Document:

BUTTERFIELD CENTER LEASE AGREEMENT

                                 FIRST AMENDMENT

                                  (PAGE 1 OF 2)

      THIS AMENDMENT, made and entered into this 4TH day of MARCH , 2004, by and
between BUTTERFIELD CENTER LIMITED PARTNERSHIP, an Arizona limited partnership,
hereinafter referred to as "Landlord", and CDEX, INC. hereinafter referred to as
"Tenant".

                                   WITNESSETH:

      WHEREAS, the parties hereto have entered into that certain lease dated
March 4 , 2004 (the "Lease"), for those certain premises located at 4565 S. Palo
Verde, Suite 213 , City of Tucson, County of Pima, State of Arizona; and,

      WHEREAS, the parties hereto now desire to amend, modify or change certain
portions of said Lease;

      NOW, THEREFORE, in consideration of the covenants and agreements contained
herein, the parties do hereby agree as follows, to wit:

      1.    PREMISES. Beginning May 1, 2004 the leased Premises shall become the
            approximately 3,648 square feet known as 4555 S. Palo Verde Road,
            Suites 107/123/125, Tucson, Arizona.

            Tenant's Proportionate Share of Operating Costs, Utility Costs and
            Taxes shall be 4.66%.

            Although the new leased Premises may be available for earlier
            occupancy, Tenant shall be obligated to pay Rent only for the
            premises known as 4565 S. Palo Verde Road, Suite 213 through April
            30, 2004. Thereafter, the obligations for Suite 213 under the Lease
            shall terminate subject to Article 11.2(c) therein.

      2.    TERM. The Term of the Lease shall be extended through April 30,
            2009.

      3.    RENT. The Monthly Base Rent beginning May 1, 2004 shall be $583.68
            plus applicable Operating Costs, Utility Costs and Taxes, currently
            $875.52, for a total of $1,459.20 per month.

            The Monthly Base Rent beginning November 1, 2004 shall be $1,969.92
            plus applicable Operating Costs, Utility Costs and Taxes, currently
            $875.52, for a total of $2,845.44 per month.

            Thereafter, the Monthly Base Rent shall increase by three percent
            (3%) annually on November 9th through the remainder of the Term.

      4.    CANCELLATION: Provided Tenant has fully and faithfully performed its
            covenants and obligations under the Lease and is not in default,
            Tenant may terminate the Lease as follows:

            a.    Tenant may terminate the Lease between May 1, 2006 and April
                  30, 2007 with 180 days prior written notice to Landlord and
                  payment of a termination fee to Landlord equal to five (5)
                  months Rent (Monthly Base Rent plus Operating Costs, Utility
                  Costs and Taxes in effect at the time of termination).

            b.    Tenant may terminate the Lease between May 1, 2007 and April
                  30, 2008 with 120 days prior written notice to Landlord and
                  payment of a termination fee to Landlord equal to four (4)
                  months Rent (Monthly Base Rent plus Operating Costs, Utility
                  Costs and Taxes in effect at the time of termination).

            c.    Tenant may terminate the Lease between May 1, 2008 and April
                  30, 2009 with 120 days prior written notice to Landlord and
                  payment of a termination fee to Landlord equal to two (2)
                  months Rent (Monthly Base Rent plus Operating Costs, Utility
                  Costs and Taxes in effect at the time of termination).

      5.    IMPROVEMENTS: Prior to May 1, 2004, Landlord shall deliver to Tenant
            the new leased Premises in clean and good operating condition
            including all electric, plumbing, HVAC and fixtures. Landlord shall
            also improve the Premises [stricken text] according to the attached
            space plan B-3(c) and described as follows:

<PAGE>

            a.    Remove and build walls, and add doors as necessary to enlarge
                  the two front offices and create a storage and computer room.

            b.    Replace counter and sink in lab room.

            c.    Prepare vent to roof for installation of laminar flow hood in
                  lab room.

            d.    Re-paint Premises throughout.

            e.    Install new building standard carpet, VCT, and sheet vinyl
                  (lab room) in the locations, style and color of Tenant's
                  choice.

[initials]  f.    Install window film or bulk windows to "black-out" windows.
                  [handwritten insert]

[initials]  g.    Ensure adequate phone and network lines and jacks throughout
                  Premises. [handwritten insert]

                                                      [ Initials ]  [ Initials ]
                                                        Landlord       Tenant

<PAGE>

                       BUTTERFIELD CENTER LEASE AGREEMENT

                                 FIRST AMENDMENT

                                  (PAGE 2 OF 2)

      6.    RIGHT OF FIRST  REFUSAL.  Provided  Tenant has fully and  faithfully
            performed  its  obligations  under the Lease,  Tenant shall have the
            right of first  refusal to lease the  approximately  972 square feet
            known as 4555 S. Palo Verde Road,  Suite 105, which shall be offered
            at the same Rent per square foot,  terms and conditions as contained
            in the  Lease.  Tenant  shall  notify  Landlord  in  writing  of its
            intention to exercise its right within  thirty (30) business days of
            receiving  notice from Landlord of the  opportunity to exercise such
            right.

      7.    RELOCATION ALLOWANCE: Landlord shall provide Tenant a check for
            $16,245.00 upon Tenant's occupancy in the new leased Premises.

Except as specifically stated herein, in all other respects all other terms and
conditions of the Lease shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date
first above written.

"LANDLORD"                                                  "TENANT"

BUTTERFIELD CENTER LIMITED PARTNERSHIP                      CDEX, Inc.

By: Butterfield Center, Inc., Its General Partner           By: MALCOLM PHILIPS
                                                                ---------------

By: /S/ [SIGNATURE ILLEGIBLE]                                   Its: CEO
    ----------------------------------------------              ---------------
            , President

                                                        [ Initials ]  [Initials]
                                                          Landlord      Tenant
<PAGE>

                        BUTTERFIELD CENTER LEASE AGREEMNT
                                TABLE OF CONTENTS

                LANDLORD: BUTTERFIELD CENTER LIMITED PARTNERSHIP
                          --------------------------------------

                TENANT:   DVNAMIC MANAGEMENT RESOLUTIONS, LLC
                        ----------------------------------------

                PROJECT:  BUTTERFIELD CENTER
                         ---------------------------------------

ARTICLE l: PARTIES

            1       Parties............................................... 1

ARTICLE 2: PREMISES

            2       Parties............................................... 1

ARTICLE 3: TERM

            3.1     Term.................................................. 1
            3.2     Failure to Give Possession............................ 1
            3.3     Holding Over.......................................... 1
            3.4     Surrender of Premises................................. 1

ARTICLE 4: USE

            4.1     Use................................................... 1-2
            4.2     Covenant to Operate................................... 2
            4.3     Abandonment........................................... 1
            4.4     Compliance With Law................................... 2
            4.5     Rules and Regulations................................. 2
            4.6     Condition of Premises................................. 2

ARTICLE 5: RENT

            5.1     Base Rent............................................. 2
            5.2     Additional............................................ 2
            5.3     Rent.................................................. 2
            5.4     Rent Adjustment....................................... 2
            5.5     Rent Paid in Lawful Money of the
                    United States of America.............................. 2
            5.6     Time, Manner, Place for Rent Payment.................. 2-3
            5.7     Rental Tax............................................ 3
            5.8     Charge for Past Due Obligations....................... 3

ARTICLE 6: SECURITY

            6.1     Security Deposit ..................................... 3
            6.2     Additional Security  ................................. 3

ARTICLE 7: OPERATING COSTS, UTILITY COSTS AND REAL ESTATE TAXES

            7.1     Tenant's Share........................................ 3
            7.2     Annual Statements                                      3
            7.3     Partial Year Proration................................ 3
            7.4     Operating Costs....................................... 4
            7.5     Utilities............................................. 4
            7.6     Taxes................................................. 4
            7.7     Record Keeping........................................ 4-5

ARTICLE 8: INSURANCE; INDEMNITY

            8.1     Liability Insurance................................... 5
            8.2     Property Insurance.................................... 5
            8.3     Tenant's Use Limited By Insurance ,................... 5
            8.4     Mutual Waiver of Subrogation.......................... 5
            8.5     Tenant's Responsibility............................... 5
            8.6     Insurance Policies.................................... 5
            8.7     Indemnity

ARTICLE 9: TAXES

            9.1     Landlord's Obligation for Real Property Taxes......... 5
            9.2     Tenant's Obligation for Taxes......................... 5-6

<PAGE>

ARTICLE 10: UTILITIES

            10.1    Tenant's Obligation for Utilities..................... 6
            10.2    Telecommunications Carrier's Access................... 6

ARTICLE 11: MAINTENANCE, REPAIRS, AND ALTERATIONS

            11.1    Landlord's Obligations ,.............................. 6
            11.2    Tenant's Obligations.................................. 6-7
            11.3    Life-Safety Systems .................................. 7
            11.4    Hazardous Substances ................................. 7
            11.5    Alterations and Additions ............................ 7-8

ARTICLE 12: DAMAGE OR DESTRUCTION

            12.1    Partial Damage - Fully Insured ....................... 8
            12.2    Partial Damage - Not fully Insured ................... 8
            12.3    Total Destruction .................................... 8
            12.4    Damage Near End of Term............................... 8
            12.5    Abatement of Rent; Tenant's Remedies.................. 8
            12.6    Termination - Advance Payments........................ 8

ARTICLE 13: ASSIGNMENT AND SUBLETTING

            13.1    Consent Required...................................... 8
            13.2    Requests for Approval................................. 8
            13.3    Continued Responsibility ............................. 8
            13.4    Recapture Option ..................................... 9
            13.5    Direct Lease.......................................... 9
            13.6    Shared Proceeds....................................... 9
            13.7    Limitations........................................... 9
            13.8    No Waiver............................................. 9
            13.9    Transfer By Landlord.................................. 9
            13.10   Attorney's Fees....................................... 9

ARTICLE 14: DEFAULTS; REMEDIES

            14.1    Defaults.............................................. 9
            14.2    Remedies.............................................. 9-10
            14.3    Default By Landlord................................... 10

ARTICLE 15: PARKING

            15      Parking............................................... 10

ARTICLE 16: CONDEMNATION

            16      Condemnation.......................................... 10

ARTICLE 17: RELOCATION

            17      Relocation............................................ 10

ARTICLE 18: GENERAL PROVISIONS

            18.1    Landlord's Liability.................................. 10-11
            18.2    Estoppel Certificate.................................. 11
            18.3    Subordination......................................... 11
            18.4    Notice to Mortgagee................................... 11
            18.5    Severability and Captions............................. 11
            18.6    Time of Essence....................................... 11
            18.7    Notices............................................... 11
            18.8    Termination, No Waiver, No Oral Change................ 11-12
            18.9    Recording............................................. 12
            18.10   Cumulative Remedies................................... 12
            18.11   Covenants and Conditions.............................. 12
            18.12   Binding Effect; Choice of Law......................... 12
            18.13   Attorney's Fees....................................... 12
            18.14   Landlord's Access..................................... 12
            18.15   Signs and Auctions.................................... 12
            18.16   Merger................................................ 12
            18.17   Corporate Authority................................... 12
            18.18   Rentable Area......................................... 12
            18.19   Consent............................................... 12
            18.20   Legal Proceedings..................................... 12
            18.21   Inability to Perform.................................. 13
            18.22   Counterparts.......................................... 13
            18.23   Commissions........................................... 13
            18.24   Incorporation of Prior Agreements; Amendments......... 13

ARTICLE 19 LANDLORD RELIANCE ON TENANT RELATED INFORMATION

            19      Landlord Reliance on Tenant Related Information....... 13

<PAGE>

ARTICLE 20 NON-DISCLOSURE

            20      Non-Disclosure........................................ 13

EXHIBITS:

Exhibit A: Lease Provisions/Guaranty
Exhibit B: Table of Contents of Exhibit B
        B-1: Project Legal Description, Site Plan, Premises

           B-3: Improvement Standards
           B-3(a): Improvement Standards
           B-3(b): Space Plan

<PAGE>

                            BUTTERFIELD CENTER LEASE

ARTICLE 1: PARTIES

      1.  PARTIES.  This Lease is made by and  between the  Landlord  and Tenant
described on the attached Exhibit A. All exhibits  referred to in this Lease are
incorporated into this Lease and shall be deemed to be a part of the Lease.

ARTICLE 2: PREMISES

      2. PREMISES.  Landlord  hereby leases to Tenant that certain real property
described on Exhibit A and on Exhibit B (the  "Premises")  for the term,  at the
rental,  and upon all the conditions set forth in this Lease.  In the event that
Landlord or Tenant  shall have an  obligation  to alter,  remodel or improve the
Premises,  Exhibit  B shall  set  forth  the  exact  extent  and  nature of such
obligation.  The  Premises  are part of the real  estate  project  described  on
Exhibit B (the "Project").

ARTICLE 3: TERM

      3.1 TERM.  The term of this  Lease  and  Tenant's  obligation  to pay Rent
("Rent" is defined in Section 5.3 of this Lease) and other charges due hereunder
shall commence on the "Commencement Date" as set forth on Exhibit A, except:

      (a)   Where  Landlord is to improve the Premises for  Tenant's  Work,  the
            Commencement Date shall be the earlier of the following dates:

            (i)   The  date  which  is the  earlier  of that  determined  by the
                  provisions  of  Section  5  ("Rental  Commencement  Date")  of
                  Exhibit  B-2(a) or fifteen (15) days after  Landlord  notifies
                  Tenant in writing  that the  improvements  to be  provided  by
                  Landlord  to  Tenant  as set  forth  in  Exhibit  B have  been
                  substantially completed, or

            (ii)  The date on which Tenant shall open the Premises for business.

      (b)   Where Tenant is to improve the Premises for itself, the Commencement
            Date shall be the date set forth in Section 3 ("Rental  Commencement
            Date") of Exhibit B-2(a).

            A Commencement Date Memorandum shall set forth the Commencement Date
            of the Lease, as determined according to the provisions hereof.

      Should  such  Commencement  Date not occur on the first day of a  calendar
month,  the term shall  begin on the first day of the next  succeeding  calendar
month.  In that event,  Tenant shall pay Rent for the fractional  month on a per
diem basis: (calculated on the basis of a thirty [30] day month) until the first
day of the calendar month when the term  commences and thereafter  Rent shall be
paid as  provided  herein,  For  purposes  of this  Lease,  the term month means
calendar month.

      3.2  FAILURE  TO GIVE  POSSESSION.  If  Landlord  shall be  unable to give
possession  of  Premises on the date of the  commencement  of the term hereof by
reason of the fact that  Premises are located in a portion of the Project  being
constructed and which has not been sufficiently completed to make Premises ready
for occupancy or by reason of the fact that a  certificate  of occupancy has not
been  procured  or for any other  reason,  or if the Project is not in course of
construction  and Landlord is unable to give  possession of Premises on the date
of the  commencement  of the term  hereof by reason of the  holding  over of any
tenant  or  tenants  or  for  any  other  reason,  or if  repairs,  alterations,
improvements  or  decorations  of Premises or of the Project or any of the areas
used in connection with the operation of the Project are not completed, any such
delay  resulting  therefrom  shall be deemed  excused and Landlord  shall not be
subject to any liability for the failure to give possession on said date.  Under
such circumstances, the Rent reserved and covenanted to be paid herein shall not
commence  until  possession  of Premises is given or Premises is  available  for
occupancy by Tenant,  unless such delay is the fault of Tenant.  No such failure
to give possession on the date of the  commencement of the term shall in any way
affect  or  impair  the  validity  of this  Lease or the  obligations  of Tenant
hereunder, nor shall the same be construed in any way to extend the term of this
Lease. If permission is given to Tenant to enter into the possession of Premises
or to occupy  premises  other than Premises  prior to the date  specified as the
commencement  of the term of this Lease,  such  occupancy  shall be deemed to be
under all the terms,  covenants,  conditions,  provisions and agreements of this
Lease including,  without limitation,  Tenant hereby agreeing to pay Rent at the
same  rate as though  the term of this  Lease  had  commenced.  In the event the
Premises are to be delivered in stages,  then this provision shall apply to each
stage separately.

      3.3 HOLDING OVER.  Tenant shall vacate the Premises upon the expiration or
earlier  termination  of this Lease.  Tenant  shall  reimburse  Landlord for and
indemnify  Landlord  against all damages  incurred by Landlord from any delay by
Tenant in  vacating  the  Premises.  If Tenant  does not vacate the  Premises as
provided by this Lease, and Landlord consents in writing to the Tenant's holding
over,  then  Tenant's  occupancy  of the  Premises  shall be a  "month-to-month"
tenancy,   subject  to  all  of  the  terms  of  this  Lease   applicable  to  a
month-to-month

<PAGE>

tenancy with the exception  that the Monthly Base Rent  ("Monthly  Base Rent" is
defined in  Section-5.1  of this Lease) shall be increased on a monthly basis by
fifty percent (50%) and that Tenant shall provide not less than thirty (30) days
written notice prior to terminating its month-to-month tenancy.

      3.4  SURRENDER OF  PREMISES.  On or before the  expiration  date of Lease,
Tenant and  Landlord's  representative  shall  jointly  inspect the Premises and
create a  Termination  Checklist of items which Tenant must repair or replace to
comply  with its  obligations  under  the  Lease.  In the event  that  Tenant is
unwilling  or  unavailable  to inspect  the  Premises,  Landlord  may create the
Termination  Checklist and deliver it to Tenant.  Tenant shall have two (2) days
to complete the repair or replacement of items on the Termination Checklist. All
items on the Termination  Checklist which are not repaired or replaced by Tenant
within such two (2) day period  shall be repaired or replaced by Landlord and at
Landlord's  discretion  and the cost will be either  deducted  from the Security
Deposit or billed and paid directly by Tenant.

ARTICLE 4: USE

      4.1 USE.  The  Premises  shall be used and  occupied  only for the purpose
stated on Exhibit A (the  "Use")  and Tenant  shall not use or permit the use of
the Premises for any other purpose.  Tenant shall,  prior to the commencement of
the conduct of business  from the Premises,  obtain a  certificate  of occupancy
(the "Certificate of Occupancy") from the appropriate governmental agency having
jurisdiction  over occupancy of the Premises.  Tenant shall keep the Certificate
of Occupancy in the Premises at all times and immediately deliver a true copy of
the  Certificate  of Occupancy to Landlord.  Tenant shall not at any time use or
occupy or permit the use or  occupancy  of the  Premises  in  violation  of: (a)
Section 8.3 of this Lease,  "Tenant's Use Limited By Insurance";  (b) Exhibit C,
"Rules  and  Regulations";  and (c)  Certificates  of  Occupancy  issued for the
Project or Premises;  and in the event that any department of the City or County
in which the Project is located or of the State of Arizona  shall  hereafter  at
any time  contend or declare that  Premises  are used for a purpose  which is in
violation of such Certificate or Certificates of Occupancy,  Tenant shall,  upon
five (5) days  notice  from  Landlord or any  governmental  agency,  immediately
discontinue  such use of  Premises.  Failure by Tenant to  discontinue  such use
after such notice shall be  considered  a default  under this Lease and Landlord
shall  have the right to  terminate  this  Lease  immediately,  and in  addition
thereto shall have.  the right to exercise any and all rights and privileges and
remedies  given to Landlord by and  pursuant  to the  provisions  of Article 14,
"Defaults;  Remedies". The statement in this Lease of the nature of the business
to be conducted by Tenant in demised  Premises  shall not be deemed or construed
to  constitute a  representation  or guaranty by Landlord  that such business is
lawful or  permissible  or will continue to be lawful or  permissible  under any
Certificate of Occupancy issued for the Project or otherwise permitted by law.

      Tenant shall not cut or puncture the roof of the Premises nor go on to the
roof of the Premises or the Project nor authorize anyone to cut,  puncture or go
on the roof of the  Premises  or Project  without the prior  written  consent of
Landlord.

      Landlord  reserves  to  itself  the right to use any  Common  Areas of the
Project  or to  license  the use of  Common  Areas to  others  under  terms  and
conditions to be determined solely in the discretion of Landlord.

      4.2  COVENANT TO OPERATE.  As a material  inducement  to Landlord to enter
into .this Lease,  Tenant hereby  covenants and agrees to  continuously  operate
during normal business hours a business in the Premises in conformance  with the
Use. Normal hours as used in this section shall mean the usual business hours of
each and every day as is customary for business of like character in the City of
Tucson to be open for  business.  In addition  to the  foregoing,  Landlord  and
Tenant may enter into a written agreement that specifically sets forth the times
and days during which Tenant shall  continuously  operate its business  from the
Premises. Tenant's agreement to operate its business from the Premises shall not
apply during any period that the  Premises  should be closed and the business of
Tenant  temporarily  discontinued  therein on account of  strikes,  lockouts  or
similar  courses  beyond  the  reasonable  control of Tenant or closed for up to
three (3) days out of respect to the memory of any deceased  officer or employee
of Tenant.  Tenant shall keep the Premises  adequately  stocked with merchandise
and with  sufficient  sales  personnel to care for the  patronage and to conduct
business in accordance with sound business practices.

      4.3 ABANDONMENT.  Tenant shall not vacate or abandon the Premises;  and if
Tenant shall  abandon,  vacate or surrender the Premises or be  dispossessed  by
process of law or otherwise,  any personal property belonging to Tenant and left
on the Premises shall be deemed to be abandoned,  at the option of Landlord.  In
the event that  Landlord  shall elect to declare such  property  abandoned,  the
title to such  property  shall pass to Landlord and Landlord may dispose of such
property without any obligation to Tenant.

      4.4 COMPLIANCE WITH LAW. Tenant shall,  at Tenant's  expense,  comply with
all applicable  statutes,  ordinances,  rules, orders and requirements in effect
during the term or any part of the term of this Lease, which shall impose a duty
upon Landlord or Tenant with respect to the use,  occupancy or alteration of the
Premises.

      4.5 RULES AND REGULATIONS. Tenant shall faithfully observe and comply with
the rules and  regulations  attached  to this Lease as Exhibit C (the "Rules and
Regulations")  and all reasonable  modifications  or additions  thereto put into
effect  by  Landlord.  Landlord  shall  not be  responsible  to  Tenant  for the
non-observance  of the Rules and  Regulations by any other tenant or occupant of
the  Project.  Tenant's  obligation  to observe  and  comply  with the Rules and
Regulations  shall  not be  diminished  by the  non-observance  of the Rules and
Regulations by any other tenant or occupant of the Project.

      4.6 CONDITION OF PREMISES. Tenant acknowledges.  that neither Landlord nor
Landlord's agents have made any representation or warranty as to the suitability
of the Premises for the conduct of Tenant's business.  Tenant hereby accepts the
Premises in their  condition  existing as of the date Tenant  signed this Lease,
subject  to:  (a) All  applicable  zoning,  municipal,  county  and state  laws,
ordinances and regulations governing and regulating the use of the Premises; (b)
All the terms of the  Landlord and Tenant Work which may be defined on

<PAGE>

Exhibit B and all matters  disclosed  thereby;  and (c) By all exhibits attached
hereto.

ARTICLE 5: RENT

      5.1 BASE RENT.  The Total Base Rent for the Term of this Lease (subject to
the adjustments of Section 5.4) shall be as stated on Exhibit A (the "Total Base
Rent"). The Total Base Rent shall be paid to Landlord in monthly installments as
set forth on Exhibit A (the  "Monthly  Base Rent").  Total Base Rent and Monthly
Base Rent are sometimes collectively referred to in this Lease as "Base Rent".

      5.2 ADDITIONAL  RENT. All amounts payable under this Lease, in addition to
the Base Rent,  shall be deemed to be additional rent (the  "Additional  Rent").
Additional  Rent shall include,  by way of example but not by way of limitation,
Late Charges,  Rental Tax and  reimbursement by Tenant to Landlord for Operating
Costs, Utility Costs and Real Estate Taxes as provided for in this Lease,

      5.3 RENT.  Base Rent,  Monthly Base Rent and Additional Rent are sometimes
collectively referred to in this Lease as the "Rent".

      5.4 RENT ADJUSTMENT.  The original Monthly Base Rent (as set forth in this
Lease Exhibit A) shall be increased  during the Term of this Lease and as it may
be  extended  on the  first day of each  Adjustment  Month (as set forth in this
Lease Exhibit A) to an amount which is (stricken  text) THREE PERCENT (3 %) over
the Monthly Base. Rent. in the month immediately preceding the Adjustment Month.

      5.5 RENT PAID IN LAWFUL MONEY OF THE UNITED STATES OF AMERICA.

      (a) All Rent and other sums shall be payable to Landlord at the Landlord's
      address  stated on  Exhibit A or to such  other  persons  or at such other
      places as Landlord may designate in writing..

      (b)  Without  notice  from  Landlord,  Monthly  Base Rent shall be paid in
      advance'on the first day of the month, for each and every month during the
      term of this Lease as it may be extended or renewed. Monthly Base Rent for
      any  period  during the term  hereof  which is for less than one (1) month
      shall be a,pro rata portion of the monthly installment.

      (c) Additional Rent shall be paid in the manner and at the times set forth
      elsewhere in this Lease.

      5.7 RENTAL TAX. Tenant shall pay to Landlord any and all excise, privilege
and other taxes (other than net income and estate  taxes)  levied or assessed by
any federal, state or local authority on the Rent and all other sums received by
Landlord hereunder, and Tenant shall bear any business tax imposed upon Landlord
by any  governmental  authority  which is based or  measured in whole or part by
amounts charged or received by Landlord from Tenant. '

      5.8 CHARGE FOR PAST DUE  OBLIGATIONS.  Landlord  has made  provisions  for
paying mortgage payments,  utility bills,  salaries and other amounts based upon
the  prompt  payment  by Tenant of all Rent and  other  sums when due.  Tenant's
failure to pay such sums when due shall cause loss and injury to Landlord  which
shall be difficult to calculate and quantify.  Such costs  include,  but are not
limited to, additional overhead and salary expenses related to following up late
payments,  the  inconvenience  and cost to Landlord of timely performing its own
obligations  by  obtaining  such sums from other  sources,  and  processing  and
accounting  charges  and late  charges  which may be imposed on  Landlord by the
terms of any mortgage or trust deed covering the Premises.  Therefore,  Landlord
and Tenant agree that as liquidated damages, Tenant shall pay to Landlord a late
charge  equal to ten percent  (10%) of all sums due if such sums are not paid by
5:00 p.m.  Mountain  Standard  Time on the date when they are due.  The  parties
hereby agree that such late charge represents a fair and reasonable  estimate of
the costs Landlord will incur by reason of late payment. Acceptance of such late
charge by Landlord  shall in no event  constitute  a waiver of Tenant's  default
with respect to such overdue amount, nor prevent Landlord from exercising any of
the other  rights and  remedies  granted  hereunder,  Time is of the essence and
Landlord  shall not be  required  to  provide  notice or grace  period to Tenant
relating to the payments  which  Tenant is  obligated  to make  pursuant to this
Lease.

ARTICLE 6: SECURITY

      6.1 SECURITY  DEPOSIT.  Tenant shall deposit with Landlord upon  execution
hereof  the sum set  forth on  Exhibit  A as a  security  deposit  for  Tenant's
faithful performance of Tenant's obligations hereunder (the "Security Deposit").
If the  Monthly  Base Rent shall from time to time  increase  during the term of
this  Lease,  Tenant  shall  deposit  with  Landlord a sum as an addition to the
Security  Deposit  equal to the amount of the  increase.  If Tenant fails to pay
Monthly  Base Rent,  Additional  Rent or other  charges when due  hereunder,  or
otherwise  defaults  with respect to any  provision of this Lease,  Landlord may
use, apply or retain all or any portion of the Security  Deposit for the payment
of any Rent or other  charge in default,  or for the payment of any other sum to
which  Landlord  may  become  entitled  by reason  of  Tenant's  default,  or to
compensate Landlord for any loss or damage which Landlord may suffer thereby. If
Landlord  uses or applies all or any  portion of the  Security  Deposit,  Tenant
shall within ten (10) days after written demand therefore deliver to Landlord an
amount  sufficient  to  restore  the  Security  Deposit  to the full  amount and
Tenant's  failure to do so shall be a material  breach of this  Lease.  Landlord
shall not be required to keep the  Security  Deposit  separate  from its general
accounts.  If Tenant performs all of Tenant's  obligations under this Lease, the
Security Deposit, or so much thereof as has not been applied by Landlord,  shall
be returned without payment of interest to Tenant (or, at Landlord's  option, to
the last assignee,  if any, of Tenant's  interest  hereunder) within thirty (30)
days after the expiration of the term of this Lease.

      6.2 ADDITIONAL SECURITY. To secure all of Tenant's obligations to Landlord
hereunder,  Tenant hereby grants to Landlord a security

<PAGE>

interest in all personal property including equipment,  furniture,  fixtures and
inventory used,  generated or employed in connection with Tenant's  business and
located in, on or about the Premises,  together with all such personal  property
hereafter  acquired,  and all replacements for and proceeds from all or any part
of such personal property (the "Collateral"). Tenant hereby gives Landlord Power
of Attorney to execute any financing  statement or other  document  necessary or
,appropriate to perfect  Landlord's  security  interest in the Collateral.  Upon
default by Tenant of any of its obligations  arising  hereunder,  Landlord shall
have all the rights and remedies  before and after  default  provided for in the
Uniform  Commercial  Code in force in the State of Arizona as of the date hereof
and, in addition thereto, in conjunction  therewith or in substitution for those
rights and  remedies,  it is agreed that  Landlord  may, at its  discretion  and
without  notice,  enter upon the Premises to take  possession  of,  assemble and
collect  the  Collateral  or to render it  unusable.  Upon  default  by  Tenant,
Landlord may, at its  discretion,  require Tenant to assemble the Collateral and
to make it  available  to  Landlord  at a place  Landlord  designates  which  is
mutually convenient;  and written notice mailed to Tenant ten (10) days prior to
the date of  public  sale of the  Collateral  or prior to the date  after  which
private sale of the Collateral will be made shall constitute  reasonable  notice
of such a sale of the Collateral.

ARTICLE 7: OPERATING COSTS, UTILITY COSTS AND REAL ESTATE TAXES

      7.1 TENANT'S  SHARE.  Tenant shall pay to Landlord,  as  Additional  Rent,
Tenant's  Proportionate  Share of: a) Operating  Costs (defined below in Section
7.4) for each calendar year; and separately, (b) Utility Costs (defined below in
Section 7.5) for each calendar year; and separately, (c) Taxes (defined below in
Section 7.6) for each calendar year.  Tenant's  Proportionate Share is set forth
on Exhibit A. In this Lease, its Exhibits or Addenda,  Operating Costs,  Utility
Costs and Taxes are sometimes collectively referred to as "CAM."

      7.2  ANNUAL  STATEMENTS.  From time to time  Landlord  shall,  by  written
notice,  specify:  Landlord's  estimate of Tenant's separate  obligations (under
Section 7.1) for Operating Costs, for Utility Costs and for Taxes.  Tenant shall
pay one-twelfth  (1/12) of the estimated annual  obligations on the first day of
each  calendar  month.  Within  ninety (90) days after the end of each  calendar
year,  Landlord shall provide to Tenant a written summary of the Operating Costs
for the  calendar  year  (determined  on an  accrual  basis and  broken  down by
principal  categories of expense),  a separate  written summary of Utility Costs
for the  calendar  year  (determined  on an  accrual  basis and  broken  down by
principal  categories of expense),  and a separate  written summary of Taxes for
the calendar year.  The statement  also shall set forth  Tenant's  Proportionate
Share of  Operating  Costs,  Utility  Costs and Taxes and shall show the amounts
paid or  refunded,  as the case may be,  within  fifteen  (15)  days  after  the
statement is provided. Late delivery of the annual statement of Operating Costs,
Utility Costs and Taxes shall not relieve Tenant of any obligation  with respect
to payment of Tenant's Proportionate Share of the Operating Costs, Utility Costs
and Taxes.

      7.3 PARTIAL YEAR  PROBATION.  During the first and last years of the Term,
Tenant's  responsibility  for Operating Costs,  Utility Costs and Taxes shall be
adjusted in the proportion  that the number of days of that calendar year during
which  the Lease is in  effect  bears to three  hundred  sixty  (360).  Tenant's
obligations  under this  Article 7 for the payment of Operating  Costs,  Utility
Costs and Taxes during the Lease Term,  including the payment of any  deficiency
following  receipt of the annual  statement under Section 7.2, shall survive the
expiration or termination of this Lease.

      7.4  OPERATING  COSTS.  Operating  Costs consist of all  expenditures  for
operating,  maintaining  and  repairing  the Project,  except  Utility Costs (as
defined in Section 7.5). Operating Costs shall include, without limitation,  the
following: (a) Premiums for property, casualty,  liability, rent interruption or
other  insurance;  (b)  Salaries,  wages and other  amounts  paid or payable for
personnel   including  the  Project  manager,   superintendent,   operation  and
maintenance  staff and other  employees of Landlord  involved in the maintenance
and  operation  of the Project,  including  contributions  and premiums  towards
fringe benefits,  unemployment and worker's compensation insurance, pension plan
contributions  and similar premiums and  contributions  and the total charges of
any  independent   contractors  or  managers   engaged  in  the  repair,   care,
maintenance,  and cleaning of any portion of the Project; (c) Cleaning of Common
Areas and refuse  removal;  (d)  Landscaping,  including  irrigating,  trimming,
mowing,  fertilizing,  seeding,  replacing  plants,  and  irrigation  repair and
replacement  including lines,  valves and timers;  (e)  Maintaining,  operating,
repairing and replacing  components  of equipment  serving the Common Area;  (f)
Maintaining,  repairing and replacing all equipment, pipes, ducts and electrical
lines  which  are  directly  or  indirectly   associated   with   providing  air
conditioning  to any area of the Project whether or not such area is Common Area
or an area  reserved for the  exclusive  use of any tenant of the  Project;  (g)
Other  items  of  repair  or  maintenance  of  the  Project  including,  without
limitation,  roofs,  exterior  walls,  foundations,  structure and the sweeping,
striping  and  sealing  of  parking  areas;  (h) The cost of the  rental  of any
equipment and the cost of supplies used in the  maintenance and operation of the
Project;  (i) Audit fees and the cost of  accounting  services  incurred  in the
preparation  of statements  referred to in this Lease and financial  statements,
and in the  computation  of the rents and  charges  payable  by  tenants  of the
Project;  (j) Any increase in (1) the rent payable under any ground lease now or
hereafter affecting the real property of which Premises forms a part, or (2) the
interest  payable  with  respect to any  permanent  financing  now or  hereafter
affecting the Project which increase  results not from a refinancing  but solely
from a  provision  for such  increase  in the  applicable  loan  documents;  (k)
Alterations to the Project or the areas used in connection with the operation of
the  Project  for  life-safety  systems  and  other  capital   improvements  and
replacements  together  with all costs and  interest  thereon  at.an annual rate
equal to the Improvement  Interest Rate (as defined  below),  all amortized over
their  useful  life;  (1) Such other items as are now or  hereafter  customarily
included  in the  cost of  managing,  operating,  maintaining,  overhauling  and
repairing the Project and the areas used in connection with the operation of the
Project in accordance  with now or hereafter  accepted  accounting or management
principles or practices, including but not limited to reserves for all operating
costs with a useful life greater than one year and the cost of removal, disposal
and  recycling  costs  associated  with all  fluorescent  bulbs as  mandated  by
governmental laws or regulators;  and, the administrative  cost and expenses for
telephone,   fax,  pagers,  answering  service,   postage,   supplies,  and  the
electricity,  alarm services and janitorial service for the Project's management
office;  and (m) A fee for the  management  of the Project equal to five percent
(5%) of the Rent  (Paragraph  5.3)  collected  for the Project.  Notwithstanding
anything to the  contrary  in this  Section  7.4,  "Operating  Costs"  shall not
include:  (a) Amounts reimbursed by other sources,  such as insurance  proceeds,
equipment  warranties,  judgments or  settlements;

<PAGE>

(b)  Construction of tenant  improvements;  (c) Utility Costs;  (d) Replacements
(but not repairs) of structural elements;  (e) Leasing commissions;  (f) General
overhead and  administrative  expenses of Landlord  not directly  related to the
operation of the Project;  and (g) Costs of negotiating  or enforcing  leases of
other  tenants.  The  Improvement  Interest Rate shall mean a rate equal to four
percent  (4%) over the  annual  prime rate of  interest  announced  publicly  by
Citibank,  N.A.  in New  York,  New  York,  and in  effect  at the time when the
alteration, replacement or capital improvement was completed.

      7.5 UTILITIES.  "Utility Costs" shall mean the total cost of supplying the
Utilities to the Project  including taxes thereon..  "Utilities"  shall mean all
gas, electric,  heat, light,  water,  phone, cable television or other utilities
used or to be used at the  Project.  Utility  Costs  shall  include:  a) Repairs
associated with the delivery and  distribution of Utilities,  and b) The cost of
capital improvements,  alterations and replacements to Utility systems installed
after the base year,  together with all associated costs and interest thereon at
an annual  rate equal to the  Improvement  Interest  Rate (as defined in Section
7.4), all amortized over their useful life;  except that, any such capital costs
(and the interest thereon) incurred in connection with improvements, alterations
and replacements for Utility conservation systems or devices may be amortized at
a yearly rate equal to the cost savings  realized during such period as a result
of such improvement, alteration and replacement. Notwithstanding anything to the
contrary in this Section  7.5,  "Utility  Costs" shall not include:  (a) Amounts
reimbursed by other  sources;  or (b) Utilities or other  expenses paid directly
by, tenants to suppliers or paid by tenants to Landlord for  separately  metered
or special services.

      7.6 TAXES.  "Taxes" shall mean taxes and assessments  upon or with respect
to the Project  and the areas'  used in  connection  with the  operation  of the
Project  imposed  by  federal,   state  or  local  governments  or  governmental
assessment distrii6ts,  but shall not include income, franchise,  capital stock,
estate or  inheritance  taxes,  but shall include gross receipts taxes and other
business  taxes.  If,  because of any change in the method of  taxation  of real
estate,  any tax or assessment is imposed upon Landlord or upon the owner of the
land and/or the Project  and/or the areas used in connection  with the operation
of the Project or upon or with respect to the land and/or the Project and/or the
areas  used in  connection  with the  operation  of the  Project or the rents or
income therefrom,  in substitution for or in lieu of any tax or assessment which
would otherwise be a real estate tax or assessment  subject  matter,  such other
tax or assessment shall be deemed to be included in Taxes. All costs incurred by
Landlord relating to the appeal or protest of real estate taxes, assessments, or
valuations shall be included in the most current  calculation of real.  property
tax costs when  incurred and all savings  received from such appeals or protests
shall be applied to reduce real property tax costs when received.

      7.7 RECORD KEEPING.  The Landlord shall keep complete and accurate records
and accounts of all Operating  Costs,  Utility Costs, and Taxes for a period not
to exceed 24 months.  Only within 24 months of the date Tenant.  receives a bill
pursuant  to Section  7.2  Tenant  may,  upon 30 days  advance  written  notice,
request.  an  inspection  of the  records  which  support the  specific  charges
questioned by such notice. At no cost to Tenant,  Landlord shall, during regular
btisiriesshours,  provide.Tenant  the  opportunity  to examine  and  inspect the
records which support the charges billed to Tenant  pursuant to Section 7.2 (the
"Audit");  Such Audit shall occur at such place designated by Landlord that does
not disrupt or interfere with Landlord's conduct of its business.

      Notwithstanding  the  foregoing,  Tenant may only  conduct an Audit  after
Tenant and Tenant's  representatives  engaged in the Audit ("Auditors") agree in
writing  (the  "Audit  Agreement"):  (a)  to  not  compensate  an  Auditor  on a
contingency  basis  where the amount of  compensation  paid to the  Auditor is a
function of the Tenant's  recoveries  in an audit (b) to keep all matters  which
are the subject of the Audit strictly confidential and (c) to indemnify and hold
Landlord  harmless  from any cost or expense  caused by any failure to keep such
information confidential.

      Notwithstanding the foregoing,  Tenant shall have no right to Audit any of
Landlords  books or records if Tenant is in default under the Audit Agreement or
in the performance of any of its obligations under the Lease. Should Tenant wish
to Audit any charges which are currently due. Tenant must first pay such charges
under protest  before Tenant may request an Audit of the books and records which
support such charges.

      Tenant may  request  Landlord to make  copies of  specific  documents  for
Tenant to keep at a charge of $.25 per sheet  copied,  said amount to be paid in
advance at the time of such request.  In the event Tenant requests meetings with
Landlord  which  cumulatively  exceed  two  hours,  then  Tenant  shall  pay the
reasonable  cost of the  Landlord's  personnel  involved in such meetings  which
shall be not less than $25 per hour.  Payment for such meetings shall be made in
advance at the time of such  request.  Tenant  shall  forward to Landlord all of
Tenant's audit reports upon their  completion.  If Tenant's audit shall disclose
an  inaccuracy  greater  than 5% with  respect to the  amounts  billed to Tenant
pursuant to Section 7.2, then  Landlord  shall refund to Tenant the amounts paid
by Tenant to Landlord  for copies and the amounts paid by Tenant to Landlord for
meetings.  In the event of any inaccuracy,  Tenant or Landlord,  as the case may
be, shall pay to the other any amounts due.

ARTICLE 8: INSURANCE; INDEMNITY

      8.1 LIABILITY INSURANCE.  Tenant shall, at Tenant's.  expense,  obtain and
keep in force, during the term of this Lease, a policy of Comprehensive  General
Liability  Insurance naming  Landlord,  owner (if owner is other than Landlord),
and  Landlord's  lender as additional  insureds.  The minimum limit of liability
shall be $1,000,000  combined single limit for bodily injury and property damage
with a $2,000,000  aggregate limit.  This policy should be an "occurrence  form"
policy.  Tenants  whose  operations  include  the  service  or  retail  sales of
alcoholic  beverages  shall also provide  Landlord with evidence of liquor legal
liability  insurance with amounts not less than $1,000,000 per  occurrence.  All
required liability insurance shall name Landlord,  owner (if owner is other than
Landlord),  and  Landlord's  lender as additional  name insureds and shall state
that  Tenant's  coverage  is  primary  of any  similar  coverage  maintained  by
Landlord,  owner or  Landlord's

<PAGE>

lender.  If Tenant shall fail to procure and maintain said  insurance,  Landlord
may,  but is not  required  to,  procure and maintain the same at the expense of
Tenant. If Landlord  provides such insurance,  the.cost plus a service charge of
10% shall be payable as Additional  Rent with the Tenant's next rental  payment.
Landlord  will  require  Tenant to provide  evidence of the  insurance  coverage
outlined above before occupying the Premises.

      8.2 PROPERTY  INSURANCE.  Landlord  shall keep in force during the term of
this Lease a. policy of insurance  covering  Premises with a "special" causes of
loss form.  Tenant  shall  reimburse  Landlord  for such  insurance  pursuant to
Article 7 "Operating Cost, Utility Costs and Real Estate Taxes". Tenant shall be
responsible  to  insure  at  full  replacement  value  and  naming  Landlord  as
additional  insured,  any  personal  property  of  Landlord  leased to Tenant in
connection with Tenant's lease of the Premises and any other personal  property,
including  improvements  and betterments  placed in or on the Premises by Tenant
and at full replacement value, all glass,  windows,  doors door frames and locks
which comprise a part of the Premises.  Tenant assumes full  responsibility  for
protecting,  safeguarding  and insuring its personal  property  maintained in or
about the  Premises.  Landlord  recommends  that Tenant  install and  maintain a
monitored  burglar alarm system.  Tenant waives all claims against  Landlord for
any  damage  or loss to  Tenant's  property  required  to be  insured  by Tenant
pursuant to this paragraph.

      8.3 TENANT'S USE LIMITED BY INSURANCE.  Tenant shall not use the Premises,
or any part thereof, for any purposes other than the purposes for which Premises
are leased as stated in Section 4.1  Activities by Tenant on the Premises  which
would  increase  the cost of insurance or cause  cancellation  of any  insurance
covering the building is prohibited.  Tenant will not sell or permit to be kept,
used or sold in or about the Premises  any article  which may be  prohibited  by
standard property insurance policies. Tenant will, at his sole cost, comply with
any and all requirements of any insurance  company  pertaining to the use of the
Premises in order to maintain property and liability coverages as established by
Landlord's  insurance  company.  In the event the  Tenant's  use of the Premises
results in a cost increase of insurance  for the Landlord,  the Tenant shall pay
annually in advance on the anniversary  date of this Lease, as Additional  Rent,
the cost of the additional premium.

      8.4 MUTUAL WAIVER OF  SUBROGATION.  Landlord  waives any and all rights of
recovery  against Tenant for damage to or destruction of the Project or Premises
from any cause insured against under the Landlord's insurance policy required in
Section  8.2,  but only to the extent of the  coverage  provided by said policy.
Tenant waives any and all rights of recovery  against  Landlord for damage to or
destruction  of any property of Tenant,  from causes  insured  against under the
Tenant's  insurance  policy required within Section 8.2., but only to the extent
of the coverage  required by said policy.  Landlord  and Tenant  represent  that
their present insurance policy now in force permit waiver of subrogation.

      8.5 TENANT'S RESPONSIBILITY. Tenant shall carry such business interruption
insurance as is reasonable for the nature and type of Tenant's business.  Tenant
agrees that Landlord shall not be liable for injury to Tenant's  business or any
loss of income therefrom or for damage to the goods, wares, merchandise or other
property of Tenant, Tenant's employees,  invitees, customers or any other person
in or about Tenant's  Premises.  Tenant agrees  Landlord shall not be liable for
any  damage to  Tenant's  property  arising  from any act or  neglect of another
tenant of the PROJECT.

      8.6 INSURANCE POLICIES. Insurance required hereunder shall be in companies
rated an ".`A" or above in "Best's"  Insurance  Reports.  Tenant will deliver to
the  Landlord  prior to  Tenant's  occupancy  a  certificate  of  insurance  for
coverages  required  under  Article 8. The  insurance  policies  required  under
Article 8 shall provide that they' will not be canceled  .without  thirty,  (30)
days prior written notice to Landlord. Tenant will furnish Landlord with renewal
certificates  of insurance 30 days prior to expiration  of Tenant's  policies or
Landlord may order such  insurance and charge the cost thereof to Tenant in .the
manner set forth in Section 8.1. "Liability Insurance".

      8.7 INDEMNITY.  Subject to paragraph 8.4, to the fullest extent  permitted
by law, the Tenant agrees to  indemnify,  defend,  and hold  harmless  Landlord,
owner and their  agents,  officers  and  employees  from and against any and all
loss,  damage  or  claim  including  reasonable  attorney's  fees  and  costs of
investigation  arising from  Tenant's use of the Premises or from the conduct of
Tenant's  business  or from any  activity,  work or things  done,  permitted  or
suffered  by Tenant in or about  the  Premises  and the  Project.  Tenant  shall
further indemnify and hold harmless and defend Landlord from and against any and
all loss,  damage or claim arising from any breach or default in the performance
of any obligation on Tenant's part to be performed under the terms of this Lease
or  arising  from any  negligence  of the  Tenant or any of  Tenant's  invitees,
agents,  contractors  or  employees  and from and against all costs,  attorney's
fees,  expenses and  liability  incurred in the defense of any such claim or any
action or proceeding brought thereon.

ARTICLE 9: TAXES

      9.1  LANDLORD'S  OBLIGATION  FOR REAL PROPERTY  TAXES.  Landlord  shall be
responsible  for paying real property  taxes and  assessments  applicable to the
Premises,  subject to Tenant's  obligation  to  reimburse  Landlord  pursuant to
Article 7, "Operating Costs, Utility Costs and Real Estate Taxes".

      9.2 TENANT'S OBLIGATION FOR TAXES.

            (a) Tenant  shall pay before  delinquent  all taxes  levied  against
trade  fixtures,  furnishings,  equipment,  improvements  and all other personal
property located on or about the Premises, including all personal property owned
by Landlord  and leased to Tenant  pursuant  to the terms of this Lease.  Tenant
shall attempted to have the trade fixtures, furnishings, fixtures, equipment and
all other  personal  property  assessed  separately  from the real  property and
billed  directly to Tenant.  If any personal  property is assessed with the real
property,  Tenant

<PAGE>

shall pay Landlord the taxes attributable to the personal property within thirty
(30) days after demand by Landlord  containing a written  statement  showing the
taxes on the personal property.

            (b)   Tenant  agrees to pay all taxes except income tax which may be
                  levied or  assessed  upon any Rent  payment  made by Tenant or
                  Landlord.

            (c)   Tenant  shall  reimburse  Landlord  for Taxes as  provided  in
                  Article 7,  "Operating  Costs,  Utility  Costs and Real Estate
                  Taxes".

            (d)   Landlord's  failure to notify  Tenant  within the time  period
                  referenced above to pay its proportionate share of the Taxes _
                  specified in subparagraphs (a), (b) and (c) shall not serve as
                  a waiver by Landlord of these amounts.

ARTICLE 10: UTILITIES

      10.1  TENANT'S  OBLIGATION  FOR  UTILITIES.  Tenant shall pay for all gas,
heat, light,  power,  telephone and other utilities and services supplied to the
Premises,  together with any taxes thereon.  Tenant shall reimburse Landlord for
Utility Costs as provided in Article 7, "Operating Costs, Utility Costs and Real
Estate Taxes". During the term of this Lease, Tenant shall cause the Premises to
be served continuously by means of an active account with a licensed provider of
electricity.  Failure to maintain an active  connection  with such a provider of
electricity shall be a default under the Lease.

            10.2 TELECOMMUNICATIONS CARRIER'S ACCESS.

            (a)   GRANTER OF  CARRIER'S  LICENSE.  Tenant's  right to select and
                  utilize a telecommunications  and data carrier (the "Carrier")
                  shall be conditioned on the execution by such Carrier of:_

                  (i)   a license  agreement,  in a form acceptable to Landlord,
                        at its absolute  discretion,  pursuant to which Landlord
                        shall  grant to the  Carrier a license  (which  shall be
                        coextensive  with the rights and  privileges  granted to
                        Tenant under this Lease) to install, operate,  maintain,
                        repair,  replace, and remove cable and related equipment
                        within the Premises and vertical and horizontal pathways
                        outside of the  Premises  that are  necessary to provide
                        telecommunications  and data  services  to Tenant at the
                        Premises,  as well as to hold Landlord harmless in those
                        services.

            (b)   NO EXCLUSIVE  RIGHTS.  The license  contemplated  herein to be
                  granted to the  Carrier  shall  permit the  Carrier to provide
                  services  only to  Tenant  and  not to any  other  tenants  or
                  occupants  of  the  Building  and  shall  require  all  of the
                  Carrier's  equipment  (other  than  connecting  wiring)  to be
                  located in the Tenant's Premises.  The License shall not grant
                  an  exclusive  right to  Tenant  or to the  Carrier.  Landlord
                  reserves the right, at its sole discretion,  to grant,  renew,
                  or  extend  licenses  to  other  telecommunications  and  data
                  carriers  for  the  purposes  of  locating  telecommunications
                  equipment  in the  Building  which may  serve  Tenant or other
                  tenants in the Building.

            (c)   NO GREATER  RIGHTS.  Except to the extent  expressly set forth
                  herein,  nothing herein shall grant to the Carrier any greater
                  rights or  privileges  than Tenant is granted  pursuant to the
                  terms  of this  Lease  or  diminish  Tenant's  obligations  or
                  Landlord's rights hereunder.

            (d)   TENANT   ENSURES   CARRIER'S   COMPLIANCE.   Tenant  shall  be
                  responsible  for ensuring  that the Carrier  complies with the
                  terms and conditions of the license agreement  relating to the
                  use of the Premises or the making of any physical  Alterations
                  imposed upon Tenant under this Lease to the extent the Carrier
                  operates or maintains  any  equipment or delivers any services
                  in the  Premises.  Any  failure by the  Carrier to observe and
                  comply with such terms,  conditions,  agreement, and covenants
                  on behalf of Tenant,  to the extent the  Carrier  operates  or
                  maintains  any  equipment  or  delivers  any  services  in the
                  Premises or the Licensed  Areas,  shall be a default under the
                  Lease.

ARTICLE 11: MAINTENANCE, REPAIRS, AND ALTERATIONS

      11.1 LANDLORD'S OBLIGATIONS.  Landlord shall maintain the air conditioning
units  and/or  evaporative  coolers  that  serve the  Premises.  Subject  to the
provisions of Article 12, "Damage or Destruction",  and except for damage caused
by any  negligent or  intentional  act or omission of Tenant,  Tenant's  agents,
employees or invitees,  Landlord shall keep in good order,  condition and repair
the foundations,  exterior walls and the exterior roof of the Premises. Landlord
shall have no  obligation  to make repairs under this Section until a reasonable
time  after  Landlord  receives a written  notice of the need for such  repairs.
Tenant  expressly  waives the benefits of any statute now or hereafter in effect
which would  otherwise  afford  Tenant the right to make repairs or to terminate
this Lease  because of  Landlord's  failure to keep the  Premises in good order,
condition and repair.  Except as provided in Section  12.5,  "Abatement of Rent;
Tenant's  Remedies",  there shall be no  abatement  of Rent and no  liability of
Landlord by reason of any injury or interference  with Tenant's business arising
from making of repairs, alterations or improvements to the Project. Tenant shall
reimburse  Landlord  for the repairs and  maintenance  set forth in this Section
11.1 as provided in Article 7, "Operating  Costs,  Utility Costs and Real Estate
Taxes".

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      11.2 TENANT'S OBLIGATIONS.

      (a)   Subject to the  provisions of Article 12,  "Damage or  Destruction",
            Section 11.1, "Landlord's Obligations",  and Section 7.4, "Operating
            Costs",  Tenant,  at  Tenant's  expense,  shall keep in good  order,
            condition and repair the Premises and every part thereof (regardless
            of  whether  the  damaged  portion of the  Premises  or the means of
            repairing  the same are  accessible  to Tenant)  including,  without
            limiting the generality of the foregoing, all plumbing, ventilating,
            electrical and lighting  facilities and equipment which  exclusively
            serves the Premises;  and all fixtures,  interior walls and interior
            surface of exterior walls,  ceilings,  windows,  locks,  doors, door
            frames,  plate glass and:  skylights which are part of the Premises.
            Tenant  shall  repair  any  and all  damage  to any  portion  of the
            Premises  caused by vandalism or burglary,  or any  intentional  or.
            negligent act or omission of Tenant;  Tenant's agents,  employees or
            invitees.  Tenant's obligations under this Section shall include the
            obligation  to  maintain,  repair and  replace  anywhere  within the
            Project  that  portion  of any sewer  line,  water  line,  gas line,
            electrical  distribution system and telephone line which exclusively
            serves the Premises.  Tenant  shall,  at Tenant's  expense,  provide
            janitorial services to the Premises  including,  without limitation,
            the  regular  cleaning  of  carpets,  floors  and  windows  and  the
            replacement of light bulbs,  air  conditioning  filters and restroom
            supplies.  In the event that  Tenant  operates  a business  from the
            Premises  which requires  grease traps and/or roof mounted-  exhaust
            fans,  Tenant shall,  at its own expense,  enter into and maintain a
            service  contract  with  a  vendor  approved  by  Landlord  for  the
            maintenance of the grease traps and the sewer lines leading from the
            grease trap to the public  sewer system and for the  maintenance  of
            the roof mounted exhaust fans (the "Service Contract").  The Service
            Contract shall contain such provisions as Landlord deems  reasonably
            necessary  to assure  that the  grease  traps  and the  sewer  lines
            leading  from it to the public  sewer  system will  operate  without
            interruption  in  trouble  free  manner  and that  the roof  mounted
            exhaust fans will be maintained on a regular basis and that the roof
            around  the fans will  remain  clean.  Landlord  shall be named as a
            third  party  beneficiary  of the Service  Contract  and the Service
            Contract  shall provide that Landlord shall be given 30 days written
            notice before it is terminated  for any reason.  Service  Contractor
            shall provide  Landlord a Certificate of Insurance for $1 million in
            liability insurance naming Landlord as Additional Insured.

      (b)   Tenant shall pay its Proportionate Share for the maintenance, repair
            or  replacement  of  all   air-conditioning,   cooling  and  heating
            equipment  or  systems  which  serve  the  Project   (including  the
            Premises) pursuant to Article 7, "Operating Costs, Utility Costs and
            Real Estate Taxes".

      (c)   On  the  last  day  of the  term  of  this  Lease  or on any  sooner
            termination,  Tenant shall surrender the Premises to Landlord in the
            same  condition as received,  broom  clean,  ordinary  wear and tear
            excepted.  Tenant shall repair any damage to the Premises occasioned
            by the removal of its trade  fixtures,  furnishings  and  equipment;
            which  repair  shall  include the  patching and filling of holes and
            repair of structural  damage.  Tenant shall repair or replace silver
            insulation in warehouse,  where applicable.  Tenant shall also leave
            in good repair and condition the electrical  (including light bulbs)
            systems  and  fixtures  and  plumbing  systems  and  fixtures of the
            Premises.

      11.3  LIFE-SAFETY  SYSTEMS.  If there now is or shall be  installed in the
Project a  sprinkler  system,  heat or smoke  detection  systems or any other so
called  life-safety system and any such system or any of its appliances shall be
damaged  or  injured  or not in  proper  working  order by  reason of any act or
omission of Tenant, Tenant's agents, servants; employees,  contractors, visitors
or licensees, Tenant shall forthwith restore the same to good working condition;
and if the Insurance  Services  Office 'or any other similar body or any bureau,
department  or  office  of  the  state,  county  or  city  government,   or  any
governmental  authority  having  jurisdiction,  require  or  recommend  that any
changes, modifications,  alterations or additional equipment be made or supplied
in or td any such  system by reason of  Tenant's  business  or the  location  of
partitions,  trade  fixtures  or other  contents  of  Premises,  or if any such:
changes, modifications,  alterations or additional equipment become necessary to
prevent the imposition of a penalty or charge against the full allowance for any
such system in the insurance rate as fixed by the Insurance  Services  Office or
by any insurance company,  Tenant shall, at Tenant's expense,  promptly make and
supply such changes, modifications, alterations or additional equipment.

      11.4 HAZARDOUS SUBSTANCES.

      (a)   Tenant covenants and warrants that Tenant's use of the Premises will
            at  all  times  comply  with  and  conform  to all  laws,  statutes,
            ordinances,    rules   and   regulations   of   any    governmental,
            quasi-governmental  or regulatory  authorities ("Laws") which relate
            to the  transportation,  storage,  placement,  handling,  treatment,
            discharge,   generation,   production   or  disposal   (collectively
            "Treatment")  of  any  waste,  petroleum  product,  waste  products,
            radioactive waste,  poly-chlorinated biphenyls,  asbestos, hazardous
            materials of any kind,  and any substance  which is regulated by any
            law, statute,  ordinance, rule or regulation (collectively "Waste").
            Tenant further  covenants and warrants that it will not engage in or
            permit any person or entity to engage in any  Treatment of any Waste
            on or which affects the Premises.

      (b)   Immediately upon receipt of any Notice (as hereinafter defined) from
            any  person or entity,  Tenant  shall  deliver  to  Landlord a true,
            correct and complete copy of any written Notice. "Notice" shall mean
            any note, notice or report of any suit,  proceeding,  investigation,
            order, consent order,  injunction,  writ, award or action related to
            or  affecting  or  indicating  the  Treatment  of  any  Waste  in or
            affecting the Premises.

      (c)   Tenant  hereby  agrees  it will  indemnify,  defend,  save  and hold
            harmless Landlord and Landlord's officers, directors,  shareholders,
            employees,  agents,  partners and their respective heirs, successors
            and assigns (collectively  "Indemnified  Parties") against and from,
            and to reimburse  the  Indemnified  Parties with respect to, any and
            all  damages,   claims,   liabilities,   loss,   costs  and  expense

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            (including,  without  limitation,  all attorneys' fees and expenses,
            court costs,  administrative costs and costs of appeals) incurred by
            or asserted against the Indemnified  Parties by reason of or arising
            out of:  (i) the  breach of any  representation  or  undertaking  of
            Tenant under this Section 11.4, or (ii) arising out of the Treatment
            of any Waste by Tenant or any licensee,  concessionaire,  manager or
            other party occupying or using the leased Premises,  in or affecting
            the leased Premises.

      (d)   Landlord is given the right, but not the obligation,  to inspect and
            monitor the  Premises  and  Tenant's use of the Premises in order to
            confirm Tenant's  compliance with the terms of this Section 11.4 and
            the  representations  set forth in this Section  11.4.  Landlord may
            require that Tenant  deliver to Landlord,  concurrent  with Tenant's
            vacating  the  Premises  upon the  expiration  of this  Lease or any
            earlier  vacation  of the leased  Premises  by Tenant,  at  Tenant's
            expense, a certified statement by licensed engineers satisfactory to
            Landlord,  in form and substance  satisfactory to Landlord,  stating
            that. Tenant, Tenant's Work and any alterations thereto and Tenant's
            use of the  Premises  complied  and  conformed  to all  Laws  `which
            relate. to the Treatment of any Waste in or affecting the Premises.

      (e)   Tenant  agrees  to  deliver  upon  request  from  Landlord  estoppel
            certificates  to Landlord  expressly  stipulating  whether Tenant is
            engaged  in or has  engaged  in the  Treatment  of any  Waste  in or
            affecting  the:  Premises,  and whether Tenant has caused any spill,
            contamination, discharge, leakage, release or escape of any Waste in
            or affecting the Premises, whether sudden or gradual,  accidental or
            anticipated  or any other  nature at or  affecting  the Premises and
            whether, to the best of Tenant's  knowledge,  such an occurrence has
            otherwise occurred at or affecting the Premises.

      11.5 ALTERATIONS AND ADDITIONS.

      (a)   Tenant shall make no  alterations,  improvements or additions to the
            exterior of the Premises. Tenant shall not, without Landlord's prior
            written consent,  make any alterations,  improvements,  additions or
            utility installations in, on or about the Premises. All alterations,
            improvements,  or additions shall comply with all laws,  ordinances,
            codes,  standards,  rules and  regulations of any federal,  state or
            local  governmental  agency  having   jurisdiction   thereof.  As  a
            condition to giving such  consent,  Landlord may require that Tenant
            agree to remove any such  alterations,  improvements,  additions  or
            utility  installations  at the expiration of the term and to restore
            the  Premises  to its prior  condition.  As a further  condition  to
            giving  such  consent,   Landlord  may  require  Tenant  to  provide
            Landlord,  at Tenant's sole cost and expense;  a lien and completion
            bond in an  amount  equal  to one and  one-half  (1-1/2)  times  the
            estimated cost of such improvements,  to insure Landlord against any
            liability  for  mechanics'  and  materialmen's  liens  and to insure
            completion of the work..

      (b)   Unless  Landlord  requires  their  removal  as set forth in  Section
            11.5(a),  all  alternations,  improvements,  additions  and  utility
            installations (whether or not such utility installations  constitute
            trade  fixtures of Tenant)  which may be made on the Premises  shall
            become the property of Landlord  and remain upon and be  surrendered
            with the Premises at the expiration of the term. Notwithstanding the
            provisions of this Section, Tenant's machinery and equipment,  other
            than that  which is  affixed  to the  Premises  so that it cannot be
            removed without  material  damage to the Premises,  shall remain the
            property  of Tenant  and may be  removed  by Tenant  subject  to the
            provisions of Section 11.5(c).

      (c)   Tenant  shall  pay,  when due,  all  claims  for labor or  materials
            furnished  or alleged to have been  furnished to or for Tenant at or
            for use in the  Premises,  which claims are or may be secured by any
            mechanics'  or  materialmen's  lien  against  the  Premises  or  any
            interest therein.  Tenant shall give Landlord not less than ten (10)
            days notice prior to the  commencement  of any work in the Premises,
            and   Landlord   shall   have   the   right  to  post   notices   of
            non-responsibility in or on the Premises as provided by law.

      d)    Prior to commencing to make any alterations, improvements, additions
            or utility  installations,  Tenant  shall  furnish  Landlord  with a
            certificate  of  insurance   evidencing  the  existence  of  owner's
            protective  liability  with the limits set forth in Section 8.1, and
            Tenant  shall  provide  Landlord  with   certificates  of  insurance
            evidencing  that  all  contractors,   subcontractors  and  companies
            furnishing  services and  materials  at or in the Premises  maintain
            concurrent limits of liability on a comprehensive  general liability
            basis.

      (e)-  Tenant,  at  Tenant's  expense,  shall  be  solely  responsible  and
            obligated to make all  modifications  to the Premises to comply with
            the Americans With  Disabilities  Act of 1990 ("ADA"),  as it may be
            amended from time to time.  Tenant shall also be responsible for the
            cost of  modification  to  common  areas  and to other  areas of the
            building,  if they are part of the "path of  travel"  created by the
            tenant's   alterations  and  improvements.   Tenant  shall  also  be
            responsible for the cost of making physical  changes in the Tenant's
            Premises  required  to  accommodate  the  Tenant's   employees  with
            disabilities.

      ARTICLE 12: DAMAGE OR DESTRUCTION

      12.1 PARTIAL DAMAGE - FULLY INSURED.  Subject to the provisions of Section
12.4,  "Damage Near End of Term",  if the Premises are damaged or destroyed  and
such damage or destruction  was caused by a casualty  covered under an insurance
policy maintained by Landlord pursuant to Section 8.2, "Property Insurance", and
the proceeds of such insurance are  sufficient to fully pay for the  restoration
of the Premises,  Landlord shall, at Landlord's  expense,  repair such damage as
soon as  reasonably  possible  and this Lease  shall  continue in full force and
effect.

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      12.2  PARTIAL  DAMAGE - NOT FULLY  INSURED.  Subject to the  provisions of
            Section 12.4,  "Damage Near End of Term",  if at any time during the
            term of this Lease the Premises  are damaged,  except by a negligent
            or willful  act of Tenant,  and such damage was caused by a casualty
            not fully covered under an insurance  policy  maintained by Landlord
            pursuant  to Section  8.2,  "Property  Insurance",  Landlord  may at
            Landlord's  option  either:  (a)  Repair  such  damage  as  soon  as
            reasonably possible at Landlord's expense, in which event this Lease
            shall continue in full force and effect,  or (b) Give written notice
            to Tenant within  thirty (30) days after the date of the  occurrence
            of such damage of Landlord's  intention to cancel and terminate this
            Lease as of the date of the occurrence of such damage.  In the event
            Landlord  elects to give  such  notice of  Landlord's  intention  to
            cancel and terminate this Lease, Tenant shall have the right, within
            ten (10) days after the  receipt  of such  notice,  to give  written
            notice to Landlord of  Tenant's  intention  to repair such damage at
            Tenant's expense with  reimbursement  from Landlord up to the amount
            of the insurance proceeds,  in which event this Lease shall continue
            in full  force and  effect  and  Tenant  shall  proceed to make such
            repairs as soon as reasonably possible. If Tenant does not give such
            notice within such ten (10) day period, this Lease shall be canceled
            and terminated as of the date of the occurrence of such damage.

      12.3  TOTAL  DESTRUCTION.  If at any  time  during  the  term  hereof  the
            Premises  are  totally  destroyed  from any cause not covered by the
            insurance  maintained by Landlord pursuant to Section 8.2, "Property
            Insurance"   (including  any  total   destruction   required  by  an
            authorized  public  authority),   this  Lease  shall   automatically
            terminate as of the date of such total destruction.

      12.4  DAMAGE NEAR END OF TERM. If the Premises are substantially destroyed
            or damaged during the last year of the term of this Lease,  Landlord
            may at Landlord's  option cancel and terminate  this Lease as of the
            date of occurrence of such damage by giving written notice to Tenant
            of  Landlord's  election to do so within  thirty (30) days after the
            date of occurrence of such damage.

      12.5  ABATEMENT OF RENT; TENANT'S REMEDIES.

(a)   If the Premises are destroyed or damaged and Landlord or Tenant repairs or
      restores  them  pursuant to the  provisions  of this  Article 12, the Rent
      payable  hereunder  for the period  during  which such  damage,  repair or
      restoration continues shall be abated in proportion to the degree to which
      Tenant's use of the Premises or,  alternative space (provided by Landlord)
      within the Project is  impaired.  Except for  abatement  of Rent,  if any,
      Tenant shall have no claim  against  Landlord  for any damage  suffered by
      reason of any such damage, destruction, repair or restoration.

(b)   If Landlord shall be obligated to repair or restore the Premises under the
      provisions  of this  Article  12 and shall  not  commence  such  repair or
      restoration  within ninety (90) days after such obligations  shall accrue,
      Tenant may at Tenant's  option cancel and  terminate  this Lease by giving
      Landlord written notice of Tenant's election to do so at any time prior to
      the commencement of such repair or restoration.  In such event, this Lease
      shall terminate as of the date of such notice. Any abatement in Rent shall
      be computed as provided in Section 12.5(a).

      12.6  TERMINATION  -  ADVANCE  PAYMENTS.  Upon  termination  of the  Lease
            pursuant to this Article 12, an equitable  adjustment  shall be made
            concerning  advance Rent and any advance  payments made by Tenant to
            Landlord.  Landlord shall, in addition,  return to Tenant so much of
            Tenant's  Security  Deposit as has not  theretofore  been applied by
            Landlord.

ARTICLE 13: ASSIGNMENT AND SUBLETTING

      13.1  CONSENT  REQUIRED.  Tenant shall not assign its interest  under this
            Lease or sublet all or any part of the Premises  without  Landlord's
            prior written  consent,  which shall not be  unreasonably  withheld.
            Tenant  shall:  not at any time  pledge,  hypothecate,  mortgage  or
            otherwise encumber its interest under this Lease as security for the
            payment of a debt or the performance of a contract. Tenant shall not
            permit its interest  under this Lease to be transferred by operation
            of law. Any purported assignment or sublease made without Landlord's
            consent shall be void. If Tenant is a  partnership;  association  or
            corporation, the cumulative sale or transfer of a forty-nine percent
            (49%) interest or greater,  either  directly or  indirectly,  of the
            entity shall  constitute  an  assignment  hereunder.  If Tenant is a
            limited partnership,  the substitution.  of a general partner or the
            transfer of a 49% or; more ownership interest in the general partner
            shall constitute an assignment hereunder.

      13.2  REQUESTS FOR APPROVAL.  Landlord  shall be under no  obligations  to
            decide whether  consent will be given or withheld  unless Tenant has
            first  provided to Landlord:  (a) The name and legal  composition of
            the proposed  assignee or subtenant  and the nature of its business;
            (b) The use to which the proposed  assignee or subtenant  intents to
            put the  Premises;  (c) The terms  and  conditions  of the  proposed
            assignment or sublease and of any related transaction between Tenant
            and the proposed assignee or subtenant;  (d) Information  related to
            the  experience,  integrity and financial  resources of the proposed
            assignee or subtenant;  (e) Such information as Landlord may request
            to supplement,  explain or provide details of the matters  submitted
            by  Tenant  pursuant  to  subparagraphs  (a)  through  (d);  and (f)
            Reimbursement   for  all  costs  incurred  by  Landlord,   including
            attorneys'  fees,  in  connection  with  evaluating  the request and
            preparing any related documentation.

      13.3  CONTINUED  RESPONSIBILITY.  Tenant  shall  remain  fully  liable for
            performance  of  this  Lease,   notwithstanding  any  assignment  or
            sublease, for the entire Lease Term.

      13.4  RECAPTURE  OPTION.  Landlord at its option may elect,  no later than
            ten (10) days after. Tenant has provided all necessary

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            information,  to give  notice of  cancellation  of this  Lease  with
            respect to the space affected by a proposed  assignment or sublease.
            Tenant, by giving notice of withdrawal of its request for consent to
            a  proposed  assignment  or  sublease  within  ten (10)  days  after
            Landlord's  notice,  may cause Landlord's notice to be automatically
            rescinded.  If the notice of cancellation is not rescinded, it shall
            be  effective  thirty (30) days after it was given.  A  cancellation
            relating  to  the  entire  Premises  shall  relieve  Tenant  of  all
            obligation  under this. Lease except  obligations  accruing prior to
            the date  possession  is  surrendered  to Landlord  and  obligations
            related  to  the   condition   in  which  the  Premises  are  to  be
            surrendered.  Upon  a  cancellation  relating  to a  portion  of the
            Premises,  Tenant's rental  obligations shall be reduced,  as of the
            effective date of the cancellation,  in the proportion that the area
            of the Premises has been reduced.

      13.5  DIRECT LEASE.  Landlord also shall have the option, in the case of a
            proposed sublease, to sublease the affected space from Tenant on the
            same  terms and  conditions  as are being  offered  by the  proposed
            subtenant.  This option shall be exercised, if at all, no later than
            ten (10) days  after  Tenant  has  provided  all of the  information
            required by Section 13.2.

      13.6 SHARED  PROCEEDS.  If consent to an  assignment or sublease is given,
      Tenant shall pay to Landlord,  as Additional  Rent,  one half (1/2) of all
      amounts  received  from the assignee or subtenant in excess of the amounts
      otherwise  payable  by  Tenant  to  Landlord  with  respect  to the  space
      involved, measured on a per square foot basis.

      13.7  LIMITATIONS.  It shall not be unreasonable  for Landlord to withhold
      consent  if the  proposed  assignee  or  subtenant  is a tenant in another
      building  in the  Tucson  Metropolitan  Area  owned by  Landlord  or by an
      affiliate  of Landlord  or of any of  Landlord's  constituent  partners or
      principals  or if the use by the  proposed  assignee  or  subtenant  would
      contravene this Lease or any restrictive use covenant or exclusive  rights
      granted by Landlord or if the  proposed  assignee  or  subtenant  does not
      intend to occupy the Premises for its own use.

      13.8 NO  WAIVER.  No  consent  shall  constitute  consent  to any  further
      assignment or subletting.

      13.9 TRANSFER BY LANDLORD.  Upon a sale or other  transfer of the Building
by  Landlord,   Landlord's   interest  in  this  Lease  shall  automatically  be
transferred to the transferee,  the transferee shall automatically assume all of
Landlord's  obligations  under this Lease, and Landlord shall be released of all
obligations  under this Lease  arising  after the  transfer.  Tenant  shall upon
request attorn in writing to the transferee.

      13.10  ATTORNEY'S  FEES. In the event that Landlord shall agree to consent
to any matter set forth  under  Section  13.1,  Tenant  shall pay a One  Hundred
Dollar  ($100)  assignment  fee  to  Landlord  and  shall  also  pay  Landlord's
reasonable  attorney's fees incurred in connection with giving such consent as a
condition to receiving the consent.

ARTICLE 14: DEFAULTS; REMEDIES

      14.1 DEFAULTS.  The occurrence of any one or more of the following  events
shall constitute a material default and breach of this Lease by Tenant:

      (a)   The vacating or abandonment of the Premises by Tenant.

      (b)   The  failure  by  Tenant  to make any  payment  of Rent or any other
            payment  required to be made by Tenant  hereunder,  as and when due.
            Landlord  shall not be required  to give  Tenant  notice of Tenant's
            failure to make such payments, as and when due.

      (c)   The submission by Tenant to Landlord of Tenant  Related  Information
            (Article.  19,  "Landlord  Reliance on Tenant Related  Information")
            which was false or incomplete in any material respect as of the date
            of the Lease:

      (d)   The  failure by Tenant to observe or perform  any of the  covenants,
            conditions  or  provisions of this Lease to be observed or performed
            by Tenant,  other than the defaults  described in Sections  14.1(a),
            14:1(b) or 14.1 (c),  where such failure shall continue for a period
            of thirty (30) days after  written  notice  hereof from  Landlord to
            Tenant; provided, however, that if the nature of Tenant's default is
            such  that it can be  cured  and  more  than  thirty  (30)  days are
            reasonably required for its cure, then Tenant shall not be deemed to
            be in default if Tenant  commences such cure within said thirty (30)
            day  period  and  thereafter  diligently  prosecutes  such  cure  to
            completion.

      (e)   The  making  by  Tenant  of  any  general   assignment   or  general
            arrangement  for the benefit of creditors;  the filing by or against
            Tenant  of a  petition  to have  Tenant  adjudged  a  bankrupt  or a
            petition for reorganization or arrangement under any law relating to
            bankruptcy (unless, in the case of a petition filed against Tenant,,
            the same is dismissed  within sixty (60) days); the appointment of a
            trustee or  receiver  to take  possession  of  substantially  ail of
            Tenant's  assets located at the Premises or of Tenant's  interest in
            this Lease, where possession is not restored to Tenant within'thirty
            (30). days; or the attachment,,  execution or other judicial seizure
            of substantially  all of Tenant's assets located at the Premises or.
            of  Tenant's:  interest  in this  Lease,  where such  seizure is not
            discharged within thirty (30) days.

      14.2 REMEDIES.  In the event of any material  default or breach by Tenant,
Landlord  may at any time  thereafter,  with or  without  notice

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or demand and without  limiting  Landlord in the exercise of any right or remedy
which Landlord may, have by reason of such default or breach:

      (a)   Terminate Tenant's right to possession of the Premises by any lawful
            means,  in which case this- Lease shall  terminate  and Tenant shall
            immediately  surrender  possession  of the Premises to Landlord.  In
            such event  Landlord  shall be entitled  to recover  from Tenant all
            damages   incurred  by  Landlord  by  reason  of  Tenant's   default
            including,  but not limited to, the cost of recovering possession of
            the Premises;  expense of reletting including  necessary  renovation
            and alteration of the Premises,  reasonable attorney's fees, and any
            real estate commission actually paid; the worth at the time of award
            by the court having jurisdiction  thereof of the amount by which the
            unpaid Rent for the balance of the term after the time of such award
            exceeds  the amount of such  rental  loss for the same  period  that
            Tenant  proves  could be  reasonably  avoided;  that  portion of any
            leasing  commission  actually  paid by  Landlord  applicable  to the
            unexpired term of this Lease.  Unpaid  installments of Rent or other
            sums shall bear  interest  from the date due at the rate of eighteen
            percent  (18%) per annum.  In the event Tenant shall have  abandoned
            the  Premises,  Landlord  shall have the  option  of:  (i)  retaking
            possession  of the  Premises and  recovering  from Tenant the amount
            specified in this Section 14.2(a),  or (ii) proceeding under Section
            14.2(b).

      (b)   Maintain Tenant's right to possession in which case this Lease shall
            continue in effect  whether or not Tenant shall have  abandoned  the
            Premises.  In such event,  Landlord shall be entitled to enforce all
            of Landlord's  rights and remedies  under this Lease,  including the
            right to recover the Rent as it becomes due hereunder.

      (c)   Pursue any other remedy now or hereafter available to Landlord under
            the laws or judicial decisions of the state in which the Premises is
            located.

      14.3 DEFAULT BY LANDLORD.  Notwithstanding anything which may be contained
anywhere in this lease to the contrary,  Landlord shall not be in default unless
Landlord fails to perform  obligations  required of Landlord within a reasonable
time,  but in no event less than thirty (30) days after written notice by Tenant
to Landlord  and to the holder of any first  mortgage or deed of trust  covering
the Premises,  and if the nature of Landlord's obligation is such that more than
thirty (30) days are required for  performance,  then  Landlord  shall not be in
default if Landlord commences performance within such thirty (30) day period and
thereafter  diligently  prosecutes the same to completion.  Tenant's  remedy for
default by the Landlord  shall be limited to money damages and shall not include
the right to terminate this Lease.

ARTICLE 15: PARKING

      15.  PARKING.  During  the  term of this  Lease,  Tenant  shall  have  the
non-exclusive  right to use the  parking  lot for  automobile  or truck  parking
purposes subject to the Rules and Regulations  established by Landlord from time
to time designating  areas for Tenant,  employee and invitee  parking;  provided
that the condemnation or other taking by any public  authority,  or sale in lieu
of  condemnation,  of any or all of such  common  and  parking  areas  shall not
constitute  a violation  of this  covenant.  From time to time,  as requested by
Landlord,  Tenant shall furnish Landlord with the name of each person working at
or from the Premises  together  with .the make,  model,  year and license  plate
number of each  vehicle  used by such  person  parked  at or about the  Project.
Landlord shall have the right to require  Tenant and each of Tenant's  employees
and agents to  maintain a Landlord  furnished  identification  tag in or on each
vehicle used or leased by Tenant or Tenant's  employees  and agents parked at or
about the Project.  Landlord reserves the right to change the entrances,  exits,
traffic  lanes and the  boundaries  and locations of such parking area or areas.
Landlord  may,  from time to time,  designate  areas in the  parking lot for the
exclusive use of certain  designated  Tenant's as covered parking or non-covered
parking.  Landlord may charge a fee pursuant to a separate rental  agreement for
the use of covered  parking.  Tenant  and  Tenant's  employees  shall park their
automobiles in those areas from time to time designated for employee parking, or
at  Landlord's  written  request  shall  park their  automobiles  outside of the
Project.  Tenant for itself,  its  employees,  and its invitees shall assume the
full  risk of loss or  injury  to all  vehicles  parked  by them on or about the
Premises.  Landlord shall have the right to have vehicles parked in violation of
this Section 15 towed at owner's expense. This Lease shall be subordinate to any
agreement existing as of the date of this Lease or subsequently  placed upon the
real property of which the demised Premises are a part, which agreement provides
for reciprocal  easements and restrictions  pertaining to the common and parking
areas, and in the event of conflict between the provisions of such agreement and
this Lease, the provisions of said agreement shall prevail;  provided,  however,
nothing therein shall cause the Tenant to pay a greater share of the common area
maintenance cost than herein provided.  Landlord shall have the right to require
Tenant and each of Tenant's employees and agents to sign a parking  registration
agreement acknowledging and agreeing to the terms of this Article 15.

ARTICLE 16: CONDEMNATION

      16.  CONDEMNATION.  If the Premises or any portion thereof are taken under
the power of eminent  domain or sold under the  threat of the  exercise  of said
power  (all of  which  are  herein  called  "Condemnation"),  this  Lease  shall
terminate as to the part so taken as of the date the condemning  authority takes
title or possession,  whichever first occurs. However,  theLease shall remain in
full force and effect as to the portion of the Premises  remaining,  except that
the Base Rent shall be reduced in proportion  that the floor area taken bears to
the total floor area of the building situated on the Premises. Any award for the
taking of all or any part of the Premises  under the power of eminent  domain or
any  payment  made  under  threat of the  exercise  of such  power  shall be the
property  of  Landlord,  whether  such award shall be made as  compensation  for
diminution  in value  of the  leasehold  or for the  taking  of the  fee,  or as
severance damages; provided, however, that Tenant shall be entitled to any award
for  loss of or  damage  to  Tenant's  trade  fixtures  and  removable  personal
property.  In the event  that  this  Lease is not  terminated  by reason of such
Condemnation,  Landlord  shall, to the extent of severance  damages  received by
Landlord in  connection  with such  Condemnation,  repair any damage to Premises
caused by such Condemnation except to the extent that Tenant has been reimbursed
therefor by the condemning  authority.  Tenant shall pay any amount in excess of
such  severance  damages  required to complete

<PAGE>

such  repair.  If more  than  twenty  percent  (20%)  of the  floor  area of the
improvements on the Premises, or more than thirty-five percent (35%) of the land
area of the real property of which the Premises are a part which is not occupied
by any improvements,  is taken by Condemnation,  Tenant may, at Tenant's option,
to be exercised in writing only within ten (10) days after  Landlord  shall have
given  Tenant  written  notice of such taking (or in the absence of such notice,
within ten (10) days after  condemning  authority  shall have taken  possession)
terminate  this  Lease  as of the  date  the  condemning  authority  takes  such
possession.

ARTICLE 17: RELOCATION

      17.  RELOCATION.  Landlord,  upon at least sixty (60) days prior notice to
Tenant, may require Tenant to relocate to other premises of substantially  equal
size in the Building which shall, upon delivery, be substituted for the Premises
under this Lease.  The amount of the Base Rent and  Tenant's  share of Operating
Costs, Utility Costs and Taxes shall be adjusted based upon the Rentable Area of
the  substitute  premises.  Landlord,  at  Landlord's  expense,  shall cause the
substitute  premises to be improved prior to delivery in a manner similar to the
original  Premises.  Upon request,  Tenant shall cooperate in the preparation or
approval of plans and specifications  for the improvements.  Landlord shall bear
all reasonable  out-of-pocket  costs incurred in connection  with the relocation
for  changes  in signs,  changes  in  stationery,  reinstallation  of  telephone
equipment,  moving of furniture  and  personal  property,  and similar  matters.
Should  Tenant  refuse  to permit  Landlord  to move  Tenant to such new  space,
Landlord, in such event, shall have the right to, terminate this Lease by giving
written  notice  to that  effect  to  Tenant in which  event  this  Lease  shall
terminate  effective ninety (90) days from the date of original  notification by
Landlord of Landlord's desire that Tenant be relocated. If Landlord moves Tenant
to such new  space,  this  Lease and each and all of its  terms,  covenants  and
conditions  shall  remain in full force and effect and be deemed  applicable  to
such  new  space,  and such new  space  shall  thereafter  be  deemed  to be the
"Premises".

ARTICLE 18: GENERAL PROVISIONS

      18.1 LANDLORD'S  LIABILITY.  The term "Landlord" as used herein shall mean
only the owner or owners at the time in  question of the fee title or a Tenant's
interest in a ground lease of the Premises  and, in the event of any transfer of
such title or interest, Landlord herein named (and in the case of any subsequent
transfers  the then  grantor)  shall be relieved from and after the date of such
transfer of all liability as respects  Landlord's  obligations  thereafter to be
performed; provided, that any funds in the hands of Landlord or the then grantor
at the time of such transfer in which Tenant has an interest, shall be delivered
to the  grantee.  The  obligations  contained  in this Lease to be  performed by
Landlord shall,  subject as aforesaid,  be binding on Landlord's  successors and
assigns only during their respective periods of ownership.

      In consideration of the benefits accruing  hereunder,  Tenant agrees that,
in the event of any actual or alleged  failure,  breach or default of this Lease
by Landlord,  if Landlord is a  partnership:  (a) The sole and exclusive  remedy
shall be against the partnership and its partnership  assets;  (b) No partner of
Landlord shall be used or named as party in any suit or action (except as may be
necessary to secure jurisdiction of the partnership);  (c) No service of process
shall be made  against any partner of Landlord  (except as may be  necessary  to
secure  jurisdiction  of the  partnership);  (d) No partner of Landlord shall be
required  to answer  or,  otherwise  plead to any  service  or  process;  (e) No
judgment may be taken  against any partner of Landlord;  (f) Any judgment  taken
against any partner of Landlord may be vacated and set aside at any time without
hearing;  (g) No writ of execution will ever be levied against the assets of any
partner of Landlord; and (h) These covenants and agreements are enforceable both
by Landlord and also by any partner of Landlord.  Tenant agrees that each of the
foregoing  provisions  shall be applicable  to any covenant or agreement  either
expressly contained in this Lease or imposed by statute or at common law.

            18.2 ESTOPPEL CERTIFICATE.

            (a)   Tenant  shall at any time  upon  not less  than  five (5) days
                  prior written notice from Landlord  execute,  acknowledge  and
                  deliver to Landlord a statement  in  writing:  (i)  certifying
                  that this  Lease is  unmodified  and in full  force and effect
                  (or, if modified,  stating the nature of such modification and
                  certifying that this Lease,  as so modified,  is in full force
                  and effect)  and the date to which the Rent and other  charges
                  are paid in advance, if any; and (ii) acknowledging that there
                  are not, to Tenant's  knowledge,  any uncured  defaults on the
                  part of Landlord hereunder, or specifying such defaults if any
                  claimed. Any such statement may be conclusively relied upon by
                  any prospective purchaser or encumbrancer of the Premises.

            (b)   Tenant's  failure to deliver such  statement  within such time
                  shall be  conclusive  upon  Tenant:  (i) that this Lease is in
                  full force and effect,  without  modification except as may be
                  represented  by  Landlord;  (ii)  that  there  are no  uncured
                  defaults in Landlord's  performance;  (iii) that not more than
                  one (1) month's  Rent has been paid in advance;  and (iv) that
                  Landlord    is    irrevocably    constituted    as    Tenant's
                  attorney-in-fact to issue such statement.

            (c)   If  Landlord  desires to sell or to finance or  refinance  the
                  Premises or any part thereof,  Tenant hereby agrees to deliver
                  to any buyer or lender  designated by Landlord such  financial
                  statements  of Tenant as may be  reasonably  required  by such
                  buyer or lender.  Such statements shall include the past three
                  (3) years financial  statements of Tenant.  All such financial
                  statements  shall be received by  Landlord in  confidence  and
                  shall be used only for the purposes herein set forth.

      18.3 SUBORDINATION. This Lease is subject and subordinate to all ground or
underlying  leases,  mortgages  and  deeds of trust  which now  affect  the real
property  of which  Premises  forms a part or affect  the  ground or  underlying
leases and to all  renewals,  modifications,  consolidations,  replacements  and
extensions  thereof.  It is further agreed that this Lease may, at the option of
Landlord, be made

<PAGE>

subordinate  to any ground or underlying  leases,  mortgages,  or deeds of trust
which may hereafter  affect the real property of which  Premises forms a part or
affect  the  ground  or   underlying   leases,   and  that  Tenant  or  Tenant's
successors-in-interest  will execute and deliver upon the demand of Landlord any
and all instruments desired by Landlord subordinating in the manner requested by
Landlord this Lease to such lease, mortgage or deed of trust. Landlord is hereby
irrevocably  appointed and authorized as agent and  attorney-infact of Tenant to
execute and deliver all such subordination instruments in the event Tenant fails
to execute  and deliver  said  instruments  within  five (5) days after  written
request therefor.

      18.4 NOTICE TO  MORTGAGEE.  Tenant  agrees to give any  Mortgagees  and/or
Trust Deed Holders,  by Certified - Return Receipt Requested Mail, a copy of any
Notice of Default  served upon the Landlord,  provided that prior to such notice
Tenant has been notified in writing (by way of Notice of Assignment of Rents and
Leases,  or  otherwise),of  the  address of such  Mortgagees  and/or  Trust Deed
Holders.  Tenant  further agrees that if Landlord shall have failed to cure such
default within the  timeprovided for in this Lease,  then the Mortgagees  and/or
Trust Deed Holders  shall have an  additional  thirty (30) days in which to cure
such  default or, if such default  cannot be cured  within that time,  then such
additional  time as may be  necessary,  if  within  such  thirty  (30)  days any
Mortgagee and/or Trust Deed Holder has commenced and is diligently  pursuing the
remedies   necesary  to  cure  such  default   (including  but  not  limited  to
commencement of foreclosure  proceedings,  if necessary to effect such cure), in
which event this Lease shall not be terminated  while such remedies are being so
diligently pursued.

      18.5  SEVERABILITY  AND CAPTIONS.  The invalidity of any provision of this
Lease as determined by a court of competent  jurisdiction shall in no way affect
the validity of any other provision hereof.  Section and paragraph  captions are
for reference purposes only and are not a part of the terms of this Lease.

      18.6 TIME OF ESSENCE. Time of performance of each and. every condition and
agreement made herein is of the essence.

      18.7 NOTICES. Any notice required or permitted to be given hereunder shall
be in writing and may be served  personally  or by  Certified  - Return  Receipt
Requested Mail,  addressed to Landlord and Tenant  respectively at the addresses
set forth on Exhibit A.

      18.8  TERMINATION,  NO  WAIVER,  NO ORAL  CHANGE.  In the event this Lease
terminates for any reason (including but not limited to termination by Landlord)
prior  to  its  natural  expiration  date,  such  termination  will  effect  the
termination  of any and all  agreements for the extension of this Lease (whether
expressed in an option,  exercised or not, or collateral document or otherwise);
any right herein contained on the part of Landlord to terminate this Lease shall
continue  during any extension  hereof;  any option on the part of Tenant herein
contained for an extension  hereof shall not be deemed to give Tenant any option
for a  further  extension  beyond  the  first  extended  term.  Interruption  or
curtailment  of any  services  shall not  constitute a  constructive  or partial
eviction  or  entitle  Tenant  to any  abatement  of  Rent  or any  compensation
(including  but not limited to  compensation  for  annoyance,  inconvenience  or
injury to  business).  No act or thing done by  Landlord  or  Landlord's  agents
during the term hereby  demised  shall be deemed an acceptance of a surrender of
Premises,  and no  agreement to accept such  surrender  shall be valid unless in
writing  signed by  Landlord.  No employee of Landlord or of  Landlord's  agents
shall  have  any  power  to  accept  the  keys of  said  Premises  prior  to the
termination of this Lease. The delivery of keys to an employee of Landlord or of
Landlord's  agents  shall  not  operate  as a  termination  of this  Lease  or a
surrender of Premises. The failure of Landlord to seek redress for violation of,
or to insist  upon the strict  performance  of, any term,  covenant,  condition,
provision  or  agreement  of this  Lease  or any of the  Rules  and  Regulations
attached to this Lease or hereafter  adopted against  Tenant.or any other tenant
in the Project  shall not be deemed a waiver of any such Rules and  Regulations.
No  provision  of this Lease shall be deemed,  to have been waived by  Landlord,
unless such  waiver be in writing  signed by  Landlord.  No payment by Tenant or
receipt.  by Landlord f, a lesser amount than the Monthly Rent herein stipulated
shall be deemed to be other than on account,of the earliest stipulated Rent, nor
shall any endorsement or statement on any check or any letter  accompanying  any
check or payment as Rent be deemed an accord and satisfaction;  and Landlord may
accept such check or payment  without  prejudice to Landlord's  right to recover
the balance of such Rent or pursue any other remedy in this Lease provided. This
Lease contains the entire  agreement  between the parties and recites the entire
consideration  given and accepted by the parties.  Any agreement  hereafter made
shall be  ineffective  to change,  modify,  waive or discharge it in whole or in
part unless such  agreement  is in writing and signed by the party  against whom
enforcement of the change, modification, waiver or discharge is sought.

      18.9  RECORDING.  Tenant  shall not record this Lease  without  Landlord's
prior written  consent and such  recordation  shall,  at the option of Landlord,
constitute a non-curable  default of Tenant hereunder.  Either party shall, upon
request of the other,  execute,  acknowledge  and  deliver to the other a "short
form"  memorandum of this Lease for recording  purposes which shall contain only
the names of Landlord and Tenant,  address of  Premises,  legal  description  of
Project, and term of lease, including options.

      18.10 CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or in equity.

      18.11 COVENANTS AND CONDITIONS.  Each provision of this Lease  performable
by Tenant shall be deemed both a covenant and a condition.

      18.12 BINDING  EFFECT;  CHOICE OF LAW.  Subject to any  provisions  hereof
restricting  assignment or subletting by Tenant and subject to the provisions of
Section 18.1, "Landlord's  Liability",  this Lease shall bind the parties, their
personal  representatives,  successors and assigns. This Lease shall be governed
by the laws of the state in which the Premises  are  located.  Venue shall be in
the county in which the Premises are located.

<PAGE>

      18.13  ATTORNEY'S  FEES.  If either  party brings an action to enforce the
terms  hereof.or  declare rights  hereunder,  the  prevailing  party in any such
action, on trial or appeal, shall be entitled to its reasonable  attorney's fees
to be paid by the losing party as fixed by the court.

      18.14  LANDLORD'S  ACCESS.  Landlord and Landlord's  agents shall have the
right to enter the Premises with reasonable notice (except in case of emergency,
where no notice is required) at  reasonable  times for the purpose of inspecting
the same, showing the same to prospective purchasers or lenders, and making such
alterations,  repairs,  improvements  or  additions  to the  Premises  or to the
building of which they are a part as Landlord may deem  necessary or  desirable.
Landlord may at any time place on or about the Premises any ordinary  "For Sale"
signs and Landlord may at any time during the last one hundred twenty (120) days
of the term  hereof  place on or about the  Premises  any  ordinary  "For Lease"
signs, all without rebate of Rent or liability to Tenant.

      18.15 SIGNS AND AUCTIONS.  Landlord makes no  representation  or warranty,
either  expressed  or  implied,   concerning  any  sign  ordinances,   rules  or
regulations   relating  to  the  Premises  or  Tenant's  signage.  .  Tenant  is
responsible to inform itself of all  governmental  laws,  ordinances,  rules and
regulations  applying to the Premises or Tenant's signage.  Tenant shall, at its
own cost and expense,  obtain all necessary  sign permits from all  governmental
bodies having jurisdiction over Tenant's signage.  Tenant shall not install any.
signs in or about the  Premises  without  first  obtaining  all  necessary  sign
permits.

      Tenant shall not place any sign,  loudspeakers,  banners or flags upon the
Premises  therein without  Landlord's  prior written  consent.  Exhibit D ("Sign
Criteria")  contains all of the requirements and  specifications  for, any signs
that are permitted in or about the Premises and the requirements for the removal
of all signs at the end of the Lease term.  Exhibit D refers only to  Landlord's
Sign Criteria, which may be more or less restrictive than the governmental laws,
ordinances, rules and regulations applying to the Premises or Tenant's signage.

      Tenant shall not conduct its business  outside of the Premises  (i.e.,  on
sidewalks  or  driveways.)  Tenant  shall  not  conduct  any  auctions  from the
Premises.

      18.16 MERGER.  The voluntary or other surrender of this LEASE BY Tenant or
a mutual  cancellation  thereof shall not work a merger and shall, at the option
of Landlord, terminate all or any existing subtenancies or may, at the option of
Landlord,  operate  as  an  assignment  to  Landlord  of  any  or  all  of  such
subtenancies.

      18.17  CORPORATE  AUTHORITY.  If Tenant is a corporation,  each individual
executing this Lease on behalf of said corporation  represents and warrants that
he is duly  authorized  to execute  and deliver  this  Lease.  on behalf of said
corporation,  in  accordance  with a duly  adopted  resolution  of the  Board of
Directors  of  said  corporation  or in  accordance  with  the  Bylaws  of  said
corporation,  and that this Lease is binding upon said corporation in accordance
with its terms.  If Tenant is a  corporation,  Tenant shall,  within thirty (30)
days after  execution of this Lease,  deliver to Landlord a certified  copy of a
resolution  of the  Board  of  Directors  of  said  corporation  authorizing  or
ratifying the execution of this Lease.

      18.18 RENTABLE AREA. The approximate  Rentable Area of the Premises is set
forth on Exhibit A and the approximate Rentable Area of the Project is set forth
on Exhibit A. All disputes  concerning  the Rentable Area of the Premises or the
Rentable  Area of the  Project  shall  be  conclusively  settled  by  Landlord's
architect  through the  application of the BOMA  "Standard  Method for Measuring
Floor Area in Office Buildings",  as REVISED AND adopted June 7, 1996 (ANSI/BOMA
265.1 - 1996).

      18.19 CONSENT.  Any consent by Landlord to any assignment or subletting or
other operation by a concessionaire or licensee shall not constitute a waiver of
the necessity for such consent under any subsequent  assignment or subletting or
operation by a concessionaire or licensee.

      18.20 LEGAL  PROCEEDINGS.  The  respective  parties  hereto shall and they
hereby do waive trial by jury in any action or  proceeding  brought by either of
the parties hereto against the other on any matter whatsoever  arising out of or
in any way connected with this Lease,  the  relationship of Landlord and Tenant,
Tenant's use or  occupancy of Premises or any claim of injury or damage,  or the
enforcement  of any remedy  under any statute  under any  statute,  emergency or
otherwise.  In the event Landlord  commences any  proceedings  for nonpayment of
Rent or other sums due hereunder, Tenant shall not, and Tenant hereby waives any
right to,  interpose any  counterclaim  of whatever nature or description in any
such proceedings.  Such waiver shall not,  however,  be construed as a waiver of
Tenant's  rights to assert such claims in any separate action or actions brought
by Tenant.

      18.21 INABILITY TO PERFORM. This Lease and the obligation of Tenant to pay
      Rent  hereunder  and to keep;  observe and perform all of the other terms,
      covenants conditions, provisions and agreements. of this Lease on the part
      of Tenant to be kept,  observed or performed  shall in no way be affected,
      impaired or excused  because  Landlord.  is unable to fulfill any of its'.
      obligations  under this Lease or to supply,  or is delayed or curtailed in
      supplying,  any service'  expressly or implied to be supplied or is unable
      to make, or is delayed or curtailed in making,  any repairs,  alterations,
      decorations,  additions  or  improvements,  or is unable to supply,  or is
      delayed or curtailed in supplying,  any equipment or fixtures, if Landlord
      is  prevented,  delayed or curtailed  from so doing by reason of any cause
      beyond Landlord's  reasonable control including,  but not limited to; acts
      of God, strike or, labor troubles, fuel or energy shortages,  governmental
      preemption or  curtailment in connection  with a national  emergency or in
      connection with any rule, order, guideline or regulation of any department
      or governmental agency or by reason of the conditions of supply and demand
      which  have been or are  affected  by a war or other  emergency.  Any such
      prevention,  delay or  curtailment  shall be deemed  excused and  Landlord
      shall not be subject to any liability resulting therefrom.

<PAGE>

      18.22 COUNTERPARTS. This Lease maybe executed in one or more counterparts,
each of which  shall be  deemed  an  original  but all of which  together  shall
constitute and be construed as one and the same instrument.

      18.23 COMMISSIONS. The parties warrant that they have not entered into any
agreement that would subject the other to payment of any real estate commissions
or  finder's  fees and do  hereby  agree to hold the other  harmless  (including
reasonable attorneys' fees) from claims for commissions or fees due or allegedly
due any maker by reason of such agreement.

      18.24 INCORPORATION OF PRIOR AGREEMENTS;  AMENDMENTS.  This Lease contains
all agreements of the parties with respect to any matter  mentioned  herein.  No
prior  agreement  or  understanding  pertaining  to and  such  matter  shall  be
effective.  This Lease may be modified in writing only, signed by the parties in
interest at the time of the modification.

ARTICLE 19: LANDLORD RELIANCE ON TENANT RELATED ,INFORMATION:

      19. LANDLORD RELIANCE ON TENANT RELATED INFORMATION. To induce Landlord to
lease  the  Premises  to  Tenant,  Tenant  has  furnished  to  Landlord  certain
information  concerning  Tenant,   including,   without  limitation,   financial
statements,   resumes,   and  other  business  materials  (the  "Tenant  Related
Information").  Tenant hereby:  certifies to Landlord that as of the date of the
Lease, all of the Tenant Related  Information is true,  accurate and complete in
all material  respects.  Tenant  acknowledges  that  without the Tenant  Related
Information,  Landlord would not have entered into this Lease with Tenant. If at
any time subsequent to the execution of this Lease,  Landlord discovers that any
of the Tenant Related Informationmas false or incomplete in any material respect
as of the date of the Lease,  then Landlord  shall have 60 days from the date of
such  discovery to notify Tenant in writing of such discovery and to declare the
Tenant to have committed a non-curable  default under the Lease.  In such event,
Landlord may pursue the Remedies provided for in Article 14: Defaults.

ARTICLE20: NON-DISCLOSURE

      20.  NON-DISCLOSURE.  Landlord has informed Tenant that Landlord would not
enter  into  this  Lease  with  Tenant  unless  Tenant  agrees  to the terms and
provisions  of  this  non-disclosure  section  of  the  Lease.  As.  a  material
inducement  to Landlord to enter into this Lease,  Tenant has agreed that Tenant
and its employees  (past,  present or future) will not disclose any of the terms
or conditions of this Lease,  including without limitation the Lease addenda and
Lease exhibits, or any of the negotiations leading up to the consummation of the
Lease. Any disclosures made in violation of this section of the Lease shall be a
ndn-curable  material  default under this Lease.  Within ninety (90) days of the
date that Landlord learns of such default,  Landlord may terminate this Lease by
written notice  delivered to Tenant;  and in such event,  Landlord shall have no
further  obligation  to Tenant of any kind  whatsoever.  The  provisions of this
section may not be waived or modified by Landlord  except by written  instrument
signed by Landlord and delivered to Tenant.

      THIS AREA INTENTIONALLY LEFT BLANK.

            Landlord  and Tenant  hereto have  executed  this Lease on the dates
            specified  immediately  adjacent to their  respective  signatures on
            Exhibit A.

<PAGE>

                            BUTTERFIELD CENTER LEASE

                                    EXHIBIT A

<TABLE>
<S>                                                     <C>
Premises Address:                                       Rentable Area (approximate) of Premises:       1.800 square feet
                                                                                                      ------
Street: 4565 S. Palo Verde                              Rentable Area (approximate) of Project:       78.252 square feet
                                                                                                      ------
Suite:  213
        Tucson, Arizona 85714                           Tenant's Proportionate Share of
                                                        Operating Costs, Utility Costs, Taxes:          2.30%
                                                                                                      ------

Trade Name: Dynamic Management Resolutions LLC

Use         office/warehouse for consulting
Base Term:
            Period 36 Months                            Adjustment Month August in each year.

            Commencement Date 7/9/01

            Ending Date      7/31/04

Base Rent:
            Monthly Base Rent             $    918.00   /Per Month
                                          -----------
            Monthly Expenses              $    432.00   /Per Month for Operating Costs, Utility Costs, Taxes (adjusted
                                          -----------   annually, based on actual)
            Rental Tax                    $        00   /Tax is current estimate only which may change;
                                          -----------   Tenant obligation to pay tax is specified in Lease
            TOTAL:                        $  1,350.00   /Per Month Estimated only which may change; .
                                          -----------   Tenant's obligation specified in Lease.
Total Base Rent                           $ 33.048.00   /for the Base Term - prior to adjustments
                                          -----------
Security Deposit                          $  1,350.00
                                          -----------

This Exhibit was prepared on  June 27, 2001             This date shall be referred to for all purposes as the date of the Lease

TENANT Date Signed      6/29/01                            LANDLORD Date Signed 7/03/01
                   ----------------------------------                           -------------------------

Dynamic Management Resolutions, LLC                           Butterfield Center Limited Partnership
-----------------------------------------------------      ----------------------------------------------

By: /S/ Wade Poteet                                           Butterfield Center Limited Partnership
    -------------------------------------------------      ----------------------------------------------
        Wade Poteet

Its: Vice President                                           By Its Agent: /S/ [Signature Illegible}
     ------------------------------------------------      ----------------------------------------------
                                                                                  President

Notice & Billing Address 4565 S. Palo Verde Suite 213      Notice Address Anthem Equity, Inc.
                         ----------------------------                     -------------------
                         Tucson. AZ 85714                  1600 N. Kolb RdSuite 118, Tucson, AZ 85715
-----------------------------------------------------      ----------------------------------------------
</TABLE>

Preparation of this Lease by Landlord or Landlord's  agent and submission of the
same to Tenant  shall not be deemed to be an offer to Lease.  This  Lease  shall
become binding upon Landlord and Tenant only when fully executed by Landlord and
Tenant.

LANDLORD AND TENANT HAVE  CAREFULLY  READ AND REVIEWED  THIS LEASE AND EACH TERM
AND  PROVISION  CONTAINED  HEREIN AND, BY  EXECUTION  OF THIS LEASE,  SHOW THEIR
INFORMED AND VOLUNTARY  CONSENT  THERETO.  THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANT WITH RESPECT TO THE
PREMISES.

<PAGE>

                            BUTTERFIELD CENTER LEASE

                                    GUARANTY

                                  (PAGE 1 OF 2)

      1. As a material  inducement to Landlord to enter into the Lease described
on the attached Exhibit A by and between BUTTERFIELD CENTER LIMITED PARTNERSHIP,
("Landlord") and DYNAMIC MANAGEMENT RESOLUTIONS LLC ("Tenant"),  the undersigned
hereby  jointly and  severally (if there be more than one)  unconditionally  and
absolutely  guarantee  payment  and  performance,  and  not  collection,  of all
obligations of Tenant to Landlord under the Lease.

      2.  The  undersigned  guarantor  or  guarantors  hereby  acknowledge  that
Landlord  entered  into the  Lease in  reliance  upon the  creditworthiness  and
character  'of  the  undersigned  guarantor  or  guarantors.   :The  undersigned
guarantor or guarantors also acknowledge that the Landlord has relied on any and
all  representations  presented to it, whether  written or oral,  reflecting the
creditworthiness  and/or  financial  condition of the  undersigned  guarantor or
guarantors,  and by signing  below,  the  undersigned  guarantor  or  guarantors
acknowledge that all representations to the Landlord are true and accurate.

      3.  Liability of the  undersigned  shall be direct and  immediate  and not
conditional or contingent upon the pursuit of any remedies against the Tenant or
any  other  person  or entity  and a  separate  action  may be  brought  against
guarantor(s)  whether  or not an action is brought  against  Tenant or Tenant is
joined in such  action.  Notice of  Default or any  extension  of time to cure a
default is hereby waived;  provided, that any applicable notice and time to cure
a default has been given to the Tenant as provided for in the Lease.

      4. The  undersigned  guarantor or guarantors  covenant and agree that this
guaranty shall remain in full force and effect from the date of execution  until
the lease  termination  date,  during  any and all  renewals,  modifications  or
extensions  of the lease or of any schedule to the Lease,  and during any period
when  Tenant  holds  over or  occupies,  or has a right to occupy,  the  demised
premises.

      5. The  undersigned  guarantor or guarantors  covenant,  agree and consent
that this guaranty shall remain in full force and effect after the occurrence of
any of the following

            A.    Any  change  or  modification  to  the  size  of  the  demised
                  premises.
            B.    Any change or  modification  to the Tenant's  permitted use of
                  the demised premises.
            C.    Any  change or  modification  to the rent  amount or method of
                  payment.
            D.    Any  change or  modification  of any other term  condition  or
                  covenant of the Lease to be  performed  by either  Landlord or
                  Tenant.

      For the purposes of this guaranty,  modifications or other  alterations of
terms and/or  conditions  of the Lease shall be treated to the same extent as if
they were in effect at the time of the  execution of this  guaranty,  whether or
not the undersigned  guarantor or guarantors have notice of such modification or
alteration (the undersigned  guarantor or guarantors hereby waiving such notice)
and whether or not the  undersigned  guarantor or  guarantors  consent or object
thereto.

      6. This  Guaranty may not be changed or  terminated  orally but only by an
agreement in writing signed by the party against whom enforcement of such change
or termination is sought.

THIS  GUARANTY  SHALL SERVE TO REPLACE AND NULLIFY ANY PREVIOUS  GUARANTY TO THE
LEASE.

Dated this 27 day of September, 2002.
           --

GUARANTOR:

CDEX, Inc.

By: /S/ Michael Mergenthaler Director, Business     BY:
    -------------------------------------------
    Michael Mergenthaler              Title                               Title

    1700 Rockull Pike Suite 400
    ROCKULL MD   20852
    ---------------------------                      ---------------------------
    Address                                          Address

<PAGE>

           301 881-0080
           ------------

<PAGE>

                            BUTTERFIELD CENTER LEASE
                                    GUARANTY

                                  (PAGE 2 OF 2)

Tenant: Dynamic Management Resolutions, LLC
        -----------------------------------
Premises 4565 S. Palo Verde Ste. 213, Tucson AZ
         --------------------------------------

STATE OF MARYLAND
OUNTY OF MONTGOMERY

On this 27 day of SEPT, 2002 before me personally appeared Michael Merbenthaler

and  ___________________________  who acknowledged that he/she/they executed the

foregoing  instrument as  his/her/their  own act and deed in the capacity stated

therein and for the purposes therein contained.

                                        /S/
                                   ---------------------------------
                                   Notary Public      Robin D. Smith

My Commission Expires: MY COMMISSION 'EXPIRES 5/22/2006

STATE OF ____________________________)
                                     )SS.
COUNTY OF ___________________________)

On  this  day  of  ______________,  20___  before  me  personally  appeared  who
acknowledged that he/she/they executed the foregoing instrument as his/her/their
own act and deed in the capacity  stated  therein and for the  purposes  therein
contained,

                                  Notary Public

My Commission Expires:

<PAGE>

                            BUTTERFIELD CENTER LEASE
                                    GUARANTY

                                  (PAGE 1 OF 2)

      1. As a material  inducement to Landlord to enter into the Lease described
on the attached Exhibit A by and between BUTTERFIELD CENTER LIMITED PARTNERSHIP,
("Landlord") and DYNAMIC MANAGEMENT RESOLUTIONS LLC_ ("Tenant"), the undersigned
hereby  jointly and  severally (if there be more than one)  unconditionally  and
absolutely  guarantee  payment  and  performance,  and  not  collection,  of all
obligations of Tenant to Landlord under the Lease.

      2.  The  undersigned  guarantor  or  guarantors  hereby  acknowledge  that
Landlord  entered  into the  Lease in  reliance  upon the  creditworthiness  and
character of the undersigned guarantor or guarantors.  The undersigned guarantor
or  guarantors  also  acknowledge  that the  Landlord  has relied on any and all
representations  presented  to it,  whether  written  or  oral,  reflecting  the
creditworthiness  and/or  financial  condition of the  undersigned  guarantor or
guarantors,  and by signing  below,  the  undersigned  guarantor  or  guarantors
acknowledge that all representations to the Landlord are true and accurate.

      3. Each of the  undersigned  guarantors who is not joined in this guaranty
by a spouse represents and warrants that he or she is not a married person.

      4.  Liability of the  undersigned  shall be direct and  immediate  and not
conditional or contingent upon the pursuit of any remedies against the Tenant or
any  other  person  or entity  and a  separate  action  may be  brought  against
guarantor(s)  whether  or not an action is brought  against  Tenant or Tenant is
joined in such  action.  Notice of  Default or any  extension  of time to cure a
default is hereby waived;  provided, that any applicable notice and time to cure
a default has been given to the Tenant as provided for in the Lease.

      5. The  undersigned  guarantor or guarantors  covenant and agree that this
guaranty shall remain in full force and effect from the date of execution  until
the  lease  termination  date set  forth  below,  during  any and all  renewals,
modifications  or extensions  of the lease or of any schedule to the Lease,  and
during any period when Tenant holds over or occupies,  or has a right to occupy,
the demised premises.

      6. The  undersigned  guarantor or guarantors  covenant,  agree and consent
that this guaranty shall remain in full force and effect after the occurrence of
any of the following

            A.    Any  change  or  modification  to  the  size  of  the  demised
                  premises.
            B.    Any change or  modification  to the Tenant's  permitted use of
                  the demised premises.
            C.    Any  change or  modification  to the rent  amount or method of
                  payment.
            D.    Any  change or  modification  of any other term  condition  or
                  covenant of the Lease to be  performed  by either  Landlord or
                  Tenant.

      For the purposes of this guaranty,  modifications or other  alterations of
terms and/or  conditions  of the Lease shall be treated to the same extent as if
they were in effect at the time of the  execution of this  guaranty,  whether or
not the undersigned  guarantor or guarantors have notice of such modification or
alteration (the undersigned  guarantor or guarantors hereby waiving such notice)
and whether or not the  undersigned  guarantor or  guarantors  consent or object
thereto.

      7. This  Guaranty may not be changed or  terminated  orally but only by an
agreement in writing signed by the party against whom enforcement of such change
or termination is sought.

Dated this 29th day of June , 2001.

        /S/ Wade Poteet
-----------------------------------------
GUARANTOR SIGNATURE                                  GUARANTOR SIGNATURE

    WADE POTEET
-----------------------------------------
NAME (PLEASE Print)                                  Name (Please Print) .

  11200 E. Calle Aurora, Tuscon, AZ 85748
-----------------------------------------            ---------------------------
Home Address                                         Home Address

   (520) 885-7307
-----------------------------------------
Home Phone                                           Home Phone

GUARANTOR SIGNATURE                                  GUARANTOR SIGNATURE

NAME (PLEASE PRINT)                                  Name (Please Print)

<PAGE>

                            BUTTERFIELD CENTER LEASE
                                    GUARANTY

                                  (PAGE 2 OF 2)

Tenant: Dynamic Management Resolutions, LLC
        ----------------------------------------

Premises 4565 S. Palo Verde, Ste. 213, Tucson AZ
        ----------------------------------------

STATE OF ARIZONA _________________________)
                                          )SS.
COUNTY OF PIMA ___________________________)

On this 29th day of JUNE , 2001 before me  personally  appeared  Wade Poteet and
who  acknowledged  that  he/she/they   executed  the  foregoing   instrument  as
his/her/their

own act and deed in the capacity  stated  therein and for the  purposes  therein
contained.

                                                            /S/
                                                      --------------------
                                                      Notary Public

My Commission Expires: 4-21-03                        Notary Public Stamp

STATE OF

COUNTY OF

On  this  day  of  ______________,  20___  before  me  personally  appeared  who
acknowledged that he/she/they executed the foregoing instrument as his/her/their
own act and deed in the capacity  stated  therein and for the  purposes  therein
contained,

<PAGE>

                Butterfield Center Lease
                Exhibit B

                         Table of Contents of Exhibit B

Exhibit B  contains  several  sections  each of which is  indexed  below.  It is
intended that each section of Exhibit B remains a separate and distinct unit and
the failure of any.  section of Exhibit B shall not cause a failure of any other
section of Exhibit B. The following  constitutes an index of all of the sections
which make up Exhibit B.

      B-1   THE PROJECT this section defines the Project and the location of the
            Premises.

            B-1(a) - Legal Description of Land Comprising the Project
            B-1(b) - Project Site Plan

      B 2   Stricken Text

                            Stricken Text

      B-3   This  exhibit  consists of the  following  sub-parts  and contains a
            Space Plan for the Premises and the  Improvement  Standards  for the
            Premises.

      B-3(a) Improvement Standards
      B-3(b) Space Plan

<PAGE>

BUTTERFIELD CENTER LEASE
EXHIBIT B-1 PAGE 2

           B-1(A) -- LEGAL DESCRIPTION OF LAND COMPRISING THE PROJECT

PARCEL 1:

All of Lots 9 and 10 in BUTTERFIELD  BUSINESS  CENTER,  Lots 1 through 22, Block
"A" through  "M" and Common  Areas "A" and "B", a  subdivision  on record in the
office of the Pima County, Arizona Recorder in Book 37 of Maps and Plats at Page
76 thereof, except that portion being more particularly described as follows, to
wit:

BEGINNING at the Northern most corner of said Lot 10, said corner being the TRUE
POINT OF  BEGINNING,  said point also being on a 250.00 foot  radius  curve from
which the radius bears South 14 degrees 29 minutes 16 seconds West;

THENCE Southeasterly around said 250.00 foot radius curve to the right through a
central angle of 28 degrees 36 minutes 11 seconds an arc distance of 124.80 feet
to a point of tangency;

THENCE South 46 degrees 54 minutes 33 seconds East, a distance of 151.89 feet;

THENCE South 43 degrees 05 minutes 27 seconds West, a distance of 72.11 feet;

THENCE South 89 degrees 28 minutes 18 seconds West, a distance of 119.41 feet;

THENCE North 45 degrees 31 minutes 42 seconds West, a distance of 12.02 feet;

THENCE South 89 degrees 28 minutes 18 seconds West, a distance of 40.00 feet;

THENCE North 0 degrees 31 minutes 42 seconds  West, a distance of 208.96 feet to
the TRUE POINT OF BEGINNING.

PARCEL 2:

All that portion of Lot 10 in BUTTERFIELD  BUSINESS  CENTER,  Lots 1 through 22,
Blocks "A" through "M" and Common Areas "A" and "B", a subdivision  on record in
the office of the Pima County,  Arizona Recorder in Book 37 of Maps and Plats at
Page 76 thereof, more particularly described as follows, to wit:

BEGINNING at the Northern most corner of said Lot 10, said corner being the TRUE
POINT OF  BEGINNING,  said point also being on a 250.00 foot  radius  curve from
which the radius bears South 14 degrees 29 minutes 16 seconds West;

THENCE Southeasterly around said 250.00 foot radius curve to the right through a
central  angle of 28 degrees 36  minutes I I seconds an arc  distance  of 124.80
feet to a point of tangency;

THENCE South 46 degrees 54 minutes 33 seconds East, a distance of 151.89 feet;

THENCE South 43 degrees 05 minutes 27 seconds West, a distance of 72.11 feet;

THENCE South 89 degrees 28 minutes 18 seconds West, a distance of 119.41 feet;

THENCE North 45 degrees 31 minutes 42 seconds West, a distance of 12.02 feet;

THENCE South 89 degrees 28 minutes 18 seconds West, a distance of 40.00 feet;

THENCE North 0 degrees 31 minutes 42 seconds  West, a distance of 208.96 feet to
the TRUE POINT OF BEGINNING.

<PAGE>

BUTTERFIELD
Exhibit B-1 Page 3

CENTER LEASE

B-1(b) -- Project Site Plan

BUTTERFIELD BUSINESS CENTER

4555 - 4605 S. Palo Verde

0

w c w

0

TUCSON, AR[ZONA

1

co

[FLOOR MAP]     ~, o

<PAGE>

Butterfield Center Lease
Exhibit B-3

Exhibit B- 3(a)               Improvement Standards

Subject  to city and county  building  codes,  the  following  items  constitute
Improvement  Standards  which  shall be  employed  by  Landlord or Tenant in the
completion or modification  of the Premises.  The Tenant and Landlord agree that
the  Improvement  Standards  indicate a level of quality,  and that  Landlord or
Tenant may  substitute  alternatives  which produce a finished  product which is
reasonably equal to or superior to the Improvement Standards.

1.    DEMISING WALLS.

      Demising  Walls are those walls which  completely  seal and  separate  the
      Premises  from  space  occupied  by other  tenants  or from  corridors  or
      hallways  which are Common Areas.  Demising  Walls shall be constructed to
      the underside of the structure above from either concrete masonry units or
      25 gauge aluminum metal studs faced on both sides with 1/2" drywall taped,
      textured  and ready to paint.  All  Non-Masonry  Demising  Walls  shall be
      filled with batt insulation.

2.    FLOOR.

      Floor  shall be 4"  thick  smooth  troweled  concrete.  Coverings  must be
      approved by Landlord.

3.    STORE FRONT.

      Store Front per Landlord's  design shall be bronze anodized  aluminum with
      I/4" clear glass  panels and one (1) single  acting front door with single
      cylinder dead bolt lock and closer.

4.    REAR EXTERIOR METAL DOOR.

      Rear  Exterior  Metal  Door shall be 1 3/4" x 3'-0" x 7'-0"  hollow  metal
      door;  flush set in a hollow  metal  frame with three (3)  hinges,  with a
      single cylinder dead bolt lock and handle set.

5.    SUSPENDED CEILING.

      Suspended  ceiling  shall be Armstrong or equal  exposed  white T-Bar grid
      with 2' x 4' white fissured non-directional lay-in mineral acoustic tile.

6.    AIR CONDITIONING.

      Air  conditioning/heating  system  will be  provided  by a heat  pump  and
      thermostat sized per design of the Landlord's engineer to serve open sales
      area.  (No  provisions  for  interspace   partition   distribution.)   R30
      insulation at the roof line or RI I insulation over the ceiling tiles will
      be included with a maximum ceiling height of 10'.

7     LIGHTING.

      Lighting  shall  be 2' x 4'  recessed  4  tube  `cool  white'  fluorescent
      fixtures at approximately  one (1) light per one hundred (100) square feet
      of floor area.  All lighting  shall be single  switched  from a convenient
      location near the entry door.

8.    ELECTRICAL/TELEPHONE.

      110 volt duplex  wall  receptacles  will be  provided  for each 20 feet of
      Demising Wall.

      Exterior  junction box for Tenant sign shall be provided by Landlord.  The
      junction box will be switched from the 100 amp electrical  subpanel in the
      Premises (Buildings 4555 and 4605 (westside only).

      One  recessed  telephone  ring and  conduit  stub  above  ceiling  will be
      provided in the location as directed by Tenant.

9.    INTERIOR PARTITIONS.

      Interior  Partitions  are those walls which are located  wholly within the
      Premises. Interior Partitions shall be constructed to the underside of the
      acoustic  tile ceiling if existing and 6" above the ceiling if not already
      existing.  The Interior Partitions shall be constructed from approximately
      10' x 8' x 0" 25 gauge  aluminum metal studs faced on both sides with 1/2"
      drywall taped, textured and ready to paint.

10.   INTERIOR DOORS, FRAMES AND HARDWARE.

      Interior  doors and frames are those which are located  wholly  within the
      Prenuses.  Interior  doors  shall be a 1 3/8" x 3'-0" x 6'-8" wood  hollow
      core, flush doors set in wood pre-hung frames with three (3) hinges, and a
      standard,  commercial  grade  passage  set.  All doors and frames shall be
      ready for paint.

11.   TOILET ROOM.

      One (1) floor mounted  handicap  water closet - tank type 1.6 gallon flush
      as  manufactured  by  Briggs,or  equal;  one (1) wall  mounted  cold water
      lavatory

<PAGE>

      with handicap  faucet;  one (1) ceiling exhaust fan; one (1) light bracket
      each with switch;  two (2) handicap grab bars per code; and one (1) each -
      tri fold paper towel dispenser,  21" x 30" mirror, and toilet paper holder
      shall be  provided.  Partition  and wood  hollow core door  complete  with
      privacy  hardware  and wall bumper will be  installed.  Walls and ceilings
      shall be latex-semi  gloss painted gypsum board or concrete masonry units.
      Floor shall be rolled sheet vinyl per all city and county codes.

<PAGE>

Butterfield Center-- Lease
Exhibit B-3 Page 2

Exhibit B- 3(b)

Space Plan

Tenant shall take the Premises "as is" except that  Landlord  shall  install new
carpet in 3 rooms, as well as replace sheet vinyl in restroom.

(DFLOOR PLAN

SCALE I/$'=I'-O~

[FLOOR MAP]

<PAGE>

Butterfield Center Lease

EXHIBIT C

                              RULES AND REGULATIONS

Tenant agrees to abide by all the requirements set forth herein.

1.    No  sign,  placard,  picture,  advertisement,  name  or  notice  shall  be
      inscribed,  displayed  or  printed  or  affixed  on or to any  part of the
      outside or inside of the Project  without the written  consent of Landlord
      first had and  obtained  and  Landlord  shall have the right to remove any
      such sign, placard, picture, advertisement,  name or notice with notice to
      and at the expense of Tenant.

2.    All  approved  signs or lettering on doors shall be affixed at the expense
      of Tenant by a person  approved of by Landlord in accordance  with Exhibit
      D, "Sign Criteria".

3.    Tenant  shall not place  anything or allow  anything to be placed near the
      glass of any window,  door,  partition or wall which may appear  unsightly
      from outside the Premises.

4.    The sidewalks, road, passage, loading zones, exits and entrances shall not
      be  obstructed  by  Tenant,  Tenant's  employees,  agents,  contractor  or
      invitees  and none of them  shall  loiter  or  congregate  outside  of the
      Premises.  The Landlord shall in all cases retain the right to control and
      prevent  access  to the  Project  by all  persons  whose  presence  in the
      judgment  of  Landlord  shall be  prejudicial  to the  safety,  character,
      reputation  and  interests of the Project and its tenants,  provided  that
      nothing  herein  contained  shall be  construed  to prevent such access to
      persons  with whom the Tenant  normally  deals in the  ordinary  course of
      Tenant's business unless such persons are engaged in illegal activities.

5.    Tenant shall not alter any lock or install any new or additional  locks or
      any bolts on any door of the Premises without approval of Landlord.

6.    The bathrooms,  wash bowls and other  apparatus  shall not be used for any
      purpose  other  than that for which they were  constructed  and no foreign
      substance of any kind whatsoever  shall be thrown therein;  the expense of
      any breakage, stoppage or damage resulting from the violation of this rule
      shall be borne by the Tenant who, or whose employees,  agents,  contractor
      or invitees, shall have caused it.

7.    Tenant shall not overload the floor of the Premises or mark,  drive nails,
      screw or drill into the partitions, woodwork or plaster unless approved by
      Landlord, or in any way deface the Premises or any part thereof.

8.    Tenant  shall  not  cause any  unnecessary  labor by  reason  of  Tenant's
      carelessness  or  indifference  in the  preservation  of  good  order  and
      cleanliness of the Project.

9.    Tenant  shall  not  use,  keep or  permit  to be used or kept  any foul or
      noxious gas or substance in the Premises, or permit or suffer the Premises
      to be  occupied  or used in a manner  offensive  or  objectionable  to the
      Landlord  or other  occupants  of the  Project  by reason of noise,  odors
      and/or vibrations which would interfere in any way with other occupants.

10.   Tenant shall not use or keep in the Premises or the Project any  kerosene,
      gasoline or  inflammable  or  combustible  fluid or  material,  or use any
      method of heating or air conditioning other than that supplied or approved
      by Landlord.

11.   Landlord will direct  electricians as to where and how telephone wires and
      cables  are to be  introduced.  No boring  or  cutting  for wires  will be
      allowed without the consent of Landlord. The location of telephones,  call
      boxes and other office equipment  affixed to the Premises shall be subject
      to the approval of Landlord.

12.   Each Tenant,  upon the  termination  of its tenancy,  shall deliver to the
      Landlord the keys of offices  which shall have been  furnished  the Tenant
      and, in the event of loss of any keys so furnished, shall pay the Landlord
      therefor.

13.   No Tenant shall lay linoleum, tile, carpet or other similar floor covering
      so that the same  shall be  affixed  to the floor of the  Premises  in any
      manner  except as approved by the  Landlord.  The expense of repairing any
      damage  resulting  from  violation  of this rule or  removal  of any floor
      covering  shall be borne by the Tenant by whom,  or by whose  contractors,
      employees, agents or invitees, the damage shall have been caused.

14.   Tenant  shall see that the doors of the  Premises  are closed and securely
      locked  before  leaving the  Premises and should  observe  strict care and
      caution that all water  faucets or water  apparatus  are entirely shut off
      before  Tenant or  Tenant's  employees  leave,  so as to prevent  waste or
      damage.

15.   Landlord  reserves  the right to  exclude or expel  from the  Project  any
      person  who, in the  judgment of  Landlord,  is  intoxicated  or under the
      influence  of liquor or  drugs,  or who shall in any  manner do any act in
      violation of any of the rules and regulations of the Project.

16.   The  requirements  of Tenant will be attended to only upon  application at
      the Office of Landlord as so  designated.  Employees of Landlord shall not
      perform any work or do anything  outside of their  regular  duties  unless
      under special  instructions from the Landlord,  and no employee will admit
      any  person  (Tenant  or  otherwise)  to  any  office   without   specific
      instructions from the Landlord.

17.   No vending  machine or machines  of any  description  shall be  installed,
      maintained  or operated  upon the Project  without the written  consent of
      Landlord.

18.   Tenant shall not disturb,  solicit or canvass any occupant of the Project,
      and shall cooperate to prevent same.

19.   Without the written consent of Landlord,  Tenant shall not use the name of
      the Project in connection with or in promoting or advertising the business
      of Tenant except as Tenant's address.

20.   The word  "Project" as used herein means the Project of which the Premises
      are a part.

21.   Tenant  shall  provide  chair pads for all desk  chairs of the swivel base
      type that are used on carpeted areas.

22.   The driveways and loading zones must be kept free of parked automobiles.

23.   The Landlord  reserves the right at any time to rescind any one or more of
      these rules and regulations,  or to make such other and further reasonable
      rules and regulations as in the Landlord's  judgment may from time to time
      be necessary for the safety, care and cleanliness of the Project,  and for
      the preservation of order therein.

24.   Neither Tenant nor Tenant's employees, agents guests or invitees may smoke
      tobacco or other such  products in or about the  Premises or the  Project,
      except in areas that may be  designated  by  Landlord  in writing for such
      purposes.

25.   Except for guide dogs,  neither  Tenant nor its  employees or agents shall
      bring dogs or cats in or about the Premises or the Project.

26.   Tenant shall not  discharge  any waste,  water or other  material into the
      common areas of the Project,  nor produce  noise in or about the Premises,
      such that it effects the quiet enjoyment of other Tenants in the Project.

27.   All forklifts must have rubber tires.

28.   Excessive  dumping  in refuse  containers,  including  waste  from  Tenant
      Improvements or furniture,  is not permitted,  and Tenant must provide its

<PAGE>

      own refuse  container for such items.  Should Tenant's  business  generate
      excessive  waste,  Landlord  may  require  Tenant to  contract  for refuse
      services individually.

<PAGE>

Butterfield Center Lease
Exhibit D

                                  Sign Criteria

                                   Lots 9 & 10

I.    INTRODUCTION

      The intent of this Sign Criteria is to establish  and maintain  guidelines
      consistent  with the signage  policies of the  Landlord  and Pima  County.
      Further,  the purpose is to assure a standard  conformity  for the design,
      size, and materials for signage for Tenant identification.

      Tenant  shall,   at  its  own  expense,   provide  and  maintain  its  own
      identification sign in accordance with specifications noted herein. Tenant
      is  encouraged  to work  with  the  sign  vendors  approved  by  Landlord:
      Alternatives Signs or Fluoresco Lighting-Sign Maintenance Corp.

II.   GENERAL REQUIREMENTS

      A.    Landlord's  written  approval of Design  Drawings  and Working  Shop
            Drawings is required prior to the  preparation  and  installation of
            Tenant signage.  All signage  submittals must state the name of sign
            company, and include letter style, sizes and color.

      B.    Sign  permits must be obtained by Tenant  prior to  installation  of
            signage  when  required  by  County  sign  codes.  This is  Tenant's
            responsibility  and not the  responsibility of Landlord.  Electrical
            signs must comply with local and building codes.

      C.    Signs  installed  without  written  approval of the  Landlord or the
            appropriate   permit   will  be  subject   to  removal   and  proper
            reinstallation at Tenant's expense.

      D.    Tenant shall repair any damage caused during installation or removal
            of signage.

      E.    No labels shall be permitted on the exposed surface of signs, except
            those required by local ordinance.

      F.    Flashing, moving or audible signs are not permitted.

      G.    No portable  signs or  so-called  "A" frame signs to be displayed on
            site.

      H.    No  secondary  exterior  signs  are to be placed  on  building  wall
            elevations,  and  no  roof  mounted  signs  of  any  kind  shall  be
            permitted.

      I.    No freestanding and/or pylon type exterior signs will be permitted.

      J.    Tenant shall  remove all signs at his own expense at the  expiration
            of Lease term.

      K.    The Landlord reserves the right in its absolute discretion to reject
            any sign that does not comply with the intent and spirit of the Sign
            Criteria.  It will be Tenant's  responsibility  to correct or remove
            any non-conforming sign at Tenant's expense.

III.  TENANT IDENTIFICATION SIGN (4555, 4565, 4575, 4585, 4595, 4605 BUILDINGS)

      Tenant shall be permitted  one (1) window  identification  sign that shall
      not exceed ten (10) square feet in total area.

      A..   TYPE:  All signage  will be computer  cut  adhesive  vinyl placed on
            Tenant's  window next to main  entrance  door.  No press type or hot
            stamped letters purchased from a hardware store will be allowed.  No
            hanging  plexiglas  in the  window  or on the wall  will be  allowed
            unless preapproved in writing by Landlord. No computer printed paper
            signs taped to the window or walls will be allowed.

      B.    STYLE: Letter style will be open to Tenant.

      C.    COLOR. No neon or fluorescent  colors unless  preapproved in writing
            by Landlord.

      D.    SIZE:  Tenant's  window signs will not exceed the  boundaries of the
            ten (10 ) square  foot  area  shown in  example  Detail  "D-1".  Any
            conditions not conforming to this example are subject to approval of
            Landlord or on-site Manager.

      E.    INSTALLATION  LOCATION/LANDLORD  APPROVAL:  Positioning  of signs is
            strictly subject to Landlord approval.

      F.    No sign of any sort shall be mounted on the building  face except as
            outlined in these requirements.

IV.   TENANT  IDENTIFICATION  SIGN (WEST FACING SUITES,  4555 AND 4605 BUILDINGS
      ONLY)

      A.    FORMAT:  Internally illuminated pan-channel sheet metal letters with
            white  plex  faces  and  3/4"  white  trim-cap.   Letter  depth  S",
            illumination   must  be  with  neon,  with  no  hot  spots  or  neon
            skeletoning showing when letters illuminate.

      B.    LOGOS: Shall be allowed, but shall not exceed 25% of sign area. Logo
            colors shall be allowed.  Landlord must approve all logo colors, and
            colors  can  be  denied  if  they  are  not  in  keeping   with  the
            architectural design of the project.

<PAGE>

      C.    LETTER STYLE: Shall be open to the Tenant's discretion. The Landlord
            does have the right to deny any letter  style that he feels does not
            comply with the architectural design of the project.

      D.    COLOR:  The letter  faces  shall be white.  The letter  returns  and
            raceway shall be painted to match the sign band color (Cabernet).

      E.    LETTER HEIGHT:  Shall not exceed 18". Only one line of copy allowed.
            Length of sign shall not exceed 75% of the leased building frontage.

      F.    INSTALLATION:  Raceways  are  required.  No double  back  connection
            allowed.  Maximum Height not to exceed Letter Height - 18".  Maximum
            Depth - 8". Minimum Depth -6".Exhibit 10.3

           ASSIGNED CONSULTANT SERVICES AGREEMENT FOR DR. WADE POTEET
                        RESTATED AS EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is entered into as of January 1, 2003 (the "EFFECTIVE
DATE"), by and between CDEX-Inc., a Nevada corporation (the "COMPANY"), and Dr.
Wade Poteet (the "EMPLOYEE").

Whereas a Consultant  Services  Agreement  dated July 24, 2001 (the  "CONSULTANT
SERVICES AGREEMENT"),  among several named Consultants (including the Employee),
the Company and  Dynamic  Management  Resolutions  LLC ("DMR")  currently  is in
effect and provides for Employee to provide  services to Company  under  certain
terms.

Whereas on January 1, 2002,  that Consultant  Services  Agreement was amended to
allow  assignment of the Consultant  Services  Agreement as related to any named
Consultant upon written approval of that Consultant and the Company.

Whereas,  Employee and Company desire to have Employee provide services noted in
the Consultant  Services Agreement directly to the Company as an employee of the
Company,

The undersigned covenant and agree as follows:

First,  the obligations,  rights and benefits of DMR in the Consultant  Services
Agreement  as related to Employee are hereby  assigned to the  Company.  (By the
undersigned  signature of the DMR  representative,  DMR reflects  agreement with
this assignment.)

Second,  the  Employee  and Company  agree that as of the  Effective  Date noted
above,  Employee will provide service to Company as an employee  pursuant to the
terms of the  Consultant  Services  Agreement,  whose terms have been amended as
noted below. Employee, Company and DMR agree that the terms stated below are the
amended Consultant  Services Agreement as related to Employee,  restated as this
Employment Agreement.

1. EMPLOYMENT  AGREEMENT.  Subject to the terms and conditions set forth in this
Agreement,  the Company agrees to employ the Employee,  and the Employee accepts
employment with the Company, in accordance with the terms and provisions of this
Agreement.

2. TERM. This agreement shall remain in effect until terminated  pursuant to the
termination provisions provided herein.

3. SERVICES OF THE EMPLOYEE. The Employee shall serve initially as the Principal
Scientist  of the Company  and, as the needs of the  Company  dictate,  in other
positions as directed by the Company. In these roles, the Employee,  among other
things,  will assist in developing  technologies  for the benefit of the Company
and will use his best creative expertise in

<PAGE>

identifying,  discovering or creating technologies that the Company may develop,
and applying technologies of the Company to develop useful products or services,
for the benefit of the  Company.  The  Employee  shall  faithfully  perform such
services  for the  business  and affairs of the Company  (the  "SERVICES").  The
Employee  shall devote his best efforts and attention to the  performance of the
Services and shall expend such time as may be required to perform the  Services.
The  Employee  shall not  perform  services  that are  similar  in nature to the
Services for any other person or entity.

4. PLACE OF PERFORMANCE. The Employee shall be based initially at such office of
the  Company  as the  Company  and the  Employee  shall  determine,  except  for
reasonable travel on Company business. If the Company requires that the Employee
relocate  his place of  performance  to a location  more than 100 miles from the
then-current  office,  the Company  shall pay or reimburse  the Employee for the
reasonable  moving and  relocation  expenses  incurred by the  Employee  and his
family to establish a personal residence at the new location.

5. SALARY.

     5.1. SALARY. For Employee's services to the Company,  the Company shall pay
to the Employee a salary based on an annual amount of $210,000  (the  "SALARY").
The Company  shall  review the Salary on an annual  basis.  The Salary  shall be
payable  in equal  monthly  installments,  or in  installments  as  required  by
applicable State law.  However,  to the extent that the financial posture of the
Company is such that  paying the full  monthly  installment  in cash to Employee
would not be in the  Company's  best  interest,  at the option of the  Company a
portion  of the  monthly  compensation  may be  deferred  until  the end of each
calendar year and paid in cash or paid in  restricted  stock or stock options of
the  Company  ("Deferred  Compensation").  For  Employee's  services,  it is the
Company's  intent to pay a minimum gross amount of $8,000 per month to Employee.
Any stock or stock options of the Company issued as Deferred  Compensation shall
be subject to all  applicable  federal  and state  laws,  rules and  regulations
related to restricted stock.

     5.2 BONUS. At the discretion of Company, the Employee shall be eligible for
an  annual  performance   bonus.   Bonuses  (including  stock  bonuses)  may  be
distributed  based  on  Company  performance  and  the  Employee's  role in that
performance.

     5.3.  BENEFITS.  The Employee shall be entitled to receive such benefits as
the Company  may make  available  to its  employees  from time to time.  Nothing
contained in this Agreement shall prevent the Company,  at any time or from time
to time, from effecting modifications in the benefits, including eliminating any
or all of such benefits.

     5.4  VACATION;  HOLIDAYS.  The  Employee  shall be  entitled  to all public
holidays as are observed by the Company and vacation days in accordance with the
applicable vacation policies of the Company. The Employee shall take holidays at
a reasonable time or times for the Company.

     5.5 EQUITY  PARTICIPATION.  Pursuant to the Consultant  Services Agreement,
700,000 shares of restricted  common stock of the Company (the "INITIAL  STOCK")
have been issued to

                                       2
<PAGE>

Employee,  to compensate,  among other things, for the circumstances  created by
the  start  up  nature  of  the  Company,  subject  to the  graduated  repayment
provisions  set forth below.  The Employee  agrees to comply  strictly  with all
legal requirements  regarding the stock, including those related to distribution
of the stock and restrictions associated with the stock.

     5.5.1.  REPAYMENT.  Notwithstanding  the remainder of this Section,  if the
Employee's services to the Company are terminated because of death or disability
(defined as the inability to substantially perform the Services by reason of any
medically  determined  physical  or  mental  impairment  that  is or  will  be a
permanent condition or one that will continue for at least three months), or are
terminated by Company without  "Cause" (as defined  below),  the Employee has no
obligation  to repay any of the  Initial  Stock.  The  Employee  shall  repay in
accordance  with the  following  repayment  schedule  part of the  shares of the
Initial  Stock  (or  other  equivalent  shares  of  the  Company  stock)  if the
Employee's  services  are  terminated  prior to July 24, 2004 by the Company for
"Cause" or by Employee  without "Good Reason" as those terms are defined in this
Section 5.5. In either event,  then within sixty (60) days thereafter,  Employee
shall repay to the Company a portion of that Initial  Stock in  accordance  with
the following schedule.

               (a) if  termination  occurs prior to July 24, 2003,  the Employee
shall repay thirty percent (30%) of the Initial Stock; and

               (b) if  termination  occurs after July 23, 2003 but prior to July
24, 2004, Employee shall repay fifteen percent (15%) of the Initial Stock.

     5.5.2  TERMINATION FOR CAUSE.  Termination by the Company for "CAUSE" shall
be limited to any of the following:

          (i) The conviction of the Employee of, or a plea of nolo contendere by
the Employee to, a felony;

          (ii)  The   intentional   fraud  by  the   Employee   on,  or  willful
misappropriation  by the Employee of, funds or property  belonging to or claimed
by the Company and exceeding $1000.00 in an aggregate amount;

          (iii)  Intentional  misconduct by the Employee in connection  with the
performance of duties, or the Employee's  failure to perform the Services in the
best interests of the Company (including, without limitation, material breach by
the Employee in  performance  of the Services but not minor  violations of rules
and policies of the Company);

          (iv) The  Employee's  chronic use of alcohol,  drugs or other  similar
substances affecting work performance;

          (v) The material breach by the Employee of a provision of Section 9 of
this Agreement; or

          (vi) The  material  breach by the  Employee of any  provision  of this
Agreement that substantially and adversely impacts the Company.

                                       3
<PAGE>

     5.5.3  TERMINATION  FOR GOOD REASON.  Termination by the Employee for "Good
Reason" shall be limited to any of the following:

          (i)  The  occurrence  of a  material  breach  by  the  Company  of any
provision  of this  Agreement  that  significantly  and  adversely  impacts  the
Employee;

          (ii)  Termination  by the  Company  of  the  current  President,  CEO,
Chairman  of  the  Board,   or  Senior  Vice  President  of   Operations,   that
significantly and adversely impacts Employee;

          (iii) The  approval of a plan by the Board of Directors of the Company
involving the  dissolution  of the Company that is not  rescinded  within thirty
(30) days after its approval; or

          (iv) The involuntary or voluntary filing for bankruptcy of the Company
that is not dismissed within ninety (90) days after the date of filing.

     5.5.4  REPURCHASE  RIGHTS.  In the event that the Employee's  employment is
terminated,  then the Company shall have the right,  but not the obligation,  to
repurchase  all or a part of the Initial  Stock then owned by the  Employee at a
price  equal to fair  market  value,  less  any  appropriate  discounts  for the
restrictive  nature of, and the minority  interest  represented  by, the Initial
Stock.  In the event that the parties can not mutually  agree on the fair market
value of the Initial  Stock,  the value shall be  determined by  arbitration  in
accordance with the provisions of Section 12, except that the arbitrators  shall
each be qualified  appraisers  having at least ten years  experience  in valuing
commercial  businesses,  similar  in  nature  to  that  of the  Company,  in the
metropolitan Washington D.C area, and the decision of the arbitrator(s) shall be
final and conclusive on both parties.

     5.5.5  COMPLIANCE.  The  Employee  acknowledges  that the  issuance  and/or
registration  of the Company's  stock must comply with all  applicable  laws and
regulations  relating  thereto.  Accordingly,  the Employee agrees that he shall
accept  shares  of the  Company's  stock  subject  to all  applicable  laws  and
regulations,  and shall  provide and  deliver to the  Company  all  information,
certifications,  and other  documentation  as may be requested by the Company as
part of the  Company's  compliance  with any  applicable  laws  and  regulations
relating to the issuance  and/or  registration  of any of the  Company's  stock,
including but not limited to the Initial Stock.

6.  EXPENSES.  The Company  shall  reimburse  the  Employee  for all  reasonable
business  expenses  incurred by the Employee that are authorized by the Company.
Reimbursement  shall be made in  accordance  with the  policies  of the  Company
related to reimbursable expenses.

7.  TERMINATION  OF  EMPLOYMENT.  The  Employee's  services for the Company will
continue  until  terminated in accordance  with the  provisions of this Section.
Employment  hereunder may be terminated (i) by either party upon two weeks prior
written notice (the "NOTICE OF

                                       4
<PAGE>

TERMINATION"),  or (ii) immediately upon the death of the Employee.  All Parties
acknowledge  that Employee is an employee at will.  The date given in the Notice
of Termination as the last day of the Employee's  employment shall be deemed the
"DATE OF TERMINATION". This Agreement shall terminate on the Date of Termination
except as otherwise provided in Section 13.4. The Company shall pay the Employee
the then  current  Salary of Employee  through the Date of  Termination  and all
other unpaid  amounts,  if any, to which the Employee is entitled as of the Date
of Termination, such as expenses (Section 6).

8. THIS SECTION IS INTENTIONALLY LEFT BLANK.

9. CDEX AGREEMENTS. As an express condition for the Company's agreement to enter
into  this  Agreement,  and as a  pre-condition  to the  effectiveness  of  this
Agreement,  the Employee  agrees to (i) keep the  confidential  and  proprietary
information  and the  intellectual  property of the Company  confidential;  (ii)
assign to the Company  all of the  ownership  rights in and to any  intellectual
property  that is  developed,  created,  or  discovered  during the term of this
Agreement by  Employee;  and (iii) agree not to compete with the Company and its
business or solicit the  Company's  customers or employees  during the period of
employment with the Company and for a period of three (3) years  thereafter.  To
further provide for the  implementation  of this  provision,  the Employee shall
execute  a  CDEX  Non-disclosure  and  Confidentiality   Agreement  and  a  CDEX
Non-Compete and  Non-Solicitation  Agreement  (jointly,  the "CDEX AGREEMENTS"),
copies of which are attached  hereto as Exhibit A, the terms and  conditions  of
which  are  specifically  incorporated  herein  by  reference.  A breach  by the
Employee of a provision in any of the CDEX Agreements shall be deemed a material
breach of this Agreement by the Employee.

10. OWNERSHIP OF INTELLECTUAL PROPERTY.

     10.1. THE BUSINESS.  The parties acknowledge that the Company is engaged in
the  development,  marketing  and  sale  of  certain  proprietary  technologies,
processes  and related  products in the areas of chemical  detection,  technical
processes,  and technical/business  services, and that the Company may also from
time to time become or may intend to become engaged in other business  endeavors
(individually and collectively,  the "BUSINESS"). The Company shall be deemed to
intend to become  engaged in a business  endeavor  if it has devoted or expended
any significant  resources,  either  financial or human  resources,  towards the
proposed  endeavor,  either in planning or implementing  the undertaking of such
planned endeavor.

     10.2. THE INTELLECTUAL  PROPERTY. In connection with this Agreement and the
performance of the Services,  the Employee acknowledges that there may exist now
or may exist in the future trade secrets,  confidential  information,  technical
information,   know-how,  inventions,   patents,  discoveries  (whether  or  not
patentable),  copyrights,  trademarks, service marks, techniques, data, systems,
methods, processes, improvements, developments, enhancements, and modifications,
whether oral or written, or in recorded form, tangible or intangible,  and other
proprietary  rights,  which  are or may be  conceived,  developed,  designed  or
otherwise created, modified or improved by the Employee, in whole or in part, or
which the Employee may receive,  produce, obtain, or learn about, in whole or in
part, in connection  with the performance of the Services or relating in any way
or manner to, or arising out of, the

                                       5
<PAGE>

Business and the operations of the Company during the term of this Agreement, or
which the  Employee  may develop or make from or by reason of  knowledge  gained
from employment (collectively, the "INTELLECTUAL PROPERTY"). The Employee agrees
that all rights,  title and interest in and to the  Intellectual  Property shall
belong to the  Company  and shall be  considered  as "work made for  hire".  The
Employee  shall make  prompt and  complete  disclosure  from time to time to the
Company of all Intellectual Property developed by the Employee, either solely or
in conjunction with others.

     10.3.  ASSIGNMENT OF RIGHTS TO INTELLECTUAL  PROPERTY.  The Employee hereby
assigns to the Company any and all right,  title and interest  that the Employee
has now or may  have in the  future  in and to the  Intellectual  Property.  The
Employee  agrees to execute  any  instruments  and to do all  things  reasonably
requested by the Company,  both during and after the term of this Agreement,  to
vest the Company with all ownership rights in the Intellectual  Property. If any
Intellectual Property can be protected by copyrights,  patents,  trademarks,  or
service marks, then such copyright,  patent,  trademark, or service mark, as may
be applicable, shall be owned solely, completely and exclusively by the Company,
and the Employee shall execute such  assignments and other documents and provide
such  assistance as the Company may  reasonably  request in order to protect the
Company's ownership of the Intellectual  Property.  The Employee hereby appoints
the Company as his attorney-in-fact to execute any document that the U.S. Patent
and  Trademark  Office,   the  U.S.  Copyright  Office,  or  any  other  similar
governmental or quasi-governmental  entity in any state or foreign country shall
require in order to establish,  protect,  and record the Company's  ownership of
all of the rights, title and interests in and to the Intellectual Property. This
appointment  of the  Company as the  attorney-in-fact  for the  Employee  to act
hereunder is irrevocable.

     10.4.  SURVIVORSHIP.  The terms of Section 10 shall survive the termination
of this Agreement and shall continue until the later of (i) five (5) years after
the Date of Termination, or (ii) fifty (50) years after the Effective Date.

11. DEFAULT. The Employee acknowledges that many of the provisions herein are of
a special and unusual  character  that have and will have a unique  value to the
Company,  the loss of which cannot  adequately be  compensated  in damages in an
action at law. Any violation or attempted violation of any provisions of Section
9, Section 10 or any  provisions  of any of the CDEX  Agreements by the Employee
shall be deemed to be a material breach of this  Agreement.  The Employee hereby
agrees to  indemnify,  defend and hold  harmless  the  Company  from any and all
claims,  losses,  actions,   injuries,   damages,  fines,  penalties,  or  other
liabilities,  including  but not limited to loss of profits  and other  economic
losses, attorneys' fees and court costs, resulting from or related to a material
breach of this Agreement by the Employee.

     11.1.  EQUITABLE RELIEF. The parties  acknowledge that any damages incurred
by the Company as a result of any breach of Section 9,  Section 10 or the breach
of any other material  provision of this Agreement will be great and irreparable
and  difficult  to  quantify.  Without  prejudice  to the  rights  and  remedies
otherwise  available,  and without the need for posting any bond or surety,  the
Company  shall be entitled to equitable  relief,  such as for an  injunction  or
specific performance, if the Employee should breach or threaten to breach any of
the provisions

                                       6
<PAGE>

of this Agreement.

         11.2.  REMEDIES  AVAILABLE.  Subject to the requirement for arbitration
under Section 12, nothing  herein shall be construed as prohibiting  the Company
from  pursuing  any  remedies,  both  federal  and  state,  legal or  equitable,
available to the Company for any breach or threatened breach by the Employee.

         11.3.  RECOVERY OF COSTS. In the event that any  enforcement  action is
taken by  either  party  hereunder,  including  filing  an action in court or in
arbitration,  the prevailing  party shall be entitled to recover from the losing
party its costs and expenses, including its reasonable attorneys' fees and court
costs.

12. ARBITRATION.  Any failure to perform, controversy or claim arising out of or
relating to this Agreement or the breach, termination or validity thereof, other
than an  action  for  equitable  relief,  shall  be  determined  exclusively  by
arbitration  in  accordance  with  the  provisions  of  this  Section  12 and in
accordance  with  the  rules  of  the  American   Arbitration   Association  for
arbitrating  commercial  matters.  The arbitration  shall be held in Washington,
D.C., the surrounding  metropolitan area of Maryland,  or such other location as
the parties shall  mutually  agree.  The  arbitrators  shall base their award on
applicable Maryland law and judicial precedent,  and shall accompany their award
with  written  findings  of fact and  conclusions  of law.  The  decision of the
arbitrators shall be binding on the parties, except that either party may appeal
the arbitrators'  decision by filing an action to reconsider the decision of the
arbitrators  in a court having  jurisdiction  hereunder.  In any such action the
arbitrators'  findings of fact shall be  conclusive  and binding on both parties
and the sole questions to be determined by the court shall be (i) whether or not
the arbitrators'  decision was contrary to Maryland law and judicial  precedent,
and (ii) if the court determines that the arbitrators'  decision was contrary to
Maryland  law and  judicial  precedent,  then how the dispute  shall be resolved
based on the  arbitrators'  findings  of facts  and  Maryland  law and  judicial
precedent.  The decision of the court as to the  resolution of the dispute under
Maryland law and judicial  precedent shall supercede the arbitrators'  decision.
Judgment upon the award rendered by the  arbitrators,  as modified by the court,
if  applicable,  may be entered in any court having  jurisdiction  in accordance
herewith.

     12.1 SELECTION OF ARBITRATORS.  An arbitrator  shall be selected by each of
the parties,  and the arbitrators  shall mutually  select another  arbitrator to
serve  with  them  so  that  there  shall  be  an  odd  number  of  arbitrators.
Alternatively,  the  parties  may  agree to  accept a  single  arbitrator  to be
mutually  agreed  upon by the  parties.  Each  person  serving as an  arbitrator
hereunder  shall be a  professional  with  excellent  academic and  professional
credentials  who has had  experience  as an  arbitrator  and at least  ten years
experience  in the field of  resolving  commercial  disputes  in the  Washington
Metropolitan area.

     12.2  DISCOVERY.  Each party shall,  upon the written  request of the other
party,  provide the other with copies of documents relevant to the issues raised
thereby.  Other  discovery may be ordered by the  arbitrators  to the extent the
arbitrators deem additional  discovery  appropriate,  and any dispute  regarding
discovery,  including disputes as to the need therefor or the relevance or scope
thereof,  shall be determined by the arbitrators,  which  determination shall be
conclusive.

                                       7
<PAGE>

     12.3  ARBITRATION  EXPENSES.  All expenses and fees of the  arbitrator  and
expenses for hearing facilities, stenographers,  including reasonable attorneys'
fees and the costs of expert  witnesses,  and other expenses of the  arbitrators
shall  be  borne  by the  non-prevailing  party;  provided,  however,  that  the
arbitrators  may  allocate a portion of such  expenses to the other party if the
arbitrators  believe  such a measure is  justified by the conduct of the parties
during the arbitration.

     12.4 CONFIDENTIALITY OF PROCEEDINGS.  The arbitration proceedings conducted
pursuant  hereto  shall  be  confidential.  Neither  party  shall  disclose  any
information  about  the  evidence  adduced  by  the  other  in  the  arbitration
proceeding  or about  documents  provided  by the other in  connection  with the
proceeding  except  in the  course  of a  judicial,  regulatory  or  arbitration
proceeding or as may be requested by a governmental authority. Before making any
disclosure permitted by the preceding sentence, the party intending to make such
disclosure shall give the other party reasonable  written notice of the intended
disclosure and afford the other party opportunity to protect its interests.  The
arbitrators,  expert witnesses and stenographic reporters shall sign appropriate
nondisclosure agreements in order to effectuate this agreement of the parties as
to confidentiality.

     12.5 EQUITABLE RELIEF. Notwithstanding anything herein to the contrary, any
action brought by the Company for injunctive  relief or specific  performance is
not subject to the requirements for arbitration hereunder,  and may be sought in
any court  having  jurisdiction  in  accordance  herewith  without  resorting to
arbitration.

13   MISCELLANEOUS.

     13.1  NOTICES.  All  notices,  demands,  requests  or other  communications
required  or  permitted  to be given or made  hereunder  shall be in writing and
shall be  hand-delivered  or shall be mailed  such as to  provide  assurance  of
delivery.

     13.2  REPRESENTATIONS.  The  Employee  agrees to execute any proper oath or
verify any proper  document  required to carry out the terms of this  Agreement.
The Employee represents that this Agreement has been duly executed and delivered
by the  Employee  and  constitutes  the valid  and  binding  obligations  of the
Employee; that the execution,  delivery and performance of this Agreement by the
Employee  will not violate any  provision  of any  contract or other  agreement,
including but not limited to a non-compete or non-disclosure agreement, to which
the Employee is a party or which purports to be binding upon the Employee;  that
the Employee has carefully  read and reviewed the  provisions  set forth herein,
and having done so he agrees that those provisions, including but not limited to
the  provisions  relating to the  ownership of the  Intellectual  Property,  the
non-disclosure  of  confidential   information,   and  the  non-competition  and
non-solicitation  requirements,  are  fair  and  reasonable  and are  reasonably
required for the protection of the legitimate business interests of the Company;
and that the  Employee  has had the  opportunity  to obtain  counsel  of his own
selection to review this Agreement on his behalf.

     13.3 SEVERABILITY.  The invalidity or  unenforceability  of any one or more
provisions of

                                       8
<PAGE>

this  Agreement  shall not affect the  validity or  enforceability  of the other
provisions of this Agreement, which shall remain in full force and effect.

     13.4  SURVIVAL.  It is the express  intention  and agreement of the parties
hereto  that the  provisions  of  Sections  9, 10,  and 12  hereof  and the CDEX
Agreements  shall survive the  termination of this Agreement.  In addition,  all
obligations of the Employee to repay any shares of stock, if applicable, and all
rights of the Company to  repurchase  the Initial  Stock shall also  survive any
termination of this Agreement on the terms and conditions set forth herein.

     13.5  ASSIGNMENT.  The  rights  and  obligations  of the  parties  to  this
Agreement  shall not be  assignable  or  delegable,  except  that the rights and
obligations  of the Company  hereunder  shall be  assignable  and  delegable  in
connection with any subsequent reorganization of the Company structure,  merger,
consolidation,  sale of all or substantially all of the assets of the Company or
similar reorganization of a successor corporation.

     13.6  BINDING  EFFECT.   Subject  to  any  provisions  hereof   restricting
assignment,  this Agreement shall be binding upon and shall inure to the benefit
of the parties and their respective heirs, devisees, executors,  administrators,
legal representatives, successors and assigns.

     13.7 AMENDMENT;  WAIVER.  This Agreement  shall not be amended,  altered or
modified except by an instrument in writing duly executed by the parties hereto.
Neither the waiver by either of the  parties  hereto of a breach of or a default
under any of the provisions of this Agreement,  nor the failure of either of the
parties,  on one or more  occasions,  to enforce any of the  provisions  of this
Agreement or to exercise any right or privilege  hereunder,  shall thereafter be
construed as a waiver of any subsequent  breach or default of a similar  nature,
or as a waiver of any such provisions, rights or privileges hereunder.

     13.8 HEADINGS.  Section and subsection headings contained in this Agreement
are inserted for convenience of reference only, shall not be deemed to be a part
of this Agreement for any purpose, and shall not in any way define or affect the
meaning, construction or scope of any of the provisions hereof.

     13.9  GOVERNING  LAW. This  Agreement,  the rights and  obligations  of the
parties hereto,  and any claims or disputes relating thereto,  shall be governed
by and construed in  accordance  with the laws of the State of Maryland (but not
including the choice of law rules thereof). Any action filed in relation to this
Agreement and the  performance  of the parties  hereunder  shall be filed in the
appropriate  state court or the U.S.  District  Court having  jurisdiction  over
Rockville,  Maryland,  the parties  hereto waiving any other venue to which they
may be entitled by virtue of domicile or otherwise.  Each of the parties  hereto
waives a trial by jury in regard  to any  claims or  disputes  relating  to this
Agreement.

     13.10 ENTIRE AGREEMENT.  This Agreement and the CDEX Agreements  constitute
the entire  agreement  between  the parties  respecting  the  employment  of the
Employee,  there being no  representations,  warranties or commitments except as
set forth herein.

                                       9
<PAGE>

     13.11  COUNTERPARTS.  This  Agreement  may  be  executed  in  two  or  more
counterparts,  each of which  shall  be an  original  and all of which  shall be
deemed to constitute one and the same instrument.

     IN WITNESS WHEREOF,  the undersigned have duly executed this Agreement,  or
have caused this  Agreement to be duly executed on their behalf  effective as of
the day and year first hereinabove written.

                               CDEX-Inc.

                                    By:   /s/ Malcolm H. Philips, Jr.
                                       -----------------------------------------
                                    Name: Malcolm H. Philips, Jr.
                                    Title: President and CEO

                               Employee:

                                    By:    /s/ Wade Poteet
                                       -----------------------------------------
                                    Name:  Wade Poteet

                               Dynamic Management Resolutions

                                    By:    /s/ Larry Spiers
                                       -----------------------------------------
                                    Name:  Larry Spiers

                                       10
<PAGE>

                              EMPLOYMENT AGREEMENTS
                                    EXHIBIT A

1.   CDEX  Non-disclosure and Confidentiality  Agreement,  signed by the Company
     and the Employee

2.   CDEX Non-Compete and Non-Solicitation  Agreement, signed by the Company and
     the Employee

                                       11

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