Document:

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                                                                  EXHIBIT 10.23

                             FEDERAL SUPPLY SERVICE
              AUTHORIZED INFORMATION TECHNOLOGY SCHEDULE PRICELIST
                GENERAL PURPOSE COMMERCIAL INFORMATION TECHNOLOGY
                        EQUIPMENT, SOFTWARE AND SERVICES

Special Item No. 132-50 Training
Special Item No. 132-51 Information Technology Professional Services

CATEGORY

SIN 132-51 - INFORMATION TECHNOLOGY PROFESSIONAL SERVICES

FPDS Class D302              Database Planning and Design
FPDS Class D306              Systems Analysis and Design
FPDS Class D307              Network Services
FPDS Class D308              Programming
FPDS Class D316              Network Services' Project Management

                                ARIS Corporation

                             2229 112th Avenue, N.E.

                             Bellevue, WA 98004-2936

                        FOR ADP SERVICES: 1-800-431-2747
                          FOR TRAINING: 1-800-775-9905

CONTRACT NUMBER: GS-35F-4814-H

            Period Covered by Contract: Oct. 7, 1997 to Oct. 6, 2002

                         General Services Administration
                             Federal Supply Service

Products and ordering information in this Authorized INFORMATION TECHNOLOGY
Schedule Pricelist is also available on the GSA Advantage! System. Agencies can
browse GSA Advantage! By accessing GSA's Home Page via Internet at www.gsa.gov.

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**Table of Contents.

<TABLE>
<S>                                                                      <C>
Information for Ordering Offices .........................................1

Terms and Conditions Applicable to 132-50 ................................8

Terms and Conditions Applicable to 132-51 ...............................11

Pricelist ...............................................................13
</TABLE>

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                        INFORMATION FOR ORDERING OFFICES

1.   Geographic Scope of Contract: The minimum geographic scope of contract is
the 48 contiguous states, the District of Columbia, Alaska, Hawaii and the
Commonwealth of Puerto Rico.

2.   Contractor's Ordering Address and Payment Information:

ORDERING:                                    BILLING:
ARIS CORPORATION                             ARIS CORP.
3040 WILLIAMS DRIVE, STE 100                 P.O. BOX 4224
FAIRFAX, VA 22031-4618                       BELLEVUE, WA 98009-4224

For Services
1-800-431-2747
For Training Call
1-800-775-9905

Government Commercial Credit Cards will be acceptable for payment. In addition,
bank account information for wire transfer payments will be shown on the
invoice.

        Below are the telephone number(s) that can be used by ordering agencies
to obtain technical and/or ordering assistance.

                           1-800-775-9905 for Training
                           1-800-431-2747 for Services

3.   Reserved

4.   Statistical Data for Government Ordering Office Completion of Standard Form
27 9:

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                        Block 9: G. Order/Modification Under Federal Schedule

                        Block 16: Contractor Establishment Code (DUNS):
                        62-618-2463

                        Block 30: Type of Contractor - C. Large Business

                        Block 31: Woman-Owned Small Business - No

                        Block 34: Reserved

                        Block 36: Contractor's Taxpayer Identification Number
                        (TIN) - 91-149-7147

4a. CAGE Code:_____________

5.   FOB Destination

6.   COMMERCIAL DELIVERY SCHEDULE (MULTIPLE AWARD SCHEDULES)

(a) TIME OF DELIVERY. The contractor shall deliver to destination within the
number of calendar days after receipt of order (ARO), as set forth below.

ITEMS OR GROUPS
OF ITEMS (SIN OR                     DELIVERY TIME
NOMENCLATURE)                        (DAYS ARO)

132-50 and 132-51                    As negotiated between the agency and Aris

(b) OVERNIGHT AND 2-DAY DELIVERY TIMES. Schedule customers may require overnight
or 2-day delivery. The offeror is requested to annotate in its pricelist or by
separate attachment the items that can be delivered overnight or within 2 days.
Contractors offering such delivery service will be required to state in the FSS
Pricelist details concerning this service.

(c) URGENT REQUIREMENTS

When the Federal Supply Schedule contract delivery period does not meet the bona
fide urgent delivery requirements of an ordering agency, agencies are
encouraged, if time permits, to contact the contractor for the purpose of
obtaining accelerated delivery. The contractor shall replay to

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the inquiry within 3 workdays after receipt. (Telephonic replies shall be
confirmed by the contractor in writing.) If the contractor offers an accelerated
delivery time acceptable to the ordering agency, any order(s) placed pursuant to
the agreed upon accelerated delivery time frame shall be delivered within this
shorter delivery time and in accordance with all other terms and conditions of
the contract.

7.   Discounts:

     a.   Prompt Payment: Net 30 Days

8.   Production Points and Statement Concerning Foreign Produced Items: Only
     services are offered under this contract.

9.   Export Packing: Outside scope of contract

10.  Small Requirements: The minimum dollar value of orders to be issued is
     $50.00. For services the minimum order is 40 hrs.

lla. Maximum Order: (All dollar amounts are exclusive of any discount for prompt
     payment.)

     a)   Special Item 132-50 - Classroom Training

          The maximum dollar value per order will be $25,000 for all training
          products.

     b)   Special Item 132-51 ADP Services

          The maximum dollar value per order will be $500,000 for all ADP
          Services.

1lb. Orders That Exceed the Maximum Order (I-FSS-125)(AUG 1995)

(a)  In accordance with FAR 8.404 there may be circumstances where an ordering
activity finds it advantageous to request a price reduction such as where a
quantity of an individual order clearly indicates the potential for obtaining a
reduced price.

To assist the customer agencies to determine when they should seek a price
decrease a level called a maximum order has been established under the contract.
When an agency order exceeds this amount it is recommended that the ordering
activity contact the contractor for a reduced price.

(b)  Contractor may:

     (1)  offer a new lower price for this requirement (the Price Reduction
     clause is not applicable to orders placed over the Maximum Order in FAR
     52.216-19.)

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     (2)  offer the lowest price available under the contract; or

     (3)  decline the order, orders must be returned in accordance with FAR
          52.216-19.

(c)  A delivery order for quantities that exceed the maximum order may be placed
with the contractor selected in accordance with Far 8.404. The order will be
placed under the current contract.

(d)  Sales for orders that exceeds the Maximum Order shall be reported in
accordance with GSAR 552.238-72.

12.  FEDERAL INFORMATION TECHNOLOGY/TELECOMMUNICATION STANDARDS REQUIREMENTS:
     Federal departments and agencies acquiring products from this Schedule must
     comply with the provisions of the Federal Standards Program, as appropriate
     (reference: NIST Federal Standards Index). Inquiries to determine whether
     or not specific products listed herein comply with Federal Information
     Processing Standards (FIPS) or Federal Telecommunication Standards
     (FED-STDS), which are cited by ordering offices, shall be responded to
     promptly by the Contractor.

12.1 INFORMATION PROCESSING STANDARDS PUBLICATIONS (FIPS PUBS): Information
Technology products under this Schedule that do not conform to Federal
Information Processing Standards (FIPS) should not be acquired unless a waiver
has been granted in accordance with the applicable "FIPS Publication." Federal
Information Processing Standards Publications (FIPS PUBS) are issued by the U.S.
Department of Commerce, National Institute of Standards and Technology (NIST),
pursuant to National Security Act. Information concerning their availability and
applicability should be obtained from the National Technical Information Service
(NTIS), 5285 Port Royal Road, Springfield, Virginia 22161. FIPS PUBS include
voluntary standards when these are adopted for Federal use. Individual orders
for FIPS PUBS should be referred to the NTIS Sales Office, and orders for
subscription service should be referred to the NTIS Subscription Officer, both
at the above address, or telephone number (703) 487-4650.

12.2 FEDERAL TELECOMMUNICATION STANDARDS (FED-STDS): Telecommunication products
under this Schedule that do not conform to Federal Telecommunication Standards
(FED-STDS) should not be acquired unless a waiver has been granted in accordance
with the applicable "FED-STD." Federal Telecommunication Standards are issued by
the U.S. Department of Commerce, National Institute of Standards and Technology
(NIST), pursuant to National Security Act. Ordering information and information
concerning the availability of FED-STDS should be obtained from the GSA, Federal
Supply Service, Specification Section, 470 East L'Enfant Plaza, Suite 8100, SW,
Washington, DC 20407, telephone number (202)619-8925. Please include a
self-addressed mailing label when requesting information by

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mail. Information concerning their applicability can be obtained by writing or
calling the U.S. Department of Commerce, National Institute of Standards and
Technology, Gaithersburg, MD 20899, telephone number 301/975-2833.

13.  SECURITY REQUIREMENTS. In the event security requirements are necessary,
the ordering activities may incorporate, in their delivery order(s), a security
clause in accordance with current laws, regulations, and individual agency
policy; however, the burden of administering the security requirements shall be
with the ordering agency. If any costs are incurred as a result of the inclusion
of security requirements, such costs will be negotiated with the Schedule
Contractor on an open market basis, outside the scope of the contract.

14.  CONTRACT ADMINISTRATION FOR ORDERING OFFICES: Any ordering office, with
respect to any one or more delivery orders placed by it under this contract, may
exercise the same rights of termination as might the GSA Contracting Officer
under provisions of FAR 52.249-1, 52.249-2, and 52.249-8.

15.  GSA Advantage!

The GSA Advantage! Is an on-line, interactive electronic information and
ordering system that provides on-line access to vendors' schedule prices with
ordering information. GSA Advantage! Will allow the user to:

Perform various searches across all contracts including, but not limited to:

     1.   Manufacturer;

     2.   Manufacturer's Part Number; and

     3.   Product category(ies).

Agencies can browse GSA Advantage! By accessing the Internet World Wide Web
utilizing a browser (ex.: NetScape). The Internet address is http://www.gsa.gov.

16.  Use of FSS ITS Schedule Contracts. In accordance with FAR 8.404:

a.   Ordering activities can place orders of $2,500 or less with any GSA Federal
     Supply Schedule contractor. GSA has already determined the prices of items
     under these contracts to be fair and reasonable.

b.   To reasonably ensure that a selection represents the best value and meets
     the agency's needs at the lowest overall cost, before placing an order of
     more than $2,500, an ordering activity should

     (1)  Consider reasonably available information about products offered under
          Multiple

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          AWARD SCHEDULE (MAS) contracts; this standard is met if the ordering
          activity does the following:

            (i)   Considers products and prices contained in any GSA MAS
                  automated information system (e.g., GSA Advantage!); or

            (ii)  If automated information is not available, reviews at least
                  three (3) pricelists.

     (2)  In selecting the best value item at the lowest overall cost (the price
          of the item plus administrative costs), the ordering activity may
          consider such factors as

            (i)   Special features of one item not provided by comparable items
                  which are required in effective program performance;

            (ii)  Trade-in considerations;

            (iii) Probable life of the item selected as compared with that of a
                  comparable item;

            (iv)  Warranty conditions; and

            (v)   Maintenance availability.

     (3)  Give preference to the items of small business concerns when two or
          more items at the same delivered price will meet an ordering
          activity's needs.

c.   MAS contractors will not be required to pass on to all schedule users a
     price reduction extended only to an individual agency for a specific order.
     There may be circumstances where an ordering activity finds it advantageous
     to request a price reduction, such as where the ordering activity finds
     that a schedule product is available elsewhere at a lower price, or where
     the quantity of an individual order clearly indicates the potential for
     obtaining a reduced price.

d.   Ordering activities should document orders of $2,500 or less by identifying
     the contractor the item was purchased from, the item purchased, and the
     amount paid. For orders over $2,500, MAS ordering files should be
     documented in accordance with internal agency practices. Agencies are
     encouraged to keep documentation to a minimum.

17.  CONTRACTOR COMMITMENTS, WARRANTIES AND REPRESENTATIONS

     a.   For the purpose of this contract, commitments, warranties and
          representations

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          include, in addition to those agreed to for the entire schedule
          contract:

               (1)  Time of delivery/installation quotations for individual
                    orders;

               (2)  Technical representations and/or warranties of products
                    concerning performance, total system performance and/or
                    configuration, physical, design and/or functional
                    characteristics and capabilities of a product/equipment/
                    service/software package submitted in response to
                    requirements which result in orders under this schedule
                    contract.

               (3)  Any representations and/or warranties concerning the
                    products made in any literature, description, drawings
                    and/or specifications furnished by the contractor.

     b.   The above is not intended to enlarge the scope of this schedule
          contract for individual orders. Terms and conditions of any orders are
          limited strictly to those specified in the schedule contract and
          Pricelist and agreed to by GSA.

18.  OVERSEAS ACTIVITIES

The terms and conditions of this contract shall apply to all orders for
installation, maintenance and repair of equipment in areas listed in the
Pricelist outside the 48 contiguous states and the District of Columbia, except
as indicated below:

                                      NONE

Upon request of the contractor, the Government may provide the contractor with
logistics support, as available, in accordance with all applicable Government
regulations. Such Government support will be provided on a reimbursable basis,
and will only be provided to the contractor's technical personnel whose services
are exclusively required for the fulfillment of the terms and conditions of this
contract (Purchase, Maintenance, and Repair Service).

19.  Year 2000 Warranty Commercial Supply Items

NOTE: Contractors should identify products that apply to the following warranty
in their Authorized Pricelist.

The contractor warrants that each hardware, software, and firmware product
delivered under this contract and listed below shall be able to accurately
process date data (including, but not limited to, calculating, comparing, and
sequencing) from, into, and between the twentieth and twenty-first centuries,
including leap year calculations, when used in accordance with the product
documentation provided by the contractor, provided that all listed or unlisted
products (e.g.

<PAGE>   10

hardware, software, firmware) used in combination with such listed product
properly exchange date data with it. If the-contract requires that specific
listed products must perform as a system in accordance with the foregoing
warranty, then that warranty shall apply to those listed products as a system.
The duration of this warranty and the remedies available to the Government for
breach of this warranty shall be as defined in, and subject to, the terms and
limitations of the contractor's standard commercial warranty or warranties
contained in this contract, provided that notwithstanding any provision to the
contrary in such commercial warranty or warranties, the remedies available to
the Government under this warranty shall include repair or replacement of any
listed product whose non-compliance is discovered and made known to the
contractor in writing within ninety (90) days after acceptance. Nothing in this
warranty shall be construed to limit any rights or remedies the Government may
otherwise have under this contract with respect to defects other than Year 2000
performance.

            TERMS AND CONDITIONS APPLICABLE TO PURCHASE OF CLASSROOM
              TRAINING OF GENERAL PURPOSE AUTOMATIC DATA PROCESSING
                             EQUIPMENT AND SOFTWARE
                              (SPECIAL ITEM 132-50)

1.   SCOPE

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     a.   The Contractor shall provide classroom training normally available to
          commercial customers, which is necessary to permit Government users to
          make full, efficient use of general purpose commercial automatic data
          processing equipment (end user computers normally microcomputers) and
          related computer software. Classroom training is restricted to
          training courses for those products within the scope of this
          solicitation.

     b.   The Contractor shall provide training at the Contractor's facility
          and/or at the Government's location, as agreed to by the Contractor
          and the Government.

2.   ORDER

A written order, EDI (GSA Advantage! And FACNET) and credit card orders shall be
the basis for the purchase of classroom training in accordance with the terms of
this contract. The written order shall include the student's name, course title,
course date and time, and contracted dollar amount of the course.

3.   TIME OF DELIVERY

The Contractor shall conduct classroom training on the date (time, day, month,
and year) agreed to by the Contractor and the Government.

4.   CANCELLATION AND RESCHEDULING

     a.   The Government will notify the Contractor at least 10 days before the
          scheduled training date, if a student will be unable to attend. The
          Contractor will then permit the Government to either cancel the order
          or reschedule the classroom training at no additional charge. In the
          event the training class is rescheduled, the Government will modify
          its original training order to specify the time and date of the
          rescheduled training class.

     b.   In the event the Government fails to cancel or reschedule a training
          course within the time frame specified in paragraph a, above, the
          Government will BE CHARGED A CANCELLATION FEE EQUAL TO 50% OF THE
          PRICE OF THE TRAINING ORDERED.

     c.   In the event the Government fails to submit notice of cancellation (no
          show), the Government will BE CHARGED A CANCELLATION FEE EQUAL TO 100%
          OF THE PRICE OF THE TRAINING ORDERED.

     d.   The Government reserves the right to substitute one student for
          another up to the first day of class.

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     e.   In the event the Contractor is unable to conduct classroom training on
          the date agreed to by the Contractor and the Government, the
          Contractor must notify the Government at least seventy-two (72) hours
          before the scheduled training date.

5.   FOLLOW-UP SUPPORT

The Contractor agrees to provide each student with unlimited telephone support
for the period of 30 days from the completion of the training class. During this
period, the student may contact the Contractor's instructors for refresher
assistance and answers to related course curriculum questions.

6.   LIABILITY FOR INJURY OR DAMAGE

The Contractor shall not be liable for any injury to the students, or damage to
Government property arising from Contractor-provided classroom training, unless
such injury or damage is due to the fault or negligence of the Contractor.

7.   PURCHASE PRICE FOR CLASSROOM TRAINING

The purchase price that the Government will be charged will be the Government
purchase price in effect at the time of order placement, or the Government
purchase price in effect at the time the training course is conducted, whichever
is less.

8.   INVOICES AND PAYMENT

Invoices for classroom training shall be submitted by the Contractor after
Government completion of the training course. Charges for classroom training
must be paid in arrears (31 U.S.C. 3324). PROMPT PAYMENT DISCOUNT, IF
APPLICABLE, SHALL BE SHOWN ON THE INVOICE.

9.   FORMAT AND CONTENT OF CLASSROOM TRAINING

     a.   The Contractor shall provide written materials (i.e., manuals,
          handbooks, texts, etc.) normally provided with course offerings. Such
          documentation will become the property of the student upon completion
          of the training class.

     b.   For hands-on training courses, there must be a one-to-one assignment
          of computer workstations to students.

     c.   The Contractor shall provide each student with a Certificate of
          Training at the completion of each training course.

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     d.   The contractor shall provide the following information for each
          training course offered:

          (1)  The course title and a brief description of the course content,
               to include the course format (e.g., lecture, discussion, hands-on
               training);

          (2)  The length of the course;

          (3)  Mandatory and desirable prerequisites for student enrollment;

          (4)  The minimum and maximum number of students per class;

          (5)  The locations where the course is offered;

          (6)  Class schedules; and

          (7)  Price (per student, per class (if applicable).

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 TERMS AND CONDITIONS APPLICABLE TO ADP SERVICES FOR GENERAL PURPOSE COMMERCIAL
                       AUTOMATIC DATA PROCESSING EQUIPMENT

                              (SPECIAL ITEM 132-51)

1.   ORDER

Agencies may use written orders, EDI orders, credit card orders, blanket
purchase orders, individual purchase orders, or task orders for ordering
services under this contract. Blanket Purchase Orders shall not extend beyond
the end of the contract period.

2.   INVOICES AND PAYMENT

Invoices for Information Technology Services shall be submitted by the
contractor as soon as possible after completion of the work. Payment under
blanket purchase orders will be made quarterly or monthly, except where cash
payment procedures are used. Invoices shall be submitted separately to each
Government office ordering services under the contract. PROMPT PAYMENT DISCOUNT,
IF AAPLICABLE, SHALL BE SHOWN ON THE INVOICE.

3.   PERFORMANCE OF SERVICES

           a) The contractor shall commence performance of services on the date
agreed to by the contractor and the Government.

           b) The contractor agrees to render services only during normal
working hours, unless otherwise agreed to by the contractor and the Government.

           c) All services rendered shall be performed by persons who are
adequately trained, skilled and equipped to perform such services in a safe,
workmanlike manner, consistent with good work practices.

4.   RESPONSIBILITIES OF THE CONTRACTOR

The contractor shall comply with all laws, ordinances, and regulations (Federal,
State, City or otherwise) covering work of this character.

5.   INDEPENDENT CONTRACTOR

All ADP services performed by the Contractor under the terms of this contract
shall be as an independent contractor, and not as an agent or employee of the
Government.

6.   GUARANTEE

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           a) The contractor guarantees the satisfactory completion of all ADP
services performed under the contract, and shall exercise sufficient diligence
to ensure the technical correctness and accuracy of the services performed. The
contractor shall perform, at its sole expense, any services which are determined
by the Government to be deficient, in order to ensure the satisfactory
completion of such services.

           b) The contractor further guarantees that all contract personnel
utilized in the performance of ADP services under the contract shall have the
education, experience, expertise as stated in the Contractor's Authorized ADP
Pricelist.

7.   TRAVEL

Any travel, required by an ordering agency, in performance of ADP Services under
this contract, will be reimbursed by the ordering agency. Contractor travel will
be in accordance with the Federal Travel Regulations or Joint Travel
Regulations, as applicable. Estimated Federal Government per diem rates will
apply to Contractor travel.

8.   OTHER DIRECT COSTS (ODC's)

Other Direct Costs (ODC's) are available outside the scope of this contract.
These costs will be negotiated separately with the ordering agency per the
guidelines set forth in the FAR.

For travel, Agencies are to follow the Federal Travel Regulations or Joint
Travel Regulations, as applicable.

9.   RESUMES

Resumes shall be provided to the GSA Contracting Officer or the User Agency upon
request.

<PAGE>   16

                      ARTS CORPORATION GSA SERVICE PRICING

                                FOR ADP SERVICES

<TABLE>
<CAPTION>
DESCRIPTION                                                      GSA PRICE
-----------                                                      ---------
<S>                                                              <C>
Managing Consultant                                                  *
Project Manager                                                      *
Senior Principal                                                     *
Principal Consultant                                                 *
Senior Consultant                                                    *
Staff Consultant                                                     *
Associate Consultant II                                              *
Associate Consultant I                                               *
Microsoft Certified Systems Engineer/Solution Developer              *
</TABLE>

*Portions of this agreement have been omitted pursuant to a request for
 confidential treatment pursuant to SEC Rule 24b-2, to be filed separately with
 the SEC no later than April 10, 2001.
<PAGE>   17

                               MANAGING CONSULTANT

MINIMUM/GENERAL EXPERIENCE: Three years experience managing development and
lifecycle support in an RDBMS environment utilizing current advanced relational
database technologies, client/server and Web tools. All of the skills and
knowledge of a Principle are required plus in-depth management experience in
RDBMS system architecture and management experience in networking, project
management and systems integration. For business applications work, Principle
experience is required plus management expertise in business process
reengineering.

FUNCTIONAL RESPONSIBILITIES: Manages high-level activities, including problem
definition, planning, requirements research, studies and analyses, system
analysis, design and programming of very complex automated systems. Is
responsible for managing all tasks associated with planning, design,
development, integration, implementation, and acceptance phases. Is responsible
for managing the formulation and definition of system scope and objectives.
Ensures the utilization of emerging or advanced, as well as current, technical
knowledge for all phases of automated application systems planning, analysis,
design, programming, implementation, and maintenance. This may also include
managing RDBMS research, software system support, network system support,
configuration management, quality assurance, system performance evaluation, life
cycle management, etc. Devises or modifies procedures to solve complex problems,
including resource allocation. Prepares and delivers presentations and
briefings.

QUALIFICATIONS: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus two additional years of
recent management experience which is substantive and directly relevant to the
technical area and the subject matter of the task. Or minimum of four years of
recent management experience which is substantive and directly relevant to the
technical area and the subject matter of the task.

<PAGE>   18

PROJECT MANAGER

MINIMUM/GENERAL EXPERIENCE: Five years experience managing development and
lifecycle support in an RDBMS environment utilizing current advanced relational
database technologies, client/server and Web tools. All of the skills and
knowledge of a Senior Principle and Managing Consultant are required plus
in-depth management experience in RDBMS system architecture and management
experience in networking, project management and systems integration. For
business applications work, Senior Principle experience is required plus
management expertise in business process reengineering.

FUNCTIONAL RESPONSIBILITIES: Manages high-level activities, including problem
definition, planning, requirements research, studies and analyses, system
analysis, design and programming of very complex automated systems. Is
responsible for managing all tasks associated with planning, design,
development, integration, implementation, and acceptance phases. Is responsible
for managing the formulation and definition of system scope and objectives.
Ensures the utilization of emerging or advanced, as well as current, technical
knowledge for all phases of automated application systems planning, analysis,
design, programming, implementation, and maintenance. This may also include
managing RDBMS research, software system support, network system support,
configuration management, quality assurance, system performance evaluation, life
cycle management, etc. Devises or modifies procedures to solve complex problems,
including resource allocation. Prepares and delivers presentations and
briefings.

QUALIFICATIONS: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus two additional years of
recent management experience which is substantive and directly relevant to the
technical area and the subject matter of the task. Or minimum of six years of
recent management experience which is substantive and directly relevant to the
technical area and the subject matter of the task.

<PAGE>   19

SENIOR PRINCIPAL

Minimum/General Experience: Five years including four years within the last five
years experience in an RDBMS environment utilizing current advanced relational
database technologies, client/server and Web tools. All of the skills and
knowledge of a senior consultant are required plus in-depth experience in RDBMS
system architecture and experience in networking, project management and systems
integration. For business applications work, senior consultant experience is
required plus expertise in business process reengineering.

FUNCTIONAL RESPONSIBILITIES: Performs high-level activities, including problem
definition, planning, requirements research, studies and analyses, system
analysis, design and programming of very complex automated systems. Performs all
tasks associated with planning, design, development, integration,
implementation, and acceptance phases. Formulates and defines system scope and
objectives. Utilizes emerging or advanced, as well as current, technical
knowledge for all phases of automated application systems planning, analysis,
design, programming, implementation, and maintenance. This may also include
RDBMS research, software system support, network system support, configuration
management, quality assurance, system performance evaluation, life cycle
management, etc. Designs and prepares technical and management documentation,
including plans, reports, charts, and graphs, etc. Prepares and delivers
presentations and briefings.

QUALIFICATIONS: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus two additional years of
recent experience which is substantive and directly relevant to the technical
area and the subject matter of the task. Or minimum of five years of recent
experience which is substantive and directly relevant to the technical area and
the subject matter of the task.

<PAGE>   20

PRINCIPAL CONSULTANT

MINIMUM/GENERAL EXPERIENCE: Four years including three years within the last
four years experience in an ADP environment utilizing current advanced
relational database, client/server and Web technologies. For Oracle work, a
minimum of four years of Oracle experience, including DEA experience, Oracle
database tuning, Oracle CASE Tools, an in-depth understanding of Oracle
architecture, project manager or technical lead experience, and OS experience.
For client/server work, experience programming and developing in non-Oracle
front-end GUI tools such as Access or PowerBuilder connected to RDBMS,
experience with object-oriented tools, Web tools, and/or experience with SQL
Server, Windows NT and Visual Basic. For business applications development work,
technical experience with the functional aspects of corporate or government
finance and/or manufacturing.

FUNCTIONAL RESPONSIBILITIES: Formulates and defines requirements, scope and
objectives for application systems. Performs studies and analyses, and prepares
detailed specifications from which programs will be written. Designs, programs,
tests, debugs, installs, documents, trains, and maintains systems, programs, and
databases, whether resident on networks, stand-alone PCs, or mainframes.
Competent to work at high technical levels in all phases of applications systems
planning, analysis, design, development, implementation, and maintenance.
Regularly operates under short deadlines and heavy workloads. Designs and
prepares technical and management reports and other documentation. Prepares and
delivers briefings.

QUALIFICATIONS: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus two additional years of
recent experience which is substantive and directly relevant to the technical
area and the subject matter of the task. Or minimum of four years of recent
experience which is substantive and directly relevant to the technical area and
the subject matter of the task.

<PAGE>   21

SENIOR CONSULTANT

MINIMUM/GENERAL EXPERIENCE: Three years including two years within the last
three years of experience in an ADP environment utilizing current advanced
relational database, client/server and Web technologies. If task related, a
minimum of three years actual project experience in relational design theory, at
least two years of which is in advanced technology. For Oracle work, advanced
operating systems and database expertise, including advanced knowledge of
SQLplus, SQLforrns, Reportwriter, PL/SQL, experience with CASE*Method, rapid
prototyping, and business modeling, and working experience with CASE tools, DBA
skills, at least one 3GL, a basic understanding of Oracle architecture and
SQLnet and proficiency in UNIX and/or VMS. For client/server work, experience in
programming and developing in non-Oracle front-end GUI tools such as Access
and/or PowerBuilder connected to an RDBMS, experience with objectoriented tools
and Web development tools. Experience with relational databases, Web tools and
Powerbuilder or Microsoft products, including SQL Server, NT, C + + and Visual
Basic. For business applications development, basic experience with the
functional aspects of corporate/government finance and/or manufacturing.

FUNCTIONAL RESPONSIBILITIES: Participates in all phases of automated systems
design and development. Performs requirements research, systems analysis,
design, programming, integration, testing, documentation, implementation, and
training of application programs/systems. Applies advanced technologies,
principles, and methods to arrive at automated solutions. Designs and prepares
technical reports and other documentation.

QUALIFICATIONS: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus one additional year of
recent basic experience which is substantive and directly relevant to the
technical area and the subject matter of the task. Or minimum of three years of
recent experience which is substantive and directly relevant to the technical
area and the subject matter of the task.

<PAGE>   22

SENIOR CONSULTANT

MINIMUM/GENERAL EXPERIENCE: Three years including two years within the last
three years of experience in an ADP environment utilizing current advanced
relational database, client/server and Web technologies. If task related, a
minimum of three years actual project experience in relational design theory, at
least two years of which is in advanced technology. For Oracle work, advanced
operating systems and database expertise, including advanced knowledge of
SQLplus, SQLforrns, Reportwriter, PL/SQL, experience with CASE*Method, rapid
prototyping, and business modeling, and working experience with CASE tools, DBA
skills, at least one 3GL, a basic understanding of Oracle architecture and
SQLnet and proficiency in UNIX and/or VMS. For client/server work, experience in
programming and developing in non-Oracle front-end GUI tools such as Access
and/or PowerBuilder connected to an RDBMS, experience with objectoriented tools
and Web development tools. Experience with relational databases, Web tools and
Powerbuilder or Microsoft products, including SQL Server, NT, C + + and Visual
Basic. For business applications development, basic experience with the
functional aspects of corporate/government finance and/or manufacturing.

FUNCTIONAL RESPONSIBILITIES: Participates in all phases of automated systems
design and development. Performs requirements research, systems analysis,
design, programming, integration, testing, documentation, implementation, and
training of application programs/systems. Applies advanced technologies,
principles, and methods to arrive at automated solutions. Designs and prepares
technical reports and other documentation.

QUALIFICATIONS: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus one additional year of
recent basic experience which is substantive and directly relevant to the
technical area and the subject matter of the task. Or minimum of three years of
recent experience which is substantive and directly relevant to the technical
area and the subject matter of the task.

<PAGE>   23

STAFF CONSULTANT

Minimum/General Experience: One year within the last three years experience in
an ADP environment utilizing current information systems technologies. Or a
minimum of one year actual project experience in basic design theory. For Oracle
work, a working knowledge of ORACLE including knowledge of SQLplus, SQLforms,
Reportwriter, PUSQL and operating systems or database expertise. For
client/server work, experience with relational databases, Web tools and
Powerbuilder or Microsoft products, including SQL Server, NT, C + + and Visual
Basic.

Functional Responsibilities: Participates in all phases of automated systems
design and development. Performs requirements research, systems analysis,
design, programming, integration, testing, documentation, implementation, and
training of application programs/systems. Applies current technologies,
principles, and methods to arrive at automated solutions, Designs and prepares
technical reports and other documentation.

Qualifications: Bachelors (or higher) degree from an accredited college or
university either in Computer Science, Engineering, Mathematics, or in a major
closely related to the subject matter of the task plus one year of recent
experience which is substantive and directly relevant to the technical area and
the subject matter of the task. Or minimum of three years of recent experience
which is substantive and directly relevant to the technical area and the subject
matter of the task.

<PAGE>   24

ASSOCIATE II CONSULTANT

Minimum/General Experience: Three years experience in an ADP environment
utilizing current information systems technologies. Or a minimum of three years
actual project experience in basic design theory. For Oracle work, knowledge of
ORACLE including knowledge of SQLplus, SQLforms, Reportwriter, PL/SQL and
operating systems or database expertise. For client/server knowledge related to
relational databases, Web tools and Powerbuilder or Microsoft products,
including SQL Server, NT, C + + and Visual Basic.

Functional Responsibilities: Participates in all phases of automated systems
design and development. Assists in requirements research, systems analysis,
design, programming, integration, testing, documentation, implementation, and
training of application programs/systems. Assists in the application of current
technologies, principles, and methods to arrive at automated solutions, assists
in the design and preparation of technical reports and other documentation.

Qualifications: Bachelors degree from an accredited college or university either
in Computer Science, Engineering, Mathematics, or in a major closely related to
the subject matter of the task. Or minimum of three years of recent experience
which is substantive and directly relevant to the technical area and the subject
matter of the task.

<PAGE>   25

ASSOCIATE I CONSULTANT

Minimum/General Experience: Two years experience in an ADP environment utilizing
current information systems technologies or a bachelors degree from an
accredited college or university either in Computer Science, Engineering, or
Mathematics

Functional Responsibilities: Participates in all phases of automated systems
design and development. Assists in requirements research, systems analysis,
design, programming, integration, testing, documentation, implementation, and
training of application programs/systems. Assists in the application of current
technologies, principles, and methods to arrive at automated solutions, assists
in the design and preparation of technical reports and other documentation.

Qualifications: Bachelors degree from an accredited college or university either
in Computer Science, Engineering, Mathematics or minimum of two years of recent
experience which is substantive and directly relevant to the technical area and
the subject matter of the task.

<PAGE>   26

MICROSOFT CERTIFIED INFORMATION SYSTEMS Engineer

Minimum/General Experience: Four years specialized experience in engineering
large information systems. Working knowledge of current and anticipated
developments in such areas as information systems hardware, software, databases,
communication protocols, and networking.

Functional Responsibilities: Duties include but are not limited to providing
technical supervision, analysis and engineering of information systems, defining
requirements, limitations, guidance and direction, and developing plans for
utilizing Microsoft@ Windows NT(R) Server and the Microsoft BackOffice(TM)
integrated family of server products.

Minimum Qualifications: Bachelor degree in Engineering, Computer Science, or
related field. Successful completion and maintenance of the Microsoft Certified
Professional Program for Systems Engineers.

Microsoft Certified Information Systems Solution Developer

Minimum/General Experience: Four years specialized experience in engineering
large information systems. Working knowledge of current and anticipated
developments in such areas as information systems hardware, software, databases,
communication protocols, and networking.

Functional Responsibilities: Duties include but are not limited to providing
technical supervision, design and development of custom solutions utilizing
Microsoft development tools, technologies, and platforms, including Microsoft@
Office and Microsoft BackOffice'.

Minimum Qualifications: Bachelor degree in Engineering, Computer Science, or
related field. Successful completion and maintenance of the Microsoft Certified
Professional Program for Solution Developer.<PAGE>   1
                                                                  EXHIBIT 10.24

                                     -------------------------------------------
                                                   STATE OF COLORADO
                                              DEPARTMENT OF HUMAN SERVICES
                                       OFFICE OF INFORMATION TECHNOLOGY SERVICES
                                                 DEPT #
                                                 ROUTING # 99 IHA 00458
                                     -------------------------------------------

                                    CONTRACT

        THIS CONTRACT, made this 2nd day of October, 1998, by and between the
State of Colorado for the use and benefit of the DEPARTMENT OF HUMAN SERVICES,
Office of Information Technology Services, 1575 Sherman St., 7'h Floor, Denver,
Colorado 80203, hereinafter referred to as the State, and ARIS CORPORATION, P.O.
Box 4424, Bellevue, WA 98009-4224, (with a local business office at 717
Seventeenth Street, Suite 1510, Denver, CO 80202), hereinafter referred to as
the Contractor.

        WHEREAS, authority exists in the Law and Funds have been budgeted,
appropriated and otherwise made available and a sufficient unencumbered balance
thereof remains available for payment in Fund Number 100, Appropriation Code
240; and

        WHEREAS, required approval, clearance and coordination- has been
accomplished from and with appropriate agencies; and

        WHEREAS, in accordance with the terms hereof, the parties desire to have
Contractor engineer, design, acquire, install, develop, test, and implement all
required hardware and software, develop and deliver training, and provide
helpdesk support considered necessary for the County Financial Management
System, hereinafter called CFMS, an automated financial management system for
use by the State and counties of Colorado; and

        WHEREAS, in accordance with the terms hereof, the parties desire to have
Contractor provide maintenance of CFMS (application software, host environment
hardware/software, training, and helpdesk support) for one year and up to four
additional years at the State's option; and

        WHEREAS, on July 27, 1998 the State issued Request for Proposal #
IHANC907015ITSX (the "RFP") seeking proposals from vendors for services for the
CFMS project; and

        WHEREAS, in response to the RFP, the Contractor submitted its proposal
(the "Proposal") which was determined to be the most advantageous to the State,
taking into consideration the price and evaluation facto set forth in the RFP.

                                  Page 1 of 33
<PAGE>   2

NOW THEREFORE, it is here by agreed that

I.      Statement of Work

        A. The parties understand and agree that Exhibit A attached hereto
        consists of the RFP and that Exhibit B attached hereto consists of the
        Proposal The Contractor shall provide to the State the services and
        deliverables set forth herein and in Exhibits A and B, at the prices and
        rates set forth in Exhibits B and C.

        B. In the event of conflict between the terms of this Agreement and the
        provisions of Exhibits A and/or B, the terms of this Agreement shall
        control. In the event of a conflict between the provisions of Exhibit A
        and the provisions of Exhibit B, the provisions of Exhibit A shall
        control.

        C. The Contractor shall provide the services hereunder in accordance
        with the workplan with deliverables schedule and costs attached hereto
        as Exhibit C. In the event of conflict between the terms of this
        Agreement and the provisions of Exhibit C, the terms of this Agreement
        shall control. In the event of a conflict between the provisions of
        Exhibit C and the provisions of Exhibits A and/or B, the provisions of
        Exhibit C shall control.

II.     PROJECT STAFF

        In the performance hereunder, unless otherwise approved by the State,
        which approval by the State shall not unreasonably withhold, the
        Contractor shall use and provide the key project staff proposed in
        Exhibit B. It is agreed that the key project staff proposed shall be
        provided by the Contractor for this project and approved by the State
        and any changes in key staffing must also be approved by the State.

        The State shall retain the right to request, within a reasonable period
        of time, the replacement of any of the Contractor personnel whose
        qualifications or performance does not meet the qualifications or
        performance necessary for the successful and timely completion of the
        project. Upon receipt of such written request, the Contractor shall
        comply with such a request within 30 days, or take other corrective
        action as may be negotiated with the State.

III.    Ownership of Materials and Information

        A. During the term of this Agreement, as a result of Contractor's
        efforts under this Agreement, Contractor may generate ideas, inventions,
        suggestions, copyrightable materials or other information ("Intellectual
        Property") which fall into one of two categories:

                                  Page 2 of 33
<PAGE>   3

        1.      Intellectual Property specifically related to the subject
                mattes of Contractor's efforts under this Agreement, and
                directly related to, of incorporated into, the work product to
                be produced by Contractor and delivered to the State under this
                Agreement Title to Intellectual Property described in this
                paragraph 111.A I., that is developed solely by Contractor, or
                jointly by Contractor and the State, shall remain in the State
                at all times Contractor agrees to disclose and assign to the
                State, in a term satisfactory to the State, all such
                Intellectual Property, whether made alone or in conjunction with
                others, and to render such assistance as the State may
                reasonably require to perfect such assignments and to protect
                such Intellectual Property. The parties understand and agree
                that any such property, if developed from federal funds, may be
                the property of the Federal Government. If such be the case, the
                State reserves a royalty-free, non-exclusive, and irrevocable
                license to reproduce, publish, and otherwise use and to
                authorize others to use for the State's and for the Federal
                Government's purposes, any such intellectual property; and

        2.      Intellectual Property of general applicability, whether or not
                related to, or incorporated into, the work product to be
                produced by Contractor and delivered to the State under this
                Agreement. Title to Intellectual Property described in this
                paragraph III.A.2., including any Intellectual Property
                developed by Contractor prior to or outside of this Agreement,
                shall remain in Contractor. To the extent such Intellectual
                Property is incorporated into the work product to be produced by
                Contractor and delivered to the State under this Agreement,
                Contractor grants and the State hereby accepts, a perpetual,
                worldwide, royalty-free, non-exclusive license to use all such
                Intellectual Property as incorporated into the Contractor work
                product."

        B. The State will be the owner of the license provided by the contractor
        on all third party proprietary operating and vendor software package(s)
        which are provided to the State hereunder.

        C. The State grants the Contractor, to the extent authorized by law,
        rights to royalty-free use of the CFMS Project software and
        documentation in the bidding and performance of other government system
        transfer or development projects, provided such use does not result in
        any additional cost to the State, compromise the performance of this or
        any other State project, or disclose any restricted State or personal
        data obtained by the Contractor in performance of this contract.

                                  Page 3 of 33
<PAGE>   4

        D. Records Retention and Availability All contractor records. documents,
        communications and other materials related to the performance of this
        contract shall remain the property of tile Contractor to ensure the
        Contractor "s ability to comply with all State, Federal and SIC
        corporate reporting requirement, but shall be made available to the
        State for review and audit as defined in Section VI paragraph H of this
        Contract "Inspection". All such records shall be maintained by the
        contractor, for a period of 4 years from November I, 1998.

        E. Approval Process for Deliverables: The State agrees to review the
        final deliverable document, product, or service within five (5) to ten
        (10) working days of receipt, as applicable, thereof by the State.
        Acceptance/rejection by the State will be indicated by a Letter of
        Acceptance/Rejection citing the specific deliverables that are
        approved/or not approved. Any approvals required by the Federal
        government are excluded from this agreement and may add additional time
        for review. Should protracted review by the Federal government result in
        an impact on the project schedule, parties agree to negotiate a revised
        schedule based on the delay.

IV.     MANDATORY FIXED PRICE DELIVERABLES

        The Contractor shall provide an operational system that meets the
        requirements specified in the RFP (EXHIBIT A), and in accordance with
        the requirements (technical and functional) defined in the detailed
        design, required under Exhibit C, and accepted and approved by the State
        for an amount not to exceed $5,170,937.

        The development process for the system shall take no longer than eight
        (8) months from November 2, 1998 and the Contractor shall allow for a
        subsequent six (6) month acceptance period. The Contractor shall
        provide, upon acceptance of a fully operational system, one (1) year of
        mandatory maintenance, support and operation for the system as defined
        in the RFP (warranty period).

        All fixed price deliverables are subject to the State's acceptance
        before they can be determined as "final". The list of fixed price
        deliverables for the System is included in EXHIBIT C.

V.      OPTIONAL MAINTENANCE AND SUPPORT

        The Contractor shall provide support (including, but not limited to
        on-going application software, host environment hardware/software,
        training, and help desk support) for up to four (4) years, at the
        State's option, exercisable on a year by year basis, beginning at the
        conclusion of the warranty period, and ending December 31, 2004 This
        request for maintenance and support can be made on a year by year basis
        up to four (4) years as specified in the RFP (EXHIBIT A)

                                  Page 4 of 33
<PAGE>   5

        Optional Maintenance acrd Support for the System is not to exceed
        $4,054,253 for a period of 4 years ($9 9,372 for Year l - 2001, $986,890
        for Year 2 - 2002, $1,()37,969 for Year 3 - 2003, and $1,090,022 for
        Year 4 - 2004). to be exercised at the State's option This amount is the
        Contractor's fixed price bid for up to 4 years of maintenance and
        support The additional 4 years of optional support and maintenance will
        require a plan set forth by the Contractor for the State's approval,
        which lists deliverables This plan and the procedure for the
        year-by-year exercise of the optional maintenance and support shall be
        finalized between the parties by a formal amendment hereto. The
        Contractor shall provide the plan to the State not later than September
        30, 2000

        Financial obligations of the State of Colorado payable after the current
        fiscal year are contingent upon funds for that purpose being
        appropriated, budgeted, and otherwise made available

VI.     MISCELLANEOUS PROJECT PROVISIONS

        A.      BILATERAL CHANGE ORDER LETTERS

                Bilateral changes within the general scope of the contract may
                be executed using the simplified change order letter process
                described in this paragraph and the model letter attached as
                EXHIBIT D for any of the following reasons:

                1.      Where the agreed changes result in no adjustment to the
                        price, delivery schedule, or other terms and conditions
                        of the contract, the change letter will contain a mutual
                        release of claims for adjustment of price, cost, time
                        for performance, or other terms and conditions, whether
                        based on costs of changed work or direct or indirect
                        impacts on unchanged work, as a result of the change; or

                2.      Where the changes to the contract are price based on the
                        unit prices to be paid for the goods or services in
                        EXHIBIT C of the contract (unit prices refers to such in
                        EXHIBIT B); or

                3.      Where the changes to the contract are priced based on
                        the established catalog prices generally extended to the
                        public, or on prices or rates set by law or regulation.

                                  Page 5 of 33
<PAGE>   6

                        The written bilateral change order letter WILL be
                        substantially in tile form at EXHIBIT D, must bear tile
                        signature of' tile authorized agency official tile
                        contractor, and--except where the parties agree on the
                        face of' tile change order that no price/cost, schedule,
                        or other contract adjustments are due the contractor-the
                        State Controller or Ills designee The change order
                        letter shall refer to the basic contract and include a
                        detailed description of' the changes to the contract,
                        tile price or cost of ceiling adjustment, the effective
                        date, and (where applicable) the time within which the
                        changed work must be done. Other bilateral modifications
                        to this contract not within the scope of this paragraph
                        must be executed by formal amendment to the contract,
                        approved in accordance with State law.

        B       LIQUIDATED DAMAGES

        In the event the Contractor does not perform its obligations under this
        Contract, the State will incur major costs to maintain the functions
        that would have otherwise been performed by the Contractor. The parties
        understand and agree that the damages herein provided for are difficult
        to establish and the below stated damages are a reasonable approximation
        of actual damages.

        If the Contractor fails to meet the performance specifications herein,
        liquidated damages may be imposed by the State against the Contractor
        for Project Delays, System Down Time, Contractor Nonresponsiveness
        and/or Late Deliverables. The State may require direct payment of such
        liquidated damages from the Contractor. The parties agree that the
        damages from breach of this contract are difficult to prove or estimate,
        and the amount of liquidated damages specified herein represents a
        reasonable estimation of damages that will be suffered by the State from
        late performance, including costs of additional inspection and
        oversight, and lost opportunity for additional efficiencies that would
        have attended on-time completion of performance. The following represent
        circumstances under which liquidated damages may be imposed on the
        Contractor by the State:

                1.      LIQUIDATED DAMAGES FOR SYSTEM DOWN TIME AND NON
                        RESPONSIVENESS

                        The parties understand and agree that it is critical for
                        the CFMS host system to maintain continuous online
                        availability which meets the response time requirements
                        in Section 5 of the RFP (EXHIBIT A). It is also critical
                        that system support be available seven (7) days a week,
                        twenty-four (24) hours a day. Therefore, at any time
                        where due to the fault of the Contractor, the
                        Contractor's unscheduled production host environment
                        [host system(s) and back-up system(s)] is unavailable,
                        the liquidated damages shall be as follows:

                                  Page 6 of 33
<PAGE>   7

                        a Down time during the business day 7:00 am to 7 pm.
                        Monday - Friday) in excess of two (2) hours $1,00 per
                        hour

                        b Down time other than business day in excess of' four
                        (4) hours $ 1,000 per hour

                        Commencing with the roll-out of the application software
                        into production, during the term hereof, the following
                        schedule applies for any continuous 24 month period
                        beginning on the date of the first individual occurrence
                        of down time:

                                Damages for the first individual occurrence of
                                down time shall be assessed at a factor of 75%.
                                Thereafter, successive instances of down time
                                shall have damages assessed at a factor as
                                follows.

                                Second and Third - 85%
                                Fourth through Sixth - 95%
                                Seventh through Twelfth - 125%
                                Thirteenth and above - 200%

                        c. The damage provisions of this section shall be
                        limited to the amount as set forth in section VI(E)(2)
                        of this Agreement.

        2.      LATE DELIVERABLES

                Subject to the limitations of liability provisions as set forth
                in section VI(E)(2) of this Agreement, in the event that the
                Contractor fails to complete and submit a required deliverable
                as defined in Exhibits C or E, $3,000 per day liquidated damages
                may be applied by the State for the late submission of the
                deliverable for each day beyond the scheduled due date for the
                deliverable. This provision also applies to deliverables that
                are deemed unacceptable by the State and the re-submission of
                the deliverable is late due to the State's rejection. This
                provision shall be limited to those items in EXHIBITS C and E
                identified by an asterisk (*).

                The remedy specified in this clause does not limit the State's
                right to exercise other remedies under this contract, or at law
                or equity.

                                  Page 7 of 33
<PAGE>   8

        3.      FAILURE TO MEET SYSTEM IMPLEMENTATION DATE

                In the event the Contractor fails to have CFMS functioning on
                July I, 1999 in accordance with the CFMS Project Workplan, a
                $10,000 per day liquidated damages may he applied by the State
                for each day beyond July 1, 1999 This section shall be limited
                to the amounts as set forth in Section (Vl)(E-)(2) of this
                Agreement

C       BILLING, AND PAYMENT TERMS

        1.      The Contractor shall bill the State according to the agreed-upon
                payment schedule in EXHIBITS C and E.

        2.      Payment pursuant to this contract shall be made as earned, in
                whole or in part, from available funds in an amount not to
                exceed * for the purchase of the within described hardware,
                software, and consulting services, and the mandatory fixed price
                and optional maintenance and support for 4 years after
                expiration of the mandatory 12 month warranty period. The
                liability of the State, at any time shall be limited to the
                encumbered amount remaining of such funds.

<TABLE>
<S>                                                                    <C>
                    *
                    *
                    *
                    *
                    *
                    *
                    *

</TABLE>

                No unused funds in any one fiscal year may be extended for use
                in a subsequent year without the prior written consent of the
                State.

                See the "Dollar Analysis" section of Exhibit C for a full
                reconciliation of prices, use of funds, and time periods.

                3.      The State may establish forms to be followed and used by
                        the Contractor in billing for services, equipment, and
                        deliverables provided hereunder. Invoices shall be
                        submitted to the State by the Contractor on a monthly
                        basis for work performed in the previous month. The
                        State shall pay amounts due within 45 days of the
                        receipt of correct billings.

                        Financial obligations of the State of Colorado payable
                        after the current fiscal year are contingent upon funds
                        for that purpose being appropriated, budgeted, and
                        otherwise made available

*Portions of this agreement have been omitted pursuant to a request for
 confidential treatment pursuant to SEC Rule 24b-2, to be filed separately with
 the SEC no later than April 10, 2001.

                                  Page 8 of 33
<PAGE>   9

                4       Trough system implementation, for deliverables by the
                        Contractor, as set forth in Exhibit C, there shall be up
                        to a twenty percent (20%) holdback, excluding hardware.
                        non-CFMS software, and facility costs, to be retained by
                        the State pending roll-out, integration and acceptance
                        of each of' the major subsystems The 20% holdback will
                        be distributed after the System is fully operational and
                        accepted by the State, and the integrated solution as
                        identified in the RFP, has been delivered according to
                        the terms and specifications hereof Payments for
                        Facilities and Facilities Support shall be made based on
                        the expenses incurred and as billed monthly by the
                        contractor. Hardware and non-CFMS software will be
                        billed as expenses incurred and paid based on the
                        State's acceptance and approval of the deliverable.
                        Expenses subject to this provision shall be limited to
                        those items in Exhibit C identified by a pound sign (#).

D.      TAXES

        The State is exempt from all federal excise taxes and from all state and
        local government use taxes. When materials are purchased by the
        Contractor for the benefit of the State, such exemptions apply except
        that in certain political subdivisions (for example - City of Denver)
        the Contractor may be required to pay sales or use taxes even though the
        ultimate product or service is provided to the State. These sales or use
        taxes will not be reimbursed by the State.

E.      DAMAGES

        1.      Notwithstanding any language to the contrary, no interpretation
                hereof shall be allowed to find the State or any agency thereof
                has agreed to the payment of damages or penalties upon the
                occurrence or non-occurrence of a contingency.

        2.      This section is hereby made bold and conspicuous for the benefit
                of both parties. In no event shall the contractor's contractual
                liability to the State for damages of any nature exceed the
                total charges payable under this contract, as it may be amended
                from time to time. This limitation of liability provision, and
                any other limitation or exclusion of damages in this contract,
                do not limit or exclude the contractor's liability for
                infringement or for death or bodily injury or damage to tangible
                property arising out of contract performance and caused by the
                contractor, its employees, agents, or subcontractors.

                                  Page 9 of 33
<PAGE>   10

        F.      WARRANTY OF DELIVERABLES

                1       Notwithstanding prior acceptance by the State of any
                        deliverables) under this contract, the Contractor
                        expressly warrants all documentation, reports and other
                        items as correct and complete within the terms of this
                        contract The Contractor shall warrant custom application
                        software free of significant problems or bugs after the
                        State operates the System through a complete 12 month
                        cycle or through December 31, 2000, whichever comes
                        later. The commencement date of operation of the System
                        shall be determined by the parties based upon the
                        acceptance protocol developed under Task 8 of EXHIBIT C.
                        No provision hereof shall be given effect which attempts
                        to exclude, modify, disclaim or otherwise attempts to
                        limit implied warranties of merchantability and fitness
                        for a particular purpose by the Contractor.

                2.      Upon its recognition of any significant error,
                        deficiency, or defect in the performance by the
                        Contractor, the State shall give notice to the
                        Contractor in writing, and cite in the notice the
                        specific deficiency. After such notice, the Contractor
                        shall promptly respond with a plan to correct any
                        deficiencies cited in the notice. If, in the exercise of
                        its reasonable discretion, the State finds that the plan
                        is inadequate to correct the deficiency, or if the
                        Contractor fails to diligently implement the plan or
                        correct the error, deficiency or defect, or the error
                        recurs, the State upon written notification to the
                        Contractor may act to correct the problem. Should the
                        State so act, the Contractor shall reimburse the State
                        for any costs it incurs from so acting and/or the State
                        may consider such deficiency(s) by the Contractor to be
                        a breach of this Contract.

                3.      The Contractor warrants that the software, firmware, or
                        supplies delivered, or services performed, under this
                        contract to be used before, during, and after the turn
                        of the century (January 1, 2000) are "Year 2000
                        compliant." "Year 2000 compliant" means fault-free
                        performance in the processing of date and date-related
                        (including, but not limited to calculating, comparing,
                        and sequencing) by all software products, firmware, and
                        supplies, individually and in combination as a system,
                        when used in accordance with the product documentation
                        provided by the Contractor. Fault-free performance
                        means:

                                 Page 10 of 33
<PAGE>   11

                        -       Nor invalid car incorrect results or abnormal
                                termination prior to, during, and after January
                                1, 2000 as a result of date or date-related data
                                or data processing that represents or references
                                different centuries or more than one century;
                                and

                        -       Proper calculation and handling of leap years;
                                and

                        -       Except for normal user interfaces (e.g. four
                                digit date entry) identified in the Contractor's
                                documentation, such as date data processing
                                shall be transparent to the user.

                In the event this warranty is breached, the State may elect to
                (1) return the software or supply and receive a refund of the
                purchase price (in the case of delivered software or supplies)
                or (2) require the contractor to make all code revisions or
                repairs/replacements or firmware or supplies, as well as
                revisions to associated documentation, at no cost to the State
                in order to ensure that the software, firmware or supplies are
                Year 2000 compliant so long as notice of such defect is provided
                no later than 90 days after discovery. This warranty shall
                survive acceptance of the software, firmware, or supplies and is
                not subject to any disclaimer or limitation of warranty or other
                limitation of the contractor's or vendor's liability which may
                be specified in this contract or purchase -order, or exhibits,
                appendices, or any other document attached or incorporated in
                this contract by reference. The remedies specified therein shall
                not be exclusive remedies and shall not limit any other remedy
                at law or equity available to the State.

                All remedies are cumulative and may be selectively and
                collectively enforced by the State. Enforcement of one remedy
                does not preclude enforcement of any or all other remedies.

        G.      FORCE MAIEURE

                Neither the Contractor nor the State shall be liable to the
                other for any delay in, or failure of performance of, any
                covenant or promise contained in this contract, nor shall any
                delay of failure constitute default or give rise to any
                liability for damages if, and only to the extent that, such
                delay or failure is caused by "force majeure." As used in this
                contract "force majeure" means fire, explosion, action of the
                elements, strike, interruption of transportation, government
                interference, rationing, court action, illegality, or any other
                cause which is beyond the control of the party affected and
                which, by the exercise of reasonable diligence, could not have
                been prevented by the party affected. The existence of such
                causes of delay or failure shall extend the period for
                performance to such extent as may be necessary to enable the
                complete performance in the exercise of reasonable diligence
                after the causes of delay or failure have bee n removed. Nothing

                                 Page 11 of 33
<PAGE>   12

                in this paragraph shall prevent the State from covering its
                requirements from another Contractor during the period of delay.

        H.      INSPECTION

                Upon notification, except in exceptional circumstances, the
                State or its authorized representatives has the right to inspect
                or otherwise evaluate all phases of performance under this
                contract and in any premises in which it is being performed

                Upon ten (10) days notice, except in exceptional circumstances,
                by the State to the Contractor, during any working day between
                the hours of 7:30am - 5:00pm, all documentation, including
                accounting records, related to this Contract shall be available
                locally, within the Denver metro area, for and subject to
                review, inspection, copying, and audit by the State or any other
                personnel duly authorized by the State.

                The authorized parties inspecting or otherwise evaluating
                performance, the Contractor's documents shall abide by the
                Contractor's security policies.

        I.      FUNCTIONALITY

                EXHIBIT A shall govern as to functionality to be contained in
                CFMS. EXHIBIT B shall govern as to how that functionality will
                be provided in CFMS. After approval thereof by the State, the
                provisions of the Detailed Design Document (a deliverable
                hereunder) shall control over the provisions of EXHIBITS A and
                B.

        J.      TERM

                This contract shall be effective from November 2, 1998 to
                December 31, 2004.

                In the performance herein by the Contractor, time shall be of
                the essence.

        K.      PRIME CONTRACTOR AND SUBCONTRACTORS

        1.      The Contractor shall assume ALL responsibility for the delivery
                and quality of the products and services provided by this
                contract, regardless of whether or not the Contractor hires
                subcontractors. The Contractor shall be the sole point of
                contact with the State with regard to all matters covered by
                this contract. The Contractor shall not subcontract any work or
                services provided by this contract without the express written
                consent of the State prior to initiating the subcontract.
                Subcontracts permitted by the State shall be subject to the
                requirements of this Contract, and the

                                 Page 12 of 33
<PAGE>   13

                Contractor is responsible for all subcontracting arrangements
                and the delivery of services as set forth in this Contract
                Contractor shall be responsible for the performance of' any
                subcontractor Failure of the subcontractor to provide services
                in accordance with the requirements of this contract shall be
                the responsibility of the Contractor. Contractor warrants and
                agrees that any subcontract resulting from its performance under
                the terms and conditions of this Contract, shall include a
                provision requiring the said subcontractor to abide by the terms
                and conditions hereof, as well as all other applicable federal
                and State laws, and rules and regulations pertinent hereto that
                have been or may hereafter be established. Also, Contractor
                warrants and agrees that all subcontracts shall include a
                provision that the subcontractor shall indemnify and hold
                harmless the State of Colorado, Department of Human Services.

        2.      The parties understand and agree that the September 2, 1998
                memorandum from ARIS's Legal Department (in Tab 8 of Exhibit B)
                shall not apply to this contract. The license(s) from Oracle
                Corporation to be supplied hereunder by the contractor to the
                State shall comply with the terms and conditions of the sample
                agreement attached hereto as Exhibit F.

        L.      SUPPORT

                At the option of the State, support and maintenance of the
                state-wide software applications can be out-sourced with the
                Contractor. The State retains the option to exercise these 4
                optional years of maintenance and support. It is expected that
                the Contractor will provide the maintenance and support for the
                first year as part of this contract and the 4 optional years
                will be exercised in one year increments.

        M.      NOTICE AND REPRESENTATIVES

                Representatives

                For the purposes of this Contract, the individuals identified
                below are hereby designated representatives of the respective
                parties. Either party may from time to time designate in writing
                a new or substitute representative(s):

                For the State:                       For the Contractor:
                Patrick Horton                       Mark Devlin
                Manager, Office of Operations        Regional Consulting Manager
                1575 Sherman, 60th Floor             717 17th St., Suite 1510
                Denver, CO 80203                     Denver, CO 80202
                and
                Henry D. Wharton
                Chief Information Officer

                                 Page 13 of 33
<PAGE>   14

                1575 Sherman, 7th Floor
                Denver, CO 80203

                Notice

                All notice required to be given by the parties hereunder shall
                be given by certified or registered mail, return receipt
                requested, to the individuals at the addresses set forth below.
                Either party may from time to time designate in writing a
                substitute person(s) or address to whom such notices shall be
                sent

        N.      DISPUTES

                Except as herein specifically provided otherwise, disputes
                concerning the performance of this Contract which cannot be
                resolved by the designated contract representatives shall be
                referred in writing to a senior departmental management staff
                designated by the department and a senior manager designated by
                the Contractor. Failing resolution at that level, disputes shall
                be presented in writing to the executive director and contractor
                chief executive officer for resolution. This process is not
                intended to supersede any other process for the resolution of
                controversies provided by law.

        O.      REMEDIES

                The Executive Director of the State or designee may exercise the
                following remedial actions, in addition to all other remedial
                actions authorized by law or found in this contract, should s/he
                find the Contractor substantially failed to satisfy the scope of
                work, following written notification to the Contractor.
                Substantial failure to satisfy the scope of work shall be
                defined to mean incorrect or improper activities or inaction by
                Contractor. These remedial actions are as follows:

                1.      Withhold payment of disputed amounts to Contractor until
                        the necessary services or corrections in performance are
                        satisfactorily completed;

                2.      Request the removal from work on the contract of
                        employee(s) and/or agent(s) of Contractor whom the
                        Executive Director or designee reasonably justifies as
                        being incompetent, careless, insubordinate, unsuitable,
                        or otherwise unacceptable, or whose continued employment
                        on the contract s/he deems to be contrary to the public
                        interest or not in the best interest of the State;

                3.      Deny payment or recover reimbursement for those services
                        or deliverables which have not been performed and which
                        due to circumstances caused by Contractor cannot be
                        performed or if performed would be of no value to the
                        State. Denial of the amount of payment shall be
                        reasonably related to the amount of work or deliverable
                        lost to the State;

                                 Page 14 of 33
<PAGE>   15

                4.      Incorrect payments to the Contractor due to omission,
                        error, fraud, and/or defalcation shall be recovered from
                        the Contractor by deduction from subsequent payments
                        under this Contract or other contracts between the State
                        and the Contractor, or by the State as a debt due to the
                        State or otherwise as provided by law

                5.      Terminate the Contract for cause without compensation
                        for termination costs If the State terminates the
                        Contract for cause, it WILL first give written notice to
                        the Contractor, stating the reasons for cancellation,
                        procedures to correct problems, if any, and date the
                        Contract will be terminated in the event problems have
                        not been corrected.

                        a)      In the event this Contract is terminated for
                                cause, the State will only reimburse the
                                Contractor for acceptable work or deliverables
                                received to date of termination

                        b)      In the event this Contract is terminated for
                                cause, final payment to the Contractor may be
                                withheld at the discretion of the State until
                                completion of a final audit.

                6.      This contract is subject to immediate termination by the
                        State in the event that the State determines that the
                        health, safety, or welfare of persons receiving CDHS
                        services may be in jeopardy. Additionally, the state may
                        immediately terminate this contract upon verifying that
                        the Contractor has engaged in or is about to participate
                        in fraudulent acts.

        P.      TERMINATION

                Should the State exercise its right hereunder to terminate this
                Contract for Financial Exigency or for Convenience, within 10
                days of the termination date (or such other period as the
                parties may mutually agree upon), the Contractor shall be
                entitled to be paid a reasonable amount for costs incurred. The
                Contractor shall submit to the State a statement of outstanding:
                1) reasonable and necessary costs incurred in the performance of
                the work up to the effective termination date, 2) reasonable and
                necessary costs of settling and paying termination settlement
                proposals not to exceed 30 days pay for each subcontractor, 3)
                reasonable profit on the completed, but undelivered work up to
                the date of termination and, 4) reasonable and necessary
                accounting, legal, clerical and other expenses necessary for
                preparation of termination settlement proposals.

                                 Page 15 of 33
<PAGE>   16

        Q.      Exhibits

                The following exhibits are made part of this Contract

                    EXHIBIT A     Request for Proposal (RI,_P) - because of its
                                  voluminous size, this EXHIBIT A is not
                                  attached hereto, however, each party
                                  acknowledges being in possession of an
                                  original copy of EXHIBIT A.

                    EXHIBIT B     Technical and Cost Proposal - because of its
                                  voluminous size, this EXHIBIT B is not
                                  attached hereto, however, each party
                                  acknowledges being in possession of an
                                  original copy of EXHIBIT B.

                    EXHIBIT C     Deliverable Schedule and Costs - attached
                                  hereto

                    EXHIBIT D     Task Order Format - attached hereto

                    EXHIBIT E     To Be Added after Detailed Design for the
                                  Optional Years Deliverable Schedule and Costs

                    EXHIBIT F     Sample Oracle Corporation license agreement

                    GENERAL PROVISIONS

                    SPECIAL PROVISIONS

                                 Page 16 of 33
<PAGE>   17

                                                                   [Insert 6-5]

                               GENERAL PROVISIONS

        The following clauses apply to this contract. In some instances, these
        general clauses have been expanded upon in other sections of this
        contract. To the extent that other provisions of the contract provide
        more specificity than these general clauses, the more specific provision
        shall control.

A.      Federal Funds Contingency

        Payment pursuant to this contract, if in federal funds, whether in whole
        or in part, is subject to and contingent upon the continuing
        availability of federal funds for the purposes hereof. In the event that
        said funds, or any part thereof, become unavailable as determined by the
        State, the State may immediately terminate this contract or amend it
        accordingly.

B.      INDEPENDENT CONTRACTOR

        THE CONTRACTOR SHALL PERFORM ITS DUTIES HEREUNDER AS AN INDEPENDENT
        CONTRACTOR AND NOT AS AN EMPLOYEE. NEITHER THE CONTRACTOR NOR ANY AGENT
        OR EMPLOYEE OF THE CONTRACTOR SHALL BE OR SHALL BE DEEMED TO BE AN AGENT
        OR EMPLOYEE OF THE STATE. CONTRACTOR SHALL PAY WHEN DUE ALL REQUIRED
        EMPLOYMENT TAXES AND INCOME TAX WITHHOLDING, INCLUDING ALL FEDERAL AND
        STATE INCOME TAX AND LOCAL HEAD TAX ON ANY MONIES PAID PURSUANT TO THIS
        CONTRACT. CONTRACTOR ACKNOWLEDGES THAT THE CONTRACTOR AND ITS EMPLOYEES
        ARE NOT ENTITLED TO UNEMPLOYMENT INSURANCE BENEFITS UNLESS THE
        CONTRACTOR OR A THIRD PARTY PROVIDES SUCH COVERAGE AND THAT THE STATE
        DOES NOT PAY FOR OR OTHERWISE PROVIDE SUCH COVERAGE. CONTRACTOR SHALL
        HAVE NO AUTHORIZATION, EXPRESS OR IMPLIED, TO BIND THE STATE TO ANY
        AGREEMENTS, LIABILITY, OR UNDERSTANDING EXCEPT AS EXPRESSLY SET FORTH
        HEREIN. CONTRACTOR SHALL PROVIDE AND KEEP IN FORCE WORKER'S COMPENSATION
        (AND SHOW PROOF OF SUCH INSURANCE) AND UNEMPLOYMENT COMPENSATION
        INSURANCE IN THE AMOUNTS REQUIRED BY LAW, AND SHALL BE SOLELY
        RESPONSIBLE FOR THE ACTS OF THE CONTRACTOR, ITS EMPLOYEES AND AGENTS.

                                 Page 17 of 33
<PAGE>   18

C.      Beneficiary

        Except as herein specifically provided otherwise, this contract shall
        inure to the benefit of and be binding upon the parties hereto and their
        respective successors and assigns.

        It is expressly understood and agreed that the enforcement of the terms
        and conditions of this contract and all rights of action relating to
        such enforcement, shall be strictly reserved to the State and the named
        contractor. Nothing contained in this agreement shall give or allow any
        claim or right of action whatsoever by any other third person. It is the
        express intention of the State and the contractor that any such person
        or entity, other than the State or the contractor, receiving services or
        benefits under this agreement shall be deemed an incidental beneficiary
        only.

D.      Insurance - Contractor

        1.      During the term of this contract, and any extension(s) hereof,
                contractor agrees that it will keep in force an insurance policy
                or policies, issued by a company authorized to do business in
                Colorado, in the kinds and minimum amounts specified below
                unless specifically waived herein. In the event of cancellation
                of any such coverage, the contractor shall immediately notify
                the State of such cancellation.

                a.      Standard Worker's Compensation and Employers' Liability
                        as required by State statute, including occupational
                        disease; covering all employees on or off the work site,
                        acting within the course and scope of their employment.

                b.      General, Personal Injury, Professional, Automobile
                        Liability (including bodily injury, personal injury and
                        property damage) with minimum coverage of:

                        (1)     Occurrence basis policy: combined single limit
                                of $600,000 or Claims-Made policy: combined
                                single limit of $600,000; plus an endorsement,
                                certificate, or other evidence that extends
                                coverage two years beyond the performance period
                                of the contract.

                        (2)     Annual Aggregate Limit policy: Not less than
                                $1,000,000 plus agreement that the contractor
                                will purchase additional insurance to replenish
                                the limit to $1,000,000 if claims reduce the
                                annual aggregate below $600,000.

                                 Page 18 of 33
<PAGE>   19

        2.      The State of Colorado shall be named as an additional insured on
                all liability policies.

        3.      The insurance shall include provisions preventing cancellation
                without thirty (30) calendar days prior written notice to the
                State by certified mail.

        4.      Upon execution of this contract, the contractor shall provide to
                the State additional insured endorsements and certificates of
                the required insurance coverage.

        5.      The contractor shall provide such other insurance as may be
                required by law, or in a specific solicitation.

        6.      If the contractor is a "public entity" within the meaning of the
                Colorado Governmental Immunity Act, 24-10-101, et seg.. C.R.S..
                as amended ("Act"); the contractor shall maintain such
                insurance, by commercial policy or selfinsurance, as is
                necessary to meet the contractor's liabilities under-the Act.
                Proof of such insurance shall be provided upon request by the
                State.

E.      Contractor Representations - Licenses/Approvals/insurance

        The contractor certifies that, at the time of entering into this
        contract, it has currently in effect all necessary licenses,
        certifications, approvals, insurance, etc. required to properly provide
        the services and/or supplies covered by this contract. Additionally, all
        employees of the contractor performing services under this contract
        shall hold the required license or certification, if any, to perform
        their responsibilities. Any revocation, withdrawal or nonrenewal of
        necessary license, certification, approval, insurance, etc. required for
        the contractor to properly perform this contract, shall be grounds for
        termination of this contract by the State.

        The contractor further certifies that, if a foreign corporation, a
        limited liability company, a limited liability partnership or a limited
        liability limited partnership, it currently has a Certificate of Good
        Standing or Certificate of Existence to do business in Colorado. Proof
        of such certification shall be provided upon request by the State.

F.      Records Maintenance

        The contractor shall maintain a complete file of all records, documents,
        communications, and other materials which pertain to the operation of
        the

                                 Page 19 of 33
<PAGE>   20

        program/project or the delivery of services under this contract. Such
        files shall be sufficient to properly reflect all direct and indirect
        costs of labor, materials, equipment, supplies and services, and other
        costs of whatever nature for which a contract payment was made. These
        records shall be maintained according to generally accepted accounting
        principles and shall be easily separable from other contractor records.

G.      Records Retention and Availability

        All such records, documents, communications, and other materials shall
        be the property of the State unless otherwise specified herein and shall
        be maintained by the contractor, for a period of three (3) years from
        the date of final payment or submission of the final federal expenditure
        report under this contract, unless the State requests that the records
        be retained for a longer period, or until an audit has been completed
        with the following qualification. If an audit by or on behalf of the
        federal and/or state government has begun but is not completed at the
        end of the three (3) year period, or if audit findings have not been
        resolved after a three (3) year period, the materials shall be retained
        until the resolution of the audit findings.

H.      Performance Monitoring

        The contractor shall permit the State and any other governmental agency
        authorized by law, or their authorized designee to monitor all
        activities conducted by the contractor pursuant to the terms of this
        contract. As the monitoring agency may in its sole discretion deem
        necessary or appropriate, such monitoring may consist of intemal
        evaluation procedures, reexamination of program data, special analyses,
        on-site verification, formal audit examinations, or any other reasonable
        procedures. All such monitoring shall be performed in a manner that will
        not unduly interfere with contract work.

I.      Audits

        1.      General. The contractor authorizes the State or its
                representatives to perform audits and/or inspections of its
                records at any reasonable time during the term of this contract
                and for a period of three (3) years, (unless the State
                determines a longer timeframe is required) following the date of
                final payment under this contract, to assure compliance with its
                terms and/or to evaluate the contractor's performance.

                                  Page 20 of 33
<PAGE>   21

                Any amounts which have been paid by the State which are found to
                be improper in accordance with other terms of this contract
                shall be immediately returned to the State or may be received in
                accordance with other remedies.

        2.      Single Audit Clause. All state and local governments and
                non-profit organizations receiving more than $300,000 from all
                funding sources, that are defined as federal financial
                assistance for single audit purposes, shall comply with the
                audit requirements of OMB Circular A-128 (Audits of State and
                Local Governments) or A-133 (Audits of Institutions of Higher
                Education and Other Non-profit Organizations), whichever
                applies.

J.      Confidential of Records

        The contractor shall protect the confidentiality of all records. and
        other materials containing personally identifying information that are
        maintained in accordance with this contract. Except as provided by law,
        no information in possession of the contractor about any individual
        constituent shall be disclosed in a form including identifying
        information without the prior written consent of the person in interest,
        a minor's parent, or guardian. The contractor shall have written
        policies- -governing access to, duplication and dissemination of, all
        such information. The contractor shall advise its employees, agents and
        subcontractors, if any, that they are subject to these confidentiality
        requirements. The contractor shall provide its employees, agents and
        subcontractors, if any, with a copy or written explanation of these
        confidentiality requirements before access to confidential data is
        permitted.

K.      Conflict of Interest

        During the term of this contract, the contractor shall not engage in any
        business or personal activities or practices or maintain any
        relationships which conflict in any way with the contractor fully
        performing his/her obligations under this contract.

        Additionally, the contractor acknowledges that, in governmental
        contracting, even the appearance of a conflict of interest is harmful
        -to the interests of the State.

        Thus, the contractor agrees to refrain from any practices, activities or
        relationships which could reasonably be considered to be in conflict
        with the contractor's fully performing his/her obligations to the State
        under the terms of this contract, without the prior written approval of
        the State.

        In the event that the contractor is uncertain whether the appearance of
        a conflict of interest may reasonably exist, the contractor shall submit
        to the State a full

                                 Page 21 of 33
<PAGE>   22

        disclosure statement setting forth the relevant details for the State's
        consideration and direction. Failure to promptly submit a disclosure
        statement or to follow the State's direction in regard to the apparent
        conflict shall be grounds for termination of the contract.

        Further, the contractor (and subcontractors or subgrantees permitted
        under the terms of this contract) shall maintain a written code of
        standards governing the performance of its employees engaged in the
        award and administration of contracts. No employee, officer or agent of
        the contractor, subcontractor, or subgrantee shall participate in the
        selection, or in the award or administration of a contract or
        subcontract supported by Federal funds if a conflict of interest, real
        or apparent, would be involved. Such a conflict would arise when:

                a.      The employee, officer or agent;

                b.      Any member of the employee's immediate family;

                c.      The employee's partner; or

                d.      An organization which employees, or is about to employ,
                        any of the above,

        has a financial or other interest in the firm selected for award. The
        contractor's, subcontractor's, or subgrantee's officers, employees, or
        agents will neither solicit nor accept gratuities, favors, or anything
        of monetary value from contractor's potential contractors, or parties to
        subagreements.

L.      Conformance with Law

        The contractor shall at all times during the term of this contract
        strictly adhere to all applicable federal and state laws and
        implementing regulations as they currently exist and may hereafter be
        amended. The contractor shall also require compliance with these
        statutes and regulations in subcontract and subgrant agreements, if any,
        permitted under this contract. Without limitation, these federal laws
        and regulations include:

        -       Age Discrimination Act of 1975, 42 U.S.C. Sections 6101 et. se
                q. and its implementing regulation, 45 C.F.R. Part 91;

        -       Age Discrimination in Employment Act of 1967, 29 U.S.C. 621-634;

        -       Americans with Disabilities Act of 1990 (ADA), 42 U.S.C. 12101
                et sea.;

        -       The Drug Free Workplace Act of 1988, 1988,41 U.S.C. 701 et seg.;

                                 Page 22 of 33
<PAGE>   23

        -       Equal Pay Act of 1963, 29 U_S.C. 206(d);

        -       Immigration Reform and Control Act of 1986, 8 U.S.C. 1324b;

        -       Pro-Children Act of 1994, 20 U.S.C. 6081 et seg.;

        -       Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794, as
                amended, and implementing regulation 45 C.F.R. Part 84;

        -       Titles VI & VII of the Civil Rights Act of 1964, 42 U.S.C. 2000d
                & e;

        -       Title IX of the Education Amendments of 1972, 20 U.S.C. 1681 et
                seg.;

        -       Section 24-34-302, et sea., Colorado Revised Statutes 1993, as
                amended;

        -       The "Uniform Administrative Requirements for Grants and
                Cooperative Agreements to State and Local Governments (Common
                Rule), at 49 Code of Federal Regulations, Part 18;

        -       Office of Management and Budget Circulars A-87, A-21 or A-122,
                and A-102 or A-110, whichever is applicable.

        -       The Hatch Act (5 USC 1501-1508 and Public Law 95-454 Section
                4728. These statutes state that federal funds cannot be used for
                partisan political purposes of any kind by any person or
                organization involved in the administration of
                federally-assisted programs.

        The contractor also shall comply with any and all laws and regulations
        prohibiting discrimination in the specific program(s) which is/are the
        subject of this contract. In consideration of and for the purpose of
        obtaining any and all federal and/or state financial assistance, the
        contractor makes the following assurances, upon which the State relies.

        1.      The contractor will not discriminate against any person on the
                basis of race, color, national origin, age, sex, religion and
                handicap, including Acquired Immune Deficiency Syndrome (AIDS)
                or AIDS related conditions, in performance of work under this
                contract.

        2.      At all times during the performance of this contract, no
                qualified individual with a disability shall, by reason of such
                disability, be excluded from participation in, or denied
                benefits of the service, programs, or activities

                                 Page 23 of 33
<PAGE>   24

                performed by the contractor, or be subjected to any
                discrimination by the contractor.

        3.      The contractor shall take all necessary affirmative steps, as
                required by 45 CFR 92.36(e), Colorado Executive Orders D0055 87
                and D0005 94 and State Procurement Rules, to assure that small
                and minority businesses and women's business enterprises are
                used, when possible, as sources of supplies, equipment,
                construction, and services purchased under this contract.

M.      Assignment/Delegation/Subcontracting

        Except as herein specifically provided otherwise, the duties and
        obligations of the contractor arising hereunder cannot be assigned,
        delegated nor subcontracted except with the express prior written
        consent of the State. The subcontracts permitted by the State shall be
        subject to the requirements of this contract, and the contractor is
        responsible for all subcontracting arrangements and the delivery of
        services as set forth in this contract. The contractor shall be
        responsible for the performance of any subcontractor. Failure of the
        subcontractor to provide services in accordance with the requirements of
        this contract shall be the responsibility of the contractor. . The
        contractor warrants and agrees that any subcontract resulting from its
        performance under the terms and conditions of this contract, shall
        include a provision that the said subcontractor shall abide by the terms
        and conditions hereof, as well as all other applicable federal and State
        laws, and rules and regulations pertinent hereto that have been or may
        hereafter be established. Also, the contractor warrants and agrees that
        all subcontracts shall include a provision that the subcontractor shall
        indemnify and hold harmless the State. The subcontractors must be
        certified to work on any equipment for which their services are
        obtained.

N.      Litigation

        The contractor shall promptly notify the State in the event that the
        contractor learns of any actual litigation in which it is a party
        defendant in a case which involves services provided under this
        contract. The contractor, within five (5) calendar days after being
        served with a summons, complaint, or other pleading which has been filed
        in any federal or state court or administrative agency, shall deliver
        copies of such document(s) to the State's Executive Director. The term
        "litigation" includes an assignment for the benefit of creditors, and
        filings in bankruptcy, reorganization and/or foreclosure.

                                 Page 24 of 33
<PAGE>   25

O.      Disputes

        Except as herein specifically provided otherwise, disputes concerning
        the performance of this contract which cannot be resolved by the
        designated contract representatives shall be referred in writing to a
        senior departmental management staff designated by the department and a
        senior manager designated by the contractor. Failing resolution at that
        level, disputes shall be presented in writing to the Executive Director
        and the contractor chief executive officer for resolution. This process
        is not intended to supersede any other process for the resolution of
        controversies provided by law.

P.      Remedies

        The Executive Director of the State or designee may exercise the
        following remedial actions, in addition to all other remedial actions
        authorized by law, should s/he find the contractor substantially failed
        to satisfy the scope of work found in this contract. Substantial failure
        to satisfy the scope of work shall be defined to mean incorrect or
        improper activities or inaction by the contractor.

        These remedial actions are as follows:

        1.      Withhold payment to the contractor until the necessary services
                or corrections in performance are satisfactorily completed;

        2.      Request the removal from work on the contract of employee(s)
                and/or agent(s) of the contractor whom the Executive Director or
                designee justifies as being incompetent, careless,
                insubordinate, unsuitable, or otherwise unacceptable, or whose
                continued employment on the contract s/he deems to be contrary
                to the public interest or not in the best interest of the State;

        3.      Deny payment or recover reimbursement for those services or
                deliverables which have not been performed and which due to
                circumstances caused by the contractor cannot be performed or if
                performed would be of no value to the State. Denial of the
                amount of payment shall be reasonably related to the amount of
                work or deliverables lost to the State;

        4.      Incorrect payments to the contractor due to omission, error,
                fraud, and/or defalcation shall be recovered from the contractor
                by deduction from subsequent payments under this contract or
                other contracts between the State and the contractor, or by the
                State as a debt due to the State or otherwise as provided by
                law.

                                  Page 25 of 33
<PAGE>   26

Q.      Termination

        1.      Termination for Default. The State may terminate the contract
                for cause without compensation for termination costs. If the
                State terminates the contract for cause, it will first give ten
                (10) days prior written notice to the contractor, stating the
                reasons for cancellation, procedures to correct problems, if
                any, and the date the contract will be terminated in the event
                problems have not been corrected.

                a.      In the event this contract is terminated for cause, the
                        State will only reimburse the contractor for acceptable
                        work or deliverables received up to the date of
                        termination.

                b.      In the event this contract is terminated for cause,
                        final payment to the contractor may be withheld at the
                        discretion of the State until completion of final audit.

        2.      Termination for Convenience. The State shall have the right to
                terminate this contract by giving the contractor at least thirty
                (30) days prior written notice. If notice is so given, this
                contract shall terminate on the expiration of the specified time
                period, and the liability of the parties hereunder for further
                performance of the terms of this contract shall thereupon cease,
                but the parties shall not be released from the duty to perform
                their obligations up to the date of termination.

        3.      Immediate Termination. This contract is subject to immediate
                termination by the State in the event that the State determines
                that the health, safety, or welfare of persons receiving
                services may be in jeopardy. Additionally, the State may
                immediately terminate this contract upon verifying that the
                contractor has engaged in or is about to participate in
                fraudulent acts.

        4.      Termination for Financial Exigency. The State shall have the
                right to terminate this contract for financial exigency by
                giving the contractor at least thirty (30) days prior written
                notice. For the purposes of this provision, a financial exigency
                shall be a determination made by the Colorado legislature or its
                Joint Budget Committee that the financial circumstances of the
                State are such that it is in the best interest of the State to
                terminate this contract. If notice of such termination is so
                given, this contract shall terminate on the expiration of the
                time period specified in the notice, and the liability of the
                parties hereunder for further performance of the terms of this
                contract shall

                                 Page 26 of 33
<PAGE>   27

                thereupon cease, but the parties shall not be released from the
                duty to perform their obligations up to the date of termination.

R.      Severability

        To the extent that this contract may be executed and performance of the
        obligations of the parties may be accomplished within the intent of the
        contract, the terms of this contract are severable, and should any term
        or provision hereof be declared invalid or become inoperative for any
        reason, such invalidity or failure shall not affect the validity of any
        other term or provision hereof. The waiver of any breach of a term
        hereof shall not be construed as a waiver of any other term, or the same
        term upon subsequent breach.

S.      Integration of Understandings.

        This contract is intended as the complete integration of all
        understandings between the parties. No prior or contemporaneous
        addition, deletion, or other amendment hereto shall have any force or
        effect whatsoever, unless embodied herein in writing. No subsequent
        novation, renewal, addition, deletion, or other amendment hereto shall
        have any force or effect unless embodied in a written contract executed
        and approved pursuant to the State Fiscal Rules.

T.      Proprietary Information

        1.      Proprietary information for the purpose of this contract is
                information relating to a party's research, development, trade
                secrets, business affairs, internal operations and management
                procedures and those of its customers, clients or affiliates,
                but does not include information lawfully obtained from third
                parties, that which is in the public domain, or that which is
                developed independently.

        2.      Neither party shall use or disclose directly or indirectly
                without prior written authorization any proprietary information
                concerning the other party obtained as a result of this
                contract. Any proprietary information removed from the State's
                site by the contractor in the course of providing services under
                this contract will be accorded at least the same precautions as
                are employed by the contractor for similar information in the
                course of its own business.

U.      Discrimination Complaints

        Any person who feels that s/he has been discriminated against relating
        to the services provided under this contract has the right to file a
        complaint with the

                                 Page 27 of 33
<PAGE>   28

        Colorado Department of Human Services, the Colorado Civil Rights
        Commission, and/or the US Commission on Civil Rights.

V.      If any of the payments hereunder are from federal funds, where
        applicable, the following provisions shall apply to this contract.

        1.      Press Releases

                Pursuant to Section 511 of P.L. 101-166, when issuing
                statements, press releases, requests for proposals, bid
                solicitations and other documents describing projects or
                programs funded in whole or in part with federal funds, the
                contractor shall clearly state (i) that the activity is funded
                in whole or in part by federal funds, (ii) the percentage of the
                total costs of the program or project which will be financed
                with federal money, (iii) percentage and dollar amount of the
                total costs of the project or program that will be financed by
                non-federal sources.

        2.      Debarment Certification To the extent applicable, if any payment
                pursuant to this contract is in federal funds, the following
                provisions apply to this contract.

                a.      The contractor certifies to the best of its knowledge
                        and belief that the contractor, its principals and
                        authorized subcontractors: (i) are not presently
                        debared, suspended, proposed for debarment declared
                        ineligible, or voluntarily excluded from participation
                        in this transaction by any federal department or agency;
                        (ii) have not within a three year period preceding this
                        contract been convicted of or had a civil judgment
                        rendered against it for commission of fraud or a
                        criminal offense in connection with obtaining,
                        attempting to obtain, or performing a public (Federal,
                        State, or local) transaction or contract under a public
                        transaction; (iii) have not violated a Federal or State
                        antitrust statutes or committed embezzlement, theft,
                        forgery, bribery, falsification or destruction of
                        records, or made false statements; or received stolen
                        property; (iv) are not presently indicted for, or
                        otherwise criminally or civilly charged by a
                        governmental entity (Federal, State, or local) with
                        commission of any of the offenses enumerated in
                        sub-paragraph (iii) of this certification; and, (v) have
                        not within a three year period preceding this contract
                        had one or more public transactions (Federal, State, or
                        local) terminated for cause or default.

                        Further, the contractor shall include, without
                        modification, the following Certification Clause in the
                        contract of any subcontractor obligated to perform
                        services pursuant hereto:

                                 Page 28 of 33
<PAGE>   29

                        The prospective lower tier participant certifies, by
                        submission of this contract, that neither it nor its
                        principals is presently debared, suspended, proposed for
                        debarment, declared ineligible, or voluntarily excluded
                        from participation in this transaction by any Federal
                        Department or agency."

        b.      Where the prospective lower tier participant is unable to
                certify to any of the statements in this certification, such
                prospective participant shall attach an explanation to this
                contract.

        c.      "Lower tier participant" is defined to include the contractor
                and its principals, agents, and subcontractors who are obligated
                to perform services pursuant to the terms of this contract.

3.      Payments made to the contractor from Federal funds under this contract
        shall supplement and not supplant state or local expenditures that would
        have been made in the absence of such federal support.

4.      The contractor shall not use federal funds to satisfy federal cost
        sharing and matching requirements unless approved in writing by the
        appropriate federal agency.

5.      In accordance with the requirements of P.L. 101-166, none of the federal
        funds provided under this contract may be used to pay the salary of any
        individual at a rate in excess of $125,000 per year.

6.      Rights in Data and Copyright - Federal Reserved Rights

Except for its own internal use, the contractor shall not publish or reproduce
any data/information, in whole or part, that is recorded in any form or medium
whatsoever and that is delivered or specified to be delivered under this
contract, nor may it authorize or permit others to do so, without the written
consent of the federal government, through the State, until such time as the
federal government may have released such data/information to the public.

As authorized by 49 C.F.R. 18.34, the federal government, through the State,
reserves a royalty free, nonexclusive, and irrevocable license to reproduce,
publish or otherwise use, and to authorize the State and others to use; a) any
work developed under this contract or a resulting third party contract
irrespective of whether or not it is copyrighted; and b) any rights of copyright
to which a contractor, subrecipient, or third party contractor purchases
ownership with federal assistance.

                                 Page 29 of 33
<PAGE>   30

W.      Exhibits - Interpretation

        1.      Unless otherwise stated, all exhibits referenced herein are
                attached hereto and incorporated herein and made a part of this
                contract.

        2.      The terms of this contract shall control over any conflicting
                terms in any of its attached exhibits.

X.      Venue The parties agree that venue for any action related to performance
        of this contract shall be in the City and County of Denver, Colorado.

Y.      Vendor Offset The parties understand and agree that the State shall have
        the right to offset against payment due to the contractor hereunder, any
        debts owed by the contractor to the State or any child support payments
        owed by the contractor.

                                 Page 30 of 33
<PAGE>   31

        Colorado Contract Procedures and Management Manual - August 1997
================================================================================

D. SPECIAL PROVISIONS

--------------------------------------------------------------------------------
THESE SPECIAL PROVISIONS ARE REQUIRED BY FISCAL RULE 3-1 TO BE USED IN EVERY
STATE CONTRACT, INCLUDING GRANTS.
--------------------------------------------------------------------------------

                               SPECIAL PROVISIONS

CONTROLLER'S APPROVAL

1. This contract shall not be deemed valid until it shall have been approved by
the Controller of the State of Colorado or such assistant as he may designate.
This provision is applicable to any contract involving the payment of money by
the State.

FUND AVAILABILITY

 2. Financial obligations of the State of Colorado payable after the current
fiscal year are contingent upon funds for that purpose being appropriated,
budgeted, and otherwise made available.

BOND REQUIREMENT

 3. If this contract involves the payment of more than fifty thousand dollars
for the construction, erection, repair, maintenance, or improvement of any
building, road, bridge, viaduct, tunnel, excavation or other public work for
this State, the Contractor shall, before entering upon the performance of any
such work included in this contract, duly execute and deliver to the State
official who will sign the contract, a good and sufficient bond or other
acceptable surety to be approved by said official in a penal sum not less than
one-half of the total amount payable by the terms of this contract. Such bond
shall be duly executed by a qualified corporate surety conditioned upon the
faithful performance of the contract and in addition, shall provide that if the
Contractor or his subcontractors fail to duly pay for any labor, materials, team
hire, sustenance, provisions, provendor or other supplies used or consummed by
such Contractor or his subcontractor in performance of the work contracted to be
done or fails to pay any person who supplies rental machinery, tools, or
equipment in the prosecution of the work the surety will pay the same in an
amount not exceeding the sum specified in the bond, together with interest at
the rate of eight per cent per annum. Unless such bond is executed, delivered
and filed, no claim in favor of the Contractor arising under such contract shall
be audited, allowed or paid. A certified or cashier's check or a bank money
order payable to the Treasurer of the State of Colorado may be accepted in lieu
of a bond. This provision is in compliance with CRS 38-26-106.

INDEMNIFICATION

 4. To the extent authorized by law, the Contractor shall indemnify, save, and
hold harmless the State, its employees and agents, against any and all claims,
damages, liability and court awards including costs, expenses, and attorney
fees incurred as a result of any act or omission by the Contractor, or its
employees, agents, subcontractors, or assignees pursuant to the terms of this
contract.

DISCRIMINATION AND AFFIRMATIVE ACTION

 5. The Contractor agrees to comply with the letter and spirit of the Colorado
Antidiscrimination Act of 1957, as amended, and other applicable law respecting
discrimination and unfair employment practices (CRS 24-34-402), and as required
by Executive Order, Equal Opportunity and Affirmative Action, dated April 16,
1975. Pursuant thereto, the following provisions shall be contained in all
State contracts or subcontracts.

 During the performance of this contract, the Contractor agrees as follows:

 (a) The Contractor will not discriminate against any employee or applicant for
 employment because of race, creed, color, national origin, sex, marital
 status, religion, ancestry, mental or physical handicap, or age. The
 Contractor will take affirmative action to insure that applicants are
 employed, and that employees are treated during employment, without regard to
 the above mentioned characteristics. Such action shall include, but not be
 limited to the following: employment upgrading, demotion or transfer,
 recruitment or recruitment advertising: lay-offs or terminations; rates of pay
 or other forms of compensation; and selection for training, including
 apprenticeship. The Contractor agrees to post in conspicuous places, available
 to employees and applicants for employment, notices to be provided by the
 contracting officer setting forth provisions of this non-discrimination clause.

 (b) The Contractor will, in all solicitations or advertisements for employees
 placed by or on behalf of the Contractor, State that all qualified applicants
 will receive consideration for employment without regard to race, creed,
 color, national origin, sex, marital status, religion, ancestry, mental or
 physical handicap, or age.

                                 Page 31 of 33
<PAGE>   32
       Colorado Contract Procedures and Management Manual - August 1997
================================================================================

     (c)  The Contractor will sent to each labor union or representative of
     workers with which he has a collective bargaining agreement or other
     contract or understanding, notice to be provided by the contracting
     officer, advising the labor union or workers' representative of the
     Contractor's commitment under the Executive Order. Equal Opportunity and
     Affirmative Action, dated April 16, 1975, and rules, regulations, and
     relevant Orders of the Governor.

     (d)  The Contractor and labor unions will furnish all information and
     reports required by Executive Order, Equal Opportunity and Affirmative
     Action of April 16, 1975, and by the rules, regulations and Orders of the
     Governor, or pursuant thereto, and will permit access to his books,
     records, and accounts by the contracting agency and the office of the
     Governor or his designee for purposes of investigation to ascertain
     compliance with such rules regulations and orders.

     (e)  A labor organization will not exclude any individual otherwise
     qualified from full membership rights in such labor organization, or expel
     any such individual from membership in such labor organization or
     discriminate against any of its members in the full enjoyment work
     opportunity because of race, creed, color, sex, national origin, or
     ancestry.

     (f)  A labor organization, or the employees or members thereof will not
     aid, abet, incite, compel or coerce the doing of any act defined in this
     contract to be discriminatory or obstruct or prevent any person from
     complying with the provision of this contract or any order issued
     thereunder; or attempt, either directly or indirectly, to commit any act
     defined in this contract to be discriminatory.

     (g)  In the event of the Contractor's non-compliance with the
     non-discrimination clauses of this contract or with any of such rules,
     regulations, or orders, this contract may be canceled, terminated or
     suspended in whole or in part and the Contractor may be declared ineligible
     for further State contracts in accordance with procedures, authorized in
     Executive Order, Equal Opportunity and Affirmative Action of April 16, 1975
     and the rules, regulations, or orders promulgated in accordance therewith,
     and such other sanctions as may be imposed and remedies as may be invoked
     as provided in Executive Orders, Equal Opportunity and Affirmative Action
     of April 16, 1975, or by rules, regulations, or orders promulgated in
     accordance therewith, or as otherwise provided by law.

     (h)  The Contractor will include the provisions of paragraphs (a) through
     (h) in every subcontract and subcontractor purchase order unless exempted
     by rules, regulations, or orders issued pursuant to Executive Order,
     Equal Opportunity and Affirmative Action of April 16, 1975, so that such
     provisions will be binding upon each subcontractor or vendor. The
     Contractor will take such action with respect to any sub-contracting or
     purchase order as the contracting agency may direct, as a means of
     enforcing such provisions, including sanctions for non-compliance;
     provided, however, that in the event the Contractor becomes involved in,
     or is threatened with, litigation, with the subcontractor or vendor as a
     result of such direction by the contracting agency, the Contractor may
     request the State of Colorado to enter into such litigation to protect the
     interest of the State of Colorado.

COLORADO LABOR PREFERENCE

     6a.  Provisions of CRS 8-17-101 & 102 for preference of Colorado labor are
applicable to this contract if public works within the State are undertaken
hereunder and are financed in whole or in part be State funds.

     b.   When a construction contract for a public project is to be awarded to
a bidder, a resident bidder shall be allowed a preference against a
non-resident bidder from a State or foreign country equal to the preference
given or required by the State or foreign country in which the non-resident
bidder is a resident. If it is determined by the officer responsible for
awarding the bid that compliance with this subsection .06 may cause denial of
federal funds which would otherwise be available or would otherwise be
inconsistent with requirements of Federal law, this subsection shall be
suspended, but only to the extent necessary to prevent denial of the moneys or
to eliminate the inconsistency with Federal requirements (CRS 8-19-101 and 102).

GENERAL

     7.   The laws of the State of Colorado and rules and regulations issued
pursuant thereto shall be applied in the interpretation, execution, and
enforcement of this contract. Any provision of this contract whether or not
incorporated herein by reference which provides for arbitration by any
extra-judicial body or person or which is otherwise in conflict with said laws,
rules, and regulations shall be considered null and void. Nothing contained in
any provision incorporated herein by reference which purports to negate this or
any other special provision in whole or in part shall be valid or enforceable or
available in any action at law whether by way of complaint, defense, or
otherwise. Any provision rendered null and void by the operation of this
provision will not invalidate the remainder of this contract to the extent that
the contract is capable of execution.

     8.   At all times during the performance of this contract, the Contractor
shall strictly adhere to all applicable federal and State laws, rules, and
regulations that have been or may hereafter be established.

     9.   Pursuant to CRS 24-30-202.4 (as amended), the State Controller may
withhold debts owed to State agencies under the vendor offset intercept system
for: (a) unpaid child support debt or child support arrearages; (b) unpaid
balance of tax, accrued interest, or other charges specified in Article 22,
Title 39, CRS; (c) unpaid loans due to the Student Loan Division of the
Department of Higher Education; (d) owed amounts required to be paid to the
Unemployment Compensation Fund; and (e) other unpaid debts owing to the State
or any agency thereof, the amount of which is found to be owing as a result of
final agency determination or reduced to judgment as certified by the
controller.

                                 Page 32 of 33
<PAGE>   33
       Colorado Contract Procedures and Management Manual -- August 1997
--------------------------------------------------------------------------------

     10.  The signatories aver that they are familiar with CRS 18-8301, et.
seq., (Bribery and Corrupt Influences) and CRS 18-8-401, et. seq., (Abuse of
Public Office), and that no violation of such provisions is present.

     11.  The signatories aver that to their knowledge, no State employee has
any personal or beneficial interest whatsoever in the service or property
described herein:

IN WITNESS WHEREOF, the parties hereto have executed this Contract on the day
first above written.

Contractor: [ILLEGIBLE]                   STATE OF COLORADO

(Full Legal Name)  RICK E. BRAUEN         ROY ROMER, GOVERNOR

--------------------------------------
                                          [SIGNATURE ILLEGIBLE]
--------------------------------------    --------------------------------------
                                          EXECUTIVE DIRECTOR
Position (Title) Central Area Director
                ----------------------    FOR
                 91-14-7147
--------------------------------------    DEPARTMENT OF Human Services
  Social Security Number or Federal                    -------------------------
       Identification Number

If Corporation:)                          APPROVALS:
Attest (Seal)                             STATE CONTROLLER
                                          ARTHUR L. BARNHART
By  RICK E. BRAUEN                        By: [SIGNATURE ILLEGIBLE]
  ------------------------------------       -----------------------------------
    Corporate Secretary, or Equivalent,
    Town/City/Country Clerk

APPROVALS:

ATTORNEY GENERAL                          STATE CONTROLLER

By  C. RICHARD PENNINGTON                 By
  ------------------------------------      ------------------------------------
    C. Richard Pennington
    Assistant Attorney General
    State Services Section

                     Page 33 which is the last of 33 pages
<PAGE>   34
                                  CFMS PROJECT

                   EXHIBIT C - DELIVERABLE SCHEDULE AND COSTS

<TABLE>
<CAPTION>
                                                         FIXED PRICE
                    DELIVERABLE                        PAYMENT AMOUNT      PLANNED DELIVERY MONTH
=================================================================================================
<S>       <C>                                          <C>                 <C>
          Task 1
          ------
                                                                           Per month *
          Planning and Project Management Support           *              *
          Quarterly Status Reports*
          Monthly Status Reports
          Workplan updates
          Steering Committee
                                                       ------------------------------------------
          Project Management                               *
                                                       ------------------------------------------
          Task 2
          ------
2.01      Consultant Familiarization with CFMS             *                          *
2.02      Project Site & Initial Environment               *                          *
2.03      Familiarize CDHS Staff with COTS                 *                          *
2.04      Develop Implementation Strategies                *                          *
2.06      Project Initiation Meetings                      *                          *
                                                       ------------------------------------------
          Project Initiation                               *
                                                       ------------------------------------------

          Task 3
          ------
3.01      Document Baseline Requirements                    *                          *
3.02      Define AR Requirements                            *                          *
3.03      Design system functionality for CFMS              *                          *
3.04      Develop Software Architecture & Integration P     *                          *
3.05      Set Up Conference Room Pilot System               *                          *
3.06      Identify Application Gaps in COTS                 *                          *
3.07      Test GLDI Functions                               *                          *
3.08      Devise workarounds and customizations             *                          *
3.09      Design interfaces with existing legacy system     *                          *
3.11      Design Interfaces with New Systems                *                          *
3.12      Prepare for Development                           *                          *
3.13      Finalize detailed design of customizations        *                          *
3.15      Develop Security Strategy                         *                          *
3.16      Develop and implement change management           *                          *
3.17      Phase Management & Completion                     *                          *
                                                       ------------------------------------------
          System Analysis & Design                          *
                                                       ------------------------------------------
          Task 4
          ------
4.01      Prepare for System Testing                        *                          *
4.02      Develop GLDI Processes                            *                          *
4.03      Develop Reports                                   *                          *
4.04      Develop Calculations                              *                          *
4.05      Develop & Unit Test Custom Data Store and         *                          *
4.06      Develop Interface Software                        *                          *
4.07      Conduct Preliminary Capacity Analysis             *                          *
4.08      System Acceptance Test                            *                          *
4.09      Conduct Final Capacity Analysis                   *                          *
4.10      Finalize Documentation                            *                          *
</TABLE>

* Portions of this agreement have been omitted pursuant to a request for
  confidential treatment pursuant to SEC Rule 24b-2, to be filed separately with
  the SEC no later than April 10, 2001.
<PAGE>   35
                                  CFMS PROJECT

                  EXHIBIT C -- DELIVERABLE SCHEDULE AND COSTS

<TABLE>
<CAPTION>
                                            FIXED PRICE
             DELIVERABLE                   PAYMENT AMOUNT       PLANNED DELIVERY MONTH
--------------------------------------------------------------------------------------
<S>       <C>                              <C>                  <C>
4.11      Disaster Recovery Plan             *                             *
4.12      Phase Management & Completion      *                             *
                                           -----------
          System Development & Testing       *
                                           -----------

          Task 5
          ------
5.01      Environment Planning               *                             *
5.02      Acquire Hardware                   *                             *
5.03      Configure Production Environment   *                             *
5.04      Configure production applications  *                             *
5.05      Phase Management & Completion      *                             *
                                           -----------
          Acquisition and Installation
            of Hardware                     *
                                           -----------

          Task 6
          ------
6.01      Initial Production Period          *                             *
6.02      Support of Network                 *                             *
6.03      Final System Acceptance            *                Monthly payments during
                                                              acceptance time
                                                              *
6.04      Finalize & turnover system
            documentation                    *                             *
6.05      Phase Management & Completion      *                             *
                                           -----------
          Initial Production Operation       *
                                           -----------

          Task 7
          ------
7.01      Plan User Training                  *                             *
7.02      Create Training Environment &
            Materials                         *                             *
7.03      Train CDHS & Other State
            Personnel                         *                             *
7.04      Phase Management & Completion       *                             *
                                           -----------
          User Support                        *
          and Technical Training           -----------

          Task 8
          ------
8.01      Warrant CFMS                         *                             *
8.03      Turnover Plan                        *                             *
8.04      Provide ongoing training             *                             *
8.06      Process contract deliverables        *                             *
8.08      Turnover system                      *                             *
                                           -----------
          Mandatory Post Implementation
            Support                            *
                                           -----------

          Task 9
          ------

9.01      Mandatory Post Implementation                      Per month *
            Support                            *                             *
                                           -----------
          Post Implementation Support          *
                                           -----------
</TABLE>

# Deliverables subject to 20% holdback.
* Deliverables subject to late charge.

* Portions of this agreement have been omitted pursuant to a request for
  confidential treatment pursuant to SEC Rule 24b-2, to be filed separately with
  the SEC no later than April 10, 2001.
<PAGE>   36
                                  CFMS PROJECT

                  EXHIBIT C -- DELIVERABLE SCHEDULE AND COSTS

<TABLE>
<CAPTION>
                                            FIXED PRICE
             DELIVERABLE                   PAYMENT AMOUNT          PLANNED DELIVERY MONTH
-----------------------------------------------------------------------------------------
<S>                                        <C>                  <C>
          Hardware Costs/Facilities
          HP Hardware Purchase Production      *                              *
          HP Hardware Purchase Development     *                              *
          HP Hardware Purchase
            Application Server                 *                              *
          HP Configuration                     *                              *
          HP Open View/ITO (Note 1)            *                              *
          Prepaid Support                      *                              *
                                             ------------
                                               *
          Network Costs                        *                              *
          Oracle Software & Tutor              *                              *
          Noetix Views                         *                              *
          Ring Master                          *                              *
                                             ------------
                                               *
          Oracle Software Support              *                              *
          Oracle Tutor                         *                              *
          Software Maintenance                 *                              *
                                             ------------
                                               *

                                                           Monthly facility cost *
          Facilities/Equipment                *                      *
                                                            Monthly facility cost *
          Facilities/Equipment                *                      *
                                                           Monthly Hardware Costs *
          Hardware Costs                      *                      *
          Training                            *                                   *
                                             ------------
          Hardware                           *
                                             ------------

                                             ------------
          Fixed Price Total                  *
                                             ------------
</TABLE>

# Deliverables subject to 20% holdback.
* Deliverables subject to late charge.

Note 1: Facilitated by CDHS IS Department
Note 2: All AR customization, development, testing and production setups,
documentation, training and training materials, and production support for the
AR module have been eliminated.

*Portions of this agreement have been omitted pursuant to a request for
 confidential treatment pursuant to SEC Rule 24b-2, to be filed separately
 with the SEC no later than April 10, 2001.

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