Document:

<PAGE>
                                                                    EXHIBIT 10.2

                     IPA COMMERCIAL RISK SERVICES AGREEMENT

                                    BETWEEN

                            PACIFICARE OF CALIFORNIA

                                      AND

                    PRIME CARE MEDICAL GROUP OF CHINO VALLEY

                                   PACIFICARE

<PAGE>

                     IPA COMMERCIAL RISK SERVICES AGREEMENT

         This IPA COMMERCIAL RISK SERVICES AGREEMENT (the "Agreement") is made
and entered into this first day of January, 1995 by and between PACIFICARE OF
CALIFORNIA ("PacifiCare"), a California corporation, and Prime Care Medical
Group of Chino Valley a California corporation, ("IPA"), with reference to the
following facts:

A.       PacifiCare operates a prepaid health care service plan which arranges
for certain Health Care Services to be provided to persons who are enrolled in
the PacifiCare Health Plan in a manner consistent with the laws of the United
States and the State of California.

B.       PacifiCare desires to provide a quality direct service prepaid health
delivery system which maximizes the utilization of innovative methods to
promote the efficient, economical delivery of health care, and to develop and
implement programs of health education and health maintenance for its
Subscribers.

C.       IPA has as its primary objective the delivery of Medical Services
through agreements and active participation with individual physicians, medical
groups and/or clinics, their physicians and other related health professionals
and technicians, all of which are appropriately licensed in the State of
California.

D.       IPA desires to participate in PacifiCare's prepaid health service
delivery system by arranging or providing Health Care Services in coordination
with PacifiCare, its Subscribers and participating hospitals on a prepaid basis.

E.       PacifiCare and IPA deem it in their best interests to enter into a
renewable agreement whereby IPA agrees to provide or arrange Health Care
Services to persons who are enrolled as Subscribers in the PacifiCare Health
Plan.

NOW THEREFORE, it is agreed as follows:

     1.  DEFINITIONS

         Whenever used in this Agreement, the following terms shall have the
definitions contained in this Section 1:

         1.1   AGREEMENT - is the PacifiCare IPA Commercial Risk Services
Agreement, dated as hereinabove stated, including all attachments, addendums
and amendments hereto.

PRIME CARE                             1                       COMM PARTIAL RISK

<PAGE>

                  1.2      CAPITATION PAYMENTS - are payments made to IPA by
PacifiCare on a prepaid basis, as set forth in Attachment C, incorporated in
full herein by reference, for the Medical Services to be provided under this
Agreement.

                  1.3      CATASTROPHIC CASE - is any single medical condition,
including complications arising from such medical condition, where the total
cost of Health Care Services to treat such condition is expected to exceed fifty
thousand dollars ($50,000) per condition, regardless of payment source.

                  1.4      CONFORMANCE REQUEST - is a written request made by
PacifiCare to IPA to correct the performance of an IPA physician or Specialist
Physician to conform to the provisions of this Agreement.

                  1.5      COPAYMENTS - are charges pursuant to the PacifiCare
Health Plan which may be charged to the Subscriber by the IPA at the time of
provision of Health Care Services which are in addition to the Capitation
Payments paid to IPA by PacifiCare.

                  1.6      COST OF CARE - is the value of Medical Services as
defined in this Agreement and as calculated pursuant to the formula set forth in
Attachment A4, incorporated in full herein by reference.

                  1.7      ELIGIBILITY LIST - is a list of Subscribers to whom
IPA shall provide or arrange Health Care Services.

                  1.8      EMERGENCY SERVICES - are those Health Care Services
furnished to a Subscriber for the treatment of acute injury or illness requiring
immediate medical attention and which threaten life or limb, or which involve
uncontrollable bleeding, or loss of consciousness, or which cannot be delayed
without possible serious effects on the health of the Subscriber.

                  1.9      HEALTH CARE SERVICES - are all authorized services to
which Subscribers are entitled under the PacifiCare Health Plan, including
Medical Services, Hospital Services and Emergency Services.

                  1.10     HOSPITAL - is an acute care facility (or facilities)
located in the IPA Service Area, licensed as an acute care hospital under the
laws of the State of California and which has a written agreement with
PacifiCare to provide Hospital Services to Subscribers. For purposes of this
Agreement, until IPA is notified otherwise, Hospital shall be Desert Valley
Hospital, Inc.

PRIME CARE                             2                      COMM PARTIAL RISK
<PAGE>

                  1.11     HOSPITAL DAY - is any twenty-four (24) hour period
commencing at 12:00 a.m., or 12:00 p.m., whichever is used by a Hospital to
determine a Hospital Day, during which a Subscriber receives Hospital Services
at a Hospital.

                  1.12     HOSPITAL SERVICES - are the Health Care Services
described in Attachment A1, incorporated in full herein by reference, which
Hospitals and other PacifiCare contracting providers shall provide to
Subscribers and which IPA shall arrange or coordinate for Subscribers pursuant
to the PacifiCare Health Plan.

                  1.13     IPA - is the medical group or independent practice
association identified in the first paragraph of this Agreement and its Member
Physicians, all of whom are licensed to practice medicine or osteopathy in the
State of California at the IPA Facilities.

                  1.14     IPA FACILITIES - are those facilities whose locations
are listed in Attachment H, attached hereto and incorporated in full herein by
reference, where Medical services shall be available to Subscriber pursuant to
this Agreement.

                  1.15     IPA SERVICE AREA - is the geographical area within a
thirty (30) mile radius of each IPA Facility. Such radius commences with the
address of an IPA Facility and extends for thirty (30) miles over the shortest
route using public streets and highways.

                  1.16     MEDICAL SERVICES - are the authorized Health Care
Services to which Subscribers are entitled under the PacifiCare Health Plan,
some of which are summarized in Attachment A2, incorporated in full herein by
reference.

                  1.17     MEDICALLY NECESSARY SERVICES - are Health Care
Services which are required by Subscriber as determined by IPA in accordance
with accepted medical and surgical practices and standards in the community and
the professional standards recommended by PacifiCare's Quality Assurance
Committee and Utilization Review Committee.

                  1.18     MEMBER PHYSICIANS - are physicians, surgeons and
osteopaths licensed to practice medicine in the State of California and who have
an ownership interest in, are employed by, or contract with, IPA.

                  1.19     OUTSIDE PROVIDERS - are licensed physicians,
surgeons, osteopaths, paramedics, hospitals and other licensed health care
facilities which provide Health Care Services to Subscribers, but which do not
have written agreements with IPA or PacifiCare and which are not Specialist
Physicians.

PRIME CARE                             3                      COMM PARTIAL RISK
<PAGE>
                  1.20     PACIFICARE HEALTH PLANS - is any one of various
prepaid health service plans operated by PacifiCare as described in the
PacifiCare Medical and Hospital Group Subscriber Agreement, the PacifiCare
Medical And Hospital Individual Conversion Member Agreement and PacifiCare
Medical and Hospital Individual Subscriber Agreement, and attachments, addenda,
supplements and periodic amendment thereto, copies of which are attached hereto
and Attachment B, incorporated in full herein by reference. For purposes of this
Agreement, the PacifiCare Health Plan shall not include PacifiCare's Secure
Horizons Plan.

                  1.21     PARTICIPATING MEDICAL GROUP - includes IPA and its
Members Physicians and is any duly licensed doctor of medicine or osteopathy
(who may or may not be a Specialist Physician) that has directly, or as a member
of a group or association of licensed doctors of medicine or osteopathy, entered
into a written agreement with PacifiCare to provide Health Care Services in
conjunction with the PacifiCare Health Plan.

                  1.22     QUALITY ASSURANCE COMMITTEES - are committees
separately established by IPA and PacifiCare which shall establish, maintain and
perform quality assurance review of Medical Services provided to Subscribers as
reasonably required by PacifiCare, the California Department of Corporations,
the Office of Qualification and Compliance, the United States Department of
Health and Human Services or any other governmental agencies with regulatory or
enforcement jurisdiction over PacifiCare or this Agreement.

                  1.23     REFERRALS - are recommended directions of Subscribers
from IPA to physicians, including Specialist Physicians, Outside Providers who
are physicians and/or consultant physicians, or providers of ancillary services
such as lab, x-ray and physical therapy, EKG, EEG, health education, medical
social service, home health care, mental health and acute alcohol and drug abuse
services, for the purpose of obtaining Health Care Services.

                  1.24     SPECIALIST PHYSICIANS - are physicians who have
written agreements with IPA to provide Health Care Services to Subscribers on a
Referral basis and who do provide such Health Care Services at offices or
facilities which are not IPA Facilities.

                  1.25     SUBSCRIBER - is an individual who is enrolled in a
PacifiCare Health Plan, who meets all the eligibility requirements for
membership in such plan, who has designated IPA as his or her primary care
coordinator and for whom all applicable Subscriber Premiums have been paid and
received by PacifiCare. For the purpose of this Agreement, Subscriber shall
include all eligible dependents of the individual named by PacifiCare for
coverage under a PacifiCare Health Plan.

PRIME CARE                             4                      COMM PARTIAL RISK
<PAGE>

                  1.26     SURCHARGES - are additional fees which are not
disclosed to Subscriber for Health Care Services and which are not allowable
Copayments.

                  1.27     UTILIZATION REVIEW COMMITTEE - is an IPA committee of
at least three (3) Member Physicians which is established and maintained, in
accordance with the provisions of Section 3.13 herein, to develop a utilization
control program outlining procedures for the efficient use of resources,
consistent with state and federal law, for the rendition of Health Care
Services. The Utilization Review Committee shall review elective Referrals and
hospital admissions on a concurrent and prospective basis and Emergency Services
and hospital admissions on a retrospective basis.

                  1.28     PACIFICARE POINT OF SERVICE - is a health plan
consisting of the PacifiCare Health Plan, plus the Out-of-Network Indemnity
Plan.

                  1.29     OUT-OF-NETWORK INDEMNITY PLAN - is a supplemental
health plan offered as part of the PacifiCare Choice by an insurance company or
a self-insured employer which provides limited coverage for Out-of-Network
Services.

                  1.30     PACIFICARE IN-NETWORK PLAN - is the PacifiCare
Health Plan that is sold in conjunction with the Out-of-Network Indemnity Plan
as part of PacifiCare Choice.

                  1.31     CONVENTIONAL PLAN - is the PacifiCare Health Plan
which is not sold as part of the PacifiCare Choice.

                  1.32     IN-NETWORK SERVICES - are Health Care Services which
are provided or arranged by IPA to PacifiCare Choice Subscribers pursuant to the
PacifiCare Health Plan.

                  1.33     OUT-OF-NETWORK MEDICAL SERVICES - are the Health
Care Services summarized in Attachment A2 obtained by PacifiCare Choice
Subscribers which are not provided or authorized by IPA in accordance with the
PacifiCare Health Plan.

                  1.34     OUT-OF-NETWORK HOSPITAL SERVICES - are the Health
Care services summarized in Attachment A1 obtained by PacifiCare Choice
Subscribers which are not arranged or coordinated by IPA in accordance with the
PacifiCare Health Plan, and which do not qualify as Emergency Services.

                  1.35     OUT-OF-NETWORK SERVICES - are Out-of-Network
Medical Services and Out-of-Network Hospital Services. Out-of-Network Services
are covered in part under the Out-of-Network Indemnity Plan, but are not covered
under the PacifiCare Health Plan.

PRIME CARE                              5                     COMM PARTIAL RISK
<PAGE>

                  1.36     NET PREMIUM - is the amount of gross premiums billed
by PacifiCare each month for coverage of Subscribers designating IPA as their
Participating Medical Group, excluding amounts billed by PacifiCare to cover
broker commissions and optional supplemental benefits.

                  1.37     PHARMACY PREMIUM - is the gross premiums billed by
PacifiCare each month for coverage of Subscribers for the outpatient
prescription drug benefit.

         2.       RELATIONSHIP OF PARTIES

                  2.01     IPA PARTICIPATION - The execution of this Agreement
shall qualify IPA to participate in the provision or arrangement of Health Care
Services to Subscribers pursuant to the terms of the PacifiCare Health Plan, as
amended from time to time. PacifiCare shall notify IPA or any material
amendments to the PacifiCare Health Plan, which amendments shall become
effective upon thirty (30) days written notice by PacifiCare to IPA provided IPA
has not given written objection to be bound by such amendments to PacifiCare
within the thirty (30) day period after notice is given. IPA's, approval shall
not be unreasonably withheld. If IPA does provide PacifiCare written objection
to be bound by such amendments within the thirty (30) day period, such
amendments to the PacifiCare Health Plan shall have no force or effect on IPA.

                  2.02     LIABILITY FOR OBLIGATIONS - Notwithstanding any
other section or provision of this Agreement, nothing contained herein shall
cause either party to be liable or responsible for any debt, liability, or
obligation of the other party or any third party, unless such liability or
responsibility is expressly assumed by the party sought to be charged therewith.
Each party shall be solely responsible for and shall indemnify and hold the
other party harmless against any obligation for the payment of wages, salaries
or other compensation (including all state, federal and local taxes and
mandatory employee benefits), insurance and voluntary employment-related or
other contractual or fringe benefits as may be due or payable by the party to or
on behalf of such party's employees, agents and representatives.

                  2.03     INDEPENDENT CONTRACTOR - The relationship between
PacifiCare and IPA is an independent contractor relationship. Neither IPA nor
its employees or agents are employees or agents of PacifiCare and neither
PacifiCare nor any employee or agent of PacifiCare is a member, partner,
employee or agent of IPA. All medical decisions are rendered solely by IPA and
not by PacifiCare. IPA is solely responsible for all Health Care
Services provided or arranged by IPA for Subscribers. None of the relationship
of agency, representation, jurisdiction, ownership, control or employment
between the parties other than that of

PRIME CARE                             6                      COMM PARTIAL RISK
<PAGE>
independent parties contracting for the purposes of effectuating this Agreement.

                  2.04     DUTY TO DEFEND AND INDEMNIFY - To the extent not
covered by insurance maintained by PacifiCare, whether because of liability in
excess of the policy limits or because of the occurrence of a non-insured event,
IPA shall defend, indemnify and hold harmless PacifiCare from and against any
claim, loss, damage, cost, expense or liability arising out of or related to the
performance or non-performance by IPA, its Specialist Physicians or employees of
any Health Care Services to be performed or arranged by IPA under this
Agreement. It is understood and agreed by PacifiCare that the foregoing
indemnification and obligation is in no way whatsoever intended to reduce or
eliminate any insurance coverage maintained by IPA and that PacifiCare shall be
entitled to indemnification from IPA only for claims, losses, damages, costs,
expenses or liabilities in excess of the applicable insurance policy limits or
arising from uninsured events or occurrences.

                  To the extent not covered by insurance maintained by IPA,
whether because of liability in excess of the policy limits or because of the
occurrence of a non-insured event, PacifiCare shall defend, indemnify and hold
harmless IPA from and against any claim, loss, damage, cost, expense or
liability arising out of or related to the performance or non-performance of
PacifiCare, its employees or agents of any service to be performed or provided
by PacifiCare under this Agreement. It is understood and agreed by IPA that the
foregoing indemnification obligation is in no way whatsoever intended to reduce
or eliminate any insurance coverage maintained by PacifiCare and that IPA shall
he entitled to indemnification from PacifiCare only for claims, losses, damages,
costs, expenses, or liabilities in excess of the applicable insurance policy
limits or arising from uninsured events or occurrences.

         3.       DUTIES OF IPA

                  3.01     IPA RESPONSIBILITIES - IPA agrees to arrange for or
provide Health Care Services twenty-four (24) hours a day in coordination with
PacifiCare for each Subscriber who has designated IPA as his or her
Participating Medical Group. IPA shall be financially responsible for all
Medical Services which are specified in Attachment A2, incorporated in full
herein by reference, and which are provided to Subscribers for whom IPA should
receive a monthly Capitation Payment from PacifiCare based upon the PacifiCare
provided Eligibility List. IPA shall be responsible for determining whether
Subscribers are eligible for Health Care Services on the basis of the most
current Eligibility List supplied to IPA by PacifiCare.

PRIME CARE                             7                      COMM PARTIAL RISK
<PAGE>
                  3.02     STANDARDS - All Medical Services arranged for or
provided by IPA and its Member Physicians shall be provided by professional
personnel and at physical facilities according to generally accepted standards
of medical practice and management in the community. IPA further agrees to
provide or arrange for Referrals to Specialist Physicians and facilities as are
necessary, appropriate, and in accordance with generally accepted standards of
medical practice in the community in compliance with the standards developed by
PacifiCare's Quality Assurance Committee. If IPA contracts with Specialist
Physicians to provide Medical Services under this Agreement, IPA shall require
such Specialist Physicians to provide IPA with the credentialing information set
forth herein. IPA shall obtain and maintain information concerning each Member
Physician's and Specialist Physician's education, training, references,
malpractice liability insurance, hospital staff status, hospital clinical
privileges, and hospital staff reappointment dates. Such information shall be
kept in a form prescribed by or acceptable to PacifiCare. Upon request, the
credentialing information shall be made available to PacifiCare for review or
copying.

                  IPA acknowledges and agrees that it shall report Member
Physicians or Specialist Physicians as required by the California Business and
Professions Code Section 805 ("Section 805"). IPA further agrees to maintain and
demonstrate to PacifiCare upon request compliance with the following:

                           3.02.01  IPA shall ensure that its Member Physicians
and Specialist Physicians are licensed by the State of California and have
current Drug Enforcement Agency ("DEA") registration. IPA shall immediately
notify PacifiCare in writing of any of the following actions taken by or against
a Member Physician or Specialist Physician: (i) the surrendering, revocation, or
suspension of a license; (ii) the surrendering, revocation, or suspension of
current DEA registration; (iii) any filing pursuant to Section 805; (iv) any
filing pursuant to the National Practitioner Data Bank; (v) the filing of any
malpractice claim of more than ten thousand dollars ($10,000); and (vi) a
change in hospital staff status or hospital clinical privileges, including any
restrictions or limitations.

                  If IPA fails to obtain and maintain the information set
forth in Paragraph 3.02 or fails to immediately notify PacifiCare as set forth
in this Paragraph 3.02.01, IPA shall indemnify and hold harmless PacifiCare
from and against any claim, loss, damage, cost, expense or liability arising
out of or related to such nonperformance by IPA, its Member Physicians,
Specialist Physicians or employees.

                           3.02.02  In the event that it is determined by
PacifiCare that IPA does not obtain and maintain the information set forth in
paragraph 3.02, IPA agrees to assist PacifiCare in

PRIME CARE                             8                      COMM PARTIAL RISK
<PAGE>
obtaining credentialing information concerning each Member Physician's and
Specialist Physician's education, training, references, malpractice liability
insurance, hospital staff status, hospital clinical privileges, and hospital
staff reappointment dates. IPA shall obtain from each Member Physician and
Specialist Physician a signed waiver, acceptable to PacifiCare, allowing
PacifiCare access to such credentialing information at any acute care hospital
or health care facility. If IPA is unable to obtain a signed waiver from a
Member Physician or Specialist Physician, IPA shall obtain the credentialing
information directly from the acute care hospital or health care facility and
make such information available to PacifiCare upon request for review and
copying.

                           3.02.03  IPA agrees to provide access to continuing
education programs for its Member Physicians and Specialist Physicians in
accordance with the standards established by the California Medical Association
for continuing education. The content and delivery of such continuing education
programs shall be in the discretion and judgement of IPA, in order to maintain
high standards for the delivery of Medical Services pursuant to this Agreement.
IPA further agrees to gather, correlate, and distribute to its Member Physicians
and Specialist Physicians, information regarding professional medical activities
and developments which IPA believes may be of assistance in providing Medical
Services pursuant to this Agreement.

                           3.02.04  IPA agrees to provide reasonable evidence
that all nurses and other ancillary and paramedical personnel who are employed
by and contract with IPA or Specialist Physicians are properly licensed by the
State of California.

                  3.03     INSURANCE - IPA shall maintain professional liability
insurance and general liability insurance in the minimum amounts of One Million
Dollars ($1,000,000) per person, Three Million Dollars ($3,000,000) per
occurrence coverage, and Three Million Dollars ($3,000,000) combined single
limits coverage, for its Member Physicians providing Medical Services to
Subscribers on behalf of IPA. In the event IPA procures a claims made policy as
distinguished from an occurrence policy, IPA shall procure and maintain prior
to termination of such insurance, continuing, "tail" coverage, unless successor
policy coverage provides such "tail" protection. IPA shall immediately notify
PacifiCare of any material changes in insurance coverage and shall provide a
certificate of such insurance coverage to PacifiCare. In the event IPA contracts
with independent contractor physicians and Specialist Physicians to provide
Medical Services under this Agreement, IPA will require such independent
contractor physicians and Specialist Physicians and their agents to maintain
professional liability insurance and general liability insurance in the minimum
amounts as is usual and customary in the community.

PRIME CARE                             9                      COMM PARTIAL RISK
<PAGE>

                  3.04     REFERRALS - IPA shall refer Subscribers in need of
specialty care services only with the approval of the IPA Utilization Review
Committee. However, in the event that Emergency Services are required, IPA shall
comply with Section 3.05 below.

                  3.05     HOSPITAL ADMISSIONS - Whenever IPA determines that a
Subscriber on IPA's Eligibility List requires Hospital Services that are not
Emergency Services, IPA shall arrange for such Hospital admissions and
outpatient surgeries through the IPA's Utilization Review Committee and its
developed utilization review program. IPA and its Member Physicians shall not
serve as admitting physicians for any Subscriber without such prior approval
except in the event that Emergency Services are required. If IPA or a Member
Physician admits a Subscriber to a Hospital for Emergency Services, IPA shall
notify PacifiCare of such admission within the time frames as required in the
PacifiCare Provider Policies and Procedures Manual, attached hereto as
Attachment D and incorporated in full herein by reference. Admissions for
Emergency Services shall be made to hospitals contracting with PacifiCare, if
possible.

                  3.06     ELIGIBILITY LIST - IPA shall accept as patients those
Subscribers who are on IPA's Eligibility List provided by PacifiCare to IPA.
Member Physicians and IPA shall be entitled to rely on the most current provided
list until a new list has been provided to IPA.

                  3.07     COLLECTION OF CHARGES FROM SUBSCRIBERS - IPA shall
collect applicable Copayments from Subscribers upon the rendition of Medical
Services to Subscribers pursuant to the PacifiCare Health Plan. With the
exception of Copayments and charges for non-covered services delivered on a
fee-for-service basis to Subscribers, IPA shall in no event, including, without
limitation, non-payment by PacifiCare, insolvency of PacifiCare, or breach of
the Agreement, bill, charge, collect and deposit, or attempt to bill, charge,
collect or receive any form of payment, from any Subscriber for Medical Services
provided pursuant to this Agreement and for which Subscriber is entitled under
the PacifiCare Health Plan in effect for such Subscriber.

              IPA shall not maintain any action at law or equity against a
Subscriber to collect sums owed by PacifiCare to IPA. Upon notice of any such
charge, PacifiCare may terminate this Agreement consistent with the provisions
contained in Section 7.01.02 and take all other appropriate action consistent
with the terms of this Agreement to eliminate such charges, including, without
limitation, requiring IPA and Specialist Physicians to return all sums collected
as Surcharges from Subscribers or their representatives. Nothing in this
Agreement, however, shall be construed to prevent IPA from providing non-covered
Medical

PRIME CARE                             10                      COMM PARTIAL RISK
<PAGE>
Services on a usual and customary fee-for-service basis to Subscribers.

                  IPA's obligations regarding the collection of charges from
Subscribers shall survive the termination of this Agreement with respect to
Health Care Services provided during the term of the Agreement without regard to
cause of termination of this Agreement. Except as provided elsewhere herein,
these obligations shall not apply to services provided after the Agreement has
been terminated and the phase-out period has expired pursuant to Section 3.09,
if applicable.

                  3.07.01  Collection of Charges for Out-of-Network Services.
Notwithstanding anything to the contrary in Section 3.07 or elsewhere in the
Agreement, if an IPA Member Physician or Specialist Physician provides
Out-of-Network Services to a PacifiCare Choice Subscriber, IPA shall bill the
Out-of-Network Indemnity Plan carrier for such services and agrees to accept
full reimbursement at the Cost of Care rates described in Attachment A4 of this
Agreement.

                  3.08     COLLECTION OF CHARGES FROM THIRD PARTIES - IPA and
Member Physicians accept payment from PacifiCare (plus applicable Copayments)
for Medical Services as provided herein as full payment for such Medical
Services; provided however, in the event the Subscriber is entitled to payment
from another third party or for payment for a Workers' Compensation claim, or
from other primary insurance coverage maintained by Subscriber, IPA and Member
Physicians shall make no demand upon PacifiCare for reimbursement under the
Individual Subscriber Stop Loss Program as specified in Attachment A3 hereto
until all primary sources of payment have been pursued and it is determined that
full payment cannot be obtained within ten (10) months from the date of the
provision of Medical Services.

                           For purposes of accomplishing the intent of this
subsection, PacifiCare hereby assigns to IPA for collection, any claims or
demands against third parties for amounts due for Medical Services provided by
IPA pursuant to this Agreement, subject to the following conditions:

                           3.08.01  IPA shall utilize lien forms which are
provided by PacifiCare in the PacifiCare Policies and Procedures Manual or which
have been approved in advance by PacifiCare. IPA shall notify PacifiCare each
time it pursues and each time it obtains a signed lien from a Subscriber.

                           3.08.02  IPA shall not commence any legal or
equitable action against a third party without obtaining the prior written
consent of PacifiCare. It is agreed that collection or demand letters consistent
with the PacifiCare Provider Policies and Procedures Manual shall not constitute
the commencement of

PRIME CARE                             11                      COMM PARTIAL RISK
<PAGE>
legal or equitable action. Under no circumstances, shall IPA commence any
legal action against a Subscriber.

                           3.08.03  IPA shall defend, indemnify and hold
PacifiCare harmless or all actions by IPA pursuant to this Section 3.08.

                           3.08.04  IPA shall perform such collection activities
consistent with the procedures set forth in the PacifiCare Provider Policies and
Procedures Manual.

                           3.08.05 PacifiCare may rescind such assignment in
total or on a claim-by-claim basis by providing written notice of rescission to
IPA. In the event IPA receives payment from a third party after receipt of
payment from PacifiCare, IPA shall reimburse PacifiCare to the extent that the
combined amounts received from all payors exceeds one hundred percent (100%) of
IPA's usual and customary fee-for-service charges.

                  3.09     DUTIES OF IPA UPON TERMINATION DURING PHASE-OUT
PERIOD - Should this Agreement be terminated by IPA pursuant to Section 7.0.01
(a) or Section 7.01.01 (b), IPA shall be released of its obligation to
continue to provide or arrange for Health Care Services to Subscribers during
the phase-out period as stated in this Section 3.09. If this Agreement is
terminated for any other reason by either party or if this Agreement terminates
at the end of the Initial Term or any renewal term, IPA shall not be released of
its obligation to continue to provide or arrange for Health Care Services to
Subscribers during the phase-out period, which phase-out period shall end on the
earlier of:

                           3.09.01  Twelve (12) months from the effective date
of termination of this Agreement, or

                           3.09.02  The date PacifiCare has secured the transfer
of Subscribers to another medical group, individual practice association, or
physician for further treatment, and has notified IPA of such transfer in
writing.

                           Compensation during the phase-out period shall be at
the Capitation Rates set forth in Attachment C hereto, until memberships goes
below five hundred (500) members. Once there are five hundred members or less,
compensation will be based upon per diem contracted rates that are in place at
the time of the phase-out.

                  3.10     CONTINUING CARE RESPONSIBILITIES - In the event of
termination of this Agreement and the expiration of IPA's duty to provide or
arrange Health Care Services during the phase-out period pursuant to Section
3.09, if applicable, IPA and member Physicians shall continue to provide or
arrange for Health Care Services to Subscribers until the effective date of
transfer of

PRIME CARE                             12                      COMM PARTIAL RISK
<PAGE>
such Subscribers to another Participating Medical Provider for further treatment
and written notice of such transfer has been provided by PacifiCare to IPA. If a
Subscriber's care cannot be transferred for the reason of Subscriber
hospitalization, continuity of care, or other legally required medical treatment
reasons, IPA shall continue to provide or arrange for treatment for the
Subscriber until PacifiCare has made provision for the transfer of such
Subscriber to another Participating Medical Provider for further treatment and
has notified IPA of such transfer in writing. The payment provisions for any
continued treatment after expiration of the phase-out period shall be the lesser
of eighty percent (80%) of the usual and customary fees of the treating
physician or the Cost of Care as set out in Attachment A4, attached hereto and
incorporated in full herein by reference.

                       Notwithstanding the above or any other provision to the
contrary, IPA agrees that in the event PacifiCare ceases operations for any
reason, including insolvency, IPA shall provide or arrange Health Care Services
and shall not bill, charge, collect or receive any form of payment from any
Subscriber or have any recourse against a Subscriber for Health Care Services
provided after PacifiCare ceases operations. This continuation of Health Care
Services obligation shall be for the period for which premium has been paid, but
shall not exceed a period of thirty (30) days, except for those Subscribers who
are hospitalized on an inpatient basis as provided below.

                       In the event PacifiCare ceases operations or IPA
terminates this Agreement on the basis of PacifiCare's failure to make timely
Capitation Payments, IPA shall continue to arrange for Health Care Services to
those Subscribers who are hospitalized on an inpatient basis at the time
PacifiCare ceases operations or IPA terminates this Agreement until such
Subscribers are discharged from the hospital. IPA may file a claim with
PacifiCare for such services as previously specified in this Section 3.10.

                       IPA agrees that the provisions of this Section and
IPA's and Member Physicians' obligations herein shall survive the termination of
this Agreement without regard to the cause of termination of the Agreement, and
shall be construed to be for the benefit of the Subscribers.

                  3.11 STAFF PRIVILEGES - IPA agrees to have its Member
Physicians seek and obtain (and provide evidence of) staff privileges or other
appropriate access to Hospitals where Health Care Services shall be provided to
Subscriber by IPA's Member Physicians.

                  3.12 ADMINISTRATIVE GUIDELINES - IPA agrees to perform its
duties under this Agreement in a manner consistent with the reasonable
administrative guidelines provided by PacifiCare, in

PRIME CARE                             13                      COMM PARTIAL RISK

<PAGE>
its Provider Policies and Procedures Manual, attached hereto as Attachment D
and incorporated in full herein by reference. Subject to Section 12.13 herein,
PacifiCare shall notify IPA of any material amendments to the administrative
guidelines, which amendments shall become effective upon thirty (30) days
written notice by PacifiCare to IPA if IPA has not objected to PacifiCare in
writing within the thirty (30) day period to be bound by such amendments. IPA
approval of such amendments shall not be unreasonably withheld. If IPA does
provide PacifiCare reasonable written objection to be bound by such amendments
within the thirty (30) day period, such amendments to the PacifiCare Health
Plan shall have no force or effect on IPA.

                  3.13     UTILIZATION REVIEW - IPA agrees to participate with
PacifiCare in an ongoing utilization review program to promote efficient use of
resources. The IPA's Utilization Review Committee shall meet as frequently as
necessary but at least weekly. The Utilization Review Committee shall keep
minutes of the committee meetings, a copy of which shall be made available to
PacifiCare upon ten (10) days written notice by PacifiCare to IPA. IPA and
PacifiCare shall jointly implement a utilization review system whereby IPA shall
notify PacifiCare of any hospital admissions. A member of the PacifiCare medical
services staff may participate in IPA's Utilization Review Committee meetings.

                  3.14     QUALITY OF HEALTH CARE SERVICES - IPA agrees to
assure quality of Health Care Services by:

                           3.14.01  Assigning PacifiCare Subscribers only to
Member Physicians or Outside Providers meeting quality health care standards;

                           3.14.02  Inspecting the premises and facilities of
its Member Physicians on a regular basis and allowing PacifiCare to participate
in such inspections upon ten (10) days written notice.

                           3.14.03  Utilizing the PacifiCare Quality Assurance
Committee's guidelines for physician credentialing.

                  3.15     QUALITY ASSURANCE AND REMEDIAL PROCEDURES - IPA shall
cooperate with PacifiCare in the operation of PacifiCare's quality assurance
program and IPA shall perform quality assurance review of Health Care Services
as brought before IPA internally or from PacifiCare's Quality Assurance
Committee. IPA shall establish and maintain a Quality Assurance Committee which
shall meet at least quarterly. A member of the PacifiCare medical services
staff may participate in IPA's Quality Assurance Committee meetings. The IPA
Quality Assurance Committee shall keep minutes of the committee meetings, a copy
of which shall be made available to PacifiCare upon ten (10) days written notice
by PacifiCare to IPA. The task of the Quality Assurance Committee

PRIME CARE                             14                      COMM PARTIAL RISK
<PAGE>
may be assumed by the Utilization Review Committee described in Section 3.13;
however, in such event, the Utilization Review and Quality Assurance Committees
must hold separately convened meetings and the minutes of each meeting must be
separately maintained.

                           IPA shall, at the written request of PacifiCare, make
available one (1) Member Physician from IPA to attend the PacifiCare Quality
Assurance Committee meetings. The intent of this Section is to have at least one
Member Physician from IPA serve for six (6) months on the PacifiCare Quality
Assurance Committee during a three (3) year period. IPA shall develop written
procedures for remedial action whenever, it is determined by PacifiCare's
Quality Assurance Committee, inappropriate or substandard Health Care Services
have been furnished or Health Care Services that should have been furnished have
not been furnished. Upon request, PacifiCare shall assist IPA in the formulation
of such remedial procedures.

                  3.16     RECIPROCITY AGREEMENTS - IPA agrees to develop
agreements among PacifiCare's Participating Medical Groups to assure reciprocity
of health care among the Participating Medical Groups for PacifiCare
Subscribers. IPA shall accept non-emergency or specialty Referrals from such
other Participating Medical Groups and such other Participating Medical Groups
shall be required to accept non-emergency or specialty Referrals from IPA.
Payment for the foregoing Referrals shall be no greater than the Cost of Care
Rates described in Attachment A4.

                  3.17     INDIVIDUAL STOP-LOSS PROGRAM - IPA agrees to
participate in and assume the rights and responsibilities of the PacifiCare
Stop-Loss Program as defined in Attachment A3, attached hereto and incorporated
in full herein by reference.

                  3.18     OTHER CONTRACTUAL COMMITMENTS - IPA represents and
assures PacifiCare that contractual commitments with other HMOs, competitive
medical plans and health related entities do not restrict or impair IPA from
performing its duties under this Agreement.

                  3.19     DISSEMINATION OF INFORMATION - IPA agrees that
PacifiCare may use IPA's name, address, telephone number, and a listing of IPA's
Member Physicians and Specialist Physicians in any informational material
routinely distributed to Subscribers and for other purposes related to the
administration of the PacifiCare Health Plan as an indication of IPA's
willingness to provide Health Care Services to Subscribers.

                           Prior to listing or otherwise referencing PacifiCare
in any promotional or advertising brochures, media announcements or other
advertising or marketing material, IPA shall first obtain the prior subjective
consent of PacifiCare.

PRIME CARE                             15                      COMM PARTIAL RISK
<PAGE>
         3.20 WRITTEN AGREEMENTS - IPA shall secure written agreements,
consistent with the terms of this Agreement and in compliance with all state and
federal law, with all Specialist Physicians regularly utilized as a part of
IPA's referral system.

         3.21 MEDICAL CARE CRITERIA - IPA shall utilize the criteria for
medical care that is established or approved by PacifiCare's Quality Assurance
Committee as a standard reference in determining appropriate lengths of stay for
hospitalized Subscribers or appropriate utilization patterns for referral to
specialty services.

         3.22 NON-DISCRIMINATION - IPA represents and assures that Health Care
Services are rendered to Subscribers in the same manner as such services are
provided to IPA's other patients, except as required pursuant to this Agreement.
Subscribers shall not be subject to any discrimination whatsoever by IPA in
regards to access to Health Care Services.

         3.23 ACCOUNTS PAYABLE SYSTEM - IPA agrees to operate its accounts
payable system in a manner which assures that providers of authorized Medical
Services who are Member Physicians and non-Member Physicians receive payment for
Medical Services rendered to Subscribers within forty-five (45) working days of
IPA's receipt of an uncontested claim from such Member Physicians and non-member
Physicians. In the event IPA fails to meet the payment timelines discussed in
this Section 3.23, in addition to exercising any other remedies it may have
under this Agreement, PacifiCare may take actions to assist IPA in operating its
accounts payable system including, but not limited to, assuming the obligation
of paying IPA's Member Physicians and Non-Member Physicians and charging IPA an
administrative fee for performing such services.

         3.24 CATASTROPHIC CASE MANAGEMENT - IPA agrees that PacifiCare's
medical director may be involved in the management and coordination of
Catastrophic Cases. IPA will fully assist PacifiCare in providing information
that may be required in determining the need for a transfer of a Subscriber into
PacifiCare's regional centers for the care of Catastrophic Cases including, but
not limited to, prompt notification of known or suspected Catastrophic Cases.
Detailed procedures for Catastrophic Case management will be mutually agreed
upon by the parties based upon IPA's and PacifiCare's determination of the
Subscriber's transferability. Except in unusual circumstances, regional centers
for care of Catastrophic Cases shall be sought within the IPA Service Area and
surrounding area.

         3.25 CAPACITY REPORTING - IPA will provide to PacifiCare, at the
earliest possible time, notice of any significant changes in the capacity of IPA
to provide or arrange for the Health Care Services contemplated by this
Agreement (e.g., addition or deletion of Member Physicians or Specialist
Physicians), including

PRIME CARE                            16                      COMM PARTIAL RISK

<PAGE>

a ninety (90) day written notice in the event IPA is unable to properly service
additional Subscribers. IPA shall still be obligated to provide or arrange for
Health Care Services to Subscribers who are with employer groups whom Pacificare
had agreed to enroll prior to ninety (90) days from the effective date of the
written notice. PacifiCare shall provide IPA, upon IPA's request, current
marketing information within a reasonable period for purposes of determining IPA
capacity.

         3.26 REPRESENTATION OF IPA MEMBER PHYSICIANS - IPA agrees to represent
its Member Physicians in matters pertaining to the provision of Health Care
Services under this Agreement, and that it has obtained written consent to such
representation from its Member Physicians.

         3.27 PERFORMANCE OF MEMBER PHYSICIANS - IPA agrees: (i) to develop
methods for discussion of performance with its Member Physicians, (ii) to assure
correction of performance of its Member Physicians consistent with the
provisions of this Agreement and state and federal law applicable to the
PacifiCare Health Plan, and (iii) to resolve Conformance Requests.

         3.28 WITHDRAWAL OF AN IPA FACILITY - In the event IPA seeks to withdraw
one or more of the IPA Facilities listed in Attachment H from providing or
arranging for Health Care Services to Subscribers under this Agreement, IPA must
notify PacifiCare of such withdrawal in writing at least one hundred and eighty
(180) days prior to the effective withdrawal date; after the effective date of
withdrawal, IPA shall still be responsible to provide or arrange for Health Care
Services to the affected Subscribers at the other IPA Facilities.

         3.29 PACIFICARE CHOICE CONTROL PROGRAM - IPA agrees to participate in
and have the rights and responsibilities applicable to the PacifiCare Choice
Control Program as set forth in Attachment A6, attached hereto and incorporated
herein.

         3.30 WITHDRAWAL OF A MEMBER PHYSICIAN - In the event IPA seeks to
withdraw one or more of the Member Physicians from providing or arranging Health
Care Services to Subscribers under this Agreement, IPA must notify PacifiCare of
such withdrawal in writing at least sixty (60) days prior to the effective
withdrawal date. After the effective date of withdrawal, IPA shall still be
responsible to provide or arrange for Medical Services to such Subscribers.

4. DUTIES OF PACIFICARE

         4.01 ADMINISTRATION - PacifiCare agrees to perform all necessary
administrative, accounting, enrollment and other functions consistent with the
administration of the PacifiCare Health Plan and this Agreement.

PRIME CARE                          17                      COMM PARTIAL RISK

<PAGE>

         4.02 BENEFIT INFORMATION - PacifiCare agrees to apprise all Subscribers
concerning the type, scope and duration of benefits and services to which such
person is entitled under the PacifiCare Health Plan.

         4.03 ASSIST IPA - PacifiCare agrees to assist and cooperate with IPA in
the development and initial implementation of procedures necessary to carry out
the intent of this Agreement.

         4.04 ADMINISTRATION OF PAYMENTS - PacifiCare agrees to transmit
Capitation Payments and other payments to IPA in accordance with the terms and
procedures set forth in this Agreement.

         4.05 STATISTICAL INFORMATION AND PROVISION OF DATA - PacifiCare agrees
to provide IPA with management information and data reasonably necessary to
carry out the terms and conditions of this Agreement and for the operation of
the PacifiCare Health Plan including semi-monthly Eligibility Lists and monthly
capitation worksheets. Furthermore, PacifiCare shall provide, upon request,
quarterly reports reflecting the utilization of Health Care Services rendered by
IPA.

         4.06 SERVICES RENDERED TO INELIGIBLE SUBSCRIBERS -PacifiCare agrees to
reimburse IPA for those Medical Services set forth in Attachment A2 which were
provided to an ineligible Subscriber if the Subscriber was listed as eligible on
the most current Eligibility List provided to IPA by PacifiCare. if PacifiCare
is in receipt of a billing to such ineligible Subscriber from IPA and proof of
having sent the Subscriber or the Subscriber's legal guardian two (2) bills no
less than thirty (30) days apart, PacifiCare will reimburse IPA eighty percent
(80k) of IPA's ordinary and customary fee-for-service rates then in effect for
those Medical Services rendered but no greater than one hundred percent (look)
of the still uncollected balance. If subsequent to payment by PacifiCare, IPA
receives any payment from another source for the services, then IPA shall
reimburse PacifiCare up to the amount previously received from PacifiCare. If a
Subscriber becomes ineligible for benefits under the PacifiCare Health Plan
after IPA or Member Physicians have begun treatment of the Subscriber (provided
the Subscriber is not hospitalized at the time of becoming ineligible), IPA
shall be entitled to make all subsequent charges for its services directly to
the Subscriber. If the Subscriber is hospitalized at the time of becoming
ineligible, IPA shall be entitled to make charges directly to the Subscriber
only for services provided after the Subscriber is discharged from such hospital
treatment.

         4.07 DISSEMINATION OF INFORMATION - Except as provided above in Section
3.19, prior to listing or otherwise referencing IPA in any promotional or
advertising brochures, media announcements or other advertising marketing
material, PacifiCare

PRIME CARE                           18                      COMM PARTIAL RISK

<PAGE>

shall first obtain the prior consent of IPA, such consent to be unreasonably
withheld.

5.     COMPENSATION

         5.01 CAPITATION PAYMENTS - PacifiCare shall make monthly Capitation
Payments to IPA as outlined in Attachment C, due and payable on the tenth (10th)
day of the month for the current month's Medical Services.

         5.02 ADDITIONAL PAYMENTS - Pacificare and IPA agree to provide payments
to each other in accordance with the terms of the following programs, if
applicable: Hospital Control Program, Individual Stop-Loss Program, Pharmacy
Control Program, Mammography Reimbursement Program, and AIDs Stop-Loss Program
as specified in Attachments A5, A3, E, C, and F respectively, incorporated in
full herein by reference.

         To the extent that each party owes an amount to the other party in the
risk programs noted above, IPA agrees that PacifiCare shall combine the results
of all applicable risk programs such that one aggregate payment is payable to or
receivable from IPA. A fully detailed accounting of the results of each program
shall accompany the aggregate payment or notice of amount due.

         5.03 ADEQUACY OF COMPENSATION - IPA shall accept the payments specified
in this Agreement as payment in full for all Medical Services provided
Subscribers during each month for which such payments are to be received by IPA.
in the event PacifiCare fails to make any payments to IPA as provided herein,
whether from PacifiCare's insolvency or otherwise, Subscribers shall not be
liable to IPA or its Member Physicians under any circumstances for Health Care
Services. Surcharges for Health Care Services provided or arranged by IPA or
Member Physicians are prohibited; upon notice of the existence of any such
Surcharge, PacifiCare will take appropriate action consistent with the terms of
this Agreement to eliminate such Surcharges.

         5.04 REINSURANCE - The purpose of the reinsurance program described
herein is to limit IPA's risk for Hospital Services' under the Hospital Control
Program to a specified amount per Subscriber per Year (the "Reinsurance
Deductible") in return for a payment of a Reinsurance Premium. For the 1995
calendar year, the Reinsurance Deductible shall be zero Subscriber per Year and
the Reinsurance Premium shall equal zero percent (0%) of the Net Premium per
Subscriber per month. Notwithstanding Section 12.12, PacifiCare may amend the
Reinsurance Premium and Reinsurance Deductible on an annual basis effective each
January 1 by providing sixty (60) days prior written notice to IPA. (Does not
apply to this Agreement)

 PRIME CARE                         19                      COMM PARTIAL RISK

<PAGE>

         Reinsurance claims shall be calculated at the Cost of Care values as
set forth in Attachment A5, Sections 4a, 4b and 4c of this Agreement. (Does not
apply to this Agreement)

6.     TERM OF AGREEMENT

         6.01 TERM - The Initial Term of this Agreement shall be for twelve
months ("Initial Term") and the Commencement Date shall be January 1, 1995.
After the Initial Term, a "Year" under this Agreement shall begin on January 1st
and end on December 31st. The Term of this Agreement shall be automatically
extended for one (1) year on each successive January 1st thereafter unless
either party provides the other with written notice of such party's intention
not to extend the term no less than one hundred eighty (180) days prior to the
January 1 renewal date or until this Agreement is appropriately terminated by
either party as provided in Section 7 herein. Upon renewal of the Initial Term
and any subsequent term, the then applicable rates of compensation specified in
this Agreement shall apply unless otherwise agreed upon by the parties in
writing.

7.     TERMINATION

         7.01 TERMINATION OF AGREEMENT WITH MATERIAL CAUSE - Either party, as
appropriate, may terminate this Agreement for material cause as set forth in
Section 7.01.01 or 7.01.02 hereof subject to the notice and cure periods set out
in Section 7.02 hereof. In the event either party shall desire to so terminate
this Agreement, the terminating party shall give written notice of termination
stating the actions of the other party constituting material cause for
termination.

         7.01.01  CAUSE FOR TERMINATION OF AGREEMENT BY IPA - The following
shall constitute cause for termination of this Agreement by IPA:

         a. Non-Payment - Failure by PacifiCare to pay Capitation Payments due
to IPA hereunder within fifteen (15) days of the Capitation Payment due date or
failure by PacifiCare to make any other payments due to IPA hereunder within
forty-five (45) days of any such payment's due date.

         b. Revocation of Certification or License - Revocation by the State of
California or the United States Government of any certification or license of
PacifiCare necessary for the performance of this Agreement.

         c. Breach of Material Term and Failure to Cure - PacifiCare's breach of
any material term, covenant, or condition and subsequent failure to cure said
breach as provided in Section 7.02 hereof. The written notice of termination
shall

PRIME CARE                           20                      COMM PARTIAL RISK

<PAGE>

contain specific references as to the breaches which have caused such failure.

         7.01.02 CAUSE FOR TERMINATION OF AGREEMENT BY PACIFICARE, - The
following shall constitute cause or termination of this Agreement by PacifiCare:

         a. Financial Failure of IPA - PacifiCare's reasonable determination of
IPA's anticipated inability to provide or arrange for Health Care Services as
described herein due to the likelihood of IPA's lack of financial resources,
other than due to PacifiCare's non-payment of amounts due IPA hereunder. IPA
shall have the opportunity to dispute such determination by Pacificare by
providing reasonable evidence and assurances of financial stability and capacity
to perform under this Agreement.

         b. Failure to Provide Quality Medical Services - Failure to maintain
the standards set forth in Section 3.02 of this Agreement and such failure is
not corrected consistent with the provisions of Section 7.02. The written notice
of termination shall contain specific reference to the breaches which caused
such failure. PacifiCare reserves the right to withdraw from IPA all or part of
its Subscribers if the Health Care Services are not being properly provided or
arranged for pursuant to this Agreement and such deficiencies are not corrected
consistent with the provisions of Section 7.02 of this Agreement.

         c. Failure to Render Services - Failure to provide Health Care Services
to Subscribers as provided herein. The written notice of termination shall
contain specific reference as to the breaches which have caused such failure.

         d. Breach of Material Term and Failure to Cure - IPA's breach of any
material term, covenant or condition of the Agreement and subsequent failure to
cure said breach as provided in Section 7.02 of this Agreement. The written
notice of termination shall contain specific reference to the breaches which
have caused such failure.

         7.02 CURING PERIOD AND TERMINATION DATE - A party receiving written
notice of termination shall have thirty (30) days from the receipt of such
notice to cure or otherwise eliminate the circumstances constituting cause for
termination. If such party fails to cure or eliminate the circumstances
constituting cause for termination within a thirty (20) day period, this
Agreement shall terminate at the end of the thirty (30) day period.

         7.03 REPAYMENT UPON TERMINATION - Within one hundred eighty (180) days
of the effective date of termination of this Agreement as provided herein, an
accounting shall be made by PacifiCare of monies due and owing either party and
payment shall

PRIME CARE                         21                      COMM PARTIAL RISK

<PAGE>

be forthcoming by the appropriate party to settle such balance within thirty
(30) days of such accounting. Either party may request an independent audit of
such PacifiCare accounting by a mutually acceptable certified public accountant
and such audit shall be equally paid for by both parties. The parties agree to
abide by the findings of such independent audit and appropriate payment by the
appropriate party, if any, shall be made within thirty (30) days of such
independent audit.

         7.04 TERMINATION NOT AN EXCLUSIVE REMEDY - Any termination by either
party pursuant to this Section 7 is not meant as an exclusive remedy and such
terminating party may seek whatever action in law or equity as may be necessary
to enforce its rights under this Agreement.

8. RECORDS, DATA COLLECTION, CITATIONS AND RIGHT TO INSPECT RECORDS

         8.01 RECORDS - IPA shall maintain and provide such records and
information as reasonably necessary for PacifiCare to properly administer the
Secure Horizons Medical and Hospital Plan and consistent with state and federal
law. The duties imposed by this Section 8.01 shall not terminate upon
termination of this Agreement, whether by rescission or otherwise, and shall be
in effect until the completion of the phase-out period pursuant to Section 3.09.
The cost for preparation and submission of this data shall be borne solely by
IPA.

         IPA shall maintain records and provide such information to PacifiCare
or the California Commissioner of Corporations as may be necessary for the
compliance by PacifiCare with the provisions of state and federal law and
regulations promulgated thereto, and such records shall be retained by IPA for
at least two (2) years following the provision of Health Care Services. This
obligation is not terminated upon termination of this Agreement, whether by
rescission or otherwise.

         8.02 CONFIDENTIALITY OF RECORDS - IPA shall safeguard the
confidentiality of Subscriber health records and treatment in accordance with
all state and federal laws, including, without limitation, the Privacy Act, as
implemented by 45 Code of Federal Regulations 5(b) and the regulations
promulgated thereunder.

         8.03 DATA COLLECTION - IPA shall maintain and provide to PacifiCare, on
a timely basis, the utilization data more particularly described in the
PacifiCare Provider Policy and Procedures Manual for the effective management of
PacifiCare's health care delivery system. PacifiCare shall impose a penalty for
failure to submit such data, which was reasonably within the control of IPA to
submit, with ninety (90) days of the date of service by permanently withholding
one percent (1%) of IPA's monthly capitation for each month IPA fails to submit
such data.

PRIME CARE                         22                      COMM PARTIAL RISK

<PAGE>

         8.04 RIGHT TO INSPECT - IPA shall provide access at reasonable times
upon demand by PacifiCare, or any governmental regulatory agency responsible for
the administration of health care service plans, to inspect facilities,
equipment, books and records relating to the performance of this Agreement,
including, without limitation, Subscriber patient records, financial records
pertaining to the cost of operations and income received by IPA for Health Care
Services rendered to Subscribers.

         8.05 FINANCIAL STATEMENTS - IPA shall provide to PacifiCare within
forty five (45) days of the end of each calendar quarter copies of its quarterly
financial statements, which shall include a balance sheet, statement of income
and a statement of cash flow (the "financial statements") prepared in accordance
with generally-accepted accounting principles. Such quarterly statements shall
be certified by the chief financial officer of IPA as accurately reflecting the
financial condition of IPA for the period indicated. In addition, IPA shall
provide to PacifiCare, within forty five (45) days of the end of each calendar
year, copies of its audited annual financial statements.

         8.06 TRANSFER OF MEDICAL RECORDS UPON TERMINATION - Upon the effective
date of termination of this Agreement and, if applicable, upon the expiration of
the phase-out period set forth in Section 3.09, at PacifiCare's request, IPA
shall copy all active PacifiCare Subscriber patient medical files in IPA's
possession and forward such files to another provider of Health Care Services
designated by PacifiCare, provided such copying and forwarding is not otherwise
objected to by Subscribers. The copies of such medical files may be in summary
form. The cost of copying the patient medical files shall be borne by IPA. IPA
shall cooperate with PacifiCare in maintaining the confidentiality of such
confidential and proprietary information and trade secrets at all times.

9.     EXCLUSIVITY

         9.01 HOSPITAL EXCLUSIVE PROVIDER OR HOSPITAL SERVICES - In
recognition of the need for centralized coordination of Hospital Services to
Subscribers to ensure continuity and quality of care, IPA agrees, subject to the
limitations stated below, to require its individual physicians to use Hospital
as its exclusive provider of Hospital Services for all Subscribers eligible to
receive Hospital Services in the IPA Service Area. This exclusivity provision is
subject to the following exceptions:

         9.01.01 Emergency Services - Subscribers admitted for Emergency
Services through other hospitals, whether in or out of the IPA Service Area;

         9.01.02 Unavailable Hospital Services - Subscribers requiring
Hospital Services not available at Hospital, including

PRIME CARE                           23                      COMM PARTIAL RISK

<PAGE>

specialty Hospital services and those which cannot be provided due to ethical
principles of Hospital;

         9.01.03 Unauthorized Admissions - Unauthorized Subscriber admissions to
health care facilities within the IPA Service Area for Hospital Services;

         9.01.04 Subscriber Requests for Treatment at Other Facilities - IPA may
grant Subscriber requests for treatment or for transfer to another facility due
to Medical Necessity or impairment of the Hospital/Subscriber relationship. IPA
shall exercise reasonable efforts in discouraging such Subscriber requests
unless Subscriber can show just cause for such request. Prior to any transfer,
the IPA must deem the transfer to be medically safe.

         9.02 UTILIZATION OF IPA BY PACIFICARE - Nothing in this Agreement shall
be construed to require PacifiCare to assign any minimum or maximum number of
Subscribers to IPA, nor to require PacifiCare to utilize the Health Care
Services of IPA for any or all Subscribers in the IPA Service Area.

10. GOVERNING LAW AND DISPUTE RESOLUTION

         10.01 GOVERNING LAW - This Agreement and the rights and obligations of
the parties hereunder shall be construed, interpreted, and enforced in
accordance with, and governed by, the laws of the State of California, and the
United States and all regulations promulgated pursuant thereto. Any provisions
required to be in this Agreement by any of the above Acts and regulations shall
bind PacifiCare and IPA whether or not expressly provided in this Agreement.

         10.02 DISPUTES BETWEEN IPA AND SUBSCRIBER NOT GOVERNED BY AGREEMENT -
Any controversies or claims between IPA and Subscriber arising out of IPA's
performance of this Agreement are not governed by this Agreement. IPA and
Subscriber may seek any appropriate legal action to resolve such controversy or
claim deemed necessary.

         In the event of dispute between IPA and a Subscriber and upon mutual
agreement between IPA and such Subscriber, PacifiCare agrees to make available
the Subscriber Grievance Resolution Process described in the PacifiCare Health
Plan Agreement for resolution of such dispute. In such instance, the decision of
the PacifiCare Subscriber Satisfaction Committee and Board of Directors shall
not he binding upon the parties except upon agreement between IPA and the
Subscriber. Nor shall such grievance be subject to binding arbitration except
upon agreement between the parties. Should IPA and Subscriber fail to resolve
the grievance, IPA and Subscriber may seek any appropriate legal action deemed
necessary by such party.

PRIME CARE                         24                      COMM PARTIAL RISK

<PAGE>

         10.03 PAYMENT DISPUTES BETWEEN IPA AND SPECIALIST PHYSICIANS - In the
event IPA fails to make a payment to a Specialist Physician within sixty (60)
days of the submission of the bill by Specialist Physician to IPA and the
validity and the amount of the submitted bill are undisputed, PacifiCare may, in
its sole and absolute discretion, elect to pay the Specialist Physician on
behalf of IPA and deduct such payment from IPA a next monthly Capitation
Payment.

         Should a dispute concerning a claim for payment for Medical Services
rendered to Subscribers arise between IPA and a Specialist Physician who is a
Participating Medical Provider, IPA or the Specialist Physician, may submit a
written complaint to PacifiCare. The complaint shall describe the disputed claim
and the basis for the amounts claimed and include the applicable written
agreement between IPA and the Specialist Physician. PacifiCare shall investigate
the complaint and make a determination of the whether or not the claim is valid
and should be paid. In the event PacifiCare determines that IPA owes any amount
to Specialist Physician, IPA shall make such payment within thirty (30) days of
PacifiCare's determination. If IPA fails to pay the amount due within this
thirty (30) day period, PacifiCare may deduct the amount owed from IPA's next
monthly capitation payment. This amount will temporarily be placed in an account
(the "Claims Dispute Account") which shall be established by PacifiCare. If IPA
or Specialist Physician wishes to contest PacifiCare's determination, either may
do so by initiating an action for binding arbitration and notifying PacifiCare
of such initiation within thirty (30) days of PacifiCare's determination. If IPA
or Specialist Physician fails to request arbitration within thirty (30) days or
if the arbitration affirms PacifiCare's decision that amounts are owing from IPA
to Specialist Physician, PacifiCare shall release from the Claims Dispute
Account the amount owing the Specialist. If the arbitration results in a
decision that no money or a lesser amount than was determined by PacifiCare is
owing to Specialist Physician, PacifiCare shall release to IPA the amounts which
were erroneously withheld from IPA's Capitation Payment.

         In the event this Agreement has been terminated prior to PacifiCare's
investigation and written determination and PacifiCare's investigation results
in a determination that IPA owes money to Specialist Physician, PacifiCare may,
in its sole and absolute discretion, elect to pay Specialist Physician on behalf
of IPA and seek reimbursement from IPA through arbitration as described in this
section,

         10.04 - PAYMENT DISPUTES BETWEEN HOSPITAL AND IPA - in the event of a
dispute between Hospital and IPA concerning amounts due or owing under the
Hospital Control Program or as the result of an alleged breach of the exclusive
referral arrangement set forth in Section 9 above, Hospital or IPA may submit a
written

PRIME CARE                           25                      COMM PARTIAL RISK

<PAGE>

complaint to PacifiCare. The complaint shall describe the disputed claim and the
basis for the amounts claimed. PacifiCare shall investigate the complaint and
make a written determination of whether or not the claim is valid and should be
paid. IPA and Hospital shall cooperate with PacifiCare's investigation by
providing in a timely manner all information reasonably requested by PacifiCare.

         In the event PacifiCare determines that IPA owes any amount to Hospital
or Hospital owes any amount to IPA, the owing party shall make the appropriate
payment within thirty (30) days of PacifiCare's written determination. If the
owing party fails to pay the amount due within this thirty (30) day period,
PacifiCare may deduct the amount owed from the owing party's next monthly
Capitation Payment. This amount will temporarily be placed in an account (the
"Claims Dispute Account") which shall be established by PacifiCare. If IPA or
Hospital wish to contest PacifiCare Is written determination, either may do so
by initiating an action for binding arbitration and notifying PacifiCare of such
initiation within thirty (30) days of PacifiCare's determination. IF IPA or
Hospital fails to request arbitration within thirty (30) days or if the
arbitration affirms PacifiCare's decision, PacifiCare shall release from the
Claims Dispute Account the amount owing to the appropriate party as initially
determined by PacifiCare. If the arbitration results in a decision that no money
or a lesser amount than was determined by PacifiCare is owing to either Hospital
or IPA, PacifiCare shall release to IPA and/or Hospital the amounts owing each
party as determined by the arbitration.

11. NOTICE

         11.01 NOTICE - Any notice required to be given hereunder shall be in
writing either delivered personally or sent by registered or certified mail,
return receipt requested, to either PacifiCare or IPA at the addresses listed
below, or at such other addresses as either PacifiCare or IPA may hereafter
designate to the other:

         To PacifiCare:             P.O. Box 6006
                                    Cypress, CA 90630-0006
         ATTENTION:                 PRESIDENT

         To Hospital:               Desert Valley Hospital, Inc.
                                    16850 Bear Valley Road
                                    Victorville, CA 92392
         ATTENTION:                 Administration

         To IPA:.                   Prime Care Medical Group of
                                    Chino Valley
                                    1915 West Redlands, Blvd Ste 111
                                    Redlands, CA 92373-8050
         ATTENTION:                 Administration

PRIME CARE                           26                      COMM PARTIAL RISK

<PAGE>

         All notices shall be deemed given on the date of delivery if delivered
personally or on the day three (3) business days after such notice is deposited
in the United States mails, addressed and sent as provided above.

12. MISCELLANEOUS

         12.01 PROTECTION OF SUBSCRIBER - IPA may not impose any limitations on
the acceptance of Subscribers for care or treatment that it does not impose on
other patients of the IPA. Neither PacifiCare, IPA nor Hospitals may request,
demand, require or seek directly or indirectly the transfer, discharge, or
removal of any Subscriber for reasons of Subscriber's need for, or utilization
of, Medically Necessary Health Care Services, except in accordance with the
procedures established for such action. IPA shall not refuse or fail to provide
Medically Necessary Health Care Services to any Subscriber. Procedures for
removal, discharge or transfer of Subscribers shall be mutually agreed upon
between IPA and PacifiCare consistent with the PacifiCare Health Plan.

         12.02 OTHER AGREEMENTS - Nothing in this Agreement shall prevent
PacifiCare and IPA from contracting with each other for provision of services
not covered by this Agreement.

         12.03 GOVERNING LAW - PacifiCare, IPA and this Agreement are subject to
the laws of the State of California and the United States of America,
specifically: the California Knox-Keene Act and the regulations promulgated
thereunder by the California Department of Corporations, and the Health
Maintenance organization Act of 1973 and the regulations promulgated thereunder
by the United States Department of Health and Human Services.

         IPA shall maintain such records and provide such information to
PacifiCare or the California Commissioner of Corporations as may be necessary
for the compliance by PacifiCare with the provisions of the above Acts and
regulations, and such records shall be retained by IPA for at least two (2)
years following the provision of Health Care Services. This obligation is not
terminated upon termination of this Agreement, whether by rescission or
otherwise.

         Any provisions required to be in this Agreement by any of the above
Acts and regulations shall bind PacifiCare and IPA whether or not expressly
provided in this Agreement.

         12.04 REFUSAL BY PHYSICIAN - If IPA or any of its Member Physicians
refuses Health Care Services to a Subscriber assigned to IPA for any reason
whatsoever, it shall remain the

PRIME CARE                         27                      COMM PARTIAL RISK

<PAGE>

responsibility of IPA to assure that such Subscribers receives Health Care
Services consistent with the terms of this Agreement.

         12.05 CONFIDENTIAL AND PROPRIETARY INFORMATION

         12.05.01 Information Confidential and Proprietary to PacifiCare - IPA
acknowledges that all PacifiCare Subscribers participating in a PacifiCare
Health Plan individually or through an employer group and receiving Health Care
Services shall be Subscribers of PacifiCare. Subscriber and employer group
information shall include, without limitation, the names, addresses and
telephone numbers of all Subscribers, the names, addresses and telephone numbers
of employer group employees responsible for health benefits and the officers
and directors of such employer groups; member, employer and administrative
service manuals and all forms related thereto; and records, files (other than
patient medical files) and lists contained in IPA and PacifiCare files.

         IPA acknowledges that all such information is confidential and
proprietary to PacifiCare and that such Subscriber and employer group
information contains valuable trade secrets of PacifiCare.

         All PacifiCare Subscriber agreements and the information contained
therein regarding PacifiCare, IPA, employer groups, Subscribers or the financial
arrangements between a hospital, IPA and PacifiCare is confidential and
proprietary to PacifiCare.

         IPA shall maintain all Subscriber information and other PacifiCare
trade secret information confidential. IPA shall not disclose or use any
confidential and proprietary information for its own benefit or gain either
during the term of this Agreement or after the date of termination of this
Agreement; provided, however, that IPA may use the name, address and telephone
number or other medical information of a PacifiCare Subscriber if Medically
Necessary for the proper treatment of such Subscriber or upon express prior
written permission of PacifiCare.

         Upon the effective date of termination of this Agreement and, if
applicable, upon the expiration of the phase-out period set forth in Section
3.09, IPA shall provide and return to PacifiCare all confidential and
proprietary information and trade secrets in its possession in a reasonable
manner to he specified by PacifiCare.

         12.05.02 Information Confidential and Proprietary to IPA - IPA shall
provide PacifiCare with a written description of all information proprietary to
IPA which is confidential and contains trade secrets of IPA ("IPA Information").
PacifiCare

PRIME CARE                          28                      COMM PARTIAL RISK

<PAGE>

shall maintain IPA Information confidential. PacifiCare shall not disclose or
use any IPA Information for its own benefit either during the term of this
Agreement or after the effective date of termination of this Agreement. Upon
termination of this Agreement, PacifiCare shall provide and return to IPA all
IPA Information in its possession in a manner to be specified by IPA. PacifiCare
shall cooperate with IPA in maintaining the confidentiality of IPA Information
at all times.

         12.05.03 Solicitation of PacifiCare Subscribers or Employer Groups -
IPA shall not directly or indirectly engage in the practice of solicitation or
the patronage of PacifiCare's Subscribers or employer groups without
PacifiCare's prior written consent. Solicitation shall mean conduct by an
office, agent, employee or Member Physician of IPA or its assignee or successor
during the initial Term or any subsequent term of this Agreement and continuing
for a period of one (1) year after the effective date of termination of this
Agreement which may be reasonably interpreted as designed to persuade PacifiCare
Subscribers or employer groups to discontinue their Subscriber or group
agreements with PacifiCare or to continue to receive Health Care Services from
IPA on a fee-for-service basis or to encourage PacifiCare Subscribers or
employer groups to participate in the prepaid health service plan offered by
IPA, or any other prepaid health service plan (the "Solicitation"). The breach
of this Section 12.05.03 during any term of this Agreement shall be grounds for
termination of this Agreement pursuant to section 7.01.02 of this Agreement,
IPA's provision of executive physicals and provision of Health Care Services
pursuant to industrial medicine contracts shall not be in violation of this
Section 12.05.03.

         12.06 CONFIDENTIALITY OF THIS AGREEMENT - To the extent reasonably
possible, each party agrees to maintain this Agreement as a confidential
document and not to disclose the Agreement or any of its terms without the
approval of the other party.

         12.07 ASSIGNMENT - This Agreement and the rights, interests and
benefits hereunder shall not be assigned, transferred, pledged, or hypothecated
in any way by IPA or PacifiCare and shall not be subject to execution,
attachment or similar process, nor shall the duties imposed herein be
subcontracted or delegated without the written consent other party.
Notwithstanding, PacifiCare may assign, transfer, pledge or hypothecate this
Agreement and its rights, interests and benefits hereunder to any entity of
which PacifiCare has at least majority control.

         12.08 INVALIDITY OF SECTIONS OF THIS AGREEMENT - The unenforceability
or invalidity of any paragraph or subparagraph of

PRIME CARE                         29                       COMM PARTIAL RISK

<PAGE>

any section or subsection of this Agreement shall not affect the enforceability
and validity of the balance of this Agreement.

         12.09 WITHDRAWAL OF SUBSCRIBERS BY PACIFICARE - PacifiCare reserves the
right to withdraw from IPA all or part of the Subscribers from IPA whose Health
Care Services are not being properly provided pursuant to this Agreement.
PacifiCare shall provide written notice to IPA of such withdrawal and the
reasons therefore. PacifiCare shall then allow IPA thirty (30) days from the
date of such notice to correct deficiencies. If such deficiencies are not
corrected to PacifiCare's satisfaction within said period, PacifiCare may
withdraw its Subscribers as provided in this Section 12.09 and remove IPA's name
from PacifiCare's marketing materials.

         12.10 TRANSFER OF SUBSCRIBERS - Subscribers requests for transfer from
IPA shall be in writing and subject to approval by PacifiCare based on the
criteria set forth in the PacifiCare Policy and Procedures Manual. PacifiCare
reserves the right to transfer a Subscriber for any reason.

         IPA may request transfer of Subscribers for cause, or if the capacity
of IPA is over burdened such that the provision of Medical Services as required
pursuant to this Agreement adversely is affected.

         12.11 CAPTIONS - Captions in this Agreement are descriptive only and do
not affect the intent or interpretation of the Agreement.

         12.12 AMENDMENT - This Agreement may be amended or modified only by
mutual written consent of the parties. Notwithstanding the foregoing sentence,
PacifiCare may amend this Agreement upon sixty (60) days written notice to IPA
in order to maintain compliance with applicable federal and state laws. Any such
amendment which affects a legally required duty or responsibility of IPA and has
a material adverse economic affect upon IPA as reasonably demonstrated by IPA to
PacifiCare, shall be subject to the provisions of Section 12.13 below.

         12.13 MODIFICATIONS OF THIS AGREEMENT AND/OR PACIFICARE PROVIDER AND
PROCEDURES MANUAL AND/OR PACIFICARE HEALTH PLAN - Anything to the contrary
herein notwithstanding, in the event of any material modification of this
Agreement and/or the PacifiCare Provider and Procedures Manual and/or the
PacifiCare Health Plan that (i) affects a material duty or responsibility of
IPA, and (ii) causes a material economic detriment to IPA. IPA and PacifiCare
shall seek to agree to an amendment to this Agreement which satisfactorily
addresses the effect on IPA's material duty or responsibility and reimburses the
material economic detriment caused to IPA. In the event such an agreement cannot
be reached within sixty (60) days after the date PacifiCare

PRIME CARE                          30                      COMM PARTIAL RISK

<PAGE>

gives IPA written notice of such modification, such modification shall not be
effective.

         12.14 TERMS; SECTIONS - Unless otherwise indicated, all terms in any
appropriate attachments, addendums and amendments hereto shall have the same
meaning attributed to such terms in the body of this Agreement and reference to
section numbers are to the appropriate sections of this Agreement.

         12.15 IPA'S AUTHORIZED REPRESENTATIVE - Unless otherwise indicated in
writing to PacifiCare, IPA warrants and authorizes its administrator to act as
its fully authorized representative to represent IPA and Member Physicians in
this Agreement and to receive any and all communications and notices hereunder.

         12.16 ATTORNEYS' FEES AND COSTS - If any action at law or suit in
equity is brought to enforce or interpret the provisions of this Agreement or to
collect any monies due hereunder, the prevailing party shall be entitled to
reasonable attorneys' fees and reasonable costs, together with interest the one
at the highest rate provided by law, in addition to any and all other relief to
which it may otherwise be entitled.

PRIME CARE                             31                      COMM PARTIAL RISK

<PAGE>

               IN WITNESS WHEREOF, the parties hereto have executed this
 Agreement in ___________________, California, on ______________, 19_____.

                           PACIFICARE OF CALIFORNIA

                             By: /s/
                                ---------------------------------------
                           Title:

                           IPA

                            By:  /s/
                                ---------------------------------------
                           Title: President

PRIME CARE                         32                      COMM PARTIAL RISK
<PAGE>

                                   Schedule 1

This contract is a representative example of the following substantially similar
contracts to which subsidiaries of the Company and Pacificare are parties.
Pursuant to Instruction 2 of Item 601 of Regulation S-K, the Company is listing
the names of the additional contracts.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Chino Valley, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Corona, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Hemet Valley, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Inland Valley, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Moreno Valley, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Redlands, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Riverside, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Sun City, Inc.

IPA Commercial Risk Services Agreement Between Pacificare of California and
Prime Care Medical Group of Temecula, Inc.<PAGE>

                                                                 EXHIBIT 10.3

                  IPA MEDICARE PARTIAL RISK SERVICES AGREEMENT

                                     BETWEEN

                            PACIFICARE OF CALIFORNIA

                                       AND

                    PRIME CARE MEDICAL GROUP OF CHINO VALLEY
<PAGE>

                                   PACIFICARE
                  IPA MEDICARE PARTIAL RISK SERVICES AGREEMENT

         THIS IPA MEDICARE PARTIAL RISK SERVICES AGREEMENT is made and entered
into this first day of January, 1995, by and between PACIFICARE OF CALIFORNIA
("PacifiCare"), a California corporation, and Prime Care Medical Group of Chino
Valley, ("IPA"), a California corporation, with reference to the following
facts:

         A.       PacifiCare operates a prepaid health service plan which
arranges for certain Medical Services to be provided to persons eligible to
receive benefits who are enrolled as subscribers in the Secure Horizons Medical
and Hospital Plan in a manner consistent with the laws of the United States and
the State of California.

         B.       PacifiCare desires to provide a quality direct service prepaid
health delivery system which maximizes the utilization of innovative methods to
promote the efficient, economical delivery of health care, and to develop and
implement programs of health education and health maintenance for its
Subscribers.

         C.       Pacificare has a contract with the Health Care Financing
Administration ("HCFA") of the United States Government to provide Medicare
benefits to eligible persons.

         D.       IPA has as its primary objective the delivery of health
services through agreements and active participation with medical groups and/or
clinics and their physicians, and other related health professionals and
technicians, all of which are licensed in the State of California.

         E.       IPA and its Member Physicians desire to participate in the
Secure Horizons Medical and Hospital Plan by arranging for or providing Medical
Services in coordination with PacifiCare, its Subscribers and participating
hospitals on a prepaid basis.

         F.       PacifiCare and IPA, on behalf of IPA and its Member
Physicians, deem it in their best interests to enter into a renewable Agreement,
whereby IPA agrees to provide or arrange for ("provide") Medical Services to
Pacificare Subscribers enrolled in the Secure Horizons Medical and Hospital Plan
in the IPA Service Area.

NOW THEREFORE, it is agreed as follows:

1.       DEFINITIONS

         Whenever used in this Agreement, the following terms shall have the
definitions contained in this Section 1:

         1.01     AGREEMENT - is this PacifiCare IPA Medicare Partial

PRIME CARE                             1                   MEDICARE PARTIAL RISK
<PAGE>

Risk Services Agreement, dated as stated above, and all attachments, addendums
and amendments hereto.

         1.02     CAPITATION PAYMENTS - are payments made to IPA by PacifiCare
on a prepaid basis for the Medical Services to be provided under this Agreement.

         1.03     CATASTROPHIC CASE - is any single medical condition, including
complications arising from such medical condition, where the total cost of
Health Care Services to treat such condition is expected to exceed fifty
thousand dollars ($50,000) per condition, regardless of payment source.

         1.04     CONFORMANCE REQUEST - is a written request made by PacifiCare
to IPA to correct the performance of an IPA Member Physician or Specialist
Physician to conform to the provisions of this Agreement.

         1.05     COPAYMENTS - are charges pursuant to the Secure Horizons
Medical and Hospital Plan which may be charged to the Subscriber by IPA at the
time of the provision of Medical Services which are in addition to the
Capitation Payments made to IPA by PacifiCare.

         1.06     COST OF CARE - is the value of Medical Services as defined in
this Agreement and as calculated pursuant to the formula set forth in Attachment
A4, incorporated in full herein by reference.

         1.07     ELIGIBILITY LIST - is a list of Subscribers to whom IPA shall
provide Medical Services.

         1.08     EMERGENCY SERVICES - are those Medical Services that are
provided for the treatment of acute injury or illness requiring immediate
medical attention and which threaten life or limb, or which involve
uncontrollable bleeding, or loss of consciousness, or which cannot be delayed
without possible serious effects on the health of the Subscriber.

         1.09     HCFA - is the Health Care Financing Administration, an
administrative agency of the United States Government.

         1.10     HOSPITAL - is an acute care facility located in the IPA
Service Area licensed as an acute care hospital under the laws of the State of
California and which has entered into a written agreement with PacifiCare to
provide Hospital Services to Subscribers. For the purpose of this Agreement,
Hospital shall initially include Desert Valley Hospital, Inc., an acute care
licensed hospital located at 16850 Bear Valley Road, Victorville, California
92392. IPA shall coordinate the provision of Hospital Services to Subscribers
with Hospital pursuant to the terms of this Agreement.

PRIME CARE                             2                   MEDICARE PARTIAL RISK
<PAGE>

         1.11     HOSPITAL DAY - is any period up to twenty-four (24 hours
commencing at 12:00 a.m. or 12 p.m., whichever is used by Hospital, during which
a Subscriber is eligible to receive Hospital Services and actually receives
Hospital Services from Hospital.

         1.12     HOSPITAL SERVICES - are the Medical Services described in
Attachment Al, incorporated in full herein by reference, which Hospital and
other providers shall provide to Subscribers pursuant to the Secure Horizons
Medical and Hospital Plan.

         1.13     IPA - is the medical group or independent practice
association identified in the first paragraph of this Agreement and its Member
Physicians, all of whom are licensed to practice medicine or osteopathy in the
State of California at the IPA Facilities.

         1.14     IPA FACILITIES - are those facilities whose locations are
listed in Attachment F, attached hereto and incorporated in full herein by
reference, where Medical Services shall be available to Subscribers pursuant to
this Agreement.

         1.15     IPA SERVICE AREA - is the geographical area within a thirty
(30) mile radius of each IPA Facility. The thirty (30) mile radius commences
with the address of an IPA Facility and extend for thirty (30) miles over the
shortest route using public street and highways.

         1.16     MEDICAL SERVICES - are all authorized health care services to
which Subscribers are entitled under the Secure Horizons Medical and Hospital
Plan, some of which, excluding Hospital Services, are summarized in Attachment
A2, incorporated in full herein by reference.

         1.17     MEDICALLY NECESSARY SERVICES - are Medical Services which are
required by Subscriber as determined by IPA in accordance with accepted medical
and surgical practices and standards in the community and the professional
standards recommended by PacifiCare's Quality Assurance Committee and IPA's
Utilization Review Committee.

         1.18     MEMBER PHYSICIANS - are physicians, surgeons and osteopaths,
licensed to practice medicine in the State of California, who have an ownership
interest in, are employed by, or contract with, IPA.

         1.19     MONTHLY HCFA PAYMENT - is the revenue received by PacifiCare
each month from HCFA, as determined by HCFA, for the Medical and Hospital
Services each Subscriber is to be provided minus any Benefit Withhold.

PRIME CARE                             3                   MEDICARE PARTIAL RISK
<PAGE>

         1.20     OUTSIDE PROVIDERS - are licensed physicians, surgeons,
osteopaths, paramedical personnel, hospitals and other health care facilities
which provide Medical Services to Subscribers eligible to receive benefits under
the Secure Horizons Medical and Hospital Plan but which do not have written
agreements with IPA or Hospital and which are not Specialist Physicians.

         1.21     PARTICIPATING MEDICAL GROUP - includes IPA and its Member
Physicians and is any group of duly-licensed doctors of medicine or osteopathy
which has entered into a written agreement with PacifiCare to provide Medical
Services to Subscribers in conjunction with the Secure Horizons Medical and
Hospital Plan.

         1.22     PRO PROGRAM - is the provider utilization review program
developed by HCFA for providers of Medical Services.

         1.23     QUALITY ASSURANCE COMMITTEES - are committees separately
established by IPA and PacifiCare which shall separately establish, maintain and
perform quality assurance review of Medical Services provided to Subscribers as
reasonably required by PacifiCare, the State of California, the Department of
Corporations or Health and Human Services, HCFA, the Office of Qualification and
Compliance, or any other governmental agencies with regulatory or enforcement
jurisdiction over PacifiCare or this Agreement.

         1.24     RISK REIMBURSEMENT PLAN - is PacifiCare's Medicare Medical and
Hospital Services Plan under which PacifiCare Contracts with Medicare to be
reimbursed on a per capita basis for each class of Medicare beneficiary enrolled
in the plan.

         1.25     SECURE HORIZONS MEDICAL AND HOSPITAL PLAN - is the prepaid
health services plan offered by PacifiCare as described in the Secure Horizons
Medical and Hospital Subscriber Agreement, and attachments, addendums and
amendments thereto, a copy of which is attached hereto as Attachment B and
incorporated in full herein by reference.

         1.26     SPECIALIST PHYSICIANS - are physicians who have written
agreements with IPA to provide Medical Services to Subscribers on a referral
basis and who do provide such Medical Services at offices or facilities which
are not IPA Facilities.

         1.27     SUBSCRIBER - is an individual who is enrolled in the Secure
Horizons Medical and Hospital Plan, who meets all the eligibility requirements
for membership in such plan and for whom all applicable Subscriber Premiums have
been paid and received by PacifiCare.

         1.28     SUBSCRIBER PREMIUMS - are charges pursuant to the Secure
Horizons Medical and Hospital Plan which, if applicable, are required to be paid
by Subscribers to PacifiCare on a monthly basis in order for Subscribers to
receive Medical Services.

PRIME CARE                             4                   MEDICARE PARTIAL RISK
<PAGE>

         1.29     SURCHARGES - are additional fees not disclosed to the
Subscriber for Medical Services and which are not allowable Copayment charges.

         1.30     URGENTLY NEEDED SERVICES - are Medical Services which are
required without delay, in order to prevent serious deterioration of
Subscriber's health as the result of an unforeseen illness or injury while the
Subscriber is temporarily absent from the IPA Service Area.

         1.31     UTILIZATION REVIEW COMMITTEE - is an IPA committee of at least
three (3) Member Physicians which is established and maintained, in accordance
with the provisions of Section 3.13 herein, to develop a utilization control
program outlining procedures for the efficient use of resources, consistent with
state and federal law, for the rendition of Medical Services. The Utilization
Review Committee shall review elective Referrals and hospital admissions on a
concurrent and prospective basis and Emergency Services, Urgently Needed
Services and hospital admissions on a retrospective basis.

         1.32     BENEFIT WITHHOLD - is the portion of the HCFA revenue received
and retained by PacifiCare each month as outlined in Paragraph 5, which is
earmarked for provision of benefits to Subscribers which are offered in addition
to Medical Services and Hospital Services.

2.       RELATIONSHIP OF PARTIES

         2.01     IPA PARTICIPATION - The execution of this Agreement shall
qualify IPA to participate in the rendition of Medical Services to Subscribers
pursuant to the terms of the Secure Horizons Medical and Hospital Plan, as
amended from time to time. Subject to Section 12.11 herein, PacifiCare shall
notify IPA of any material amendments to the Secure Horizons Medical and
Hospital Plan, which amendments shall become effective upon thirty (30) days
written notice by PacifiCare to IPA, and IPA has not objected to PacifiCare in
writing within the thirty (30) day period to be bound by such amendments. IPA
approval of such amendments shall not be unreasonably withheld. If IPA does
provide PacifiCare reasonable written objection to be bound by such amendments
within the thirty (30) day period, such amendments to the Secure Horizons
Medical and Hospital Plan shall have no force or effect on IPA.

         2.02     LIABILITY FOR OBLIGATIONS - Notwithstanding any other section
or provision of this Agreement, nothing contained herein shall cause either
party to be liable or responsible for any debt, liability, or obligation of the
other party or any third party, unless such liability or responsibility is
expressly assumed by the party sought to be charged therewith. Each party shall
be solely responsible for and shall indemnify and hold the other party

PRIME CARE                             5                   MEDICARE PARTIAL RISK
<PAGE>

harmless against any obligation for the payment of wages, salaries or other
compensation (including all state, federal and local taxes and mandatory
employee benefits), insurance and voluntary employment-related or other
contractual or fringe benefits as may be due or payable by the party to or on
behalf of such party's employees, agents and representatives.

         2.03     INDEPENDENT CONTRACTOR - The relationship between PacifiCare
and IPA is an independent contractor relationship. Neither IPA nor members,
partners, employees or agents of IPA are employees or agents of PacifiCare and
neither PacifiCare nor any employee or agent of PacifiCare is a member, partner,
employee or agent of IPA. As such, all medical decisions are rendered solely by
IPA and not by PacifiCare. IPA is solely responsible for all Medical Services
arranged by IPA and provided to Subscribers. None of the provisions of this
Agreement shall be construed to create a relationship of agency, representation,
joint venture, ownership, control of employment between the parties other than
that of independent parties contracting solely for the purposes of effectuating
this Agreement.

         2.04     DUTY TO DEFEND AND INDEMNIFY - To the extent not covered by
insurance maintained by PacifiCare, whether because of liability in excess of
the policy limits or because of the occurrence of a non-insured event, IPA shall
defend, indemnify and hold harmless PacifiCare from and against any claim, loss,
damage, cost, expense or liability arising out of or related to the performance
or nonperformance by IPA, its Specialist Physicians or employees of any Medical
Services to be performed or arranged by IPA under this Agreement. It is
understood and agreed by PacifiCare that the foregoing indemnification
obligation is in no way whatsoever intended to reduce or eliminate any
insurance coverage maintained by IPA and that PacifiCare shall be entitled to
indemnification from IPA only for claims, losses, damages, costs, expenses or
liabilities in excess of the applicable insurance policy limits or arising from
uninsured events or occurrences.

         To the extent not covered by insurance maintained by IPA, whether
because of liability in excess of the policy limits or because of the occurrence
of a non-insured event, PacifiCare shall defend, indemnify and hold harmless IPA
from and against any claim, loss, damage, cost, expense or liability arising out
of or related to the performance or nonperformance of PacifiCare, its employees
or agents of any service to be performed or provided by PacifiCare under this
Agreement. It is understood and agreed by IPA that the foregoing indemnification
obligation is in no way whatsoever intended to reduce or eliminate any insurance
coverage maintained by PacifiCare and that IPA shall be entitled to
indemnification from PacifiCare only for claims, losses, damages, costs,
expenses or liabilities in excess of the applicable insurance policy limits or
arising from uninsured events or occurrences.

3.       DUTIES OF IPA

PRIME CARE                             6                   MEDICARE PARTIAL RISK
<PAGE>

         3.01     IPA RESPONSIBILITIES - IPA agrees to arrange for or provide
Medical Services twenty-four (24) hours a day in coordination with PacifiCare
and with Hospital and other providers, as necessary, for each Subscriber who has
designated IPA as his or her Participating Medical Group. IPA shall be
financially responsible for all Medical Services specified in Attachment A2,
incorporated in full herein by reference, provided to Subscribers for whom IPA
is to receive a Monthly Capitation Payment from PacifiCare based upon the
PacifiCare provided Eligibility List. IPA shall be responsible for determining
whether Subscribers are eligible for Medical Services on the basis of the most
current Eligibility List supplied to IPA by PacifiCare. Updated eligibility
information shall be available from PacifiCare as needed on the basis of the
most current information supplied PacifiCare by HCFA.

         3.02     STANDARDS - All Medical Services arranged for or provided by
IPA and its Member Physicians shall be provided by professional personnel and at
physical facilities according to generally accepted standards of medical
practice and management in the community. IPA further agrees to provide or
arrange for Referrals to Specialist Physicians and facilities as are necessary,
appropriate, and in accordance with generally accepted standards of medical
practice in the community in compliance with the standards developed by
PacifiCare's Quality Assurance Committee. If IPA contracts with Specialist
Physicians to provide Medical Services under this Agreement, IPA shall require
such Specialist Physicians to provide IPA with the credentialing information set
forth herein. IPA shall obtain and maintain information concerning each Member
Physician's and Specialist Physician's education, training, references,
malpractice liability insurance, hospital staff status, hospital clinical
privileges, and hospital staff reappointment dates. Such information shall be
kept in a form prescribed by or acceptable to PacifiCare. Upon request, the
credentialing information shall be made available to PacifiCare for review or
copying.

         IPA acknowledges and agrees that it shall report Member Physicians or
Specialist Physicians as required by the California Business and Professions
Code Section 805 ("Section 805"). IPA further agrees to maintain and
demonstrate to PacifiCare upon request compliance with the following:

                  3.02.01  IPA shall ensure that its Member Physicians and
Specialist Physicians are licensed by the State of California and have current
Drug Enforcement Agency ("DEA") registration. IPA shall immediately notify
PacifiCare in writing of any of the following actions taken by or against a
Member Physician or Specialist Physician: (i) the surrendering, revocation, or
suspension of a license; (ii) the surrendering, revocations, or suspension of
current DEA registration; (iii) any filing pursuant to Section 805; (iv) any
filing pursuant to the National Practitioner Data Bank; (v) the filing of any
malpractice claim of

PRIME CARE                             7                   MEDICARE PARTIAL RISK
<PAGE>

more than ten thousand dollars ($10,000); and (vi) a change in hospital staff
status or hospital clinical privileges, including any restrictions or
limitations.

                  If IPA fails to obtain and maintain the information set forth
in Paragraph 3.02 or fails to immediately notify PacifiCare as set forth in this
Paragraph 3.02.01, IPA shall indemnify and hold harmless PacifiCare from and
against any claim, loss, damage, cost, expense or liability arising out of or
related to such nonperformance by IPA, its Member Physicians, Specialist
Physicians or employees.

                  3.02.02  In the event that it is determined by PacifiCare that
IPA does not obtain and maintain the information set forth in paragraph 3.02,
IPA agrees to assist PacifiCare in obtaining credentialing information
concerning each Member Physician's and Specialist Physician's education,
training, references, malpractice liability insurance, hospital staff status,
hospital clinical privileges, and hospital staff reappointment dates. IPA shall
obtain from each Member Physician and Specialist Physician a signed waiver,
acceptable to PacifiCare, allowing PacifiCare access to such credentialing
information at any acute care hospital or health care facility. If IPA is unable
to obtain a signed waiver from a Member Physician or Specialist Physician, IPA
shall obtain the credentialing information directly from the acute care hospital
or health care facility and make such information available to PacifiCare upon
request for review and copying.

                  3.02.03  IPA agrees to provide access to continuing education
programs for its Member Physicians and Specialist Physicians in accordance with
the standards established by the California Medical Association for continuing
education. The content and delivery of such continuing education programs shall
be in the discretion and judgement of IPA, in order to maintain high standards
for the delivery of Medical Services pursuant to this Agreement. IPA further
agrees to gather, correlate, and distribute to its Member Physicians and
Specialist Physicians, information regarding professional medical activities and
developments which IPA believes may be of assistance in providing Medical
Services pursuant to this Agreement.

                  3.02.04  IPA agrees to provide reasonable evidence that all
and/nurses other ancillary and paramedical personnel who are employed by and
contract with IPA or Specialist Physicians are properly licensed by the State of
California.

         3.03     INSURANCE - IPA shall maintain professional liability
insurance and general liability insurance in the minimum amounts of one million
dollars ($1,000,000) per person, three million dollars ($3,000,000) per
occurrence coverage, and three million dollars ($3,000,000) combined single
limits coverage, for its agents and employees, as applicable. In the event IPA
procures a claims made policy as distinguished from an occurrence policy, IPA
shall

PRIME CARE                             8                   MEDICARE PARTIAL RISK
<PAGE>

procure and maintain prior to termination of such insurance, continuing "tail"
coverage, unless successor policy coverage provides such "tail" protection. IPA
shall provide PacifiCare with evidence of such insurance coverage upon
PacifiCare's request. IPA shall immediately notify PacifiCare of any material
changes in insurance coverage and shall provide a certificate of such
insurance coverage to PacifiCare upon PacifiCare's reasonable request. In the
event IPA contracts with independent contractor physicians to provide Medical
Services under this Agreement, IPA will require such independent contractor
physicians and their agents to maintain professional liability insurance and
general liability insurance in the minimum amounts as is usual and customary in
the community.

         3.04     REFERRALS - IPA shall refer Subscribers in need of specialty
care services only with the approval of the IPA Utilization Review Committee.
However, in the event that Emergency Services are required, IPA shall comply
with Section 3.05 below.

         3.05     HOSPITAL ADMISSIONS - Whenever IPA determines that a
Subscriber on IPA's eligibility list requires Hospital Services which are not
Emergency Services, IPA shall arrange for such Hospital admissions and
outpatient surgeries through the IPA's Utilization Review Committee and its
developed utilization review program. IPA and its Member Physicians shall not
serve as admitting physicians for any Subscriber without such prior approval
except in the event that Emergency Services are required. If IPA or a Member
Physician admits a Subscriber to a Hospital for Emergency Services, IPA shall
notify PacifiCare of such admission within the time frames as required in the
PacifiCare Provider Policies and Procedures Manual, attached hereto as
Attachment D and incorporated in full herein by reference. Admissions for
Emergency Services or Urgently Needed Services shall be made to hospitals
contracting with PacifiCare, if possible.

         3.06     ELIGIBILITY LIST - IPA shall accept as patients those
Subscribers who are on IPA's eligibility list provided by PacifiCare to IPA.
Member Physicians and IPA shall be entitled to rely on the most current provided
list until a new list has been approved to IPA. IPA understands that in order
to update the eligibility list, PacifiCare is dependent on the receipt of
information from HCFA.

         3.07     COLLECTION OF CHARGES FROM SUBSCRIBERS - IPA shall collect
applicable Copayments from Subscribers upon the rendition of Medical Services to
Subscribers pursuant to the Secure Horizons Medical and Hospital Plan. With the
exception of Copayments and charges for non-covered services delivered on a
fee-for-service basis to Subscribers, IPA shall in no event, including, without
limitation, to non-payment by PacifiCare, insolvency of PacifiCare, or breach of
the Agreement, bill, charge, collect and deposit, or attempt to bill, charge,
collect or receive any form of payment, from any Subscriber for Medical Services
provided pursuant to this

PRIME CARE                             9                   MEDICARE PARTIAL RISK
<PAGE>

Agreement and for which Subscriber is entitled under the Secure Horizons
Medical and Hospital Plan in effect for such Subscriber.

                  IPA shall not maintain any action at law or equity against a
Subscriber to collect sums owed by PacifiCare to IPA. Upon notice of any such
charge, PacifiCare may terminate this Agreement consistent with the provisions
contained in Section 7.01.02 and take all other appropriate action consistent
with the terms of this Agreement to eliminate such charges, including, without
limitation, requiring IPA and Specialist Physicians to return all sums collected
as Surcharges from Subscribers or their representatives. Nothing in this
Agreement, however, shall be construed to prevent IPA from providing
non-covered Medical Services on a usual and customary fee-for-service basis to
Subscribers.

                  IPA's obligations regarding the collection of charges from
Subscribers shall survive the termination of this Agreement with respect to
Medical Services provided during the term of the Agreement without regard to the
cause of termination of this Agreement.

         3.08     COLLECTION OF CHARGES FROM THIRD PARTIES WHEN MEDICARE NOT THE
PRIMARY PAYOR - IPA and Member Physicians accept payment from PacifiCare (plus
applicable Copayments) for Medical Services as provided herein as full payment
for such Medical Services from PacifiCare except as provided herein; provided
however, when Medicare is not the primary payor for Medical Services, such as
when the Subscriber is entitled to payment from another third party or for
payment for a Workers' Compensation claim, or from another primary insurance
coverage maintained by Subscriber, IPA and Member Physicians shall make no
demand upon PacifiCare for reimbursement under the Individual Subscriber Stop
Loss Program as specified in Attachment A3 hereto until all primary sources of
payment have been pursued and it is determined that full payment cannot be
obtained within ten (10) months from the date of the provision of Medical
Services.

                  For purposes of accomplishing the intent of this Section 3.08,
PacifiCare hereby assigns to IPA for collection, any claims or demands against
third parties for amounts due for Medical Services provided by IPA pursuant to
this Agreement, subject to the following conditions:

                  3.08.0l  IPA shall utilize lien forms which are provided by
PacifiCare in the PacifiCare Policies and Procedures Manual or which have been
approved in advance by PacifiCare. IPA shall notify PacifiCare each time it
pursues and each time it obtains a signed lien from a Subscriber.

                  3.08.02  IPA shall not commence any legal or equitable action
against a third party without obtaining the prior written consent of PacifiCare.
It is agreed that collection or demand letters consistent with the PacifiCare
Provider Policies and

PRIME CARE                             10                  MEDICARE PARTIAL RISK
<PAGE>

Procedures Manual shall not constitute the commencement of legal or equitable
action. Under no circumstances, shall IPA commence any legal action against a
Subscriber.

                  3.08.03  IPA shall defend, indemnify and hold PacifiCare
harmless for all actions by IPA which relate to collections of an account
pursuant to this Section 3.08.

                  3.08.04  IPA shall perform such collection activities
consistent with the procedures set forth in the PacifiCare Provider Policies and
Procedures Manual.

                  3.08.05  PacifiCare may immediately rescind such assignment on
a claim-by-claim basis for any reason by providing written notice of rescission
to IPA.

                  In the event IPA receives payment from a third party after
receipt of payment from PacifiCare, IPA shall reimburse PacifiCare to the extent
that the combined amounts received from all payors exceeds one hundred percent
(100%) of IPA's usual and customary fee-for-service charges.

         3.09     DUTIES OF IPA UPON TERMINATION DURING PHASE-OUT PERIOD -
Should this Agreement be terminated by IPA pursuant to Section 7.01.01(a) or
Section 7.01.01(b), IPA shall be released of its obligation to continue to
provide or arrange for Medical Services to Subscribers during the phase-out
period as stated in this Section 3.09. If this Agreement is terminated for any
other reason by either party or if this Agreement terminates at the end of the
Initial Term or any renewal term, IPA shall not be released of its obligation to
continue to provide or arrange for Medical Services to Subscribers during the
phase-out period, which phase-out period shall end on the earlier of:

                  3.09.01  Three (3) months from the effective date of
termination of this Agreement, or

                  3.09.02  The date PacifiCare has secured the transfer of
Subscribers to another medical group, individual practice association, or
physician for further treatment, and has notified IPA of such transfer in
writing.

         Compensation during the phase-out period shall be at the Capitation
Rates set forth in Attachment C hereto, until memberships goes below five
hundred (500) members. Once there are five hundred members or less, compensation
will be based upon per diem contracted rates that are in place at the time of
the phase-out.

         3.10     CONTINUING CARE RESPONSIBILITIES - IPA and Member Physicians
shall provide or arrange for Medical Services to Subscribers for the term of
this Agreement in accordance with Section 3.01 hereof. In the event of
termination of this Agreement

PRIME CARE                             11                  MEDICARE PARTIAL RISK
<PAGE>

and the expiration of IPA's duty to provide or arrange for Medical Services
during the phase-out period pursuant to Section 3.09, if applicable, IPA and
Member Physicians shall continue to provide or arrange for Medical Services to
Subscribers until the effective date of transfer of such Subscribers to another
Participating Medical Group for further treatment and written notice of such
transfer has been provided by PacifiCare to IPA. If a Subscriber's care cannot
be transferred for the reason of hospitalization of Subscriber, continuity of
care, or other legally-required medical treatment reasons, IPA shall continue to
provide or arrange for Medical Services for such Subscriber until PacifiCare,
through consultation with the Subscriber's attending participating physician,
has made provision for the transfer of such Subscriber to another participating
provider for further Medical Services and has notified IPA of such transfer in
writing. The payment provisions for any continued Medical Services after
expiration of the phase-out period shall be the lesser of seventy-four percent
(74%) of usual and customary fees of the Member Physician or Specialist
Physician or the Cost of Care as set forth in Attachment A4.

         Notwithstanding the above or any other provisions of this Agreement to
the contrary, IPA agrees that in the event PacifiCare ceases operations for any
reason, including insolvency, IPA shall provide Medical Services and shall not
bill, charge, collect or receive any form of payment from any Subscriber or have
any recourse against a Subscriber for Medical Services provided after PacifiCare
ceases operation. This continuation of Medical Services obligation shall be for
the period for which Subscriber Premiums have been paid, but shall not exceed a
period of thirty (30) days, except for those Subscribers who are hospitalized on
an inpatient basis as provided below.

         In the event PacifiCare ceases operations or IPA terminates this
Agreement on the basis of PacifiCare's failure to make timely Capitation
Payments, IPA shall continue to arrange for Medical Services to those
Subscribers who are hospitalized on an inpatient basis at the time PacifiCare
ceases operation or IPA terminates this Agreement until such Subscribers are
discharged from the hospital. IPA may file a claim with PacifiCare for such
Medical Services at eighty percent (80%) of IPA's usual and customary fee for
service charges then in effect.

         IPA agrees that the provisions of this Section 3.10 and IPA's
obligations herein shall survive the termination of this Agreement without
regard to the cause of termination of the Agreement, and shall be construed to
be for the benefit of the Subscribers.

         3.11     STAFF PRIVILEGES - IPA agrees to have its Member Physicians
seek and obtain (and provide evidence of) staff privileges or other appropriate
access to Hospital and other hospitals under contract with PacifiCare where
Medical Services shall be provided to Subscriber by IPA's Member Physicians.

PRIME CARE                             12                  MEDICARE PARTIAL RISK
<PAGE>

         3.12     ADMINISTRATIVE GUIDELINES - IRA agrees to perform its duties
under this Agreement in a manner consistent with the reasonable administrative
guidelines provided by PacifiCare, in its Provider Policies and Procedures
Manual, attached hereto as Attachment D and incorporated in full herein by
reference. Subject to Section 12.11 herein, PacifiCare shall notify IPA of any
material amendments to the administrative guidelines, which amendments shall
become effective upon thirty (30) days written notice by PacifiCare to IPA if
IPA has not objected to PacifiCare in writing within the thirty (30) day period
to be bound by such amendments. IPA approval of such amendments shall not be
unreasonably withheld. If IPA does provide PacifiCare reasonable written
objection to be bound by such amendments within the thirty (30) day period,
such amendments to the PacifiCare Health Plan shall have no force or effect on
IPA.

         3.13     UTILIZATION REVIEW - IPA agrees to participate with PacifiCare
in an ongoing utilization review program to promote efficient use of resources.
The IPA's Utilization Review Committee shall meet as frequently as necessary but
at least weekly. The Utilization Review Committee shall keep minutes of the
committee meetings, a copy of which shall be made available to PacifiCare upon
ten (10) days written notice by PacifiCare to IPA. IPA and PacifiCare shall
jointly implement a utilization review system whereby IPA shall notify
PacifiCare of any hospital or skilled nursing facility admissions. A member of
the PacifiCare Medical Services staff may participate in IPA's Utilization
Review Committee meetings.

         3.14     QUALITY OF HEALTH CARE - IPA agrees to assure quality of
Medical Services by:

                  3.14.01  Assigning PacifiCare Subscribers only to Member
Physicians or Outside Providers meeting quality health care standards;

                  3.14.02  Inspecting the premises and facilities of its Member
Physicians on a regular basis and allowing PacifiCare to participate in such
inspections upon ten (10) days written notice.

         3.15     QUALITY ASSURANCE AND REMEDIAL PROCEDURES - IPA shall
cooperate with PacifiCare in the operation of PacifiCare's quality assurance
program and IPA shall perform quality assurance review of Medical Services as
brought before IPA internally or from PacifiCare's Quality Assurance Committee,
the Department of Corporations, the Department of Health and Human Services,
HCFA and any other governmental agencies with regulatory or enforcement
jurisdiction over this Agreement. IPA shall establish and maintain a Quality
Assurance Committee which shall meet as least quarterly. A member of the
PacifiCare Medical Services staff may participate in IPA's Quality Assurance
Committee meetings. The IPA Quality Assurance Committee shall keep minutes of
the committee meetings, a copy of which shall be made available to PacifiCare
upon ten (10) days written notice by PacifiCare to IPA. The task of the Quality
Assurance Committee may be assumed by the Utilization Review

PRIME CARE                          13                     MEDICARE PARTIAL RISK
<PAGE>

Committee described in Section 3.13; however, in such event, the Utilization
Review and Quality Assurance Committees must hold separately convened meetings
and the minutes of each meeting must be separately maintained.

         IPA shall, at the written request of PacifiCare, make available one (1)
Member Physician from IPA to attend the PacifiCare Quality Assurance Committee
meetings. The intent of this Section is to have at least one Member Physician
from IPA serve for six (6) months on the PacifiCare Quality Assurance Committee
during a three (3) year period. IPA shall develop written procedures for
remedial action whenever it is determined by PacifiCare's Quality Assurance
Committee that inappropriate or substandard Medical Services have been
furnished or Medical Services that should have been furnished or Medical
Services that should have been furnished have not been furnished. Upon request,
PacifiCare shall assist IPA in the formulation of such remedial procedures.

         3.16     COMPLIANCE WITH CIVIL RIGHTS LAWS - IPA shall comply with
Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act
of 1973 and the Age Discrimination Act of 1975.

         3.17     RECIPROCITY AGREEMENTS - IPA agrees to develop agreements
among PacifiCare's Participating Medical Groups to assure reciprocity of health
care among the Participating Medical Groups for PacifiCare Subscribers. IPA
shall accept non-emergency or specialty Referrals from such other Participating
Medical Groups and such other Participating Medical Groups shall be required to
accept non-emergency or specialty Referrals from IPA. Payment for the foregoing
Referrals shall be no greater than the Cost of Care Rates described in
Attachment A4.

         3.18     INDIVIDUAL STOP-LOSS PROGRAM - IPA agrees to participate in
and assume the rights and responsibilities of the PacifiCare Stop-Loss Program
as defined in Attachment A3, attached hereto and incorporated in full herein by
reference. (Does not apply to this Agreement)

         3.19     OTHER CONTRACTUAL COMMITMENTS - IPA represents and assures
PacifiCare that contractual commitments with other HMOs, competitive medical
plans and health related entities do not restrict or impair IPA from performing
its duties under this Agreement.

         3.20     DISSEMINATION OF INFORMATION - IPA agrees that PacifiCare may
use IPA's name, address, telephone number, and a listing of IPA's Member
Physicians in any informational material routinely distributed to Subscribers
and for other purposes related to the administration of the Secure Horizons
Medical and Hospital Plan as an indication of IPA's willingness to provide
Medical Services to Subscribers.

PRIME CARE                          14                     MEDICARE PARTIAL RISK
<PAGE>
         Prior to listing or otherwise referencing PacifiCare in any promotional
or advertising brochures, media announcements or other advertising or marketing
material, IPA shall first obtain the prior subjective consent of PacifiCare.

         3.21     WRITTEN AGREEMENTS - IPA shall secure written agreements,
consistent with the terms of this Agreement and in compliance with all state and
federal law, with all Specialist Physicians regularly utilized as a part of
IPA's referral system.

         3.22     MEDICAL CARE CRITERIA - IPA shall utilize the criteria for
medical care that is established or approved by PacifiCare's Quality Assurance
Committee as a standard reference in determining appropriate lengths of stay
for hospitalized Subscribers or appropriate utilization patterns for referral to
specialty services.

         3.23     NONDISCRIMINATION - IPA represents and assures that Medical
Services are rendered to Subscribers in the same manner as such services are
provided to IPA's other patients, except as required pursuant to this Agreement.
Subscribers shall not be subject to any discrimination whatsoever by IPA in
regards to access to Medical Services.

         3.24     ACCOUNTS PAYABLE SYSTEM - IPA agrees to operate its accounts
payable system in a manner which assures that providers of authorized Medical
Services who are Member Physicians and non-Member Physicians receive payment for
Medical Services rendered to Subscribers within the timeframe specified by
Federal regulation. For a claim which is contested or is not "clean", either
payment must be made to the Member Physician or non-Member Physician, or an
initial determination notice must be sent to the Subscriber within sixty (60)
calendar days of IPA's receipt of such claim from Member Physicians and
non-Member Physicians. Any denied claim which is afterwards determined by HCFA
as payable and which falls under IPA financial responsibility, must be paid by
IPA upon notice and/or receipt of claim. In the event IPA fails to meet the
payment timelines discussed in this Section 3.24, in addition to exercising any
other remedies it may have under this Agreement, PacifiCare may take actions to
assist IPA in operating its accounts payable system including, but not limited
to, paying IPA's Member Physicians and Non-Member Physicians and charging the
claim amount paid against IPA capitation in addition to an administrative fee
for performing such services.

         3.25     CATASTROPHIC CASE MANAGEMENT - IPA agrees that PacifiCare's
medical director may be involved in the management and coordination of
Catastrophic Cases. IPA will fully assist PacifiCare in providing information
that may be required in determining the need for a transfer of a Subscriber into
PacifiCare's regional centers for the care of Catastrophic Cases including, but
not limited to, prompt notification of known or suspected Catastrophic Cases.
Detailed procedures for Catastrophic

PRIME CARE                          15                     MEDICARE PARTIAL RISK
<PAGE>
Case management will be mutually agreed upon by the parties based upon IPA's and
PacifiCare's determination of the Subscriber's transferability. Except in
unusual circumstances, regional centers for care of Catastrophic Cases shall be
sought within the IPA Service Area and surrounding area.

         3.26     CAPACITY REPORTING - IPA will provide to PacifiCare, at the
earliest possible time, notice of any significant changes in the capacity of IPA
to provide or arrange for the Medical Services contemplated by this Agreement
(e.g., addition or deletion of Member Physicians or Specialist Physicians),
including a ninety (90) day written notice in the event IPA is unable to
properly service additional Subscribers. IPA shall still be obligated to provide
or arrange for Medical Services to Subscribers who are with employer groups whom
PacifiCare had agreed to enroll prior to ninety (90) days from the effective
date of the written notice. PacifiCare shall provide IPA, upon IPA's request,
current marketing information within a reasonable period for purposes of
determining IPA capacity.

         3.27     REPRESENTATION OF IPA MEMBER PHYSICIANS - IPA agrees to
represent its Member Physicians in matters pertaining to the provision of
Medical Services under this Agreement, and that it has obtained written consent
to such representation from its Member Physicians.

         3.28     PERFORMANCE OF MEMBER PHYSICIANS - IPA agrees: (i) to develop
methods for discussion of performance with its Member Physicians, (ii) to assure
correction of performance of its Member Physicians consistent with the
provisions of this Agreement and state and federal law applicable to the Secure
Horizons Medical and Hospital Plan, and (iii) to resolve Conformance Requests.

         3.29     WITHDRAWAL OF AN IPA FACILITY - In the event IPA seeks to
withdraw one or more of the IPA Facilities listed in Attachment F from providing
or arranging for Medical Services to Subscribers under this Agreement, IPA must
notify PacifiCare of such withdrawal in writing at least one hundred and eighty
(180) days prior to the effective withdrawal date; after the effective date of
withdrawal, IPA shall still be responsible to provide or arrange for Medical
Services to the affected Subscribers at the other IPA Facilities.

         3.30     WITHDRAWAL OF A MEMBER PHYSICIAN - In the event IPA seeks to
withdraw one or more Member Physicians from providing or arranging Health Care
Services to Subscribers under this Agreement, IPA must notify PacifiCare of such
withdrawal in writing at least sixty (60) days prior to the effective withdrawal
date. After the effective date of such withdrawal, IPA shall still be
responsible to provide or arrange Medical Services to the affected Subscribers
with the other Member Physicians.

4.       DUTIES OF PACIFICARE

PRIME CARE                          16                     MEDICARE PARTIAL RIBX
<PAGE>

         4.01     ADMINISTRATION - PacifiCare agrees to perform all necessary
administrative, accounting, enrollment, and other functions consistent with the
administration of the Secure Horizons Medical and Hospital Plan and this
Agreement.

         4.02     BENEFIT INFORMATION - PacifiCare agrees to apprise all
Subscribers concerning the type, scope and duration of benefits and services to
which such person is entitled under the Secure Horizons Medical and Hospital
Plan.

         4.03     ASSIST IPA - PacifiCare agrees to assist and cooperate with
IPA in the development and initial implementation of procedures necessary to
carry out the intent of this Agreement.

         4.04     ADMINISTRATION OF PAYMENTS - PacifiCare agrees to transmit
Capitation Payments and other payments to IPA in accordance with the terms and
procedures set forth in this Agreement.

         4.05     STATISTICAL INFORMATION AND PROVISION OF DATA - PacifiCare
agrees to provide IPA with management information and data reasonably necessary
to carry out the terms and conditions of this Agreement and for the operation of
the Secure Horizons Medical and Hospital Plan, including monthly Eligibility
Lists and monthly capitation worksheets. Furthermore, PacifiCare shall provide
quarterly reports reflecting Hospital Services authorized by IPA.

         4.06     SERVICES RENDERED TO INELIGIBLE SUBSCRIBERS - PacifiCare
agrees to reimburse IPA for those Medical Services set forth in Attachment A2
provided to an ineligible Subscriber if the Subscriber was listed as eligible on
the most current eligibility list provided to IPA by PacifiCare. If PacifiCare
is in receipt of a billing to such ineligible Subscriber from IPA and proof of
having sent the Subscriber or the Subscriber's legal guardian two (2) bills no
less than thirty (30) days apart, PacifiCare will reimburse IPA eighty percent
(80%) of IPA's ordinary and customary fee-for-service rates then in effect for
those Medical Services rendered but no greater than one hundred percent (100%)
of the still uncollected balance. If subsequent to payment by PacifiCare, IPA
receives any payment from another source for the services, then IPA shall
reimburse PacifiCare up to the amount previously received from PacifiCare. If
a Subscriber becomes ineligible for benefits under the Secure Horizons Medical
and Hospital Plan after IPA or Member Physicians have begun treatment of the
Subscriber (provided the Subscriber is not hospitalized at the time of becoming
ineligible), IPA shall be entitled to make all subsequent charges for its
services directly to the Subscriber. If the Subscriber is hospitalized at the
time of becoming ineligible, IPA shall be entitled to make charges directly to
the Subscriber only for services provided after the Subscriber is discharged
from such hospital treatment.

PRIME CARE                          17                     MEDICARE PARTIAL RISK
<PAGE>

         4.07     DISSEMINATION OF INFORMATION - Except as provided above in
Section 3.20, prior to listing or otherwise referencing IPA in any promotional
or advertising brochures, media announcements or other advertising or marketing
material, PacifiCare shall first obtain the prior consent of IPA, such consent
not to be unreasonably withheld.

5.       COMPENSATION

         5.01     CAPITATION PAYMENTS - PacifiCare shall make monthly Capitation
Payments to IPA as outlined in Attachment C, due and payable on the tenth
(10th) day of the month for the current month's Medical Services.

         5.02     ADDITIONAL PAYMENTS - PacifiCare and IPA agree to provide
payments to each other in accordance with the terms of the following programs,
if applicable: Hospital Incentive Program, Individual Stop-Loss Program, Benefit
Withhold Incentive Program and Mammagraphy Program as specified in Attachments
A5, A3, D and C respectively, incorporated in full herein by reference.

         To the extent that one or both parties owes an amount to the other
party in the risk programs noted above, IPA agrees that PacifiCare shall combine
the results of all applicable risk programs such that one aggregate payment is
payable to or receivable from IPA. A fully detailed accounting of the results of
each program shall accompany the aggregate payment or notice of amount due.

         5.03     ADEQUACY OF COMPENSATION - Except as otherwise provided
herein, IPA shall accept the payments specified in this Agreement as payment in
full for all Medical Services provided Subscribers during each month for which
such payments are to be received by IPA from PacifiCare. In the event PacifiCare
fails to make any payments to IPA as provided herein, whether from PacifiCare's
insolvency or otherwise, subscribers shall not be liable to IPA or its Member
Physicians under any circumstances for Medical Services. Surcharges for Medical
Services provided or arranged by IPA or Member Physicians are prohibited; upon
notice of the existence of any such Surcharge, PacifiCare will take appropriate
action consistent with the terms of this Agreement to eliminate such Surcharges.

         5.04     REINSURANCE - The purpose of the reinsurance program described
herein is to limit IPA's risk for Hospital Services under the Hospital Control
Program to a specified amount per Subscriber per Year (the "Reinsurance
Deductible") in return for a payment of a Reinsurance Premium. For the 1995
calendar year, the Reinsurance Deductible shall be zero per Subscriber per Year
and the Reinsurance Premium shall equal zero percent (0%) of the Net Premium per
Subscriber per month. Notwithstanding Section 12.12, PacifiCare may amend the
Reinsurance Premium and Reinsurance

PRIME CARE                          18                     MEDICARE PARTIAL RISK
<PAGE>

Deductible on an annual basis effective each January 1 by providing sixty (60)
days prior written notice to IPA.

         Reinsurance claims shall be calculated at the Cost of Care values as
set forth in Attachment A5, Sections 4a, 4b and 4c of this Agreement. (Does not
apply to this Agreement)

6.       TERM OF AGREEMENT

         6.01     TERM - The initial term of this Agreement shall be for twelve
(12) months ("Initial Term") and the Commencement Date shall be January 1,
1995. After the Initial Term, a "Year" under this Agreement shall begin on
January 1 and end on December 31. The term of this Agreement shall be
automatically extended for one (1) year on each successive January 1 thereafter
unless either party provides the other with written notice of such party's
intention not to extend the term no less than one hundred eighty (180) days
prior to the January 1 renewal date or until this Agreement is appropriately
terminated by either party as provided in Section 7 herein. Upon renewal of the
Initial Term and any subsequent term, the then applicable rates of compensation
specified in this Agreement shall apply unless otherwise agreed upon by the
parties in writing.

7.       TERMINATION

         7.01     TERMINATION OF AGREEMENT WITH MATERIAL CAUSE - Either party,
as appropriate, may terminate this Agreement for material cause as set forth in
Sections 7.01.01 or 7.01.02, hereof subject to the notice and cure periods set
out in Section 7.02 hereof, if applicable. In the event either party seeks to so
terminate this Agreement, the terminating party shall give written notice of
termination stating the actions of the other party constituting material cause
for termination.

                  7.01.01  CAUSE FOR TERMINATION OF AGREEMENT BY IPA - The
following shall constitute cause for termination of this Agreement by IPA:

                           a.       Non-payment - Failure by PacifiCare to pay
Capitation Payments due to IPA hereunder within twenty (20) days of the
Capitation Payment due date or failure by PacifiCare to make any other payments
due to IPA hereunder within forty-five (45) days of any such payment's due date.

                           b.       Revocation of Certification or License -
Revocation by the State of California or the United States Government of any
certification or license of PacifiCare necessary for the performance of this
Agreement.

                           c.       Breach of Material Term and Failure to
Cure - PacifiCare's breach of any material term, covenant, or condition and
subsequent failure to cure said breach as provided in Section

PRIME CARE                          19                     MEDICARE PARTIAL RISK
<PAGE>

7.02 hereof. The written notice of termination shall contain specific reference
as to the breaches which have caused such failure.

                  7.01.02  CAUSE FOR TERMINATION OF AGREEMENT BY PACIFICARE -
The following shall constitute cause for termination of this Agreement by
PacifiCare:

                           a.       Financial Failure of IPA - PacifiCare's
reasonable determination of IPA's anticipated inability to provide or arrange
for Medical Services as described herein due to the likelihood of IPA's lack of
financial resources, other than due to PacifiCare's non-payment of amounts due
IPA hereunder. IPA shall have the opportunity to dispute such determination by
PacifiCare by providing reasonable evidence and assurances of financial
stability and capacity to perform under this Agreement.

                           b.       Failure to Provide Quality Medical Services
- Failure to maintain the standards set forth in Section 3.02 of this Agreement
and such failure is not corrected consistent with the provisions of Section
7.02. The written notice of termination shall contain specific reference to the
breaches which have caused such failure. PacifiCare reserves the right to
withdraw from IPA all or part of its Subscribers if the Medical Services are not
being properly provided or arranged for pursuant to this Agreement and such
deficiencies are not corrected consistent with the provisions of Section 7.02 of
this Agreement.

                           c.       Failure to Provide Services - Failure to
provide Medical Services to Subscribers as provided herein. The written notice
of termination shall contain specific reference as to the breaches which have
caused such failure.

                           d.       Breach of Material Term and Failure to
Cure - IPA's breach of any material term, covenant or condition of the Agreement
and subsequent failure to cure said breach as provided in Section 7.02 of this
Agreement. The written notice of termination shall contain specific reference as
to the breaches which have caused such failure.

         7.02     CURING PERIOD AND TERMINATION DATE - The party receiving the
written notice of termination shall have thirty (30) days from the receipt of
said notice to cure or otherwise eliminate the circumstances constituting cause
for termination. If such party fails to cure or eliminate the circumstances
constituting cause for termination within a (30) day period, this Agreement
shall terminate thirty (30) days from the date of expiration of the curing
period, said expiration date being sometimes called herein the "effective date
of termination".

         7.03     REPAYMENT UPON TERMINATION - Within one hundred and eighty
(180) days of the effective date of termination of this Agreement as provided
herein, an accounting shall be made by

PRIME CARE                          20                     MEDICARE PARTIAL RISK

<PAGE>

PacifiCare of monies due and owing either party and payment shall be forthcoming
by the appropriate party to settle such balance within thirty (30) days of such
accounting. Either party may request an independent audit of such PacifiCare
accounting by a mutually acceptable independent certified public accountant and
such audit shall be equally paid for by both parties. The parties agree to abide
by the findings of such independent audit and appropriate payment by the
appropriate party, if any, shall be made within thirty (30) days of such
independent audit.

         7.04     TERMINATION NOT AN EXCLUSIVE REMEDY - Any termination by
either party pursuant to this Section 7 is not meant as an exclusive remedy
and such terminating party may seek whatever action in law or equity as may be
necessary to enforce its rights under this Agreement.

8. RECORDS, DATA COLLECTION, CITATIONS AND RIGHT TO INSPECT RECORDS

         8.01     RECORDS - IPA shall maintain and provide such records and
information as reasonably necessary for PacifiCare to properly administer the
Secure Horizons Medical and Hospital Plan and consistent with state and federal
law. The duties imposed by this Section 8.01 shall not terminate upon
termination of this Agreement, whether by rescission or otherwise, and shall be
in effect until the completion of the phase-out period pursuant to Section 3.09.
The cost for preparation and submission of this data shall be borne solely by
IPA.

         IPA shall maintain records and provide such information to PacifiCare
or the California Commissioner of Corporations as may be necessary for the
compliance by PacifiCare with the provisions of state and federal law and
regulations promulgated thereto, and such records shall be retained by IPA for
at least two (2) years following the provision of Medical Services. This
obligation is not terminated upon termination of this Agreement, whether by
rescission or otherwise.

         8.02     CONFIDENTIALITY OF RECORDS - IPA shall safeguard the
confidentiality of Subscriber health records and treatment in accordance with
all state and federal laws, including, without limitation, the Privacy Act, as
implemented by 45 Code of Federal Regulations 5(b) and the regulations
promulgated thereunder.

         8.03     DATA COLLECTION - IPA shall maintain and provide to
PacifiCare on a timely basis, the utilization data more particularly described
in the PacifiCare Provider Policies and Procedures Manual for the effective
management of PacifiCare's health care delivery system. Among the reports which
IPA shall provide to PacifiCare are completed reports within thirty (30) days
following the end of each month containing an itemized list of all Medical
Services, other than Hospital Services, provided to or arranged for Subscriber
during such month. This report shall be as

PRIME CARE                          21                     MEDICARE PARTIAL RISK
<PAGE>

described in the PacifiCare Provider Policies and Procedures Manual. PacifiCare
shall impose a penalty for failure to submit such data, which was reasonably
within the control of IPA to submit, with ninety (90) days of the date of
service by permanently withholding one percent (1%) of IPA's monthly Capitation
for each month IPA fails to submit such data.

         8.04     RIGHT TO INSPECT - IPA shall provide access at reasonable
times upon demand by PacifiCare, or any governmental regulatory agency
responsible for the administration of health care service plans, to inspect
facilities, equipment, books and records relating to the performance of this
Agreement, including, without limitation, Subscriber patient records,
financial records pertaining to the cost of operations and income received by
IPA for Medical Services rendered to Subscribers. Unless otherwise required by
law, PacifiCare shall provide IPA with a seventy-two (72) hour prior written
notice of any such inspection.

         8.05     CITATIONS - IPA shall notify PacifiCare in writing of each
and every report of any governmental or quasi-governmental agency with
jurisdiction over IPA which contains any citation of IPA for failure to meet any
governmental or quasi-governmental standard on or after the Commencement Date of
this Agreement.

         8.06     FINANCIAL STATEMENTS - IPA shall provide to PacifiCare within
forty-five (45) days of the end of each calendar quarter copies of its quarterly
financial statements, which shall include a balance sheet, statement of income
and a statement of cash flow (the "financial statements") prepared in accordance
with generally-accepted accounting principles. Such quarterly statements shall
be certified by the chief financial officer of IPA as accurately reflecting the
financial condition of IPA for the period indicated. In addition, IPA shall
provide to PacifiCare, within forty-five (45) days of the end of each calendar
year, copies of its audited annual financial statements.

         8.07     TRANSFER OF MEDICAL RECORDS UPON TERMINATION - Upon the
effective date of termination of this Agreement and, if applicable, upon the
expiration of the phase-out period set forth in Section 3.09, at PacifiCare's
request, IPA shall copy all active PacifiCare Subscriber patient medical files
in IPA's possession and forward such files to another provider of Medical
Services designated by PacifiCare, provided such copying and forwarding is not
otherwise objected to by Subscribers. The copies of such medical files may be in
summary form. The cost of copying the patient medical files shall be borne by
IPA. IPA shall cooperate with PacifiCare in maintaining the confidentiality of
such confidential and proprietary information and trade secrets at all times.

9.       EXCLUSIVITY

         9.01     EXCLUSIVE USE OF HOSPITAL FOR HOSPITAL SERVICES - In
recognition of the need for centralized coordination of Medical

PRIME CARE                          22                     MEDICARE PARTIAL RISK
<PAGE>

Services to PacifiCare Subscribers to ensure continuity and quality of care,
IPA agrees, subject to the limitations stated below, to utilize Hospital as its
exclusive provider of Hospital Services for all Subscribers in the IPA Service
Area. This exclusivity provision is subject to the following exceptions:

                  9.01.01  Emergency Services and Urgently Needed Services -
Subscribers admitted for Emergency Services or Urgently Needed Services through
other hospitals, whether in or out of the IPA Service Area;

                  9.01.02  Unavailable Hospital Services - Subscribers requiring
Hospital Services not available at Hospital, including specialty Hospital
Services and those which cannot be provided due to ethical principles of
Hospital;

                  9.01.03  Unauthorized Admissions - Unauthorized Subscriber
admissions to facilities within the IPA Service Area for Hospital Services;

                  9.01.04  Subscriber Requests for Treatment at Other
Facilities - IPA may, in coordination with PacifiCare, grant Subscriber requests
for treatment at another facility due to medical necessity or impairment of the
Hospital/Subscriber relationship, or Hospital bed capacity. IPA shall exercise
reasonable efforts in discouraging Subscriber transfers at Subscriber's request
unless Subscriber can show just cause for such transfer and IPA deems the
transfer medically safe.

                  9.01.05  Breach of Agreement - IPA shall not be obligated to
continue to refer Subscribers to Hospital upon written notice to IPA by
PacifiCare of Hospital's breach of any material term of its contract with
PacifiCare.

                  9.02 UTILIZATION OF IPA BY PACIFICARE - Nothing in this
Agreement shall be construed to require PacifiCare to assign any minimum or
maximum number of Subscribers to IPA, nor to require PacifiCare to utilize the
Medical Services of IPA for any or all Subscribers in the IPA Service Area.

         10.      GOVERNING LAW AND DISPUTE - RESOLUTION

         10.01    GOVERNING LAW - This Agreement and the rights and obligations
of the parties hereunder shall be construed, interpreted, and enforced in
accordance with, and governed by, the laws of the State of California, and the
United States and all regulations promulgated pursuant thereto.

         Any provisions required to be in this Agreement by any of the above
Acts and regulations shall bind PacifiCare and IPA whether or not expressly
provided in this Agreement.

PRIME CARE                          23                     MEDICARE PARTIAL RISK
<PAGE>
         10.02    DISPUTE BETWEEN IPA AND SUBSCRIBER NOT GOVERNED BY AGREEMENT
- Any controversies or claims between IPA and Subscriber arising out of IPA's
performance of this Agreement are not governed by this Agreement. IPA and
Subscriber may seek any appropriate legal action to resolve such controversy or
claim deemed necessary.

         In the event of a dispute between IPA and a Subscriber and upon mutual
agreement between IPA and such Subscriber, PacifiCare agrees to make available
the Subscriber Grievance Resolution Process described in the Secure Horizons
Medical and Hospital Plan Agreement for resolution of such dispute. In such
instance, the decision of the PacifiCare Subscriber Satisfaction Committee and
Board of Directors shall not be binding upon the parties except upon agreement
between IPA and the Subscriber. Nor shall such grievance be subject to binding
arbitration except upon agreement between the parties. Should IPA and
Subscriber fail to resolve the grievance, IPA and Subscriber may seek any
appropriate legal action deemed necessary by such party.

         10.03    PAYMENT DISPUTES BETWEEN IPA AND SPECIALIST PHYSICIANS - In
the event IPA fails to make a payment to a Specialist Physician within sixty
(60) days of the submission of the bill by Specialist Physician to IPA and the
validity and the amount of the submitted bill are undisputed, PacifiCare may,
in its sole and absolute discretion, elect to pay the Specialist Physician on
behalf of IPA and deduct such payment from IPA's next monthly Capitation
Payment.

         Should a dispute concerning a claim for payment for Medical Services
rendered to Subscribers arise between IPA and a Specialist Physician who is a
Participating Medical Provider, IPA or the Specialist Physician may submit a
written complaint to PacifiCare. The complaint shall describe the disputed claim
and the basis for the amounts claimed and include the applicable written
agreement between IPA and the Specialist Physician. PacifiCare shall investigate
the complaint and make a determination of whether or not the claim is valid and
should be paid. In the event PacifiCare determines that IPA owes any amount to
Specialist Physician, IPA shall make such payment within thirty (30) days of
PacifiCare's determination. If IPA fails to pay the amount due within this
thirty (30) day period, PacifiCare may deduct the amount owed from IPA's next
monthly capitation payment. This amount will temporarily be placed in an account
(the "Claims Dispute Account") which shall be established by PacifiCare. If IPA
or Specialist Physician wishes to contest PacifiCare's determination, either may
do so by initiating an action for binding arbitration and notifying PacifiCare
of such initiation within thirty (30) days of PacifiCare's determination. If IPA
or Specialist Physician fails to request arbitration within thirty (30) days or
if the arbitration affirms PacifiCare's decision that amounts are owing from IPA
to Specialist Physician, PacifiCare shall release from the Claims Dispute
Account the amount owing to Specialist. If the arbitration results in a decision
that no money or a lesser amount

PRIME CARE                          24                     MEDICARE PARTIAL RISK
<PAGE>

than was determined by PacifiCare is owing to Specialist Physician, PacifiCare
shall release to IPA the amounts which were erroneously withheld from IPA's
Capitation Payment.

         In the event this Agreement has been terminated prior to PacifiCare's
investigation and written determination and PacifiCare's investigation results
in a determination that IPA owes money to Specialist Physician, PacifiCare may,
in its sole and absolute discretion, elect to pay Specialist Physician on behalf
of IPA and seek reimbursement from IPA.

         10.04    PAYMENT DISPUTES BETWEEN HOSPITAL AND IPA - In the event of a
dispute between Hospital and IPA concerning amounts due or owing under the
Hospital Control Program or as the result of an alleged breach of the exclusive
referral arrangement set forth in Section 9 above, Hospital or IPA may submit a
written complaint to PacifiCare. The complaint shall describe the disputed claim
and the basis for the amounts claimed. PacifiCare shall investigate the
complaint and make a written determination of whether or not the claim is valid
and should be paid. IPA and Hospital shall cooperate with PacifiCare's
investigation by providing in a timely manner all information reasonably
requested by PacifiCare.

         In the event PacifiCare determines that IPA owes any amount to Hospital
or Hospital owes any amount to IPA, the owing party shall make the appropriate
payment within thirty (30) days of PacifiCare's written determination. If the
owing party fails to pay the amount due within this thirty (30) day period,
PacifiCare may deduct the amount owed from the owing party's next monthly
Capitation Payment. This amount will temporarily be placed in an account (the
"Claims Dispute Account") which shall be established by PacifiCare. If IPA or
Hospital wish to contest PacifiCare's written determination, either may do so
by initiating an action for binding arbitration and notifying PacifiCare of such
initiation within thirty (30) days of PacifiCare's determination. If IPA or
Hospital fails to request arbitration within thirty (30) days or if the
arbitration affirms PacifiCare's decision, PacifiCare shall release from the
Claims Dispute Account the amount owing to the appropriate party as initially
determined by PacifiCare. If the arbitration results in a decision that no
money or a lesser amount than was determined by PacifiCare is owing to either
Hospital or IPA, PacifiCare shall release to IPA and/or Hospital the amounts
owing each party as determined by the arbitration.

11.      NOTICE

         11.01    NOTICE - Any notice required to be given hereunder shall be in
writing and either delivered personally or sent by registered or certified mail,
return receipt requested, to either PacifiCare or IPA at the addresses listed
below, or at such other addresses as either PacifiCare or IPA may hereafter
designate to the other;

PRIME CARE                          25                     MEDICARE PARTIAL RISK
<PAGE>

                              To PacifiCare:    P.O. Box 6006
                                                Cypress, CA  90630-0006
                              ATTENTION:        PRESIDENT

                              To Hospital:      Desert Valley Hospital
                                                16850 Bear Valley Road
                                                Victorville, CA  92392
                              ATTENTION:        Administration

                              To IPA:           Prime Care Medical Group of
                                                Chino Valley
                                                1915 West Redlands Blvd, Ste 111
                                                Redlands, CA  92373-8050
                              ATTENTION:        Administration

                                    All notice shall be deemed given on the date
of delivery if delivered personally or on the day three (3) business days after
such notice is deposited in the United States mails, addressed and sent as
provided above.

12.      MISCELLANEOUS

         12.01    PROTECTION OF SUBSCRIBER - IPA may not impose any limitations
on the acceptance of Subscribers for care or treatment that it does not impose
on other patients of the IPA. Neither PacifiCare, IPA nor Hospital may request,
demand, require or seek directly or indirectly the transfer, discharge or
removal of any Subscriber for reasons of Subscriber's need for, or utilization
of, Medially Necessary Medical or Hospital Services, except in accordance with
the procedures established for such action. IPA shall not refuse or fail to
provide Medically Necessary Medical Services to any Subscriber. Procedures for
removal, discharge or transfer of Subscribers shall be mutually agreed upon
between IPA and PacifiCare consistent with the Secure Horizons Medical and
Hospital Plan.

         12.02    OTHER AGREEMENTS - Nothing in this Agreement shall prevent
PacifiCare and IPA from contracting with each other for provision of services
not covered by this Agreement.

         12.03    REFUSAL BY PHYSICIAN - If IPA or any of its Member
Physicians refuses Medical Services to a Subscriber assigned to IPA for any
reason whatsoever, it shall remain the responsibility of IPA to assure that such
Subscriber receives Medical Services consistent with the terms of this
Agreement.

         12.04    CONFIDENTIAL AND PROPRIETARY INFORMATION

                  12.04.01 Information Confidential and Proprietary to
PacifiCare - IPA acknowledges that all PacifiCare Subscribers participating in a
Secure Horizons Medical and Hospital Plan individually or through an employer
group and receiving Medical Services shall be Subscribers of PacifiCare.
Subscriber and

PRIME CARE                          26                      MEDICAL PARTIAL RISK
<PAGE>

employer group information shall include, without limitation, the names,
addresses and telephone numbers of all Subscribers; member, employer and
administrative service manuals and all forms related thereto; and records, files
(other than patient medical files) and lists contained in IPA and PacifiCare
files.

                  IPA acknowledges that all such information is confidential and
proprietary to PacifiCare and that such Subscriber and employer group
information contains valuable trade secrets of PacifiCare.

                  All PacifiCare Subscriber agreements and the information
contained therein regarding PacifiCare, IPA, employer groups, Subscribers or the
financial arrangements between a hospital, IPA and PacifiCare is confidential
and proprietary to PacifiCare.

                  IPA shall maintain all Subscriber information and other
PacifiCare trade secret information confidential. IPA shall not disclose or use
any confidential and proprietary information for its own benefit or gain either
during the term of this Agreement or after the date of termination of this
Agreement; provided, however, that IPA may use the name, address and telephone
number or other medical information of a PacifiCare Subscriber if Medically
Necessary for the proper treatment of such Subscriber or upon express prior
written permission of PacifiCare or the Subscriber.

                  12.04.02 Information Confidential and Proprietary to IPA - IPA
shall provide PacifiCare with a written description of all information
proprietary to IPA which is confidential and contains trade secrets of IPA ("IPA
Information"). PacifiCare shall maintain IPA Information confidential.
PacifiCare shall not disclose or use any IPA Information for its own benefit
either during the term of this Agreement or after the effective date of
termination of this Agreement. Upon termination of this Agreement, PacifiCare
shall provide and return to IPA all IPA Information in its possession in a
manner to be specified by IPA. PacifiCare shall cooperate with IPA in
maintaining the confidentiality of IPA Information at all times.

                  12.04.03 Solicitation of PacifiCare Subscribers or Employer
Groups - IPA shall not directly or indirectly engage in the practice of
solicitation or the patronage of PacifiCare's Subscribers or employer groups
without PacifiCare's prior written consent. Solicitation shall mean conduct by
an officer, agent, employee or Member Physician of IPA or its assignee or
successor during the Initial Term or any subsequent term of this Agreement and
continuing for a period of one (1) year after the effective date of termination
of this Agreement which may be reasonably interpreted as designed to persuade
PacifiCare Subscribers to discontinue their Subscriber agreements with
PacifiCare or to continue to receive health care services from IPA on a
fee-for-service basis or to encourage PacifiCare Subscribers to participate in
the prepaid health service plan offered by IPA, or any other prepaid health
service plan (the "Solicitation"). The breach of

PRIME CARE                          27                     MEDICARE PARTIAL RISK
<PAGE>

this Section 12.04.03 during any term of this Agreement shall be grounds for
termination of this Agreement pursuant to Section 7.01.02 of this Agreement.

         12.05    CONFIDENTIALITY OF THIS AGREEMENT - To the extent reasonably
possible, each party agrees to maintain this Agreement as a confidential
document and not to disclose the Agreement or any of its terms without the
approval of the other party.

         12.06    ASSIGNMENT - This Agreement and the rights, interests, and
benefits hereunder shall not be assigned, transferred, pledged, or hypothecated
in any way by IPA or PacifiCare and shall not be subject to execution,
attachment or similar process, nor shall the duties imposed herein be
subcontracted or delegated without the written consent of the other party.
Notwithstanding, PacifiCare may assign, transfer, pledge or hypothecate this
Agreement and its rights, interests and benefits hereunder to any entity which
has at least majority control of PacifiCare or to any entity of which
PacifiCare has at least majority control.

         12.07    INVALIDITY OF SECTIONS OF AGREEMENT - The unenforceability or
invalidity of any paragraph or subparagraph of any section or subsection of
this Agreement shall not affect the enforceability and validity of the balance
of this Agreement.

         12.08    WITHDRAWAL OF SUBSCRIBERS BY PACIFICARE - PacifiCare reserves
the right to withdraw from IPA all or part of the Subscribers from IPA whose
Medical Services are not being properly provided pursuant to this Agreement.
PacifiCare shall provide written notice to IPA of such withdrawal and the
reasons therefore. PacifiCare shall then allow IPA thirty (30) days from the
date of such notice to correct deficiencies. If such deficiencies are not
corrected to PacifiCare's satisfaction within said period, PacifiCare may
withdraw its Subscribers as provided in this Section 12.08 and remove IPA's
name from PacifiCare's marketing materials.

         12.09    TRANSFER OF SUBSCRIBERS - PacifiCare may require transfer of
Subscribers assigned to IPA for any reason; or, IPA may request transfer of
Subscribers assigned to it by PacifiCare to other IPAs for cause or if the
capacity of IPA is overburdened so that the provision of Medical Services as
required by this Agreement is affected; all such transfers shall be consistent
with the PacifiCare Provider Policies and Procedures Manual.

         12.10    CAPTIONS - Captions in this Agreement are descriptive only and
do not affect the intent or interpretation of the Agreement.

         12.11    AMENDMENT - This Agreement may be amended or modified only by
mutual written consent of the parties. Notwithstanding the foregoing sentence,
PacifiCare may amend this Agreement upon thirty (30) days written notice to IPA
in order to maintain compliance with applicable federal and state laws;
provided, however, any such

PRIME CARE                          28                      MEDICAL PARTIAL RISK
<PAGE>

amendment which affects a material duty or responsibility of IPA and has a
material adverse economic effect upon IPA as reasonably demonstrated by IPA to
PacifiCare, shall be subject to the provisions of Section 12.12 below.

         12.12    MODIFICATIONS OF THIS AGREEMENT AND/OR PACIFICARE PROVIDER
POLICIES AND PROCEDURES MANUAL AND/OR PACIFICARE HEALTH PLAN - Anything to the
contrary herein notwithstanding, in the event of any material modification of
this Agreement and/or the Pacificare Provider Policies and Procedures Manual
and/or the Secure Horizons Medical and Hospital Plan that (i) affects a material
duty or responsibility of IPA, and (ii) causes a material adverse economic
effect to IPA, IPA and PacifiCare shall seek to agree to an amendment to this
Agreement which satisfactorily addresses the effect on IPA's material duty or
responsibility and reimburses the material economic detriment caused to IPA. In
the event such an agreement cannot be reached within sixty (60) days after the
date PacifiCare gives IPA written notice of such modification, such modification
shall not be effective.

         12.13    TERMS; SECTIONS - Unless otherwise indicated, all terms in any
appropriate attachments, addendums and amendments hereto shall have the same
meaning attributed to such terms in the body of this Agreement and references to
section numbers are to the appropriate sections of this Agreement.

         12.14    IPA'S AUTHORIZED REPRESENTATIVE - Unless otherwise indicated
in writing to PacifiCare, IPA warrants and authorizes its administrator to act
as its fully authorized representative to represent IPA and Member Physicians
in this Agreement and to receive any and all communications and notices
hereunder.

         12.15    ATTORNEYS' FEES AND COSTS - If any action at law or suit in
equity is brought to enforce or interpret the provisions of this Agreement or
to collect any monies due hereunder, the prevailing party shall be entitled to
reasonable attorneys' fees and reasonable costs, together with interest thereon
at the highest rate provided by law, in addition to any and all other relief to
which it may otherwise be entitled.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
_____________________________________, California, on ________________, 19___.

IPA                                     PACIFICARE OF CALIFORNIA

By: /s/                                 By: /s/
   ----------------------------------      ----------------------------------
Title Executive Vice President          Title:
     --------------------------------
Tax ID#
       ------------------------------

PRIME CARE                          29                      MEDICAL PARTIAL RISK
<PAGE>

                                   Schedule 1

This contract is a representative example of the following substantially similar
contracts to which subsidiaries of the Company and Pacificare are parties.
Pursuant to Instruction 2 of Item 601 of Regulation S-K, the Company is listing
the names of the additional contracts.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Chino Valley, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Corona, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Hemet Valley, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Inland Valley, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Moreno Valley, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Redlands, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Riverside, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Sun City, Inc.

IPA Medicare Partial Risk Services Agreement Between Pacificare of California
and Prime Care Medical Group of Temecula, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]