6 of the
Disclosure Schedule sets forth a complete and correct list of each such
termination and the reasons for such termination.

          2.7  Litigation. There is no action, suit, claim, dispute, proceeding
or investigation pending or, to the knowledge of the Company, currently
threatened writing or involving an amount in excess of $100,000 (whether or not
in writing) against the Company or Subsidiaries which questions the validity of
this Agreement or the right of the Company to enter into this Agreement; the
transactions contemplated hereby or thereby, or which could reasonably be
expected to result, either individually or in the aggregate, in any material
adverse changes in the assets, condition affairs or prospects of the Company and
its Subsidiaries taken as a whole, financially or otherwise, or any change in
the current equity ownership of the Company or Subsidiaries. The foregoing
includes, without limitation, actions pending or threatened in writing or
involving an amount in excess of $100,000 (whether or not in writing) involving
the prior employment of any of the Company or Subsidiaries' employees, their use
in connection with the Company or Subsidiaries' business of any information or
techniques allegedly proprietary to any of their former employers, or their
obligations under any agreements with prior employers. There is no action, suit,
claim, dispute, proceeding or investigation pending or,

                                        5

<PAGE>

to the knowledge of the Company, currently threatened against the Company by any
member of the Company, against any member of the Company by the Company on to
the Company's knowledge, between any of the members of the Company relating to
the Company. There is no action, suit, claim, dispute, proceeding or
investigation pending or currently threatened against either Subsidiary by any
stockholder of either Subsidiary, against any stockholder of either Subsidiary
by either Subsidiary or to the Company or either Subsidiary's knowledge, between
any of the stockholders of either Subsidiary relating to either Subsidiary.
Neither the Company nor Subsidiaries is a party or subject to the provisions of
any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality. There is no action, suit, proceeding or investigation
by the Company or Subsidiaries currently pending or which the Company or
Subsidiaries intends to initiate.

          2.8  Patents and Trademarks. The Company and each Subsidiary has
sufficient title and ownership of, or rights to use, all patents, trademarks,
service marks, trade names, copyrights, trade secrets and proprietary rights and
processes (collectively, "Intellectual Property Rights") necessary for its
business as now conducted and as proposed to be conducted, without, to the best
knowledge of Company and each Subsidiary, any conflict with or infringement of
the rights of others. The Company and each Subsidiary owns or has currently
effective licenses to use all Intellectual Property Rights the absence of which
could materially impair the Company or Subsidiaries' ability to carryout its
strategic plans. Section 2.8 of the Disclosure Schedule is a correct and
complete list of all of the patents, trademarks, service marks, trade names and
copyrights of the Company and each Subsidiary and all royalties payable by the
Company or Subsidiaries in connection with its current or currently planned
products, processes and technologies identifying the payee, the royalty rate and
the product, processor technology to which the royalty relates. There are no
pending or threatened claims or disputes regarding royalties payable by the
Company or Subsidiaries under currently existing licenses or otherwise. There
are no outstanding options, licenses or agreements of any kind relating to the
foregoing, nor is the Company or Subsidiaries bound by or a party to any
options, licenses or agreements of any kind with respect to the patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, proprietary rights and processes of any other person or entity. The
execution. delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby, will not breach, violate or conflict with
any instrument or agreement governing any Intellectual Property Right of the
Company or Subsidiaries, will not cause any forfeiture or termination or give
rise to a right of forfeiture or termination of any Intellectual Property Right
of the Company or Subsidiaries or in any way impair the right of the Company or
Subsidiaries to use, sell, license or dispose of or bring any action for the
infringement of, any Intellectual Property Right of the Company or Subsidiaries
or portion thereof. There are no pending claims nor any claims threatened in
writing or otherwise known to management of the Company or Subsidiaries, or
litigation contesting the validity, ownership or right to use, sell, license or
dispose of any of the Company or Subsidiaries' Intellectual Property Rights. nor
is the Company or Subsidiaries aware of any reasonable basis for any such claim,
nor has the Company or Subsidiaries received any communications alleging that
the Company or Subsidiaries have violated or, by conducting its business as
proposed, would violate any of the patents, trademarks, service marks, trade
names, copyrights or trade secrets or other proprietary rights of any other
person or entity. Neither the Company nor either Subsidiary is aware that any of
its employees is obligated under any contract (including licenses, covenants or
commitments of any nature) or other agreement or subject to any judgment, decree

                                       6

<PAGE>

or order of any court or administrative agency, that would interfere with the
use of his or her best efforts to promote the interests of the Company or
Subsidiaries or that would conflict with the Company or Subsidiaries' business
as conducted. Neither the execution nor delivery of this Agreement nor the
carrying on of the Company or Subsidiaries' business by the employees of the
Company or Subsidiaries, nor the conduct of the Company or Subsidiaries'
business as proposed, will, to the knowledge of the Company, conflict with or
result in a breach of the terms, conditions or provisions of, or constitute a
default under, any contract, covenant or instrument under which any of such
employees is now obligated Neither the Company nor Subsidiaries believes it is
or will be necessary to utilize any inventions of any of its employees (or
people it currently intends to hire) made prior to their employment by the
Company or Subsidiaries.

          2.9   Compliance with Other Instruments. The Company is not in
violation or default of any provisions of its Articles or Certificate of
Organization or Operating Agreement or of any judgment, order, writ or decree to
which it is a party or by which it is bound. The Company is not in violation or
default of any instrument or contract to which it is a patty or by which it is
bound or of any provision of any federal or state statute, rule or regulation
applicable to the Company, except for violations or defaults of any contract
that, individually or in the aggregate, could not reasonably be expected to have
a material adverse effect on the business, financial condition or properties of
the Company and its Subsidiaries taken as a whole. Neither Subsidiary is in
violation or default of any provisions of its Articles or Certificate of
Incorporation or Bylaws or of any judgment, order, writ or decree to which it is
a party or by which it is bound. Neither Subsidiary is in violation or default
or of any instrument or contract to which it is a party or by which it is bound
or of any provision of any federal or state statute, rule or regulation
applicable to Subsidiaries, except for violations or defaults of any contract
that individually or in the aggregate, could not reasonably be expected to have
a material adverse effect on the business, financial condition or properties of
the Company and its Subsidiaries taken as a whole. The execution, delivery and
performance of this Agreement, and the consummation of the transactions
contemplated hereby will not result in any such violation or be in conflict with
or constitute, with or without the passage of time and giving of notice, either
a default under any such provision, instrument, judgment, order, writ, decree or
contract or an event which results in the creation of any lien, charge or
encumbrance upon any assets of the Company or Subsidiaries or the suspension,
revocation, impairment, forfeiture, or nonrenewal of any material permit,
license, authorization, or approval applicable to the Company or Subsidiaries,
their respective businesses or operations or any of their respective assets or
properties.

          2.10  Agreements Action.

               (a)  Except for agreements explicitly contemplated hereby, there
are no agreements, understandings or proposed transactions between the Company
and any of its members, managers, affiliates, or any affiliate thereof or
between either Subsidiary and any of its officers, directors, affiliates, or any
affiliate thereof.

               (b)  There are no agreements, understandings, instruments,
contracts, proposed transactions, judgments, orders, writs or decrees to which
the Company or Subsidiaries are a party or by which they are bound which may
involve (i) obligations (contingent or otherwise) of the Company or Subsidiaries
in excess of $25,000 (excluding net auction proceeds

                                       7

<PAGE>

payable by the Company to customers and maintained in the Company's trust
account or auction or other sale proceeds payable pursuant to the contracts set
forth in Section 2.3(d) of the Disclosure Schedule), or payments to the Company
or Subsidiaries in excess of $50,000 (excluding gross auction revenues payable
to the Company in connection with concluded auction sales), or (ii) the license
of any patent, copyright, trade secret or other proprietary right to or from the
Company or Subsidiaries or (iii) provisions restricting or affecting the
development, manufacture or distribution of the Company or Subsidiaries'
products or services, or (iv) indemnification by the Company or Subsidiaries
with respect to infringement of proprietary rights.

                (c)  The Company has not, except as expressly contemplated by
this Agreement or disclosed in the financial statements delivered to the
Investors or set forth in Section 2.10 of the Disclosure Schedule, (i) since
December 31,1998, authorized or made any distribution upon or with respect to
any class of the Company Membership Interests, (ii) incurred any outstanding
indebtedness for money borrowed or any other outstanding fixed, non-contingent
liabilities, other than in the ordinary course of business, individually in
excess of $25,000 or, in the case of such indebtedness and/or such liabilities
individually less than $25,000, in excess of $50,000 in the aggregate, (iii)
made any outstanding loans or advances to any person, other than ordinary
advances for business-related expenses, or (iv) since December 31,1998, sold,
exchanged or otherwise disposed of any of its assets or rights, other than in
the ordinary course of business.

                (d)  Neither Subsidiary has, except as disclosed in the
financial statements delivered to the Investors or set forth in Section 2.10 of
the Disclosure Schedule, (i) since December 31,1998, declared or paid any
dividends, or authorized or made any distribution upon or with respect to any
class or series of its capital stock, in each case other than to the Company, Q)
incurred any outstanding indebtedness for money borrowed or any other
outstanding fixed, non-contingent liabilities individually in excess of $25,000
or, in the case of such indebtedness and/or such liabilities individually less
than $25,000,in excess of $50,000 in the aggregate, (iii) made any outstanding
loans or advances to any person, other than ordinary advances for business
related expenses, or (iv) since December 31,1998, sold, exchanged or otherwise
disposed of any of its assets or rights, other than in the ordinary course of
business.

                (e)  For the purposes of subsections (b), (c) and (d) above, all
applicable indebtedness, liabilities, agreements, understandings, instruments,
contracts and proposed transactions involving the same person or entity
(including persons or entities the Company or Subsidiaries have reason to
believe are affiliated therewith) shall be aggregated for the purpose of meeting
the individual minimum dollar amounts of such subsections.

                (f)  Neither the Company nor either Subsidiary has engaged in
the past six months in any discussion regarding the liquidation, dissolution or
winding up of the Company or such Subsidiary.

          2.11  Related Party Transactions. (i) No employee, manager or
member of the Company or member of his or her immediate family is indebted to
the Company, nor is the Company indebted (or committed to make loans or extend
or guarantee credit) to any of them, and (ii) no employee, officer or director
of either Subsidiary or member of his or her immediate

                                        8

<PAGE>

family is indebted to either Subsidiary, nor is either Subsidiary indebted (or
committed to make loans or extend or guarantee credit) to any of them. To the
best of the Company's knowledge, none of such persons has any direct or indirect
ownership interest in any firm or corporation with which the Company or either
Subsidiary is affiliated or with which the Company or either Subsidiary has a
business relationship, or any firm or corporation that competes with the Company
or either Subsidiary, except that employees, managers or members of the Company,
the employees, officers or directors of either Subsidiary and members of their
immediate families may own stock in publicly traded companies that may compete
with the Company or either Subsidiary. No member of the immediate family of any
manager or member of the Company or of any officer or director of either
Subsidiary is directly or indirectly interested in any material contract with
the Company or either Subsidiary.

          2.12  Permits. The Company and each Subsidiary have all franchises,
permits, licenses, and any similar authority necessary for the conduct of their
business as now being conducted by it, the lack of which could materially and
adversely affect the business, properties, prospects, or financial condition of
the Company and its Subsidiaries taken as a whole, and the Company believes it
or Subsidiaries can obtain, without undue burden or expense, any similar
authority for the conduct of its business as planned to be conducted. Neither
the Company nor Subsidiaries are in default in any material respect under any of
such franchises, permits, licenses, or other similar authority.

          2.13  Environmental g do Safety Laws. To the best of the Company's
knowledge, neither the Company nor Subsidiaries are in violation of any statute,
law or regulation relating to the environment or occupational health and safety,
where such violation could reasonably be expected to have a material adverse
effect on the business, financial condition or properties of the Company and its
Subsidiaries taken as a whole and to the best of the Company's knowledge, no
material expenditures are or will be required of the Company or Subsidiaries in
order to comply with any such existing statute, law or regulation, where the
violation of, or non-compliance with, such statute, law of regulation could
reasonably be expected to have a material adverse effect on the business,
financial condition or properties of the Company and its Subsidiaries taken as a
whole.

          2.14  Marketing Rights. Neither the Company nor Subsidiaries have
granted rights to license, market, or sell its services to any other person or
is bound by any agreement that affects the Company's or Subsidiaries' exclusive
right to develop, distribute, market, license or sell its services.

          2.15  Disclosure. The representations and warranties of the Company
and its Subsidiaries contained in this Agreement and the written information
provided by the Company and its Subsidiaries to the Investors (including any
supplemental written information provided to the Investors prior to the
execution of this Agreement), taken as a whole, does not contain any untrue
statement of a material fact or omit to state a fact necessary in order to make
the statements contained therein not misleading as of the date made and in light
of the circumstances in which the same were made. As of the date hereof, there
are no facts known (or which should upon the reasonable exercise of diligence be
known) to the Company (other than matters of a general economic nature) that,
individually or in the aggregate, could reasonably be expected to

                                        9

<PAGE>

have a material adverse effect on the business, financial condition or
properties of the Company and its Subsidiaries taken as a whole and that have
not been provided to the Investors.

          2.16  Registration Rights. The Company has not granted or agreed to
grant any registration or other rights or any nature, including piggyback
rights, to any person or entity.

          2.17  Financial Statements. The Company has delivered to Holdings and
Investors financial statements (balance sheet, statement of operations,
statement of stockholders' equity and statement of cash flows, including notes
thereto) at December 31, 1996, 1997 and 1998 and for the three years then ended
which have been reviewed by Ernst & Young LLP and its financial statements
(balance sheet and statement of operations) as at and for the three-month period
ended March 31,1999 for the Company and Subsidiaries (the "Financial
Statements"). The Financial Statements have been prepared in accordance with
generally accepted accounting principles consistently applied, except that the
three-month Financial Statements may not contain all footnotes required by
generally accepted accounting principles. The Financial Statements fairly
present the financial condition and operating results of the Company or
Subsidiaries, as applicable, as of the dates, and for the periods, indicated
therein. Except as set forth in the Financial Statements, neither the Company
nor Subsidiaries have any liabilities, contingent or otherwise, other than (i)
liabilities incurred in the ordinary course of business subsequent to December
31,1998 and (ii) obligations under contracts and commitments incurred in the
ordinary course of business and not required under generally accepted accounting
principles to be reflected in the Financial Statements, which, in both cases,
individually or in the aggregate, are not material to the financial condition or
operating results of the Company or Subsidiaries. Except as disclosed in the
Financial Statements, neither the Company nor Subsidiaries are a guarantor or
indemnitor of any indebtedness of any other person, firm or corporation. The
Company and Subsidiaries maintain and will continue to maintain a standard
system of accounting established and administered in accordance with generally
accepted accounting principles.

          2.18  Changes. Since December 31,1998 there has not been:

                (a)  any change in the assets, liabilities, financial condition
or operating results of the Company or Subsidiaries from that reflected in the
Financial Statements, except changes in the ordinary course of business that
have not been, in the aggregate, materially adverse;

                (b)  any damage, destruction or loss, whether or not covered by
insurance, materially and adversely affecting the assets, properties, financial
condition, operating results, prospects or business of the Company and its
Subsidiaries taken as a whole (as such business is presently conducted and as it
is proposed to be conducted);

                (c)  any waiver by the Company or Subsidiaries of a valuable
right or of a material debt owed to it;

                (d)  any satisfaction or discharge of any lien, claim or
encumbrance or payment of any obligation by the Company or Subsidiaries, except
in the ordinary course of business and that is not material to the assets,
properties, financial condition, operating results or

                                       10

<PAGE>

business of the Company and its Subsidiaries taken as a whole (as such business
is presently conducted and as it is proposed to be conducted);

                (e) any material change or amendment to a material contract or
material arrangement by which the Company or Subsidiaries or any of their assets
or properties is bound or subject other than in connection with the transactions
expressly contemplated hereby;

                (f) any sale, assignment or transfer of any patents, trademarks,
copyrights, trade secrets or other intangible assets of the Company or
Subsidiaries;

                (g) any resignation or termination of employment of any key
manager of the Company or officer of Subsidiaries; and the Company, to the best
of its knowledge, does not know of the impending resignation or termination of
employment of any such manager or officer,

                (h) any mortgage, pledge, transfer of a security interest in, or
lien, created by the Company or Subsidiaries, with respect to any of its
material properties or assets, except liens for taxes not yet due or payable;

                (i) any declaration, setting aside or payment or other
distribution in respect of any of the Company's Membership Interests or
Subsidiaries' capital stock (other than to the Company), or any direct or
indirect redemption, purchase or other acquisition of any of such membership
interest by the Company or such stock by Subsidiaries;

                (j) to the best of the Company's knowledge, any other event or
condition of any character that could reasonably be expected to materially and
adversely affect the assets, properties, financial condition, operating results
or business of the Company and its Subsidiaries taken as a whole (as such
business is presently conducted and as it is proposed to be conducted); or

                (k) any agreement or commitment by the Company or Subsidiaries
to do any of the things described in this Section 2.18, except in connection
with the transactions expressly contemplated hereby.

          2.19  Organizational Documents. Except for amendments necessary to
satisfy representations and warranties or conditions contained herein (the form
of which amendments has been approved by Holdings and the Investors), the
organizational documents of the Company and Subsidiaries, are in the form
previously provided to Holdings and the Investors.

          2.20  Title to Property and Assets. The Company and Subsidiaries have
good and marketable title to their properties and assets and has good title to
all of its leasehold interests. The Company and Subsidiaries own their property
and assets free and clear of all mortgages, liens, loans and encumbrances of any
kind, except for (i) any liens arising by operation of law, and (ii) any
encumbrances and liens which arise in the ordinary course of business and do not
materially impair the Company's or Subsidiaries' ownership or use of such
property or assets including, without limitation, any liens granted to third
parties on assets acquired by the Company (1) for resale in the ordinary course
of business or (2) pursuant to a lease or purchase money financing for use in
the ordinary course of business, provided that in

                                       11

<PAGE>

each case such liens do not relate to any assets of the Company other than the
assets so acquired. With respect to the property and assets it leases, the
Company and Subsidiaries are in compliance with such leases in all material
respects and, to the best of the Company's knowledge, hold a valid leasehold
interest free of any lions, claims or encumbrances.

          2.21  Employee Benefit Plans. Neither the Company nor Subsidiaries
have any Employee Benefit Plan as defined in the Employee Retirement Income
Security Act of 1974.

          2.22  Tax Matters. (a) The Company and Subsidiaries have filed all Tax
Returns as required by law. All such Tax Returns are true, correct and complete
in all material respects. The Company and Subsidiaries have paid all Taxes and
other assessments due (whether or not shown on any Tax Return). The provisions
for Taxes of the Company and Subsidiaries as shown in the Financial Statements
are adequate for Taxes due or accrued as of the date thereof. Neither the
Company nor Subsidiaries currently are the beneficiary of any extension of time
within which to file any Tax Return. No claim has ever been made by an authority
in a jurisdiction where either the Company or Subsidiaries does not file Tax
Returns that the Company or Subsidiaries are or may be subject to taxation by
that jurisdiction. There are no security interests on any of the assets of the
Company or Subsidiaries that arose in connection with any failure (or alleged
failure) to pay any Tax.

                (b) The Company and Subsidiaries have withheld and paid all
Taxes required to have been withheld and paid in connection with amounts paid or
owing to any employee, independent contractor, creditor, stockholder, or other
third patty.

                (c) No Contributing Member (excluding Koll) or director or
officer (or employee responsible for Tax matters) of the Company or Subsidiaries
expects any authority to assess any additional Taxes for any period for which
Tax Returns have been filed. There is no dispute or claim concerning any Taxes
of any of the Company and Subsidiaries either (1) claimed or raised by any
authority in writing or (2) as to which any of the Contributing Members
(excluding Koll) and the directors and officers (and employees responsible for
Tax matters:) of the Company or Subsidiaries have knowledge based upon personal
contact with any agent of such authority. The Contributing Members (excluding
Koll) have delivered to the Investors correct and complete copies of all
federal income Tax Returns, examination reports, and statements of deficiencies
assessed against or agreed to by either the Company or Subsidiaries since
December 31, 1994.

                (d) Neither the Company nor Subsidiaries have waived any statute
of limitations in respect of Taxes or agreed to any extension of time with
respect to a Tax assessment or deficiency. Neither the Company nor Subsidiaries
have elected to be treated as a Subchapter S corporation or a collapsible
corporation pursuant to Section 1362(a) or Section 341(f) of the Code nor has it
made any other elections pursuant to the Code (other than elections which relate
solely to methods of accounting, depreciation, or amortization) which would have
a material effect on the Company, Subsidiaries, their respective financial
condition, their respective business as presently conducted or proposed to be
conducted or any of their respective properties or material assets. Subsidiaries
have not made any payments, are not obligated to make any payments, and are not
a party to any agreement that under certain circumstances could obligate it to
make any payments that will not be deductible under Code (S)280G. Neither the

                                       12

<PAGE>

Company nor Subsidiaries are party to any Tax allocation or sharing agreement.
Subsidiaries have not been a member of an affiliated group (within the meaning
of Section 1504 of the Code) filing a consolidated federal income Tax Return,
and neither the Company nor Subsidiary has any liability for the Taxes of any
person (other than the Company or Subsidiary) under Treasury Regulation
(S)1.1502-6 (or any similar provision of state, local, or foreign law), as a
transferee or successor, by contract, or otherwise.

          2.23  Insurance. The Company and Subsidiaries have in full force and
effect public liability insurance and fire and standard casualty insurance
policies (excluding earthquake and flood insurance), with extended coverage,
sufficient in amount (subject to reasonable deductibles) to allow it to replace
any of its properties that might be damaged or destroyed by fire or any covered
casualty.

          2.24  Books and Records. The books and records of the Company provided
to Investors reflect all transactions referred to in such books and records
accurately in all material respects, and reflect all transactions in Company
Membership Interests since the date of organization. The minute books and stock
record books of Subsidiaries provided to Investors reflect all transactions
referred to in such books and records accurately in all material respects, and
in the case of me stock record books and capitalization schedules provided to
Investors reflect all transactions in the capital stock of Subsidiaries since
the date of incorporation.

          2.25  Labor Agreements and Actions. Neither the Company nor
Subsidiaries are bound by or subject to (and none of its assets or properties is
bound by or subject to) any written or oral, express or implied, contract,
commitment or arrangement with any labor union, and no labor union has requested
or, to the knowledge of the Company, has sought to represent any of the
employees, representatives or agents of the Company or Subsidiaries. There is no
strike or other labor dispute involving the Company or Subsidiaries pending, or
to the knowledge of the Company threatene4l, which could have a material adverse
effect on the assets, properties, financial condition, operating results, or
business of the Company or Subsidiaries (as such business is presently conducted
and as it is proposed to be conducted), nor is the Company aware of any labor
organization activity involving the employees of the Company or Subsidiaries.
The Company is not aware that any officer or key employee, or that any group of
key employees, intends to terminate their employment with the Company or
Subsidiaries, nor does the Company or Subsidiaries have a present intention to
terminate the employment of any of the foregoing. Subject to general principles
related to wrongful termination of employees, the employment of each officer and
employee of the Company and Subsidiaries is terminable at the will of the
Company or Subsidiary.

          2.26  Assumptions or Guaranties of Indebtedness of Other Persons.
Neither the Company nor Subsidiaries are directly or contingently liable on
(including, without limitation liability by way of agreement, contingent or
otherwise, to purchase, to provide funds for payment, to supply funds to or
otherwise invest in any person or otherwise to assure any creditor against
loss)any indebtedness of any other person liabilities and has conducted no
operations or business, other than incident to its corporate formation or in
connection with the consummation of the transactions contemplated by this
Agreement. True and correct copies of Holdings' Certificate of Incorporation and
Bylaws have been delivered to the Investors and Contributing Members.

                                       13

<PAGE>

          2.27  Member or Stockholder Agreements. There are no agreements or
arrangements between the Company and any of the Company's members, or to the
Company's knowledge, between or among any of the Company's members, which grant
voting or other rights with respect to any Company Membership Interests or which
affect any shareholder's ability or right freely to alienate or vote such
interests. There are no agreements or arrangements between Subsidiaries and any
of their stockholders, or to Company's knowledge, between or among any of
stockholders of Subsidiaries, which grant voting or other rights with respect to
any shares of Subsidiary's capital stock or which affect any shareholder's
ability or right freely to alienate or vote such shares.

          2.28  Year 2000 Readiness. To the Company's best knowledge and belief
all of its accounting software is, and has been represented by its vendor(s) to
be, Year 2000 compliant, with the exception of the mail system module of the
software manufactured by CUS. CUS has represented to the Company that said CUS
mail system software module requires an upgrade in order to become Year 2000
compliant, which upgrade is currently in Beta-testing and is expected to be
released and installed on the Company's system prior to November 1, 199. The
Company believes that the failure of the CUS mail system software module to be
Year 2000 compliant would potentially cause it to incur material additional
costs and expenses as a result of the need to implement workaround solutions,
but the Company nevertheless believes that such workaround solutions would allow
the Company to continue operate its business in an effective manner. The Company
does not believe that it has any other hardware or software or electronically
controlled system whose failure to be Year 2000 compliant would have a material
adverse effect on the business of the Company and its Subsidiaries, taken as a
whole. The Company has not undertaken any testing or independent verification of
the status of any of the third party systems with which it interfaces or upon
which it is otherwise dependent. The Company will make appropriate inquiries of
all such third parties to the extent the failure of such third parties' systems
to by Year 2000 compliant could reasonably be expected to have a material
adverse effect on the Company and its Subsidiaries, taken as a whole, and the
Company will develop appropriate contingency plans to address such potential
failures, which the parties acknowledge could occur notwithstanding the
assurances such third parties may provide. The term "Year 2000 compliant", as
used herein in reference to any hardware, software, or other system, shall mean
that such hardware, software, or system will (a) correctly handle and process
date information before, during and after January 1, 2000, accepting date input,
and performing calculations, including but not limited to sorting and
sequencing, on dates and portions of dates, (b) function according to the
documentation during and after January 1, 2000, without changes in operation
resulting from the advent of the new century, (c) where appropriate respond to
two digit date input in a way that resolves any ambiguity as to the century in a
disclosed, defined and predetermined manner, (d) store and provide output of
date information in ways that are unambiguous as to the century, and (e)
properly manage the leap year occurring in the year 2000.

     3.   Representations and Warranties of Holdings. Holdings hereby represents
and warrants to the Investors and Contributing Members as follows:

          3.1   Organization, Good Standing and Qualification. Holdings is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to
carry on its business as now conducted and as proposed to be conducted. Holdings
is a newly formed corporation and has no assets or

                                       14

<PAGE>

liabilities and has conducted no operations or business, other than incident to
its corporate formation or in connection with the consummation of the
transactions contemplated by this Agreement. True and correct copies of
Holdings' Certificate of Incorporation and Bylaws have been delivered to the
Investors and Contributing Members.

          3.2   Capitalization and Voting Right. The authorized capital stock of
Holdings consists of 75,000,000 shares of Holdings Common Stock and 25,000,000
shares of Preferred Stock ("Preferred Stock"), of which 13,000,000 shares have
been designated Series A Preferred Stock. After giving effect to the Initial
Closing and Additional Shares Closing and the transactions to be completed
simultaneously therewith, Holdings will have 12,090,909 shares of Series A
Preferred Stock outstanding all of which will be held by the Investors and
28,212,121 shares of Holdings Common Stock outstanding, all of which will be
held by the Contributing Members. No options, warrants, rights (including
conversion or preemptive rights) or agreements are presently outstanding for the
purchase or acquisition from Holdings of any Holdings Common Stock presently
outstanding.

          3.3   Authorization. All corporate action on the part of Holdings, its
officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement, the Investors' Right Agreement and the
Stockholders Agreement, the performance of all obligations of Holdings hereunder
and thereunder, the authorization, issuance (or reservation for issuance), sale
and delivery of the Series A Preferred Stock being sold hereunder and the
Holdings Common Stock issuable upon conversion of the Seder A Preferred Stock
and the authorization, issuance, sale and delivery of the Holdings Common Stock
being sold hereunder has been taken or will be taken prior to the Initial
Closing, and this Agreement, the Investors' Right Agreement and the Stockholders
Agreement constitute void and legally binding obligations of Holdings,
enforceable in accordance with their respective terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of
general application affecting enforcement of creditors' rights generally,(ii)as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, and (iii)to the extent the indemnification
provisions contained in the Investors' Right Agreement may be limited by
applicable federal or state securities laws.

          3.4   Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, statue local or provincial governmental authority on
the pad of Holdings is required in connection with the consummation of die
transactions contemplated by this Agreement, except for the filing pursuant to
Section 251020 of the California Corporate Securities Law of 1968,as amended,
and the rules thereunder, which filing will be effected within 15 days after the
she of the Series A Preferred Stock hereunder, and any other applicable state
securities law filings.

          3.5   Litigation. There is no action, suit, claim, dispute,
proceeding-or investigation pending or currently threatened against Holdings
which questions the validity of this Agreement the Investors' Rights Agreement
or the Stockholders Agreement or the right of Holdings to enter into any of
them, or to consummate the transactions contemplated hereby or thereby, or which
might result either individually or in the aggregate, in any material adverse
changes in the assets, condition, affairs or prospects of Holdings, financially
or otherwise, or any change in the current equity ownership of Holdings.
Holdings is not a party or subject to the

                                       15

<PAGE>

provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality.

          3.6   Registration Rights. Except as provided in the Investors' Rights
Agreement, Holdings has not granted or agreed to grant any registration or other
rights or any nature, including piggyback rights, to any person or entity.

          3.7   Valid Issuance of Series A Preferred Stock and Holdings Common
Stock.

                (a)  The Series A Preferred Stock which is being purchased by
the Investors hereunder, when issued, sold and delivered in accordance with the
terms hereof for the consideration expressed herein, will be duly and validly
issued, fully paid and nonassessable and, based in part upon the representations
of the Investors in this Agreement will be issued in compliance wig all
applicable federal and site securities laws and will be free of restrictions on
transfer other than restrictions on transfer under this Agreement and the
Investors' Rights Agreement and under applicable state and federal securities
law. The Holdings Common Stock issuable upon conversion of the Series A
Preferred Stock purchased under this Agreement has been duly and validly
reserved for issuance and, upon issuance in accordance with the terms of the
Certificate of Incorporation, shall be duly and validly issued, fully paid and
nonassessable, and issued in compliance with all applicable securities laws and
will be free of restrictions on transfer other than restrictions on transfer
under this Agreement the Investors' Rights Agreement and the Stockholders
Agreement and under applicable state and federal securities law, as presently in
effect of the United States and each of the states whose securities laws govern
the issuance of any of me Series A Preferred Stock hereunder.

                (b) The shares of Holdings Common Stock which are being
purchased by the Contributing Members hereunder, when issued, sold and delivered
in accordance with the terms hereof for the consideration expressed herein will
be duly and validly authorized and issued, fully paid and nonassessable and,
based in part upon the representations of the Contributing Members in this
Agreement will be issued in compliance with all applicable federal and state
securities laws and will be fee of restrictions on transfer other than
restrictions on transfer under this Agreement the Investors' Right Agreement the
Stockholders Agreement and under applicable site and federal securities law.

          3.8   Market Stand-Off Agreements. Holdings has obtained agreements
from each of its stockholders whereby such stockholder has agreed that, during
the period of duration (not to exceed 180 days) specified by Holdings and an
underwriter of common stock or other securities of Holdings following the
effective die of a registration statement of Holdings filed under the Act such
stockholder will not, to the extent requested by Holdings and the underwriter,
directly or indirectly self offer to sell, contact to sell (including, without
limitation, any short sale), grant any option to purchase or otherwise transfer
or dispose of (other than to donees who agree to be similarly bound) any
securities of Holdings held such stockholder at any time dung such period except
common stock, if any, including such registration statement

     4.   Representations and Warranties of the Contributing Members. Each of
the Contributing Members severally represents and warrants to Holdings as
follows:

                                       16

<PAGE>

          4.1   Company Membership Interests. Such Contributing Member has good
and valid title to the Company Membership Interests owned by him, her or it as
set forth in Schedule 2.2 hereto, free and clear of any claims, liens, security
interests, options, charges, adverse claims and interests of others whatsoever.
Upon delivery to Holdings at the Initial Closing of the certificate or
certificates of interest or other instruments, if any, issued by the Company and
evidencing the Company Membership Interests owned by such Contributing Member,
duly endorsed by such Contributing Member for transfer to Holdings, Holdings
will obtain good and valid title to such Company Membership Interests, fits and
clear of any claims, liens, security interests, options, charges, adverse claims
and interests of others whatsoever. There are no voting trusts, proxies, or
other agreements or understandings with respect to the voting, dividend right or
disposition of such Contributing Member's Company Membership Interests. Neither
the Contributing Member nor, to the Contributing Member's knowledge, the Company
has any obligation, absolute or contingent, to any other person or entity to
issue, sell or otherwise dispose of any Company Membership Interests or to
effect any merger, consolidation, reorganization or other business combination
of the Company or any Subsidiary or to enter into any agreement with respect
thereto.

          4.2   Binding Effect. This Agreement and the other agreements
contemplated hereby to which such Contributing Member is a patty have been duly
executed and delivered by such Contributing Member, and constitute valid and
legally binding obligations of such Contributing Member, enforceable in
accordance with their respective terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors' rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, and (iii) to the extent the indemnification
provisions contained in the Investors' Rights Agreement may be limited by
applicable federal or state securities laws.

          4.3   Purchase Entirely for Own Account. This Agreement is made with
each Contributing Member in reliance upon such Contributing Member's
representation to Holdings, which such Contributing Member hereby confirms, that
the Holdings Common Stock to be received by such Contributing Member will be
acquired for investment for such Contributing Member's own account, not as a
nominee or agent, and not with a view to the resale or distribution of any part
thereto & and that such Contributing Member has no present intention of selling,
granting any participation in, or otherwise distributing the same. Each
Contributing Member further represents that such Contributing Member does not
have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to any of the Holdings Common Stock.

          4.4   Disclosure of Information. Such Contributing Member has received
and reviewed this Agreement and all annexes, schedules and exhibits hereto, and
has received all such business, financial and other information as such
Contributing Stockholder deems necessary and appropriate to enable him to
evaluate the financial risk inherent in making an investment in Holdings Common
Stock. Each Contributing Member further represents that he has had an
opportunity to ask questions and has received satisfactory and complete answers
from Holdings regarding the business and financial condition of Holdings and the
terms and conditions of the offering of the Holdings Common Stock. The
foregoing, however, does not limit or modify the

                                       17

<PAGE>

representations and warranties of the Company in Section 2 or Holdings in
Section 3 of this Agreement or the right of the Contributing Members to rely
thereon.

          4.5   Accredited Investor. Such Contributing Member is an "accredited
investor" within the meaning of Securities and Exchange Commission Rule 501 of
Regulation D, as presently in effect.

          4.6   Investment Experience. Such Contributing Member has such
knowledge and experience in financial and business mattes alto be capable of
evaluating the merit and risks of his investment in Holdings, and acknowledges
that he is able to fend for himself, can bear the economic ask of his investment
and has such knowledge and experience in financial or business matters that he
is capable of evaluating the merit and asks of the investment in the Common
Stock.

          4.7   Restricted Securities. Such Contributing Member understands that
the shares of Holdings Common Stock he is purchasing are characterized as
"restricted securities" under the federal securities laws inasmuch as they are
being acquired from Holdings in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be
resold without registration under the Securities Act of 1933,as amended (the
"Act"), only in certain limited circumstances. In this connection, each
Contributing Member represents that he is familiar with Rule 144 of the Act
("Rule 144"), as presently in effect, and understands the resale limitations
imposed thereby and by the Act.

          4.8   Further Limitations on Disposition. Without in any way limiting
the representations set forth above, each Contributing Member further agrees not
to make any disposition of all or any portion of the Holdings Common Stock
unless and until the transferee has agreed in writing for the benefit of
Holdings to be bound by this Section 4, provided and to the extent such section
is then applicable, and the Investors' Rights Agreement and:

                (a) There is then in effect a Registration Statement under the
Act covering such proposed disposition and such disposition is made in
accordance with such Registration Statement; or

                (b) Such Contributing Member shall have notified Holdings of the
proposed disposition and shall have furnished Holdings with a detailed statement
of the circumstances surrounding the proposed disposition, and (ii) if
reasonably requested by Holdings, such Contributing Member shall have famished
Holdings with an opinion of counsel, reasonably satisfactory to Holdings, that
such disposition will not require registration of such shares under the Act (it
being. agreed that Holdings will not require opinions of counsel for
transactions made pursuant to Rule 144 except in unusual circumstances).

          4.9   Legends. It is understood that the certificates evidencing the
Holdings Common Stock may bear one or all of the following legends:

                (a) "These securities have not been registered under the
Securities Act of 1933. They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect
to the securities under such Act or, if required by

                                       18

<PAGE>

Holdings, an opinion of counsel satisfactory to Holdings that such registration
is not required or unless sold pursuant to Rule 144 of such Act."

                (b) Any legend required by the laws of the State of California
or any other applicable state.

     5.   Representations and Warranties of the Investors. Each Investor hereby
represents and warrants to Holdings that:

          5.1   Binding Effect. This Agreement constitutes its valid and legally
binding obligation, enforceable in accordance with its terms except (i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and
other laws of general application affecting enforcement of creditors' rights
generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, and (iii) to the
extent the indemnification provisions contained in the Investors' Rights
Agreement may be limited by applicable federal or state securities laws.

          5.2   Purchase Entirely for Own Account. This Agreement is made with
each Investor in reliance upon such Investor's representation to Holdings,
which such Investor hereby confirms, that the Series A Preferred Stock to be
received by such Investor and the Holdings Common Stock issuable upon conversion
thereof (collectively, the "Securities") will be acquired for investment for
such Investor's own account, not as a nominee or agent, and not with a view to
the resale or distribution of any part thereof, and that such Investor has no
present intention of selling, granting any participation in, or otherwise
distributing the same. Each Investor further represents that such Investor does
not have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to any of the Securities. Each Investor represents that it has full
power and authority to enter into this Agreement.

          5.3   Disclosure of Information. It believes it has received all the
information it considers necessary or appropriate for deciding whether to
purchase the Series A Preferred Stock. Each Investor further represents that it
has had an opportunity to ask questions and receive answers from Holdings
regarding the terms and conditions of the offering of the Series A Preferred
Stock. The foregoing, however, does not limit or modify the representations and
warranties of the Company in Section 2 or Holdings in Section 3 of this
Agreement or the right of the investors to rely thereon

          5.4   Investment Experience. Each Investor is an investor in
securities of companies in the development stage and acknowledges that it is
able to fend for itself, can bear the economic risk of its investment and has
such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the Series A
Preferred Stock. If other than an individual, Investor also represents it has
not been organized for the purpose of acquiring the Series A Preferred Stock.

          5.5   Accredited Investor. Each Investor is an "accredited investor"
within the meaning of Securities and Exchange Commission Rule 501 of Regulation
D, as presently in effect.

                                       19

<PAGE>

          5.6   Restricted Securities. It understands that the shahs of Series A
Preferred Stock it is purchasing are characterized as "restricted securities"
under the federal securities laws inasmuch as they are being acquired from
Holdings in a transaction not involving a public offering and that under such
laws and applicable regulations such securities may be resold without
registration under the Act, as amended, only in certain limited circumstances.
In this connection, each Investor represents that it is familiar with Rule
I44,as presently in effect, and understands the resale limitations imposed
thereby and by the Act.

          5.7   Further Limitations on Disposition. Without in any way limiting
the representations set forth above, each Investor further agrees not to make
any disposition of all or any portion of the Series A Preferred Stock (or the
Holdings Common Stock issuable upon the conversion thereof) unless and until the
transferee has agreed in writing for the benefit of Holdings to be bound by this
Section 4, provided and to the extent such section is then applicable, and the
Investors' Rights Agreement and:

                (a) There is then in effect a Registration Statement under the
Act covering such proposed disposition and such disposition is made in
accordance with such Registration Statement; or

                (b) Such Investor shall have notified Holdings of the proposed
disposition and shall have furnished Holdings with a detailed statement of the
circumstances surrounding the proposed disposition, and (ii) if reasonably
requested by Holdings, such Investor shall have furnished Holdings with an
opinion of counsel, reasonably satisfactory to Holdings, that such disposition
will not require registration of such shares under the Act (it being agreed that
Holdings will not require opinions of counsel for transactions made pursuant to
Rule 144 except in unusual circumstances).

                    Notwithstanding the provisions of paragraphs (a) and (b)
above, no such registration statement or opinion of counsel shall be necessary
far a transfer by an Investor which is a partnership or limited liability
company to a partner or member thereof or a retired partner or member thereof
who retires after the date hereof or to the estate of any such partner or member
or retired partner or member or the transfer by gift, will or intestate
succession of any partner or member to his spouse or to the siblings, lineal
descendants or ancestors of such partner or member or his spouse, if the
transferee agrees in writing to be subject to the terms hereof to the same
extent as if he were an original Investor Maunder.

          5.8   Legends. It is understood that the certificates evidencing the
Series A Preferred Stock (and the Holdings Common Stock issuable upon conversion
thereof) may bear one or all of the following legends:

                (a) "These securities have not been registered undo the
Securities Act of 1933. They may not be sold, offered, for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect
to the securities under such Act or an opinion of counsel satisfactory to
Holdings that such registration is not required or unless sold pursuant to Rule
144 of such Act."

                                       20

<PAGE>

                (b) Any legend required by the taws of the State of California
or any other applicable state.

          5.9   Risks. Each Investor acknowledges that (a)this investment
involves substantial risks; (b) the projections for the Company are based upon
good faith estimates and assumptions believed by the Company to be reasonable at
the time made, it being recognized by the Investors that such projections as to
future events are not to be viewed as facts and that actual results during the
period or periods covered by any such projections may differ from the projected
results; and (c)to succeed, the Company may need to attract additional capital
and additional personnel, and there can be no assurances that the Company will
be able to attract such capital or personnel.

          5.10  No Representations. Each Investor acknowledges that there have
been no representations, guarantees or warranties made to it by the Company, its
agent or employees, or by any other person with respect to (a) the approximate
length of time that such Investor will be required to remain as the owner of the
Series A Preferred Stock; or (b) the percentage of profit or amount of profit to
be realized, if any, as a result of its investment.

     6.   California Commissioner of Corporations.

     THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT
BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA
AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL,
UNLESS THE SALE OF SECURITIES EXEMPT FROM QUALIFICATION BY SECTION 25100,25102
OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS
AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS THE SALE IS SO EXEMPT.

     7.   Conditions to Initial Closing.

          7.1   Conditions to Investor's Obligations. The obligations of each
Investor under subsection 1.3 of this Agreement are subject to the fulfillment
on or before the Initial Closing of each of the following conditions, the waiver
of which shall not be effective against any Investor who does not consent
thereto:

                (a) Representations and Warranties. The representations and
warranties of the Company contained in Section 2, Holdings in Section 3 and the
Contributing Members in Section 4 of this Agreement shall be true on and as of
the Initial Closing Date with the same effect as though such representations and
warranties had been made on and as of the Initial Closing Date.

                (b) Performance. Each of the Company, the Contributing Members
and Holdings shall have performed and complied with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or
complied with by it on or before Initial Closing.

                                       21

<PAGE>

                (c)  Compliance Certificates.

                     (i)   The Chef Executive Officer and Chief Financial
Officer of the Company shall deliver to each of the investors or their special
counsel a certificate certifying that the conditions specified in Sections
7.1(a) and 7.1 (b) with respect to the Company have been fulfilled and stating
that there shall have been no adverse change in the business, affairs,
operations, properties, assets or condition of the Company or Subsidiaries since
December 31, 1998.

                     (ii)  The Chief Executive Officer and Chief Financial
Officer of Holdings shall deliver to each of the Investors or their special
counsel a certificate certifying that the conditions specified in Sections
7.1(a) and 7.1(b) with respect to Holdings have been fulfilled and stating that
there shall have been no adverse change in the business affairs, operations,
properties, assets or conditions of Holdings since the date of its
incorporation.

                (d)  Qualifications. The Commissioner o f Corporations of the
State of California shall have issued a permit qualifying the offer and sale of
the Series A Preferred Stock and the underlying Holdings Common Stock to the
Investors pursuant to this Agreement and the offer and sale of the Holdings
Common Stock to the Contributing Members, or such over and sales shall be exempt
from such qualification under the California Corporate Securities Law of 1968,
as amended. Any other authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any state
that are required in connection with the lawful issuance and sale of the
securities pursuant to this Agreement shall be duly obtained and effective as of
the Initial Closing.

                (e)  Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated at the Initial
Closing and all documents incident thereto shall be reasonably satisfactory in
form and substance to Investors' special counsel, and they shall have received
all such counterpart original and certified or other copies of such documents as
they may reasonably request.

                (f)  Board of Directors. Concurrently with the Initial Closing,
the Board of Directors of Holdings shall be increased to five directors and the
directors of Holdings immediately after the Initial Cloning Date shall consist
of the following persons: Ross Dove, Kirk Dove, Blake Winchell and Hannah
Sullivan, and there shall be one vacancy on the Board of Directors.

                (g)  Investors' Rights Agreement. Holdings and each Investor
shall have entered into the Investors` Rights Agreement in the form attached as
Exhibit C.

                (h)  Stockholders' Agreement. The stockholders of Holdings shall
enter into a Stockholders' Agreement in the form of Exhibit D hereto.

                (i)  Charter Documents. Investors shall have received a
certified copy of Holdings Certificate of Incorporation, in the form attached
hereto as Exhibit A

                (j)  Satisfactory Due Diligence. Fremont Ventures shall have
completed its due diligence with respect to the Company, Subsidiaries and
Holdings and the

                                       22

<PAGE>

results of such due diligence shall have been satisfactory to Fremont Ventures,
as determined by it in its sole discretion.

                (k)  Senior Operating Manager Search. The Company shall have
made progress satisfactory to the Investors with regard to retaining a search
firm to recruit a new Senior Operating Manager.

                (l)  Opinion of Holdings and Company Counsel. Each of the
Investors shall have received from Howard, Rico, Nemerovski, Canady, Falk &
Rabkin, A Professional Corporation ("Howard Rice"), counsel for Holdings, the
Company and Subsidiaries, an opinion dated as of the Initial Closing Date, in
the form of Exhibit E hereto.

                (m)  Director Indemnification Agreement. Holdings shall have
entered into a Director Indemnification Agreement with each of its directors in
a form reasonably satisfactory to the Investors and their counsel.

                (n)  Merger of the Company. The Company shall have merged with
and into a Delaware limited liability company, pursuant to documentation in form
and substance satisfactory to the Investors. Holdings and successor limited
liability company shall have entered into a limited liability company agreement
in form and substance satisfactory to the Investors.

                (o)  Koll Agreements. Contributing Members and the Company shall
have entered into agreements in form and substance satisfactory to the Investors
pursuant to which Dove Holdings shall satisfy $875,000 of the existing fixed
obligation due from Dove Holdings, Ross Dove and Kirk Dove to Koll (the "Koll
Obligation") and the other obligations under or pursuant to the Agreement for
Sale of Interest in Koll-Dove, dated as of October 1, 1997,among Koll, Ross
Dove, Kirk Dove and Dove Holdings (such agreement as amended to date, together
with the Koll Security Agreement and all other related agreement being the "Koll
Agreements"), by transferring to Koll (1)7,500 shares of common stock of
National Loan Exchange owned by Dove Holdings representing 3 1/3% interest in
the total outstanding common stock and (2) Company Membership Interests owned by
Dove Holdings representing a 7 1/7% interest in the Company. Dove Holdings shall
provide to the Investor evidence satisfactory to the Investors that all
obligations of the Contributing Members under the Koll Agreement have been
terminated and that the security interest in the Company Membership Interest
owner by the Contributing Member pursuant to the Security Agreement, dates as of
October 1,1997(the "Koll Security Agreement"), by and among Koll, Ross Dove,
Kirk Dove and Dove Holdings has been terminated and released. The Company shall
assume Dove Holdings, Kirk Dove and Ross Dove's remaining $1,000,000 obligation
to Koll under the Koll Obligation and Dove Holdings, Ross Dove and Kirk Dove
will provide a guaranty to Koll regarding such $1,000,000 obligation.

                (p)  Distribution of Stock of National Loan Exchange. Prior to
the consummation of the transactions described in Section 7.1(o), Dove Brothers
California shall distribute all of the capital stock of National Loan Exchange
owned by it to its members pro rata in accordance with their respective Company
Membership Interests, pursuant to documentation in form and substance
satisfactory to the Investors.

                                       23

<PAGE>

                (q)  Purchase of Common Stock of National Loan Exchange by the
Investors. The National Loan Exchange Common Stock Purchase Agreement
substantially in the form attached hereto as Exhibit F and related documentation
referred to therein shall have been executed and delivered and ail of the
transactions contemplated thereby shall be consummated concurrently with the
Initial Closing.

          7.2   Conditions to Contributing Members' and Holding Obligations. The
obligations the Contributing Members and Holdings to each other party under this
Agreement are subject to the fulfillment on or before the Initial Closing Date
of each of the following conditions by such party:

                (a) Representations d Warranties. The representations and
warranties of the Investors contained in Section 5 of this Agreement shall be
true on and as of the Initial Closing Date with the same effect as though such
representations and warranties had been made. on and as of the Initial Closing
Date.

                (b) Payment of Purchase Price. The Investors shall have
delivered the purchase price specified in Section 1.3.

     8.   Conditions to the Additional Shares Closing.

          8.1   Conditions to the Investors' Obligations. The obligations of the
Investors under Section 1.4 of this Agreement are subject to the fulfillment at
or before the Additional Shares Closing of each of the following conditions, the
waiver of which shall not be effective against any Investor who does not consent
thereto:

                (a)  Representations and Warranties. (i) The representations and
warranties of the Company contained in Section 2 and of Holdings in Section 3
shall be true on and as of the Additional Shares Closing Date with the same
effect as though said representations and warranties had been made on and as of
be Additional Shares Closing Date and (ii) the representations and warranties
contained in subsections 2.6 through 2.15,2.20, 2.2 1, 2.26 and 2.28 shall be
true and correct as if made on and as of the Additional Shares Closing Date by
Holdings with all references contained therein to "Company" being deemed
references to "Holdings" and all references contained therein to "Subsidiaries"
being deemed to include Company; that with respect to all of such
representations and warranties, Holdings shall provide to Investors, if
necessary, new schedules required to qualify the content of such representations
and warranties not less than three business days prior to the Additional Shares
Closing and the content of such schedules shall nod in the sole discretion of
the Investors; reflect any material adverse change in Holdings or any change
that could materially impair the value of be Series A Preferred Stock. For
purposes of this Section 8.1(a), the term "material adverse change" means any
change that is or is likely to be materially adverse to the business assets,
prospects, financial condition or results of operations of Holdings and its
subsidiaries.

                (b)  Performance. Holdings shall have performed and complied
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Additional
Shares Closing Date.

                                       24

<PAGE>

                (c)  Compliance Certificate. The Chief Executive Officer and
Chief Financial Officer of Holdings shall deliver to each of the Investors or
their special counsel at the Additional Shares Closing a certificate certifying
that the conditions specified in Section 8.1(a) and 8.1P) have been fulfilled
and stating that there shall have been no adverse change in the business,
affairs, operations, properties, assets or conditions of Holdings and its
subsidiaries since the Initial Closing Date.

                (d)  Qualifications. The Commissioner of Corporations of the
State of California shall have issued a permit qualifying the offer and she of
the Series A Preferred Stock and the underlying Holdings Common Stock to the
Investors pursuant to this Agreement or such offer and sale shall be exempt from
such qualification under the California Corporate Securities Law of 1968,as
amended. Any other authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any state
that are required in connection with the lawful issuance and sale of the
securities pursuant to this Agreement shall be duly obtained and effective as of
the Additional Shares Closing.

                (e)  Proceedings and Document. All corporate and other
proceedings in connection with the transactions contemplated at the Additional
Shares Closing and all documents incident thereto shall be reasonably
satisfactory in form and substance to Investors' special counsel, and they shall
have received all such counterpart original and certified or other copies of
such documents as they may reasonably request.

          8.2   Conditions to Holdings' Obligations. The obligations of
Holdings to the Investors under Sections 1.4 of this Agreement are subject to
the fulfillment on or before the Additional Shares Closing Date of each of the
following conditions by such party:

                (a)  Representations and Warranties. The representations and
warranties of the Investors contained in Section 4 shall be true on and as of
the Additional Shares Closing Date with the same effect as though such
representations and warranties had been made on and as of the Additional Shares
Closing Date.

                (b)  Payment of Purchase Price. The Investors shall have
delivered, ate Additional Shares Closing, the purchase price specified in
Section 1.4.

     9.   Miscellaneous.

          9.1   Survival of Warranties. The warranties, representations and
covenants of the Company, Contributing Member, Holdings and Investors contained
in or made pursuant to this Agreement shall survive t0execution and delivery of
this Agreement and the Initial Closing and the Additional Shares Closing and
shall in no way be affected by any investigation of the subject matter thereof
made by or on behalf of the Investors, Holdings, Contributing Member or the
Company.

          9.2   Successors and Assigns. Except as otherwise provided herein, the
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties (including
transferees of any shares of Series A Preferred Stock sold hereunder or any
Holdings Common Stock issued upon conversion thereof or any Holdings Common
Stock sold hereunder). Nothing in this Agreement express or implied, is

                                       25

<PAGE>

intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement except as expressly provided in
this Agreement

          9.3   Governing, Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California.

          9.4   Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement

          9.5   Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed to have been
given for all purposes (a) upon personal delivery, (b) one day after being send
when sent by professional overnight courier service from and to locations within
the United Stated (c) five days after posing when sent by registered or
certified mail, or (d) on the date of transmission when sent by facsimile,
addressed (i) if to the Company at the address set forth on the signature pages
hereto; (ii) if to the Contributing Members at the addresses set forth on the
signature pages hereto; (iii) if to Holdings at the address set forth on the
signature pages hereto; or (iv) if to the Investors at the addresses set forth
on the signature pages hereto. Any party hereto may from time to time by notice
in writing to the other parties as provided herein, designate a different
mailing address or a different person to which such notices or demands are
thereafter be addressed or delivered.

          9.6   Finder's Fee. Each party represent that it neither is nor will
be obligated for any finder's, fee or commission in connection with this
transaction. Each party to this Agreement agrees to indemnify and to hold
harmless each other party to this Agreement from any liability for any
commission or compensation in the nature of a finder's fee (and the costs and
expenses of defending against such liability or asserted liability) for which
such party or any of its officers, partners, employees, members or
representatives is responsible.

          9.7   Expenses. Irrespective of whether the initial Closing is
effected, the Company shall pay all costs and expense that it incurs with
respect to the negotiation execution, delivery and performance of this Agreement
including the fen and costs of Howard, Rice (counsel to the Company, Holdings
Kirk and Ross Dove, Dove Holdings and the Subsidiaries) in connection with this
transaction. If the Initial Closing is effected, the Company shall, at the
Initial Closing, reimburse the reasonable fees and expenses of O'Melveny & Myers
LLP, counsel for the Investors, and the reasonable out-of-pocket fees and
expenses of the Investors incurred in connection with the transactions
contemplated hereby. If the Additional Shares Closing is effected, Holdings
shall at such closing, reimburse the reasonable fees and expenses of O'Melveny &
Myers LLP, counsel for the Investors, and the reasonable out-of pocket fees and
expenses of the Investors incurred in connection with the transactions
contemplated hereby. If any action at law or in equity is necessary to enforce
or interpret the terms of this Agreement or the Certificate of Incorporation,
the prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which such party may
be entitled.

                                       26

<PAGE>

          9.8    Amendments and Wavers. Any term of his Agreement may be amended
and the observance of any term of this Agreement may be waved (either generally
or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company, Holdings, the Contributing Members and
holders of Series A Preferred Stock then owning a majority of the Series A
Preferred Stock and the Common Stock issued upon conversion of the Series A
Preferred Stock issued pursuant to this Agreement. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each holder of
any securities purchased under this Agreement at the time outstanding (including
securities into which such securities are convertible), each future holder of
all such securities, the Company and Holdings.

          9.9    Severability. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of this Agreement shall be interpreted as if
such provision were so excluded and shall be enforceable in accordance with its
terms.

          9.10   Aggregation of Stock. All shares of the Series A Preferred
Stock held or acquired by affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under
this Agreement

          9.11   Entire Agreement. This Agreement and the document referred to
herein constitute the entire agreement among the parties and no party shall be
liable or bound to any other party in any manner by any warranties,
representations, or covenants except as specifically set forth herein or
therein.

          9.12   Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       27

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement with
the intent and agreement that the same shall be effective as of the day and year
first above written.

                                     THE COMPANY

                                     DOVE BROTHERS, LLC

                                     By: /s/ Ross Dove
                                         ----------------------------------

                                     Address: 1241 East Hillsdale Blvd
                                              Foster City, CA 94404
                                              Facsimile No. (650) 571-5980
                                              Attention: Chief Executive Officer

                                     HOLDINGS:

                                     DOVE PARTNERS, INC.

                                     By: /s/ Ross Dove
                                         ----------------------------------

                                     Address: 1241 East Hillsdale Blvd
                                              Foster City, CA 94404
                                              Facsimile No. (650) 571-5980
                                              Attention: Chief Executive Officer

                                     CONTRIBUTING MEMBERS:

                                     THE DOVE HOLDINGS CORPORATION

                                     By: /s/ Ross Dove
                                         ----------------------------------

                                     Address: 1241 East Hillsdale Blvd
                                              Foster City, CA 94404
                                              Facsimile No. (650) 571-5980
                                              Attention: Chief Executive Officer

                                     ROSS DOVE

                                     /s/ Ross Dove
                                     --------------------------------------

                                     Address: 1241 East Hillsdale Blvd
                                              Foster City, CA 94404
                                              Facsimile No. (650)571-5980

                                    KIRK DOVE

                                    /s/ Kirk Dove
                                    ---------------------------------------

                                    Address:  1241 East Hillsdale Blvd
                                              Foster City, CA 94404

                                       28

<PAGE>

                                              Facsimile No.  (650) 571-5980

                                    KOLL MANAGEMENT SERVICES, INC.

                                    By:   /s/ Walter [ILLEGIBLE]
                                        ----------------------------------------
                                    Title: Vice President
                                           -------------------------------------

                                    Address:  353 Sacramento St. Ste. 1900
                                              ----------------------------
                                              San Francisco, CA 94111
                                              -----------------------
                                              Facsimile No. (415) 733-5555

                                    INVESTORS:

                                    FREMONT VENTURES L.L.P.,
                                    a Delaware limited partnership

                                    By: FV, L.L.P., its General Partner

                                    By: Fremont Resources, Inc.,
                                        its General Partner

                                        By:  /s/ Blake Winchell
                                            -------------------------------
                                        Name:  W. Blake Winchell
                                              -----------------------------
                                        Title: Vice President
                                               ----------------------------

                                    Address:  Fremont Ventures L.L.P.
                                              50 Fremont Street, Suite 3 700
                                              San Francisco, CA 94105
                                              Facsimile: (415) 284-8102
                                              Attention:  W. Blake Winchell

                                       29

<PAGE>

                                  SCHEDULE 1.3

                             Schedule of Investors

<TABLE>
<CAPTION>
                                   Number and Price of Initial       Number and Price of Additional
          Investor                  Shares of Preferred Stock           Shares of Preferred Stock
          --------                  -------------------------           -------------------------
<S>                                <C>                               <C>
Fremont Ventures I, L.P.           6,045,455 shares                  6,045,454 shares
50 Fremont Street, Suite 3700      $0.33 per share                   $0.33 per share
San Francisco, CA 94105            $1,995,000.15 total purchase      $1,994,999.82 total purchase price
Facsimile: (415) 284-8102          price
Attention: W. Blake Winchell
</TABLE>

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