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                                                                   EXHIBIT 10.18

                                 STANDARD FORM
                         MULTI-TENANCY INDUSTRIAL LEASE
                                  (TRIPLE NET)

Landlord       Eastgroup Properties, a Maryland Real Estate Investment Trust,
               c/o Hewson Properties, Inc.,
Tenant         Anasazi, Inc., a Delaware Corporation

                          Dated as of January 31, 1997

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                     <C>
1. Defined Terms ....................................................................     1
2. Leased Premises ..................................................................     2
     (a) Property to be Leased ......................................................     2
     (b) Common Areas ...............................................................     2
     (c) Reserved Rights of Landlord ................................................     2
3. Completion of Premises ...........................................................     3
     (a) Plans ......................................................................     3
     (b) Scheduled Commencement Date ................................................     3
     (c) Remedy .....................................................................     3
     (d) Changes ....................................................................     3
     (e) Ready for Occupancy ........................................................     3
     (f) Construction Representative ................................................     4
     (g) Early Entry ................................................................     4
     (h) Quality of Construction ....................................................     4

4. Term .............................................................................     4
5. Rent .............................................................................     4
     (a) Fixed Rent .................................................................     4
     (c) Pro Rata Rent ..............................................................     5
     (d) Net Lease ..................................................................     5
     (e) Reimbursable Expenses ......................................................     5
6. Security .........................................................................     6
     (a) Security Deposit ...........................................................     6
7. Use ..............................................................................     7
     (a) General ....................................................................     7
     (b) Compliance with Law ........................................................     7
     (c) Existing Title and Condition of Premises ...................................     7
     (d) Signs ......................................................................     7
     (e) Governmental Regulation ....................................................     8
     (f) Security Devices ...........................................................     8
8. Maintenance and Repairs ..........................................................     8
     (a) Operating Expenses .........................................................     8
     (b) Tenant's Maintenance .......................................................     9
     (c) Landlord's Obligations to Repair ...........................................     9
     (d) Surrender ..................................................................     9
9. Utilities ........................................................................     9
10. Alterations and Additions .......................................................    10
     (a) Limitation .................................................................    10
     (b) Liens ......................................................................    10
     (c) Removal ....................................................................    10
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<TABLE>
<S>                                                                                   <C>
11. Insurance .......................................................................    10
     (a) General Liability ..........................................................    10
     (b) Extended Coverage ..........................................................    10
     (c) Policies ...................................................................    11
     (d) Waiver of Subrogation ......................................................    11
     (e) Tenant's Contents ..........................................................    11
     (f) Workmen's Compensation .....................................................    12
12. Indemnity; Exemption of Landlord from Liability .................................    12
     (a) General ....................................................................    12
     (b) Tenant's Business ..........................................................    12
13. Damage or Destruction; Obligation to Rebuild ....................................    12
     (a) Landlord's Obligation to Rebuild ...........................................    12
     (b) Abatement of Rent ..........................................................    12
     (c) Option to Terminate ........................................................    12
     (d) Uninsured Casualties .......................................................    13
     (e) Tenant's Waiver ............................................................    13
14. Taxes ...........................................................................    13
     (a) Tenant's Share of Property Taxes ...........................................    13
     (b) Tenant's Personal Property .................................................    13
     (c) Rent Tax ...................................................................    14
15. Condemnation ....................................................................    14
     (a) Rent Reduction or Lease Termination ........................................    14
     (b) Award ......................................................................    14
16. Assignment and Subletting .......................................................    15
     (a) Consent ....................................................................    15
     (b) Tenant's Continuing Liability ..............................................    15
     (c) Information ................................................................    15
     (d) Excess Sublease Rental .....................................................    15
     (e) Release ....................................................................    15
     (f) Controlled Entity ..........................................................    16
     (g) Attorneys' Fees ............................................................    16
17. Defaults; Remedies ..............................................................    16
     (a) Defaults ...................................................................    16
     (b) Remedies ...................................................................    17
     (c) Late Charges ...............................................................    19
     (d) Payment or Performance by Landlord .........................................    19
18. Miscellaneous ...................................................................    19
     (a) Estoppel Certificate .......................................................    19
     (b) Landlord's Liability .......................................................    20
     (c) Construction ...............................................................    20
     (d) Interest on Past-Due Obligations ...........................................    20
     (e) Time of Essence ............................................................    20
     (f) Counterparts ...............................................................    20
     (g) Incorporation of Prior Agreements; Amendments ..............................    20
     (h) Notices ....................................................................    20
     (i) Waivers ....................................................................    20
     (j) Recording ..................................................................    21
     (k) Holding Over ...............................................................    21
     (l) Covenants and Conditions ...................................................    21
     (m) Binding Effect .............................................................    21
     (n) Subordination ..............................................................    21
     (o) Attorneys' Fee .............................................................    21
     (p) Landlord's Access ..........................................................    21
     (q) Auctions ...................................................................    21
     (r) Merger .....................................................................    22
     (s) Joint and Several Liability ................................................    22
     (t) Individual Liability .......................................................    22
     (u) Attornment .................................................................    22
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<TABLE>
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     (v) Lenders Right to Cure ......................................................    22
     (w) Revisions to Lease .........................................................    22
     (x) Administrative Charge ......................................................    22
19. Toxic Materials .................................................................    23
     (a) Definitions ................................................................    23
     (b) Prohibition on Hazardous Materials .........................................    23
     (c) Exception to Prohibition ...................................................    24
     (d) Compliance with Environmental Laws .........................................    24
     (e) Environmental Notices ......................................................    24
     (f) Environmental Indemnity ....................................................    24
     (g) Remedial Work ..............................................................    25
     (h) Landlord's Option ..........................................................    25
     (i) Injunctive Relief ..........................................................    25
     (j) Self-Help ..................................................................    25
     (k) Other Tenants ..............................................................    25
     (l) Environmental Inspection ...................................................    25
     (m) Surrender of Premises-Environmental Considerations .........................    26
</TABLE>

Exhibit A The Premises
Exhibit B Preliminary Plans
Exhibit D Hazardous Materials
Exhibit E Option to Extend Lease Term
Exhibit F First Right of Refusal
Exhibit G First Right of Refusal Floor Plan
Exhibit H Project

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         1. DEFINED TERMS. Each reference in this Lease to any of the following
terms shall incorporate the data stated for that term. Other terms are as
defined in the Lease.

<TABLE>
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(a)  LANDLORD AND LANDLORD'S            EastGroup Properties
     ADDRESS (SUBPARAGRAPH              c/o Hewson Properties, Inc.
     18(h)):                            4636 East University Drive
                                        Suite 265
                                        Phoenix, Arizona  85034

(b)  TENANT AND TENANT'S                ANASAZI, Inc., ATTN: STEVE GREENSPAN
     ADDRESS FOR NOTICES                7500 N. Dreamy Draw Drive, Suite 120
     (SUBPARAGRAPH 18(H)):              Phoenix, Arizona  85020-4668

                                        cc: Mr. Chuck Nixon
                                            CB Commercial
(c)  STREET ADDRESS OF PREMISES             2346 North Central, #100
     (PARAGRAPH 2):                         Phoenix, Arizona  85004

     See Page 1(a)
                                        --------------------------------------

(d)  APPROXIMATE SQUARE                 Approximately A-104 - 13,200 SF
     FOOTAGE OF PREMISES                      "       A-103 -  5,881 SF
     (PARAGRAPH 2)                            "       A-102 -  8,600 SF

(e)  PROJECT IN WHICH PREMISES          Metro Business Park Phase I
     ARE LOCATED                        which consists of three (3) buildings
     (PARAGRAPH 2)                      on Exhibit A

(f)  LANDLORD'S CONSTRUCTION            Cathleen R. Yeager
     REPRESENTATIVE (SUBPARAGRAPH
     3(f)):                              --------------------------------------

                                        --------------------------------------

(g)  TENANT'S CONSTRUCTION              Steve Greenspan
     REPRESENTATIVE (SUBPARAGRAPH
     3(f))                              --------------------------------------

                                        --------------------------------------

(h)  TERM (PARAGRAPH 4):                A104 - 2/15-97 -  3/31/00
                                        A102 - 4/01/97 -  3/31/00
                                        A103 - 4/01/97 - 11/30/01

(i)  SCHEDULE COMMENCEMENT              12:01 a.m. on
     DATE (PARAGRAPH 4):                A104 - February 15, 1997
                                        A102 & A103 - April 1, 1997

(j)  FIXED RENT (SUBPARAGRAPH
     5(a)):                             2/15/97 -  3/31/97 @  $ 5,105.99/NNN/  (A104)
                                        4/01/00 -  3/31/00 @  $18,000.00/NNN/ Month (All)
                                        4/01/00 - 11/30/01 @  $ 3,234.55/NNN/ Month (A103)

                                        --------------------------------------

                                        --------------------------------------

                                        --------------------------------------
                                                                             per month
                                        ------------------------------------

(k)  RENTAL PERIOD                      February 15, 1997 - November 30, 2001
     SUBPARAGRAPH 5(a)):
                                        --------------------------------------

(l)  SECURITY DEPOSIT                   $27,000.00
     PARAGRAPH 6(a)):
                                        --------------------------------------

                                        --------------------------------------
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1.(c) STREET ADDRESS OF PREMISES.       11048 N. 23rd Avenue
                                        Suites A102-A104
                                        Phoenix, AZ  85029

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         (m)  PERMITTED USES (PARA-         Data Center, Call Center and
              GRAPH 7):                     -----------------------------------
                                            general office use.
                                            ------------------------------------

         (n) CLEANING DEPOSIT (SUB-         Waived
             PARAGRAPH 8(e)):               ------------------------------------

                                            ------------------------------------

         (o) TENANT'S SHARE OF              78.64%; provided, however, if any
             OPERATING EXPENSES             such Expenses or Taxes are not
             (PARAGRAPH 8), IN-             specifically identifiable as
             SURANCE EXPENSES (PARA-        attributable solely to the Building
             GRAPH 11) AND PROPERTY         and the real property immediately
             TAXES (PARAGRAPH 14):          adjacent to the Building but are
                                            attributable to the Project,
                                            Tenant's Share of such Expenses and
                                            Taxes shall be 27.57%

         (p) LIABILITY INSURANCE            $2,000,000.00
             (SUBPARAGRAPH 11(a)):          ------------------------------------

                                            ------------------------------------

         2. LEASED PREMISES. (a) PROPERTY TO BE LEASED. Landlord hereby leases
to Tenant, and Tenant hereby leases from Landlord, subject to the terms and
conditions contained herein certain floor space (the "Premises") located in the
building (the "Building") located (or to be constructed) on that certain real
property located at the street address set forth in paragraph 1 hereof (the
"Property"). The Building is located in Landlord's Project set forth in
paragraph 1 above. The Premises, which are more particularly described on
Exhibit A attached hereto and incorporated herein by this reference, shall be
deemed to extend from the top surface of subfloor to the bottom surface of roof
above but shall not include the common stairways, stairwells, hallways,
accessways, and pipes, ducts, conduits, wires and appurtenant fixtures serving
exclusively or in common other parts of the Building, and (if the Premises
include less than the entire rentable area of any floor) shall not include the
remainder of the Floor Common Area (as defined below). The Approximate Square
Footage of the Premises is set forth in paragraph 1 above.

         (b) COMMON AREAS. Tenant shall have, as appurtenant to the Premises,
rights to use in common, subject to reasonable rules from time to time made by
Landlord of which Tenant is given notice:

                  (i) The common stairways and accessways, loading docks and
         platforms and any passageways thereto, and the common pipes, ducts,
         conduits, wires appurtenant equipment serving the Premises;

                  (ii) If the Premises include less than the entire rentable
         area of any floor, the common lobbies, hallways, toilets and other
         common facilities (the "Floor Common Area"); and

                  (iii) Common walkways, sidewalks, and driveways necessary for
         access to the Building; greenbelt areas; and except for parking spaces
         which may be reserved for persons other than Tenant, parking spaces or
         area from time to time maintained on the Project for use by tenants in
         and visitors to the Building and, to the extent from time to time
         arranged by Landlord, maintained on adjacent real property for such
         use.

         (c) RESERVED RIGHTS OF LANDLORD. Notwithstanding the foregoing,
Landlord reserves the right from time to time, without unreasonable interference
with Tenant's use:

                  (i) To install, use, maintain, repair and replace pipes,
         ducts, conduits, wires and appurtenant meters and equipment for service
         to other parts of the Building above the ceiling surfaces, below the
         floor surfaces, within the walls and in the central core areas, and to
         replace any pipes, ducts, conduits, wires and appurtenant meters and
         equipment included in the Premises which are so located or located
         elsewhere outside the Premises;

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                  (ii) To alter or relocate any other common facility; provided,
         however, that substitutions are substantially equivalent or better in
         quality; and

                  (iii) To alter the boundaries of the Property, grant easements
         on the Property and dedicate for public use portions thereof without
         Tenant's consent, provided that no such grant or dedication shall
         unreasonably interfere with Tenant's use of the Premises or otherwise
         cause Tenant to incur cost or expense.

         3. COMPLETION OF PREMISES. (a) PLANS. Landlord and Tenant have approved
the preliminary plans and outline specifications (the "Preliminary Plans")
identified in Exhibit B for the construction of improvements in and to the
Premises. If necessary, Tenant shall cause to be prepared final plans and
specifications (the "Final Plans") substantially in conformity with the
Preliminary Plans, which need not include working detail drawings. The term
"Plans" shall hereinafter mean the Preliminary Plans and, if and when prepared,
the Final Plans. The Final Plans, if necessary, shall be delivered to Tenant as
soon as reasonably possible from the date hereof, subject to any period of delay
encountered by Tenant in such preparation as a result of requests by Landlord
for changes in the Final Plans subsequent to the date hereof. Within ten (10)
days after delivery of the Final Plans, Tenant shall set forth in writing, with
particularity and precision, any corrections or changes necessary to bring the
Final Plans into substantial conformity with the Preliminary Plans, except that
Tenant may not object to any logical development or refinement of the
Preliminary Plans. Failure to deliver to Landlord written notice of any such
corrections or changes within said ten (10) day period shall constitute approval
of the Final Plans by Tenant. Following such approval of the Final Plans, both
parties shall endorse approval for filing purposes thereon, in duplicate, and
thereafter changes may be made only in accordance with subparagraph (d) below.

         (b) SCHEDULED COMMENCEMENT DATE. Tenant, at its sole expense, shall
proceed diligently with construction and completion of the Premises
substantially in accordance with the Plans. Tenant shall complete the Premises
and they shall be Ready for Occupancy (as defined below) by Tenant on
approximately the Scheduled Commencement Date set forth in paragraph 1 above;
provided, however, that such Scheduled Commencement Date shall be extended for a
period of time equal to the period of any delay or delays encountered by
Landlord affecting construction because of fire, earthquake, inclement weather,
or other acts of God, acts of the public enemy, riot, insurrection,
governmental regulations of the sales of materials or supplies or the
transportation thereof, strikes or boycotts, shortages of material or labor,
Tenant's early entry under the provisions of subparagraph (g) below, changes in
the Plans pursuant to subparagraph (d) below, or any other cause beyond the
control of Landlord.

         (d) CHANGES. Tenant shall have the right to request changes in the
Plans, which request shall not be unreasonably denied, provided, however, that:
(i) such right shall not be exercised unreasonably, (ii) no such request shall
affect any structural change in the Premises.

         (e) READY FOR OCCUPANCY. The Premises shall be deemed to be ready for
occupancy ("Ready for Occupancy") when the architect or engineer in charge of
the work of construction certifies: (i) that the work of construction has been
substantially completed in accordance with the Plans; and (ii) the date of such
completion. Tenant shall diligently complete, as soon as

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reasonably possible, any items work and adjustment not completed when the
Premises are Ready for Occupancy.

         (f) CONSTRUCTION REPRESENTATIVE. In connection with the original
construction of the Premises each party shall be bound by its Construction
Representative set forth in paragraph 1 above. A party may designate a
substitute Construction Representative by giving written notice to the other
party.

         (g) EARLY ENTRY. With the prior written consent of Landlord, Tenant
may, at any time prior to the commencement of the Term, at its sole risk, enter
upon and install such trade fixtures and equipment in the Premises as it may
elect; provided, however, that (ii) Tenant shall execute an indemnity agreement
in favor of Landlord in form and substance satisfactory to Landlord; (iii)
Tenant shall pay for and provide evidence of insurance satisfactory to Landlord;
and (iv) Tenant shall pay utility charges reasonably allocated to Tenant by
Landlord. Tenant shall not use the Premises for the storage of inventory or
otherwise commence the operation of business prior to the commencement of the
operation of business prior to the commencement of the Term without the express
prior written consent of Landlord.

         (h) QUALITY OF CONSTRUCTION. All work shall be done in a good and
workmanlike manner and in compliance with all applicable laws and lawful
ordinances, bylaws, regulations and orders of governmental authority and of the
insurers of the Improvements. Landlord assumes no liability for special,
consequential or incidental damages of any kind. There are no representations,
warranties or guaranties, express or implied, including warranties of
merchantability or use of the Premises, except as are expressly set forth
herein. Tenant hereby waives the benefit of any rule that disclaimers of
warranty shall be construed against Landlord.

         4. TERM. The Term of this Lease, which shall be for the period set
forth in paragraph 1 above, shall commence on the first to occur of the
following dates (the "Commencement Date") (it being agreed that if the Term of
this Lease shall not commence within one (1) year of the Scheduled Commencement
Date this Lease shall terminate and be of no further force and effect):

         (a) The date on which Suite A102 or A103 is ready for occupancy, or

         (b) The date on which Tenant actually commences to do business in
Suites A102 or A103.

         5. RENT. (a) FIXED RENT. Tenant shall pay Landlord as fixed rent for
the Premises a sum equal to the Fixed Rent set forth in paragraph 1 on or before
the first day of each and every calendar month during the Term of this Lease,
except that Fixed Rent for the first full calendar month of the Term shall be
payable simultaneously with the execution of this Lease by Tenant.

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         4. Term. (d) The commencement date on Suite A104 will be no later than
            February 15, 1997.

                  (e) The commencement date on Suites A103 and A102 will be no
            later than twelve (12) weeks after both parties have executed the
            lease unless as extended pursuant to paragraph 3(b).

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                  (c) PRO RATA RENT. Rent for any period during the Term which
            is for less than one month shall be a pro rata portion of the Rental
            Period installment. Rent shall be payable, without deduction or
            offset, in lawful money of the United States to Landlord at the
            address stated herein or to such other persons or at such other
            places as Landlord may designate in writing.

                  (d) NET LEASE. This Lease is what is commonly called a "net
            lease", it being understood that Landlord shall receive the Rent set
            forth in this paragraph free and clear of any and all impositions,
            taxes, except income taxes, liens, charges or expenses of any nature
            whatsoever in connection with its ownership and leasing of the
            Premises. In addition to the Rent provided in this paragraph, Tenant
            shall pay all impositions, taxes, insurance premiums, operating
            charges, costs and expenses which arise or may be contemplated
            under any provisions of this Lease during the Term. All of such
            charges, costs and expenses shall constitute additional rent, and
            upon the failure of Tenant to pay any of such costs, charges or
            expenses, Landlord shall have the same rights and remedies as
            otherwise provided in this Lease for the failure of Tenant to pay
            Rent. It is the intention of the parties hereto that Tenant shall in
            no event be entitled to any abatement of or reduction in Rent or
            additional rent payable hereunder, except as expressly provided
            herein.

                  (e) REIMBURSABLE EXPENSES. The sums payable by Tenant for
            Operating Expenses, Insurance Expenses and Property, Taxes
            (hereinafter sometimes cumulatively referred to as the "Reimbursable
            Expenses") under subparagraphs 8(a), 11(b) and 14(a) of this Lease
            shall be paid in accordance with the following procedures:

                           (i) Landlord shall prepare an annual statement (the
                  "Annual Statement") setting forth the sum of the Reimbursable
                  Expenses for the calendar year ending on the prior December 31
                  and Tenant's Share thereof and setting forth the estimated
                  Reimbursable Expenses that will be incurred by Landlord during
                  the current calendar year ending on the next following
                  December 31 and Tenant's Share thereof.

                           (ii) Landlord shall endeavor to give to Tenant such
                  Annual Statement on or before March 1 of each calendar year
                  throughout the Term of the Lease, but Landlord's failure to
                  provide Tenant with an Annual Statement by said date shall not
                  constitute a

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                  2.(b) (iv)
                  Landlord shall provide, throughout the initial term and any
                  renewal option periods, employee and visitor parking in the
                  building area for one hundred (100) cars. All one hundred
                  (100) stalls shall be reserved and free for the initial term
                  and any renewal option periods. Parking will be uncovered and
                  the number of stalls will be reduced in proportion with their
                  leased square footage.

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                  waiver by Landlord of its right to require payment by Tenant
                  of Tenant's Share of estimated Reimbursable Expenses or actual
                  Reimbursable Expenses.

                           (iii) Tenant's Share of estimated Reimbursable
                  Expenses for the calendar year in which the Annual Statement
                  is received shall be divided by twelve (12) and one such
                  installment shall be paid concurrently with each rental
                  payment thereafter until receipt by Tenant of the next Annual
                  Statement. In addition, Tenant shall pay in full concurrently
                  with the first monthly rent payment due following receipt of
                  the Annual Statement an amount equal to the excess of the
                  monthly installment required to be paid under the most current
                  Annual Statement over the monthly installment made under the
                  preceding Annual Statement (or the amount specified in
                  subparagraph (v) below, as applicable) multiplied by the
                  number of months from January through the month in which the
                  Annual Statement is received by Tenant.

                           (iv) If Tenant's Share of actual Reimbursable
                  Expenses for the past calendar year as shown on the Annual
                  Statement is greater than the payments made by Tenant for that
                  calendar year, then concurrently with the first monthly rent
                  payment due following receipt by Tenant of the Annual
                  Statement, Tenant shall pay in full an amount equal to such
                  excess. If Tenant's Share of actual Reimbursable Expenses for
                  the past calendar year as shown on the Annual Statement is
                  less than the payments made by Tenant for that calendar year,
                  the amount of such overpayment shall be credited against the
                  next monthly rent payment(s) falling due.

                           (vi) Even though the Term has expired and the Tenant
                  has vacated the Premises when the final determination is made
                  of Tenant's Share for the calendar year in which the Lease
                  expires, Tenant shall immediately pay the excess of Tenant's
                  Share for the portion of such year in which Tenant was in
                  occupancy over the estimated payments made by Tenant for that
                  calendar year and, conversely, any overpayment made shall be
                  immediately rebated by Landlord to Tenant.

                           (vii) An administrative charge equal to five percent
                  (5%) of the Reimbursable Expenses shall be added to each
                  installment payment due under this subparagraph (e) (including
                  the estimated payments and any reconciliation payment), which
                  administrative charge shall be reflected in the Annual
                  Statement, shall be payable in addition to the Reimbursable
                  Expenses and shall be intended to compensate Landlord for
                  supervision, administrative and clerical costs.

                           (viii) Each Annual Statement shall be prepared in
                  accordance with GAAP and each determination and Annual
                  Statement, certified by Landlord, shall be final and
                  conclusive on both parties, including any determination made
                  by Landlord of the appropriate estimated payment during the
                  period prior to issuance of the first Annual Statement to
                  Tenant.

                  6. SECURITY. (a) SECURITY DEPOSIT. Tenant shall deposit with
         Landlord upon execution hereof the Security Deposit set forth in
         paragraph 1 above as security for Tenant's faithful performance of
         Tenant's obligations hereunder. If Tenant fails to pay Rent or any
         other charges payable by Tenant hereunder, or otherwise defaults with
         respect to any provision of this Lease, Landlord may at its option use,
         apply or retain all or any portion of the Security Deposit (i) to
         remedy Tenant's defaults in the payment of Rent or any other sums
         payable by Tenant pursuant to the terms hereof, (ii) to repair any
         damage to the Premises, (iii) to clean and otherwise maintain the
         Premises, or (iv) to compensate Landlord for any other loss or damage
         which Landlord may suffer thereby. If Landlord so uses or applies all
         or any portion of the

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         5.e(ix)

         Tenant may audit the Landlord records pertaining to Tenant only. The
         audit will take place at the Hewson Properties, Inc., headquarters with
         time given to the Landlord to pull records out of storage. Tenant may
         have up to nine months after receipt of actual expense reconciliation
         for the prior year to audit Landlord's records.

         If audit reveals ten percent (10%) or over miscalculation, then
         Landlord will pay for the audit.

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            Security Deposit, Tenant shall, within ten (10) days after written
            demand therefor, deposit cash with Landlord in an amount sufficient
            to restore the Security Deposit to the full amount hereinabove
            stated and Tenant's failure to do so shall be a breach of and a
            default under this Lease. Landlord shall not be required to keep the
            Security Deposit separate from its general accounts. If Tenant
            performs all of Tenant's obligations hereunder, the Security
            Deposit, or so much thereof as has not theretofore been applied by
            Landlord, shall be returned, without payment of interest or other
            increment for its use, to Tenant (or, at Landlord's option, to the
            last assignee, if any, of Tenant's interest hereunder) at the
            expiration of the Term hereof, after Tenant has vacated the
            Premises.

                  7. USE. (a) GENERAL. The Premises shall be used and occupied
            only for the Permitted Uses set forth in paragraph 1 above and for
            no other purpose.

                  (b) COMPLIANCE WITH LAW. Tenant shall, at Tenant's sole cost
            and expense, comply with all present and future laws, ordinances,
            orders, declarations of covenants and restrictions, rules,
            regulations and requirements of all federal, stare and municipal
            governments, courts, departments, or any other body exercising
            functions similar to those of any of the foregoing, foreseen or
            unforeseen, ordinary as well as extraordinary; which may be
            applicable to the Premises, the Building, and the Property or to
            the use or manner of use of the Premises. Tenant shall obtain any
            required certificate of occupancy with respect to its use of the
            Premises, the Building and the Property within thirty (30) days from
            the Commencement Date and shall deliver a copy thereof to Landlord
            within such thirty (30) day period; provided, however, Landlord
            shall obtain any certificate of occupancy required for the shell of
            the Building and any improvements to the Premises to be made by
            Landlord pursuant to paragraph 3 above. Tenant shall not use or
            permit the use of the Premises in any manner that will tend to
            create waste or a nuisance.

                  (c) EXISTING TITLE AND CONDITION OF PREMISES. Tenant hereby
            accepts the Premises in their condition existing as of the
            Commencement Date and also accepts the Premises and this Lease
            subject to all applicable zoning, municipal, county and state laws,
            ordinances and regulations governing and regulating the use of the
            Premises, subject to all covenants, conditions and restrictions
            affecting the Property, Project or Premises and subject to all
            liens, claims and encumbrances currently existing against the
            Premises or any part thereof, including all matters disclosed by any
            of the foregoing or by any exhibits attached hereto. Landlord, in
            accordance with (and except as otherwise provided in) subparagraph
            8(c) below, shall be responsible for causing the roof and bearing
            walls of the Premises to be in good condition and repair at the
            Commencement Date and shall also cause the heating, ventilating and
            air conditioning system, the plumbing system and the electrical
            system to be in good operating condition as of the Commencement
            Date. All such systems shall be deemed in the condition required at
            the Commencement Date unless Tenant gives Landlord written notice of
            any defects in such systems on or before thirty (30) days after the
            Commencement Date. Except for any representation or warranty which
            may be specifically set forth in this Lease, Tenant acknowledges
            that neither Landlord nor Landlord's agents have made any
            representations or warranties as to the Premises, including without
            limitation, any representation or warranty as to condition or
            fitness of the Building or the suitability of the Building for the
            conduct of Tenant's business.

                  (d) SIGNS. Tenant shall not erect or install on any exterior
            or interior window, any door, or any exterior wall any signs,
            advertising media, placards, trademarks, drapes, screens, tinting
            materials, shades, blinds or similar items, without first securing
            Landlord's written permission. Landlord's permission will not be
            unreasonably withheld. All signs shall comply with all applicable
            governmental requirements, shall conform

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            to the design, motif and decor of the Property and shall be in good
            taste, as determined in Landlord's reasonable discretion. Landlord
            may also establish such sign criteria as Landlord deems appropriate
            for the Property and Tenant shall cause all signs which are located
            on the Premises and are visible from outside the Premises to conform
            to such sign criteria. Tenant shall properly maintain all approved
            signs. Upon expiration of the Lease, Tenant promptly shall remove
            all signs placed in and around the Premises by Tenant and shall
            repair any damage to the Premises, Building or other portions of the
            Project caused by the removal of such signs.

                  (e) GOVERNMENTAL REGULATION. In addition to the general
            obligation of Tenant to comply with laws and without limitation
            thereof, Landlord shall not be liable to Tenant nor shall this Lease
            be affected if any parking privileges appurtenant to the Premises,
            the Building and the Property are impaired by reason of any
            moratorium, initiative, referendum, statute, regulation, or other
            governmental decree or action which could in any manner prevent or
            limit the parking rights of Tenant hereunder. See Page 8A. Any
            governmental charges or surcharges or other monetary obligations
            imposed relative to parking rights with respect to the Premises, the
            Building and the Property shall be considered as Property Taxes and
            shall be payable by Tenant under the provisions of paragraph 14
            hereof.

                  (f) SECURITY DEVICES. Tenant may not install any alarm boxes,
            foil protection tape or other security equipment on the Premises
            without Landlord's prior written consent. Landlord's permission
            will not be unreasonably withheld.

                  8. MAINTENANCE AND REPAIRS. (a) OPERATING EXPENSES. As
            additional rent during the Term, Tenant shall pay to Landlord an
            amount equal to the product obtained by multiplying (i) Tenant's
            Share of Operating Expenses (as set forth in paragraph 1 above) by
            (ii) the amount which Landlord expends for Operating Expenses for
            the Term hereof. "Operating Expenses" shall include all reasonable
            and necessary expenses actually incurred by Landlord for the
            operation, cleaning, maintenance (including but not limited to
            preventive maintenance), repair and property management of the
            Building and the Property and, if applicable, the Project,
            including, without limitation, the roof and walls (other than for
            the structural repair of such roof and walls), utility systems and
            related equipment serving all of the Building or the Project and all
            walks, driveways, parking areas, loading areas, lawns and
            landscaping. Among the items included in Operating Expenses under
            the foregoing definition are expenses for utilities furnished to the
            common areas of the Building and Property and fees and charges paid
            to the property manager for the Building; provided, however, the
            amount of the property manager's fee included in Operating Expenses
            of the Building for any calendar year shall not exceed an amount
            equal to five percent (5%) of the gross receipts received by
            Landlord from the Building for such calendar year. If Landlord
            determines that a utility system and related equipment or portion
            thereof serves one or more tenant suites in addition to the Premises
            but less than all of the tenant suites in the Building or the
            Project, the system and equipment or portion thereof, as applicable,
            which serves the Premises and such additional suites, to the extent
            the operation, cleaning, maintenance, repair and/or replacement
            thereof is not the responsibility of the applicable utility company,
            shall be deemed a part of the Building and the Project for the
            purposes of this subparagraph 8(a), except that the amount of the
            reimbursement by Tenant to Landlord for such items shall be
            separately stated and shall be determined by multiplying the
            reasonable and necessary expenses incurred by Landlord for such
            items by the percentage which the Premises is of the total space
            leased or available for lease which is served by such systems and
            equipment or portion thereof instead of by the Tenant's Share of
            Operating Expenses as set forth in paragraph 1. Sums payable by
            Tenant pursuant to this subparagraph shall be paid in accordance
            with the provisions of subparagraph 5(e) above. Landlord may enter
            upon the Premises to the extent necessary or appropriate to do any
            work described in this subparagraph 8(a), Landlord shall not be
            liable for any inconvenience, annoyance, disturbance, loss of
            business or other damage of Tenant by reason of performing any such
            work or on account of bringing materials, tools, supplies or
            equipment into or through the Premises during the course thereof,
            and the obligations of Tenant under this Lease shall nor be affected
            thereby.

                           Capital Expenditures will be amortized over the
                           life of the item. ADA costs will not be included
                           in Operating Expenses.

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            8. operating expenses will not exceed more than a five percent (5%)
            increase on controllable expenses. (Excluding property taxes
            and insurance) per year. The first year's expenses will be the
            actual expenses incurred in 1997.

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                                      8(a)

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                  (b) TENANT'S MAINTENANCE. Tenant shall, at Tenant's sole cost
            and expense, keep and maintain the Premises, subfloors and floor
            coverings in good repair and in a clean and safe condition,
            casualties covered by insurance coverage excepted to the extent of
            proceeds received by Landlord. Tenant's obligations shall include
            the cleaning, operation, maintenance, repair and replacement of all
            utility systems and related equipment and portions thereof located
            within the Premises except to the extent Landlord performs such
            cleaning, operation, maintenance, repair and/or replacement under
            subparagraph 8(a) above because all or portions of the system and
            equipment serve more than one tenant suite. Tenant shall, at
            Tenant's own expense, immediately replace all interior, exterior or
            other glass in or about the Premises that may be broken during the
            Term with glass at least equal to the specification and quality of
            the glass so replaced. If Tenant fails to perform Tenant's
            obligations under this subparagraph, Landlord may at its option
            enter upon the Premises after ten (10) days prior written notice to
            Tenant and put the same in good order, condition and repair, and the
            cost thereof together with interest thereon at the rate of eighteen
            percent (18%) per annum shall become due and payable as additional
            rental to Landlord together with Tenant's next monthly Rent payment.
            Nothing herein shall imply any duty upon the part of Landlord to do
            any such work and the performance thereof by Landlord shall not
            constitute a waiver of Tenant's default in failing to perform the
            same. Landlord may, during the progress of any such work in or on
            the Premises, keep and store therein all necessary materials, tools,
            supplies and equipment. Landlord shall not be liable for the
            inconvenience, annoyance, disturbance, loss of business or other
            damage of Tenant by reason of making such repairs or the performance
            of any such work, or on account of bringing materials, tools,
            supplies or equipment into or through the Premises during the course
            thereof, and the obligations of Tenant under this Lease shall not
            be affected thereby.

                  (c) LANDLORD'S OBLIGATIONS TO REPAIR. Landlord shall, at its
            expense, after written notice from Tenant, repair in a prompt and
            diligent manner any damage to structural portions of the roof and
            bearing walls of the Premises; provided, however, that if such
            damage is caused by an act or omission of Tenant or Tenant's agents,
            invitees, employees or contractors, then such repairs shall be at
            Tenant's expense, payable to Landlord pursuant to this paragraph.
            There shall be no abatement of Rent during the performance of such
            work. Landlord shall not be liable to Tenant for injury or damage
            that may result from any defect in the construction or conditions
            of the Premises and Tenant shall seek recovery for such injury or
            damage solely from Tenant's insurance and/or any other persons or
            entities which may be liable to Tenant. Tenant waives any right to
            make repairs at the expense of Landlord under any law, statute or
            ordinance now or hereafter in effect unless Tenant has given
            Landlord written notice of the need for such repairs, such repairs
            are the obligation of Landlord under this Lease and Landlord has
            failed to make the needed repairs or started the process of
            repairing within ten (10) business days from the receipt of such
            notice.

                  (d) SURRENDER. On the last day of the Term, or on any sooner
            termination of this Lease, Tenant shall surrender the Premises to
            Landlord in the same condition as when received, broom clean,
            ordinary wear and tear alone excepted. Tenant shall repair any
            damage to the Premises, the Building and the Project occasioned by
            the removal of Tenant's alterations and improvements (including,
            without limitation, its trade fixtures, furnishings and equipment),
            which repair shall include, without limitation, the patching and
            filling of holes and repair of structural damage.

                  9. UTILITIES. Tenant shall pay for water, gas, heat, light,
            power, telephone and other utilities and services supplied to the
            Premises, together with any taxes thereon. If any such services are
            not separately metered to Tenant, Tenant shall pay a reasonable
            proportion to be determined by Landlord of all charges jointly
            metered with other premises, and Landlord's determination thereof,
            in good faith, shall be conclusive. Landlord reserves the right to
            grant easements on the Premises, and to dedicate for public use
            portions thereof, without Tenant's

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         8.(b) TENANT'S MAINTENANCE. The cost of new HVAC units will be paid for
         by the Landlord and passed through to the Tenant over the life of the
         item as part of operating expenses.

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                                      9(a)
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consent provided that no such grant or dedication shall interfere with Tenant's
use of the Premises or otherwise cause Tenant to incur cost or expense. From
time to time upon Landlord's demand, Tenant shall execute, acknowledge and
deliver to Landlord, in accordance with Landlord's instructions, any and all
documents or instruments necessary to effect Tenant's covenants herein.

         10. ALTERATIONS AND ADDITIONS. (a) LIMITATION. Tenant shall not,
without Landlord's prior written consent, which permission shall not be
unreasonably withheld, make any alterations, improvements, additions, or utility
installations (which term "utility installations" shall include ducting, power
panels, fluorescent fixtures, space heaters, conduits and wiring) in, on or
about the Premises, except for interior nonstructural alterations to the
Premises costing less than Ten Thousand Dollars ($10,000) in the aggregate over
any one (1) year period. As a condition to giving such consent, Landlord may
require that Tenant agree to (i) remove any such alterations, improvements,
additions or utility installations at the expiration of the Term and restore the
Premises to their prior condition or, in the alternative, (ii) require that such
alterations, improvements, additions or utility installations shall become the
property of Landlord and shall be left by Tenant upon the expiration of the
Term. As a further condition to giving such consent, Landlord may require Tenant
to provide Landlord, at Tenant's sole cost and expense, lien and completion
bonds in an amount equal to one hundred five percent (105%) of the estimated
cost of such improvements to insure Landlord against any liability for
mechanics' and materialmen's liens and to insure completion of the work.

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

         (c) REMOVAL. Unless Landlord requires their removal as set forth in
subparagraph (a) above or otherwise consents to such removal, all alterations,
improvements, additions and utility installations which may be made on or to the
Premises shall become the property of Landlord and remain upon and be
surrendered with the Premises at the expiration of the Term. Notwithstanding the
provisions of this subparagraph (c), Tenant's machinery and equipment, other
than that which is affixed to the Premises so that it cannot be removed without
material damage to the Premises, shall remain the property of Tenant and may be
removed by Tenant subject to provisions of paragraph 8(d) above.

         11. INSURANCE. (a) GENERAL LIABILITY. Tenant at its sole cost and
expense shall maintain commercial general liability insurance ("Liability
Insurance") on an "occurrence basis" against claims for "personal injury,"
including without limitation, bodily injury, death or property damage, occurring
upon, in or about the Premises, the Building and the Property, such insurance to
afford immediate minimum protection, at the time of the inception of this Lease,
and at all times during the Term, to a limit of not less than Two Million
Dollars ($2,000,000) with respect to personal injury or death to any one or
more persons or to damage to property. Such insurance shall designate, and be
for the benefit of, Tenant as the named insured and Landlord as an additional
named insured. Such insurance shall also include coverage against liability
for bodily injury or property damage arising out of the use, by or on behalf of
Tenant, or any other person or organization, of an owned, non-owned, leased or
hired automotive equipment in the conduct of any and all operations called for
under this Lease. The limits of said insurance shall not, however, limit the
liability of Tenant hereunder.

         (b) EXTENDED COVERAGE. During the Term, Landlord shall procure and
maintain in full force and effect with respect to the Building, a policy or
policies of fire insurance with extended coverage endorsement attached,
including vandalism and malicious mischief coverage, and any other endorsements
(such as earthquake coverage) which Landlord may elect to obtain or which may be
required by the holder of any fee or leasehold mortgage, which insurance
coverage may be in an amount up to one hundred percent (100%) of the full
insurance replacement value (replacement cost new, including debris removal and
demolition thereof.

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         10. ALTERATIONS AND ADDITIONS. A response from the Landlord will be
given to Tenant within ten (10) business days from Tenant's written request.
Landlord will let the Tenant know at the time of approval if the alteration or
addition needs to be removed or restored at the time of such approval. If not
stated at that time then the Tenant will be under no obligation to remove or
restore the alteration or addition.

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Landlord shall further obtain rental abatement insurance against abatement or
loss of Rent in case of fire or other casualty, in an amount at lease equal to
the amount of the Rent payable by Tenant during one (1) year next ensuing as
reasonably determined by Landlord. Tenant shall pay to Landlord, in accordance
with provisions of subparagraph 5(e) above, an amount equal to Tenant's Share
of Insurance Expenses multiplied by the premium or premiums on insurance
maintained by Landlord pursuant to this subparagraph ("Insurance Expenses"),
with appropriate proration at the beginning and end of the Term.

         (c) POLICIES. Insurance required hereunder shall be by companies rated
A/X or better in "Best's Insurance Guide" licensed to do business in the state
in which the Premises are located and acceptable to Landlord and the holder of
any mortgage or deed of trust on the Premises or any part or portion thereof.
Tenant shall deliver to Landlord copies of policies of such insurance or
certificates evidencing the existence and amounts of such insurance with loss
payable clauses satisfactory to Landlord. No such policy shall be cancelable or
subject to reduction of coverage or other modification except after thirty (30)
days written notice to Landlord. Tenant shall, within ten (10) days of the
expiration of such policies, furnished Landlord with renewals or "binders"
thereof, or Landlord may order such insurance and charge the cost thereof to
Tenant, which amount shall be payable by Tenant upon demand. Each such policy or
certificate therefor issued by the insurer shall to the extent obtainable
contain (i) a provision that no act or omission of Tenant which would otherwise
result in forfeiture or reduction of the insurance therein provided shall affect
or limit the obligation of the insurance company to pay the amount of any loss
sustained and (ii) an agreement by the insurer that such policy shall not be
cancelled without at least thirty (30) days prior written notice by registered
mail to Landlord. Tenant shall not do or permit to be done anything which shall
invalidate the insurance policies referred to herein. If Tenant shall fail to
produce and maintain any insurance required to be maintained by it by virtue of
any provision of this paragraph, Landlord may, but shall not be required to,
procure and maintain the same, but at the expense of Tenant.

         (d) WAIVER OF SUBROGATION. Landlord and Tenant each hereby waive any
and all rights of recovery against the other, or against the partners, officers,
employees, agents and representatives of the other, for loss of or damage to
such waiving party or its property or the property of the other under its
control to the extent that such loss or damage is insured against under any
insurance policy in force at the time of such loss or damage. Tenant shall, upon
obtaining the policies of insurance required hereunder, give notice to the
insurance carrier or carriers that the foregoing mutual waiver of subrogation is
contained in the Lease.

         (e) TENANT'S CONTENTS. Tenant shall assume the risk of damage to any
fixtures, goods, inventory, merchandise, equipment, furniture and leasehold
improvements which remain the property of Tenant or as to which Tenant retains
the right of removal from the Premises, and Landlord shall not be liable for
injury to Tenant's business or any loss of income therefrom relative to such
damage. Tenant shall maintain the following insurance coverage with respect to
such items during the Term:

                 (i) Against fire, extended coverage, and vandalism and
         malicious mischief perils in an amount not less than ninety percent
         (90%) of the full replacement cost thereof;

                 (ii) Broad form boiler and machinery insurance on a blanket
         repair and replacement basis with limits per accident not less than the
         replacement cost of all leasehold improvements and of all boilers,
         pressure vessels, air conditioning equipment, miscellaneous electrical
         apparatus and all other insurable objects owned or operated by the
         Tenant or by others (other than Landlord) on behalf of Tenant in the
         Premises, or relating to or serving the Premises; and;

                 (iii) Business interruption insurance in such an amount as will
         reimburse Tenant for direct or indirect loss of earnings attributable
         to all such perils insured against in subparagraphs 11(e)(i) and (ii)
         hereinabove.

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<PAGE>   22

         (f) WORKMEN'S COMPENSATION. Tenant shall, at its own cost and expense,
keep and maintain in full force and effect during the Term, a policy or policies
of workmen's compensation insurance covering all Tenant's employees working in
the Premises, and shall furnish Landlord with certificates thereof.

         12. INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY. (a) GENERAL. In
addition to any other obligations of Tenant hereunder, including the obligations
of Tenant, to provide insurance, Tenant shall indemnify and hold Landlord
harmless for, from and against any and all claims arising from Tenant's use of
the Premises, or from the conduct of Tenant's business or from any activity,
work or things done, permitted or suffered by Tenant in or about the Premises or
elsewhere and shall further indemnify and hold Landlord harmless for, from and
against any and all claims arising from any breach or default in the performance
of any obligation on Tenant's part to be performed under the terms of this
Lease, or arising from any negligence of Tenant, or any of Tenant's agents,
contractors, or employees, and for, from and against all costs, attorneys' fees,
expenses and liabilities incurred in the defense of any such claim or any action
or proceeding brought thereon; and in case any action or proceeding be brought
against Landlord by reason of any such claim, Tenant upon notice from Landlord
shall defend the same at Tenant's expense by counsel satisfactory to Landlord;
provided, however, the foregoing indemnity shall not apply to claims made as a
result of the gross negligence or intentional misconduct of Landlord. Tenant, as
a material part of the consideration to Landlord for Landlord's execution of
this Lease, also hereby assumes all risk of damage to property or injury to
persons in, upon or about the Premises arising from any cause whatsoever; hereby
waives all claims in respect thereof against Landlord unless caused by
Landlord's gross negligence and agrees that all claims with respect thereto
shall be made solely against any insurance carried by Tenant and/or against any
other persons or entities which may be liable for such claims, unless caused by
Landlords gross
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         (b) TENANT'S BUSINESS. In addition to any other obligation of Tenant
hereunder, including any obligation of Tenant to provide insurance, Tenant
hereby agrees that Landlord shall not be liable for injury to Tenant's business
or any loss of income therefrom or for damage to the goods, wares, merchandise
or other property of Tenant, Tenant's employees, invitees, customers, or any
other person in or about the Premises, nor shall Landlord be liable for injury
to the person of Tenant or Tenant's employees, agents or contractors, whether
such damage or injury is caused by or results from fire, steam, electricity,
gas, water or rain, or from the breakage, leakage, obstruction or other defects
of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting
fixtures, or from any other cause whatsoever, resulting from conditions arising
upon the Premises, or from other sources or places, and regardless of whether
the cause of such damage or injury or the means of repairing, the same is
inaccessible to Tenant unless caused by Landlord's gross negligence. Instead,
Tenant shall seek recovery for any such injury, loss or damage solely from any
insurance carried by Tenant and/or from any other persons or entities which may
be liable to Tenant for such injury, loss or damage.

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         13. DAMAGE OR DESTRUCTION; OBLIGATION TO REBUILD. (a) LANDLORD'S
OBLIGATION TO REBUILD. If the Premises are damaged or destroyed during the Term,
Landlord shall, except as hereinafter provided, diligently repair or rebuild
them to substantially the condition in which they existed immediately prior to
such damage or destruction; provided that any damage which is estimated in good
faith by Landlord to be under Two Thousand Five Hundred Dollars ($2,500.00)
shall be repaired by Tenant, and Landlord shall reimburse Tenant upon demand for
expenses incurred in such repair work to the extent of any proceeds received by
Landlord from extended coverage insurance maintained pursuant to paragraph 11
above.

         (b) ABATEMENT OF RENT. Rent due and payable hereunder shall be abated,
but only to the extent of any proceeds received by Landlord from rental
abatement insurance maintained pursuant to paragraph 11 above, during the period
commencing with such damage or destruction and ending with a substantial
completion by Landlord of the work of repair or reconstruction which Landlord is
obligated or undertakes to do.

         (c) OPTION TO TERMINATE. If the Building or the Premises are damaged or
destroyed to the extent that Landlord determines that the same cannot, with
reasonable diligence, be fully repaired or restored by Landlord within one
hundred eighty (180) days after the date of the

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12. INDEMNITY: EXEMPTION OF TENANT FROM LIABILITY. (a) GENERAL. In addition to
any other obligations of Landlord hereunder, Landlord shall indemnify and hold
Tenant harmless for, from and against any and all claims arising from
Landlord's use of the Premises, or from the conduct of Landlord's business or
from any activity, work or things done, permitted or suffered by Landlord in or
about the Premises and all claims arising from any breach or default in the
performance of any obligation on Landlord's part to be performed under the
terms of this Lease, unless caused by Tenant's gross negligence.

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damage or destruction, the sole right of both Landlord and Tenant shall be the
option to terminate this Lease as hereinafter provided; provided, however,
Tenant shall not have the right to terminate this Lease unless Landlord
reasonably determines that the Premises cannot be so repaired or restored within
such one hundred eighty (180) day period of time. Landlord shall determine
whether the Building and, if applicable, the Premises can be fully repaired or
restored within the one hundred eighty (180) day period, and Landlord's
determination shall be conclusive on Tenant. Landlord shall notify Tenant of its
determination, in writing, within thirty (30) days after the date of the damage
or destruction. If Landlord determines that the Building, including the
Premises, can be fully repaired or restored within the one hundred eighty (180)
day period, or if it is determined that such repair or restoration cannot be
made within said period but no party having the right to do so elects to
terminate within thirty (30) days from the date of said determination, this
Lease shall remain in full force and effect and Landlord shall diligently repair
and restore the damage as soon as reasonably possible.

         (d) UNINSURED CASUALTIES. Notwithstanding anything contained herein to
the contrary, in the event of damage to or destruction of all or any portion of
the Building which is not fully covered (except for deductible amounts) by the
insurance proceeds received by Landlord under the insurance policies required to
be maintained pursuant to paragraph eleven (11) above or in the event that any
portion of such insurance proceeds must be paid over to or are retained by the
holder of any mortgage or deed of trust on the Property or Premises, Landlord
may terminate this Lease by written notice to Tenant, given within thirty (30)
days after the date of notice to Landlord that said damage or destruction is not
so covered or that the proceeds are not available for repair of the damage or
destruction. If Landlord does not elect to terminate this Lease, the Lease shall
remain in full force and effect and the Building shall be repaired and rebuilt
in accordance with the provisions for repair set forth in paragraph 8 above.

         (e) TENANT'S WAIVER. With respect to any destruction which Landlord is
obligated to repair or may elect to repair under the terms of this paragraph,
Tenant hereby waives all right to terminate this Lease pursuant to rights
otherwise presently or hereafter accorded by the provisions of Arizona Revised
Statutes Section 33-343 or other applicable laws to tenants, except as expressly
otherwise provided herein.

         14. TAXES. (a) TENANT'S SHARE OF PROPERTY TAXES. Tenant shall pay to
Landlord Tenant's Share of Property Taxes (as set forth in paragraph 1 hereof)
multiplied by the sum of the following: all real estate taxes and all other
taxes relating to the Premises, the Building and the Property, all other taxes
which may be levied in lieu of real estate taxes, assessments, and other
governmental charges, or levies, general and special, ordinary and
extraordinary, unforeseen as well as foreseen, of any kind and nature for public
improvements, services or benefits (collectively, "Property Taxes"), which are
assessed, levied, confirmed, imposed or become a lien upon the Premises, the
Building or the Property, or become payable during the Term; provided, however
that:

                  (i) any Property Taxes shall be prorated between Landlord and
         Tenant so that Tenant shall pay only that proportion thereof which the
         part of such period within the Term bears to the entire period; and

                  (ii) any such sum payable by Tenant, which would not otherwise
         be due until after the date of the termination of this Lease, shall be
         paid by Tenant to Landlord upon such termination.

Any sum payable by Tenant pursuant to this subparagraph for any period during
the Term shall be paid by Tenant in accordance with the provisions of
subparagraph 5(e) above.

         (b) TENANT'S PERSONAL PROPERTY. Tenant shall pay prior to delinquency
all taxes assessed against and levied upon trade fixtures, furnishings,
equipment and all other personal property of Tenant contained on the Premises or
elsewhere. Tenant shall cause such trade fixtures, furnishings, equipment and
all other personal property to be assessed and billed separately from the
Premises, the Building and the Property.

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         (c) RENT TAX. Tenant shall pay to Landlord a sum equal to the amount
which Landlord is required to pay or collect by reason of any privilege tax,
sales tax, gross proceeds tax, rent tax, or like tax levied, assessed or imposed
by any governmental authority or subdivision thereof, upon or measured by any
Rent, Reimbursable Expense, or other charges or sums required to be paid or
improvements to be made by Tenant under this Lease. Such sum shall be paid
simultaneously with the payment by Tenant to Landlord of the Fixed Rent or other
charge to which such tax is attributable or, in the case of a tax not
attributable to Fixed Rent or other charges, at such time as Landlord shall
demand payment thereof. Nothing contained in this Lease shall require Tenant to
pay any franchise, corporate, estate, inheritance, succession, or transfer tax
of Landlord or any tax upon the net income of Landlord.

         15. CONDEMNATION. (a) RENT REDUCTION OR LEASE TERMINATION. If the
Premises or any portion thereof is taken under the power of eminent domain, or
sold under the threat of the exercise of said power (all of which are herein
called "condemnation"), this Lease shall terminate as to the part so taken as of
the date the condemning authority takes title or possession, whichever first
occurs (the "Condemnation Date") and the Rent shall be reduced (as of the
Condemnation Date) as provided below. If (i) more than ten percent (10%) of the
Premises is taken by condemnation and (ii) if the balance of the Premises
remaining after such condemnation is not reasonably suitable for the use to
which the Premises were being put immediately prior to the condemnation,
Landlord or Tenant may, at either's option, to be exercised in writing only
within thirty (30) days after Landlord shall have given Tenant written) notice
of such taking (or in the absence of such notice, within thirty (30) days of the
Condemnation Date) terminate this Lease as of the Condemnation Date. If neither
Landlord nor Tenant terminates this Lease in accordance with the foregoing, or
in the event that that portion of the Premises taken by condemnation is not
sufficiently large so as to give rise to the right to terminate this Lease as
above provided, this Lease shall remain in full force and effect as to the
portion of the Premises remaining, except that the Fixed Rent shall be reduced
(as of the Condemnation Date) in the proportion that the area taken by
condemnation bears to the total area of the Premises.

         (b) AWARD. Any award for the taking of all or any part of the Premises
under the power of eminent domain or any payment made under threat of the
exercise of such power shall be the property of Landlord, whether such award
shall be made as compensation for diminution in value of the leasehold or for
the taking of the fee, or as severance damages; provided, however, that Tenant
shall be entitled to any award specifically attributed by the condemning
authority to loss or damage to Tenant's trade fixtures and removable personal
property or to Tenant's relocation costs. In the event that this Lease is not
terminated by reason of such condemnation, Landlord shall, to the extent of
severance damages received by Landlord in connection with such condemnation and
not paid to or retained by the holder of any mortgage or deed of trust on the
Property or the Premises, repair any damage to the Premises caused by such
condemnation except to the extent that Tenant has been reimbursed therefor by
the condemning authority (in which event such reimbursement to Tenant shall also
be applied to such repair).

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         16. ASSIGNMENT AND SUBLETTING. (a) CONSENT. Tenant shall not
voluntarily or by operation of law assign, transfer, mortgage, sublet, or
otherwise transfer or encumber all or any part of Tenant's interest in this
Lease or in the Premises without Landlord's prior written consent, which consent
Landlord shall not unreasonably withhold. Landlord may, however, withhold its
consent to such assignment, transfer, mortgage, subletting or other transfer or
encumbrance pursuant to the preceding sentence for substantive reasons
including, without limitation, the financial condition of the proposed assignee
or transferee. Any attempted assignment, transfer, mortgage, subletting or
encumbrance without such consent shall be void and shall constitute a breach of
this Lease. The consent of Landlord to any one assignment, transfer, mortgage,
subletting, or encumbrance shall not be deemed to be a consent to any subsequent
assignment, transfer, mortgage, subletting, or encumbrance. Tenant to provide 30
day notice prior to transfer of more than 50% of the stock or ownership in
tenant, or merger or consolidation along with adequate financial information to
inform Landlord.

         (b) TENANTS CONTINUING LIABILITY. Regardless of Landlord's consent, no
subletting or assignment shall alter the primary liability of Tenant to pay the
Rent or release Tenant of Tenant's obligation to perform all other obligations
to be performed by Tenant hereunder unless Landlord's written consent shall so
specifically provide, and Landlord under no circumstances shall be obligated to
release Tenant from any such liability. The acceptance of rent by Landlord from
any other person shall not be deemed to be a waiver by Landlord of any provision
hereof.

         (c) INFORMATION. In connection with any proposed assignment or
sublease, Tenant shall submit to Landlord in writing:

                  (i) The name of the proposed assignee or sublessee;

                  (ii) Such information as to the financial responsibility and
         standing of said assignee or sublessee as Landlord may reasonably
         require; and

                  (iii) All of the terms and conditions upon which the proposed
         assignment or subletting is to be made.

         (d) EXCESS SUBLEASE RENTAL. If for any sublease or assignment, Tenant
receives rent or other consideration, either directly or indirectly (by
performance of Tenant's obligations or otherwise) and either initially or over
the Term of the sublease or assignment, in excess of the Fixed Rent, Adjustments
and additional rent called for hereunder, or in the case of the sublease or
assignment of a portion of the Premises, in excess of such Fixed Rent,
Adjustments and additional rent fairly allocable to such portion, after
appropriate adjustments to assure that all other payments called for hereunder
are appropriately taken into account, Tenant shall pay to Landlord, at the same
time as Fixed Rent is due hereunder, one-half (1/2) of the excess of each such
payment of rent or other consideration received by Tenant promptly after its
receipt.

         (e) RELEASE. Whenever Landlord conveys its interest in the Premises,
Landlord shall be automatically released from the further performance of
covenants on the part of Landlord herein contained, and from any and all further
liability, obligations, costs and expenses, demands, causes of action, claims or
judgments arising from or growing out of, or connected with this Lease after the
effective date of said release. The effective date of said release shall be the
date the assignee executes an assumption of such an assignment whereby the
assignee expressly agrees to assume all of Landlord's obligations, duties,
responsibilities and liabilities with respect to this Lease. If requested,
Tenant shall execute a form of release and such other documentation as may be
required to effect the provisions of this paragraph.

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If Tenant subleases, assigns or conveys their interest in the Lease, and the new
entity gives the Landlord a security deposit, then Landlord will return the
security deposit to Tenant minus monies owed or damages to the suite.

If building changes ownership and current Landlord shall either refund the
Tenant's security deposit to Tenant or transfer security deposit to new owner as
part of escrow.

16. ASSIGNMENT AND SUBLETTING. (a) CONSENT. A response from Landlord will be
within fifteen (15) days from Tenant's written request.

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         (f) CONTROLLED ENTITY. Notwithstanding the provisions of this paragraph
16, Tenant may assign or sublet the Premises, or any portion thereof, without
Landlord's consent, after written notice to Landlord, to any entity which
controls, is controlled by, or is under common ownership with Tenant, or to any
entity resulting from the merger or consolidation with Tenant, or to any person
or entity which acquires all the assets of Tenant as a going concern of the
business that is being conducted on the Premises, provided that said assignee
assumes, in full, the obligations of Tenant under this Lease. Any such
assignment shall not, in any way, affect or limit the liability of Tenant under
the terms of this Lease even if after such assignment or subletting the terms of
this Lease are materially changed or altered without the consent of Tenant, the
consent of whom shall not be necessary for such change or alteration.

         (g) ATTORNEYS' FEES. In the event that Landlord shall consent to a
sublease or assignment under subparagraph (a) above, Tenant shall pay Landlord's
reasonable attorneys' fees incurred in connection with the giving of such
consent and review of the information submitted by Tenant.

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

         (ii) The failure by Tenant to make any payment of Rent or any other
payment required to be made by Tenant hereunder, as and when due, where such
failure shall continue for a period of ten (10) days after written notice
thereof from Landlord to Tenant;

         (iii) The failure by Tenant to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or performed by Tenant,
other than those described in subparagraph (ii) above, where such failure shall
continue for a period of ten (10) days after written notice thereof from
Landlord to Tenant; provided, however, that if the nature of Tenant's default is
such that it is capable of being cured but more than ten (10) days are
reasonably required for its cure, then Tenant shall not be deemed to be in
default if Tenant commences such cure within such ten (10) day period and
thereafter diligently prosecutes such cure to completion; or

         (iv) The making by Tenant of any general assignment for the benefit of
creditors, the filing by or against Tenant of a petition for order of relief in
bankruptcy for the purpose of bankruptcy liquidation or reorganization under any
law relating to bankruptcy whether now existing or hereafter enacted (including,
without limitation, any petition filed by or against Tenant under any one or
more of the following Chapters of the Bankruptcy Reform Act of 1978, 11 U.S.C.
Sections 101-1330 ("Bankruptcy Code") as amended: Chapter 7 or Chapter 9 or
Chapter 11 or Chapter 12 or Chapter 13) except that, in the case of a filing
against Tenant of such a petition, such filing shall not be a default if the
petition is dismissed or discharged on or before sixty (60) days after the
filing thereof; the appointment of a trustee or receiver to take possession of
all or substantially all of Tenant's assets located at the Premises or of
Tenant's interest in this Lease, where possession is not restored to Tenant
within sixty (60) days; or the attachment, execution or other judicial seizure
of substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where such seizure is not discharged within sixty (60)
days. Unless Landlord's express written consent thereto is first obtained, in
no event shall this Lease, or any interest herein or hereunder or any estate
created hereby, be assigned or assignable by operation of law or by, in or under
voluntary or involuntary bankruptcy liquidation or reorganization proceedings
or otherwise and in no event shall this Lease or any rights or privileges
hereunder be an asset of Tenant under any bankruptcy liquidation or
reorganization proceedings. Any purported assignment or transfer in violation of
the provisions of this subparagraph (iv) shall constitute a material default and
breach of this Lease by Tenant and in connection with any such default and
breach Landlord shall have the rights and remedies described in subparagraph (b)
below, including, without limitation, the election to terminate this

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         Lease. As used in this subparagraph (iv) the words "bankruptcy
         liquidation or reorganization proceedings" shall include any
         proceedings under any law relating to bankruptcy whether now existing
         or hereafter enacted (including, without limitation, proceedings under
         any one or more of the Bankruptcy Code as amended: Chapter 7 or Chapter
         9 or Chapter 11 or Chapter 12 or Chapter 13).

         (b) REMEDIES.

                  (i) In the event of any default and breach by Tenant of any of
         its obligations under this Lease then this Lease shall continue in
         effect so long as Landlord does not expressly terminate Tenant's right
         to possession in any of the manners specified in this paragraph and
         Landlord may, at Landlord's option and without limiting Landlord in the
         exercise of any other rights or remedies which it may have by reason of
         such default and breach, exercise all of its rights and remedies
         hereunder, including, without limitation:

                           (A) The right to declare the Term ended and to
                  reenter the Premises and take possession thereof and remove
                  all persons therefrom, and Tenant shall have no further claim
                  in or to the Premises or under this Lease; or

                           (B) The right without declaring this Lease ended to
                  reenter the Premises, take possession thereof, remove all
                  persons therefrom and occupy or lease the whole or any part
                  thereof for and on account of Tenant and upon such terms and
                  conditions and for such rent as Landlord may deem proper and
                  to collect such rent or any other rent that may hereafter
                  become payable and apply the same as provided in subparagraph
                  (ii) below; or

                           (C) The right, even though Landlord may have relet
                  the Premises or brought an action to collect Rent and other
                  charges without terminating this Lease, to thereafter elect to
                  terminate this Lease and all of the rights of Tenant in or to
                  the Premises; or

                           (D) The right, without terminating this Lease, to
                  bring an action or actions to collect Rent and other charges
                  hereunder which are from time to time past due and unpaid or
                  to enforce any other provisions of this Lease imposing
                  obligations on Tenant, it being understood that the bringing
                  of any such action or actions shall not terminate this Lease
                  unless written notice of termination is given.

                  (ii) Should Landlord relet the Premises under the provisions
         of subparagraph (b)(i)(B) above, Landlord may execute any lease either
         in its own name or in the name of Tenant, but Tenant hereunder shall
         have no right or authority whatever to collect any rent from the new
         tenant. The proceeds of any such reletting shall first be applied to
         the payment of the costs and expenses of reletting the Premises,
         including without limitation, reasonable brokerage commissions and
         alterations and repairs which Landlord, in its sole discretion, deems
         reasonably necessary and advisable and to the payment of reasonable
         attorneys' fees incurred by Landlord in connection with the Tenant's
         default, the retaking of the Premises and such reletting and, second,
         to the payment of any indebtedness, other than Rent, due hereunder,
         including, without limitation, storage charges owing from Tenant to
         Landlord. When such costs and expenses of reletting have been paid, and
         if there is no such indebtedness or such indebtedness has been paid,
         Tenant shall be entitled to a credit for the net amount of rental
         received from such reletting each month during the unexpired balance of
         the Term, and Tenant shall pay Landlord monthly on the first day of
         each month as specified herein such sums as may be required to make up
         the rentals provided for in this Lease. Nothing contained herein shall
         be construed as obligating Landlord to relet the whole or any part of
         the Premises.

                  (iii) Should Landlord elect to terminate this Lease under the
         provisions of subparagraphs (b)(i)(A) or (C) above, Landlord shall be
         entitled to recover immediately

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<PAGE>   30

         17.(b)(ii) If Landlord extends the lease term of the new Tenant past
         the current Tenant's expiration, then the re-lease costs will be
         prorated according to the existing and new lease terms.

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         from Tenant (in addition to any other amounts recoverable by Landlord
         as provided by law), the following amounts:

                           (A) The worth at the time of award of the unpaid rent
                  which had been earned at the time of termination;

                           (B) The worth at the time of award of the amount by
                  which the unpaid rent which would have been earned after
                  termination until the time of award exceeds the amount of such
                  rental loss that Tenant proves could have been reasonably
                  avoided;

                           (C) The worth at the time of award of the amount by
                  which the unpaid rent for the balance of the Term after the
                  time of award exceeds the amount of fair rental value that
                  Tenant proves could be reasonably avoided; and

                           (D) Any other amount necessary to compensate Landlord
                  for all the detriment proximately caused by Tenant's failure
                  to perform its obligations under the Lease or which in the
                  ordinary course of things would be likely to result therefrom.

         For purposes of computing "the worth at the time of the award" of the
         amount specified in subparagraph (b)(iii)(C) above, such amount shall
         be discounted at the discount rate of the Federal Reserve Bank of San
         Francisco at the time of award. For purposes of computing "the worth at
         the time of the award" under subparagraphs (b)(iii)(A) and (b)(iii)(B)
         above, an interest rate of ten percent (10%) per annum shall be
         utilized.

                  (iv) If Landlord shall elect to reenter the Premises as
         provided above, Landlord shall not be liable for damages by reason of
         any reentry, unless caused by Landlord's gross negligence Tenant hereby
         waives all claims and demands against Landlord for damages or loss
         arising out of or in connection with any reentering and taking
         possession of the Premises and waives all claims for damages or loss
         arising out of or in connection with any destruction of or damage to
         the Premises, or for any loss of property belonging to Tenant or to any
         other person, firm or corporation which may be in or upon the Premises
         at the time of such reentry.

                  (v) Landlord shall not be deemed to have terminated this
         Lease, Tenant's right to possession of the Premises or the liability of
         Tenant to pay Rent thereafter to accrue or its liability for damages
         under any of the provisions hereof by any reentry hereunder or by any
         action in unlawful detainer or otherwise to obtain possession of the
         Premises, unless Landlord shall notify Tenant in writing that Landlord
         has so elected to terminate this Lease. Tenant agrees that the service
         by Landlord of any notice pursuant to the unlawful detainer statutes or
         comparable statutes of the state or locality in which the Premises are
         located and the surrender of possession pursuant to such notice shall
         not (unless Landlord elects to the contrary at the time of or at any
         time subsequent to the service of such notice and such election shall
         be evidenced by a written notice to Tenant) be deemed to be a
         termination of this Lease or of Tenant's obligations hereunder. No
         reentry or reletting under this paragraph shall be deemed to constitute
         a surrender or termination of this Lease, or of any of the rights,
         options, elections, powers and remedies reserved by Landlord hereunder,
         or a release of Tenant from any of its obligations hereunder, unless
         Landlord shall specifically notify Tenant, in writing, to that effect.
         No such reletting shall preclude Landlord from thereafter at any time
         terminating this Lease as herein provided.

                  (vi) All fixtures, furnishings, goods, equipment, chattels or
         other personal property of Tenant remaining on the Premises at the time
         that Landlord takes possession thereof may at Landlord's election be
         stored at Tenant's expense or sold or otherwise disposed of by Landlord
         in any manner permitted by applicable law, up to the amount owed to
         Landlord by Tenant.

                  (vii) All rights, options, elections, powers and remedies of
         Landlord under the provisions of this Lease are cumulative of each
         other and of every other right, option,

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<PAGE>   32

         election, power or remedy which Landlord may otherwise have at law or
         in equity and all or any of which Landlord is hereby authorized to
         exercise. The exercise of one or more rights, options, elections,
         powers or remedies shall not prejudice or impair the concurrent or
         subsequent exercise of other rights or remedies Landlord may have upon
         a breach and default under this Lease and shall not be deemed to be a
         waiver of Landlord's rights or remedies thereupon or to be a release of
         Tenant from Tenant's obligations thereon unless such waiver or release
         is expressed in writing and signed by Landlord.

         (c) LATE CHARGES. Tenant hereby acknowledges that late payment by
Tenant to Landlord of Rent and other sums due hereunder will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed on
Landlord by the terms of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or any other sum due from Tenant shall
not be received by Landlord or Landlord's designee within ten (10) days after
such amount shall be due, Tenant shall pay to Landlord a late charge equal to
ten percent (10%) of such overdue amount. The parties hereby agree that such
late charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of late payment by Tenant. Acceptance of such late charge by
Landlord shall in no event constitute a waiver of Tenant's default with respect
to such overdue amount, nor prevent Landlord from exercising any of the other
rights and remedies granted hereunder.

         (d) PAYMENT OR PERFORMANCE BY LANDLORD. Landlord may, at Landlord's
option and without any obligation to do so, pay any sum or do any act which
Tenant has failed to pay or do at the time Tenant was obligated to make such
payment or perform such act and Landlord shall be entitled to recover from
Tenant, upon demand, all sums expended by Landlord in making such payment or
performing such act, together with interest thereon at the rate provided in
subparagraph 18(d) from the date of expenditure until repaid by Tenant. Such sum
and interest shall be deemed additional rent under this Lease.

         18. MISCELLANEOUS. (a) ESTOPPEL CERTIFICATE.

                  (i) Tenant shall at any time upon not less than ten (10)
         business days prior written notice from Landlord execute, acknowledge,
         and deliver to Landlord a statement in writing certifying that this
         Lease is unmodified and in full force and effect (or, if modified,
         stating the nature of such modification and certifying that this Lease,
         as so modified, is in full force and effect) and the date to which the
         Rent and other charges are paid in advance, if any, and acknowledging
         that there are not, to Tenant's knowledge, any uncured defaults on the
         part of Landlord hereunder, or specifying such defaults if any are
         claimed. Any such statement may be conclusively relied upon by any
         person to whom it shall be delivered by Landlord including any
         prospective purchaser or encumbrancer of the Premises, the Building,
         the Property, or any part thereof.

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

                  (iii) If Landlord desires to finance or refinance the
         Premises, the Building, the Property, or any part thereof, Tenant
         hereby agrees to deliver to any lender designated by Landlord such
         financial statements of Tenant as may be reasonably required by such
         lender. Such statements shall include the past one or more years
         financial statements of Tenant.

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<PAGE>   33

         All such financial statements shall be received by Landlord in
         confidence and shall be used only for the purposes herein set forth.

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

         (c) CONSTRUCTION. Paragraph captions are solely for the convenience of
the parties and shall not be deemed to or be used to define, construe, or limit
the terms hereof. As used in this Lease, the masculine, feminine and neuter
genders shall be deemed to include the others, and the singular number shall be
deemed to include the plural, whenever the context so requires. The invalidity
of any provisions of this Lease as determined by a court of competent
jurisdiction shall in no way affect the validity of any other provision hereof.
This Lease shall be governed by the laws of the state in which the Premises are
located.

         (d) INTEREST ON PAST-DUE OBLIGATIONS. Except as expressly herein
provided, any amount due to Landlord not paid when due shall bear interest at
the lesser of (i) eighteen percent (18%) per annum or (ii) the maximum rate
permitted by law, from the date due until the date such amount is paid. Payment
of such interest shall be made when such amount is paid. Payment of such
interest shall not excuse or cure any default by Tenant under this Lease.

         (e) TIME OF ESSENCE. Time is of the essence of this Lease and all of
the covenants and obligations hereof.

         (f) COUNTERPARTS. This Lease may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same Lease.

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

         (h) NOTICES. Any notices, approvals, agreements, certificates, other
documents or communications between the parties hereto required or permitted
under this Lease shall be in writing. Any such communications shall be deemed to
have been duly given or served if delivered in hand or forty-eight (48) hours
after deposit in the United States mail, certified or registered, postage and
fees prepaid, return receipt requested, addressed to the parties at the
addresses set forth in paragraph 1 of this Lease. The address to which any such
communications shall be sent may be changed by either party hereto from time to
time by a notice mailed as aforesaid.

         (i) WAIVERS. No waiver by Landlord of any provision hereof shall be
deemed a waiver of any other provision hereof or of any subsequent breach by
Tenant of the same or any other provision. Landlord's consent to or approval of
any act shall not be deemed to render unnecessary the obtaining of Landlord's
consent to or approval of any subsequent act by Tenant. The acceptance of Rent
hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of
any provision hereof, other than the failure of Tenant to pay the particular
Rent so accepted, regardless of Landlord's knowledge of such preceding breach at
the time of acceptance of such Rent.

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<PAGE>   34
          (j) RECORDING. Tenant shall not record this Lease without Landlord's
prior written consent and such recordation shall, at the option of Landlord,
constitute a noncurable default of Tenant hereunder. Landlord and Tenant shall,
upon the request of either party, execute, acknowledge and deliver to the other
a "short form" memorandum of this Lease for recording purposes.

         (k) HOLDING OVER. If Tenant remains in possession of the Premises or
any part thereof after the expiration of the Term or sooner termination of this
Lease with the express written consent of Landlord and without executing a new
lease, such occupancy shall be construed as a tenancy from month-to-month at a
rental equal to one hundred twenty-five percent (125%) of the last monthly Rent
plus all other charges payable hereunder, and upon all the terms hereof insofar
as the same are applicable to a month-to-month tenancy. Nothing contained in
this subparagraph shall be construed to grant Tenant the right to holdover
without the express written consent of Landlord.

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

         (m) BINDING EFFECT. Subject to any provisions hereof restricting
assignment or subletting by Tenant and subject to the provision of subparagraph
(b) above, this Lease shall bind the parties and their personal representatives,
successors and assigns.

         (n) SUBORDINATION.

                  (i) This Lease, at Landlord's option, shall be subordinate to
          any ground lease, mortgage, deed of trust, or any other hypothecation
          for security now or hereafter placed upon the Premises, the Building
          or the Property, or any part or parts thereof, and to any and all
          advances made on the security thereof and to all renewals,
          modifications, consolidations, replacements and extensions thereof. If
          any present or future mortgagee, trustee or ground lessor shall at any
          time elect to have this Lease prior to the lien of its mortgage, deed
          of trust or ground lease, and written notice of such election shall be
          given to Tenant, this Lease shall be deemed prior to such mortgage,
          deed of trust, or ground lease, whether this Lease is dated prior or
          subsequent to the date of said mortgage, deed of trust or ground lease
          or the date of recording thereof.

                  (ii) Tenant agrees to execute any documents required to
         effectuate such subordination or to make this Lease prior to the lien
         of any mortgage, deed of trust or ground lease, as the case may be, and
         failing to do so within ten (10) business days after written demand,
         does hereby make, constitute and irrevocably appoint Landlord as
         Tenant's attorney in fact and in Tenant's name, place and stead, to do
         so.

         (o) ATTORNEYS' FEE. If either party brings an action to enforce the
terms hereof or declare rights under this Lease, the prevailing party in the
final adjudication of any such action, on trial or appeal, shall be entitled to
its costs and expenses of suit, including, without limitation, its actual
attorneys' fees, to be paid by the losing party as fixed by the court.

         (p) LANDLORD'S ACCESS. Landlord and Landlord's agents shall have the
right to enter the Premises at reasonable times for the purpose of inspecting
the same, showing the same to prospective purchasers or lenders, and making such
alterations, repairs, improvements or additions to the Premises or the
improvements as Landlord may deem necessary or desirable. Landlord may at any
time place on or about the Premises any ordinary "For Sale" signs and Landlord
may at any time during the last one hundred twenty (120) days of the Term place
on or about the Premises any ordinary "For Lease" signs, all without rebate of
rent or liability to Tenant.

         (q) AUCTIONS. Tenant shall not conduct any auction on the Premises
without Landlord's prior written consent.

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         (r) MERGER. The voluntary or other surrender of this Lease by Tenant,
or a mutual cancellation thereof, shall not work a merger, and shall, at the
option of Landlord, terminate all or any existing subtenancies or may, at the
option of Landlord, operate as an assignment to Landlord of any or all of such
subtenancies. During any period while Tenant is in default under this Lease,
Landlord, in addition to any other rights and remedies it may have under this
Lease, shall have the right to collect directly from any subtenant all rentals
owing to Tenant under any subtenancy and to apply such rentals to any amounts
owing to Landlord by Tenant and the payment of such amounts by the subtenant
directly to Landlord shall not be a default under the subtenancy.

         (s) JOINT AND SEVERAL LIABILITY. Each party signing this Lease as
Tenant shall be jointly and severally liable for the failure on the part of
Tenant to pay any sums due under the terms of this Lease or for the breach by
Tenant or any of the covenants or obligations of Tenant contained herein.

         (t) INDIVIDUAL LIABILITY. The obligations of Landlord or Tenant under
this Lease do not constitute personal obligations of the individual partners,
directors, officers, or shareholders of Landlord or Tenant and Landlord or
Tenant shall look solely to the real estate that is the subject of this Lease
and to no other assets of Landlord or Tenant for satisfaction of any liability
in respect of this Lease and will not seek recourse against the individual
partners, directors, officers or shareholders of Landlord or any of their
personal assets for such satisfaction.

         (u) ATTORNMENT. Tenant shall, in the event any proceedings are brought
for the foreclosure of, or in the event of exercise of the power of sale under
any mortgage or deed of trust made by the Landlord, its successors or assigns,
encumbering the Premises, or any part thereof, or in the event of termination of
the ground lease, if any, and if so requested, attorn to the purchaser upon such
foreclosure or sale or upon any grant of a deed in lieu of foreclosure and shall
recognize such purchaser as the Landlord under this Lease. If such purchaser
honors lease and assumes liability for the security deposit.

         (v) LENDERS RIGHT TO CURE. Tenant agrees to give the holder of any
mortgage or trust deed encumbering the Premises, by registered mail, a copy of
any notice of default or nonperformance served upon Landlord, provided that
prior to such notice, Tenant has been notified in writing (by way of Assignment
of Rents and Leases or otherwise) of the address of such mortgagee or trust deed
holder. Tenant further agrees that Landlord shall not be in default under this
Lease unless (i) Tenant has given a written notice to Landlord stating that
Landlord has failed to perform Landlord's obligations under this Lease and (ii)
specifying with particularity the obligations which Landlord has failed to
perform, and Landlord thereafter fails to perform any of its obligations so
specified within a reasonable time after Landlord's receipt of such notice. If
Landlord shall fail to cure such nonperformance in a timely manner, then such
mortgagee or trust deed holder shall have an additional thirty (30) days within
which to cure the default, or, if such default cannot be cured within that time,
then such additional time as may be necessary if within such thirty (30) days
such mortgagee or trust deed holder has commenced and is diligently pursuing the
remedies necessary to cure such default (including but not limited to
commencement of foreclosure proceedings, if necessary to effect such cure), in
which event this Lease shall not be terminated by Tenant while such remedies arc
being so diligently pursued.

         (w) REVISIONS TO LEASE. Tenant hereby agrees to make any reasonable
revisions to this Lease which may be required in good faith by a bona fide
construction, interim or permanent lender in connection with the financing of
the Premises. Tenant agrees as long as the changes do not change the terms and
conditions of the Lease.

         (x) ADMINISTRATIVE CHARGE. In addition to Fixed Rent, Adjustments and
other charges hereunder, Tenant shall pay to Landlord an overall administrative
charge of five percent (5%) of any charge which is Tenant's responsibility to
pay, which Landlord pays on behalf of Tenant and for which Landlord subsequently
bills Tenant.

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<PAGE>   36

         19. TOXIC MATERIALS. (a) DEFINITIONS.

                  (i) As used in this Lease, the term "Hazardous Material[s]"
         means any oil, flammable items, explosives, radioactive materials,
         hazardous or toxic substances, material or waste or related materials
         including, without limitation, any substances that pose a hazard to the
         Premises or to persons on or about the Premises and any substances
         defined as or included in the definition of "hazardous substance,"
         "hazardous waste," "hazardous material," "toxic substance," "extremely
         hazardous waste," "restricted hazardous waste" or words of similar
         import, now or subsequently regulated in any way under applicable
         federal, state or local laws or regulations, including without
         limitation, petroleum-based products, paints, solvents, lead, cyanide,
         DDT, printing inks, acids, pesticides, ammonia compounds and other
         chemical products, asbestos, PCBs, urea formaldehyde foam insulation,
         transformers or other equipment containing dielectric fluid, levels of
         polychlorinated biphenyls, or radon gas, and similar compounds, and
         including any different products and materials which are subsequently
         found to have adverse effects on the environment or the health and
         safety of persons.

                  (ii) As used herein, the term "Environmental Law[s]" means any
         one or all of the following: the Comprehensive Environmental Response,
         Compensation and Liability Act, as amended by the Superfund Amendments
         and Reauthorization Act of 1986 (42 U.S.C. Sections 9601 et seq.); the
         Resource Conservation and Recovery Act as amended (42 U.S.C. Sections
         6901 et seq.); the Safe Drinking Water Act as amended (42 U.S.C.
         Sections 300f et seq.); the Clean Water Act as amended (33 U.S.C.
         Sections 1251 et seq.); the Clean Air Act as amended (42 U.S.C.
         Sections 7401 et seq.); the Toxic Substances Control Act as amended (15
         U.S.C. Sections 136 et seq.); the Solid Waste Disposal Act as amended
         (42 U.S.C. Sections 3251 et seq.); the Hazardous Materials
         Transportation Act (49 U.S.C. Sections 1801 et seq.); the regulations
         promulgated under any of the foregoing; and all other laws,
         regulations, ordinances, standards, policies, and guidelines now in
         effect or hereinafter enacted by any governmental entity (whether
         local, state or federal) having jurisdiction or regulatory authority
         over the Premises or the Project or over activities conducted therein
         and which deal with the regulation or protection of human health,
         industrial hygiene or the environment, including the soil, subsurface
         soil, ambient air, groundwater, surface water, and land use.

                  (iii) As used herein, the term "Environmental Activity{ies]"
         means any generation, manufacture, production, pumping, bringing upon,
         use, storage, treatment, release, discharge, escaping, emitting,
         leaching, disposal or transportation of Hazardous Materials.

         (b) PROHIBITION ON HAZARDOUS MATERIALS. Except as specifically provided
in subparagraph (c) below, Tenant shall not cause or permit any Environmental
Activities in, on or about the Premises by Tenant or Tenant's agents, employees,
contractors, assignees, sublessees or invitees (hereinafter cumulatively
referred to as "Tenant's Agents") without the prior written consent of Landlord.
Landlord shall be entitled to take into account such factors or facts as
Landlord may reasonably determine to be relevant in determining whether to
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to Tenant's proposed Environmental Activity and Landlord may attach conditions
to any such consent if such conditions are reasonably necessary to protect
Landlord's interests in avoiding potential liability upon Landlord or damage to
Landlord's property arising from any Environmental Activity by Tenant or
Tenant's Agents. In no event shall Landlord be required to consent to the
installation or use of any storage tanks on the Property.

         (c) EXCEPTION TO PROHIBITION. Notwithstanding the prohibition set forth
in subparagraph (b) above, but subject to Tenant's covenant to comply with all
Environmental Laws and with the other provisions of this paragraph 19, Tenant
may bring upon, keep and use in the Premises (but not outside the Premises) (i)
general office supplies typically used in an office or warehouse in the ordinary
course of business, such as copier toner, liquid paper, glue, ink and janitorial
supplies, so long as such supplies are used in the manner for which they were
designed and in such amounts as may be normal for the business operations
conducted by Tenant in the Premises, and (ii) those Hazardous Materials, if any,
described on Exhibit D attached hereto and by this reference made a part hereof
so long as Tenant has delivered to Landlord a description of the handling,
storage, use and disposal procedures to be utilized by Tenant with respect
thereto.

         (d) COMPLIANCE WITH ENVIRONMENTAL LAWS. Tenant shall keep and maintain
the Premises in compliance with, and shall not cause or permit the Premises to
be in violation of, any Environmental Laws. All Tenant's activities at the
Premises shall be in accordance with all Environmental Laws. Additionally,
Tenant shall obtain any and all necessary permits for Tenant's activities at the
Premises. Tenant's obligations and liabilities under this paragraph 19 shall
continue so long as Landlord bears any liability or responsibility under the
Environmental Laws for any action that occurs on the Premises during the term of
this Lease.

         (e) ENVIRONMENTAL NOTICES. Tenant shall immediately notify Landlord of,
and upon Landlord's request shall provide Landlord with copies of, the
following:

                  (i) Any correspondence, communication or notice, oral or
         written, to or from any governmental entity regarding the application
         of Environmental Laws to the Premises or Tenant's operations on the
         Premises including, without limitation, notices of violation, notices
         to comply and citations;

                  (ii) Any reports filed pursuant to any Environmental Law or
         self-reporting requirements;

                  (iii) Any permits and permit applications; and

                  (iv) Any change in Tenant's operations on the Premises that
         will change or has the potential to change Tenant's or Landlord's
         obligations or liabilities under Environmental Laws.

Tenant shall also notify the Landlord of the release of any Hazardous Material
in, on, under, about or above the Premises, the Building, the Property or the
Project.

         (f) ENVIRONMENTAL INDEMNITY. Tenant shall protect, indemnify, defend
(with counsel satisfactory to Landlord) and hold harmless Landlord and its
directors, officers, partners, employees, agents, lenders, and ground lessees,
if any, and their respective successors and assigns for, from and against any
and all losses, damages, claims, costs, expenses, penalties, fines and
liabilities of any kind (including, without limitation, the cost of any
investigation, remediation and cleanup, and attorneys' fees) which, in
Landlord's reasonable opinion after reviewing an environment report are
attributable to (i) any Environmental Activity on the Property or Project or in
the Building or Premises undertaken or committed by Tenant or Tenant's Agents or
caused by the negligence of such persons during the Term of this Lease, (ii) any
remedial or clean-up work undertaken by or for Tenant in connection with
Tenant's Environmental Activities or Tenant's compliance with Environmental
Laws, or (iii) the breach by Tenant of any of its obligations and covenants set
forth in this paragraph 19. Landlord shall have the right but not the obligation
to join and participate in, and control, if it so elects, any legal proceedings
initiated in connection with the

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Environmental Activities of Tenant or Tenant's Agents. Landlord may also
negotiate, defend, approve and appeal any action taken or issued by any
applicable governmental authority with regard to contamination of the Premises
or any portion of the Property or Project by a Hazardous Material. Any costs or
expenses incurred by Landlord for which Tenant is responsible under this
paragraph 19 or for which Tenant has indemnified Landlord shall be reimbursed by
Tenant on demand, as additional rent and with interest thereon, as provided by
subparagraph 17(d) of this Lease. This indemnity shall survive the termination
of this Lease.

         (g) REMEDIAL WORK. If (i) any Environmental Activity undertaken by
Tenant or Tenant's Agents results in contamination of the Premises, Building,
Property or Project or any portion thereof, or the soil or groundwater
thereunder, or (ii) any investigation, site monitoring, containment, cleanup,
removal, restoration or other remedial work of any kind or nature ("Remedial
Work") is necessary or appropriate due to or in connection with Tenant's use or
occupancy of the Premises, then, subject to Landlord's prior written approval
and any conditions imposed by Landlord, Tenant shall promptly perform all
Remedial Work, at Tenant's sole expense and without abatement of rent, as is
necessary to return the affected portion of the Premises, Building, Property
and/or Project and the soil and groundwater to the condition existing prior to
the introduction of the contaminating Hazardous Material and to otherwise comply
with all applicable Environmental Laws. Landlord's approval of such Remedial
Work shall not be unreasonably withheld so long as such actions will not cause a
material adverse effect on the Premises, Building, Property or Project after
expiration of the Lease Term or any material adverse effect on the Premises,
Building, Property or Project. Landlord shall also have the right to approve any
and all contractors hired by Tenant to perform such Remedial Work. All such
Remedial Work shall be performed in compliance with all applicable laws,
ordinances and regulations and in such a manner as to minimize any interference
with the use and enjoyment of the Premises, Building, Property and Project. All
costs and expenses of such Remedial Work shall be paid by Tenant including,
without limitation, the charges of such contractor(s), and the reasonable fees
and costs of the attorneys and consultants for Landlord incurred in connection
with monitoring or review of such Remedial Work.

         (h) LANDLORD'S OPTION. Landlord may elect, at Landlord's sole
discretion, to perform any Remedial Work. Landlord and Landlord's agents shall
have the right to enter the Premises at all reasonable times to inspect, monitor
and/or perform Remedial Work. All expenses incurred by Landlord in connection
with performing Remedial Work are payable by Tenant, upon Landlord's demand,
with interest thereon, as provided by subparagraph 17(d).

         (i) INJUNCTIVE RELIEF. Tenant's failure to abide by the terms of this
paragraph 19 shall be restrainable by injunction.

         (j) SELF-HELP. Landlord and/or Tenant shall have the right of
"self-help" or similar remedy in order to minimize any damages, expenses,
penalties and related fees or costs arising from or related to a violation of
any Environmental Law with respect to the Premises or the Project.

         (k) OTHER TENANTS. Other tenants of the Project may be using, handling
or storing certain Hazardous Materials in connection with such tenants' use of
their premises. The failure of another tenant to comply with applicable laws and
procedures could result in a release of Hazardous Materials and contamination to
improvements within the Project or the soil and groundwater thereunder. In the
event of such a release, the tenant responsible for the release, and not
Landlord, shall be responsible for any claim, damage or expense incurred by
Tenant by reason of such contamination and Tenant shall exhaust all its
remedies against such other tenant without any right to seek any recovery
against Landlord. Unless caused by Landlord's gross negligence.

         (l) ENVIRONMENTAL INSPECTION. Tenant shall, if reasonably required by
Landlord on account of the activities or suspected activities of Tenant or
Tenant's Agents, retain a recognized environmental consultant (the "Consultant")
acceptable to Landlord to conduct an investigation of the Premises and of other
portions of the Project deemed appropriate by Landlord ("Environmental
Assessment") (i) for Hazardous Materials contamination in, about or beneath the
Premises, the Building or the Project as a result of such activities and (ii) to
assess all Environmental Activities of Tenant and Tenant's Agents on the
Premises or the Project for

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<PAGE>   39

compliance with all applicable laws, ordinances and regulations and for the use
of procedures intended to reasonably reduce the risk of a release of Hazardous
Materials. The Environmental Assessment shall be performed in a manner
reasonably calculated to discover the presence of Hazardous Materials
contamination and shall be of a scope and intensity reflective of the general
standards of professional environmental consultants who regularly provide
environmental assessment services in connection with the transfer or leasing of
real property. Additionally, the Environmental Assessment shall take into full
consideration the past and present uses of the Property and Project and other
factors unique to the Property and Project. If Landlord obtains the
Environmental Assessment because of the activities of Tenant or Tenant's Agents,
Tenant shall pay Landlord on demand the cost of the Environmental Assessment,
with interest thereon, as additional rent and in accordance with subparagraph
17(d). If Landlord so requires, Tenant shall comply, at its sole cost and
expense, with all recommendations contained in the Environmental Assessment,
including any recommendation with respect to the precautions which should be
taken with respect to Environmental Activities on the Premises or the Project or
any recommendations for additional testing and studies to detect the presence of
Hazardous Materials. Tenant covenants to reasonably cooperate with the
Consultant and to allow entry and reasonable access to all portions of the
Premises for the purpose of Consultant's investigation.

         (m) SURRENDER OF PREMISES - ENVIRONMENTAL CONSIDERATIONS. Prior to or
after the expiration or termination of the Lease Term, Landlord may have an
Environmental Assessment of the Property performed in accordance with
subparagraph (l) above. Tenant shall perform, at its sole cost and expense, any
Remedial Work recommended by the Consultant which is necessary to remove,
mitigate or remediate any Hazardous Materials contamination of the Premises,
Building, Property or Project in connection with any Environmental Activities of
Tenant or Tenant's Agents. Prior to surrendering possession of the Premises,
Tenant shall also, unless otherwise directed by Landlord, remove any personal
property, equipment, fixture (except for any fixture installed by Landlord)
and/or storage device or vessel on or about the Premises, Building, Property
and/or Project which is contaminated by or contains Hazardous Materials as a
result of the activities of Tenant or Tenant's Agents and repair all damage to
the Premises, the Building and the Project caused by such removal.

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In addition to the above terms and conditions, the following also applies:

20.      The only Broker recognized by all parties to this lease agreement is CB
         Commercial.

21.      The Landlord will not lease to another Call Center in Metro Business
         Park Phase I as long as the Tenant is not in default of their lease
         agreement.

22.      QUIET ENJOYMENT. Landlord covenants that on or before the commencement
         date it will have good title to the Premises, free and clear of all
         liens and encumbrances, excepting only the lien for current taxes not
         yet due, such mortgage or mortgages as are permitted by the terms of
         this tease, zoning ordinances and other building and fire ordinances
         and governmental regulations relating to the use of such property, and
         easements, restrictions and other conditions of record. Landlord
         represents that it has the authority to enter into this Lease and that
         so long as Tenant pays all amounts due hereunder and performs all other
         covenants and agreements herein set forth, Tenant shall peaceably and
         quietly have, hold and enjoy the Premises for the term hereof without
         hindrance or molestation from Landlord, subject to the terms and
         Provisions of this Lease.

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                                     26(a)

<PAGE>   41

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

      "LANDLORD"                                      "TENANT"

      EastGroup Properties,                          ANASAZI, Inc.,
      A Maryland Real Estate Investment Trust        A Delaware Corporation

      BY: /s/ MARSHALL [ILLEGIBLE]                   BY: /s/ [ILLEGIBLE]
         ----------------------------                   ------------------------

      IT'S: Vice President                           IT'S: President & Coo
           --------------------------                     ----------------------

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<PAGE>   42

TENANT ACKNOWLEDGMENTS:

CORPORATE

STATE OF Arizona       )
                       ) ss.
County of [ILLEGIBLE]  )

         On this the 11th day of February 1997, before me, the undersigned
Notary Public, personally appeared [ILLEGIBLE], who acknowledged himself to be
the President of Anasazi Inc., a corporation, and that he, as such officer,
being authorized so to do, executed the foregoing instrument for the purposes
therein contained, by signing the name of the corporation, by himself as such
officer.

         IN WITNESS WHEREOF, I and hereunto set my hand and official seal.

                                                       /s/ [ILLEGIBLE]
                                                       -------------------------
                                                       Notary Public

         My Commission Expires:

                6-24-97
         ----------------------

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<PAGE>   43
                                   EXHIBIT A

                                  THE PREMISES

The Premises is approximately 27,681 square feet of building A of Metro Business
Park Phase I Located at 11048 N. 23rd.., Phoenix AZ 85029.

               PREMISES

                                 [HEWSON LOGO]

                                  [FLOOR PLAN]

                             [METRO BUSINESS PARK]

                                   [PHASE I]

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                                   EXHIBIT B

                               PRELIMINARY PLANS

Tenant is to Lease suites A-104 (13,200 square feet), Suite A-103 (5,881 square
feet) and Suite A-102 (8,600 square feet) in "AS IS" condition.  Tenant will
build out the suite to Hewson Properties, Inc. building standards and as per
Exhibit B(a) which is attached.

               PREMISES

                          Metro Business Park Phase I
                  11048 N. 23rd avenue - Suite A-104 - Phoenix
    13,000 Rentable sq. ft. - Offices. 2,696 sq. ft. = 21%-SCALE-1/16"=1'-0"

                                  [FLOOR PLAN]

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                                  EXHIBIT B(a)

                                  [FLOOR PLAN]

                                    ANASAZI
                              METRO BUSINESS PARK
                              11048 NORTH 23rd AVE
                                PHOENIX, ARIZONA

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                                    EXHIBIT D

                               HAZARDOUS MATERIAL

                                     "NONE"

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                                  EXHIBIT E

                           OPTION TO EXTEND LEASE TERM

Provided that at the time of exercise Tenant is not and had not been in default
under any term or provision of this Lease, then, upon the expiration of the
original term hereof, Tenant shall have the option to extend the term of this
Lease for an additional period of [See Below] years, ("the Extended Term") upon
the same terms and conditions set forth herein, so far as applicable, except
that Tenant shall have no further allowance for Tenant Improvements, no
additional option to extend the term hereof, and that rent for the option period
shall be ninety-five percent (95%) of market rent for a similar lease
transaction, adjusted, if appropriate, over the duration of the option term,
that would be charged for a comparable property in the general geographical area
in which the leased premises are located.

In the event the Tenant wishes to exercise this option to extend the term of the
Lease, Tenant shall give Landlord written notice of such election between 270
and 180 days prior to expiration of the original term. Upon receipt of that
notice, Landlord and Tenant shall attempt to determine the rental rate for the
Extended Term. In determining the rental rate for the Extended Term at the time
of exercise of the option, Landlord within five (5) business days of the notice
of exercise, shall present Tenant in writing with its lease terms for the
Extended Term, including the proposed rental rate. Within ten (10) business days
thereafter, Tenant shall either accept the rental rate proposed by the Landlord,
or shall present Landlord in writing with its proposed rental rate. Within five
(5) business days thereafter, Landlord shall either accept that rate, or notify
Tenant that the proposed rate is unacceptable. In the latter case, Landlord and
Tenant shall present the issue of rental rate to an appraiser or other third
party chosen by the Landlord and agreeable to the Tenant ("the Appraiser") for
determination. In making the determination of rental rate, the Appraiser shall
consider all relevant terms of the Lease proposed for the Extended Term, and
shall make a determination of the rental rate for comparable space in the
general geographic area of the Project for the proposed lease transaction. The
determination of the Appraiser of the rental rate shall be binding on both
parties for the lease for the Extended Term. The determination of the Appraiser
shall be made within thirty (30) days of the date of submission of the issue to
him.

At such time as Landlord and Tenant have agreed upon the terms of the Lease for
the Extended Term, including the rental rate, whether with or without the
services of the Appraiser, then the Landlord will prepare a Lease Amendment
extending the term of this Lease consistent with this provision, which both
parties shall execute.

If Tenant shall fail to deliver to Landlord written notice of its election to
exercise this option between 270 and 180 days prior to expiration of the
original term, then this option shall expire and be of no further force or
effect.

9/29/93

Tenant shall have three (3) one (1) year options to renew the lease.

Those options will be as follows:

A104 & A102 Three One year options:  From 04/01/00 - 03/31/01
                                          04/01/01 - 11/30/01
                                          12/01/01 - 12/31/02

A101 & A103 One One (1) year option: From 12/01/01 - 12/31/02

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                                    EXHIBIT F
                             RIGHT OF FIRST REFUSAL

Provided that at the time of exercise Tenant is not and had not been in default
under any term or provision of this Lease, then, during the original term of
this Lease, Tenant shall have the right of first refusal to lease that certain
additional space in the Project consisting of approximately 7,519 square feet
and described as Suite A-100, as outlined on the floor plan attached hereto as
"Exhibit" ("the Additional Space"). In the event that Landlord shall receive a
bona fide offer, as hereinafter defined, from a third party or entity to lease
all or a portion of the Additional Space at any time during the original term of
the Lease, which offer Landlord desires to accept, Landlord shall promptly give
Tenant written notice of such offer, which notice shall describe all of the
provisions thereof. Within (5) five business days of the date of mailing of that
notice, Tenant shall give Landlord written notice of its election to lease that
portion of the Additional Space referred to in the offer, at the rental rate and
upon all other terms and conditions described in the offer, and subject to all
other terms and conditions of this Lease, as applicable. If the offer is for
space in the Project greater than the Additional Space, but encompassing the
Additional Space, then, in exercising this right, Tenant must lease the entire
space subject to the offer, not only the Additional Space.

If Landlord fails to receive written notice of Tenant's election to lease the
space as set forth in the offer within such 5-business day period, then Landlord
may proceed to lease to the third party the Additional Space as set forth in the
offer, and Tenant's rights as set forth in this Section shall expire and be of
no force and effect through the Lease term.

It Landlord receives written notice of Tenant's agreement to lease the space
referred to in the offer within that period, then Landlord and Tenant shall
enter into a Lease Amendment evidencing the lease of that space to Tenant upon
the terms and conditions of the offer, and subject to all other provisions of
the Lease, as applicable, and that space referred to in the offer shall be
included in the leased premises and leased to Tenant.

For purposes of this Section, the term "bona fide offer" shall mean an offer in
writing from a third person or entity, executed by such third person or a
representative of the entity, setting forth the basic provisions of the offered
Lease.

9/29/93

                                       34

<PAGE>   49

EXHIBIT F. RIGHT OF FIRST REFUSAL. This Right of First Refusal will continue
through the term of this Lease and any renewal option periods.

Notice may also be given by fax but only if it is followed by a confirmation of
receipt phone call.

If Landlord does not lease it's space to the third (3rd) party related to this
Right of First Refusal, then the Tenant's Right of First Refusal will be
restored, only through March 31, 2000.

The term of the Right of First Refusal space shall be coterminius with the rest
of the Tenant's lease.

                                                                       Please
                                                                       Initial:

                                                                       /s/ A

                                                                       /s/ CM

                                      34(a)
<PAGE>   50

                                    EXHIBIT G

       Tenant has the Right Of First Refusal for the indicated 7,519 square feet

                                   [FLOOR PLAN]

                                                                     Please
                                                                    Initial:

                                                                    /s/ A

                                                                    /s/ CM

                                       35
<PAGE>   51

                            FIRST AMENDMENT TO LEASE

That certain lease dated January 31, 1997 by and between EastGroup Properties,
Landlord, and Anasazi, Inc., Tenant, for the premises located at 11048 N 23rd
Avenue, Building C, Suite 102, 103, 104, is amended this 7th day of August, 1997
solely as hereinafter described.

Effective the 15th day of August, 1997, the clauses below are substituted for
like numbered clauses in the Lease agreement.

1(b) Street Address of Premises:
                  11048 N. 23rd Avenue, Suites A102--A104
                  Phoenix, AZ 85029

                  11226 N. 23rd Avenue, Suite B101
                  Phoenix, AZ 85029

1(d) Approximate Square Footage of Premises:
                  A104 -- 13,200 sf
                  A103 --  5,881 sf
                  A102 --  8,600 sf
                  B101 -- 13,063 sf

1(h) Term:
                  A104        2/15/97 --  3/31/00
                  A102        4/01/97 --  3/31/00
                  A103        4/01/97 -- 11/30/01
                  B101       10/15/97 -- 12/31/02

1(i) Scheduled Commencement Date:
                  A104        2/15/97
                  A102        4/01/97
                  A103        4/01/97
                  B101       10/15/97 or the date premises is ready for
                                      occupancy.

1(j) Fixed Rent:
         2/15/97 --  3/31/97 $10,031.98/NNN/Month (A104)
        10/15/97 --  3/31/00 $18,000.00/NNN/Month (A104, A103, A102)
        10/15/97 --  3/31/00 $12,390.67/NNN/Month (B101)
         4/01/00 --  4/30/00 $ 3,234.55/NNN/Month (A103)
         4/01/00 --  4/30/00 $12,390.67/NNN/Month (B101)
         5/01/00 -- 11/30/01 $ 3,234.55/NNN/Month (A103)
         5/01/00 -- 11/30/01 $14,219.49/NNN/Month (B101)
        12/01/01 -- 12/31/02 $14,219.49/NNN/Month (B101)

1(1) Security Deposit:
         2/15/97 -- 10/14/97 $ 27,000.00  Cash (paid 2/97)
        10/15/97 -- 10/31/98 $100,000.00  Letter of Credit (due at
                             the signing of Amendment) and
                             $ 27,000.00  Cash (paid 2/97)
        11/01/98 -- 12/31/02 $ 47,000.00* Cash ($27,000 paid 2/97)

  * Landlord will review the Tenant's most recent financial statements and in
    Landlord's sole discretion will make the decision regarding the adequacy of
    such information on or before 11/01/98 with the Landlord to determine
    whether or not to waive the additional $20,000 Security Deposit due 11/1/98.

1(0) Tenant's share of Operating Expenses, Insurance Expenses and Property
     Taxes:
                  Project:          40.61%
                  Building B:       37.11%
                  Building A:       78.64%

Exhibit A

          The Premises are approximately 40,744 square feet and are located at
          11048 and 11226 North 23rd Avenue.

                                                                     Please
                                                                    Initial:

                                                                 /s/ [ILLEGIBLE]

                                                                 /s/ [ILLEGIBLE]

<PAGE>   52

Exhibit B

         Suite A104, A103 and A102 were taken in "As Is" condition. Landlord
         will provide an allowance not to exceed $250,000 for Tenant
         Improvements for suite B101 including, architectural, engineering, and
         city permits, cabling, and wiring. Excess Tenant Improvement monies
         will be put in reserve for future use. All Tenant Improvements dollars
         will be paid upon receipt of a certificate of completion from the
         Architect along with all lien waivers from the contractor and
         subcontractors.

Exhibit E

         Along with existing options to extend Leases Tenant also has the option
         to renew all suites for a three year term at market rate after the
         current Options to Extend. Subject to the same notice provisions as
         Exhibit E of the lease dated January 31, 1997.

Exhibit H:

         Landlord gives Tenant, the Right to Cancel the lease for Suite B101
         only on 3/31/00 with one hundred and eighty (180) days written notice
         to Landlord and a buy-out amount of $230,l5l.06 to be paid in full on
         3/31/00.

EXHIBIT I:

         Landlord will provide fifty (50) reserved parking spaces in accordance
         with Exhibit I, in addition to the one hundred (100) spaces provided in
         the lease dated January 31, 1997.

All other terms and conditions of said Lease shall remain in full force and
effect.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the
date first written above.

"Landlord"                             "Tenant"

EastGroup Properties                   ANASAZI, INC.
a Maryland Real Estate                 a Delaware corporation
Investment Trust
                                       BY: /s/ [ILLEGIBLE]
BY: /s/ MARSHALL LOEB                     ---------------------------
   --------------------------
      Marshall Loeb                    IT'S: President & COO
IT'S: Vice President                        -------------------------

                                                                       Please
                                                                       Initial:

                                                                       /s/ A

                                                                       /s/ CM

<PAGE>   53

                                    Exhibit I

                                Parking Schedule

                                   [GRAPHIC]

                                                                       Please
                                                                       Initial:

                                                                       /s/ A

                                                                       /s/ CM

<PAGE>   54

                             RIGHT OF FIRST REFUSAL

Provided that at the time of exercise Tenant is not and had not been in default
under any term or provision of this Lease, then, during the original term of
this Lease, Tenant shall have the right of first refusal to lease that certain
additional space as soon as it is vacated by AT&T in the Project consisting of
approximately 8,860 square feet and described as Suite B102, as outlined on the
floor plan attached hereto as "Exhibit I" ("the Additional Space"). In the event
that Landlord shall receive a bona fide offer, as hereinafter defined, from a
third party or entity to lease all or a portion of the Additional Space at any
time during the original term of the Lease, which offer Landlord desires to
accept, Landlord shall promptly give Tenant written notice of such offer, which
notice shall describe all of the provisions thereof. Within (5) five business
days of the date of mailing of that notice, Tenant shall give Landlord written
notice of its election to lease that portion of the Additional Space referred to
in the offer, at the rental rate and upon all other terms and conditions
described in the offer, and subject to all other terms and conditions of this
Lease, as applicable. If the offer is for space in the Project greater than the
Additional Space, but encompassing the Additional Space, then, in exercising
this right, Tenant must lease the entire space subject, to the offer, not only
the Additional Space.

If Landlord fails to receive written notice of Tenant's election to lease the
space as set forth in the offer within such 5-business day period, then Landlord
may proceed to lease to the third party the Additional Space as set forth in the
offer, and Tenant's rights as set forth in this Section shall expire and be of
no force and effect through the Lease term.

If Landlord receives written notice of Tenant's agreement to lease the space
referred to in the offer within that period, then Landlord and Tenant shall
enter into a Lease Amendment evidencing the lease of that space to Tenant upon
the terms and conditions of the offer, and subject to all other provisions
[ILLEGIBLE] applicable, and that [ILLEGIBLE]

<PAGE>   55

                                   Exhibit "J"

                             Right of First Refusal

The premises is are located at 11226 N. 23rd Avenue, Suite B-102, Phoenix,
Arizona 85029.

                                   [FLOOR PLAN]

                                                                       Please
                                                                       Initial:

                                                                 /s/ [ILLEGIBLE]

                                                                 /s/ [ILLEGIBLE]

<PAGE>   56

                            SECOND AMENDMENT TO LEASE

That certain lease dated January 31, 1997 by and between EastGroup Properties,
Landlord, and Anasazi, Inc., Tenant, for the premises located at 11048 & 11226
N. 23rd Avenue Building A & B, Suite A104, A103, A102, B101, is amended this 1st
day of November, 1997 solely as hereinafter described.

Effective the 1st day of November, 1997, the clauses below are substituted for
like numbered clauses in the Lease agreement.

1(h) Term:
                  A104     02/15/97 - 03/31/00
                  A102     04/01/97 - 03/31/00
                  A103     04/01/97 - 11/30/01
                  B101     11/10/97 - 12/31/02

1(i) Scheduled Commencement Date:

                  A104     02/15/97
                  A102     04/01/97
                  A103     04/01/97
                  B101     11/10/97

1(j) Fixed Rent

02/15/97 - 03/31/97 @ $10,031.98/NNN/Month* (A104)
04/01/97 - 03/31/00 @ $18,000.00/NNN/Month* (A104, A103, A102)
11/10/97 - 03/31/00 @ $12,390.67/NNN/Month* (B101)
04/01/00 - 04/30/00 @ $ 3,234.55/NNN/Month* (A103)
04/01/00 - 04/30/00 @ $12,390.67/NNN/Month  (B101)
05/01/00 - 11/30/01 @ $ 3,234.55/NNN/Month* (A103)
05/01/00 - 11/30/01 @ $14,219.49/NNN/Month* (B101)
12/01/01 - 12/31/02 @ $14,219.49/NNN/Month* (B101)

*Plus applicable rental taxes.

All other terms and conditions of said Lease shall remain in full force and
effect.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the
date first written above.

"LANDLORD"                                  "TENANT"

EastGroup Properties                        Anasazi, Inc.
a Maryland Real Estate Investment Trust     a Delaware corporation

BY: /s/ MARSHALL LOEB                       By: /s/ [ILLEGIBLE]
   ------------------                          -----------------
Its: Vice President                         Its: [ILLEGIBLE]
                                                ----------------

<PAGE>   57

[PEGASUS SOLUTIONS LETTERHEAD]

September 27, 2000
                                 CERTIFIED MAIL
Mr. William D. Petsas
Senior Vice President
EastGroup Properties
1553 West Todd Drive, Suite 203
Tempe, AZ 85283

RE: NOTICE TO EXERCISE OPTION TO RENEW
    SUITES A-102 AND A-104
    SECOND NOTICE

Dear Mr. Petsas:

On September 6, 2000, our agent, Chuck Nixon of CB Richard Ellis, sent to Ms.
Cathleen Yeager, via certified mail, Notice To Exercise Option to Renew for the
period 4/1/01-11/30/01, pursuant to Exhibit "E" of the Lease dated January 31,
1997 between Pegasus Solutions Companies, formerly REZsolutions, Inc.,
formerly Anasazi Inc. ("Tenant") and EastGroup Properties ("Landlord") and
amended by the First Amendment To Lease dated August 7, 1997 and further amended
by the Second Amendment dated November 1, 1997, and Third Amendment dated
November 2, 1999. This Notice, a copy of which is attached, was received at your
offices at 1533 West Todd, Suite 203, Tempe, Arizona 85283 on September 8, 2000,
and was signed for by one of your employees.

In addition, you have had conversations concerning this renewal with our agent,
Chuck Nixon, both prior to and subsequent to receipt of the Notice to Exercise.

Per Exhibit E of the Lease, "Landlord, within five (5) business days of the
notice of exercise, shall present Tenant in writing with its lease terms for the
Extended Term, including the proposed rental rate". As of the date of this
letter, approximately thirteen (13) business days have expired, and EastGroup
has failed to provide Tenant or its agent with Landlord's terms, as required by
the lease.

Please be aware that Tenant fully intends to exercise its renewal option for
the period 4/1/01-11/30/01, and that Tenant hereby certifies that it has not
waived any of its rights as a result of Landlord's failure to comply with the
terms of Exhibit "E" of the Lease.

Sincerely,

/s/ STEVE GREENSPAN

Steve Greenspan
Director of Facilities

<PAGE>   58

[PEGASUS SOLUTIONS LETTERHEAD]

Cc: Chuck Nixon -- CB Richard Ellis
    Cathleen Yeager -- EastGroup Properties (certified mail)

<PAGE>   59

[PEGASUS SOLUTIONS LETTERHEAD]

September 6,2000

                                 CERTIFIED MAIL

Ms. Cathleen Yeager
Property Manager
EastGroup Properties
1553 West Todd, Suite 203
Tempe, Arizona 85283

RE:      NOTICE TO EXERCISE OPTION TO RENEW
         SUITES A-102 AND A-104

Dear Cathleen:

This letter serves as official notice for Pegasus Solutions Companies, formerly
Rezsolutions, Inc., formerly Anasazi Inc., to exercise its option to renew the
Lease for Suites A-102 and A-104, located at 11048 North 23rd Avenue, Phoenix,
Arizona 85029. This notice is provided pursuant to the agreed-upon terms, as
outlined in Exhibit "E" of the Lease dated January 31, 1997, between Anasazi
Inc. ("Tenant") and EastGroup Properties ("Landlord") and amended by the First
Amendment To Lease dated August 7, 1997 and further amended by the Second
Amendment dated November 1, 1997, and Third Amendment dated November 2, 1999.

Pursuant to Exhibit "E", Landlord has five (5) business days from receipt of
this notice to provide Tenant with its offer for the Extended Term.

Pursuant to Exhibit "E", the Extended Term shall be for a period of eight (8)
months, starting April 1, 2001 and ending November 30, 2001. Landlord's offer
should include a three percent (3%) commission paid by Landlord to Tenant's
broker, CB Richard Ellis.

Sincerely,

/s/ CHUCK NIXON

Chuck Nixon
First Vice President
Corporate Services
602-735-5653

CN/pe

cc:      Steve Greenspan -- Pegasus Solutions

<PAGE>   60

                            THIRD AMENDMENT TO LEASE

That certain lease dated the 31st day of January 1997, by and between EASTGROUP
PROPERTIES, L.P., A DELAWARE LIMITED PARTNERSHIP, Landlord, and ANASAZI, INC., A
DELAWARE CORPORATION, NOW KNOWN AS REZSOLUTIONS, INC., Tenant, for the premises
located at 11048 N. 23rd AVENUE, SUITES A102 AND A104, PHOENIX, ARIZONA, is
amended this 2ND DAY OF NOVEMBER 1999 as hereinafter described.

Effective the 2ND DAY OF NOVEMBER 1999, the Clauses below are substituted for
like numbered clauses in the Lease Agreement.

1.(d)    APPROXIMATE SQUARE FOOTAGE OF PREMISES (PARAGRAPH 2): For Suites A102
         and A104 consisting of approximately 21,800 square feet.

1.(h)    TERM (PARAGRAPH 4): For Suites A102 and A104, April 1, 2000 through
         March 31, 2001.

1.(i)    SCHEDULED COMMENCEMENT DATE FOR A102 AND A104: April 1, 2000.

1.(j)    FIXED RENT (SUBPARAGRAPH 5(a)): For Suites A102 and A104, the rental
         rate will be $15,696.00 per month plus applicable rental taxes,
         exclusive of all operating expenses including, but not limited to, all
         common area charges, property taxes and insurance.

All other terms and conditions of said Lease shall remain in full force and
effect.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the
date first written above.

LANDLORD: EastGroup Properties, L.P.,       TENANT: REZsolutions, Inc., formerly
          a Delaware limited partnership            Anasazi, Inc.,
                                                    a Delaware Corporation

X /s/ MARSHALL LOEB                         X /s/ MAC HIGHET
 ---------------------------------------     -----------------------------------
By: Marshall Loeb                           By: Mac Highet
Its: Senior Vice President                  Its: President & CEO
Date: 11-18-99                              Date: 11/10/99<PAGE>   1
                                                                   EXHIBIT 10.19

                            DATED 1st September 1987

                         BRIDGER PROPERTIES LIMITED (1)

                                       and

                           NEWS INTERNATIONAL PLC (2)

                                      LEASE

                                     -- of -

                                2 Kew Bridge Road
                               Brentford Middlesex

                  TERM COMMENCES   :     24th June 1987

                  LENGTH           :     25 years

                  EXPIRES          :     23rd June 2012

                  RENT             :     L320,000.00 per annum (subject to
                                         review at the fifth tenth fifteenth and
                                         twentieth anniversaries of the
                                         commencement date)

                                 Jonas & Parker
                                45 Castle Street
                                    Salisbury
                                    Wiltshire

<PAGE>   2

THIS LEASE made the 1st [STAMP]
September One thousand nine hundred and eighty-seven

BETWEEN:-

(1) BRIDGER PROPERTIES LIMITED whose registered office is situate at 36 Milford
Street Salisbury Wiltshire (hereinafter called "the Landlord" which expression
shall where the context so admits include the reversioner for the time being
expectant on the determination of the term hereby granted)

(2) NEWS INTERNATIONAL Plc whose registered office is situate at P.O. Box 495
1 Virginia Street London E1 9XY (hereinafter called "the Tenant" which
expression shall whether the Tenant or any of its successors in title be one
person or more than one person or a firm or company or any combination thereof
and where the context so admits include his its or their respective successors
in title)

WITNESSETH as follows:-

1.  IN this Lease:-

    (1) The following expressions have unless the context otherwise requires
    the following meanings:-

          (a) "the Demised Premises" means the premises described in Part I of
          the First Schedule and all additions and alterations thereto and all
          Landlord's fixtures from time to time annexed thereto

          (b) "the Yearly Rent" means a rent of Three hundred and twenty
          thousand pounds (L320,000.O0) per annum or such other rent as may from
          time to time be substituted therefor pursuant to the provisions of the
          Second Schedule

                                        1

<PAGE>   3

     (c) "the Insurance Rent" means the amount of gross premiums and other costs
     and expenses from time to time required to effect or procure the insurance
     of the Demised Premises (including loss of rent insurance) in accordance
     with the Landlord's covenant in that behalf hereinafter contained

     (d) "the Management Charge" means such costs and expenses as may be
     reasonably incurred by the Landlord in retaining the services of agents for
     the purpose of acting as agent of the Landlord in connection with the
     performance and observance of all rights obligations covenants agreements
     and undertakings of the parties hereunder other than for the purpose of
     collecting the Yearly Rent and Insurance Rent PROVIDED THAT in no event
     shall such charge exceed three per centum of the aggregate of the annual
     Yearly Rent and Insurance Rent payable hereunder

     (e) "Conducting Media" means sewers drains pipes wires cables ventilation
     ducts heating ducts and other conducting media and includes any apparatus
     (not being tenant's or trade fixtures) connected to any Conducting Media
     for enabling use to be made of the Conducting Media or of any water gas
     electricity heating ventilation air conditioning or other effluvia passing
     through Conducting Media

     (f) "Legislation" means all Acts of Parliament and all orders regulations
     and bye-laws made pursuant to any

                                        2

<PAGE>   4

     Act of Parliament or otherwise having the force of law

     (g) "the Planning Acts" means the legislation from time to time in force
     relating to Town and Country Planning

     (h) "Rent Restriction Legislation" means any legislation which renders
     unlawful or otherwise precludes (a) any demand for or payment of or
     acceptance of the whole or any part of the Yearly Rent which would
     otherwise be for the time being payable hereunder or (b) the requiring or
     carrying out of any review of the Yearly Rent at the times and in the
     manner herein provided

     (i) "the Review Dates" means the fifth tenth fifteenth and twentieth
     anniversaries of the term hereby granted

     (j) "Insured Risks" means the risk of damage or destruction by fire (other
     than fire risks from time to time excluded from the fire policy issued by
     the Landlord's insurers) storm earthquake riot damage by malicious persons
     damage impact and aircraft flooding and damage by bursting water pipes or
     any such other risks as the Landlord at his own discretion may from time to
     time insure pursuant to the Landlord's covenant in that behalf hereinafter
     contained

     (k) "the Prescribed Rate" means interest of a rate 3 per cent above the
     base rate from time to time of Lloyds Bank Plc

     (l) "Sub-lettable Unit" shall mean any of the areas on the ground first and
     second floors of the Demised

                                        3

<PAGE>   5

         premises shown for the purposes of identification only edged blue on
         the plans B, C and D annexed hereto

     (2) Where two or more persons constitute a party to this Lease covenants by
     that party herein contained or implied shall be deemed to be made by those
     persons jointly and severally

     (3) References to "the tenancy" hereinafter contained shall be deemed to be
     references both to the term of years hereby demised and to any extension or
     continuation thereof whether pursuant to the provisions of the Landlord and
     Tenant Act 1954 or any similar legislation from time to time in force or
     otherwise which tenancy shall be deemed to have commenced on the date of
     commencement of the said term hereinafter stipulated

     (4) The expression "termination" in relation to the tenancy means
     termination in any manner whether by effluxion of time notice forfeiture
     surrender or otherwise and the expression "terminating" bears a
     corresponding meaning

     (5) Words importing the masculine gender only shall also import the
     feminine gender or the feminine gender shall (in relation to a corporation
     aggregate) also import the appropriate words of the neuter gender and words
     importing the singular number only shall also import the plural number and
     respectively vice versa

     (6) Any reference to any Act of Parliament shall include any modification
     extension or re-enactment thereof for the time being in force and shall
     include any instrument

                                        4

<PAGE>   6

     regulation scheme order plan permission direction or condition for the time
     being issued or made or given thereunder or deriving validity therefrom

2.   THE Landlord hereby demises unto the Tenant ALL THOSE the Demised Premises
TO HOLD the same unto the Tenant for the term of Twenty-five years commencing on
the 24th day of June One thousand nine hundred and eighty-seven YIELDING AND
PAYING therefor throughout the term the Yearly Rent and the Insurance Rent the
Yearly Rent being payable by equal quarterly installments in advance on the
usual quarter days by standing order to the Landlord's bank account the
Insurance Rent and the Management Charge being payable forthwith on demand from
time to time and to be recoverable as rent by the Landlord and subject to all
the Landlord's remedies under this Lease in respect of rent in arrear and
SUBJECT TO the matters referred to in Part II of the First Schedule so far as
the same affect the Demised Premises and are still subsisting and capable of
taking effect

3.   THE Tenant hereby covenants with the Landlord:

     (1) To pay the Yearly Rent and the Insurance Rent hereby reserved at the
     times and in the manner aforesaid and any Value Added Tax payable thereon
     respectively and without any deduction

     (2) To pay all rates taxes assessments impositions and outgoings whether of
     an existing or novel kind now or at any time hereafter during the said term
     levied imposed or charged exclusively in respect of the Demised Premises or
     any part thereof whether payable by the Landlord or the Tenant and a fair
     and due proportion (as determined by the

                                        5

<PAGE>   7

     Landlord's Surveyor whose decision shall be final) of any such rates taxes
     assessments impositions and outgoings levied imposed or charged on the
     Demised Premises in common with any other premises of the Landlord

     (3) To repair and keep in good and substantial repair and to renew and
     rebuild whenever necessary and keep clean and properly decorated all to the
     reasonable satisfaction of the Landlord's Surveyor the whole of the Demised
     Premises damage by the Insured Risks excepted provided that the policy or
     policies or insurance effected by the Landlord shall not have been vitiated
     or payment of the policy monies refused in whole or in part as a
     consequence of some acts neglect or omission of or permitted by the Tenant
     or any sub-tenant or their respective servants agents licencees or
     invitees

     (4)  (a) In every third year of the tenancy and also in the last three
          months of the tenancy howsoever terminating in a workmanlike manner to
          prepare and paint with at least three coats of good quality paint of a
          colour approved by the Landlord all parts of the exterior of the
          Demised Premises previously or usually painted and clean and where
          appropriate repoint and treat with the like protective and decorative
          finishes as shall have previously been applied or otherwise with such
          protective and decorative finishes approved by the Landlord as are
          necessary for their proper maintenance all other parts of the exterior
          of the Demised Premises

                                        6
<PAGE>   8

          (b) In every fifth year of the tenancy and also in the last three
          months of the tenancy howsoever terminating in a workmanlike manner to
          prepare and paint with at least two coats of good quality paint all
          parts of the interior of the Demised Premises previously or usually
          painted and clean and where appropriate treat with the like protective
          and decorative finishes as shall previously have been applied or
          otherwise with such protective and decorative finishes as are
          necessary for their proper maintenance all other parts of the
          interior of the Demised Premises Provided that the painting and
          treatment to be carried out in the last three months of the tenancy
          shall be in colours and with finishes previously approved by the
          Landlord

     (5)  To keep the Demised Premises in a clean and tidy condition and
     regularly to remove therefrom all waste or offensive materials and articles
     and without prejudice to the generality of the foregoing to maintain the
     flower beds forming part of the Demised Premises in a neat and tidy
     condition and properly planted and to replace all shrubs as and when
     necessary and not to cut down any trees, shrubs or bushes therein without
     the consent of the Landlord which shall not be unreasonably withheld

     (6)  To comply in all respects with all requirements (whether placed on the
     Landlord or the Tenant) of all present and future legislation and of all
     competent authorities as to the condition of the Demised Premises and

                                       7

<PAGE>   9

     the user thereof and the activities carried on thereat and any works or
     alterations executed or required to be executed thereon or in respect
     thereof or in any other way affecting the Demised Premises and to keep the
     Landlord indemnified against all actions proceedings claims or demands
     which may be brought or made by reason of any such requirements not having
     been duly complied with and if as a result of any such requirements the
     Landlord shall carry out any works or alterations to the Demised Premises
     the Tenant shall repay to the Landlord on demand the expenses thereby
     incurred by the Landlord or a fair proportion thereof as determined by the
     Landlord's Surveyor whose decision shall be final save in the case of
     manifest error

     (7) At  the termination of the tenancy to yield up the Demised Premises and
     all fixtures therein in such repair and condition as is required by the
     covenants on the part of the Tenant herein contained PROVIDED THAT:-

          (a) the Tenant may before such termination remove all tenant's or
          trade fixtures but shall make good any damage thereby caused to the
          Demised Premises to the Landlord's reasonable satisfaction

          (b) if after the termination of the tenancy there shall be left on the
          Demised Premises any tenant's or trade fixtures or any chattels or
          refuse the Landlord may treat the same as having been abandoned by the
          Tenant and may arrange for the removal and destruction or disposal
          thereof as the Landlord thinks fit and the

                                       8

<PAGE>   10
          Tenant shall pay to the Landlord on demand the cost of such removal
          and destruction or disposal and shall indemnify the Landlord against
          any liability resulting therefrom and

          (c) if the Tenant shall fail to yield up the Demised Premises in such
          repair and condition as aforesaid the Landlord may if it thinks fit
          effect any repairs decorations and other works which ought to have
          been carried out by the Tenant pursuant to the covenants on the part
          of the Tenant herein contained and the Tenant shall pay to the
          Landlord on demand the cost of such repairs decorations and other
          works effected by the Landlord together with mesne profits at a rate
          equal to the rack rental value of the Demised Premises at the date of
          such termination for the period reasonably required for the carrying
          out of such work and the Landlord's Surveyor's certificate as to the
          amount of such cost and mesne profits shall be conclusive and binding
          on the parties

     (8)  To permit the Landlord and those authorised by it at all reasonable
     times during normal business hours (except in case of emergency) on giving
     reasonable notice to the Tenant (except in case of emergency) to enter upon
     the Demised Premises or any part thereof for any of the following
     purposes:-

          (a) inspecting the Demised Premises and taking schedules of the
          condition thereof and of the Landlords fixtures therein

                                        9

<PAGE>   11

          (b) repairing altering adding to rebuilding or replacing any adjacent
          premises or any Conducting Media comprised in the Demised Premises but
          which serve or are capable of serving other premises and

          (c) doing anything which the Landlord considers necessary for the
          performance by the Landlord of the covenants on its part hereinafter
          contained

     PROVIDED THAT the person so entering shall cause as little inconvenience as
     reasonably possible to the Tenant or other occupiers of the Demised
     Premises and shall make good any damage to the Demised Premises or the
     property or fixtures and fittings of the Tenant or other occupiers of the
     Demised Premises which that person causes

     (9)  (a) To permit the Landlord and those authorised by it at all
          reasonable times during normal business hours (except in case of
          emergency) on giving reasonable notice to the Tenant (except in case
          of emergency) to enter upon the Demised Premises in order to carry out
          any works to which this sub-clause applies and which the Tenant has
          failed to carry out within two months after service upon the Tenant of
          a notice requiring the same to be carried out

          (b) The works (hereinafter referred to as "the Prescribed Works") to
          which this sub-clause applies are:-

          (i)  the carrying out and completion in the manner required by this
               Lease of any repairs or other

                                       10

<PAGE>   12

               works which the Tenant is obliged to carry out by the terms of
               this Lease

          (ii) the removal of any alterations additions or other works carried
               out or commenced on the Demised Premises without all necessary
               licences consents permissions and approvals of the Landlord the
               Local Planning Authority and any other authority or person having
               been obtained and

          (iii) the removal or (at the Landlord's option) the completion in a
               good and workmanlike manner in accordance with the terms of this
               Lease and of such licences consents permissions and approvals of
               any alterations additions or other works which have not been so
               completed

          Provided that the carrying out of such works shall cause as little
          inconvenience as reasonably possible to the Tenant or other occupiers
          of the Demised Premises or the property or fixtures and fittings of
          the Tenant or other occupiers of the Demised Premises and the Landlord
          shall make good any damage caused to the Demised Premises or the
          property

     (10) To pay to the Landlord on demand all expenses (including Solicitors'
     Surveyors' and other professional fees) reasonably and properly incurred by
     the Landlord in or in connection With:-

          (a) carrying out any of the Prescribed Works

          (b) the preparation and service of any notice under Section 146 or
          Section 147 of the Law of Property Act

                                       11

<PAGE>   13

          1925 notwithstanding that forfeiture is avoided otherwise than by
          relief granted by the Court or

          (c) the preparation and service at any time during or after the
          termination of the tenancy of any notice or schedule of dilapidations

     (11) Not to make any alteration or addition to or in any way injure the
     Demised Premises or any part thereof or the internal arrangement thereof or
     the Conducting Media comprised in or serving the Demised Premises other
     than alterations to the internal arrangement of the Demised Premises
     through the erection or demounting of non-structural demountable
     partitioning which does not affect the structure thereof full written
     details including plans and specifications of such erection or demounting
     to be given to the Landlord immediately on completion thereof PROVIDED that
     with the prior written consent of the Landlord such consent not to be
     unreasonably withheld the Tenant may make internal alterations to the
     Demised Premises and connections to the Conducting Media therein which do
     not affect the structure thereof full written details including plans and
     specifications of such alterations and connections to be given to the
     Landlord immediately upon completion thereof

     (12) Not to interfere with or obstruct any Conducting Media and without
     prejudice to the generality of the foregoing not to throw or permit to be
     thrown any dirt rubbish rags or other refuse into the sinks lavatories
     cisterns or waste or soil pipes in the Demised Premises

                                       12

<PAGE>   14
     (13) Not without the consent of the Landlord to display upon the exterior
     of the Demised Premises or upon the interior thereof so as to be visible
     outside the Demised Premises any lettering advertisement sign notice
     placard flag or similar device provided that such consent shall not be
     unreasonably withheld or delayed to a sign displaying the name and business
     of the Tenant or of any permitted sub-tenant and the name of the Building

     (14) Not to use or permit to be used the Demised Premises or any part
     thereof for any illegal or immoral purpose or for the sale of any beer wine
     spirit or liquor or for any sale by auction and not to permit any person to
     reside at the Demised Premises and not to bring upon the Demised Premises
     anything of an explosive or inflammable nature or which may overload any
     part of the Demised Premises

     (15) Not to use the Demised Premises or any part thereof for any purpose
     other than as offices as the same were previously defined in Class II of
     the Town and Country Planning (Use Classes) Order 1972

     (16) In relation to the Planning Acts:-

          (a) not to make any application under the Planning Acts for permission
          to carry out any development (as defined by the Planning Acts) or for
          the approval of anything in connection therewith unless the Tenant
          shall previously have obtained all consents licences and approvals of
          the Landlord required under this Lease for the carrying out of such
          development

                                       13

<PAGE>   15
          (b) Not to make any such application except in such form and for
          such duration whether limited or unlimited as the Landlord may approve
          which approval shall not be unreasonably withheld

          (c) Not to implement any planning permission or approval unless the
          same has been submitted to and approved in writing by the Landlord
          whose approval shall not be unreasonably withheld

          (d) In the event of the Tenant carrying out any works in
          implementation of any planning permission or approval so approved to
          carry out and complete all works required to implement the same in a
          good and workmanlike manner in accordance with the terms of such
          permission or approval

          (e) To make or secure to the satisfaction of the Secretary of State or
          other authority appointed for the purpose any payment that may be
          required for any planning permission or approval which may be granted
          and so to do for the full term of the permission or approval and
          similarly to make or secure any payment that may be required in
          respect of any development or the continuance or retention of any
          development being a permission or approval implemented or development
          carried out or continued or retained at any time during the currency
          of the tenancy

          (f) Unless the Landlord otherwise directs to carry out before the
          termination of the tenancy or such earlier

                                       14

<PAGE>   16

          date as may be nominated by the Landlord any works required to be
          carried out to the Demised Premises by a date subsequent to the
          termination of the tenancy by any limitation or condition to which
          any planning permission or approval implemented by or under or for the
          benefit of the Tenant is subject

          (g) To produce to the Landlord or the Landlord's agents when required
          all such drawings documents and other evidence that the provisions of
          this sub-clause (16) have been complied with as it or they may
          reasonably require

          (h) For the avoidance of doubt the Landlord's approval of any
          application permission or approval under this sub-clause may be
          refused on the grounds (inter alia) that the period thereof or
          anything contained therein or omitted therefrom or the implementation
          thereof would in the reasonable opinion of the Landlord's Surveyor be
          likely to be prejudicial to the interests of the Landlord whether in
          relation to the Demised Premises or any neighbouring premises or
          otherwise and whether during the currency of the tenancy or thereafter
          or might in the Landlord's opinion give rise to a taxation or
          potential taxation liability on the Landlord

     (17) Within seven days of the receipt of the same by the Tenant to give
     full particulars to the Landlord or the Landlord's Surveyor of any notice
     or order or proposal for a notice or order given issued or made to or on
     the Tenant by

                                       15

<PAGE>   17

     any competent authority pursuant to Legislation and if so required by the
     Landlord or the Landlord's Surveyor to produce such notice order or
     proposal to them and without delay to take all necessary steps to comply
     with any such notice order or proposal and at the request of the Landlord
     or the Landlord's Surveyor but at the cost of the Tenant to make or join
     with the Landlord in making such objections or representations against or
     in respect of any such notice order or proposal as they or any of them
     shall deem expedient

     (18) Not knowingly to permit any person to encroach upon or to acquire any
     right of light air way water or drainage or other easement over the Demised
     Premises but forthwith to inform the Landlord of any such encroachment or
     of any act or thing which might result in the acquisition of any right or
     easement over the Demised Premises and to do all acts and things which may
     be necessary or expedient to prevent such encroachment or the acquisition
     of any such right or easement Provided that if the Tenant shall fail to do
     such acts and things as aforesaid the Landlord shall have power to enter
     upon the Demised Premises for the purpose of doing the same and any
     expenses which the Landlord thereby incurs shall be paid by the Tenant to
     the Landlord on demand

     (19) Not to do or omit or cause any act or thing which might invalidate or
     prejudicially affect any insurance of the Demised Premises or any adjoining
     premises or render to be insurance monies in whole or in part irrecoverable
     and at

                                       16

<PAGE>   18

     the Tenant's expense to comply with any requirements of the insurers for
     the time being thereof

     (20) In the event of the premiums payable for the insurance of the Demised
     Premises or any neighbouring premises being increased by reason of any act
     or default of the Tenant to pay on demand to the Landlord or to whomsoever
     the Landlord shall direct the amount of such increase

     (21) Not to mortgage charge part with the possession of or permit any
     other person to occupy the whole or any part of the Demised Premises save
     that the Tenant may with the written consent of the Landlord (which consent
     shall not be unreasonably withheld or delayed):-

          (a) assign the whole of the Demised Premises to a person (in this
          paragraph called "the proposed Assignee") not intending to use the
          Demised Premises or any part thereof for any purpose other than in
          accordance with Clause 3 (15) hereof who has previously entered into a
          covenant with the Landlord in such form as the Landlord shall
          reasonably require to pay the rent hereby reserved and to observe and
          perform the Tenant's covenants and the conditions herein contained and
          who (if a private limited company) has also procured that two persons
          acceptable to the Landlord have each entered into a covenant with the
          Landlord in such form as the Landlord shall reasonably require that
          the proposed Assignee will as from the date of the assignment of the
          Demised Premises to the proposed Assignee pay such rent and observe
          and perform such covenants and conditions or

                                       17

<PAGE>   19

          (b) underlet the whole of the Demised Premises to a person not
          intending to use the Demised Premises or any part thereof for any
          purpose other than in accordance with Clause 3(15) hereof who has
          previously entered into a covenant with the Landlord in the same terms
          as this paragraph at the best rent reasonably obtainable without
          taking a fine or premium by means of an underlease which contains like
          covenants on the part of the underlessee to the Tenant's covenants and
          like conditions to the conditions herein contained and the like
          provisions for review at each of the Review Dates of the rent thereby
          reserved to those contained in the Second Schedule hereto

          (c) underlet part of the Demised Premises on the same terms as are
          contained in clause 3(21)(b) hereof PROVIDED that:

          (i)  save as provided in paragraph (d) below the maximum number of
               underlettings permitted by this sub-clause shall be two and

          (ii) underletting of part of any sub-lettable unit is hereby
               expressly prohibited

          (d) for the purposes of paragraph (c) of this sub-clause an
          underletting of two or more sub-lettable units to the same tenant
          shall be treated as a single underletting and notwithstanding the
          first proviso to the said sub-clause more than two underlettings
          shall

                                       18

<PAGE>   20

          be permitted pursuant thereto provided that the security of tenure
          provisions of Part II of The Landlord and Tenant Act 1954 shall have
          been excluded by Order of the Court from any such additional
          underletting and PROVIDED FURTHER that so long as this Lease shall be
          vested in NEWS INTERNATIONAL PLC such company may without the
          necessity of obtaining any such consent part with possession or
          occupation of the Demised Premises as a whole or in part with or to a
          holding or subsidiary company (within the meaning of Section 736 of
          the Companies Act 1985) for the same purposes as are permitted by this
          Lease provided no tenancy is thereby created

     (22) Not to allow any underlessee or other person deriving title to the
     Demised Premises from the Tenant to assign mortgage charge underlet part
     with the possession of or permit any other person to occupy the Demised
     Premises or any part thereof save that with the written consent of the
     Landlord which consent shall not be unreasonably withheld and upon terms
     (mutatis mutandis) of paragraph (22)(a) & (b) of this Clause the Tenant
     may permit such underlessee or other person to assign or underlet the whole
     of the Demised Premises

     (23) (a) To procure that every assignee underlessee licensee or other
          person in whose favour any disposition (whether affecting the Demised
          Premises or any derivative interest therein) is effected or upon whom
          the Demised Premises or any such derivative

                                       19

<PAGE>   21

          interest shall devolve by operation of law shall (without any demand
          in that behalf) within twenty-one days after such disposition or
          devolution occurs leave a certified copy of the instrument effecting
          the disposition or notice of the devolution together with any
          instrument evidencing the same with the Landlord for registration

          (b) To procure that upon every registration of each instrument or
          notice under the foregoing provisions the person leaving the same pays
          to the Landlord its registration fee of fifteen pounds together with
          any Value Added Tax payable thereon

     (24) To permit the Landlord at any time (in the case of a proposed sale
     mortgage or charge of the Landlord's interest) or during the last six
     months of the term hereby granted and the remainder of the tenancy
     thereafter (in the case of a proposed letting) to display upon some part of
     the exterior of the Demised Premises in such a position as not to interfere
     with the light or air enjoyed by the Demised Premises or the Tenant's user
     thereof a notice advertising that the same are for sale or to let and to
     permit prospective purchasers mortgagees chargees or lessees to inspect
     the Demised Premises at reasonable times by prior appointment during normal
     business hours

     (25) To pay on a full indemnity solicitor and own client basis the
     reasonable and properly incurred costs and disbursements (including stamp
     duties) of the Landlord's

                                       20

<PAGE>   22

     Solicitors and the reasonably and properly incurred costs and
     disbursements of the Landlord's Surveyors Architects and other
     professional advisers and the Landlords reasonable administration fee in
     connection with any Deed or other thing hereby required to be executed or
     done at the Tenant's expense or any licence consent or approval applied for
     by the Tenant relating to the Demised Premises or the provisions of this
     Lease whether or not the same shall be executed done or given together with
     any Value Added Tax payable thereon

     (26) Not to store stack place lay out or leave outside the Demised Premises
     any rubbish or refuse or other material (except in refuse bins designed for
     the purpose in the bin area) and not to obstruct or cause or suffer to be
     obstructed the accessways serving or adjoining the Demised Premises or any
     adjoining premises or any part or parts thereof

     (27) To ensure that nothing of an explosive or highly inflammable nature
     and no engine or machinery shall be brought into or stored in the Demised
     Premises nor any safe or other heavy article which in the opinion of the
     Landlord is likely to affect the stability of the structure of the Demised
     Premises

     (28) If so required by the Landlord to pay forthwith on demand interest at
     the Prescribed Rate both before and after judgement upon:-

          (a) any instalment of the Yearly Rent or any sum due as or as part of
          or on account of the Insurance Rent

                                       21

<PAGE>   23

          which shall not have been paid to the Landlord within seven days after
          the same became due for the period from the date on which the same
          became due to the date on which the same was paid and

          (b) any other expenditure by the Landlord for which the Tenant is
          obliged to reimburse the Landlord for the period from the date of such
          expenditure to the date on which such reimbursement was made

     (29) To indemnify the Landlord from and against all claims costs damages
     and expenses made against or incurred by the Landlord as a result of the
     Tenants occupation of the Demised Premises or on account of the rights
     herein reserved or granted by the Landlord

     (30) If and for so long as the Tenant is ordinarily resident outside
     England and Wales or is a company or corporate body with a registered
     office outside England and Wales the Tenant hereby covenants and declares
     that the Tenant will from time to time serve notice in writing on the
     Landlord specifying for the purposes of this Clause 3 (30) the name and
     address of a person within England and in any action in respect of this
     Lease being begun by writ by the Landlord against the Tenant such writ may
     (in addition to or substitution for any method specified by this Lease or
     by the Rules of the Supreme Court) be served upon the Tenant by posting
     such writ in an ordinary pre-paid envelope addressed to the person so
     specified from time to time and unless and until the Landlord shall be
     notified by the Tenant that the

                                       22

<PAGE>   24

     Tenant has specified some other person within England service upon such
     specified person shall be deemed to be good service of such writ upon the
     Tenant

4.   THE Landlord hereby covenants with the Tenant as follows:

     (1) that subject to the Tenant paying the Insurance Rent the Landlord will
     insure and keep insured the Demised Premises (unless such insurance shall
     be vitiated by any act or default of the Tenant or any person claiming
     through the Tenant or his or their servants agents licensees or visitors)
     with an insurance company of repute as the Landlord shall determine against
     damage or destruction by the Insured Risks in an amount equal to the full
     reinstatement value of the Demised Premises (as determined by the
     landlord's Surveyors) plus the estimated cost of clearing debris and of
     Architects' Surveyors' and other professional fees in connection with
     reinstatement plus (if required by the Landlord) provision for increased
     costs plus loss of three years' rent of the Demised Premises (but in
     respect of any years or part thereof from a Review Date and any years or
     part thereof following the expiration of the term hereby granted at such
     rent as shall reasonably be required by the Landlord) and will in the event
     of the Demised Premises being destroyed or damaged by any of the Insured
     Risks with all practicable speed and subject to all necessary licences
     consents permissions and approvals being obtainable lay out the money
     received in respect of such insurance (other than in respect of loss of
     rent) in reinstating the damage in respect of which the same shall
     have been paid

                                       23

<PAGE>   25

     (2) To permit the Tenant to notify the Landlord's insurers of the Tenant's
     interest in the Demised Premises

     (3) To provide the Tenant not more than once every twelve months on request
     with details of the said policy

     (4) That the Tenant paying the rents hereby reserved and observing and
     performing the covenants on its part and the conditions herein contained
     shall peaceably hold and enjoy the Demised Premises throughout the said
     term without any lawful interruption by the Landlord or any person lawfully
     claiming under through or in trust for the Landlord

5.   PROVIDED ALWAYS AND IT IS EXPRESSLY AGREED as follows:-

     (1) If the rents hereby reserved or any part thereof shall be unpaid for
     twenty one days after becoming payable (whether formally demanded or not)
     or if any covenant on the Tenant's part or conditions herein contained
     shall not be performed or observed or if the Tenant being an individual
     shall become bankrupt or enter into any composition with the Tenant's
     creditors or being a company shall enter into liquidation (other than a
     voluntary members liquidation for the purpose of reconstruction or
     amalgamation forthwith carried into effect and not involving any reduction
     of capital) or have a receiver appointed of its undertaking or assets or
     any part thereof or if any distress or execution shall be levied upon the
     Tenant's goods then and in any of the said cases it shall be lawful for the
     Landlord at any

                                       24

<PAGE>   26

     time thereafter to re-enter upon the Demised Premises or any part thereof
     in the name of the whole and thereupon this demise shall absolutely
     determine but without prejudice to the right of action of the Landlord in
     respect of any breach of the Tenant's covenants herein contained

     (2) That if the Demised Premises or any part thereof shall be so destroyed
     or damaged by any of the Insured Risks as to be unfit for occupation and
     use by the Tenant then (unless any of the insurance money in respect of
     loss of rent shall have been rendered irrecoverable by the act or default
     of the Tenant or any other person deriving title from the Tenant or
     any licensee or invitee of the Tenant or any such other person) the rent
     hereby reserved or a fair proportion thereof according to the extent of the
     damage shall be suspended and cease to be payable until the Demised
     Premises shall be reinstated and fit for occupation and use or until the
     expiration of three years from the date of such destruction or damage
     whichever shall be the earlier provided that any dispute as to the amount
     or length of such suspension shall be determined by an independent Surveyor
     (acting as expert) appointed by the President of the Royal Institution of
     Chartered Surveyors on the application of either party

     (3) The Landlord may retain for its own benefit any commissions or
     discounts received or obtained by it on or based on the gross premiums and
     other costs which would otherwise be paid incurred or suffered by the
     Landlord in insuring or procuring the insurance of the Demised Premises
     in accordance with the Landlord's covenant in that behalf herein contained.

                                       25

<PAGE>   27

     (4) Subject to the provisions of sub-section (2) of Section 38 of the
     Landlord and Tenant Act 1954 neither the Tenant nor any person deriving
     title from the Tenant to the whole or any part of the Demised Premises
     shall be entitled on quitting the Demised Premises or any part thereof to
     any compensation under Section 37 of the said Act

     (5) Any consent permission licence or approval purporting to be given by
     the Landlord to the Tenant in relation to this Lease or the Demised
     Premises whether or not the same be required to be obtained by the Tenant
     by any of the covenants or conditions herein contained shall be ineffective
     unless the same be given either:-

          (a) by Deed or

          (b) by writing under the hand of the Landlord or some duly authorised
          officer or agent of the Landlord expressly stating that the Landlord
          does not require the same to be by Deed

     (6) That no demand for or acceptance or receipt of any part of the Yearly
     Rent or any payment on account thereof shall operate as a waiver by the
     Landlord of any right which the Landlord may have to forfeit this Lease by
     reason of the breach of covenant or condition by the Tenant notwithstanding
     that the Landlord may know or be deemed to know of such breach at the date
     of such demand acceptance or receipt

                                       26

<PAGE>   28

                                     [MAP]

<PAGE>   29

                                  [FLOOR PLAN]

<PAGE>   30

                                  [FLOOR PLAN]

<PAGE>   31

                                  [FLOOR PLAN]

<PAGE>   32

     (7) Nothing herein contained shall operate to grant by implication or
     otherwise any estate right or easement not hereby expressly granted by the
     Landlord

     (8) The provisions of Section 196 of the Law of Property Act 1925 as
     amended by the Recorded Delivery Service Act 1962 shall apply to any
     notices served pursuant to or in connection with this Lease as if such
     notices were notices required or authorised under the said Acts

     (9) All references in this Lease to amounts (including rent) payable by the
     Tenant to the Landlord shall be construed as references to such amounts
     exclusive of Value Added Tax and the Tenant shall pay to the Landlord in
     addition to any such amount any Value Added Tax payable on that amount

     (10) This Lease shall be governed by and subject to the laws of England and
     Wales and the parties hereby submit to the jurisdiction of the Courts
     thereof

     IN WITNESS whereof the parties hereto have executed this Lease the day and
year above written

                               THE FIRST SCHEDULE

                                     PART I

                       Description of the Demised Premises

The entire building and premises including all walls foundations roofs boilers
plant machinery and lifts therein with the car parking spaces and flower beds
and walls thereof known as 2 Kew Bridge Road Brentford as the same are shown
for identification purposes only edged red on the plan A annexed hereto TOGETHER

                                       27

<PAGE>   33

with the benefit of the covenants on the part of the Grantee contained or
referred to in a Deed dated the Twenty-first day of November One thousand nine
hundred and sixty and made between Alan Russell Smith Edward Hamilton Fleetwood
Fuller and Philip Stirling Eliot (1) and Rodwell Estates Limited (2)

                                     PART II

                        Matters to which Lease is subject

All matters contained or referred to in the Charges Register of the Landlord's
freehold title no NGL 518559

                               THE SECOND SCHEDULE

                          Provisions as to Rent Review

1.   (a) The Landlord may require a review of the Yearly Rent at each of the
     Review Dates by notice (hereinafter called "a Review Notice") specifying
     the relevant Review Date given to the Tenant at any time before the
     relevant Review Date in which event the Yearly Rent payable as from the
     relevant Review Date shall be the higher of (i) the Yearly Rent payable
     immediately before such Review Date and (ii) the rack rental value of the
     Demised Premises at the relevant Review Date

     (b) If no Review Notice specifying a particular Review Date shall have been
     given to the Tenant before such Review Date then at any time thereafter the
     Landlord may give a Review Notice to the Tenant specifying such Review Date
     but save as provided in paragraph 2 of this Schedule such notice shall
     otherwise take effect as if the Review Notice had been given before the
     relevant Review Date and this Schedule shall be construed accordingly

                                       28

<PAGE>   34

2. If during any period whilst Rent Restriction Legislation is in force the
Landlord shall be precluded by such Legislation from requiring the Tenant to pay
the full amount of the Yearly Rent payable immediately before the commencement
of such period or of the Yearly Rent payable as from any Review Date occurring
during that period or if no review of rent shall for any reason whatsoever be
carried out in respect of a Review Date falling within that period the Landlord
may on each occasion during such period when such Legislation makes it lawful
for the Landlord to require the Tenant to pay an increased amount of rent and
also on the occasion when such period comes to an end require a supplementary
review of the Yearly Rent by a Review Notice given to the Tenant before or not
later than six months after the relevant occasion in which event the Yearly Rent
payable as from the relevant occasion shall be the highest of (i) the Yearly
Rent payable immediately before such occasion (ii) the rack rental value of the
Demised Premises at such occasion and (iii) the greatest amount of yearly rent
it would have been lawful to charge for the Demised Premises pursuant to the
terms of such Legislation and for the purposes of the remaining provisions of
this Schedule each such occasion shall be deemed a Review Date

3. Rack rental value of the Demised Premises means such rent as may be agreed or
determined as hereinafter provided to be the yearly rent at which the Demised
Premises could reasonably be expected to be let in the open market by a willing
landlord to a willing tenant for a term equal to the term then unexpired not

                                       29
<PAGE>   35

being less than Fifteen years by means of a lease containing the same provisions
(other than as to the amount of the yearly rent but including the same
provisions for rent review) as are herein contained on the following
assumptions:-

         (1) that the Demised Premises are in such condition as they would have
         been in had the Tenant's covenants herein contained been fully complied
         with at that date

         (2) that if the Demised Premises have been destroyed or damaged
         (whether by any of the Insured Risks or otherwise) they have been
         completely reinstated

         (3) that the Demised Premises are vacant and fit in all respects for
         occupation and use by the Tenant and

         (4) that there is disregarded any effect on rent or:-

                  (a) the Tenant or an underlessee or their respective
                  predecessors in title having been in occupation of the Demised
                  Premises

                  (b) goodwill attaching to the Demised Premises solely by
                  virtue of any business carried on thereat by the Tenant or an
                  underlessee or their respective predecessors in title or their
                  respective businesses

                  (c) any improvement lawfully carried out to the Demised
                  Premises by the Tenant or an underlessee or their respective
                  predecessors in title or their respective businesses at its
                  own expense not being an improvement carried out in pursuance
                  of an obligation to the Landlord or

                  (d) Rent Restriction Legislation

                                       30
<PAGE>   36

4.       (1) If the Landlord and the Tenant fail to agree upon the rack rental
         value of the Demised Premises within two months of receipt by the
         Tenant of the Review Notice the same shall be determined by an
         independent surveyor experienced in the letting and/or valuation of
         premises of a similar nature to and situate in the same region as the
         Demised Premises and put to a use the same as or similar to that of the
         Tenant (hereinafter called "the surveyor") agreed upon by the Landlord
         and the Tenant or failing agreement appointed on the application of
         either of them by the President for the time being of the Royal
         Institution of Chartered Surveyors and no delay however long in making
         such application shall prejudice the right of the Landlord or the
         Tenant to require the rack rental value to be determined as aforesaid

         (2) The Surveyor shall notify the Landlord and the Tenant in writing of
         his appointment and invite the parties to submit written
         representations and/or valuations to him within such reasonable period
         (being not longer than twenty-eight days) as he may specify

         (3) The Surveyor shall act as an expert in reaching his decision and he
         shall be obliged to consider any representations and/or valuations
         submitted to him and his decision shall be final and binding on the
         parties

         (4) The fees of the Surveyor shall be paid as directed by the Surveyor

         (5) If the Surveyor shall fail to reach a decision and give notice
         thereof to the Landlord and the Tenant within three

                                       31
<PAGE>   37

         months after his appointment or such longer period as the Landlord and
         the Tenant may from time to time agree or if he shall relinquish his
         appointment or die or if it shall become apparent that for any reason
         he will be unable to complete his duties hereunder the Landlord and the
         Tenant may apply to the said President for a substitute to be appointed
         in his place which procedure may be repeated as many times as necessary

         (6) If the said president shall for any reason not be available or be
         unable or unwilling to make any appointment applied for pursuant to
         this paragraph at the time of application therefor the appointment may
         be made by the Vice-President or next senior officer of the said
         Institution then available and able and willing to make such
         appointment or if no such officer of the said Institution shall be
         available and able and willing by such officer of such other
         professional body of surveyors as the Landlord shall nominate and any
         reference herein contained to the said President shall be deemed to
         include a reference to such Vice-President or other officer

5.       If the rent payable as from any Review Date shall not have been agreed
or determined by that Review Date the Tenant shall continue to pay rent at the
rate payable immediately before that Review Date but immediately upon the rent
payable as from that Review Date being agreed or determined shall pay to the
Landlord on demand the balance (if any) due from the Tenant in respect of the
period from that Review Date to the Quarter Day next after the rent payable as
from that Review Date shall have been agreed

                                       32
<PAGE>   38

         or determined together with interest on such balance at the Prescribed
         Rate calculated on a day-to-day basis for the period from that Review
         Date to the date of payment of such balance

         6. A Memorandum in such form as the Landlord's Solicitors shall
         reasonably require recording the amount of the Yearly Rent payable
         from the review date shall be endorsed on the Lease and on the
         Counterpart Lease and each party shall bear its own costs in connection
         therewith

         THE COMMON SEAL of BRIDGER
         PROPERTIES LIMITED was hereunto
         affixed in the presence of:

                                                               [SEAL]

             /s/ [ILLEGIBLE]              Director

             /s/ [ILLEGIBLE]              Secretary

         THE COMMON SEAL of NEWS
         INTERNATIONAL PLC was
         hereunto affixed in the
         presence of:

                                          Director

                                          Secretary

                                       33
<PAGE>   39

               DATED                                          1997
                    ------------------------------------------

                              BARELLA ESTABLISHMENT

                                       To

                           REED TELEPUBLISHING LIMITED

                                 [COUNTERPART]

                                     LICENCE

                             To make alterations at
                                2 Kew Bridge Road
                               Brentford Middlesex

                              PRITCHARD ENGLEFIELD
                                 14 New Street
                                 London EC2M 4TR
                               Tel: 0171 072 9720
                                Fax:0171 972 9721
                             Ref: DRL/mt/Barella.Lic

<PAGE>   40

THIS DEED is made the                 day of                       One thousand
nine hundred and ninety seven BETWEEN BARELLA ESTABLISHMENT OF VADUZ whose
address for service in the United Kingdom is at 14 New Street London EC2M 4TR
(hereinafter called the Landlord") of the one part and REED TELEPUBLISHING
LIMITED registered number 181427 whose registered office is at Church Street
Dunstable Bedfordshire LU5 4HB (hereinafter called the Tenant) of the other part
/s/ [ILLEGIBLE]

WHEREAS:

(1)      By a Lease (hereinafter called "the Lease") short particulars whereof
         appear in the First Schedule ALL THAT the premises described in the
         Second Schedule (hereafter called "the demised premises") TOGETHER
         WITH the rights set out in the Lease were demised for the term and at
         the yearly rent as in the Lease set out and subject to the tenant's
         covenants and conditions and to the exceptions and reservations therein
         contained

(2)      The Lease contained a covenant on the part of the Tenant inter alia not
         without the prior written consent of the landlord to make any
         alterations or additions to the plan or elevation of the demised
         premises

(3)      The Tenant is desirous of carrying out certain works and alterations to
         the demised premises in accordance with the attached drawing prepared
         by Weatherglaze and numbered 2KBR/I 2KBR/2(a) 2KBR/3 2KBR/4 and 2KBR/7
         (hereinafter called "the drawings") full particulars whereof appear in
         the Third Schedule all such work and alterations being hereinafter
         referred to as "the works" and has requested the Landlord to grant a
         licence to execute the works which the Landlord has agreed to do in
         consideration of the Tenant entering into the covenants and subject to
         the terms hereinafter contained

(4)      This Deed is supplemental to the Lease

<PAGE>   41

NOW THIS DEED WITNESSES as follows:-

1.       IN pursuance of the said agreement and in consideration of the
covenants on the part of the Tenant hereinafter contained the Landlord at the
request of the Tenant hereby gives licence and authority to the execution of the
works at the demised premises

2.       IN consideration of the licence hereinbefore contained the Tenant for
Itself and its successors in title HEREBY COVENANTS with the Landlord as
follows:-

2.1      To carry out the works with due diligence and speed within three months
         from the date hereof strictly in accordance with the drawing and the
         particulars set out in the Third Schedule and in accordance with the
         provisions of Planning Consent dated 20th February 1997 issued by the
         London Borough of Hounslow and with good quality materials and in a
         good and workmanlike manner and with due regard to modern standards of
         building and workmanship to the reasonable satisfaction of the surveyor
         to the Landlord whose proper fees together with V.A.T. thereon shall be
         borne by the Tenant and to make good to the like satisfaction all
         damage caused directly or indirectly by the carrying out of the works
         It is AGREED AND DECLARED that by expressing such satisfaction the

                                       2
<PAGE>   42

         obligations of the Tenant hereunder shall not be affected or lessened
         in any way

2.2      To do all things necessary and make all payments required for obtaining
         all necessary consents for the works including the consents of the
         local and/or any other authority (including any Utility) and also the
         Insurance Company with which the demised premises are insured against
         fire and to produce all necessary consents to the Landlord before
         commencing any part of the works

2.3      To observe and perform all statutory requirements and any conditions
         imposed by any of the consents referred to in sub--clause 2.2 hereof
         and any conditions and requirements of the insurers of the demised
         premises as a result of the carrying out of the works and to pay to the
         landlord any increased insurance premium payable in respect of the
         demised premises and/or the building (without prejudice to any other
         obligation imposed by the Lease) occasioned by the works

2.4      Without prejudice to any other provision hereof

2.4.1             to obtain the consent of the Fire Officer to the works and the
                  mode of execution thereof

2.4.2             to observe and perform any requirements of the Fire Officer
                  and the Fire Authority in relation to the works and in
                  particular but without prejudice to the generality of the
                  foregoing not to impede the fire escape routes from the
                  demised premises

2.4.3             not to do anything which may infringe the Fire Certificate for
                  the demised premises

                                       3
<PAGE>   43

2.4.4             to comply with any applIcable code of building practice

2.4.5             to carry out the works in a manner which causes the least
                  possible inconvenience or annoyance to the owners or occupiers
                  of any neighbouring premises

2.5      During the execution of the works

2.5.1             to keep all materials and equipment stored inside the demised
                  premises

2.5.2             not to cause or permit

2.5.2.1                    any damage disturbance annoyance nuisance or
                           inconvenience whether by noise dust vibration the
                           emission of smoke fumes or effluvia or otherwise to
                           the Landlord or to the owners or occupiers of any
                           adjoining or neighbouring property

2.5.2.2                    any damage or disturbance to or weakness or render
                           unsafe the structure of the demised premises or any
                           adjoining or neighbouring property or any plant or
                           machinery at the demised premises

2.5.2.3                    the infringement interruption or destruction of any
                           right easement or privilege

2.5.2.4                    the interruption of any service to or from adjoining
                           or neighbouring property

2.6      The Tenant hereby admits that this Licence and the Lease constitute a
         valuable consideration for the covenants on the part of the Tenant
         herein contained to execute and complete the works and that the Tenant
         shall

                                    4
<PAGE>   44

         not be entitled to compensation in respect thereof upon quitting the
         demised premises or at any other time

2.7      To indemnify and keep fully and effectively indemnified the Landlord
         and the occupiers of any adjoining or neighbouring premises and all
         persons who are at any time present thereon or have any interest
         therein from and against damage or injury thereto and to themselves and
         to their respective property and from and against all costs claims
         demands proceedings and liability whatsoever incurred by or made
         against any of them directly or indirectly resulting from or arising
         out of the works or any breach or non-observance or non-performance
         of the covenants on the Tenant's part herein contained and any injury
         or damage (including death) whether to person or property real or
         personal arising out of or in any way connected with the granting of
         this Licence or the construction or use of the works

2.8      If required by the Landlord on the happening of any of the following
         events the Tenant will at its own cost reinstate the demised premises
         to their former condition and carry out such works of reinstatement to
         the satisfaction and under the supervision of the surveyor to the
         landlord Whose proper fees in connection with the supervision of such
         work shall be borne by the Tenant The said events are:-

2.8.1             the expiration or sooner determination of the Lease

2.8.2             when this Licence becomes void or voidable

                                       5
<PAGE>   45

3.       PROVIDED ALWAYS AND IT IS HEREBY EXPRESSLY AGREED AND DECLARED THAT:-

3.1      Nothing in this Deed shall authorise the carrying out of any works
         other than the works herein provided and if the works shall not be
         completed to the satisfaction of the surveyor to the Landlord within
         three months from the date hereof then the Licence and authority given
         by this Deed to carry out the works shall at the option of the Landlord
         exercisable in writing be voidable and

3.2      When the carrying out of the works has been completed the restrictions
         and other covenants on the part of the Tenant and the provisions
         contained in the Lease shall be applicable to the demised premises in
         their then altered state in the same manner and as fully and
         extensively as if the demised premises had contInued in the same state
         as the same are at present

3.3      During the following the execution of the works all covenants on the
         part of the Tenant contained herein shall be deemed to be incorporated
         into the Lease and the rights of re-entry contained in the Lease shall
         be construed and have effect accordingly

3.4      The works are not improvements for the purposes of the Landlord and
         Tenant Act 1927 Part I and are carried out by the Tenant to suit its
         own personal requirements and neither the Tenant nor any other persons
         shall be entitled to compensation in respect of them at the expiry or
         sooner determination of the term of the Lease or at any other time

3.5      The works shall be disregarded on any review of the rent under the
         Lease.

                                       6
<PAGE>   46

4.       THE proper costs of the preparation and completion of this Deed in
duplicate and all disbursements including stamp duty and surveyor's fees and all
Value Added Tax shall be borne by the Tenant

6.       REFERENCES to "the Landlord" and "the Tenant" shall include their
respective successors in title

6.       ON completion of this Deed the Tenant shall cause a memorandum to be
indorsed on the Lease in the following form:

MEMORANDUM by a Deed dated                                            1997 the
Landlord consented to certain alterations to the demised premises and the Tenant
covenanted to reinstated as mentioned in the Deed"

IN WITNESS whereof the parties hereto have executed these presents as a Deed and
delivered them the day and year first before written

                   THE FIRST SCHEDULE HEREINBEFORE REFERRED TO

Date of Lease:           1st September 1987

Landlord:                Bridger Properties Limited

Tenant:                  News International plc

Term:                    25 years from 24th June 1987

Rent:                    Initial Rent L.320,000 per annum

                                       7
<PAGE>   47

                  THE SECOND SCHEDULE HEREINBEFORE REFERRED TO

                          (being the demised premises)

         ALL THAT building and premises known as Number 2 Kew Bridge Road
Brentford Middlesex

                   THE THIRD SCHEDULE HEREINBEFORE REFERRED TO
                                (being the works)

Erection of a conservatory to the rear of the existing building

SIGNED on behalf of BARELLA      )
ESTABLISHMENT by [               )
                              ]  )
duly authorised in that behalf   )

THE COMMON SEAL of REED          )
TELEPUBLISHING LIMITED           )
Was hereunto affixed as a Deed   )
In the presence of:              )

                                    Director           [ILLEGIBLE]

[SEAL]

                                    Director           [ILLEGIBLE]

                                       8
<PAGE>   48

                             RENT REVIEW MEMORANDUM

Date of Lease            :         1 September 1987

Demised Premised         :         Utell House, 2 Kew Bridge Road, Brentford,
                                   Middlesex

Landlord                 :         Bridger Properties Limited

Present Landlord         :         Barella Establishment

Tenant                   :         News International plc

Present Tenant           :         REZsolutions Limited

The Landlord and the Tenant hereby declare that the rent reserved by the above
mentioned Lease has been reviewed in accordance with its provisions and will
remain at (pound)340,000 per annum as from 24 June 1997 until the next review
date thereunder.

Signed /s/ [ILLEGIBLE]
       ---------------------------------
On behalf of Barella Establishment

Signed /s/ [ILLEGIBLE]
       ---------------------------------
On behalf of REZsolutions Limited

Dated this 18th day of June l998

<PAGE>   49

                                        DATED 26th OCTOBER 1989

                                          BARELLA ESTABLISHMENT

                                                 - to -

                                         NEWS INTERNATIONAL PLC

                                                 - and -

                                         REED INTERNATIONAL PLC

                                           -------------------

                                            LICENCE TO ASSIGN

                                               premises at

                                            2 Kew Bridge Road
                                           Brentford Middlesex

                                           -------------------

                                      Pritchard Englefield & Tobin
                                      23 Great Castle Street
                                      London W1N 8NQ

                                      Ref:     CLO/12332/1
                                               CLO/5119Q(v2) 17071989

<PAGE>   50
THIS DEED made the 26th day of October One thousand nine hundred and eighty-nine
BETWEEN BARELLA ESTABLISHMENT of PO Box 136 Sarnia House Le Truchot St Peter
Port Guernsey Channel Islands (hereinafter called "the Landlord") of the first
part NEWS INTERNATIONAL PLC whose registered office is situate at PO Box 495 1
Virginia Street London E1 9XY (hereinafter called "the Tenant") of the second
part and REED INTERNATIONAL PLC whose registered office is at Reed House 6
Chesterfield Gardens London W1A 1EJ (hereinafter called "the Assignee") of the
third part

WHEREAS:-

(1) By a Lease (hereinafter called "the Lease") short particulars whereof appear
in the First Schedule hereto ALL THAT the premises described in the Second
Schedule hereto (hereinafter called "the demised premises") TOGETHER WITH the
rights set out in the Lease were demised to the Tenant for the term and at the
yearly rent as in the Lease set out and subject to the tenant's covenants and
conditions and to the exceptions and reservations therein contained

(2) The Lease contains restrictions on the right of the Tenant to assign

(3) The reversion immediately expectant upon the determination of the term
created by the Lease is now vested in the Landlord

(4) The term created by the Lease is still vested in the Tenant

<PAGE>   51

(5) The Tenant desires to assign the demised premises to the Assignee for the
unexpired residue of the term created by the Lease and the Tenant has requested
the Landlord to grant a Licence for this purpose which the Landlord has agreed
to do in consideration of the Assignee entering into the covenant hereinafter
contained

NOW THIS DEED WITNESSES as follows:

1. IN pursuance of the said agreement and in consideration of the covenants on
the part of the Assignee hereinafter contained the Landlord at the request of
the Tenant hereby gives Licence and Authority to the assignment by the Tenant to
the Assignee of ALL THAT the estate of the Tenant in the Lease PROVIDED that
this Licence is restricted to the particular Assignment hereby authorised and
that save as aforesaid the covenants in the Lease against assignment or
underletting shall remain in full force and effect and PROVIDED FURTHER that
this Licence shall lapse unless the Assignment hereinbefore permitted shall have
been registered with the Solicitors for the Landlord as required by the Lease
within twenty-one days from the date thereof

2. IN consideration of the Licence hereinbefore contained the Assignee HEREBY
COVENANTS with the Landlord that as from the date when the Tenant's estate and
interest in the Lease shall be assigned to the Assignee pursuant to the Licence
hereinbefore contained and thenceforth during the residue of the term granted by
the Lease the Assignee will pay the respective rents reserved by the Lease and
all other sums and payments therein

<PAGE>   52

covenanted to be paid by the tenant at the respective times and in manner
therein appointed for the payment thereof and further covenants with the
Landlord duly to observe and perform the several covenants and conditions on the
part of the Tenant therein contained

3. THE landlord's legal costs in the preparation of this deed in duplicate plus
value added tax shall be borne by the Tenant

4. THE Lease shall be deemed varied to the effect that the words "NEWS
INTERNATIONAL PLC" appearing in clause 3(21)(d) on page 19 shall be deemed
deleted and replaced by the words "REED INTERNATIONAL PLC"

IN WITNESS whereof the parties hereto have executed these presents the day and
year first above written

                      THE FIRST SCHEDULE above referred to

                     (being short particulars of the Lease)

1.       Date of Lease:                1st September 1987
2.       Landlord:                     Bridger Properties Limited
3.       Tenant:                       News International Plc
4.       Term:                         25 years from the 24th day of June
                                       1987
5.       Rent:                         L.320,000 p.a. (subject to review)

                      THE SECOND SCHEDULE above referred to

                    (Being the premises demised by the Lease)

ALL that building and premises known as 2 Kew Bridge Road Brentford Middlesex
shown for identification purposes

<PAGE>   53

only edged red on the Lease plan together with the rights but subject to the
covenants terms and conditions as in the Lease set out.

                                        For LBI FINANZ ANSTALT
                                          POSTFACH 70
                                            FL 9490 VADUZ
                                              LIECHTENSTEIN

SIGNED on behalf of      )              /s/ [ILLEGIBLE]
BARELLA ESTABLISHMENT    )              ---------------------------
by                       )                   AUTHORISED SIGNATORIES

                           /s/ [ILLEGIBLE]  Director

                              Authorised Signatory

THE COMMON SEAL of       )
REED INTERNATIONAL PLC   )
was hereunto affixed     )
in the presence of:-     )

          Director

[SEAL]

          Secretary

<PAGE>   54

                                            DATED 26th October 1989
                                            -----------------------

                                             BARELLA ESTABLISHMENT

                                                     -to-

                                            NEWS INTERNATIONAL PLC

                                         ----------------------------

                                                    LICENCE

                                            to make alterations at
                                               2 Kew Bridge Road
                                                   Brentford
                                                   Middlesex

                                         ----------------------------

                                         Pritchard Englefield & Tobin
                                         23 Great Castle Street
                                         London W1N 8NQ
                                         Tel: 01-629 8883 Telex: 23836

                                         Ref: CLO/12332/l
                                              CLO/5132Q(V2) 17071989

<PAGE>   55

THIS DEED is made the 23rd day of October One thousand nine hundred and
eighty-nine BETWEEN BARELLA ESTABLISHMENT of P.O. Box 136 Sarnia House Le
Truchot St. Peter Port Guernsey Channel Islands (hereinafter called "the
Landlord") of the one part and NEWS INTERNATIONAL PLC whose registered office is
situate at P.O. Box 495 1 Virginia Street London El 9XY (hereinafter called "the
Tenant") of the other part

WHEREAS:

(1) By a Lease (hereinafter called "the Lease") short particulars whereof appear
in the First Schedule hereto ALL THAT the premises described in the Second
Schedule hereto (hereinafter called "the demised premises") TOGETHER WITH the
rights set out in the Lease were demised to the Tenant for the term and the
yearly rent as in the Lease set out and subject to the Tenant's covenants and
conditions and to the exceptions and reservations therein contained

(2) The Lease contained a covenant on the part of the Tenant inter alia not
without the prior written consent of the Landlord such consent not to be
unreasonably withheld to make connections to the conducting media in the demised
premises

(3) The Tenant is desirous of making connections to the conducting media in the
demised premises full particulars whereof appear in the Third Schedule hereto
and in accordance with the drawing marked "A" annexed hereto all such work and
alterations being hereinafter referred to as

<PAGE>   56

"the works" and has requested the Landlord to grant a licence to execute the
works which the Landlord has agreed to do in consideration of the Tenant
entering into the covenants and subject to the terms hereinafter contained NOW
THIS DEED WITNESSETH as follows:

1. IN pursuance of the said agreement and in consideration of the covenants on
the part of the Tenant hereinafter contained the Landlord at the request of the
Tenant hereby gives licence and authority to the execution of the works at the
demised premises in accordance with the said drawing

2. IN consideration of the licence hereinbefore contained the Tenant for itself
and its successors in title HEREBY COVENANTS with the Landlord as follows:-

         (a) To carry out the works strictly in accordance with the particulars
set out in the Third Schedule hereto and the said drawing and with appropriate
materials and in a good and workmanlike manner to the reasonable satisfaction of
the surveyor to the Landlord whose fees shall be borne by the Tenant and to make
good to the like satisfaction all damage caused directly or indirectly by the
carrying out of the works

         (b) To do all things necessary and make all payments required for
obtaining all necessary consents (if any) including the consent of the local
and/or any other authority and also the Insurance Company with which the demised
premises are insured against fire and to produce the same to the Landlord before
the works commence

<PAGE>   57

                                  [FLOORPLAN]

<PAGE>   58

         (c) The works shall become and remain the property of the Landlord
(subject to this Licence and the Lease)

         (d) To observe any conditions imposed by the insurers of the demised
premises as a result of the works

         (e) To indemnify and keep indemnified the Landlord from and against all
costs claims demands and liability whatsoever directly or indirectly resulting
from or arising out of the works or any breach or non-observance of the
covenants on the Tenant's part herein contained and any injury or damage whether
to person or property real or personal arising out of or in any way connected
with the granting of this licence or the construction or use of the works

         (f) If reasonably required by the Landlord on the happening of any of
the following events the Tenant will at its own cost reinstate the demised
premises to their former condition and carry out such works of reinstatement to
the reasonable satisfaction and under the supervision of the surveyor to the
Landlord whose reasonable fees in connection with the supervision of such work
shall be borne by the Tenant The said events are:-

         (i) the expiration or sooner determination of the Lease

         (ii) when this Licence becomes void or voidable

3. PROVIDED ALWAYS AND IT IS HEREBY EXPRESSLY AGREED AND DECLARED THAT:-

         (a) Nothing in this licence shall authorise the carrying out of any
works other than the works herein provided and if the works shall not be
completed to the

<PAGE>   59

satisfaction of landlord and its surveyor within six months from the date hereof
then this Licence shall lapse

         (b) When the carrying out of the works has been completed the
restrictions and other covenants on the part of the Tenant and the provisions
contained in the Lease shall be applicable to the demised premises in their then
altered state in the same manner and as fully and extensively as if the demised
premises had continued in the same state as the same are at present

4. THE reasonable costs of this Deed in duplicate and all disbursements
including reasonable surveyor's fees and all Value Added Tax shall be borne by
the Tenant

IN WITNESS whereof the parties hereto have executed these presents the day and
year first before written

                   THE FIRST SCHEDULE hereinbefore referred to

                     (being short particulars of the Lease)

<TABLE>
<S>                                      <C>
Date of Lease:                           1st September 1987
Landlord:                                Bridger Properties Limited
Tenant:                                  News International Plc
Term:                                    25 years from the 24th day of June
                                         1987
Rent:                                    L.320,000 p.a. (subject to review)
</TABLE>

                  THE SECOND SCHEDULE hereinbefore referred to

                          (being the demised premises)

ALL THAT building and premises known as 2 Kew Bridge Road, Brentford, Middlesex
shown for identification purposes only edged red on the Lease plan together with

<PAGE>   60

the rights but subject to the covenants terms and conditions as in the Lease set
out

                   THE THIRD SCHEDULE hereinbefore referred to

                                (being the works)

Wiring of 38 electrical data and telephone sockets from existing riser

                                  For LBI FINANZ ANSTALT
                                    POSTFACH 70
                                      FL 9490 VADUZ
                                        LIECHTENSTEIN

SIGNED on behalf of      )        /s/ [ILLEGIBLE]
BARELLA ESTABLISHMENT    )        ---------------------------
by:-                     )             AUTHORISED SIGNATORIES

                                  /s/ [ILLEGIBLE]
                                  Authorised Signatory

THE COMMON SEAL of       )
NEWS INTERNATIONAL PLC   )
was hereunto affixed     )
in the presence of:-     )

                                                                         [SEAL]

/s/ [ILLEGIBLE]
     Director

/s/ [ILLEGIBLE]
     Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]