Document:

<PAGE>

                                                                   EXHIBIT 10.31
                                                   [Citibank LOGO]

Citibank, N.A.

399 Park Avenue
6th Floor
New York, NY   10043

                                                   Date:  March 13, 2000

Andrea Hirsch
Executive Vice President
Prodigy Communications Corp.
44 South Broadway
White Plains, NY  10601

Dear Ms. Hirsch:

On behalf of ourselves and our affiliates (collectively, "Citibank"), we are
pleased to submit this proposal to Prodigy Communication Corp. ("Prodigy"), to
structure and arrange the up to $200,000,000 financing (the "Financing")
described in this letter agreement and in the "Indicative Summary of Terms and
Conditions" attached hereto as Annex A (the "Term Sheet") which is incorporated
by reference herein.

Description of Transaction
--------------------------

We would recommend that Prodigy establish a special-purpose, bankruptcy-remote
wholly owned subsidiary [Prodigy Funding Corporation] ("Prodigy Funding").
Prodigy shall initially sell the Contracts, originated over the past 12 months
under the retailer rebate programs, on a true sale basis to Prodigy Funding.
Prodigy Funding will be the issuer of a Variable Funding Note (the "Note").  The
Note will represent an undivided interest in the Receivables generated by the
assets of Prodigy Funding.  We would anticipate that the Note would, initially,
be in an amount of up to US$ 200 million.  As part of this transaction, we
intend to pursue a financial guarantee (the "Financial Guarantee") to wrap the
performance of the Note to achieve a rating of at least AA/Aa2.  The Financial
Guarantee and overall financing will be contingent upon, among other factors, a
performance guarantee provided by SBC Communications, Inc. ("SBC") as detailed
in Annex A.  The target market for this issuance would be one of the Citicorp
administered commercial paper conduits supported by a syndicated liquidity
facility.  We believe this structure would provide Prodigy with unique
structural benefits, as well as attractive pricing and execution.
<PAGE>

     Note:  It is understood by the parties undertaking this letter agreement
     ----
     that Prodigy is currently negotiating the establishment of an operating
     partnership with SBC Communications, Inc. ("SBC").  The proposed purpose of
     this partnership is to join SBC and Prodigy's Consumer and Small Business
     Internet operations.  It is contemplated that Prodigy will act as the
     General Partner within the proposed partnership structure.  The parties
     understand and agree that following the completion of the establishment of
     the proposed partnership, it is Prodigy's intention to transfer all of its
     rights and obligations under the agreement to the operating partnership,
     including but not limited to the ownership of Prodigy Funding.  It is
     further acknowledged that during the establishment of the financing
     structure, all necessary steps will be taken to ensure that the program
     documents will permit the transfer to the operating company and that the
     operating company will be able to comply with such documents.

Indicative Terms
----------------

To meet your initial objective of financing the three-year contract subscribers,
we would recommend that the Note be structured with a 3-year final maturity.  A
Credit Enhancer would be available at this tenor and would allow a placement
into one of the Citicorp administered commercial paper conduits.  Under current
market conditions, we believe that the Note could be placed within one of the
Citicorp administered conduits at an effective spread of 100 bps over one month
LIBOR.  Below is a breakdown of the indicative spread calculation as of
March 10, 2000:

<TABLE>
     <S>                                          <C>         <C>
     Conduit Base Cost versus LIBOR(1)             (8)         bps
     Ongoing Annual Costs
     Program Fee                                   40
     Liquidity Fee(2)                              30
     Dealer Commission(3)                           5
     Ratings Agencies(4)                            1
     Administration Fee                             2
     Surety Cost(5)                                30
     --------------------------------------------------------------
     Average Ongoing Costs                        100          bps
</TABLE>

(1)  Based on Charta Inc. commercial paper issuance cost compared to the 30-day
     LIBOR average.
(2)  Assumes 1-year backstop facility.  Liquidity fee will depend on market
     conditions at the time of issuance and be subject to re-pricing at eat 364-
     day renewal.
(3)  Distribution fee paid by Charta to distribute the CP in the market.
(4)  To monitor the transaction.
(5)  Surety Cost estimate based on initial negotiation with two independent
     surety providers.

Prodigy acknowledges that Citibank's representative are not tax, accounting,
legal or regulatory experts and accordingly can make no representation as to any

                                       2
<PAGE>

tax, accounting, legal or regulatory result.  Prodigy will seek separate advice
regarding such matters from its own qualified advisors.

Not a Commitment
----------------

This letter does not constitute a commitment by Citibank to lend money, to
underwrite the Financing, to purchase securities or otherwise assets, or to
provide financing to Prodigy or obtain financing for Prodigy from others.  The
delivery of such a commitment will be subject to, among other things;
satisfaction of the conditions precedent set forth below.

Conditions Precedent
--------------------

Citibank's obligations hereby and its ability to consummate the Financing
described herein, are expressly subject to the satisfaction of the following:

     (i) completion of such due diligence review as Citibank deems advisable,
         the results of which are satisfactory to Citibank;

     (ii)in Citibank's determination, the absence of any material adverse change
         in the financial markets or in the financial condition or operations of
         Prodigy;

    (iii)negotiation and execution of mutually satisfactory documentation of the
         Financing (collectively, the "Program Documents"), including, without
         limitation, note purchaser agreement, credit agreement, Financial
         Guarantee documentation and the receivables contribution and sale
         agreement;

     (iv) the receipt of a structure shadow rating of at least investment grade
         and an overall transaction rating of at least AA/Aa2 from S&P and
         Moody's respectively;

     (v) the receipt of internal credit approval and such other approvals and
         legal opinion as Citibank may deem necessary or advisable, in form and
         substance satisfactory to Citibank; and

     (vi) any other condition precedent set forth in the Term Sheet.

Fees and Expenses
-----------------

In consideration of the services to be provided by the Arranger hereunder,
Prodigy shall pay the Arranger a structuring fee equal to 0.75% of the aggregate
principal amount of the Note with a minimum structuring fee equal to $1.250
million.  Such fee shall be due and payable only at and upon closing and shall
be deducted from the proceeds of the transaction.

                                       3
<PAGE>

The following are estimates of key expenses for the potential transaction.

<TABLE>
    <S>                                <C>
     Arranger Legal Counsel             US$ 100,000-150,000 (plus disbursements)
     Citicorp out-of-pocket             US$ 15,000
     Information Memorandum
     Production (Syndication)           US$ 7,500
     Collection Agent Gees              US$ 10,000 per annum
     Trustee Legal Expenses             US$ 15,000 (plus disbursements)
     Rating Agency Expenses             US$ 50,000-100,000
     Surety Upfront Fees                US$ 50,000-75,000
</TABLE>

All payments to the Arranger under this Proposal Letter shall be payable in U.S.
dollars in New York free and clear of any set-off, claims and all applicable
withholding, stamp and other similar taxes and of all other governmental charges
of any nature whatsoever.

Recognizing that Citibank is incurring substantial costs and expenses in
connection with the proposal described herein, Prodigy also agrees to reimburse
Citibank on demand for any out-of-pocket expenses incurred by it in performing
its obligations hereunder, including, without limitation, all reasonable fees
and disbursements listed above and counsel for the surety provider, whether or
not the Program Documents are executed or the Financing is consummated or
Citibank's engagement hereunder is terminated, up to $750,000.  Such expenses
will be in addition to any direct expenses incurred by Prodigy in connection
with the Financing, including without limitation, fees and disbursements of
counsel to Prodigy, rating agency fees, and agency and trustees fees.  Prodigy
also agrees to pay o demand all out-of-pocket 3rd party costs and expenses of
Citibank (including, without limitation fees and disbursements of counsel)
incurred in connect with the enforcement of any of its rights and remedies
hereunder.

Termination
-----------

Citibank's engagement hereunder shall terminate on the earlier of (i) the
execution of mutually satisfactory Program Documents, and (ii) the written
notice of Prodigy to Citibank, or of Citibank to Prodigy, that the engagement is
terminated (such date, the "Termination Date").  The obligations of Prodigy
under "Fees and Expenses", "Indemnification" and "Confidentiality" shall survive
termination of Citibank's engagement hereunder, except to the extent, and only
to the extent, such matters are explicitly covered in such Program Documents.

Indemnification
---------------

Prodigy shall indemnify and hold harmless and release each indemnified Party
from and against any losses, claims, damages, liabilities or expenses (including
fees and expenses of counsel), joint and several, resulting from or arising out
of, or in connection with or relating to (i) the Financing or the use of
proceeds therefrom, or (ii) Citibank's engagement hereunder, whether or not the

                                       4
<PAGE>

transactions contemplated hereby are consummated, except to the extent such
loss, claim, damage, liability or expense is found in a final, non-appealable
judgment of a court of competent jurisdiction to have resulted from such
Indemnified Party's gross negligence or willful misconduct or breach of the
obligations of the Indemnified Party under this agreement.  Prodigy further
agrees that no Indemnified Party shall have any liability (whether direct or
indirect, in contract, tort or otherwise) to Prodigy or any of their
shareholders or creditors for or in connection with the transactions
contemplated hereby, except to the extent such liability is found in a final,
non-appealable judgment of a court of competent jurisdiction to have resulted
from such Indemnified Party's gross negligence or willful misconduct or breach
of the obligations of the Indemnified Party under this agreement.  An
"Indemnified Party" means Citibank, each of its affiliates and each special
purpose or receivable securitization company for which Citibank acts as
administrative agent, servicing agent, servicer or in a similar capacity, and
each of the respective officers, director, agents and employees of such
Indemnified Parties.

Confidentiality
---------------

The proposal and structure of the Financing, any related structures developed by
Citibank for Prodigy, any related analyses, computer models, information or
documents, this Agreement, the Term Sheet, the Program Documents, Citibank's
written and oral reports to Prodigy and any related written information
(collectively, "Product Information") constitutes proprietary information of
Citibank. Prodigy agrees:

     (i) to keep all Product Information confidential and to disclose Product
Information only to those of its officers, employees, agents, accountants, legal
counsel and other representatives (collectively "Representatives") who have a
need to know such Product Information for the purpose of assisting in the
negotiation and completion of the Financing:

     (ii) to use the Product Information only in connection with the Financing
and not for any other purpose;

     (iii) to cause its Representatives to comply with these provisions and to
be responsible for any failure of any Representative to so comply.

All information provided to Citibank which, under the circumstances of its
provisions and receipt, would ordinarily be considered confidential shall
similarly be subject to the provisions set forth in subparagraphs (i) through
(iii) and the obligations of non-disclosure contained therein by Citibank and
its representatives.

The provisions of this section shall not apply to Product Information or to
information provided by Prodigy to Citibank that is a matter of general public
knowledge or that has heretofore been or is hereafter published in any source

                                       5
<PAGE>

generally available to the public or that is required to be disclosed by law or
in requested by any regulatory body with jurisdiction over Citibank.

Potential Conflicts; Principal Transactions
-------------------------------------------

Prodigy acknowledges that:

     (i) Citibank may be providing financing or other services to parties whose
interests may conflict with Prodigy; it being understood that consistent with
its long-standing policy to hold in confidence the affairs of its customers,
Citibank will not furnish confidential information obtained from Prodigy to any
of its other customers and will not make available to Prodigy confidential
information that it has obtained or may obtain from any other customers;

     (ii) Citibank is not acting as an agent or fiduciary for Prodigy in
connection with the Financing and Prodigy has the capacity to evaluate and
negotiate the terms of the Financing on an arm's length basis; and

     (iii)  Citibank may act as principal in various aspects of the Financing.

Prodigy waives any claim against Citibank based upon any conflict of interest
that Citibank may have with regard to acting under this Agreement and as a
principal in the Financing, except to the extent that such conflict of interest
results in a breach of Citibank's obligations to Prodigy under this letter
agreement.

Exclusivity
-----------

Prodigy agrees that, during the terms of this agreement, no other person is or
will be appointed, authorized or retained by Prodigy or any of their affiliates
to perform substantially similar services on behalf of Prodigy that the
Arrangers has been engaged to perform hereunder for the proposed securitization
of the ISP contract receivables.  Furthermore, during the period from the date
hereof through the date which is 6 months after the date hereof, Prodigy will
not, and will cause its affiliates not to, initiate, solicit or enter into any
dissuasions or negotiations looking toward the issuance, offering, or sale of
the Notes, or any other substantially similar security, to any third parties,
except through the Arrangers.  In the event Prodigy receives any inquiry
concerning the Financing during such period, Prodigy will promptly inform the
Arranger of such inquiry.

Additionally, for a period of one year from the date of this agreement, Prodigy
agrees that Citibank shall have the right of first refusal to act as sole agent
for the next substantially similar financing transaction undertaken by Prodigy.

                                       6
<PAGE>

Cooperation
-----------

It is understood that Prodigy will furnish Citibank with all information and
data that Citibank shall reasonably deem appropriate in connection with its
engagement hereunder.  Prodigy agrees to do those things that are reasonable and
necessary to assist Citibank to facilitate the consummation of the Financing.
Prodigy recognizes and confirms that Citibank, in acting pursuant hereto, will
be using information in public reports and other information provided by others,
including information provided by Prodigy and that Citibank does not assume
responsibility for the accuracy or completeness of such information.

Complete Agreement; Amendments; Governing Law
---------------------------------------------

This Agreement sets forth the entire understanding of the parties relating to
the subject matter hereof and supersedes and cancels any prior communications,
understandings and agreements between the parties relating to the subject matter
hereof.  This Agreement may not be amended or modified except in writing.  The
terms of this Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without reference to the conflicts of laws
provisions thereof.

If the foregoing terms meet with your approval, please indicate your acceptance
by signing and returning the attached copy of this letter to us no later than
March 20, 2000.

Sincerely,

CITIBANK N.A. NEW YORK

By:     /s/ Michael Fey
        ---------------
Title:  Michael Fey-Vice President

Date:

ACCEPTED AND AGREED

PRODIGY COMMUNICATIONS CORP.

By:     /s/ Andrea S. Hirsch
        ---------------------------
        Andrea Hirsch
        Title:  EVP General Counsel

Date:  3/16/00
cc:  Ken Domnitz, Prodigy

                                       7
<PAGE>

                                March 13, 2000

                   Prodigy Communications Corporation, Inc.

                      Receivables Securitization Program

             Preliminary Summary of Principal Terms and Conditions
               (Not a Commitment - For discussion purposes only)

<TABLE>
     <S>                                <C>
     Program:                            Revolving transfer of an undivided
                                         interest in receivables (the
                                         "Receivables") arising under certain
                                         contracts (the "Contracts") between
                                         Prodigy Communications Corp.
                                         ("Prodigy") and various consumer
                                         obligators (the "Subscribers") in
                                         connection with Prodigy's computer
                                         purchase rebate program. Payments by
                                         the Subscribers under the Contracts
                                         will be due monthly over a period of
                                         one, two, or three years unless sooner
                                         terminated. The maximum tenor of the
                                         Contracts is three years.

     Originator:                         Prodigy shall initially transfer all of
                                         the contracts originated under the Best
                                         Buy rebate program, which meet the
                                         eligibility criteria, on a true sale
                                         basis to the Issuer.

     Issuer:                             [Prodigy Funding Corp.] ("Prodigy
                                         Funding"); Prodigy Funding will be
                                         established as a special-purpose,
                                         bankruptcy-remote wholly-owned
                                         subsidiary of Prodigy or its
                                         successors. The Issuer will issue the
                                         Variable Funding Note (the "Note"),
                                         representing an undivided interest in
                                         the Receivables generated by the assets
                                         of Prodigy Funding, to the Purchaser
                                         pursuant to the Note Sale Agreement.
                                         Opinions of law will be provided to
                                         conform the separateness of Prodigy
                                         from the Issuer, the true sale nature
                                         of the transfer, and that the assets
                                         transferred to the Issuer would not be
                                         consolidated with the estate of Prodigy
                                         in the case of a bankruptcy or
                                         insolvency event with respect to
                                         prodigy.

     Credit Enhancement:                 To be in the form of:

                                         . Overcollateralization of anticipated
                                           future receipts at a level to be
                                           determined following due diligence
                                           and of sufficient debt service
                                           coverage to meet
</TABLE>

                                      A-1
<PAGE>

<TABLE>

     <S>                                 <C>
                                         . both S&P's and Moody's minimum
                                           investment grade standards on a stand
                                           alone basis;

                                         . A performance guarantee provided by
                                           SBC Communications Corp. ("SBC")
                                           that, in the event Prodigy becomes
                                           unable to continue to provide its
                                           service obligations under the
                                           Contracts, SBC shall either (a)
                                           provide prodigy's service obligations
                                           directly, or (b) replace Prodigy with
                                           a substitute ISP, as allowed by the
                                           Contracts, acceptable to the program
                                           agent or its assignees;

                                         . A financial guarantee provided by
                                           either a monoline insurer or a re-
                                           insurance company whose rating shall
                                           be at least AA/A12 by S&P and Moody's
                                           respectively.

                                         . Additional credit enhancement in the
                                           form of an affirmative pledge by
                                           Prodigy and its successors to replace
                                           defaulted Receivables with "month to
                                           month" subscriber cash flows to the
                                           extent necessary to maintain the
                                           minimum investment grade shadow or
                                           ratings required by from S&P and
                                           Moody's.

     Purchaser:                          A multi-seller receivables
                                         securitization company (each, an "RSC")
                                         administered by Citicorp North America,
                                         Inc., and/or its eligible assignees,
                                         including the Liquidity Provider.

     Program Agent:                      Citicorp North America, Inc. will act
                                         as the Purchaser's agent ("Program
                                         Agent") to administer the Program.

     Receivables:                        The Receivables represent either (i)
                                         scheduled payments, cancellation fees,
                                         late fees and other amounts due
                                         (collectively, the "Contractual
                                         Payments") under the Contracts from the
                                         Subscribers who, as a result of
                                         receiving a $400, $250, or $100
                                         computer purchase rebate, subscribe to
                                         "Prodigy", an ISP service provided by
                                         Prodigy for a period of three, two or
                                         one years respectively, with a regular
                                         monthly payment of [either $19.95 or
                                         $21.95], (ii) payments [less
                                         interchange fees] due from various
                                         credit card companies (e.g. MasterCard,
                                         VISA etc.) approved by the Program
                                         Agent (the "Credit Card Companies") who
                                         bill and collect all or a part of the
                                         Contractual
</TABLE>

                                      A-2
<PAGE>

<TABLE>
     <S>                                <C>
                                         Payments from the Subscribers, or (iii)
                                         Payments due from all other "month to
                                         month" Prodigy subscribers.

     Facility Size:                      Up to $200 million, subject to due
                                         diligence. The collection of
                                         Receivables will be used to repay the
                                         Program.

     Revolving Period:                   The period commencing on the closing
                                         date and ending on the date (the
                                         "Termination Date") which occurs six
                                         months thereafter, or sooner if agreed
                                         to by all parties to the Program
                                         documents.

     Maturity Date:                      Three years from the Termination Date.

     Transfer Date:                      With regard to any Receivable, the date
                                         such Receivable is transferred under
                                         the Program. The Initial transfer is
                                         anticipated to occur on or before
                                         [May 31, 2000].

     Servicer:                           Prodigy. The duties of the Servicer
                                         will include billing, collecting, re-
                                         billing, enforcement and pursuit of
                                         past due payments on any Receivables,
                                         funds disbursement, and periodic
                                         reporting. Prodigy may sub-contract all
                                         or part of its servicing obligations if
                                         it remains primarily liable therefore.
                                         The Program Agent may, under certain
                                         circumstances, terminate Prodigy as
                                         Servicer and appoint a new Servicer.

     Servicer Fee:                       As Servicer, Prodigy will receive a fee
                                         of [$ ] per month per Subscriber
                                         payable by the Issuer unless an Event
                                         of Termination has occurred. If Prodigy
                                         is not the Servicer, a market rate for
                                         such Servicer, capped at [ %] of such
                                         successor Servicer's actual cost of
                                         collection, will be deducted from cash
                                         proceeds from the Receivables. The
                                         Servicer Fee will be set following
                                         rating agency review and negotiation
                                         with a financial guarantor.

     Security Interest:                  The Purchaser will be conveyed, in
                                         connection with the purchaser of the
                                         Variable Funding Note, a first priority
                                         perfected ownership/security interest
                                         in the Receivables, the proceeds
                                         thereof, and any security related
                                         thereto.

     Settlement Procedures:              Provided no Event of Termination has
                                         occurred, monthly collections are
                                         allocated as follows: (i) to the
                                         Purchaser for interest and fees, (ii)
                                         to the Servicer for
</TABLE>

                                      A-3
<PAGE>

<TABLE>
     <S>                                <C>
                                         the Servicer Fee and (iii) (1) prior to
                                         the Termination Date, to the Originator
                                         to reinvest in new Eligible Receivables
                                         to the extent such Eligible Receivables
                                         exist, otherwise to the Purchaser for
                                         repayment of outstanding capital or (2)
                                         after the Termination Date, to the
                                         Purchase for repayment of the aggregate
                                         amount of outstanding Capital and other
                                         amounts owed to the purchaser.

                                         Upon the occurrence, and following an
                                         Event of Termination or a "SBC Event"
                                         (to be defined following the
                                         negotiation of the SBC Performance
                                         Guarantee), monthly collections are
                                         allocated as follows: (i) to the
                                         Purchaser for interest and fees, (ii)
                                         to the Purchaser for repayment of the
                                         aggregate amount of outstanding Capital
                                         and other amounts owned to the
                                         purchaser, and (iii) after Capital is
                                         paid in full, to the Servicer for the
                                         Servicer Fee.

     Eligible Receivables Due            Any Receivables:
     from Subscribers:
                                         . Which arise under a valid and binding
                                           Contract and which at the time of the
                                           transfer of such Receivable conveyed
                                           good and marketable title thereto
                                           free and clear of all liens.

                                         . With regard to which the related
                                           Subscriber is not affiliated with the
                                           Issuer or Prodigy.

                                         . Which will at all times be the legal
                                           and assignable payment obligation of
                                           the Subscriber of such Receivable,
                                           enforceable against such Subscriber
                                           in accordance with its terms.

                                         . Which arises under a Contract which
                                           (I) is fully payable no later than
                                           [35] months after its related
                                           Transfer Date and (ii) requires
                                           payments to be made no less
                                           frequently than monthly.

                                         . Which, on the Transfer Date, is not a
                                           Defaulted Receivable.

                                         . Which, together with the contract
                                           related thereto, does violate any
                                           law or regulation.
</TABLE>

                                      A-4
<PAGE>

<TABLE>
     <S>                                 <C>
                                         . Which is (a) freely transferable and
                                           (b) arises under a Contract which is
                                           (i) a legal, valid and binding
                                           obligation of the Issuer and the
                                           Subscriber enforceable in accordance
                                           with its terms, (ii) in form and
                                           substance satisfactory to the Program
                                           Agent.

                                         . Which is an "account" as defined
                                           within the UCC.

                                         . Which is denominated and payable by
                                           approved Credit Card Companies in
                                           United States dollars in the United
                                           States to Prodigy who in turn
                                           deposits into Purchaser's Accounts.

                                         . Which is not the subject of any
                                           dispute, offset, counterclaim or
                                           defense.

                                         . Which complies with Prodigy's credit
                                           and collection policy.

                                         . Which Represents the sale of goods or
                                           services per Section 3(c)(5) of the
                                           Investment Company Act of 1940 and
                                           which arises out of a current
                                           transaction per Section 3(a)(3) of
                                           the Securities Act of 1933.

                                         . Other, as applicable.

     Eligible Receivables Due            To be determined after due diligence
     from Credit Card Companies:

     Defaulted Subscriber Receivable:    All Receivables outstanding (whether or
                                         not then due) under any Contract (i)
                                         that has Receivables or part thereof
                                         which remain unpaid for more than [60]
                                         days (subject to due diligence) from
                                         the original due date, (ii) the
                                         Subscriber under whish is in bankruptcy
                                         or similar proceedings, (iii) which,
                                         consistent with Prodigy's credit and
                                         collection policy, has been or should
                                         have been written off as uncollectable,
                                         or (iv) as to which there is a breach
                                         in the underlying contract.

     Defaulted Credit Card Company       To be determined after due diligence
     Receivable:

</TABLE>

                                      A-5
<PAGE>

<TABLE>
     <S>                                 <C>
     Delinquent Subscriber Receivable:   All Receivables outstanding (whether or
                                         not then due) that are not Defaulted
                                         Receivables under any Contract (i) that
                                         has Receivables or part thereof which
                                         remain unpaid for more than [30] days
                                         from the original due date or (ii)
                                         which, consistent with Prodigy's credit
                                         and collection policy, has been or
                                         should be classified as delinquent.

     Delinquent Credit Card Company      To be determined after due diligence
      Receivable:

     Covenants:                          Customary covenants with respect to the
                                         issuer and Prodigy, including:

                                         . Issuer will furnish to Program Agent
                                           a monthly report which will include,
                                           without limitation, information with
                                           regard to agings, defaults,
                                           collections, deemed collections,
                                           Subscriber volumes and Subscriber and
                                           Credit Card Company cancellations;
                                           etc.

                                         . Issuer and Prodigy will maintain all
                                           documents and records necessary with
                                           respect to the collection of the
                                           Receivables.

                                         . Issuer and Prodigy will provide
                                           certified quarterly and annual
                                           financial statements. Prodigy will
                                           provide certified quarterly and
                                           audited annual financial statements.
                                           Prodigy and Issuer will provide such
                                           other information as Program Agent
                                           may reasonably request.

                                         . Issuer and Prodigy will permit audits
                                           of information related to the
                                           Program.

                                         . Issuer will maintain its separate
                                            existence from Prodigy.

                                         . Issuer will only accept transfers of
                                           Receivables from Prodigy or its
                                           successors.
</TABLE>

                                      A-6
<PAGE>

<TABLE>
     <S>                                 <C>
                                         . Prodigy and Issuer will perform and
                                           comply with the terms and conditions
                                           specified in the Program documents,
                                           and shall maintain such documents in
                                           full force and effect.

                                         . Issuers and Prodigy or successors
                                           will not modify its organizational
                                           documents in such a way as to have an
                                           adverse effect on Purchaser.

                                         . Issuer will not incur debt, except as
                                           permitted under the Program
                                           documents.

                                         . Issuer will not make distributions,
                                           except as permitted under the Program
                                           documents.

                                         . Issuer will not enter into
                                           transactions with affiliates or third
                                           parties, except as permitted under
                                           the Program documents.

                                         . Neither Issuer nor Prodigy will sell,
                                           assign or otherwise encumber any
                                           Receivable except as contemplated
                                           under the Program documents.

                                         . Prodigy and the Issuer will each
                                           comply with its credit and collection
                                           policy and will not materially change
                                           its credit and collection policy,
                                           except as specifically permitted by
                                           the Program Agent.

                                         . Prodigy and the Issuer will comply
                                           with all terms of the Contracts.

                                         . Neither Prodigy nor the Issuer will
                                           cancel, terminate, amend, modify or
                                           waive any term or condition of any
                                           Contract related to the receivables,
                                           except as specifically permitted by
                                           the Program Agent.

                                         . Prodigy will offer to the Subscribers
                                           the same upgrades to their level of
                                           service that Prodigy provides to
                                           their other on-line customers at no
                                           higher price.

                                         . Prodigy, or its successor, must
                                           either (a) directly provide the
                                           Prodigy service or (b) wholly own the
                                           entity which provides the Prodigy
                                           service, in each case for the
                                           duration of the Contracts and at
                                           least at the level of service
                                           presently provided.

</TABLE>

                                      A-7
<PAGE>

<TABLE>
     <S>                                 <C>
                                         . Prodigy, or its successor, must own,
                                           directly or indirectly, 100% of the
                                           capital stock of the Issuer and
                                           maintain control of them.

                                         . Other, as applicable.

     Events of Termination:              Events of Termination shall result in
                                         acceleration of the transaction via a
                                         100% trapping of cash to be used to pay
                                         down the facility in advance of
                                         scheduled amortization. Upon the
                                         occurrence of an Event of Termination
                                         the revolving nature of the facility
                                         shall cease a no new contract
                                         purchasers shall occur. The Events of
                                         Termination shall include:

                                         . Servicer fails to make payments when
                                           due (a cure period will be negotiated
                                           within the program documents).

                                         . Any representation or warranty or
                                           Issuer Report or any information is
                                           materially false or incorrect.

                                         . Issuer fails to perform or observe
                                           any other term or covenant.

                                         . The parent fails to pay other debt
                                           with a principal balance in excess of
                                           [ ] million or defaults under any
                                           other debt agreement or instrument
                                           with a principal balance in excess of
                                           [ ] million.

                                         . The Note purchased by Purchaser
                                           ceases to create a valid and
                                           perfected first priority ownership
                                           interest in the Pool Receivables.

                                         . Bankruptcy or insolvency of Issuer or
                                           the Parent.

                                         . 3 month rolling average Default Ratio
                                           exceeds [ ]; 3 month rolling average
                                           Dilution Ratio exceeds [ ]; 3 month
                                           rolling average Loss-to-Liquidation
                                           Ratio exceeds [ ]; and 3 month
                                           rolling average Delinquency Ratio
                                           exceeds [ ]. These triggers will be
                                           set as part of the negotiation of the
                                           program documents.

                                         . Material adverse change in financial
                                           condition or operations of Issuer or
                                           in the collectibility of Pool
                                           Receivables.
</TABLE>

                                      A-8
<PAGE>

<TABLE>
     <S>                                  <C>
                                          . SBC senior unsecured long term debt
                                           rating falls below either, BBB by
                                           S&P, or Baa2 by Moody's.

                                         . Others to be determined in the course
                                           of due diligence including a minimum
                                           debt service coverage factor to be
                                           set based upon rating agency
                                           requirements.

     Conditions Precedent:               Completion and execution of all
                                         documentation delivered and
                                         satisfactory to the Program Agent,
                                         including filing of UCC-1 financing
                                         statements plus:

                                         . Representations and warranties are
                                           true.

                                         . No event of Termination has occurred.

                                         . The Program Agent has received such
                                           other approvals as reasonably
                                           requested.

                                         . Satisfactory reviewed by the Program
                                           Agent of Servicer's billing,
                                           collection and reporting systems and
                                           Pool Receivables.

                                         . Tue sale, enforceability, and other
                                           necessary opinions.

                                         . Consents of third parties as
                                           appropriate.

                                         . Other, as applicable

     Representations and                 Customary representations and
     Warranties:                         warranties of the Issuer and Prodigy
                                         found in similar rated bank or
                                         securitization transactions,
                                         including:

                                         . Due organization, qualification, etc.
                                           of Issuer and Prodigy.

                                         . Due authorization, execution,
                                           delivery and performance of the
                                           Program documents by the Issuer and
                                           Prodigy, respectively, which
                                           establishes legal, valid, and binding
                                           obligations of Issuer and Prodigy
                                           respectively, with respect thereto.
</TABLE>

                                      A-9
<PAGE>

<TABLE>
     <S>                                 <C>
                                         . The Note Purchase Agreement will
                                           evidence the transfer of a first
                                           priority perfected ownership interest
                                           in the Receivables to the Purchaser.

                                         . All filings and recordings required
                                           to perfect the Interest of the
                                           transferor and the Purchaser in the
                                           Receivables, including the Contracts
                                           sold to the issuer, and any related
                                           security shall have been accomplished
                                           and are in full force and effect.

                                         . Each Receivable is an Eligible
                                           Receivable and is free of adverse
                                           claims.

                                         . Transfer of the Receivables by
                                           Prodigy to issuer is for reasonably
                                           equivalent value.

                                         . Invoices and/or credit card billing
                                           statements with respect to each
                                           Receivable will be sent in accordance
                                           with the Receivables Transfer
                                           Agreement.

                                         . All information furnished by Transfer
                                           or Prodigy to the Program Agent (and
                                           other transaction parties), whether
                                           on or before the closing date, (i) is
                                           true and accurate in all material
                                           respects, (ii) does not contain any
                                           materially misleading statements, and
                                           (iii) does not omit material facts.

                                         . No material adverse change in the (i)
                                           collectibility of Receivables or (ii)
                                           operations or ability to perform its
                                           obligations under the program
                                           documents, of Issuer or Prodigy.

                                         . Prodigy has complied with their
                                           credit and collection policy and such
                                           policy has not changed.

                                         . Neither the Issuer nor Prodigy will
                                           cause a voluntary bankruptcy of
                                           Issuer so long as Issuer is solvent.

                                         . Issuer and Prodigy are solvent.

                                         . Issuer is not an "investment company"
                                           within the meaning of the Investment
                                           Company Act of 1940, as amended.

                                         . Other, as applicable.
</TABLE>

                                     A-10
<PAGE>

<TABLE>
     <S>                                 <C>
     Indemnities:                        Prodigy shall jointly and severally
                                         indemnify the parties to the
                                         transaction, (each an "Indemnified
                                         Party") against all third party
                                         liabilities, expenses, damages or
                                         losses ("Losses") associated with the
                                         Program, excluding however, (i) Losses
                                         to the extent resulting from the gross
                                         negligence or willful misconduct of the
                                         Indemnified Party, (ii) income,
                                         franchise or similar taxes or (iii)
                                         recourse (except as herein
                                         contemplated) for uncollectible
                                         Receivables.

                                         Without limiting the foregoing, Prodigy
                                         shall indemnify the Indemnified Parties
                                         for all Losses resulting from:

                                         . Misrepresentations and omissions.

                                         . Any reduction or offset in the amount
                                           owed by a Subscriber or a Credit Card
                                           Company.

                                         . Failure to vest in the Purchaser for
                                           a first priority perfected ownership
                                           interest in the Receivables.

                                         . Failure by Prodigy or the Servicer to
                                           perform the servicing duties or other
                                           obligations under the Program
                                           documents or to comply with any term
                                           or condition thereunder.

                                         . Any increase in the fees (including
                                           without limitation, intercharge fees)
                                           payable by Prodigy to the Credit Card
                                           Companies.

                                         . Commingling of funds.

                                         . Others as may be required upon
                                           completion of due diligence.

     Assignability:                      The Purchaser and its assignees may
                                         each assign, in whole or in part, its
                                         interest in the Notes pursuant to the
                                         Program documents. Neither Prodigy, nor
                                         the issuer shall be permitted to assign
                                         any of its rights or obligations
                                         pursuant to the Program documents
                                         without the prior written consent of
                                         the Program Agent.

     Governing Law:                      The laws of State of New York.
</TABLE>

                                     A-11
<PAGE>

<TABLE>
     <S>                                 <C>
     Costs and Expenses:                 All out-of-pocket costs and expenses of
                                         Citibank and its affiliates associated
                                         with the preparation, execution and
                                         delivery, waivers and amendments,
                                         administration and enforcement of the
                                         Program including fees and expenses of
                                         counsel and auditing fees are to be
                                         paid by Prodigy regardless of whether
                                         the Program closes.
</TABLE>

                                     A-12<PAGE>

                          PURCHASE AND SALE AGREEMENT

                                By and Between

                                 181 Investors

                                   -Seller-

                                      and

                             TENFOLD CORPORATION,
                            a Delaware corporation

                                    -Buyer-

                               February 14, 2000

<PAGE>

                          PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made as of February
14, 2000, by and between 181 INVESTORS, a California general partnership
("Seller"), and TEN FOLD CORPORATION, a Delaware corporation (the "Buyer").

                                   RECITALS
                                   --------

     A.   Seller owns all of that certain real property located in San Rafael,
Marin County, California, commonly known as at 171 and 181 Carlos Drive, as more
particularly described on Exhibit A attached hereto (the "Real Property").
                          ---------

     B.   Seller desires to sell to Buyer, and Buyer desires to purchase from
Seller, said Real Property and all rights and interests appurtenant thereto, all
on the terms and conditions set forth herein.

     NOW THEREFORE, in consideration of the respective agreements hereinafter
set forth, Seller and Buyer agree as follows:

     1.   PROPERTY INCLUDED IN SALE  Seller hereby agrees to sell and convey to
          -------------------------
Buyer, and Buyer hereby agrees to purchase from Seller, the following:

          1.1. Real Property  All of the land comprising the Real Property, as
               -------------
described on Exhibit A attached hereto.
             ---------

          1.2. Appurtenances  All rights, privileges and easements appurtenant
               -------------
to the Real Property to the extent owned by Seller, including, without
limitation, all minerals, oil, gas and other hydrocarbon substances on the Real
Property, as well as all air rights, solar rights, water, water rights and water
stock relating to the Real Property, and all easements, rights-of-way or other
appurtenances used or intended to be used in connection with the beneficial use
and enjoyment of the Real Property (the "Appurtenances").

          1.3. Improvements  All improvements and fixtures located on the Real
               ------------
Property (the "Improvements").  The parties acknowledge that the improvements
include, without limitation, two (2) - two (2) story wood-frame office buildings
containing approximately 13,714 rentable square feet in the aggregate.  This
recital is not a representation of square footage and the purchase price is not
predicated upon the amount of square footage.

          1.4. Permits, Development Approvals and Fees  All permits and
               ---------------------------------------
development rights, agreements, entitlements and approvals relating to the Real
Property.

          1.5. Personal Property  All personal property used in connection with
               -----------------
or located on the Real Property, including, but not limited to, the items
specifically listed in Exhibit B attached hereto.
                       ---------

     All of the items described in Sections 1.1 through 1.5 above are
hereinafter collectively called the "Property."
<PAGE>

     2.   PURCHASE PRICE
          --------------

          2.1  The purchase price for the Property shall be $3,100,000.00
("Purchase Price").

          2.2  Buyer agrees to deposit One Hundred Thousand Dollars
($100,000.00) in cash with the Title Company within three (3) business days
following Seller's execution of this Agreement. Funds deposited with the Title
Company pursuant to this Section 2.2, together with all earnings from the
investment of those funds while they are held by the Title Company, are referred
to in this Agreement as the "Deposit." All sums comprising the Deposit shall be
held in an interest-bearing account and interest accruing thereon shall be held
for the account of Buyer. In the event the sale of the Property as contemplated
hereunder is consummated, the Deposit (plus interest accrued thereon) shall be
credited against the Purchase Price. In the event the sale of the Property is
not consummated because of the failure of any condition or any other reason
except a default under this Agreement solely on the part of Buyer, the Deposit
(plus interest accrued thereon) shall immediately be returned to Buyer. If said
sale is not consummated because of a default under this Agreement solely on the
part of Buyer, the Deposit, but not the interest accrued thereon, shall be paid
to and retained by Seller as liquidated damages. THE PARTIES HAVE AGREED THAT
SELLER'S ACTUAL DAMAGES, IN THE EVENT OF A DEFAULT BY BUYER, WOULD BE EXTREMELY
DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY PLACING THEIR INITIALS
BELOW, THE PARTIES ACKNOWLEDGE THAT THE DEPOSIT HAS BEEN AGREED UPON, AFTER
NEGOTIATION, AS THE PARTIES' REASONABLE ESTIMATE OF SELLER'S DAMAGES AND AS
SELLER'S EXCLUSIVE REMEDY AGAINST BUYER, AT LAW OR IN EQUITY, IN THE EVENT OF A
DEFAULT UNDER THIS AGREEMENT SOLELY ON THE PART OF BUYER.

              /s/ RPH                      /s/ PFW /s/ AC /s/ ARN /s/ IM
          ----------------                 -----------------------------
          Buyer's Initials                       Seller's Initials

     3.   TITLE TO THE PROPERTY  On the Closing Date (as hereinafter defined),
          ---------------------
Seller shall convey to Buyer marketable and insurable fee simple title to the
Real Property, Appurtenances and Improvements by duly executed and acknowledged
grant deed in the form attached hereto as Exhibit B (the "Deed"), free and clear
                                          ---------
of any known exceptions save and except those to which Buyer has not objected
pursuant to this Agreement.  Evidence of delivery of marketable and insurable
fee simple title shall be the issuance by Title Company of an ALTA Owner's
Policy of Title Insurance (the "Title Policy") in the amount of the Purchase
Price, insuring fee simple title to the Real Property and Appurtenances in the
Buyer.

          3.1. Buyer, during the Review Period but in no event later than ten
(10) business days following delivery of the preliminary title report covering
the Property and meeting the requirements of Section 6.1(a) below, shall give
written notice to Seller of any exception to title to which Buyer objects.

          3.2. If Seller is unable to (or unwilling, based upon the cost of
removing an exception being disproportionate in relation to the Purchase Price)
remove the objectionable exception(s), Seller shall give notice to Buyer,
specifying the exception and the reason for Seller's inability or unwillingness
to remove same, within five (5) business days following

                                       2
<PAGE>

Buyer's notice given pursuant to Section 3.1 above, and Buyer may, within seven
(7) business days of such notice, Buyer may either to waive its objection to the
exception(s), or terminate this Agreement, in which event all deposits shall be
refunded to Buyer. Buyer's election to waive its objection to the exception or
terminate shall be delivered in writing to Seller no more than seven (7)
business days from delivery of Seller's notice.

          3.3. In the event of an exception to title to which Buyer has objected
and which Seller is willing to remove, but is unable to remove prior to close of
escrow, or any extension thereof to which both parties have agreed, Buyer may
withdraw the exception, or terminate this Agreement, in which event all deposits
shall be refunded to Buyer.  Buyer agrees to extend closing of escrow, once, for
a period of no less than and no more than 20 calendar days, in the event such
additional time may, in Seller's reasonable opinion, enable Seller to remove the
excepted exception.

     4.   CONDITIONS TO CLOSING
          ---------------------

     The following conditions are conditions precedent to Buyer's obligation to
purchase the Property:

          4.1. Approval of Property  Buyer shall have approved the Property
               --------------------
pursuant to Article 6 below.

          4.2. Financing  Buyer's procurement, on or before the expiration of
               ---------
the Review Period, of a loan commitment to finance a portion of Buyer's purchase
of the Property at terms acceptable to Buyer in its sole and absolute
discretion.

          4.3. Title Policy  Title Company shall issue the Title Policy to Buyer
               ------------
at the closing of the purchase and sale of the Property (the "Closing").

          4.4. Estoppel Certificates  Seller delivers fully executed estoppel
               ---------------------
certificates in form and substance reasonably satisfactory to Buyer on or from
each tenant under the Leases (defined below) on or before the Closing Date
(defined below)

          4.5. Representations and Warranties  All of Seller's representations
               ------------------------------
and warranties contained in or made pursuant to this Agreement shall have been
true and correct when made and shall be true and correct as of the Closing Date,
as defined below.

          4.6. Board Approval  Buyer's Board of Directors shall, on or before
               --------------
the expiration of the Review Period, have authorized the purchase of the
Property by Buyer.

          The foregoing conditions in this Section 4 are intended solely for the
benefit of Buyer.  If any of the foregoing conditions are not satisfied, Buyer
shall have the right at its sole election either to waive in writing the
condition in question and proceed with the purchase or, in the alternative,
terminate this Agreement.

                                       3
<PAGE>

     5.   THE CLOSING
          -----------

          5.1. Closing Date  The Closing hereunder shall be consummated through
               ------------
an escrow ("Escrow") to be opened with Title Company.  All of the documents
required for the Closing and the funds required for the payment of the Purchase
Price shall be delivered into the Escrow on or before the date that is thirty
(30) days following Buyer's approval of the Property pursuant to Article 6 below
(provided, that if such thirtieth (30/th/) day is a weekend or holiday then such
documents and/or sums shall be due on the next succeeding business day), or such
other date prior thereto as Buyer and Seller may mutually agree in writing (the
"Closing Date").  Such date may not be extended without the approval of both
Seller and Buyer, except as otherwise expressly provided in this Agreement.  The
Closing shall commence on the Closing Date and shall be completed on the Closing
Date or the business day following the Closing Date upon recordation by the
Title Company of the Deed and disbursement by the Title Company of the Purchase
Price to Seller.  Buyer and Seller shall each submit to the Title Company, not
less than two (2) business days prior to the Closing Date, escrow instructions
consistent with the provisions of this Agreement.

          5.2. Seller's Documents  At the Closing, Seller shall deliver to Buyer
               ------------------
through escrow the following:

               (a) a duly executed and acknowledged Deed;

               (b) a duly executed counterpart of an Assignment of Permits and
Other Intangible Property in the form of Exhibit D attached hereto;
                                         ---------

               (c) a duly executed Bill of Sale in the form of Exhibit E
                                                               ---------
attached hereto;

               (d) a duly executed Affidavit of Non-foreign Status in the form
of Exhibit F attached hereto;
   ---------

               (e) estoppel certificates, duly executed by the tenant under each
of the Leases, in the form of Exhibit G hereunder; and
                              ---------

               (f) a duly executed Assignment of Leases in the form of Exhibit H
                                                                       ---------
attached hereto.

               (g) any other documents, instruments or agreements called for
hereunder which have not previously been delivered.

          Buyer may waive compliance on Seller's part under any of the foregoing
items by an instrument in writing.

          5.3. Buyer's Documents and Funds  At the Closing, Buyer shall deliver
               ---------------------------
to Seller through escrow the following:

               (a) the Purchase Price, subject to the prorations and credits
hereinafter provided for; and

                                       4
<PAGE>

               (b) any documents, instruments or agreements expressly called for
hereunder which exist and have not previously been delivered.

          Seller may waive compliance on Buyer's part under any of the foregoing
items by an instrument in writing.

          5.4. Other Documents  Seller and Buyer shall each deposit such other
               ---------------
instruments as are reasonably required by the escrow holder or otherwise
required to close the escrow and consummate the purchase of the Property in
accordance with the terms hereof.

          5.5. Prorations  Rents, real property taxes, and other items of income
               ----------
and expense of ownership of the Property shall be prorated as of 12:01 a.m. on
the date the Deed is recorded on the basis of a 365-day year.

          5.6. Closing Costs  Transfer taxes applicable to the sale of the
               -------------
Property (if any), the fee for the Title Policy, escrow charges and other costs
of the Closing shall be paid one-half (1/2) by the Seller and one-half (1/2) by
the Buyer.  Each party shall pay its own attorneys' fees in connection with the
sale.

     6.   REVIEW PERIOD
          -------------

          6.1. To assist Buyer in evaluating the Property, Seller will deliver
to Buyer within ten (10) calendar days after the date of Seller's execution and
delivery of this Agreement to Buyer (the date of Buyer's actual delivery being
referred to herein as the "Delivery Date") the following (collectively, the
"Review Materials"):

               (a) A preliminary title report and offer of title commitment,
issued by the Title Company, indicating the condition of title to the Property
(the "Preliminary Report"), accompanied by legible copies of all documents
listed as exceptions to coverage in the Title Report.

               (b) Copies of (i) all maintenance, repair and operating records
relating to the maintenance, repair and operation of the Property which have
been maintained by Seller in the business records of Seller in the ordinary
course of business, (ii) all documents evidencing permits, licenses, approvals,
utility rights, development rights and similar rights relating to ownership,
operation and/or maintenance of the Property, if any, whether granted by
governmental authorities or private persons that are in the possession of
Seller, (iii) all assignable warranties and guaranties covering all or any part
of the Property that are in the possession of Seller, and (iv) any leases or
occupancy agreements affecting the Property.

               (c) A copy of ad valorem tax bills (both real and personal
property taxes) for the Property for the current tax year (if available to
Seller) as well as the immediately preceding tax year.

               (d) To the extent not already provided to Buyer, copies of all
environmental reports and test results for the Property or neighboring property
performed by or for Seller or any of its affiliates or Seller's property manager
or otherwise in Seller's possession.

                                       5
<PAGE>

               (e) All service contracts, maintenance contracts, management
contracts, certificates of occupancy, audits of the compliance of the
Improvements with applicable laws (including, without limitation, the Americans
with Disabilities Act), warranties, soils and geologic reports, hazardous
materials reports or audits, insurance policies, operating statements for the
Property for the prior two (2) years.

               (f) All existing and pending leases (and any amendments,
modifications, and letter agreements relating  thereto) affecting the Property,
as well as a current rent roll for the Property, listing for each tenant the
name, rent, obligation for reimbursement for expenses, amount of deposit and
prepaid rent, if any, lease commencement date, lease termination date, lease
options, option rent, and cost of living or other rent escalation clauses; and

               (g) All "as-built" plans and specifications for the Property,
which shall include, without limitation, any mechanical, electrical, HVAC,
plumbing and life safety system plans, specifications and drawings, and service
records for the building systems in the Improvements and the operating and
maintenance statements and manuals therefor.

     All Review Materials shall be delivered by Seller to Buyer at one time,
under cover of a letter signed by Seller specifying by category the documents
provided and containing Seller's representation that due diligence was used in
the effort to locate the documents herein identified and that such documents as
were located, are to the best of Seller's knowledge after diligent search and
inquiry, all of the herein identified by Seller.

          6.2. Buyer and its representatives, consultants and contractors may
enter upon the Property at any time and make inspections and tests (including
soil borings and environmental tests) regarding the Property as Buyer deems
necessary or desirable; provided that Buyer must obtain Seller's approval of any
intrusive or destructive testing.  Damages to the Property resulting from any
inspection or testing conducted by or at the direction of Buyer will be repaired
by Buyer so that the Property is restored to its original condition.  Buyer will
indemnify, defend and hold harmless Seller against any claim arising out of
activities conducted at the Property pursuant to this Section 6.2 by Buyer and
its representatives, consultants and contractors and related damage, cost or
expense (including fees and disbursements of attorneys and other professionals
and court costs).

          6.3. Buyer may terminate its obligation to complete the Purchase at
any time during the 45-day period commencing on the Delivery Date (the "Review
Period") if Buyer, in its sole discretion, is not satisfied with the Property or
any matter relating to the Property, including the physical or environmental
condition of the Property, title to the Property or the Property's operating
history, or if Buyer is unable to procure the Loan Commitment.  Buyer may
exercise its right under this Section 6.3 by giving Seller written notice so
long as actually delivered during the Review Period.  Upon delivery of the
notice, Seller shall direct the Title Company to return the Deposit to the
Buyer.  Failure to timely approve the Property in writing shall constitute an
election by Buyer to terminate this Agreement in which event the title company
shall return to Buyer the Deposit.

                                       6
<PAGE>

     7.   REPRESENTATIONS AND WARRANTIES OF SELLER
          ----------------------------------------

     Seller hereby represents and warrants to Buyer as follows:

          7.1. Seller is a general partnership duly organized and validly
existing and in good standing under the laws of the State of California and all
documents executed by Seller which are to be delivered to Buyer at the Closing
are or at the time of Closing will be duly authorized, executed and delivered by
Seller, and are or at the Closing will be legal, valid and binding obligations
of Seller, and do not and at the time of Closing will not violate any provisions
of any agreement, mortgage, deed, note or other document or instrument to which
Seller is a party or to which it is subject.

          7.2. There are no known claims, suits or proceedings which are pending
against Seller or which relate to the Property or the use or operation thereof
and, to the knowledge of Seller, no such claims, suits or proceedings are
threatened or anticipated against Seller.

          7.3. All contracts or documents delivered by Seller to Buyer pursuant
to this Agreement or in connection with the execution hereof are and at the time
of Closing will be, so far as is known to Seller at the time of delivery, true,
complete and correct copies.

          7.4. At the time of Closing there will be no outstanding contracts
made by Seller for any improvements to the Property which have not been fully
paid for and Seller shall cause to be discharged all mechanics' or materialmen's
liens arising from any labor or materials furnished to the Property prior to the
time of Closing.

          7.5. There are no leases or occupancy agreements of any kind
recognized by Seller relating to the Real Property or any portion thereof other
than those delivered and identified on the rent roll.

          7.6. Seller is not aware of any actually communicated assertion by any
party that the Property is in material violation of any laws.  Seller has not
ever been subject to or received any notice of any private, administrative or
judicial action, or notice of any intended private, administrative or judicial
action relating to code violations, or of the presence or alleged presence of
Hazardous Material in, under, upon or emanating from the Property.  There are no
known pending or threatened actions or proceedings from any governmental agency
or any other entity involving remediation of any condition of the Property,
including, without limitation, petroleum contamination, pursuant to
Environmental Laws.  (As used in this Agreement, "Hazardous Material" shall mean
the substances (i) defined as "Hazardous Waste" in 40 CFR 261, and substances
defined in any comparable California statute or regulation; (ii) any substance
the presence of which requires remediation pursuant to any Environmental Laws;
and (iii) any substance disposed of in a manner not in compliance with
Environmental Laws.) the federal Resource Conservation Recovery Act, 42 USC
(S)6901 et seq. ("RCRA").

          7.7. No underground storage tanks containing petroleum products or
wastes or other hazardous substances regulated by 40 CFR 280 or Environmental
Laws have been installed or discovered on the Property during Seller's ownership
thereof.

                                       7
<PAGE>

          7.8. The Property is not the subject of, or would be affected by, any
pending condemnation or eminent domain proceedings, and to the knowledge of the
Seller, no such proceedings are threatened.

          7.9. All documents executed by Seller which are to be delivered to
Buyer at the Closing are or at the time of Closing will be duly authorized,
executed and delivered by Seller, are or at the time of Closing will be legal,
valid and binding obligations of Seller, and do not and at the time of Closing
will not violate any provisions of any agreement, mortgage, deed, note or other
document or instrument to which Seller are a party or to which the Property is
subject.

     8.   REPRESENTATIONS AND WARRANTIES OF BUYER  Buyer hereby represents and
          ---------------------------------------
warrants to Seller that Buyer is a Delaware corporation duly organized and
validly existing and is in good standing under the laws of the State of
California and all documents executed by Buyer which are to be delivered to
Seller at the Closing are or at the time of Closing will be duly authorized,
executed and delivered by Buyer, and are or at the Closing will be legal, valid
and binding obligations of Buyer, and do not and at the time of Closing will not
violate any provisions of any agreement, mortgage, deed, note or other document
or instrument to which Buyer is a party or to which it is subject.

     9.   REMEDIES
          --------

          9.1. If, following approval of the Property, Buyer fails to purchase
the Property in default of this Agreement, Seller, as its sole and exclusive
remedy, may terminate its obligation to consummate the Closing and, upon doing
so, shall be entitled to receive the Deposit.

          9.2. If Seller fails to perform its obligations to convey the Property
to Buyer, Buyer, at Buyer's option, may enforce specific performance, seek
monetary damages, and/or terminate its obligation to purchase the Property. The
foregoing remedies are meant to be cumulative, and not exclusive, nor shall this
Section 9.d serve to limit Buyer's options to seek relief at law or in equity in
the event of Seller's default hereunder. If Buyer terminates its obligation to
purchase the Property under this Section 9.2, (a) the Deposit shall be returned
to Buyer, and (b) Buyer shall be entitled to recover from Seller its out-of-
pocket costs in negotiating this Agreement and reviewing the Property up to
$25,000.00 in the aggregate.

     10.  INDEMNIFICATION Each party hereby agrees to indemnify the other party
          ---------------
and hold it harmless from and against any and all claims, demands, liabilities,
costs, expenses, penalties, damages and losses, including, without limitation,
reasonable attorneys' fees, resulting from any material misrepresentations or
breach of warranty or breach of covenant made by such party in this Agreement or
in any document, certificate, or exhibit given or delivered to the other
pursuant to or in connection with this Agreement. The indemnification provisions
of this Section 10 shall survive beyond the delivery of the Deed and transfer of
title so long as applicable limitations statutes permit for said breach or
misrepresentation.

     11.  CASUALTY OR CONDEMNATION  In the event that, prior to Closing, the
          ------------------------
Property, or any material part thereof, is destroyed or damaged, or if
condemnation proceedings

                                       8
<PAGE>

are commenced against the Property or any material part thereof, Buyer shall
have the right, exercisable by giving notice of such decision to Seller within
ten (10) business days after receiving written notice from Seller of such
damage, destruction or condemnation proceedings, to terminate this Agreement, in
which case, neither party shall have any further rights or obligations
hereunder. If Buyer elects to accept the Property in its then condition, all
proceeds of insurance or condemnation awards payable to Seller by reason of such
damage, destruction or condemnation shall be paid or assigned to Buyer.

     12.  POSSESSION  Possession of the Property shall be delivered to Buyer on
          ----------
the Closing Date. Prior to the closing, Seller shall afford Buyer or authorized
representatives of Buyer reasonable access to the Property for the purposes of
conducting soils tests, surveys or other physical inspections of the Property.
Buyer shall indemnify Seller and hold Seller harmless against all loss, cost,
damage and expenses, including reasonable attorneys' fees, arising from or
related entry onto the Property by Buyer and its representatives.

     13.  BUYER'S CONSENT TO NEW CONTRACTS AFFECTING THE PROPERTY  Seller shall
          -------------------------------------------------------
not, after the date of Seller's execution of this Agreement, enter into any
agreement affecting the Property or any aspect thereof without obtaining Buyer's
consent thereto, which consent Buyer may withhold only in its reasonable good
faith discretion.  Notwithstanding the foregoing, in no event will Seller enter
into a new lease for space in the Property or any amendment of any existing
lease for space in the Property which extends the then-current term of such
lease or expands the premises leased thereunder, without Buyer's advance written
consent thereto.

     14.  AS-IS  The Property is being sold AS IS and without any warranty other
          -----
than those expressly included in this Agreement.  BUYER, in removing the review
contingency, agrees that they have relied solely and exclusively upon their own
or their employed agents and/or experts inspections, inquiries, and
investigation, and have not relied upon anything said by or on behalf of SELLER.
Except with respect to the representations contained herein, SELLER has not
authorized ANY PERSON to make any representation on behalf of SELLER and any
reliance by BUYER upon any person who purports to represent SELLER is
unreasonable.  It is understood and agreed that, although SELLER has employed a
real estate agent and attorney to facilitate this transaction, neither have been
authorized to make any factual representations, promises, or provide any factual
or legal warranties.

     15.  MISCELLANEOUS
          -------------

          15.1. Notices  Any notice, consent, approval, waiver or other
                -------
communication required or permitted to be given under this Agreement shall be in
writing and shall be (i) delivered personally, (ii) deposited with the United
States Postal Service, all charges and first class postage prepaid or (iii)
delivered by nationally recognized overnight courier, addressed as follows:

                                       9
<PAGE>

                                       If to Seller:

                                       Name:___________________________________
                                       Street Address:_________________________
                                       City, State, Zip Code:__________________
                                       If to Buyer:

                                       Tenfold Corporation
                                       181 West Election Road
                                       Draper, Utah 84020
                                       Attn: General Counsel

                                       With a copy to:

                                       Tenfold Corporation
                                       100 Foster City Boulevard
                                       Suite 200
                                       Foster City, CA 94404
                                       Attn: Lease Administrator

                                       and to:

                                       Shartsis, Friese & Ginsburg LLP
                                       One Maritime Plaza, 18th Floor
                                       San Francisco, California 94111
                                       Attention: Jonathan M. Kennedy, Esq.

or such other address as either party may from time to time specify by notice
hereunder to the other.  Notice shall be deemed given on the date of delivery
(or the date delivery is refused by addressee) unless such date is a weekend or
holiday, in which event the Notice shall be deemed given on the next succeeding
business day.

          15.2. Brokers and Finders  Seller acknowledges that Seller has been
                -------------------
represented by Keegan & Coppin & Company ("KCC"), and Buyer acknowledges that
Buyer has been represented by Cushman & Wakefield, ("C&W") (KCC and C&W being
referred to collectively herein as "Brokers") in the negotiation of the this
transaction.  Brokers shall be paid a commission by Seller pursuant to a
separate agreement.  Neither party has had any contact or dealings regarding the
Property, or any communication in connection with the subject matter of this
transaction, through any licensed real estate broker or other person who can
claim a right to a commission or finder's fee as a procuring cause of the sale
contemplated herein.  If any broker or finder perfects a claim for a commission
or finder's fee based on any such contact, dealings or communication, the party
through whom the broker or finder makes such claim shall be responsible for said
commission or fee and all costs and expenses, including reasonable attorneys'
fees, incurred by the other party in defending against the same.

                                      10
<PAGE>

          15.3.  Successors and Assigns  This Agreement shall bind and inure to
                 ----------------------
the benefit of the parties hereto and their respective successors, heirs,
administrators and assigns.  Without being relieved of any liability under this
Agreement, Buyer reserves the right to take title to the Property in a name or
assignee other than Buyer.

          15.4.  Amendments  This Agreement may be amended or modified by, and
                 ----------
only by, a written instrument executed by Seller and Buyer.

          15.5.  Governing Law  This Agreement shall be governed by and
                 -------------
construed and interpreted in accordance with the laws of the State of
California.

          15.6.  Merger of Prior Agreements  This Agreement contains the entire
                 --------------------------
agreement of the parties and supersedes all prior negotiations, correspondence,
understandings and agreements between the parties relating to the subject matter
hereof.

          15.7.  Attorneys' Fees  In the event of litigation between the parties
                 ---------------
hereto arising from this Agreement or the performance of either party hereunder,
and whether in contract, tort, or in equity, the prevailing party shall be
entitled to recover their reasonably expended attorneys' fees.  This right to
attorneys' fees shall be forfeited by any party who fails to demand and
participate in mediation, in advance of filing a lawsuit.

          15.8.  Time of the Essence  Time is of the essence of this Agreement.
                 -------------------

          15.9.  Specific Performance  Seller acknowledge that in the event of a
                 --------------------
breach or default or threatened breach or default under this Agreement by Seller
prior to the Closing, damages at law will be an inadequate remedy and,
accordingly, without in any manner limiting any other remedies available to
Buyer, Seller's obligations under this Agreement may be enforced by specific
performance.

          15.10. Interpretation  Whenever used herein, the term "including"
                 --------------
shall be deemed to be followed by the words "without limitation."  Words used in
the singular number shall include the plural, and vice-versa, and any gender
shall be deemed to include each other gender.  The captions and headings of the
Articles and Sections of this Agreement are for convenience of reference only,
and shall not be deemed to define or limit the provisions hereof.

          15.11. Counterparts  This Agreement may be executed in any number of
                 ------------
counterparts which together shall constitute the Agreement.

          15.12. Exhibits  The following exhibits are attached hereto.
                 --------

          Exhibit A  Description of Property
          Exhibit B  Schedule of Personal Property
          Exhibit C  Deed
          Exhibit D  Assignment of Permits and Other Intangible Reports
          Exhibit E  Bill of Sale
          Exhibit F  Affidavit of Non-Foreign Status
          Exhibit G  Estoppel Certificate Form

                                      11
<PAGE>

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

                              BUYER:

                              TENFOLD CORPORATION,
                              a Delaware corporation

                              By: /s/ Robert P. Hughes
                                  ----------------------------
                              Its:  Chief Financial Officer
                                    --------------------------

                              SELLER:

                              181 INVESTORS,
                              a California general partnership

                              By: /s/ Peter F. Walz
                                  ----------------------------
                              Its: Partner
                                   ---------------------------

                              By: /s/ Allen Cristofani
                                  ----------------------------
                              Its: Partner
                                   ---------------------------

                              By: /s/ Arthur R. Nicolaisen
                                  ----------------------------
                              Its: Partner
                                   ---------------------------

                              By: /s/ Ian MacLeod
                                  ----------------------------
                              Its: Partner
                                   ---------------------------

                                      12

<PAGE>

                                   Exhibit A
                                   ---------

                         DESCRIPTION OF REAL PROPERTY

     All of that certain real property situated in the City of San Rafael,
County of Marin, State of California, described as follows:

     LOT 6C, as shown upon that certain Map entitled "Map of Smith Ranch -
Southerly Portion", filed for record June 9, 1978 in Volume 17 of Maps, at Page
40, Marin County Records.

                                   EXHIBIT A

                                       1
<PAGE>
                                   Exhibit B
                                   ---------

                         SCHEDULE OF PERSONAL PROPERTY

None

<PAGE>

                                   Exhibit C
                                   ---------

                                     DEED

     Recording Requested By and
     When Recorded Return To:

     Shartsis, Friese & Ginsburg LLP
     One Maritime Plaza, 18th Floor
     San Francisco, CA 94111
     Attn: Jonathan M. Kennedy, Esq.

     Mail Tax Statements To:

     Tenfold Corporation

     ____________________________
     ____________________________
     ____________________________
     Attn:_______________________

________________________________________________________________________________
                                (Space above this line for Recorder's use only.)
                                                TRANSFER TAX NOT TO BE DISCLOSED
                                                OF PUBLIC RECORD - SEE STATEMENT
                                                SUBMITTED HEREWITH

                                   GRANT DEED

     FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,

          _______________________________, a _____________ ("GRANTOR"), hereby
GRANTS to

     TENFOLD CORPORATION  ("GRANTEE"),

     all the real property situated in Marin County, California described in
Exhibit A attached hereto and incorporated herein by this reference.

     IN WITNESS WHEREOF, the undersigned has executed these presents this _____
day of ______________, 2000.

                              ________________________________________,
                              a_______________________________________

                              By:_____________________________________
                              Name:___________________________________
                              Its:____________________________________

     Recording Date: _____________       Official Record No.: ______________

                                   EXHIBIT C

                                       1
<PAGE>

                             STATEMENT OF TAX DUE
                                      AND
         REQUEST THAT AMOUNT PAID NOT BE MADE A PART OF THE PERMANENT
                     RECORD IN THE OFFICE OF THE RECORDER

     (Pursuant to Section 11934 of the Revenue & Taxation Code)

     To: Marin County Recorder

     Request is hereby made, in accordance with the provisions of the
Documentary Transfer Tax Act, that this form showing the amount of tax due not
be made part of the permanent record in the Office of the Recorder.

          Grantor: ___________, a ___________ limited partnership

          Grantee: TENFOLD CORPORATION, a Delaware corporation

     The property described in the accompanying document is located in:

     ( ) Unincorporated area.          (X) City of: San Rafael

     Declaration:                      Documentary Transfer Tax: $

                                       ( ) Computed on full value of property
                                            conveyed

                                           or

                                       ( ) Computed on full value less liens and
                                            encumbrances remaining at the time
                                            of sale.

NOTE: After the permanent record is made, this form will be affixed to the
      conveying document and returned with it.

                                   EXHIBIT C

                                       2
<PAGE>

                    CALIFORNIA ALL PURPOSE ACKNOWLEDGEMENT

State of California

County of
     On __________, before me, _______________________________________________,
         Date                           Name and Title of Officer (e.g., "Jane
                                              Doe, Notary Public")

     Personally appeared ______________________________________________________
                                             Name(s) of Signer(s)

                                                [_] personally known to me
                                                [_] proved to me on the basis
                                        of satisfactory evidence

                                        to be the person(s) whose name(s) is/are
                                        subscribed to the within instrument and
                                        acknowledged to me that he/she/they
                                        executed the same in his/her/their
                                        authorized capacity(ies), and that by
                                        his/her/their signature(s) on the
                                        instrument the person(s), or the entity
                                        upon behalf of which the person(s)
                                        acted, executed the instrument.

                                        WITNESS my hand and official seal.

                                        --------------------------------------
    Place Notary Seal Above                   Signature of Notary Public

____________________________________OPTIONAL__________________________________

      Though the information below is not required by law, it may prove valuable
         to persons relying on the document and could prevent fraudulent removal
         and reattachment of this form to another document.

     Description of Attached Document

     Title or Type of Document:________________________________________________

     Document Date:_____________________  Number of Pages:_____________________

     Signer(s) Other Than Named Above:_________________________________________

     Capacity(ies) Claimed by Signer

     Signer's Name:__________________________________________________

[_]  Individual

[_]  Corporate Officer - Title(s)____________________________________
[_]  Partner - [_] Limited [_] General
[_]  Attorney in Fact
[_]  Trustee
[_]  Guardian or Conservator
[_]  Other___________________________________________________________

Signer is Representing:______________________________________________

                                   EXHIBIT C

                                       3
<PAGE>

                                   Exhibit A
                                   ---------

                                    to Deed

                               LEGAL DESCRIPTION

                          [Insert Legal Description]

                                   EXHIBIT C

                                       4
<PAGE>

                                   Exhibit D
                                   ---------

                             ASSIGNMENT OF PERMITS
                         AND OTHER INTANGIBLE PROPERTY

     THIS ASSIGNMENT dated _____________, 19__ (the "Assignment"), is made by
181 INVESTORS, a California general partnership ("Assignor") to TENFOLD
CORPORATION, a Delaware corporation ("Assignee").

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt of which is hereby
acknowledged, Assignor hereby assigns and transfers unto Assignee all of its
right, title, claim and interest in and under any and all governmental permits
and other intangible property owned by Assignor in connection with that certain
real property described in Exhibit A attached hereto (the "Real Property") or
any improvements or personal property located thereon, including without
limitation, any of Assignor's interest in or rights under licenses or planning
approvals and any contract rights, agreements, utility contracts, warranties,
guaranties, general intangibles or other rights relating to the ownership,
development, use or operation of Real Property.

     Assignor warrants and represents that as of the date the Real Property is
conveyed to Assignee there are no assignments of or agreements to assign the
foregoing permits and other intangible property to any other party.

     The Assignment shall be binding on and inure to the benefit of the parties
hereto and the successors and assigns.

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as
of the date and year first above written.

                         ASSIGNOR:

                         181 INVESTORS,
                         a California general partnership

                         By: ___________________________________
                         Its: __________________________________

                         ASSIGNEE:

                         TENFOLD CORPORATION,
                         a Delaware corporation

                         By: ___________________________________
                         Its: __________________________________

                                       1
<PAGE>

                                   Exhibit A
                                   ---------

            to Assignment of Permits and Other Intangible Property

                               LEGAL DESCRIPTION

     All of that certain real property located in Marin County, California
                             described as follows:

                          [Insert Legal Description]

                                       2
<PAGE>

                                   Exhibit E
                                   ---------

                                  BILL OF SALE

None

<PAGE>

                                   Exhibit F
                                   ---------

                        AFFIDAVIT OF NON-FOREIGN STATUS
                      INTERNAL REVENUE CODE SECTION 1445

     Section 1445 of the Internal Revenue Code provides that a transferee of a
U.S. real property interest must withhold tax equal to ten percent of the
purchase price if the transferor is a foreign person. Such transferee is exempt
from such obligation to withhold if the transferor provides the transferee an
affidavit that the transferor is not a foreign person.

     To induce TENFOLD CORPORATION, a Delaware corporation ("Transferee"), to
not withhold tax under such Section 1445 upon the transfer by 181 Investors, a
California general partnership ("Transferor"), of a U.S. real property interest
located in Marin County, California, as more particularly described in Exhibit A
attached hereto, the following affidavit is made on behalf of Transferor under
penalty of perjury and with knowledge that Transferee will rely thereon.

     1.   Transferor is not a foreign person or foreign corporation, foreign
partnership, foreign trust (as those terms are defined in the Internal Revenue
Code);

     2.   The tax identification number of the Transferor is _____________; and

     3.   The Transferor resides at the following addresses: __________________

     ._________________________________________________________________________

     Transferor understands that this certification may be disclosed to the
Internal Revenue Service by Transferee, and that any false statement contained
herein could be punished by fine, imprisonment, or both.

     Under penalty of perjury, the undersigned declares that he/she has examined
this certificate and to the best of his/her knowledge and belief it is true,
correct and complete.

     Date:  _____________, 19__

                              181 INVESTORS,
                              a California general partnership

                              By: _____________________________________
                              Its: ____________________________________

                                       1
<PAGE>

                                   Exhibit A
                                   ---------

                      to Affidavit of Non-foreign Status
                      Internal Revenue Code Section 1445

                               LEGAL DESCRIPTION

     All of that certain real property located in Marin County, California,
described as follows:

                          [Insert Legal Description]

                                       2
<PAGE>

                                   Exhibit G
                                   ---------

                         TENANT'S ESTOPPEL CERTIFICATE
                                      AND
                             ATTORNMENT AGREEMENT

     To:  ____________________
          ____________________
          ____________________

     Re:  ____________________

     The undersigned (the "Lessee") understands that you are presently
negotiating the purchase of the certain real property commonly known as
_________________________ of which the Lessee is a tenant pursuant to the terms
of that certain Lease dated _______, by and between Lessee and
______________________ ("Lessor"), including any amendments to or modifications
of the same. The Lessee hereby certifies the following information with respect
to the Lease under which the Lessee is a tenant and agrees that you may rely
upon the same in purchasing said real property:

     1.   The copy of the Lease attached hereto as Exhibit A is a true, correct
and complete copy of the Lease, and the Lease is in full force and effect and
has not been modified or amended except as specifically set forth below.

     2.   The Lessee asserts no claim of default or offset or defense against
the payment of rent or other charges payable by the Lessee and asserts no claim
against the Lessor under the Lease in regard to the premises occupied by Lessee.
There is no default by Lessor under the Lease.

     3.   All fixed minimum rental has been paid to the end of the current
calendar month, which is fixed rent presently in the following sum: $_________,
and no rent under the Lease has been paid more than one month in advance of its
due date.

     4.   The Lease commencement and termination dates are: _______________ and
_______________.

     5.   Date of original Lease: ________________________ Dates of any
amendments or modifications: _________________________________________________
_____________________________________.

     6.   Current annual fixed minimum rental: _______________________________
___________________________________________________.

     7.   Lease termination date: _______________________________.

<PAGE>

     8.   The Lease provides _____ (number of options) option(s) to renew for
additional term(s) of __________.

     9.   The Lease contains no first right of refusal, option to expand, or
option to terminate, except as follows: ______________________________________
_______________________________________. No notice to terminate has been given
by the undersigned.

     10.  Lessor is holding a security deposit of $____________.

     11.  The undersigned is not in default under the Lease and is current in
the payment of any taxes, utilities, common area maintenance payments, or other
charges required to be paid by the undersigned.

     12.  The improvements and space required to be furnished according to the
Lease have been duly delivered by the Lessor and accepted by the Lessee.

     13.  Lessee has no defenses as to its obligations under the Lease and
claims no setoff or counterclaim against Lessor.

     14.  Lessee has not received notice of any assignment, hypothecation,
mortgage, or pledge of Lessor's interest in the Lease or the rents of other
amounts payable thereunder.

     15.  Lessee has not entered into any sublease, assignment or other
agreement transferring any of its interest in the Lease or the leased premises.

     16.  Lessee agrees to attorn to any successor-in-interest to Lessor and be
bound by all the terms, covenants and conditions of the Lease for the balance of
the term thereof.

     17.  The Lessee certifies that he is required to pay a pro rata share of
real property taxes, as well as a pro rata share of the following operating
expenses: ____________________________________________________________________
_______________________________________________________________________________.
Moreover, the Lessee is required to pay or all utilities, including water and
sewer, used in and upon the leased premises and is responsible for all repairs
and maintenance to the HVAC/mechanical systems.

<PAGE>

     18.  Under the Lease the Lessee is entitled to the use of _____________
parking spaces.

     Dated:  _____________, 19__.

                              Very truly yours,

                              By____________________________
                              Its___________________________
<PAGE>

                                   Exhibit H
                                   ---------

                             ASSIGNMENT OF LEASES

     THIS AGREEMENT dated _________, 2000 (the "Agreement"), is entered into by
and between 181 INVESTORS, a California general partnership (collectively,
"Assignor") and TENFOLD CORPORATION, a Delaware corporation ("Assignee")

                                  WITNESSETH:
                                  ----------

     WHEREAS, Assignor is the lessor under certain leases executed with respect
to that certain real property commonly known as 171-181 Carlos Drive, San
Rafael, California, which leases are described in Schedule 1 attached hereto
(the "Leases"); and

     WHEREAS, Assignor desires to assign its interest as lessor in the Leases to
Assignee, and Assignee desires to accept the assignment thereof;

     NOW, THEREFORE, in consideration of the promises and conditions contained
herein, the parties hereby agree as follows:

     1.   Assignor hereby assigns to Assignee all of its right, title and
interest in and to the Leases herein described.

     2.   Assignor warrants and represents that as of the date hereof:

          (a)  The attached list includes all of the Leases affecting the
     property being acquired by Assignee from Assignor.  As of the date hereof,
     there are no assignments of or agreements to assign the Leases to any other
     party.

          (b)  The Leases are in full force and effect and there exist no
     default on the part of Assignor thereunder, nor does Assignor have any
     actual knowledge of any defaults or any acts or events which with the
     passage of time or the giving of notice could become defaults thereunder on
     the part of any tenant thereunder.

     3.   Assignee hereby assumes all of the landlord's or lessor's obligations
under the Leases described in Schedule 1 and agrees to indemnify Assignor
against and hold Assignor harmless from any and all cost, liability, loss,
damage or expense, including without limitation, reasonable attorneys' fees,
originating subsequent to the date hereof and arising out of the lessor's
obligations under the Leases.

     4.   In the event of any litigation between Assignor and Assignee arising
out of the obligations of the parties under this Assignment or concerning the
meaning or interpretation of any provision contained herein, the losing party
shall pay the prevailing party's costs and expenses of such litigation,
including, without limitation, reasonable attorney's fees.

                                      1
<PAGE>

     5.   This Agreement shall be binding on and inure to the benefit of the
parties hereto, their heirs, executors, administrators, successors in interest
and assigns.

     IN WITNESS WHEREOF, the Assignor and Assignee have executed this Agreement
the day and year first above written.

                              ASSIGNOR:

                              181 INVESTORS,
                              a California general partnership

                              By: _______________________________
                              Its: ______________________________

                              ASSIGNEE:

                              TENFOLD CORPORATION,
                              a Delaware corporation

                              By: _______________________________
                              Its: ______________________________

                                       2
<PAGE>

                                  SCHEDULE 1

Tenant           Premises            Lease Date         Amendment Date(s)
------           --------            ----------         -----------------

                               [to be completed]

                                       3

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