Document:

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Exhibit 10.4

                           COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement ("Lease") is made and effective April 1st, 2000,
by and between Alex Properties, a California General Partnership ("Landlord")
and IOM Holdings, Inc., a Nevada Corporation ("Tenant").

Landlord is the owner of land and improvements commonly know as numbered as 1300
Wakeham, Santa Ana, California.

Landlord desires to Lease Premises to Tenant, and Tenant, and Tenant desires to
lease the Leased Premises from Landlord for the term, at the rental and upon the
covenants, conditions and provisions herein set forth.

THEREFORE, in consideration of the mutual promises herein, contained and other
good and valuable consideration, it is agreed:

1.      TERMS.
        -----
A. Landlord hereby leases the Leased premises to Tenant, and Tenant hereby
leases the same from landlord, for an "initial Term" beginning April 1st, 2000
and ending March 31, 2010. Landlord shall use its best efforts to give Tenant
possession as nearly as possible at the beginning of the Lease term. If Landlord
is unable to timely provide the Leased Premises, rent shall abate for the period
of delay. Tenant shall make no other claim against Landlord for any such delay.

B. Tenant may renew the Lease for one extended term of ten years. Tenant shall
exercise such renewal option, if at all, by giving written notice to Landlord
not less than ninety (90) days prior to the expiration of the Initial Term. The
renewal term shall be at the rental set forth below and otherwise upon the same
covenants , conditions and provisions as provided in the Lease.

2.     RENTAL.
       ------
A.     Tenant shall pay to landlord during the Initial Term rental from
       04/01/2000 to 03/31/2003 at $.45/sf, from 04/01/2003 to 03/31/2006 at
       $.50 with an increase of $.05 per square foot other year, payable
       monthly. Each installment payment shall be due in advance on the first
       day of each calendar month during the lease term to Landlord at 30882 La
       Mer, Laguna Niguel, California 92677 or at such other place designated by
       written notice from Landlord or Tenant. The rental payment amount of any
       partial calendar months included in the lease shall be prorated on a
       daily basis. Tenant shall also pay to Landlord a "Security Deposit" in
       the amount of One Month's rent.

B.     The rental for any renewal lease term, if created as permitted under this
       Lease, shall be calculated as follows: Year 2006 to 2016 and increase of
       $.05 per square foot per year payable monthly.

3.     USE.
       ---
The Leased Premises may be used and occupied by Tenant for any lawful purpose
which complies with applicable zoning ordinances. Notwithstanding the foregoing,
Tenant shall not use the Leased Premises for the urposes of storing,
manufacturing or selling any explosives, flammables or other inherently
dangerous substance, chemical, thing or devise.

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4.     SUBLEASE AND ASSIGNMENT.
       ------------------------
Tenant shall have the right without Landlord's consent, to assign this Lease to
a corporation with which Tenant may merge or consolidate, to any subsidiary of
Tenant, to any corporation under common control with Tenant, or to a purchaser
of substantially all of Tenant's assets. Except as set forth above, Tenant shall
not sublease all or any part of the Leased Premises, or assign this Lease in
whole or in part without Landlord's consent, such consent not to be unreasonably
withheld or delayed.

5.     REPAIRS.
       --------
During the Lease term, Tenant shall make, at Tenant's expense, all necessary
repairs to the Leased Premises. Repairs shall include such items as routine
repairs of floors, walls, ceilings, and other parts of the Leased Premises
damaged or worn through normal occupancy, except for major mechanical systems or
the roof, subject to the obligations of the parties otherwise set forth in this
Lease.

6.     ALTERATIONS AND IMPROVEMENTS.
       -----------------------------
Tenant, at Tenant's expense, shall have the right following Landlord's consent
to remodel, redecorate, and make additions, improvements and replacements of and
to all or any part of the Leased Premises from time to time as Tenant may deem
desirable, provided the same are made in a workmanlike manner and utilizing good
quality materials. Tenant shall have the right to place and install personal
property, trade fixtures, equipment and other temporary installations in and
upon the Leased Premises, and fasten the same to the premises. All personal
property, equipment, machinery, trade fixtures and temporary installations,
whether acquired by Tenant at the commencement of the Lease term or placed or
installed on the Leased Premises by Tenant thereafter, shall remain Tenant's
property free and clear of any claim by Landlord. Tenant shall have the right to
remove the same at any time during the term of this Lease provided that all
damage to the Leased Premises caused by such removal shall be repaired by Tenant
at Tenant's expense.

7.     PROPERTY TAXES.
       ---------------
Landlord shall pay, prior to delinquency, all general real estate taxes and
installments of special assessments coming due during the Lease term on the

Leased Premises, and all personal property taxes with respect to Landlord's
personal property, if any, on the Leased Premises. Tenant shall be responsible
for paying all personal property taxes with respect to Tenant's personal
property at the Leased Premises.

8.     INSURANCE.
       ----------
A. If the Leased Premises or any other party of the Building is damaged by fire
or other casualty resulting from any act or negligence of Tenant or any of
Tenant's agents, employees or invitees, rent shall not be diminished or abated
while such damages are under repair, and Tenant shall be responsible for the
costs of repair not covered by insurance.

B. Landlord shall maintain fire and extended coverage insurance on the Building
and the Leased Premises in such amounts as Landlord shall deem appropriate.
Tenant shall be responsible, at its expense, for fire and extended coverage
insurance on all of its personal property, including removable trade fixtures,
located in the Leased Premises.

C. Tenant and Landlord shall, each at its own expense, maintain a policy or
policies of comprehensive general liability insurance with respect to the
respective activities of each in the Building with the premiums thereon fully
paid on or before due date, issued by and binding upon some insurance company
approved by Landlord, such insurance to afford minimum protection of not less
than $1,000,000 combined single limit coverage of bodily injury, property damage
or combination thereof. Landlord shall be listed as an additional insured on

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Tenant's policy or policies of comprehensive general liability insurance, and
Tenant shall provide Landlord with current Certificates of Insurance evidencing
Tenant's compliance with this Paragraph. Tenant shall obtain the agreement of
Tenant's insurers to notify Landlord that a policy is due to expire at least
(10) days prior to such expiration. Landlord shall not be required to maintain
insurance against thefts within the Leased Premises or the Building.

9.      UTILITIES.
        ---------
Tenant shall pay all charges for water, sewer, gas, electricity, telephone and
other services and utilities used by Tenant on the Leased Premises during the
term of this Lease unless otherwise expressly agreed in writing by Landlord. In
the event that any utility or service provided to the Leased Premises is not
separately metered, Landlord shall pay the amount due and separately invoice
Tenant for Tenant's pro rata share of the charges. Tenant shall pay such amounts
within fifteen (15) days of invoice. Tenant acknowledges that the Leased
Premises are designed to provide standard office use electrical facilities and
standard office lighting. Tenant shall not use any equipment or devices that
utilizes excessive electrical energy or which may, in Landlord's reasonable
opinion, overload the wiring or interfere with electrical services to other
tenants.

10.     SIGNS.
        -----
Following Landlord's consent, Tenant shall have the right to place on the Leased
Premises, at locations selected by Tenant, any signs which are permitted by
applicable zoning ordinances and private restrictions. Landlord may refuse
consent to any proposed signage that is in Landlord's opinion too large,
deceptive, unattractive or otherwise inconsistent with or inappropriate to the
Leased Premises or use of any other tenant. Landlord shall assist and cooperate
with Tenant in obtaining any necessary permission from governmental authorities
or adjoining owners and occupants for Tenant to place or construct the foregoing
signs. Tenant shall repair all damage to the Leased Premises resulting from the
removal of signs installed by Tenant.

11.     ENTRY.
        -----
Landlord shall have the right to enter upon the Leased Premises at reasonable
hours to inspect the same, provided Landlord shall not thereby unreasonably
interfere with Tenant's business on the Leased Premises.

12.     PARKING.
        -------
During the term of this Lease, Tenant shall have the non-exclusive use in common
with Landlord, other tenants of the Building, their guests and invitees, of the
non-reserved common automobile parking areas, driveways, and footways, subject
to rules and regulations for the use thereof as prescribed from time to time by
Landlord. Landlord reserves the right to designate parking areas within the
Building or in reasonable proximity thereto, for Tenant and Tenant's agents and
employees. Tenant shall provide Landlord with a list of all license numbers for
the cars owned by Tenant, its agents and employees. Separated structured
parking, if any, located about the Building is reserved for tenants of the
Building who rent such parking spaces. Tenant hereby leases from Landlord 88
spaces in such structural parking area, such spaces to be on a first come-first
served basis. In consideration of the leasing to Tenant of such spaces, Tenant
shall pay a monthly rental of N/A per space throughout the term of the Lease.
Such rental shall be due and payable each month without demand at the time
herein set for the payment of other monthly rentals, in addition to such other
rentals.

                                       3

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13.     BUILDING RULES.
        --------------
Tenant will comply with the rules of the Building adopted and altered by
Landlord from time to time and will cause all of its agents, employees, invitees
and visitors to do so; all changes to such rules will be sent by Landlord to
Tenant in writing. The initial rules for the Building are attached hereby as
Exhibit "A" and incorporated herein for all purposes.

14.     DAMAGE AND DESTRUCTION.
        ----------------------
Subject to Section 8A above, if the Leased Premises or any part thereof or any
appurtenances thereto is so damaged by fire, casualty or structural defects that
the same cannot be used for Tenant's purposes, then Tenant shall have the right
within ninety (90) days following damage to elect by notice to Landlord to
terminate this Lease as of the date of such damage. In the event of minor damage
to any part of the Leased Premises, and if such damage does not render the
Leased Premises unusable for Tenant's purposes, Landlord shall promptly repair
such damage at the cost of the Landlord. In making the repairs called for in
this paragraph, Landlord shall not be liable for any delays resulting from
strikes, governmental restrictions, inability to obtain necessary materials or
labor or other matters which are beyond the reasonable control of Landlord.
Tenant shall be relieved from paying rent and other charges during any portion
of the Lease term that the Leased Premises are inoperable or unfit for
occupancy, or use, in whole or in part, for Tenant's purposes. Rentals and other
charges paid in advance for any such periods shall be credited on the next
ensuing payments, if any, but if no further payments are to be made, any such
advance payments shall be refunded to Tenant. The provisions of this paragraph
extend not only to the matters aforesaid, but also to any occurrence which is
beyond Tenant's reasonable control and which renders the Leased Premises, or any
appurtenance thereto, inoperable or unfit for occupancy or use, in whole of in
part, for Tenant's purposes.

15.     DEFAULT.
        -------
If default shall at any time be made by Tenant in the payment of rent when due
to Landlord as herein provided, and if said default shall continue for fifteen
(15) days after written notice thereof shall have been given to Tenant by
Landlord, or if default shall be made in any of the other covenants or
conditions to be kept, observed and performed by Tenant, and such default shall
continue for thirty (30) days after notice thereof in writing to Tenant by
Landlord without correction thereof then having been commenced and thereafter
diligently prosecuted, Landlord may declare the term of this Lease ended and
terminated by giving Tenant written notice of such intention, and if possession
of the Leased Premises is not surrendered, Landlord may reenter said premises.
Landlord shall have, in addition to the remedy above provided, any other right
of remedy available to Landlord on account of any Tenant default, either in law
or equity. Landlord shall use reasonable efforts to mitigate its damages.

16.     QUIET POSSESSION.
        ----------------
Landlord covenants and warrants that upon performance by Tenant of its
obligations hereunder, Landlord will keep and maintain Tenant in exclusive,
quiet, peaceable and undisturbed and uninterrupted possession of the Leased
Premises during the term of this Lease.

17.     CONDEMNATION.
        ------------
If any legally, constituted authority condemns the Building or such part thereof
which shall make the Leased Premises unsuitable for leasing, this Lease shall
cease when the public authority takes possession, and Landlord and Tenant shall
account for rental as of that date. Such termination shall be without prejudice
to the rights of either party to recover compensation from the condemning
authority for any loss or damage caused by the condemnation. Neither party shall
have any rights in or to any award made to the other by the condemning
authority.

                                       4

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18.     SUBORDINATION.
        -------------
Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust
or other lien presently existing or hereafter arising upon the Leased Premises,
or upon the Building and to any renewals, refinancing and extensions thereof,
but Tenant agrees that any such mortgagee shall have the right at any time to
subordinate such mortgage, deed of trust or other lien to this Lease on such
terms and subject to such conditions as such mortgagee may deem appropriate in
its discretion. Landlord is hereby irrevocably vested with full power and
authority to subordinate this Lease to any mortgage, deed of trust or other lien
now existing or hereafter placed upon the Leased Premises of the Building, and
Tenant agrees upon demand to execute such further instruments subordinating this
Lease or attorning to the holder of any such liens as Landlord may request. In
the event that Tenant should fail to execute any instrument of subordination
herein required to be executed by Tenant promptly as requested, Tenant hereby
irrevocably constitutes Landlord as its attorney-in-fact to execute such
instrument in Tenant's name, place and stead, it being agreed that such power is
one coupled with an interest. Tenant agrees that it will from time to time upon
request by Landlord execute and deliver to such persons as Landlord shall
request a statement in recordable form certifying that this Lease is unmodified
and in full force and effect (or if there have been modifications, that the same
is in full force and effect as so modified), stating the dates to which rent and
other charges payable under this Lease haven been paid, stating that Landlord is
not in default hereunder (or if Tenant alleges a default stating the nature of
such alleged default) and further stating such other matters as Landlord shall
reasonably require.

19.     SECURITY DEPOSIT.
        ----------------
The Security Deposit shall be held by Landlord without liability for interest
and as security for the performance by Tenant of Tenant's covenants and
obligations under this Lease, it being expressly understood that the Security
Deposit shall not be considered an advance payment of rental or a measure of
Landlord's damages in case of default by Tenant. Unless otherwise provided by
mandatory non-waivable law or regulation, Landlord may commingle the Security
Deposit with Landlord's other funds. Landlord may, from time to time, without
prejudice to any other remedy, use the Security Deposit to the extent necessary
to make good any arrearages of rent or to satisfy any other covenant or
obligation of Tenant hereunder. If Tenant is not in default at the termination
of this Lease, the balance of the Security Deposit remaining after any such
application shall be returned by Landlord to Tenant. If Landlord transfers its
interest in the Premises during the term of this Lease, Landlord may assign the
Security Deposit to the transferee and thereafter shall have no further
liability for the return of such Security Deposit.

20.     NOTICE.
        ------
Any notice required or permitted under this Lease shall be deemed sufficient
given or served if sent by United States certified mail, return receipt
requested, addressed as follows:

         If to Landlord to:
                  Alex Properties
                  12 Sunpeak, Irvine, CA 92715

         If to Tenant to:
                  IOM Holdings, Inc.
                  1300 E. Wakeham Ave.
                  Santa Ana, Ca. 92795

                                       5

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Landlord and Tenant shall each have the right from time to time to change the
place notice is to be given under this paragraph by written notice thereof to
the other party.

21.     BROKERS.
        -------
Tenant represents that Tenant was not shown the Premises by any real estate
broker or agent and that Tenant has not otherwise engaged in, any activity which
would form the basis for a claim for real estate commission, brokerage fee,
finder's fee or other similar charge, in connection with this Lease.

22.     WAIVER.
        ------
No waiver of any default of Landlord or Tenant hereunder shall be implied from
any omission to take any action or account of such default if such default
persists or is repeated, and no express waiver shall affect any default other
than the default specified in the express waiver and that only for the time and
to the extent therein stated. One or more waivers by Landlord or Tenant shall
not be construed as a waiver of a subsequent breach of the same covenant, term
or condition.

23.     MEMORANDUM OF LEASE.
        -------------------
The parties hereto contemplate that this lease should not and shall be filed for
record, but lieu thereof, at the request of either party, Landlord and Tenant
shall execute a Memorandum of Lease to be recorded for the purposes of giving
record notice of the appropriate provisions of this Lease.

24.     HEADINGS.
        --------
The headings used in this Lease are for convenience of the parties only and
shall not be considered in interpreting the meaning of any provision of this
Lease.

25.     SUCCESSORS.
        ----------
The provisions of this Lease shall extent to and be binding upon Landlord and
their respective legal representatives, successors and assigns.

26.     CONSENT.
        -------
Landlord shall not unreasonably withhold or delay its consent with respect to
any matter for with Landlord's consent is required or desirable under this
Lease.

27.     PERFORMANCE.
        -----------
If there is a default with respect to any of Landlord's covenants, warranties or
representations under this Lease, and if the default continue more than fifteen
(15) days after notice in writing from Tenant to Landlord specifying the
default, Tenant may, at its option and without affecting any other remedy
hereunder, cure such default and deduct the cost thereof from the next accruing
installment or installments of rent payable hereunder until Tenant shall have
fully reimbursed for such expenditures, together with interest thereon at a rate
equal to the lessor of twelve percent (12%) per annum of the then highest lawful
rate. If this Lease terminates prior to Tenant's receiving full reimbursement,
Landlord shall pay the unreimbursed balance plus accrued interest to Tenant on
demand.

                                       6

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28.     COMPLIANCE WITH LAW.
        -------------------
Tenant shall comply with all laws, orders, ordinances and other public
requirements now or hereafter pertaining to Tenant's used of the Leased
Premises. Landlord shall comply with all laws, orders, ordinances and other
public requirements now or thereafter affecting the Leased Premises.

29.     FINAL AGREEMENT.
        ---------------
This agreement terminates and supersedes all prior understanding or agreements
on the subject matter hereof. Only by a further writing that is duly executed by
both parties may modify this Agreement.

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

Alex Properties                                   IOM Holdings, Inc.

By   /S/ Tony Shahbaz                             By   /S/ Tony Shahbaz
     -----------------------                           -------------------------
     Tony Shahbaz                                      Tony Shahbaz
     General partner                                   President

                                       7<PAGE>

                                                                    EXHIBIT 10.1

                              DATE: _____ ___, 2002

CAPITOL CITY ESCROW, INC.
3838 WATT AVENUE, SUITE F-610
SACRAMENTO, CA 95821

ATTN:  DONNA M. GRADY, CSEO/PRESIDENT

                 YOSEMITE MORTGAGE FUND II, LLC-ESCROW AGREEMENT

Dear Ms. Grady:

Introduction

MFP Management LLC, a California limited liability company, is the manager
(Manager) of Yosemite Mortgage Fund II, LLC, a California limited liability
company (the Company), the issuer and registrant for an offering of units of
limited liability company interest of the Company (Units), under a Registration
Statement on Form SB-2, filed with the Securities and Exchange Commission on or
about August 16, 2002. The Units will be offered and sold by Rice Pontes
Capital, Inc. (Selling Agent), a California corporation and member firm of the
National Association of Securities Dealers, Inc., and by the Company.

The terms of the offering require that the payments of the purchase price of the
first 150,000 Units sold in the offering ($1,500,000) be placed in an escrow
account, and this Escrow Agreement (Agreement) sets forth the terms and
conditions under which Capitol City Escrow, Inc. (Escrow Agent or you) will hold
such funds (the Required Proceeds) as the Escrow Agent hereby appointed by the
Company and the Selling Agent for the offering to hold and distribute the
Required Proceeds.

TERMS AND CONDITIONS

1. Persons subscribing to purchase the Units will be required by the
Subscription Agreement with the Company and will be instructed by the Selling
Agent or the Company, as appropriate, to remit the purchase price to Selling
Agent for transmission to the Escrow Agent in the form of checks, drafts or
money orders (herein called Instruments of Payment), payable to the order of, or
funds wired in favor of, Escrow Agent until such time as the 150,000 Units have
been sold and the $1,500,000 received. Within one business day after receipt of
Instruments of Payment from the offering, the Selling Agent or the Company will
send to Escrow Agent: (a) a copy of each subscriber's completed Subscription
Agreement, and (b) the Instruments of Payment from such subscribers for deposit
into the deposit account entitled "Capitol City Escrow, Inc. as Escrow Agent for
Yosemite Mortgage Fund II, LLC", which deposit will occur within one business
day after Escrow Agent receives such materials. The credit to the account will
be handled according to Escrow Agent's normal deposit procedures and policies.

2. The aforesaid Instruments of Payment are to be promptly processed for
collection by Escrow Agent following deposit by the Manager for the Company into
the Escrow Account. The proceeds thereof are to be held in the Escrow Account
until such funds are either returned to the subscribers in accordance with
section 3 hereof or otherwise disbursed in accordance with section 6 hereof. In
the event any of the Instruments of Payment are returned to Escrow Agent for
non-payment prior to receipt of the Required Proceeds, Escrow Agent shall
promptly notify the Manager in writing of such non-payment, and is authorized to
debit the Escrow Account in the amount of such return payment.

3. In the event that at the close of Escrow Agent's business on _____________,
2002 (the Expiration Date) Escrow Agent is not in receipt of copies of
Subscription Agreements and Instruments of Payment dated not later than that
date (or actual wired funds), for the purchase of Units providing for total
purchase proceeds that equal or exceed the Required Proceeds (exclusive of any
funds received from subscriptions for Units from entities which we have notified
Escrow Agent are affiliated with the Company or Manager and their affiliates) or
in the event that Instruments of Payment are returned to the Escrow Agent for
non-payment and the subtraction, to the account pursuant to section 2 above
reduces the amount in the account to less than the Required Proceeds, Escrow
Agent shall promptly notify the Manager that such Instruments of Payment have
not been received by Escrow Agent.

Promptly following the Expiration Date, and in any event no later than ten
business days after the Expiration Date, Escrow Agent shall promptly return by
check the funds deposited in the Escrow Account, or shall return the Instruments
of Payment delivered to you if such instruments have not been processed for
collection prior to such time, directly to each subscriber at the address given
by the Company.

                                   Ex. 10.1-1
<PAGE>

Included in the remittance shall be a proportionate share of the income earned
in the Escrow Account allocable to each subscriber's investment in accordance
with the terms and conditions specified in section 7 hereof. Notwithstanding the
foregoing, Escrow Agent shall not be required to remit any payments until funds
represented by such payments have been collected.

In the event that the Company rejects any subscription for which Escrow Agent
has already collected funds, you will be so informed in writing by the Manager
to promptly issue a refund check to the rejected subscriber. If the Manager
rejects any subscription for which you have not yet collected funds but have
submitted the subscriber's Instrument of Payment for collection, you shall
promptly issue a check in the amount of the subscriber's Instrument of Payment
to the rejected subscriber after such funds clear. If Escrow Agent has not yet
submitted a rejected subscriber's check for collection, Escrow Agent shall
promptly remit the subscriber's Instrument of Payment directly to the
subscriber.

4. Following receipt by Escrow Agent of cash and Instruments of Payment (or
wired funds) of the Required Proceeds prior to the Expiration Date, it shall
notify the Company in writing within five business day when such funds have been
collected through normal banking channels and deposited in the Escrow Account.

5. Prior to the disbursement of funds deposited in the Escrow Account in
accordance with the provisions of section 3 or 6 hereof, Escrow Agent shall
invest all of the collected funds that have been deposited in the Escrow Account
in one money market account. No investments of Instruments of Payment will be
made until the funds thereof have been collected by Escrow Agent or unless the
Instrument of Payment is wired funds. If an Instrument of Payment is a cashier's
check on a major California bank, the investment will be made the business day
following receipt by the Escrow Agent of the Instrument of Payment. If the
Instrument of Payment is a cashier's check on any other bank, it will be held by
the Escrow Agent for five business days following the day of receipt before
investment of the funds. If the Instrument of Payment is in the form of funds in
an investment account of subscriber, the payment will be held by the Escrow
Agent for ten business days following the day of receipt before investment.
Escrow Agent will have no liability for any loss of interest or penalties
assessed if the money market account is liquidated before maturity.

6. All disbursements from the Escrow Account; including Net Escrow Income,
except for disbursements under the provisions of section 3 hereof, shall be made
by Escrow Agent only pursuant to the provisions of this section 6. Except for
disbursements authorized upon court order, Escrow Agent shall hold all funds in
the Escrow Account until (i) the date checks for Required Proceeds have cleared
normal banking channels after receipt by Escrow Agent of the Required Proceeds,
and (ii) receipt of letter instructions from the Company directing disbursements
of such funds to the Company.

In disbursing such funds, Escrow Agent is authorized to rely solely upon such
letter instructions which it receives from the Company whether or not such
instructions are correct, true or authentic; provided that, if in Escrow Agent's
opinion such letter instructions from the Company are unclear, it is authorized
to rely upon the legal counsel to the Company in distributing such funds to the
effect that distribution of the funds is authorized by the letter instructions
of the Company and that distribution of the funds in that manner is authorized
by and in compliance with such letter.

However, Escrow Agent shall not be required to disburse any funds attributable
to Instruments of Payment which have not been collected by Escrow Agent provided
that you shall use your best efforts to promptly collect such funds after
receipt of disbursement instructions from the Company in accordance with this
section, and shall disburse such funds in compliance with the disbursement
instructions from the Company.

7. In the event the offering of Units terminates prior to receipt of the
Required Proceeds, income earned on subscription proceeds deposited in the
Escrow Account (Gross Escrow Income) shall be remitted to subscribers in
compliance with section 3. Each subscriber's pro rata portion of Gross Escrow
Income shall be determined as follows: The total amount of Gross Escrow Income
shall be multiplied by a fraction, the numerator of which is determined by
multiplying the number of Units purchased by said subscriber times the number of
days said subscriber's proceeds are invested prior to termination of the
offering, and the denominator of which is the total of the numerators for all
such subscribers. The Company shall have the responsibility to compute each
subscriber's pro rate portion of Gross Escrow Income and to report to the Escrow
Agent in writing those amounts. Escrow Agent shall promptly remit all such Gross
Escrow Income in accordance with section 3 of this Agreement.

8. As compensation for serving as Escrow Agent hereunder, Escrow Agent shall
receive a fee, as set forth on Schedule A attached to this Agreement.

9. Escrow Agent, in performing any of its duties hereunder, shall not incur any
liability to anyone for any damages, losses or expenses, except for willful
default, breach of trust, or gross negligence, and accordingly it shall not
incur any such liability with respect to any action taken or omitted (1) in good
faith upon advice of its counsel given with respect to any question relating to
its duties and responsibilities under this Agreement, or (2) in reliance upon
any instrument, including any written instrument or instruction provided for in
this Agreement, not only as to its due execution and validity and effectiveness
of its provisions but also as to the truth and accuracy of information contained
therein, which Escrow Agent shall in good faith believe to be genuine, and (3)
to have been signed or presented by a proper person or persons and to conform to
the provisions of this Agreement. You have no duty under this Agreement to
ascertain or assure that the Company shall be in compliance with the terms and
conditions of the offering of the Units.

                                   Ex. 10.1-2
<PAGE>

10. Company covenants to defend and indemnify Escrow Agent, its directors,
officers, employees and agents harmless from any and all losses, liabilities,
claims, damages, costs or expenses (including without limitation reasonable
attorney's fees and disbursements) suffered or incurred by it arising out of or
in connection with Escrow Agent's status as a party to and in the administration
of this Agreement (including but not limited to the costs and expenses of
defending against any claim of liability in connection therewith), or in
connection with Escrow Agent's performance (excluding breach of trust, gross
negligence or willful misconduct) of any of the obligations hereunder, or Escrow
Agent's action pursuant to any instruction received by Escrow Agent from any
party hereto reasonably believed by Escrow Agent to have been properly given
hereunder, without the necessity of making any investigation with respect
thereto. Escrow Agent shall not be required to defend legal proceedings which
may be instituted against it with respect to the subject matter of this
Agreement or any written instructions, unless requested to do so by Company and
indemnified to Escrow Agent's satisfaction against the cost and expense of such
defense. Escrow Agent shall not be requested to institute legal proceedings of
any kind.

11. In the event of a dispute between the parties hereto or between any person
or persons who have subscribed for Units and delivered an instrument of payment
therefor and the Company, the Manager, or the Selling Agent, sufficient in
Escrow Agent's discretion to justify doing so, it shall be entitled to tender
into the registry or custody of any court of competent jurisdiction of the State
of California all money or property in its custody or control under this
Agreement, together with such legal pleadings as it shall deem appropriate, and
thereupon be discharged from all further duties and liabilities under this
Agreement.

In the event of any uncertainty of Escrow Agent as to its duties hereunder, it
may refuse to act under the provisions of this Agreement pending order of such
court of competent jurisdiction and it shall have no liability to the Company or
to any other person as a result of such action. Any such legal action may be
brought in such court in California as it shall determine to have jurisdiction
thereof. The filing of any such legal proceedings shall not deprive Escrow Agent
of its compensation earned prior to such filing.

12. All written notices and letters required hereunder to you shall only be
effective if delivered personally or by certified mail, return receipt requested
to Capitol City Escrow, Inc., 3838 Watt Avenue, Suite F-610, Sacramento, CA
95821. All written notices and letters required hereunder to the Manager or the
Company shall only be effective if delivered personally or by certified mail,
return receipt requested to MFP Management LLC, Steven M. Pontes, General
Manager, 414 13th Street, Suite 400, Oakland, CA 94612. All written notices and
letters required hereunder to the Selling Agent shall be only be effective if
delivered personally or by certified mail, return receipt requested, to David
Rice, Vice-president, Rice Pontes Capital, Inc., 2570 San Ramon Valley Blvd.,
Suite A201, San Ramon, CA 94583.

13. This Agreement shall be governed by the laws of the State of California as
to both interpretation and performance.

14. The provisions of this Agreement shall be binding upon the legal
representatives, successors and assigns of the parties hereto.

15. The Company hereby acknowledges that Escrow Agent is serving as escrow agent
only for the limited purposes herein set forth, and hereby agrees that it will
not represent or imply that Escrow Agent, by serving as escrow agent hereunder
or otherwise, has investigated the desirability or advisability of investment in
the Company, or has approved, endorsed or passed upon the merits of the Units or
the Company. The Company and Selling Agent further agree to instruct each of
their representatives, and any other person who may offer Units to persons from
time to time, that they shall not represent or imply that you have investigated
the desirability or advisability of investment in the Units or the Company, or
have approved, endorsed or passed upon the merits of the Units or the Company,
nor shall they use your name in any manner whatsoever in connection with the
offer or sale of the Units other than by acknowledgment that Escrow Agent has
agreed to serve as escrow agent for the limited purposes herein set forth.

16. This Agreement and any amendment hereto may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed to be an
original.

17. In the event that Escrow Agent receives Instruments of Payment (or wired
funds) after the Required Proceeds have been received and the proceeds of the
Escrow Account have been distributed to the Company, it is hereby authorized to
deposit such Instruments of payment to any deposit account as directed by the
Company. The application of said funds into a deposit account directed by the
Company shall be a full acquittance to Escrow Agent and it shall not be
responsible for the application of said funds.

18. Escrow Agent shall be bound only by the terms of this Escrow Agreement and
shall not be bound or incur any liability with respect to any other agreements
or understanding between any other parties, whether or not the Escrow Agent has
knowledge of any such agreements or understandings.

19. Indemnification provisions set forth herein shall survive the termination of
this Agreement.

20. Upon acceptance and distribution of the Required Proceeds as provided in
this Agreement, this Agreement shall terminate and the Escrow Agent shall have
no further responsibility or liability with regard to the terms of this
Agreement.

                                   Ex. 10.1-3
<PAGE>

21. The Escrow Agent has no responsibility for accepting, rejecting or approving
subscriptions, nor does it have any responsibility whatsoever to determine the
authenticity or due authorization for the submission or signing of any
Subscription Agreement.22. This Agreement shall not be modified, revoked,
released or terminated unless reduced to writing and signed by all parties
hereto, subject to the following paragraph.

Should at any time, any attempt be made to modify this Agreement in a manner
that would increase the duties and responsibilities of the Escrow Agent or to
modify this Agreement in any manner which the Escrow Agent shall deem
undesirable, or at any other time, the Escrow Agent may resign by notifying the
Company in writing, by certified mail, and until (i) the acceptance by a
successor escrow agent as shall be appointed by the Company; or (ii) thirty (30)
days following the date upon which notice was mailed, whichever occurs sooner,
the Escrow Agent's only remaining obligation shall be to perform its duties
hereunder in accordance with the terms of the Agreement.

23. The Escrow Agent may resign at any time from its obligations under this
Escrow Agreement by providing written notice to the Company. Such resignation
shall be effective on the date specified in such notice, which shall be not less
than thirty (30) days after such written notice has been given. The Escrow Agent
shall have no responsibility for the appointment of a successor escrow agent.
The Company shall within 20 days designate a successor agent, and the Escrow
Agent shall promptly deliver all funds, Short-term Investments and Instruments
of Payment in its custody or control to the successor agent. Unless otherwise
provided in this Agreement, final termination of this Escrow Agreement shall
occur on the date all funds, Short-term Investments and Instruments of Payment
held in the Escrow Account or otherwise under the custody or control of the Bank
are distributed either (a) to the Company pursuant to paragraph 6 hereof, (b) to
subscribers pursuant to paragraphs 3 and 7 hereof, or (c) to a successor escrow
agent as described herein. The Company shall give notice of the name and address
of the successor escrow agent to each subscriber.

24. The Escrow Agent may be removed for cause by the Company by written notice
to the Escrow Agent effective on the date specified in such notice. The removal
of the Escrow Agent shall not deprive the Escrow Agent of its compensation
earned prior to such removal.

Please sign and return two copies of this letter, which have been signed by the
Company and the Selling Agent, to indicate your acceptance and agreement to the
terms and conditions hereof.

                                     Sincerely yours,

                                     YOSEMITE MORTGAGE FUND II, LLC,
                                     a California limited liability company

                                     By:  MFP MANAGEMENT LLC,
                                          a California limited liability company

                                     By:  /s/ Steven M. Pontes, General Manager
                                          --------------------

Agreed to as of the 1st day of __________, 2002

                                     RICE PONTES, CAPITAL, INC.,
                                     a California corporation

                                     By:  /s/ Anthony Pontes, President
                                          ------------------

The terms and conditions contained above are hereby accepted and agreed to as of
the ___ day of __________, 2002 by:

                                     CAPITOL CITY ESCROW, INC.,
                                     a California corporation

                                     By:  /s/ Donna M. Grady, President
                                          ------------------

Schedule A to Escrow Agreement

                                   Ex. 10.1-4

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