Document:

<PAGE>   1
                                                                   Exhibit 10.17

                              BUSINESS CENTER LEASE
                                      (NNN)

1.       BASIC LEASE TERMS

         a.       DATE OF LEASE: July 18, 1996

         b.       TENANT: Quality Care Solutions, Inc., an Arizona Corporation
                  Trade Name: Same
                  Address (Leased Premises):  5030 East Sunrise Drive, Phoenix,
                  AZ  85044
                  Building/Unit 12/ALL
                  Address (For Notices)  Same as Leased Premises

         c.       LANDLORD: Principal Mutual Life Insurance Company and Petula
                  Associates, Ltd., both Iowa Corporations
                  Address (For Notices): 4620 North 16th Street, Suite E-113,
                  Phoenix, Arizona 85016 or to such other place as Landlord may
                  from time to time designate by notice to Tenant.

         d.       TENANT'S USE OF PREMISES: General office, development,
                  administration and sales of computer software

         e.       PREMISES AREA: 22,072 Rentable Square Feet

         f.       PROJECT AREA: 128,622 Square Feet

         g.       TERM OF LEASE: Commencement:         September 1, 1996
                                 Expiration:           August 31, 2001
                                 Number of Months:     Sixty (60)

         h.       BASE MONTHLY RENT: $13,243.20 plus applicable sales taxes

         i.       RENT ADJUSTMENT (Initial One):

                  (1)      [OMITTED FROM ORIGINAL]

                  (2)      Step Increase. If this provision is initialed, the
                           step adjustment provisions of Section 4.b(2) apply as
                           follows:

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<TABLE>
<CAPTION>
                           Effective Date of
                             Rent Increase                    New Base Monthly Rent
                             -------------                    ---------------------

                           <S>                                <C>
                           September 1, 1996                        $13,243.20
                           January 1, 1997                          $14,346.80
                           May 1, 1997                              $15,450.40
                           September 1, 1999                        $16,554.00
                           September 1, 2000                        $17,657.60
</TABLE>

         j.       PREPAID RENT*:                     $13,660.36

         k.       SECURITY DEPOSIT*:                 $18,213.81

                  NON-REFUNDABLE CLEANING FEE*:      $ 1,366.04
                      *includes 3.15% sales tax

         l.       BROKER(S):
                  Lee & Associates (Steve J. Farrell)

         m.       GUARANTOR(S):
                  None

         n.       ADDITIONAL SECTIONS
                  Additional Sections of this lease numbered 29 through 32 are
                  attached hereto and made a part hereof. If none, so state in
                  the following space

         o.       ADDITIONAL EXHIBITS
                  Additional exhibits lettered D through      -      are
                  attached hereto and made a part hereof. If none, so state in
                  the following space - none

2.       PREMISES. Landlord leases to Tenant the premises described in section 1
         and in Exhibit A (the "Premises"), located in this project described on
         Exhibit B (the "Project"). By entry on the Premises, Tenant
         acknowledges that it has examined the Premises and accepts the Premises
         in their present condition, subject to any additional work Landlord has
         agreed to do. Tenant represents and warrants that it agrees with the
         square footage specified for the Premises in Section 1 and will not
         hereafter challenge such determination and agreement.

3.       TERM. The term of this lease is for the period set forth in Section 1,
         commencing on the date in Section 1. If Landlord, for any reason,
         cannot deliver possession of the Premises to Tenant upon commencement
         of the term, this Lease shall not be void or voidable, nor shall
         Landlord be liable to Tenant for any loss or damage resulting from such
         delay. In that event, however, there shall be a rent abatement covering
         the period between the commencement of the term and the time when
         Landlord delivers possession to Tenant,

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         and all other terms and conditions of this Lease shall remain in full
         force and effect, provided, however, that if Landlord cannot deliver
         possession of the Premises to Tenant, this Lease shall be void. If a
         delay in possession is caused by Tenant's failure to perform any
         obligation in accordance with this Lease, the term shall commence as
         set forth in Section 1 and there shall be no reduction of rent between
         the commencement of the term and the time Tenant takes possession.

4.       RENT

         a.       BASE RENT. Tenant shall pay Landlord monthly base rent in the
                  initial amount in Section 1 which shall be payable monthly in
                  advance on the first day of each and every calendar month
                  ("Base Monthly Rent") provided, however, the first month's
                  rent is due and payable upon execution of this Lease. If the
                  term of this Lease contains any rental abatement period,
                  Tenant hereby agrees that if Tenant breaches the Lease and/or
                  abandons the Premises before the end of the Lease term, or if
                  Tenant's right to possession is terminated by Landlord because
                  of Tenant's breach of the Lease, Landlord shall, at its
                  option, (1) void the rental abatement period; and (2) recover
                  from tenant, in addition to any damages due Landlord under the
                  terms and conditions of the Lease, rent prorated for the
                  entirety of the rental abatement period at a rental rate
                  equivalent to two (2) times the Base Monthly rent.

                  For purposes of Section 467 of the Internal Revenue Code, the
                  parties to this Lease hereby agree to allocate the stated
                  rents, provided herein, to the periods which correspond to the
                  actual rent payment as provided under the terms and conditions
                  of this agreement.

         b.       RENT ADJUSTMENT.

                  (1)      COST OF LIVING ADJUSTMENT. If Section 1.i(1) is
                           initialed, the Base Monthly Rent shall be subject to
                           increase on each annual anniversary of the
                           commencement of the terms of this Lease. The base for
                           computing the increase is the Consumer Price Index
                           All Urban Consumers U.S. City Average (1982-84=100),
                           published by the United States Department of Labor,
                           Bureau of Labor Statistics ("Index"), which is in
                           effect on the ninetieth (90th) day preceding the date
                           of the commencement of the term ("Beginning Index").
                           The index published and in effect on the ninetieth
                           (90th) day preceding each anniversary of the
                           commencement of the term of this Lease ("Extension
                           Index") is to be used in determining the amount of
                           the increase from one year to the next. Beginning
                           with the rent due on and after the first anniversary
                           of the Commencement Date, the Base Monthly Rent due
                           with respect to the month immediately preceding such
                           anniversary date by a fraction. On the first
                           anniversary of the Commencement Date, the numerator
                           of the fraction will be the Extension Index and the
                           denominator will be the Beginning Index. On the
                           second

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                           and any subsequent anniversaries of the Commencement
                           Date, the numerator of the fraction will be the
                           current Extension Index and the denominator will be
                           the Extension Index used to calculate the previous
                           year's rental increase. If there is a decline from
                           one lease year to the next in the Extension Index,
                           the monthly rent due during the subsequent lease year
                           shall equal the monthly rent due during the then
                           present lease year.

                           If the Index is changed so that the base year differs
                           from that in effect when the term commences, the
                           Index shall be converted in accordance with the
                           conversion factor published by the United States
                           Department of Labor, Bureau of Labor Statistics. If
                           the Index is discontinued or revised during the term,
                           such other government index or computation with which
                           it is replaced shall be used in order to obtain
                           substantially the same result as would be obtained if
                           the Index had not been discontinued or revised.

                  (2)      STEP INCREASE. If Section 1.i.(2) is initialed, Base
                           Monthly Rent shall be increased periodically to the
                           amounts and at the times set forth in Section
                           1.i.(2).

         c.       EXPENSES. The purpose of this Section 4.c is to ensure that
                  Tenant bears a share of all Expenses related to the use,
                  maintenance, ownership, repair or replacement and insurance of
                  the Project. Accordingly, beginning on the date Tenant takes
                  possession of the Premises, Tenant shall pay to Landlord
                  Tenant's Share (as defined below) of Expenses related to the
                  Project.

                  (1)      EXPENSES DEFINED. The term "Expenses" shall mean all
                           costs and expenses of the ownership, operation,
                           maintenance, repair or replacement, and insurance of
                           the Project, including without limitation, the
                           following costs:

                           (a)      All supplies, materials, labor, equipment,
                                    and utilities used in or related to the
                                    operation and maintenance of the Project;

                           (b)      All maintenance, management, janitorial,
                                    legal, accounting, insurance, and service
                                    agreement costs related to the Project;

                           (c)      All maintenance, replacement and repair
                                    costs relating to the areas within or around
                                    the Project, including, without limitation,
                                    air conditioning systems, sidewalks,
                                    landscaping, service areas, driveways,
                                    parking areas (including resurfacing and
                                    restriping parking areas), walkways,
                                    building exteriors (including painting),
                                    signs and directories, repairing and
                                    replacing roofs, walls, etc. These costs may
                                    be included either based on actual
                                    expenditures or the use of an accounting
                                    reserve based on past cost experience for
                                    the Project.

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                           (d)      Amortization (along with reasonable
                                    financing charges) of capital improvements
                                    made to the Project which may be required by
                                    any government authority or which will
                                    improve the operating efficiency of the
                                    Project (provided, however, that the amount
                                    of such amortization for improvements not
                                    mandated by government authority shall not
                                    exceed in any year the amount of costs
                                    reasonably determined by Landlord in its
                                    sole discretion to have been saved by the
                                    expenditure either through the reduction or
                                    minimization of increases which would have
                                    otherwise occurred).

                           (e)      Real Property Taxes including all taxes,
                                    assessments (general and special) and other
                                    impositions or charges which may be taxed,
                                    charged, levied, assessed or imposed upon
                                    all or any portion of or in relation to the
                                    Project or any portion thereof, any
                                    leasehold estate in the Premises or measured
                                    by rent from the Premises, including any
                                    increase caused by the transfer, sale or
                                    encumbrance of the Project or any portion
                                    thereof. "Real Property Taxes" shall also
                                    include any form of assessment, levy,
                                    penalty, charge or tax (other than estate,
                                    inheritance, net income, or franchise taxes)
                                    imposed by any authority having a direct or
                                    indirect power to tax or charge, including,
                                    without limitation, any city, county, state
                                    federal or any improvement or other
                                    district, whether such tax is (1) determined
                                    by the value of the Project or the rent or
                                    other sums payable under this Lease; (2)
                                    upon or with respect to any legal or
                                    equitable interest of Landlord in the
                                    Project or any part thereof; (3) upon this
                                    transaction or any document to which Tenant
                                    is a party creating a transfer in any
                                    interest in the Project; (4) in lieu of or
                                    as a direct substitute in whole or in part
                                    of or in addition to any real property taxes
                                    on the Project; (5) based on any parking
                                    spaces or parking facilities provided in the
                                    Project; or (6) in consideration for
                                    services, such as police protection, fire
                                    protection, street, sidewalk and roadway
                                    maintenance, refuse removal or other
                                    services that may be provided by any
                                    governmental or quasi-governmental agency
                                    from time to time which were formerly
                                    provided without charge or with less charge
                                    to property owners or occupants.

                           (f)      All costs and expenses of improvements,
                                    alterations, modifications, additions and
                                    changes to the Project, or any portion
                                    thereof, necessary to bring the Project into
                                    full compliance with all federal, state or
                                    local statutes, rules, regulations or
                                    ordinances regarding handicapped
                                    accessibility and use, now in existence or
                                    arising in the future, including but not
                                    limited to the provisions of the Americans
                                    With Disabilities Act, 42 U.S.C.
                                    Sections 12101, et. seq., as may be
                                    amended from time to time.

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                  (2)      ANNUAL ESTIMATE OF EXPENSES; TENANT'S SHARE. When
                           Tenant takes possession of the Premises, Landlord
                           shall estimate Tenant's share of Expenses for the
                           remainder of the calendar year, and at the
                           commencement of each calendar year thereafter,
                           Landlord shall estimate Tenant's Share of Expenses
                           for the coming year by multiplying the estimated per
                           square foot annual Project Expenses by the Premises
                           area.

                  (3)      MONTHLY PAYMENT OF EXPENSES. Tenant shall pay to
                           Landlord, monthly in advance, as additional rent,
                           one-twelfth (1/12) of the Annual Estimate of Expenses
                           beginning on the date Tenant takes possession of the
                           Premises. As soon as practical following each
                           calendar year, Landlord shall prepare an accounting
                           of actual Expenses incurred during the prior calendar
                           year and such accounting shall reflect Tenant's Share
                           of Expenses. If the additional rent paid by Tenant
                           under this Section 4.c.3 during the preceding
                           calendar year was less than the actual amount of
                           Tenant's Share of Expenses, Landlord shall so notify
                           Tenant and Tenant shall pay such amount to Landlord
                           within 30 days of receipt of such notice. Such amount
                           shall be deemed to have accrued during the prior
                           calendar year and shall be due and payable from
                           Tenant even though the term of this Lease has expired
                           or this lease has been terminated prior to Tenant's
                           receipt of this notice. Tenant shall have thirty (30)
                           days from receipt of such notice to contest the
                           amount due; failure to so notify Landlord shall
                           represent final determination of Tenant's Share of
                           expenses. If Tenant's payments were greater than the
                           actual amount, then such overpayment shall be
                           credited by Landlord to all present rent due under
                           this Section 4.c.3.

         d.       RENT WITHOUT OFFSET AND LATE CHARGE. All rent shall be paid by
                  Tenant to Landlord monthly in advance on the first day of
                  every calendar month, at the address shown in Section 1, or
                  such other place as landlord may designate in writing from
                  time to time. All rent shall be paid without prior demand or
                  notice and without any deduction or offset whatsoever. All
                  rent shall be paid in lawful currency of the United States of
                  America. Proration of rent due for any partial month shall be
                  calculated by dividing the number of days in the month for
                  which rent is due by the actual number of days in that month
                  and multiplying by the applicable monthly rate. Tenant
                  acknowledges that late payment by Tenant to Landlord of any
                  rent or other sums due under this Lease will cause Landlord to
                  incur costs not contemplated by this Lease, the exact amount
                  of such cost being extremely difficult and impracticable to
                  ascertain. Such costs include, without limitation, processing
                  and accounting charges and late charges that may be imposed on
                  Landlord by the terms of any encumbrance or note secured by
                  the Premises. Therefore, if any rent or other sum due from
                  Tenant is not received when due, Tenant shall pay to Landlord
                  an additional sum equal to 10% of such overdue payment.
                  Landlord and Tenant hereby agree that such late charge
                  represents a fair and reasonable estimate of the costs that
                  Landlord will incur by

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                  reason of any such late payment and that the late charge is in
                  addition to any and all remedies available to the Landlord and
                  that the assessment and/or collection of the late charge shall
                  not be deemed a waiver of any other default. Additionally, all
                  such delinquent rent or other sums, plus this late charge,
                  shall bear interest at the rate of 18 percent per annum. If
                  the interest rate specified in this Lease is higher than the
                  rate permitted by law, the interest rate is hereby decreased
                  to the maximum legal interest rate permitted by law. Any
                  payments of any kind returned for insufficient funds will be
                  subject to an additional handling charge of $25.00, and
                  thereafter, Landlord may require Tenant to pay all future
                  payments of rent or other sums due by money order or cashier's
                  check.

5.       PREPAID RENT. Upon the execution of this Lease, Tenant shall pay to
         landlord the prepaid rent set forth in Section 1, and if Tenant is not
         in default of any provisions of this Lease, such prepaid rent shall be
         applied toward the rent due for the first month of the term. Landlord's
         obligations with respect to the prepaid rent are those of a debtor and
         not of a trustee, and Landlord can commingle the prepaid rent with
         Landlord's general funds. Landlord shall not be required to pay Tenant
         interest on the prepaid rent. Landlord shall be entitled to immediately
         endorse and cash Tenant's prepaid rent; however, such endorsement and
         cashing shall not constitute Landlord's acceptance of this Lease. In
         the event Landlord does not accept this Lease, Landlord shall return
         said prepaid rent.

6.       DEPOSIT. Upon execution of this Lease, Tenant shall deposit a security
         deposit and a cleaning fee as set forth in Section 1 with Landlord. If
         Tenant is in default, Landlord can use the security deposit or any
         portion of it to cure the default or to compensate Landlord for any
         damages sustained by Landlord resulting from Tenant's default. Upon
         demand, Tenant shall immediately pay to Landlord a sum equal to the
         portion of the security deposit expended or applied by Landlord to
         restore the security deposit to its full amount. In no event will
         Tenant have the right to apply any part of the security deposit to any
         rent or other sums due under this Lease. If Tenant is not in default at
         the expiration or termination of this Lease, Landlord shall return the
         security deposit to Tenant, and retain the cleaning fee, which shall
         equal 10% of the first month's rent or $125, whichever is greater.
         Landlord's obligations with respect to the deposit are those of a
         debtor and not of a trustee, and Landlord can commingle the security
         deposit with Landlord's general funds. Landlord shall not be required
         to pay Tenant interest on the deposit. Landlord shall be entitled to
         immediately endorse and cash Tenant's prepaid deposit, however, such
         endorsement and cashing shall not constitute Landlord's acceptance of
         this Lease. In the event Landlord does not accept this Lease, Landlord
         shall return said prepaid deposit. Each time the Base Rent is
         increased, Tenant shall deposit additional funds with Landlord
         sufficient to increase the security to an amount which bears the same
         relationship to the adjusted Base Rent as the initial security deposit
         bore to the initial Base Rent.

7.       USE OF PREMISES AND PROJECT FACILITIES. Tenant shall use the Premises
         solely for the purposes set forth in Section 1 and for no other purpose
         without obtaining the prior written consent of Landlord. Tenant
         acknowledges that neither Landlord nor any agent of

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         Landlord has made any representation or warranty with respect to the
         Premises or with respect to the suitability of the Premises or the
         Project for the conduct of Tenant's business, nor has Landlord agreed
         to undertake any modification, alteration or improvement to the
         Premises or the Project, except as provided in writing in this Lease.
         Tenant acknowledges that Landlord may from time to time, at its sole
         discretion, make such modifications, alterations, deletions or
         improvements to the Project as Landlord may deem necessary or
         desirable, without compensation or notice to Tenant. Tenant shall
         promptly comply with all laws, ordinances, orders and regulations
         affecting the Premises and the Project, including, without limitation,
         any rules and regulations that may be attached to this Lease and to any
         reasonable modifications to these rules and regulations as Landlord may
         adopt from time to time. Tenant shall not do or permit anything to be
         done in or about the Premises or bring or keep anything in the Premises
         that will in any way increase the premiums paid by Landlord on its
         insurance related to the Project or which will in any way increase the
         premiums for fire or casualty insurance carried by other tenants in the
         Project. Tenant will not perform any act or carry on any practices that
         may injure the Premises or the Project; that may be a nuisance or
         menace to other tenants in the Project; or that shall in any way
         interfere with the quiet enjoyment of such other tenants. Tenant shall
         not use the Premises for sleeping, washing clothes, cooking or the
         preparation, manufacture or mixing of anything that might emit any
         objectionable odor, noises, vibrations or lights onto such other
         tenants. If sound insulation is required to muffle noise produced by
         Tenant on the Premises, Tenant at its own cost shall provide all
         necessary insulation. Tenant shall not do anything on the premises
         which will overload any existing parking or service to the Premises.
         Pets and/or animals of any type shall not be kept on the Premises.

8.       EMISSION, USE AND DISPOSAL OF WASTE AND TOXIC MATERIALS.

         a.       EMISSIONS. Tenant shall not:

                  (1)      Permit any vehicle on the premises to emit exhaust
                           which is in violation of any governmental law, rule,
                           regulation or requirement;

                  (2)      Produce, or permit to be produced, any intense glare,
                           light or heat except within an enclosed or screened
                           area and then only in such manner that the glare,
                           light or heat shall not be discernible from outside
                           the Premises;

                  (3)      Create, or permit to be created, any sound pressure
                           level which will interfere with the quiet enjoyment
                           of any real property outside the Premises, or which
                           will create a nuisance or violate any governmental
                           law, rule, regulation or requirement;

                  (4)      Create, or permit to be created, any ground vibration
                           that is discernible outside the Premises;

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                  (5)      Transmit, receive or permit to be transmitted or
                           received, any electromagnetic, microwave or other
                           radiation which is harmful or hazardous to any person
                           or property in, or about the Premises, or anywhere
                           else.

         b.       DISPOSAL OF WASTE

                  (1)      Non-Toxic Refuse Disposal. Tenant shall not keep any
                           non-toxic trash, garbage waste or other refuse on the
                           Premises except in sanitary containers and shall
                           regularly and frequently remove same from the
                           Premises. Tenant shall keep all incinerators,
                           containers or other equipment used for storage or
                           disposal of such materials in a clean and sanitary
                           condition.

                  (2)      Sewage Disposal. Tenant shall properly dispose of all
                           sanitary sewage and shall not use the sewage disposal
                           system (a) for the disposal of anything except
                           sanitary sewage or (b) excess of the lesser amount
                           (i) reasonably contemplated by the uses permitted
                           under this Lease or (ii) permitted by any
                           governmental entity. Tenant shall keep the sewage
                           disposal system free of all obstructions and in good
                           operating condition.

                  (3)      Disposal of Other Non-Toxic Waste. Tenant shall
                           properly dispose of all other waste or other matter
                           delivered to, stored upon, located upon or within,
                           used on, or removed from, the Premises in such a
                           manner that it does not, and will not, adversely
                           affect the (a) health or safety of persons, wherever
                           located, whether on the Premises or elsewhere (b)
                           condition, use or enjoyment of the Premises or any
                           other real or personal property, wherever located,
                           whether on the Premises or anywhere else, or (c)
                           Premises or any of the improvements thereto or
                           thereon including buildings, foundations, pipes,
                           utility lines, landscaping or parking areas.

         c.       INFORMATION. If Landlord consents to Tenant's storage or use
                  of toxic materials on the Premises as set forth in Paragraph
                  8(d), Tenant shall provide Landlord with any and all
                  information regarding such hazardous or toxic materials
                  including copies of all filings and reports to governmental
                  entities at the time they are originated, and any other
                  information requested by Landlord. In the event of any
                  accident, spill or other incident involving hazardous or toxic
                  matter, Tenant shall immediately report the same to Landlord
                  and supply Landlord with all information and reports with
                  respect to the same. All information described herein shall be
                  provided to Landlord regardless of any claim by Tenant that it
                  is confidential or privileged.

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         d.       TOXIC MATERIALS.

                  (1)      DEFINITIONS.

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

                           (b)      As used herein, the term "Environmental
                                    Law(s)" means any one or all of the
                                    following: the Comprehensive Environmental
                                    Response, Compensation and Liability Act (42
                                    U.S.C.Sections 9906 et. seq.), the
                                    Resource Conservation and Recovery Act (42
                                    U.S.C.Sections 6901 et. seq.), the Safe
                                    Drinking Water Act (42
                                    U.S.C.Sections 300f et. seq.), the
                                    Clean Water Act (33 U.S.C.Sections
                                    1251 et. seq.), the Clean Air Act (42
                                    U.S.C.Sections 7401 et. seq.), the
                                    Toxic Substances Control Act (15
                                    U.S.C.Sections 136 et. seq.), the Solid
                                    Waste Disposal Act (42 U.S.C.Sections
                                    3251 et. seq.), and the Arizona
                                    Environmental Quality Act, including
                                    provisions on water quality control
                                    (A.R.S.Sections 49-201 et. seq.), air
                                    quality (A.R.S.Sections 49-401 et.
                                    seq.), solid waste management
                                    (A.R.S.Sections 49-701 et. seq.),
                                    hazardous waste disposal
                                    (A.R.S.Sections 49-901 et. seq.), and
                                    underground storage tank regulation
                                    (A.R.S.Sections 49-1001 et. seq.) and
                                    regulations thereunder any other laws and
                                    regulations now in effect or hereinafter
                                    enacted that deal with the regulation or
                                    protection of the environment, including the
                                    soil, subsurface soil, ambient air, ground
                                    water, surface water, and land use.

                  (2)      Tenant shall not cause or permit any Hazardous
                           Material to be generated, manufactured, produced,
                           brought upon, used, stored, treated, released,
                           discharged, disposed of or transported in, on or
                           about the Premises by

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                           Tenant, its agents, employees, contractors,
                           assignees, sublessees or invitees, without the prior
                           written consent of Landlord. Landlord shall be
                           entitled to take into account such factors or facts
                           as Landlord may reasonably determine to be relevant
                           in determining whether to consent to Tenant's
                           proposed activity with respect to Hazardous
                           Materials, and Landlord may attach conditions to any
                           such consent if such conditions are reasonably
                           necessary to protect Landlord's interests in avoiding
                           potential liability to Landlord or damage to
                           Landlord's property arising from Tenant's activities
                           with respect to Hazardous Materials. In no event
                           shall Landlord be required to consent to the
                           installation or use of any storage tanks on the
                           Property.

                  (3)      Tenant shall keep and maintain the Premises in
                           compliance with, and shall not cause or permit the
                           Premises to be in violation of any Environmental
                           Laws. All Tenant's activities at the Premises shall
                           be in accordance with all Environmental Laws.
                           Additionally, Tenant shall obtain any and all
                           necessary permits. Tenant's obligations and
                           liabilities under this Paragraph 8 shall continue so
                           long as Landlord bears any liability or
                           responsibility under the Environmental Laws for any
                           action that occurs on the Premises during the term of
                           this Lease.

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

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

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

                           (c)      Any permits and permit applications; and

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

                  (5)      Tenant shall protect, indemnify, and hold harmless
                           Landlord and its directors, offices, partners,
                           employees, agents, lenders, and ground lessees, if
                           any, and their respective successors and assigns for,
                           from, and against any and all losses, damages,
                           claims, costs, expenses, penalties and liabilities of
                           any kind (including, without limitation, the cost of
                           any investigation, remediation and cleanup, and
                           attorney's fees) which, in

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<PAGE>   12
                           Landlord's opinion, are attributable to Tenant's
                           violation of this Paragraph. This indemnity shall
                           survive the termination of this Lease.

                  (6)      In the event that any investigation, site monitoring,
                           containment, cleanup, removal, restoration, or other
                           remedial work of any kind or nature (the "Remedial
                           Work") is necessary due to or in connection with
                           Tenant's use or occupancy of the Premises, Tenant
                           shall, within thirty (30) days after written demand
                           for performance thereof by Landlord (or such shorter
                           period of time as may be required under any
                           applicable Environmental Law, order or agreement),
                           commence to perform, or cause to be commenced and
                           performed, and thereafter diligently prosecuted to
                           completion, all such Remedial Work. All Remedial Work
                           shall be performed by one or more contractors,
                           approved in advance in writing by Landlord. All costs
                           and expenses of such Remedial Work shall be paid by
                           Tenant including, without limitations, the charges of
                           such contractor(s), and the reasonable fees and costs
                           of the attorneys for Landlord incurred in connection
                           with monitoring or review of such Remedial Work.

                  (7)      Landlord may elect, at Landlord's sole discretion, to
                           perform any Remedial Work. Landlord and Landlord's
                           agents shall have the right to enter the Premises at
                           all reasonable times to inspect, monitor and/or
                           perform Remedial Work. All expenses incurred by
                           Landlord in connection with performing Remedial Work
                           are payable by Tenant upon Landlord's demand, with
                           interest thereon at the rate of 12% per annum.

                  (8)      Tenant's failure to abide by the terms of this
                           Paragraph 8 shall be restricted by injunction.

9.       SIGNAGE. All signing shall comply with rules and regulations set forth
         by Landlord as may be modified from time to time. Current rules and
         regulations relating to signs are described on Exhibit C. Tenant shall
         place no window covering (e.g. shades, blinds, curtains, drapes,
         screens, or tinting materials), stickers, signs, lettering, banners or
         advertising or display material on or near the exterior windows or
         doors if such materials are visible from the exterior of the Premises,
         without Landlord's prior written consent. Similarly, Tenant may not
         install any alarm boxes, foil protection tape or other security
         equipment on the Premises without Landlord's prior written consent. Any
         material violating this provision may be destroyed by Landlord without
         compensation to Tenant.

10.      PERSONAL PROPERTY TAXES. Tenant shall pay before delinquency all taxes,
         assessments, license fees and public charges levied, assessed or
         imposed upon its business operations as well as upon all trade
         fixtures, leasehold improvements, merchandise and other personal
         property in or about the Premises.

11.      PARKING. Landlord grants to Tenant and Tenant's customers, suppliers,
         employees and invitees, an exclusive license to use the designated
         parking areas at the Premises for the use of motor vehicles during the
         term of this Lease. Landlord reserves the right at any

                                       12
<PAGE>   13
         time to promulgate rules and regulations relating to the use of such
         parking areas, including reasonable restrictions on parking by tenants
         and employees, to designate specific spaces for the use of any tenant,
         to make changes in the parking layout from time to time, and to
         establish reasonable time limits on parking. Overnight parking is
         permitted by Landlord on an occasional basis only, and for a limited
         number of cars. Tenant hereby assumes all responsibility arising out of
         and in connection with such overnight parking, and waives its rights to
         all claims from any loss or damage to any vehicle resulting from such
         overnight use. Any vehicle violating this or any other vehicle
         regulation adopted by Landlord is subject to removal at the owner's
         expense.

12.      UTILITIES. (Strike and initial clause which does not apply).

         a.       [OMITTED FROM ORIGINAL]

         b.       INDUSTRIAL SPACE. Tenant shall pay for all water, gas, heat,
                  light, power, sewer, electricity, telephone or other service,
                  metered, chargeable or provided to the Premises. Landlord
                  reserves the right to install separate meters for any such
                  utility and to charge Tenant for the cost of such
                  installation.

13.      MAINTENANCE. Landlord shall maintain, in good condition, the structural
         parts of the Premises, which shall include only the foundations,
         bearing and exterior walls (excluding glass), subflooring and roof
         (excluding skylights), the unexposed electrical, plumbing and sewerage
         systems, including those portions of the systems lying outside the
         Premises, gutters and downspouts on the Building and the heating,
         ventilating and air conditioning system servicing the Premises;
         provided, however, the cost of all such maintenance shall be considered
         "Expenses" for purposes of Section 4.c. Except as provided above,
         Tenant shall maintain and repair the Premises in good condition;
         including, without limitation, maintaining and repairing all walls,
         storefronts, floors, ceilings, interior and exterior doors, exterior
         and interior windows and fixtures and interior plumbing as well as
         damage caused by Tenant, its agents, employees or invitees. Upon
         expiration or termination of this Lease, Tenant shall surrender the
         Premises to landlord in the same condition as existed at the
         commencement of the term, except for reasonable wear and tear or damage
         caused by fire or other casualty for which Landlord has received all
         funds necessary for restoration of the Premises from insurance
         proceeds.

14.      ALTERATIONS. Tenant shall not make any alterations to the Premises, or
         to the Project, including any changes to the existing landscaping,
         without Landlord's prior written consent. Landlord's approval of any
         plans, specifications or working drawings shall not be construed as an
         acceptance or approval of, and shall create no responsibility or
         liability on the part of the Landlord for, the completeness, design or
         compliance with any federal, state or local laws, rules and
         regulations, including the Americans With Disabilities Act. If Landlord
         gives its consent for such alterations, Landlord may post notices in
         accordance with the laws of the state in which the premises are
         located. Any alterations made shall remain on and be surrendered with
         the Premises upon expiration or termination of this Lease, except that
         Landlord may, within 30 days before or 30 days

                                       13
<PAGE>   14
         after expiration of the term, elect to require Tenant to remove any
         alterations which Tenant may have made to the Premises. If Landlord so
         elects, at its own cost Tenant shall restore the Premises to the
         condition designated by Landlord in its election, before the last day
         of the term or within 30 days after notice of its election is given,
         whichever is later.

         Should Landlord consent in writing to Tenant's alteration of the
         Premises, Tenant shall contract with a contractor approved by Landlord
         for the construction of such alterations, shall secure all appropriate
         governmental approvals and permits, and shall complete such alterations
         with due diligence in compliance with plans and specifications approved
         by Landlord. All such construction shall be performed in a manner which
         will not interfere with the quiet enjoyment of other tenants of the
         Project. Tenant shall pay all costs for such construction and shall
         keep the Premises and the Project free and clear of all mechanics'
         liens which may result from construction by Tenant.

15.      RELEASE AND INDEMNITY. As material consideration to Landlord, Tenant
         agrees that Landlord shall not be liable to Tenant for any damage to
         Tenant or tenant's property from any cause and Tenant waives all claims
         against Landlord for damage to persons or property arising for any
         reason, except for damage resulting directly from Landlord's breach of
         its express obligations under this Lease which Landlord has not cured
         within a reasonable time after receipt of written notice of such breach
         from Tenant. Tenant shall indemnify and hold Landlord harmless from all
         damages arising out of any damage to any person or property occurring
         in, or about the Premises or Tenant's use of the Premises or Tenant's
         breach of any term of this Lease.

16.      INSURANCE. Tenant, at its cost, shall maintain public liability and
         property damage insurance and products liability insurance with a
         single combined liability limit of $1,000,000, insuring against all
         liability of Tenant and its representatives, employees. invitees, and
         agents arising out of or in connection with Tenant's use or occupancy
         of the Premises. Public liability insurance, products liability
         insurance and property damage insurance shall insure performance by
         Tenant of the indemnity provisions of Section 15. Landlord and
         Landlord's designated manager shall be named as additional insured and
         the policy shall contain cross-liability endorsements. On all its
         personal property, at its cost, Tenant shall maintain a policy of
         standard fire and extended coverage insurance with vandalism and
         malicious mischief endorsements and "all risk" coverage on all Tenant's
         improvements and alterations, including without limitation, all items
         of Tenant responsibility described in Section 13 or in or about the
         Premises, to the extent of at least 90% of their full replacement
         value. The proceeds from any such policy shall be used by Tenant for
         the replacement of personal property and the restoration of Tenants
         improvements or alterations. All insurance required to be provided by
         Tenant under this Lease shall release Landlord from any claims for
         damage to any person or the Premises and the Project, and to Tenant's
         fixtures, personal property, improvements and alterations in or on the
         Premises or the Project, caused by or resulting from risks insured
         against under any insurance policy carried by Tenant in force at the
         time of such damage. All insurance required to be provided by Tenant
         under this Lease: (a) shall be issued by

                                       14
<PAGE>   15
         insurance companies authorized to do business in the state in which the
         premises are located with a financial rating of at least an A+XII
         status as rated in the most recent edition of Best's Insurance Reports;
         (b) shall be issued as a primary policy; and (c) shall contain an
         endorsement requiring at least 30 days prior written notice of
         cancellation to Landlord and Landlord's lender, before cancellation or
         change in coverage, scope or amount of any policy. Tenant shall deliver
         a certificate or copy of such policy together with evidence of payment
         of all current premiums to Landlord prior to the Commencement Date of
         this Lease. Tenant's failure to provide evidence of such coverage to
         Landlord may, in Landlord's sole discretion, constitute a default under
         this Lease.

17.      DESTRUCTION. If during the term, the Premises or Project are more than
         10% destroyed from any cause, or rendered inaccessible or unusable from
         any cause, Landlord may, in its sole discretion, terminate this Lease
         by delivery of notice to Tenant within 30 days of such event without
         compensation to Tenant. If in Landlord's estimation, the Premises
         cannot be restored within 90 days following such destruction, the
         Landlord shall notify Tenant and Tenant may terminate this Lease by
         delivery of notice to Landlord within 30 days of receipt of Landlord's
         notice. If Landlord does not terminate this Lease and if in Landlord's
         estimation the Premises can be restored within 90 days, then Landlord
         shall commence to restore the Premises in compliance with then existing
         laws and shall complete such restoration with due diligence. In such
         event, this Lease shall remain in full force and effect, but there
         shall be an abatement of rent between the date of destruction and the
         date of completion of restoration, based on the extent to which
         destruction interferes with Tenant's use of the Premises.

18.      CONDEMNATION.

         a.       DEFINITIONS. The following definitions shall apply: (1)
                  "Condemnation" means (a) the exercise of any governmental
                  power of eminent domain, whether by legal proceedings or
                  otherwise by condemnor and (b) the voluntary sale or transfer
                  by Landlord to any condemnor either under threat of
                  condemnation or while legal proceedings for condemnation are
                  proceeding; (2) "Date of Taking" mans the date the condemnor
                  has right to possession of the property being condemned; (3)
                  "Award" means all compensation, sums or anything of value
                  awarded, paid or received on a total or partial condemnation;
                  and (4) "Condemnor' means any public or quasi-public
                  authority, or private corporation or individual, having power
                  of condemnation.

         b.       OBLIGATIONS TO BE GOVERNED BY LEASE. If during the term of the
                  Lease there is any taking of all or any part of the Premises
                  or the Project, the rights and obligations of the parties
                  shall be determined pursuant to this Lease.

         c.       TOTAL OR PARTIAL TAKING. If the Premises are totally taken by
                  condemnation, this Lease shall terminate on the date of
                  taking. If any portion of the Premises is taken by
                  condemnation, this Lease shall remain in effect, except that
                  Tenant can elect to

                                       15
<PAGE>   16
                  terminate this Lease if the remaining portion of the Premises
                  is rendered unsuitable for Tenant's continued use of Premises.
                  If Tenant elects to terminate this Lease, Tenant must exercise
                  its right to terminate by giving notice to Landlord within 30
                  days after the nature and extent of the taking have been
                  finally determined. If Tenant elects to terminate this Lease,
                  Tenant shall also notify Landlord of the date of termination,
                  which date shall not be earlier than 30 days nor later than 90
                  days after Tenant has notified Landlord of its election to
                  terminate; except that this Lease shall terminate on the date
                  of taking if the date of taking falls on a date before the
                  date of termination as designated by Tenant. If any portion of
                  the Premises is taken by condemnation and this Lease remains
                  in full force and effect, on the date of taking the rent shall
                  be reduced by an amount in the same ratio as the total number
                  of square feet in the Premises taken bears to the total number
                  of square feet in the Premises immediately before the date of
                  taking.

19.      ASSIGNMENT OR SUBLEASE. Tenant shall not assign or encumber its
         interest in this Lease or the Premises or sublease all or any part of
         the Premises or allow any other person or entity (except Tenant's
         authorized representatives, employees, invitees, or guests) to occupy
         or use all or any part of the Premises without first obtaining
         Landlord's reasonable consent which Landlord may withhold or condition
         in its sole discretion. Any assignment, encumbrance or sublease without
         Landlord's written consent shall be voidable and at Landlord's
         election, shall constitute a default. If Tenant is a partnership, a
         withdrawal or change, voluntary, involuntary or by operation of law of
         any partner, or the dissolution of the partnership, shall be deemed a
         voluntary assignment. If Tenant consists of more than one person, a
         purported assignment, voluntary or involuntary or by operation of law
         from one person to the other shall be deemed a voluntary assignment. If
         Tenant is a corporation, any dissolution, merger, consolidation or
         other reorganization of Tenant, or sale or other transfer of a
         controlling percentage of the capital stock of Tenant, or the sale of
         at least 50% of the value of the assets of Tenant shall be deemed a
         voluntary assignment. The phrase "controlling percentage" means
         ownership of and right to vote stock possessing at least 50% of the
         total combined voting power of all classes of Tenant's capital stock
         issued, outstanding and entitled to vote for election of directors.
         This Section 19 shall not apply to corporations the stock of which is
         traded through an exchange or over the counter. All rent received by
         Tenant from its subtenants in excess of the rent payable by Tenant to
         Landlord under this Lease shall be paid to Landlord, or any sums to be
         paid by an assignee to Tenant in consideration of the assignment of
         this Lease shall be paid to Landlord. If Tenant requests Landlord to
         consent to a proposed assignment or subletting, Tenant shall pay to
         Landlord, whether or not consent is ultimately given, $100 or
         Landlord's reasonable attorney's fees incurred in connection with such
         request, whichever is greater.

         No interest of Tenant in this Lease shall be assignable by involuntary
         assignment through operation of law (including without limitation the
         transfer of this Lease by testacy or intestacy). Each of the following
         acts shall be considered an involuntary assignment: (a) if Tenant is or
         becomes bankrupt or insolvent, makes an assignment for the benefit of

                                       16
<PAGE>   17
         creditors, or institutes proceedings under the Bankruptcy Act in which
         Tenant is the bankrupt; or it Tenant is a partnership or consists of
         more than one person or entity, if any partner of the partnership or
         other person or entity is or becomes bankrupt or insolvent, or makes an
         assignment for the benefit of creditors; or (b) if a writ of attachment
         or execution is levied on this Lease; or (c) if in any proceeding or
         action to which Tenant is a party, a receiver is appointed with
         authority to take possession of the Premises An involuntary assignment
         shall constitute a default by Tenant and Landlord shall have the right
         to elect to terminate this Lease, in which case this Lease shall not be
         treated as an asset of Tenant.

20.      DEFAULT. The following events shall constitute a default by Tenant
         under this Lease:

         a.       a default by Tenant in the payment when due of any rent or
                  other sum payable hereunder,

         b.       a default by Tenant in the performance of any of the other
                  terms, covenants, agreements or conditions contained herein;

         c.       the bankruptcy or insolvency of Tenant, transfer by Tenant in
                  fraud of creditors, an assignment by Tenant for the benefit of
                  creditors, or the commencement of any proceedings of any kind
                  by or against Tenant under any provision of the Federal
                  Bankruptcy Act or under any other insolvency, bankruptcy or
                  reorganization act unless, in the event such proceedings are
                  involuntary, Tenant is discharged from same within sixty (60)
                  days thereafter,

         d.       the appointment of a receiver for a substantial part of the
                  assets of Tenant;

         e.       the abandonment of the Premises (failure to occupy and operate
                  the Premises for ten (10) consecutive days shall be deemed an
                  abandonment); and

         f.       the levy upon this Lease or any estate of Tenant hereunder by
                  any attachment or execution and the failure to have such
                  attachment or execution vacated within thirty (30) days
                  thereafter.

21.      LANDLORD'S REMEDIES. Landlord shall have the following remedies if
         Tenant is in default (These remedies are not exclusive; they are
         cumulative and in addition to any remedies now or late allowed by law):
         Landlord may terminate Tenant's right to possession of the Premises at
         any time. No act by Landlord other than giving notice to Tenant shall
         terminate this Lease. Acts of maintenance, efforts to relet the
         Premises, or the appointment of a receiver on Landlord's initiative to
         protect Landlord's interest under this Lease shall not constitute a
         termination of Tenant's right to possession. Upon termination of
         Tenant's right to possession, Landlord has the right to recover from
         Tenant (1) the worth of the unpaid rent that had been earned at the
         time of termination of Tenant's right to possession; (2) the worth of
         the amount of the unpaid rent that would have been earned after the
         date of termination of Tenant's right to possession; (3) any other
         amount, including but not limited to, expenses incurred to relet the
         premises, court,

                                       17
<PAGE>   18
         attorney and collection costs, necessary to compensate Landlord for all
         detriment caused by Tenant's default. "The Worth," as used for Item
         21(l) in this Paragraph 21 is to be computed by allowing interest at
         the rate of 18 percent per annum. If the interest rate specified in
         this Lease is higher than the rate permitted by law, the interest rate
         is hereby decreased to the maximum legal interest rate permitted by
         law. "The Worth" as used for Item 21(2) in this Paragraph 21 is to be
         computed by discounting the amount at the discount rate of the Federal
         Reserve Bank of San Francisco at the time of termination of Tenant's
         right of possession.

         In the event of any default by Tenant, Landlord shall also have the
         right, with or without terminating this Lease, to reenter the Premises
         and remove all persons, and property from the Premises. Such property
         may be removed and stored in a public warehouse or elsewhere at the
         cost of and for the account of Tenant. No reentry or taking possession
         of the Premises by Landlord pursuant to this Paragraph 21 shall be
         construed as an election to terminate this Lease unless a written
         notice of such intention is given to Tenant or unless the termination
         thereof is decreed by a court of competent jurisdiction.

         In the event of the vacation or abandonment of the Premises by Tenant,
         or in the event that Landlord shall elect to reenter as provided above
         or shall take possession of the Premises pursuant to legal proceeding
         or pursuant to any notice provided by law, then if Landlord does not
         elect to terminate this Lease as provided above, Landlord may from time
         to time, without terminating this Lease, either recover all rent as it
         becomes due or relet the Premises or any part thereof for the term of
         this Lease on terms and conditions as Landlord in its sole discretion
         may deem advisable with the right to make alterations and repairs to
         the Premises.

22.      ENTRY ON PREMISES. Landlord and its authorized representatives shall
         have the right to enter the Premises at all reasonable times for any of
         the following purposes: (a) to determine whether the Premises are in
         good condition and whether Tenant is complying with its obligations
         under this Lease; (b) to do any necessary maintenance and to make any
         restoration to the Premises or the Project that Landlord has the right
         or obligation to perform; (c) to post "for sale" signs at any time
         during the term, to post "for rent" or "for lease" signs during the
         last 90 days of the term, or during any period while Tenant is in
         default; (d) to show the Premises to prospective brokers, agents,
         buyers, tenants or persons interested in leasing or purchasing the
         Premises, at any time during the term; or (e) to repair, maintain or
         improve the Project and to erect scaffolding and protective barricades
         around and about the Premises but not so as to prevent entry to the
         Premises and to do any other act or thing necessary for the safety or
         preservation of the Premises or the Project. Landlord shall not be
         liable in any manner for an any inconvenience, disturbance, loss of
         business, nuisance or other damage arising out of Landlord's entry onto
         the Premises as provided in this Section 22. Tenant shall not be
         entitled to an abatement or reduction of rent if Landlord exercises any
         rights reserved in this Section 22. Landlord shall conduct his
         activities on the Premises as provided herein in a manner that will
         cause the least inconvenience, annoyance or disturbance to Tenant. For
         each of these purposes, Landlord shall at all times have and retain a
         key with which to unlock all

                                       18
<PAGE>   19
         the doors, in, upon and about the Premises, excluding Tenant's vaults
         and safes. Tenant shall not alter any lock or install a new or
         additional lock or bolt on any door of the Premises without prior
         written consent of Landlord. If Landlord gives its consent, Tenant
         shall furnish Landlord with a key for any such lock.

23.      SUBORDINATION. Without the necessity of any additional document being
         executed by Tenant for the purpose of effecting a subordination, and at
         the election of Landlord or any mortgagee or any beneficiary of a Deed
         of Trust with a lien on the Project or any ground lessor with respect
         to the Project, this Lease shall be subject and subordinate at all ties
         to (a) all ground leases or underlying leases which may now exist or
         hereafter be executed affecting the Project, and (b) the lien of any
         mortgage or deed of trust which may now exist or hereafter be executed
         in any amount for which the Project, ground leases or underlying
         leases, or Landlord's interest or estate in any of said items is
         specified as security. In the event that any ground lease or underlying
         lease terminates for any reason or any mortgage or Deed of Trust is
         foreclosed or a conveyance in lieu of foreclosure is made for any
         reason, Tenant shall, notwithstanding any subordination, attorn to and
         become the Tenant of the successor in interest to Landlord, at the
         option of such successor in interest. Tenant covenants and agrees to
         execute and delivery, upon demand by Landlord and in the form requested
         by Landlord any additional documents evidencing the priority or
         subordination of this Lease with respect to any such ground lease or
         underlying leases or the lien of any such mortgage or Deed of Trust.
         Tenant hereby irrevocably appoints Landlord as attorney-in-fact of
         Tenant to execute, deliver and record any such document in the name and
         on behalf of Tenant.

         Tenant, within ten days from notice from Landlord shall execute and
         deliver to Landlord in recordable form, certificates stating that this
         Lease is not in default, is unmodified and in full force and effect, or
         in full force and effect as modified, and stating the modifications.
         This certificate should also state the amount of current monthly rent
         that dates to which rent has been paid in advance, and the amount of
         any security deposit and prepaid rent. Failure to deliver this
         certificate to Landlord within ten days shall be conclusive upon Tenant
         that this Lease is in full force and effect and has not been modified
         except as may be represented by Landlord.

24.      NOTICE. Any notice, demand, request, consent, approval or communication
         desired by either party or required to be given, shall be in writing
         and served either personally or sent by prepaid certified first class
         mail, addressed as set forth in Section 1. Either party may change its
         address by notification to the other party. Notice shall be deemed to
         be communicated 48 hours from the time of mailing, or from the time of
         service as provided in this Section 24.

25.      WAIVER. No delay or omission in the exercise of any right or remedy by
         Landlord shall impair such right or remedy or be construed as a waiver.
         No act or conduct of Landlord, including without limitation, acceptance
         of the keys to the Premises, shall constitute an acceptance of the
         surrender of the Premises by Tenant before the expiration of the term.
         Only written notice from Landlord to Tenant shall constitute acceptance
         of the surrender

                                       19
<PAGE>   20
         of the Premises and accomplish termination of the Lease. Landlord's
         consent to or approval of any act by Tenant requiring Landlord's
         consent or approval shall not be deemed to waive or render unnecessary
         Landlord's consent to or approval of any subsequent act by Tenant. Any
         waiver by Landlord of any default must be in writing and shall not be a
         waiver of any other default concerning the same or any other provision
         of the Lease.

26.      SURRENDER OF PROMISES; HOLDING OVER. Upon expiration of the term,
         Tenant shall surrender to Landlord the Premises and all Tenant
         improvements and alterations in good condition, except for ordinary
         wear and tear and alterations Tenant has the right or is obligated to
         remove under the provisions of Section 14 herein. Tenant shall remove
         all personal property including, without limitation, all wallpaper,
         paneling and other decorative improvements or fixtures and shall
         perform all restoration made necessary by the removal of any
         alterations or Tenant's personal property before the expiration of the
         term, including for example, restoring all wall surfaces to their
         condition prior to the commencement of this Lease. Landlord can elect
         to retain or dispose of in any manner Tenants personal property not
         removed from the Premises by Tenant prior to the expiration of the
         term. Tenant waives all claims against Landlord for any damage to
         Tenant resulting from Landlord's retention or disposition of Tenant's
         personal property. Tenant shall be liable to Landlord for Landlord's
         cost for storage, removal or disposal of Tenant's personal property.

         If Tenant, with Landlord's consent, remains in possession of the
         Premises after expiration or termination of the term, or after the date
         in any notice given by Landlord to Tenant terminating this Lease, such
         possession by Tenant shall be deemed to be a month-to-month tenancy
         terminable on written 30-day notice at any time, by either party. All
         provisions of this Lease, except those pertaining to term and rent,
         shall apply to the month-to-month tenancy. Tenant shall pay monthly
         rent in an amount equal to 125% of Rent for the last full calendar
         month during the regular term plus 100% of said last month's estimate
         of Tenant's share of Expenses pursuant to Section 4.c.3.

27.      LIMITATION OF LIABILITY. In consideration of the benefits accruing
         hereunder, Tenant agrees that, in the event of any actual or alleged
         failure, breach or default of this Lease by Landlord: (a) the sole and
         exclusive remedy shall be against Landlord's interest in the Project,
         (b) no trustee, partner, beneficiary, shareholder, director, officer,
         agent or representative of Landlord shall be sued or named as a party,
         in any suit or action; (c) no service of process shall be made against
         any trustee, partner, beneficiary, shareholder, director, officer,
         agent or representative of Landlord; (d) no trustee, partner,
         beneficiary, shareholder, director, officer, agent or representative of
         Landlord shall be required to answer or otherwise plead to any service
         of process; (e) no judgment will be taken against any trustee, partner,
         beneficiary, shareholder, director, officer, agent or representative of
         Landlord and any such judgment may be vacated and set aside at any time
         nunc pro tunc; and (f) no writ of execution will ever be levied against
         the assets of any trustee, partner, beneficiary, shareholder, director,
         officer, agent, or representative of Landlord. The obligations of
         Landlord under this Lease do not constitute personal obligations of the

                                       20
<PAGE>   21
         individual trustees, partners, beneficiaries, shareholders, directors,
         officers, agents or representatives of Landlord, and Tenant shall not
         seek recourse against any such parties or any of their personal assets
         for satisfaction of any liability in respect to this Lease. The
         covenants and agreements set forth in this Paragraph 27 are enforceable
         both by Landlord and also by its trustees, partners, beneficiaries,
         shareholders, directors, officers, agents and representatives.

28.      ALTERATIONS FOR HANDICAPPED ACCESS. Subject to the following
         conditions, Tenant shall at its own expense be required to make all
         alterations to the Premises necessary to bring the Premises into full
         compliance with all federal, state and local statutes, rules,
         regulations, and ordinances regarding handicapped accessibility and
         use, now in existence or arising in the future, including but not
         limited to the provisions of the Americans With Disabilities Act, 42
         U.S.C. Sections 12101 et. seq. as may be amended. All plans and
         drawings for alterations under this Article shall be submitted to
         Landlord in writing before commencement of any work, and shall bear the
         statement of Tenant's architect or engineer that such plans and
         drawings comply with federal, state, and local statutes, rules,
         regulations, and ordinances regarding handicap accessibility. Under no
         circumstances may Tenant make any alterations to the Premises without
         the prior written approval of Landlord.

29.      MISCELLANEOUS PROVISIONS.

         a.       TIME OF ESSENCE. Time is of the essence of each provision of
                  this Lease.

         b.       SUCCESSOR. This Lease shall be binding on and inure to the
                  benefit of the parties and their successors, except as
                  provided in Section 19 herein.

         c.       LANDLORD'S CONSENT. Any consent required by Landlord under
                  this Lease must be granted in writing and may be withheld or
                  conditioned by Landlord at it sole and absolute discretion.

         d.       COMMISSIONS. Each party represents that it has not had
                  dealings with any real estate broker, finder or other person
                  with respect to this Lease in any manner, except for the
                  broker identified in Section 1, who shall be compensated by
                  Landlord.

         e.       OTHER CHARGES. If Landlord becomes a, party to any litigation
                  concerning this Lease, the Premises or the Project, by reason
                  of any act or omission of Tenant or Tenant's authorized
                  representatives, Tenant shall be liable to Landlord for
                  reasonable attorney's fees and court costs incurred by
                  Landlord in the litigation. Should the court render a decision
                  which is thereafter appealed by any party thereto, Tenant
                  shall be liable to Landlord for reasonable attorneys' fees and
                  court costs incurred by Landlord in connection with such
                  appeal.

                  If either party commences any litigation against the other
                  party or files an appeal of a decision arising out of or in
                  connection with the Lease, the prevailing party

                                       21
<PAGE>   22
                  shall be entitled to recover from the other party reasonable
                  attorney's fees and costs of suit. If Landlord employs a
                  collection agency to recover delinquent charges, Tenant agrees
                  to pay all collection agency and attorneys' fees charged to
                  Landlord in addition to rent, late charges, interest and other
                  sums payable under this Lease. Tenant shall pay a charge of
                  $75 to Landlord for preparation of a demand for delinquent
                  rent.

         f.       LANDLORD'S SUCCESSORS. In the event of a sale or conveyance by
                  Landlord of the Project, the same shall operate to release
                  Landlord from any liability under this Lease, and in such
                  event Landlord's successor in interest shall be solely
                  responsible for all obligations of Landlord under this Lease.

         g.       INTERPRETATION. This Lease shall be construed and interpreted
                  in accordance with the laws of the state in which the premises
                  are located. This Lease constitutes the entire agreement
                  between the parties with respect to the Premises and the
                  Project, except for such guarantees or modifications as may be
                  executed in writing by the parties from time to time. When
                  required by the context of this Lease, the singular shall
                  include the plural, and the masculine shall include the
                  feminine and/or neuter. "Party" shall mean Landlord or tenant.
                  If more than one person or entity constitutes Landlord or
                  Tenant, the obligations imposed upon that party shall be joint
                  and several. The enforceability, invalidity or illegality of
                  any provision shall not render the other provisions
                  unenforceable, invalid or illegal.

30.      TENANT IMPROVEMENTS. Landlord shall steam clean carpeted areas.
         Additionally, Landlord will touch up the paint in the existing office
         areas in a building standard paint.

31.      OPTION TO RENEW. Tenant shall have one three (3) year renewal option at
         the then-prevailing market rate, provided tenant is not in violation,
         breach or default of any provision of this Lease at the time of
         exercise. Tenant must give Landlord written notice of its intent to
         exercise this renewal option not more than 180 days or less than 90
         days prior to the end of the initial lease term. This option shall be
         exercisable only by Tenant, and not by any assignee or sublessee of
         Tenant, either voluntary or otherwise.

32.      EARLY OCCUPANCY. Upon full execution of this Lease by all parries,
         Landlord grants to Tenant the right to enter the Premises prior to the
         Commencement Date, for the purpose of installing Tenant's fixtures and
         equipment. Such Early Occupancy shall be in accordance with all terms
         and conditions of this Lease. Tenant must provide evidence of insurance
         according to the terms of this Lease prior to any Early Occupancy by
         Tenant.

                                       22
<PAGE>   23
LANDLORD:

<TABLE>
<CAPTION>
PRINCIPAL MUTUAL LIFE INSURANCE COMPANY,                PETULA ASSOCIATES LTD.,
an Iowa corporation                                     an Iowa corporation

<S>                                                     <C>
By:  /s/                                                By:  /s/
   ------------------------------------                    --------------------------------------
Its:                                                    Its:
    -----------------------------------                     -------------------------------------
Date:                                                   Date:
     ----------------------------------                      ------------------------------------
</TABLE>

TENANT:

QUALITY CARE SOLUTIONS, INC.
an Arizona corporation

By:  /s/
   ------------------------------------
Its:
    -----------------------------------
Date:
     ----------------------------------

                                       23
<PAGE>   24
                                   EXHIBIT "D"

                                  SIGN CRITERIA
                              PHOENIX TECH CENTER I
                                PHOENIX, ARIZONA

This criteria is designed to establish and maintain guidelines, consistent with
the signage policies of the Landlord and the sign ordinances of the City of
Phoenix. Tenants, when applying for signs, are requested to conform with these
guidelines and conformance will be strictly enforced by Landlord.

GENERAL:

1.       Sign and permit costs are the responsibility of the Tenant.
2.       All sign copy and layouts are subject to approval by the Landlord or
         their appointed agents.

FORMAT:

1.       Tenant ID to be vinyl die cut letters.
2.       Size of primary copy not to exceed 3" high and size of secondary copy
         not to exceed 2" high. Total copy area not to exceed 180 square inches
         (Gross Area).
3.       Letter style is to be HELVETICA MEDIUM, all upper case.
         Logos or custom letterstyles are subject to approval by the Landlord or
         their appointed agent.
4.       Copy color is White #3650 3M standard Scotchcal color.

INSTALLATION:

1.       Print or type copy, as it will appear on the sign. (Unless otherwise
         specified, Helvetica Medium copy style will be used.)
2.       Stylized monograms, logos or specific layout requirements, whether
         furnished by Tenant or designed by the sign company, must be submitted
         in clear legible form in duplicate for approval before installation.

RESTRICTIONS/VIOLATIONS/DAMAGE:

1.       No electric or audible signs are permitted.
2.       No additional form of advertising on the sign, building, windows, or
         grounds is permitted.
3.       Signs in violation will be brought into conformity at the expense of
         the Tenant.
4.       Upon the removal of any sign, any damage to the building or property
         will be repaired at the Tenant's expense.
5.       Additional signage requests by Tenants, occupying multiple suites, will
         be reviewed by the Landlord for consideration.

                                       27
<PAGE>   25
The following diagram is to scale and may be used to illustrate the desired
wording and placement of the sign.

You may contact the individual below for the fabrication and installation of
your sign:

         EXPRESS SIGN
         Fran Locker
         (602) 263-8258
         4442 North 7th Avenue
         Phoenix, Arizona  85013

                                       28
<PAGE>   26
                                   EXHIBIT "A"

                                  THE PREMISES

                             5030 EAST SUNRISE DRIVE
                           BUILDING 12/ENTIRE BUILDING
                                PHOENIX, ARIZONA

                                       24
<PAGE>   27
                                   EXHIBIT "B"

                                   THE PROJECT

                             5030 EAST SUNRISE DRIVE
                           BUILDING 12/ENTIRE BUILDING
                                PHOENIX, ARIZONA

                                       25
<PAGE>   28
                                   EXHIBIT "C"

                                  SIGN CRITERIA

[DIAGRAM OMITTED]

                                       26<PAGE>   1
                                                                   EXHIBIT 10.18

                     MOUNTAIN VISTA COMMERCIAL CENTER LEASE

1.    BASIC LEASE TERMS

      a.    DATE OF LEASE: October 20, 1999

      b.    TENANT: QUALITY CARE SOLUTIONS, INC., A NEVADA CORPORATION.

            Address (Leased Premises): 14647 South 50TH Street, Phoenix, Arizona
            85044.
            Building/Unit: 1/150
            Address (For Notices):  QUALITY CARE SOLUTIONS, INC.
                                    14647 SOUTH 50TH STREET, BUILDING 1,
                                    SUITE 150
                                    PHOENIX, ARIZONA 85044

      c.    LANDLORD: PRINCIPAL DEVELOPMENT INVESTORS, L.L.C., a Delaware
            Limited Liability Company, dba PDI-Mountain Vista Commercial Center.
            Address for notices and payment of rent: Metro Commercial
            Properties, 4411 South Rural Road, #201, Tempe, Arizona, 85282, or
            to such other place as Landlord may from time to time designate by
            notice to Tenant.

      d.    TENANT'S USE OF PREMISES: Administrative office.

      e.    PREMISES AREA: Approximately 35,000 square feet, to be adjusted to
            an "As-Built" measurement. The Square Footage is measured from the
            "face of glass or dominant wall;" in other words, the building
            exterior, or outside face, sometimes referred to as the "drip line"
            to the middle of the demising wall.

      f.    PROJECT AREA: 132,000 SQUARE FEET

      g.    TERM OF LEASE: Commencement: APRIL 1, 2000 Expiration: MARCH 31,
            2010, OR UPON RECEIPT OF A CERTIFICATE OF OCCUPANCY FROM THE CITY OF
            PHOENIX.

            Number of Months: 120 Months

      h.    BASE MONTHLY RENT: $40,600.00, PLUS APPLICABLE TAXES

      i.    RENT ADJUSTMENT:

            Step Increase. If this provision is utilized the step adjustment
            provisions of Section 4.b apply as follows:

<TABLE>
<CAPTION>
                  Effective Date of        New Base
                  Rent Increase            Monthly Rent
                  -------------            ------------
<S>                                        <C>
                  April 1, 2000            $40,600.00, plus applicable taxes
                  October 1, 2002          $42,700.00, plus applicable taxes
                  April 1, 2005            $44,450.00, plus applicable taxes
                  October 1,2007           $46,550.00, plus applicable taxes
</TABLE>

      j.    ANNUAL EXPENSE BASE:

<TABLE>
<S>                                             <C>
            EXPENSE RATE:                       2000 BASE YEAR
            PREMISES AREA SQUARE FEET:          X 35,000   sf
            PRO RATA SHARE                      27%         %
</TABLE>

      k.    PREPAID RENT: $ 0.00

      l.    SECURITY DEPOSIT: SECURITY DEPOSIT HAS BEEN WAIVED.

      m.    BROKER: METRO COMMERCIAL PROPERTIES AND COLDWELL BANKER COMMERCIAL

                                       1
<PAGE>   2
      n.    GUARANTOR(S): SEE EXHIBIT "H".

      o.    INITIAL RENT: $40,600.00 PLUS TAX FOR THE PERIOD APRIL 1, 2000
            THROUGH APRIL 30, 2000.

      p.    ADDITIONAL SECTIONS: Additional section(s) of this lease numbered 29
            AND 30 is/are attached hereto and made a part hereof. If none, so
            state in the following space [omitted in original].

      q.    ADDITIONAL EXHIBITS: Additional exhibits lettered A through I are
            attached hereto and made a part hereof. If none, so state in the
            following space [omitted in original].

2.    PREMISES. Landlord leases to Tenant the premises described in Section 1
      and in Exhibit A (the "Premises"), located in this project described on
      Exhibit B (the "Project"). By entry on the Premises, Tenant acknowledges
      that it has examined the Premises and accepts the Premises in their
      present condition, subject to any additional work Landlord has agreed to
      do in writing attached as Exhibit C. Tenant represents and warrants that
      it agrees with the square footage specified for the Premises in Section 1
      and will not hereafter challenge such determination and agreement.

3.    TERM. The term of this lease is for the period set forth in Section 1,
      commencing on the date in Section 1. If Landlord, for any reason, cannot
      deliver possession of the Premises to Tenant upon commencement of the
      term, this Lease shall not be void or voidable, nor shall Landlord be
      liable to Tenant for any loss or damage resulting from such delay. In that
      event, however, there shall be a rent abatement covering the period
      between the commencement of term and the time when Landlord delivers
      possession to Tenant, and all other terms and conditions of this Lease
      shall remain in full force and effect, provided, however, that if Landlord
      cannot deliver possession of the Premises to Tenant, this Lease shall be
      void. If a delay in possession is caused by Tenant's failure to perform
      any obligation in accordance with this Lease, the term shall commence as
      set forth in Section 1 and there shall be no reduction of rent between the
      commencement of the term and the time Tenant takes possession.

4.    RENT

      a.    BASE RENT. Tenant shall pay Landlord monthly base rent in the
            initial amount in Section 1 which shall be payable monthly in
            advance on the first day of each and every calendar month ("base
            Monthly Rent") provided, however, the first month's rent and any
            partial month's rent is due and payable upon execution of this
            Lease.

            For purposes of Section 467 of the Internal Revenue Code, the
            parties to this Lease hereby agree to allocate the stated rents,
            provided herein, to the periods which correspond to the actual rent
            payments as provided under the terms and conditions of this
            agreement.

      b.    RENT ADJUSTMENT.

            STEP INCREASE. If Section 1.i. is utilized, the Base Monthly Rent
            shall be increased periodically to the amounts and at the times set
            forth in Section 1.i.

      c.    EXPENSES. The purpose of this Section 4.c is to ensure that Tenant
            bears a share of all Expenses related to the use, maintenance,
            repair or replacement, and insurance of the Project. Accordingly,
            beginning on the first of the calendar year following the date Lease
            Commencement Date, Tenant shall pay to Landlord that portion of
            Tenant's Share (as defined below) of Expenses related to the Project
            which is in excess of the Annual Expense Base shown in Section 1.
            Tenant's prorata share of the operating expenses shall be determined
            on a occupancy level of no less than ninety-five percent (95%).
            Property taxes to be calculated as a fully leased office building
            for one year.

      (1)   EXPENSE DEFINED. The term "Expenses" shall mean all costs and
            expenses of the operation, maintenance, repair or replacement, and
            insurance of the Project, including without limitation, the
            following costs:

                                       2
<PAGE>   3
      (a)   All supplies, materials, labor, equipment, and utilities used in or
            related to the operation and maintenance of the Project;

      (b)   All maintenance, management, common area janitorial, accounting,
            insurance, and service agreement costs related to the Project;

      (c)   All maintenance, replacement and repair costs relating to the areas
            within or around the Project, including, without limitation, air
            conditioning systems, sidewalks, landscaping, service areas,
            driveways, parking areas (including resurfacing and restriping
            parking areas), walkways, building exteriors (including painting),
            signs and directories, repairing and replacing roofs, walls, etc.

      (d)   Amortization (along with reasonable financing charges) of capital
            improvements made to the Project which may be required by any
            government authority or which will improve the operating efficiency
            of the Project (provided, however, that the amount of such
            amortization for improvements not mandated by government authority
            shall not exceed in any year the amount of costs reasonably
            determined by Landlord in its sole discretion to have been saved by
            the expenditure either through the reduction or minimization of
            increases which would have otherwise occurred).

      (e)   Real Property Taxes including all taxes, assessments (general and
            special) and other impositions or charges which may be taxed,
            charged, levied, assessed or imposed upon all or any portion of or
            in relation to the Project or any portion thereof, any leasehold
            estate in the Premises or measured by rent from the Premises
            including any increase caused by the transfer, sale or encumbrance
            of the Project or any portion thereof. "Real Property Taxes" shall
            also include any form of assessment, levy, penalty, charge or tax
            (other than estate, inheritance, net income, or franchise taxes)
            imposed by any authority having a direct or indirect power to tax or
            charge, including, without limitation, any city, county, state
            federal or any improvement or other district, whether such tax is
            (1) determined by the value of the Project or the rent or other sums
            payable under this Lease; (2) upon or with respect to any legal or
            equitable interest of Landlord in the Project or any part thereof;
            (3) upon this transaction or any document to which Tenant is a party
            creating a transfer in any interest in the Project; (4) in lieu of
            or as a direct substitute in whole or in part of or in addition to
            any real property taxes on the Project; (5) based on any parking
            spaces or parking facilities provided in the Project; or (6) in
            consideration for services, such as police protection, fire
            protection, street, sidewalk and roadway maintenance, refuse removal
            or other services that may be provided by any governmental or
            quasi-governmental agency from time to time which were formerly
            provided without charge or with less charge to property owners or
            occupants.

      (f)   The cost of any tax protest incurred in Landlord's attempt to reduce
            real estate taxes.

(2)   ANNUAL ESTIMATE OF EXPENSES - TENANT'S SHARE. When Tenant takes possession
      of the Premises, Tenant's share of Expenses for the remainder of the
      calendar year shall be zero. At the commencement of each calendar year
      thereafter, Landlord shall estimate Tenant's Share of Expenses for the
      coming year by multiplying the estimated annual Project Expenses in excess
      of the Annual Expense Base shown in Section 1 by the Premises area and
      dividing this product by 132,000, the total rentable square footage of the
      Project.

(3)   MONTHLY PAYMENT OF EXPENSES. If Tenant's portion of said estimate of
      Expenses shows an increase for subsequent calendar years over the Annual
      Expense Base, as set forth in Section 1, Tenant shall pay to Landlord, as
      additional rent, such estimated increase in monthly installments of
      one-twelfth (1/12) beginning on January 1 of the forthcoming calendar
      year, and one-twelfth (1/12) on the first day of each succeeding calendar
      month. Landlord shall prepare an accounting of actual Expenses incurred
      during the prior calendar year by March 31st of present year and such
      accounting shall reflect Tenant's Share of Expenses. If the additional
      rent paid by Tenant under this Section 4.c.3 during the preceding calendar
      year was less than the actual amount of Tenant's Share of Expenses,
      Landlord shall so notify Tenant and Tenant shall pay such amount to
      Landlord within 30 days of receipt of such notice. Such amount shall be
      deemed to have accrued during the prior calendar year and shall be due and
      payable from Tenant even though the term of this Lease

                                       3
<PAGE>   4
            has expired or this Lease has been terminated prior to Tenant's
            receipt of this notice. Tenant shall have thirty (30) days from
            receipt of such notice to contest the amount due; failure to so
            notify Landlord shall represent final determination of Tenant's
            Share of Expenses. If Tenant's payments were greater than the actual
            amount, then such overpayment shall be credited by Landlord to all
            present rent due under this Section 4.c.3.

      (4)   RENT WITHOUT OFFSET AND LATE CHARGE. All rent shall be paid by
            Tenant to Landlord monthly in advance on the first day of every
            calendar month, at the address shown in Section 1, or such other
            place as Landlord may designate in writing from time to time. All
            rent shall be paid without prior demand or notice and without any
            deduction or offset whatsoever. All rent shall be paid in lawful
            currency of the United States of America. Proration of rent due for
            any partial month shall be calculated by dividing the number of days
            in the month for which rent is due by the actual number of days in
            that month and multiplying by the applicable monthly rate. Tenant
            acknowledges that late payment by Tenant to Landlord of any rent or
            other sums due under this Lease will cause Landlord to incur costs
            not contemplated by this Lease, the exact amount of such cost being
            extremely difficult and impractical to ascertain. Such costs
            include, without limitation, processing and accounting charges and
            late charges that may be imposed on Landlord by the terms of any
            encumbrance or note secured by the Premises. Therefore, if any rent
            or other sum due from Tenant is not received when due, Tenant shall
            pay to landlord an additional sum equal to ten (10%) percent of such
            overdue payment. Landlord and Tenant hereby agree that such late
            charge represents a fair and reasonable estimate of the costs that
            Landlord will incur by reason of any such late payment and that the
            late charge is in addition to any and all remedies available to the
            Landlord and that the assessment and/or collection of the late
            charges shall not be deemed a waiver of any other default.
            Additionally, all such delinquent rent or other sums, plus this late
            charge, shall bear interest at the rate of eighteen (18%) percent
            per annum. If the interest rate specified in this Lease is higher
            than the rate permitted by law, the interest rate is hereby
            decreased to the maximum legal interest rate permitted by law. Any
            payments of any kind returned for insufficient funds will be subject
            to an additional $25.00 charge. Should a second payment be returned,
            Tenant agrees to make all future payments by cashier's check, money
            order, or certified check.

5.    FIRST MONTH'S RENT. Upon the execution of this Lease, Tenant shall pay to
      Landlord the prepaid rent set forth in Section 1, and if Tenant is not in
      default of any provisions of this Lease, such prepaid rent shall be
      applied toward the rent due for the first month of the term.

6.    DEPOSIT. Upon execution of this Lease, Tenant shall deposit a security
      deposit fee as set forth in Section 1 with Landlord. If Tenant is in
      default, Landlord can use the security deposit or any portion of it to
      cure the default or to compensate Landlord for any damages sustained by
      Landlord resulting from Tenant's default. Upon demand, Tenant shall
      immediately pay to Landlord a sum equal to the portion of the security
      deposit expenses or applied by Landlord to restore the security deposit to
      its full amount. In no event will Tenant have the right to apply any part
      of the security deposit to any rent or other sums due under this Lease. If
      Tenant is not in default at the expiration or termination of this Lease,
      Landlord shall return the security deposit to Tenant. Landlord's
      obligations with respect to the deposit are those of a debtor and not of a
      trustee, and Landlord can commingle the security deposit with Landlord's
      general funds. Landlord shall not be required to pay Tenant interest on
      the deposit. Landlord shall be entitled to immediately endorse and cash
      Tenant's prepaid deposit; however, such endorsement and cashing shall not
      constitute Landlord's acceptance of the Lease. In the event Landlord does
      not accept this Lease, Landlord shall return said prepaid deposit.

7.    USE OF PREMISES AND PROJECT FACILITIES. Tenant shall use the Premises
      solely for the purposes set forth in Section 1 and for no other purpose
      without obtaining the prior written consent of Landlord. Tenant
      acknowledges that neither Landlord nor any agent of Landlord has made any
      representation or warranty with respect to the Premises or with respect to
      the suitability of the Premises or the Project for the conduct of Tenant's
      business, nor has Landlord agreed to undertake any modification,
      alteration or improvement to the Premises or the Project, except as
      provided in writing in this Lease. Tenant acknowledges that Landlord may
      from time to time, at its sole discretion, make such modifications,
      alterations, deletions or improvements to the Project as Landlord may deem
      necessary or desirable, without

                                       4
<PAGE>   5
      compensation or notice to Tenant. Tenant shall promptly comply with all
      laws, ordinances, orders and regulations affecting the Premises and the
      Project, including, without limitation, any rules and regulations that may
      be attached to this Lease and to any reasonable modifications to these
      rules and regulations as Landlord may adopt from time to time. Tenant
      shall not do or permit anything to be done in or about the Premises or
      bring or keep anything in the Premises that will in any way increase the
      premiums paid by Landlord on its insurance related to the Project or which
      will in any way increase the premiums for fire or casualty insurance
      carried by other tenants in the Project. Tenant will not perform any act
      or carry on any practices that may injure the Premises or the Project;
      that may be a nuisance or menace to other tenants in the Project; or that
      shall in any way interfere with the quiet enjoyment of such other tenants.
      Tenant shall not use the Premises for sleeping, washing clothes, or the
      preparation, manufacture or mixing of anything that might emit any
      objectionable odor, noises, vibrations or lights onto such other tenants.
      If sound insulation is required to muffle noise produced by Tenant on the
      Premises, Tenant at its own cost shall provide all necessary insulation.
      Tenant shall not do anything on the premises which will overload any
      existing parking or service to the Premises. Pets and/or animals of any
      type shall not be kept on the Premises.

8.    EMISSIONS; STORAGE, USE AND DISPOSAL OF WASTE.

      8.1. DEFINITIONS.

      A.    "Hazardous Material" means any substance, whether solid, liquid or
            gaseous in nature:

            (i)   the presence of which requires investigation or remediation
                  under any federal, state or local statute, regulation,
                  ordinance, order, action, policy or common law, or

            (ii)  which is or becomes defined as a "hazardous waste", "hazardous
                  substance", pollutant or contaminant under any federal, state
                  or local statute, regulation, rule or ordinance or amendments
                  thereto including, without limitation, the Comprehensive
                  Environmental Response, Compensation and Liability Act (42
                  U.S.C. section 9601 et seq.) and/or the Resource Conservation
                  and Recovery Act (42 U.S.C. section 6901 et seq.), the
                  Hazardous Materials Transportation Act (49 U.S.C. section 1801
                  et seq.), the Federal Water Pollution Control Act (33 U.S.C.
                  section 1251 et seq.), the Clean Air Act (42 U.S.C. section
                  7401 et seq.), the Toxic Substances Control Act, as amended
                  (15 U.S.C. section 2601 et seq.), and the Occupational Safety
                  and Health Act (29 U.S.C. section 651 et seq.), as these laws
                  have been amended or supplemented; or

            (iii) which is toxic, explosive, corrosive, flammable, infectious,
                  radioactive, carcinogenic, mutagenic, or otherwise hazardous
                  or is or becomes regulated by any governmental authority,
                  agency, department, commission, board, agency or
                  instrumentality of the United States, the State of Arizona or
                  any political subdivision thereof; or

            (iv)  the presence of which on the Property causes or threatens to
                  cause a nuisance upon the Property or to adjacent properties
                  or poses or threatens to pose a hazard to the health or safety
                  of persons on or about the Property; or

            (v)   the presence of which on adjacent properties could constitute
                  a trespass by Tenant; or

            (vi)  without limitation which contains gasoline, diesel fuel or
                  other petroleum hydrocarbons; or

            (vii) without limitation which contains polychlorinated biphenyls
                  (PCBs), asbestos or urea formaldehyde foam insulation; or

                                       5
<PAGE>   6
            (viii) without limitation which contains radon gas.

      B.    "Environmental Requirements" means all applicable present and
            future:

            (i)   statutes, regulations, rules, ordinances, codes, licenses,
                  permits, orders, approvals, plans, authorizations,
                  concessions, franchises, and similar items (including, but not
                  limited to those pertaining to reporting, licensing,
                  permitting, investigations and remediation), of all
                  Governmental Agencies; and

            (ii)  all applicable judicial, administrative, and regulatory
                  decrees, judgments, and orders relating to the protection of
                  human health or the environment, including, without
                  limitation, all requirements pertaining to emissions,
                  discharges, releases, or threatened releases of Hazardous
                  Materials or chemical substances into the air, surface water,
                  groundwater or land, or relating to the manufacture,
                  processing, distribution, use, treatment, storage, disposal,
                  transport, or handling of Hazardous Materials or chemical
                  substances.

      C.    "Environmental Damages" means all claims, judgments, damages,
            losses, penalties, fines, liabilities (including strict liability),
            encumbrances, liens, costs, and expenses (including the expense of
            investigation and defense of any claim, whether or not such claim is
            ultimately defeated, or the amount of any good faith settlement or
            judgment arising from any such claim) of whatever kind or nature,
            contingent or otherwise, matured or unmatured, foreseeable or
            unforeseeable (including without limitation reasonable attorneys'
            fees and disbursements and consultants' fees) any of which are
            incurred at any time as a result of the existence of Hazardous
            Material upon, about, or beneath the Property or migrating or
            threatening to migrate to or from the Property, or the existence of
            a violation of Environmental Requirements pertaining to the Property
            and the activities thereon, regardless of whether the existence of
            such Hazardous Material or the violation of Environmental
            Requirements arose prior to the present ownership or operation of
            the Property. Environmental Damages include, without limitation:

            (i)   damages for personal injury or injury to property or natural
                  resources occurring upon or off of the Property, including,
                  without limitation, lost profits, consequential damages, the
                  cost of demolition and rebuilding of any improvements on real
                  property, interest, penalties and damages arising from claims
                  brought by or on behalf of employees of Tenant (with respect
                  to which Tenant waives any right to raise as a defense against
                  Landlord any immunity to which it may be entitled under any
                  industrial or worker's compensation laws);

            (ii)  fees, costs or expenses incurred for the services of
                  attorneys, consultants, contractors, experts, laboratories and
                  all other costs incurred in connection with the investigation
                  or remediation of such Hazardous Materials or violation of any
                  feasibility studies or reports or the performance of any
                  cleanup, remediation, removal, response, abatement,
                  containment, closure, restoration or monitoring work required
                  by any Governmental Agency or reasonably necessary to make
                  full economic use of the Property or any other property in a
                  manner consistent with its current use or otherwise expended
                  in connection with such conditions, and including without
                  limitation any attorneys' fees, costs and expenses incurred in
                  enforcing the provisions of this Lease or collecting any sums
                  due hereunder;

            (iii) liability to any third person or Governmental Agency to
                  indemnify such person or Governmental Agency for costs
                  expended in connection with the items referenced in
                  subparagraph (ii) above; and

            (iv)  diminution in the fair market value of the Property,
                  including, without limitation, any reduction in fair market
                  rental value or life expectancy of the

                                       6
<PAGE>   7
                  Property or the improvements located thereon or the
                  restriction on the use of or adverse impact on the marketing
                  of the Property or any portion thereof.

      D.    "Governmental Agency" means all governmental agencies, departments,
            commissions, boards, bureaus or instrumentalities of the United
            States, states, counties, cities and political subdivisions thereof.

      E.    The "Tenant Group" means Tenant, Tenant's successors, assignees,
            guarantors, officers, directors, agents, employees, invitees,
            permitees or other parties under the supervision or control of
            Tenant or entering the Property during the term of this Lease with
            the permission or knowledge of Tenant other than Landlord or its
            agents or employees.

8.2.  PROHIBITIONS.

      A.    Other than commercially reasonable quantities of general office
            supplies and except as specified on Exhibit "F" attached hereto
            provided Tenant's use complies with all Environmental Requirements
            and is incidental to Tenant's operation of its business, Tenant
            shall not cause, permit or suffer any Hazardous Material to be
            brought upon, treated, kept, stored, disposed of, discharged,
            released, produced, manufactured, generated, refined or used upon,
            about or beneath the Property by the Tenant Group, without the prior
            written consent of Landlord. From time to time during the term of
            this Lease, Tenant may request Landlord's approval of Tenant's use
            of other Hazardous Materials, which approval may be withheld in
            Landlord's sole discretion. Tenant shall, prior to the Commencement
            Date, provide to Landlord for those Hazardous Materials described on
            Exhibit "F" (a) a description of handling, storage, use and disposal
            procedures, and (b) all "community right to know" plans or
            disclosures and/or emergency response plans which Tenant is required
            to supply to local governmental agencies pursuant to any
            Environmental Requirements.

      B.    Tenant shall not cause or permit the commission by the Tenant Group,
            of a violation of any Environmental Requirements upon, about or
            beneath the Property.

      C.    Tenant shall neither create, cause to be created, allow nor permit
            the Tenant Group to create any lien, security interest or other
            charge or encumbrance of any kind with respect to the Property,
            including without limitation, any lien imposed pursuant to section
            107(f) of the Superfund Amendments and Reauthorization Act of 1986
            (42 U.S.C. section 9607(1) or any similar state statute.

      D.    Tenant shall not install, operate or maintain any above or below
            grade tank, sump, pit, pond, lagoon or other storage or treatment
            vessel or devise on the Property, without Landlord's prior written
            consent, which consent may be withheld in Landlord's sole
            discretion.

8.3.  INDEMNITY.

      A.    In addition to indemnity provision in Section 8 of this Lease,
            Tenant, its successors, assigns and guarantors, agree to indemnify,
            defend, reimburse and hold harmless:

            (i)   Landlord; and

            (ii)  any other person who acquires title to all or a portion of the
                  Premises in any manner (including purchase at a foreclosure
                  sale) or who becomes entitled to exercise the rights and
                  remedies of Landlord under this Lease; and

            (iii) the directors, officers, shareholders, employees, partners,
                  agents, contractors, subcontractors, experts, licensees,
                  affiliates, lessees, mortgagees, trustees, heirs, devisees,
                  successors, assigns and invitees of such persons,

                                       7
<PAGE>   8
            from and against any and all Environmental Damages which exist as a
            result of the activities and negligence of the Tenant Group during
            Tenant's occupancy of the Property or which exist as a result of the
            breach of any warranty or covenant or the inaccuracy of any
            representation of Tenant contained in this Lease, or by Tenant's
            remediation of the Property or failure to meet its remediation
            obligations contained in this Lease.

      B.    The obligations contained in this Section 8 shall include, but not
            be limited to, the burden and expense of defending all claims, suits
            and administrative proceedings, even if such claims, suits or
            proceedings are groundless, false or fraudulent, and conducting all
            negotiations of any description, and paying and discharging, when
            and as the same become due, any and all judgments, penalties,
            consequential damages or other sums due against such indemnified
            persons. Landlord, at its sole expense, may employ additional
            counsel of its choice to associate with Tenant's counsel.

      C.    Landlord shall have the right, but not the obligation, to join and
            participate in, and control, if it so elects, any legal proceedings
            or actions initiated in connection with Tenant's activities.
            Landlord may also negotiate, defend, approve and appeal any action
            taken or issued by any applicable governmental authority with regard
            to contamination of the Property by a Hazardous Material.

      D.    The obligations of Tenant under this paragraph shall not be affected
            by any investigation by or on behalf of Landlord, or by any
            information which Landlord may have or obtain with respect thereto.

8.4.  OBLIGATION TO REMEDIATE.

      In addition to the obligation of Tenant to indemnify Landlord pursuant to
      this Lease, Tenant shall, upon approval and demand of Landlord, at its
      sole cost and expense and using contractors approved by Landlord, promptly
      take all actions to remediate the Property which are required by any
      Governmental Agency, or which are reasonably necessary to mitigate
      Environmental Damages or to allow full economic use of the Property, which
      remediation is necessitated from the presence upon, about or beneath the
      Property, at any time during or upon termination of this Lease, of a
      Hazardous Material or a violation of Environmental Requirements, existing
      as a result of the activities or negligence of the Tenant Group. Such
      actions shall include, but not be limited to, the investigation of the
      environmental condition of the Property, the preparation of any
      feasibility studies, reports or remedial plans, and the performance of any
      cleanup, remediation, containment, operation, maintenance, monitoring or
      restoration work, whether on or off the Property, which shall be performed
      in a manner approved by Landlord. Tenant shall take all actions necessary
      to restore the Property to the condition existing prior to the
      introduction of Hazardous Material upon, about or beneath the Property,
      notwithstanding any lesser standard of remediation allowable under
      applicable law or governmental policies.

8.5.  RIGHT TO INSPECT.

      Landlord shall, have the right in its sole and absolute discretion, but
      not the duty, to enter and conduct an inspection of the Property,
      including invasive tests, at any reasonable time to determine whether
      Tenant is complying with the terms of the Lease, including but not limited
      to the compliance of the Property and the activities thereon with
      Environmental Requirements and the existence of Environmental Damages as a
      result of the condition of the Property or surrounding properties and
      activities thereon. Landlord shall have the right, but not the duty, to
      retain any independent professional consultant (the "Consultant") to enter
      the Property to conduct such an inspection or to review any report
      prepared by or for Tenant concerning such compliance. The cost of the
      Consultant shall be paid by Landlord unless such investigation discloses a
      violation of any Environmental Requirement by the Tenant Group or the
      existence of a Hazardous Material on the Property or any other property
      caused by the activities or negligence of the Tenant Group (other than
      Hazardous Materials used in compliance with all Environmental Requirements
      and previously approved by Landlord), in which case Tenant shall pay the
      cost of the Consultant.

                                       8
<PAGE>   9
      Tenant hereby grants to Landlord, and the agents, employees, consultants
      and contractors of Landlord the right to enter the Property and to perform
      such tests on the Property as are reasonably necessary to conduct such
      reviews and investigations. Landlord shall use its best efforts to
      minimize interference with the business of Tenant.

8.6.  NOTIFICATION.

      If Tenant shall become aware of or receive notice or other communication
      concerning any actual, alleged, suspected or threatened violation of
      Environmental Requirements, or liability of Tenant for Environmental
      Damages in connection with the Property or past or present activities of
      any person thereon, including, but not limited to, notice or other
      communication concerning any actual or threatened investigation, inquiry,
      lawsuit, claim, citation, directive, summons, proceeding, complaint,
      notice, order, writ, or injunction, relating to same, then Tenant shall
      deliver to Landlord within ten (10) days of the receipt of such notice or
      communication by Tenant, a written description of said violation,
      liability, or actual or threatened event or condition, together with
      copies of any documents evidencing same. Receipt of such notice shall not
      be deemed to create any obligation on the part of Landlord to defend or
      otherwise respond to any such notification.

      If requested by Landlord, Tenant shall disclose to Landlord the names and
      amounts of all Hazardous Materials other than general office supplies
      referred to in this Section 8.2, which were used, generated, treated,
      handled, stored or disposed of on the Property or which Tenant intends to
      use, generate, treat, handle, store or dispose of on the Property. The
      foregoing in no way shall limit the necessity for Tenant obtaining
      Landlord's consent pursuant to Section 8.2 of this Lease.

8.7.  SURRENDER OF PREMISES.

      In the ninety (90) days prior to the expiration or termination of the
      Lease Term, and for up to ninety (90) days after Tenant fully surrenders
      possession of the Property, Landlord may have an environmental assessment
      of the Property performed in accordance with Section 8.5 of this Lease.
      Tenant shall perform, at its sole cost and expense, any clean-up or
      remedial work recommended by the Consultant which is necessary to remove,
      mitigate or remediate any Hazardous Materials and/or contaminations of the
      Property caused by the activities or negligence of the Tenant Group.

8.8.  ASSIGNMENT AND SUBLETTING.

      In the event the Lease provides that Tenant may assign the Lease or sublet
      the Property subject to Landlord's consent and/or certain other
      conditions, and if the proposed assignee's or sublessee's activities in or
      about the Property involve the use, handling, storage or disposal of any
      Hazardous Materials other than those used by Tenant and in quantities and
      processes similar to Tenant's uses in compliance with the Lease, (i) it
      shall be reasonable for Landlord to withhold its consent to such
      assignment or sublease in light of the risk of contamination posed by such
      activities and/or (ii) Landlord may impose an additional condition to such
      assignment or sublease which requires Tenant to reasonably establish that
      such assignee's or sublessee's activities pose no materially greater risk
      of contamination to the Property than do Tenant's permitted activities in
      view of the (a) quantities, toxicity and other properties of the Hazardous
      Materials to be used by such assignee or sublessee, (b) the precautions
      against a release of Hazardous Materials such assignee or sublessee agrees
      to implement, (c) such assignee's or sublessee's financial condition as it
      relates to its ability to fund a major clean-up and (d) such assignee's or
      sublessee's policy and historical record respecting its willingness to
      respond to the clean up of a release of Hazardous Materials. Landlord
      shall also have its approval rights as set forth in Section 19.

8.9.  SURVIVAL OF HAZARDOUS MATERIALS OBLIGATION.

      Tenant's breach of any of its covenants or obligations under this Lease
      shall constitute a material default under the Lease. The obligations of
      Tenant under this Lease shall survive the expiration or earlier
      termination of the Lease without any limitation, and shall constitute
      obligations that are independent and severable from Tenant's covenants and
      obligations to pay rent under the Lease.

                                       9
<PAGE>   10
9.    SIGNAGE. All signage shall comply with rules and regulations as set forth
      by City of Phoenix and the rules and regulations as set forth by Landlord,
      as may be modified from time to time. Current rules and regulations
      relating to signs are described on Exhibit D. Tenant shall place no window
      covering (e.g., shades, blinds, curtains, drapes, screens, paper,
      cardboard, or tinting materials), stickers, signs, lettering, banners or
      advertising or display material on or near exterior windows or doors if
      such materials are visible from the exterior of the Premises, without
      Landlord's prior written consent. Similarly, Tenant may not install any
      alarm boxes, foil protection tape or other security equipment on the
      Premises without Landlord's prior written consent. Any material violating
      this provision may be destroyed by Landlord without compensation to
      Tenant.

10.   PERSONAL PROPERTY TAXES. Tenant shall pay before delinquency all taxes,
      assessments, license fees and public charges levied, assessed or imposed
      upon its business operations as well as upon all trade fixtures, leasehold
      improvements, merchandise and other personal property in or about the
      Premises.

11.   PARKING. Landlord grants to Tenant and Tenant's customers, suppliers,
      employees and invitees, a non-exclusive license to use the designated
      parking areas in the Project for the use of motor vehicles during the term
      of this Lease. Landlord reserves the right at any time to grant similar
      non-exclusive use to other tenants, to promulgate rules and regulations
      relating to the use of such parking areas, including reasonable
      restrictions on parking by tenants and employees, to designate specific
      spaces for the use of any tenant, to make changes in the parking layout
      from time to time, and to establish reasonable time limits on parking.
      Overnight parking is prohibited and any vehicle violating this or any
      other vehicle regulation adopted by Landlord is subject to removal at the
      owner's expense. Tenant shall have forty (40) covered reserved spaces at a
      charge of Thirty and 00/100 Dollars ($30.00) per month, per space. The
      spaces shall be provided free of charge for the first three (3) years of
      this Lease Agreement.

12.   UTILITIES. Tenant shall pay for all heat, light, power, electricity,
      telephone or other service metered, chargeable or provided to the Premises
      and Tenant's Share of Expenses as defined in Section 4.c. Landlord
      reserves the right to install separate meters for any such utility and to
      charge Tenant for the cost of such installation.

13.   MAINTENANCE. Landlord shall maintain, in good condition, the structural
      parts of the Premises, which shall include only the foundations, bearing
      and exterior walls (excluding glass), subflooring and roof (excluding
      skylights), the unexposed electrical, plumbing and sewerage systems,
      including those portions of the systems lying outside the Premises,
      gutters and down spouts on the Building and the heating, ventilating and
      air conditioning system servicing the Premises; provided, however, the
      cost of all such maintenance shall be considered "Expenses" for purposes
      of Section 4.c. Except as provided above, Tenant shall maintain and repair
      the Premises in good condition, including, without limitation, maintaining
      and repairing all walls, lights, storefronts, floors, ceilings, interior
      and exterior doors, exterior and interior windows and fixtures and
      interior plumbing as well as damage caused by Tenant, its agents,
      employees or invitees. Upon expiration or termination of this Lease,
      Tenant shall surrender the Premises to Landlord in the same condition as
      existed at the commencement of the term, except for reasonable wear and
      tear or damage caused by fire or other casualty for which Landlord has
      received all funds necessary for restoration of the Premises from
      insurance proceeds.

14.   ALTERATIONS. Tenant shall not make any alterations to the Premises, or to
      the Project, including any changes to the existing landscaping, without
      Landlord's prior written consent. If Landlord gives its consent to such
      alterations, Landlord may post notices in accordance with the laws of the
      state in which the premises are located. Any alterations made shall remain
      on and be surrendered with the Premises upon expiration or termination of
      this Lease, except that Landlord may, within 30 days before or 30 days
      after expiration of the term, elect to require Tenant to remove any
      alterations which Tenant may have made to the Premises. If Landlord so
      elects, at its own cost Tenant shall restore the Premises to the condition
      designated by Landlord in its election, before the last day of the term or
      within 30 days after notice of its election is given, whichever is later.

      Should Landlord consent in writing to Tenant's alteration of the Premises,
      Tenant shall contract with a contractor approved by Landlord for the
      construction of such alterations, shall secure all appropriate
      governmental approvals and permits, and shall complete such alterations
      with due diligence in compliance

                                       10
<PAGE>   11
      with plans and specifications approved by Landlord. All such construction
      shall be performed in a manner which will not interfere with the quiet
      enjoyment of other tenants of the Project. Tenant shall pay all costs for
      such construction and shall keep the Premises and the Project free and
      clear of all mechanics' liens which may result from construction by
      Tenant.

15.   RELEASE AND INDEMNITY. As material consideration to Landlord, Tenant
      agrees that Landlord shall not be liable to Tenant for any damage to
      Tenant or Tenant's property from any cause, and Tenant waives all claims
      against Landlord for damage to persons or property arising for any reason,
      except for damage resulting directly from Landlord's breach of its express
      obligations under this Lease which Landlord has not cured within a
      reasonable time after receipt of written notice of such breach from
      Tenant. Tenant shall indemnify and hold Landlord harmless from all damages
      arising out of any damage to any person or property occurring in, on or
      about the Premises or Tenant's use of the Premises or Tenant's breach of
      any term of this Lease.

16.   INSURANCE. Tenant, at its cost, shall maintain public liability and
      property damage insurance and products liability insurance with a single
      combined liability limit of $1,000,000, insuring against all liability of
      Tenant and it representatives, employees, invitees, and agents arising out
      of or in connection with Tenant's use or occupancy of the Premises. Public
      liability insurance, products liability insurance and property damage
      insurance shall insure performance by Tenant of the indemnity provisions
      of Section 15. Landlord and the Property Manager shall be named as
      additional insured and the policy shall contain cross-liability
      endorsements. On all its personal property, at its costs, Tenant shall
      maintain a policy of standard fire and extended coverage insurance with
      vandalism and malicious mischief endorsements and "all risk" coverage on
      all Tenant's improvements and alterations, including without limitation,
      all items of Tenant responsibility described in Section 13 in or about the
      Premises, to the extent of at least 90% of their full replacement value.
      The proceeds from any such policy shall be used by Tenant for the
      replacement of personal property and the restoration of Tenant's
      improvements or alterations. All insurance required to be provided by
      Tenant under this Lease shall release Landlord from any claims for damage
      to any person or the Premises and the Project, and to Tenant's fixtures,
      personal property, improvements and alterations in or on the Premises or
      the Project, caused by or resulting from risks insured against under any
      insurance policy carried by Tenant in force at the time of such damage.
      All insurance required to be provided by Tenant under this Lease: (a)
      shall be issued by Insurance companies authorized to do business in the
      state in which the premises are located with a financial rating of at
      least an A+ XII status as rated in the most recent edition of Best's
      Insurance Reports; (b) shall be issued as a primary policy; and (c) shall
      contain an endorsement requiring at least 30 days prior written notice of
      cancellation to Landlord and Landlord's lender, before cancellation or
      change in coverage, scope or amount of any policy. Tenant shall deliver a
      certificate or copy of such policy together with evidence of payment of
      all current premiums to Landlord within 30 days of execution of this
      Lease. Tenant's failure to provide evidence of such coverage to Landlord
      may, in Landlord's sole discretion, constitute a default under this Lease.
      Landlord shall provide proof of insurance upon written request by the
      Tenant.

17.   DESTRUCTION. If during the term of this Lease, the Premises or Project are
      more than 10% destroyed from any cause, or rendered inaccessible or
      unusable from any cause, Landlord may, in its sole discretion, terminate
      this Lease by delivery of notice to Tenant within 30 days of such event
      without compensation to Tenant. If in Landlord's estimation, the Premises
      cannot be restored within 90 days following such destruction, the Landlord
      shall notify Tenant and Tenant may terminate this Lease by delivery of
      notice to Landlord within 30 days of receipt of Landlord's notice. If
      Landlord does not terminate this Lease and if in Landlord's estimation the
      Premises can be restored within 90 days, then Landlord shall commence to
      restore the Premises in compliance with then existing laws and shall
      complete such restoration with due diligence. In such event, this Lease
      shall remain in full force and effect, but there shall be an abatement of
      rent between the date of destruction and the date of completion of
      restoration, based on the extent to which destruction interferes with
      Tenant's use of the Premises.

18.   CONDEMNATION.

      a.    Definitions. The following definitions shall apply. (1)
            "Condemnation" means (a) the exercise of any governmental power of
            eminent domain, whether by legal proceedings or otherwise by
            condemnor and (b) the voluntary sale or transfer by Landlord to any
            condemnor either under

                                       11
<PAGE>   12
            threat of condemnation or while legal proceedings for condemnation
            are proceeding; (2) "Date of Taking" means the date the condemnor
            has right to possession of the property being condemned; (3) "Award"
            means all compensation, sums or anything of value awarded, paid or
            received on a total or partial condemnation; and (4) "Condemnor"
            means any public or quasi-public authority, or private corporation
            or individual, having power of condemnation.

      b.    Obligations to be Governed by Lease. If during the term of the Lease
            there is any taking of all or any part of the Premises or the
            Project, the rights and obligations of the parties shall be
            determined pursuant to this Lease.

      c.    Total or Partial Taking. If the Premises are totally taken by
            condemnation, this Lease shall terminate on the date of taking. If
            any portion of the Premises is taken by condemnation, this Lease
            shall remain in effect, except that Tenant can elect to terminate
            this Lease if the remaining portion of the Premises is rendered
            unsuitable for Tenant' s continued use of Premises. If Tenant elects
            to terminate this Lease, Tenant must exercise its right to terminate
            by giving notice to Landlord within 30 days after the nature and
            extent of the taking have been finally determined. If Tenant elects
            to terminate this Lease, Tenant shall also notify Landlord of the
            date of termination, which date shall not be earlier than 30 days
            nor later than 90 days after Tenant has notified Landlord of its
            election to terminate; except that this Lease shall terminate on the
            date of taking if the date of taking falls on a date before the date
            of termination as designated by Tenant. If any portion of the
            Premises is taken by condemnation and this Lease remains in full
            force and effect, on the date of taking the rent shall be reduced by
            an amount in the same ratio as the total number of square feet in
            the Premises taken bears to the total number of square feet in the
            Premises immediately before the date of taking.

19.   ASSIGNMENT OR SUBLEASE. Tenant shall not assign or encumber its interest
      in this Lease or the Premises or sublease all or any part of the Premises
      or allow any other person or entity (except Tenant's authorized
      representatives, employees, invitees or guests) to occupy or use all or
      any part of the Premises without first obtaining Landlord's consent which
      consent Landlord may withhold or condition in its sole discretion. Any
      assignment, encumbrance or sublease without Landlord's written consent
      shall be voidable and at Landlord's election, shall constitute a default.
      If Tenant is a partnership, a withdrawal or change, voluntary, involuntary
      or by operation of law of any partner, or the dissolution of the
      partnership, shall be deemed a voluntary assignment. If Tenant consists of
      more than one person, a purported assignment, voluntary or involuntary or
      by operation of law from one person to the other shall be deemed a
      voluntary assignment. If Tenant is a corporation, any dissolution, merger,
      consolidation or other reorganization of Tenant, or sale or other transfer
      of a controlling percentage of the capital stock of Tenant, or the sale of
      at least 25% of the value of the assets of Tenant shall be deemed a
      voluntary assignment. The phrase "controlling percentage" means ownership
      of and right to vote stock possessing at least 25% of the total combined
      voting power of all classes of Tenant's capital stock issued, outstanding
      and entitled to vote for election of directors. This Section 19 shall not
      apply to corporation the stock of which is traded through an exchange or
      over the counter. All rent received by Tenant from its subtenants in
      excess of the rent payable by Tenant to Landlord under this Lease shall be
      paid to Landlord, or any sums to be paid by an assignee to Tenant in
      consideration of the assignment of this Lease shall be paid to Landlord.
      If Tenant requests Landlord to consent to a proposed assignment or
      subletting, Tenant shall pay to Landlord, whether or not consent is
      ultimately given, $100 or Landlord's reasonable attorneys fees incurred in
      connection with such request, whichever is greater. No interest of Tenant
      in this Lease shall be assignable by involuntary assignment through
      operation of law (including without limitation the transfer of this Lease
      by testacy or intestacy). Each of the following acts shall be considered
      an involuntary assignment: (a) if Tenant is or becomes bankrupt or
      insolvent, makes an assignment for the benefit of creditors, or institutes
      proceedings under the Bankruptcy Act in which Tenant is the bankrupt; or
      if Tenant is a partnership or consists of more than one person or entity,
      if any partner of the partnership or the person or entity is or becomes
      bankrupt or insolvent, or makes an assignment for the benefit of
      creditors; or (b) if a writ of attachment or execution is levied on this
      Lease; or if in any proceeding or action to which Tenant is a party, a
      receiver is appointed with authority to take possession of the Premises.
      An involuntary assignment shall constitute a default by Tenant and
      Landlord shall have the right to elect to terminate this Lease, in which
      case this Lease shall not be treated as an asset of Tenant.

                                       12
<PAGE>   13
20.   DEFAULT. The occurrence of any of the following shall constitute a default
      by Tenant: (a) a failure to pay rent or other charge when due and Landlord
      has sent to Tenant a three-day written notice of non payment; (b)
      abandonment and vacation of the Premises (failure to occupy and operate
      the Premises for ten consecutive days shall be deemed an abandonment and
      vacation); or (c) failure to perform any other provision of this Lease.

21.   LANDLORD'S REMEDIES. Landlord shall have the following remedies if Tenant
      is in default. (These remedies are not exclusive; they are cumulative and
      in addition to any remedies now or later allowed by law): Landlord may
      terminate Tenant's rights to possession of the Premises at any time. No
      act by Landlord other than giving notice to Tenant shall terminate this
      Lease. Acts of maintenance, efforts to relet the Premises, or the
      appointment of a receiver on Landlord's initiative to protect Landlord's
      interest under this Lease shall not constitute a termination of Tenant's
      right to possession. Upon termination of Tenant's right to possession,
      Landlord has the light to recover from Tenant: (1) the worth of the unpaid
      rent that had been earned at the time of termination of Tenant's right to
      possession; (2) the worth of the amount of the unpaid rent that would have
      been earned after the date of termination of Tenant's right to possession;
      (3) any other amount, including but not limited to, expenses incurred to
      relet the premises, court, attorney and collection costs, necessary to
      compensate Landlord for all detriment caused by Tenant's default. "The
      Worth," as used for Item 21(1) in this Paragraph 21 is to be computed by
      allowing interest at the rate of 18 percent per annum. If the interest
      rate specified in this Lease is higher than the rate permitted by law, the
      interest rate is hereby decreased to the maximum legal interest rate
      permitted by law. The Worth is used for Item 21(2) in this Paragraph 21 is
      to be computed by discounting the amount at the discount rate of the
      Federal Reserve Bank of San Francisco at the time of termination of
      Tenant's right of possession.

22.   ENTRY ON PREMISES. Landlord and its authorized representatives shall have
      the right to enter the Premises at all reasonable times for any of the
      following purposes: (a) to determine whether the Premises are in good
      condition and whether Tenant is complying with its obligations under this
      Lease; (b) to do any necessary maintenance and to make any restoration to
      the Premises or the Project that Landlord has the right or obligation to
      perform; (c) to post "for sale" signs at any time during the term, to post
      "for rent" or "for lease" signs during the last 90 days of the term, or
      during any period while Tenant is in default; (d) to show the Premises to
      prospective brokers, agents, buyers, tenants or persons interested in
      leasing or purchasing the Premises, at any time during the term; or (e) to
      repair, maintain or improve the Project and to erect scaffolding and
      protective barricades around and about the Premises but not so as to
      prevent entry to the premises and to do any other act or thing necessary
      for the safety or preservation of the Premises or the Project. Landlord
      shall not be liable in any manner for any inconvenience, disturbance, loss
      of business, nuisance or other damage arising out of Landlord's entry onto
      the Premises as provided in this Section 22. Tenant shall not be entitled
      to an abatement or reduction of rent if Landlord exercises any rights
      reserved in this Section 22. Landlord shall conduct his activities on the
      Premises as provided herein in a manner that will cause the least
      inconvenience, annoyance or disturbance to Tenant. For each of these
      purposes, Landlord shall at all times have and retain a key with which to
      unlock all the doors in, upon and about the Premises, excluding Tenant's
      vaults and safes. Tenant shall not alter any lock or install a new or
      additional lock or bolt on any door of the Premises without prior written
      consent of Landlord. If Landlord gives its consent, Tenant shall furnish
      Landlord with a key for any such lock.

23.   SUBORDINATION. Without the necessity of any additional document being
      executed by Tenant for the purpose of effecting a subordination, and at
      the election of Landlord or any mortgagee or any beneficiary of a Deed of
      Trust with a lien on the Project or any ground lessor with respect to the
      Project, this Lease shall be subject and subordinate at all times to (a)
      all ground leases or underlying leases which may now exist or hereafter be
      executed affecting the Project, and (b) the lien of any mortgage or deed
      of trust which may now exist or hereafter be executed in any amount for
      which the Project, ground leases or underlying leases, or Landlord's
      interest or estate in any of said items is specified as security. In the
      event that any ground lease or underlying lease terminates for any reason
      or any mortgage or Deed of Trust is foreclosed or a conveyance in lieu of
      foreclosure is made for any reason, Tenant shall, notwithstanding any
      subordination, attorn to and become the Tenant of the successor in
      interest to Landlord, at the option of such successor in interest. Tenant
      covenants and agrees to execute and deliver, upon demand by Landlord and
      in the form requested by Landlord any additional documents evidencing the
      priority or subordination of this Lease with respect to any such ground
      lease or underlying leases or the lien of any such mortgage or

                                       13
<PAGE>   14
      Deed of Trust. Tenant hereby irrevocably appoints Landlord as
      attorney-in-fact of Tenant to execute, deliver and record any such
      document in the name and on behalf of Tenant.

      Tenant, within ten days from notice from Landlord, shall execute and
      deliver to Landlord, in recordable form, certificates stating that this
      Lease is not in default, is unmodified and in full force and effect, or in
      full force and effect as modified, and stating the modifications. This
      certificate should also state the amount of current monthly rent, the
      dates to which rent has been paid in advance, and the amount of any
      security deposit and prepaid rent. Failure to deliver this certificate to
      Landlord within ten days shall be conclusive upon Tenant that this Lease
      is in full force and effect and has not been modified except as may be
      represented by Landlord.

24.   NOTICE. Any notice, demand, request, consent, approval or communication
      desired by either party or required to be given, shall be in writing and
      served either personally or sent by prepaid certified first class mail,
      addressed as set forth in Section 1. Either party may change its address
      by notification to the other party. Notice shall be deemed to be
      communicated 48 hours from the time of mailing, or from the time of
      service as provided in this Section 24.

25.   WAIVER. No delay or omission in the exercise of any right or remedy by
      Landlord shall impair such right or remedy or be construed as a waiver. No
      act or conduct of Landlord, including without limitation, acceptance of
      the keys to the Premises, shall constitute an acceptance of the surrender
      of the Premises by Tenant before the expiration of the term. Only written
      notice from Landlord to Tenant shall constitute acceptance of the
      surrender of the Premises and accomplish termination of the Lease.
      Landlord's consent to or approval of any act by Tenant requiring
      Landlord's consent or approval shall not be deemed to waive or render
      unnecessary Landlord's consent to or approval of any subsequent act by
      Tenant. Any waiver by Landlord of any default must be in writing and shall
      not be a waiver of any other default concerning the same or any other
      provision of the Lease.

26.   SURRENDER OF PREMISES; HOLDING OVER. Upon expiration of the term, Tenant
      shall surrender to Landlord the Premises and all Tenant improvements and
      alterations in good condition, except for ordinary wear and tear and
      alterations Tenant has the right or is obligated to remove under the
      provisions of Section 14 herein. Tenant shall remove all personal property
      from the premises and, if required by Landlord at Landlord's option, shall
      remove including, without limitation, all wallpaper, paneling, and other
      decorative improvements or fixtures and shall perform all restoration made
      necessary by the removal of any alterations or Tenant's personal property
      before the expiration of the term, including for example, restoring all
      wall surfaces to their condition prior to the commencement of this Lease.
      Landlord can elect to retain or dispose of in any manner Tenant's personal
      property not removed from the Premises by Tenant prior to the expiration
      of the term. Tenant waives all claims against Landlord for any damage to
      Tenant resulting from Landlord's retention or disposition of Tenant's
      personal property. Tenant shall be liable to Landlord for Landlord's costs
      for storage, removal or disposal of Tenant's personal property. If Tenant,
      with Landlord's consent, remains in possession of the Premises after
      expiration or termination of the term, or after the date in any notice
      given by Landlord to Tenant terminating this Lease, such possession by
      Tenant shall be deemed to be a month-to-month tenancy terminable on
      written 30 day notice at any time, by either party. All provisions of this
      Lease, except those pertaining to term and rent, shall apply to the
      month-to-month tenancy. Tenant shall pay monthly rent in an amount equal
      to 125% of Rent for the last full calendar month during the regular term
      plus 100% of said last month's estimate of Tenant's share of Expenses
      pursuant to Section 4.c.3. If Tenant remains without consent, Landlord
      shall receive rent in an amount equal to 300% of rent for the last full
      month plus 100% at said last month's expenses pursuant to 4.c.3 plus all
      damages and costs associated with the unauthorized occupancy and forcible
      eviction process.

27.   LIMITATION OF LIABILITY. In consideration of the benefits accruing
      hereunder, Tenant agrees that in the event of any actual or alleged
      failure, breach or default of this Lease by Landlord, if Landlord is a
      partnership:

      a.    The sole and exclusive remedy shall be against the partnership and
            its partnership assets;

      b.    No partner of Landlord shall be sued or named as a party in any suit
            or action;

                                       14
<PAGE>   15
      c.    No service of process shall be made against any partner of Landlord;

      d.    No partner of Landlord shall be required to answer or otherwise
            plead to any service or process;

      e.    No judgment may be taken against any partner of Landlord;

      f.    Any judgment taken against any partner of Landlord shall be vacated
            and set aside at any time without hearing;

      g.    No writ of execution will ever be levied against the assets of any
            partner of Landlord;

      h.    These covenants and agreements are enforceable both by Landlord and
            also by any partner of Landlord.

      Tenant agrees that each of the foregoing provisions shall be applicable to
      any covenant or agreement either expressly contained in this Lease or
      imposed by statute or at common law.

28.    MISCELLANEOUS PROVISIONS.

      a.    TIME OF ESSENCE. Time is of the essence of each provision of this
            Lease.

      b.    SUCCESSOR. This Lease shall be binding on and inure to the benefit
            of the parties and their successors, except as provided in Section
            19 herein.

      c.    LANDLORD'S CONSENT. Any consent required by Landlord under this
            Lease must be granted in writing and may be withheld or conditioned
            by Landlord in its sole and absolute discretion.

      d.    COMMISSIONS. Each party represents that it has not had dealings with
            any real estate broker, finder or other person with respect to this
            Lease in any manner, except for the broker identified in Section 1,
            who shall be compensated by Landlord.

      e.    OTHER CHARGES. If Landlord becomes a party to any litigation
            concerning this Lease, the Premises or the Project, by reason of any
            act or omission of Tenant or Tenant's authorized representatives,
            Tenant shall be liable to Landlord for reasonable attorney's fees
            and court costs incurred by Landlord in the litigation. Should the
            court render a decision which is thereafter appealed by any party
            thereto, Tenant shall be liable to Landlord for reasonable
            attorney's fees and court costs incurred by Landlord in connection
            with such appeal.

            If either party commences any litigation against the other party or
            files an appeal of a decision arising out of or in connection with
            the Lease, the prevailing party shall be entitled to recover from
            the other party reasonable attorney's fees and cost of suit. If
            Landlord employs a collection agency to recover delinquent charges,
            Tenant agrees to pay all collection agency and attorneys' fees
            charged to Landlord in addition to rent, late charges, interest and
            other sums payable under this Lease. Tenant shall pay a charge of
            $75 to Landlord for preparation of a demand for delinquent rent.

      f.    LANDLORD'S SUCCESSORS. If in the event of a sale or conveyance by
            Landlord of the Project, the same shall operate to release Landlord
            from any liability under this Lease, and in such event Landlord's
            successor in interest shall be solely responsible for all
            obligations of Landlord under this Lease.

      g.    INTERPRETATION. This lease shall be construed and interpreted in
            accordance with the laws of the state in which the premises are
            located. This Lease constitutes the entire agreement between the
            parties with respect to the Premises and the Project, except for
            such guarantees or modifications as may be executed in writing by
            the parties from time to time. When required by the context of this
            Lease, the singular shall include the plural, and the masculine
            shall include the feminine and/or neuter. "Party" shall mean
            Landlord or Tenant. If more than one person or entity constitutes

                                       15
<PAGE>   16
            Landlord or Tenant, the obligations imposed upon that party shall be
            joint and several. The enforceability, invalidity or illegality of
            any provision shall not render the other provisions unenforceable,
            invalid or illegal.

29.   LEASE CANCELLATION OPTION: Tenant shall be given the one-time right to
      cancel this Lease at the end of the seventy-second (72nd) month, March 31,
      2006, by notifying Landlord, in writing, of its desire to cancel this
      Lease no later than nine (9) months prior to the cancellation date or June
      30, 2005. If Tenant elects to cancel on March 31, 2006, Tenant must
      surrender possession of said real property to Landlord together with all
      improvements thereon, except as may be hereinafter set forth:

      a.    Tenant shall be entitled to remove as its sole separate property
            from the Premises covered by said Lease all trade fixtures,
            furnishings, furniture and equipment located on said Premises and
            owned by Tenant provided, however, all of the foregoing shall be
            removed from the premises by no later than March 31, 2006.

      b.    If Tenant elects to cancel this Lease on March 31, 2006, Tenant
            shall pay to Landlord a penalty fee of $44,450.00, which is equal to
            one (1) month's rent (plus all applicable taxes) and all unamortized
            tenant improvement and lease commission expense.

30.   RIGHT OF FIRST OFFER:

      (1)   OFFER SPACE. During the first six (6) years of this Lease and
            subject to the prior rights of any existing tenants, Tenant shall
            have a one-time right of first offer ("Right of First Offer") to
            lease all, but not part, of the space located in Building #1, as
            shown crosshatched on Exhibit "B" (the "Offer Space") in an "as is"
            condition and subject to Paragraphs 2 through 9 of this section.

      (2)   CONDITIONS. At both the time Tenant exercises the Right of First
            Offer and at the Commencement Date for the Offer Space (defined in
            paragraph 7(a) below):

      (a)   The Lease must be in full force and effect;

      (b)   Tenant shall not be in default under the Lease; and

      (c)   Tenant's then current financial condition, as revealed by its most
            recent financial statements (which shall include quarterly and
            annual financial statements, including income statements, balance
            sheets, and cash flow statements), must demonstrate that either:

            (i)   Tenant's tangible net worth is at least equal to its tangible
                  net worth at the time this Lease was signed: or

            (ii)  Tenant meets the financial criteria reasonably acceptable to
                  Landlord. In addition, with respect to each guaranty of the
                  Lease (if any), Tenant shall deliver to Landlord an original,
                  signed, and notarized reaffirmation of each guarantor's
                  personal guaranty, in form and substance satisfactory to
                  Landlord.

      (3)   SPACE SUBJECT TO OFFER. Subject to the other terms of this section,
            after the entire Offer Space has "become available" for leasing by
            the Landlord (defined in paragraph 3(a)), Landlord shall not, during
            the Term of this Lease or any renewal or extension thereof, lease
            the Offer Space to another tenant without first offering Tenant the
            right to lease the Offer Space.

      (a)   AVAILABLE SPACE. The Offer Space shall be deemed to "become
            available" when the lease(s) or any options relating thereto for
            any current tenant(s) of all of the Offer Space expires or will
            expire within 6 months or is otherwise terminated.

      (b)   SPACE THAT'S NOT AVAILABLE. Notwithstanding Paragraph 3(a), Offer
            Space shall not be deemed to "become available" if the space is:

                                       16
<PAGE>   17
             (i)   Assigned or subleased by the current tenant of the space; or

             (ii)  Re-let by the current tenant of the space by renewal,
                   extension, or renegotiation; or

             (iii) Leased or transferred among entities or persons related to
                   Landlord (including, but not limited to, partners if Landlord
                   is a partnership, and shareholders if Landlord is a
                   corporation); or

             (iv)  Sold, including without limitation, a sale-and-leaseback.

(4)   LANDLORD NOTICE. Consistent with paragraph 3 above, Landlord shall not
      lease the Offer Space to another tenant unless and until Landlord has
      first offered the Offer Space to Tenant in writing (the "First Offer
      Leasing Notice") and Tenant rejects such offer or Tenant fails to satisfy
      any conditions of this section or a period of five (5) business days has
      elapsed from the date of the First Offer Leasing Notice without Tenant
      having notified Landlord in writing of its unconditional acceptance of
      such First Offer Leasing Notice and supplied Landlord with current
      financial statements pursuant to Paragraph 2(c), whichever event occurs
      first. The First Offer Leasing Notice shall contain the following
      information:

(a)   A copy of Exhibit B of this Lease showing the location of the Offer Space;

(b)   The date on which the Landlord expects the Offer Space to become
      available;

(c)   The increase in Rent as calculated pursuant to Paragraph 7(d) and the new
      Rent; and

(d)   The Tenant's increased pro rata share of common area maintenance expenses
      (CAM) including insurance and property taxes.

(5)   TENANT ACCEPTANCE. If Tenant timely delivers to Landlord, in accordance
      with the conditions of this section, written notice of Tenant's exercise
      of the Right of First Offer for all of the Offer Space (along with
      Tenant's financial statements pursuant to Paragraph 2(c) and Landlord
      determines that Tenant meets all of the conditions provided in this
      Clause, then the Offer Space shall be deemed added to the Premises and
      shall be subject to the terms and conditions in the Lease with the
      exception of those Lease modifications set forth in paragraph 7 below.

(6)   TENANT'S REJECTION OR FAILURE TO MEET CONDITIONS. Tenant's Right of First
      Offer is a one-time right only. If Tenant declines or fails to duly and
      timely exercise its Right of First Offer or fails to meet all of the
      conditions provided in this section, Landlord shall thereafter be free to
      lease the Offer Space in portions or in its entirety to any third-party
      tenant at any time without regard to the restrictions in this section and
      on the terms and conditions contained in the First Offer Leasing Notice or
      on any other terms and conditions that Landlord thereafter negotiates,
      without further obligation to Tenant.

(7)   CHANGES TO LEASE. If Tenant leases the Offer Space pursuant to the terms
      of this section, all the obligations, terms, and conditions under the
      Lease shall also apply to the Offer Space except that:

(a)   COMMENCEMENT DATE. The commencement date for the Lease for the Offer Space
      (the "Commencement Date for the Offer Space") shall be the day the Offer
      Space is delivered to the Tenant broom clean, free of tenants or other
      occupants, and in its then "as is" condition;

(b)   THE PREMISES. As of the Commencement Date for the Offer Space, the Offer
      Space shall be deemed part of the Premises;

(c)   PRO RATA SHARE. As of the Commencement Date for the Offer Space, Tenant's
      pro rata share of common area maintenance expenses (CAM) plus insurance
      and real estate taxes shall be increased to an amount computed by dividing
      the amount deemed by Landlord to be the total of the rentable square
      footage of the Premises, including the Offer Space, by the amount deemed
      by Landlord to be the rentable

                                       17
<PAGE>   18
      square footage of the Property, and expressing the fraction as a
      percentage;

(d)   RENT. As of the Commencement Date for the Offer Space, the Rent shall be
      increased to an amount computed by multiplying the square footage dollar
      amount that Landlord desires to charge for such Offer Space by the number
      of rentable square feet deemed by Landlord to be contained in the Offer
      Space;

(e)   CANCEL LEASE CLAUSES. The following clauses and paragraphs of the Lease
      shall not apply to the Offer Space: Not Applicable.

(8)   CONFIRMING LEASE AMENDMENT. Within thirty (30) days after the Commencement
      Date for the Offer Space, Landlord and Tenant shall confirm the following
      in a written amendment to the Lease:

(a)   The Commencement Date for the Offer Space;

(b)   The location and size of the Offer Space that was leased by Tenant with an
      exhibit annexed showing that space crosshatched;

(c)   The new Rent to be paid by Tenant; and

(d)   Tenant's increased pro rata share of common area maintenance expenses
      (CAM) plus insurance and property taxes.

(9)   INVALID AFTER ASSIGNMENT/SUBLEASE. This Right of First Offer is personal
      to the Tenant and shall become null and void upon the occurrence of an
      assignment of the Lease or a sublet of all or a part of the Premises,
      regardless of whether Landlord approves such assignment or sublease.

                [Remainder of this page left intentionally blank]

                                       18
<PAGE>   19
      31.   WAIVER OF SUBROGATION. Each policy of insurance which Tenant obtains
            for the Premises and which Landlord obtains for the Building shall
            include a clause or endorsement denying the insurer any right of
            subrogation against the other party hereto to the extent rights have
            been waived by the insured party prior to the occurrence of injury
            or loss. If this endorsement is unobtainable without additional
            premium or charge, then the insured party shall immediately notify
            the other party and the other party shall have the right to pay the
            additional premium or charge for this endorsement. Landlord and
            Tenant each waive any rights of recovery against the other for
            injury or loss due to hazards covered by its own insurance, to the
            extent of the injury or loss covered thereby. Landlord and Tenant
            each waive any rights of recovery against the other for injury or
            loss due to hazards covered by its own insurance, to the extent of
            the injury or loss covered thereby unless injury or loss is due to
            the other party's intentional conduct or gross negligence.

EXECUTED BY LANDLORD, this 9th day of November, 1999.

PRINCIPAL DEVELOPMENT INVESTORS, L.L.C, A DELAWARE LIMITED LIABILITY COMPANY
   By: Principal Life Insurance Company, an Iowa Corporation, Member

By:   /s/
      ________________________________________
        Jon M. Jacobsen
Title:  Director, C.R.E. Equities

By:   /s/
      ________________________________________
        Ted E. McWilliams
Title:  Assistant Director, Appraisal Services

EXECUTED BY TENANT, this ____ day of _______________, 19___.

QUALITY CARE SOLUTIONS, INC., A NEVADA CORPORATION.

By:   /s/
      ________________________________________
        Gregory S. Anderson
Title:  President and CEO

                                       19
<PAGE>   20
                                   EXHIBIT "A"

                                  THE PREMISES

Space Plan for approximately - 35,000 square feet at Mountain Vista Commercial
Center 14647 South 50th Street, Building 1 Suite 150 , Phoenix, Arizona, 85044.

                                       20
<PAGE>   21
                                   EXHIBIT "C"

                               TENANT IMPROVEMENTS

Please see Work Letter (Exhibit "G") and Space Plan Drawings (Exhibit "I") for
complete information regarding the Tenant Improvements. T.

                                       21
<PAGE>   22
                                   EXHIBIT "D"

                                  SIGN CRITERIA

                      BUTTES BUSINESS CENTER I & II, TEMPE

PLEASE SEE ATTACHED INFORMATION.

                                       22
<PAGE>   23
                                   EXHIBIT "E"

                 CERTIFIED COPY OF CORPORATE RESOLUTION TO LEASE

      This undersigned, as Secretary of Quality Care Solutions, Inc., a
corporation organized and existing under the laws of the state of Nevada, hereby
certifies that at a meeting of the Board of Directors of such corporation, duly
called and held on the day of September 14, 1999, at which meeting a quorum of
said Board was present and acting throughout, the following resolution was duly
adopted by the unanimous vote of all the Directors present, and the same has not
since been rescinded or modified, and is presently in full force and effect;

                  WHEREAS, this corporation desires to enter into a lease (the
                  Lease") with PRINCIPAL DEVELOPMENT INVESTORS, L.L.C.,
                  (Landlord") wherein Landlord will lease to this corporation as
                  tenant the premises commonly known as 14647 South 50th Street,
                  Building #3, Suite #150, Phoenix, Arizona;

                  NOW, THEREFORE, BE IT RESOLVED, that the President, any Vice
                  President, any Assistant Vice President, the Secretary, the
                  Treasurer or any Assistant Secretary or Assistant Treasurer of
                  this corporation, acting together or any one acting alone, be,
                  and they hereby are, authorized on behalf of and in the name
                  of this corporation to enter into the Lease, for such time and
                  upon such terms as such officers, or any one of them acting
                  alone, may agree upon in their or his discretion.

                  RESOLVED FURTHER, that the President, any Vice President, any
                  Assistant Vice President, the Secretary, the Treasurer or any
                  Assistant Secretary or Assistant Treasurer of this corporation
                  are authorized to execute the Lease, and such other
                  instruments or documents as such officer or officers in their
                  discretion may deem necessary or desirable in connection with
                  such Lease.

                  RESOLVED FURTHER, that this corporation ratifies the actions
                  previously taken by the officers of this corporation, or any
                  one of them acting alone, in connection with the obtaining of
                  said Lease, actions taken to comply with requirements of
                  Landlord, and all other actions taken incidental thereto.

                  RESOLVED FURTHER, that the authority conferred upon the
                  aforesaid officers by this resolution shall remain in full
                  force and effect until written notice of revocation by further
                  resolution of the Board of Directors shall have been received
                  by said Landlord, and that a copy of this resolution certified
                  by the Secretary be delivered to said Landlord.

                        The undersigned further certifies that the officers of
this corporation hereunder set forth have been duly elected and hold the
officers specified with this corporation, and that the signature set forth
beside each person's name is the true signature of such person:

<TABLE>
<CAPTION>
       TITLE                TYPED NAME                 SIGNATURE
<S>                     <C>                          <C>
President & CEO         Gregory S. Anderson          /s/

Executive VP, Founder   J. Mikel Echeverria          /s/

Senior VP, CFO          Robert F. Theilmann          /s/
</TABLE>

IN WITNESS WHEREOF, this certification has been signed on behalf of this
corporation by its Secretary as of this ___________ day of
________________________, 19___.

                                       /s/
                                          __________________________________
                                                                   Secretary

                                       23
<PAGE>   24
                                   EXHIBIT "F"

                   HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE

Your cooperation in this matter is appreciated. Initially, the information
provided by you in this Hazardous Materials Disclosure Certificate is necessary
for the Landlord (identified below) to evaluate and finalize a lease agreement
with you as Tenant. After a lease agreement is signed by you and the Landlord
(the Lease Agreement), on an annual basis in accordance with the provisions of
Section 8 of the signed Lease Agreement, you are to provide an update to the
information initially provided by you in this certificate. The information
contained in the initial Hazardous Materials Disclosure Certificate and each
annual certificate provided by you thereafter will be maintained in
confidentiality by Landlord subject to release and disclosure as required by (i)
any lenders and owners and their respective environmental consultants, (ii) any
prospective purchaser(s) of all or any portion of their property on which the
Premises are located, (iii) Landlord to defend itself or its lenders, partners
or representatives against any claim or demand, and (iv) any laws, rules
regulations, orders, decrees, or ordinances, including, without limitation,
court orders or subpoenas. Any and all capitalized terms used herein, which are
not otherwise defined herein, shall have the same meaning ascribed to such term
in the signed Lease Agreement. Any questions regarding this certificate should
be directed to, and when completed, the certificate should be delivered to:

Landlord: PRINCIPAL DEVELOPMENT INVESTORS, L.L.C.
          C/O METRO COMMERCIAL PROPERTIES
          4411 SOUTH RURAL ROAD, SUITE 201
          TEMPE, ARIZONA 85282
          Attn: Patrick H. Althoff, Property Manager
          Phone: 480-838-8820

Name of (Prospective) Tenant: Quality Care Solutions, Inc.

Mailing Address:

Contact Person, Title and Telephone Number(s):

Contact Person for Hazardous Waste Materials Management and Manifests and
Telephone Number(s):

Address of (Prospective) Premises: 14647 South 50" Street, Building 1, Suite
150, Phoenix, Arizona, 85044.

Length of (Prospective) initial Term: 120 Months

1. GENERAL INFORMATION:

      Describe the initial proposed operations to take place in, on, or about
the Premises, including, without limitation, principal products processed,
manufactured or assembled, services and activities to be provided or otherwise
conducted. Existing Tenants should describe any proposed changes to ongoing
operations. (Attach additional sheets if necessary).

2. USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS

      2.1 Will any Hazardous Materials be used , generated , stored , or
disposed of in, on or about the Premises? (Note: Generally all storage will be
required to be fully contained). Existing Tenants should describe any Hazardous
Materials which continue to be used, generated, stored or disposed of in, on or
about the Premises.

                                       24
<PAGE>   25
<TABLE>
<S>                                <C>              <C>
      Wastes                        Yes [ ]          No [X]
      Chemical Products             Yes [ ]          No [X]
      Other                         Yes [ ]          No [X]
</TABLE>

      If yes is marked attach all MSD's and please explain: (MSDS's
      Attached [ ]),

      2.2   If yes is marked in Section 2.1, attach a list of any
            Hazardous Materials to be used, generated, stored or
            disposed of in, on or about the Premises, including the
            applicable hazard class and an estimate of the
            quantities of each such Hazardous Materials at any given
            time; estimated annual throughout; the proposed
            location(s) and method of storage, including container
            sizes and types (excluding nominal amounts of ordinary
            household cleaners and janitorial supplies which are not
            regulated by any Environmental Law); and the proposed
            location(s) and method of disposal for each Hazardous
            Material, including, the estimated frequency, and the
            proposed contractors or subcontractors. Existing Tenants
            should attach a list of setting forth the information
            requested above and such list should include actual data
            from ongoing operations and the identification of any
            variations in such information from the prior year's
            certificate. Attach a Site Plan indicating all storage
            areas - (Attached [ ]).

3.    STORAGE TANKS AND SUMPS

      3.1   Is any above or below ground storage of gasoline,
            diesel, petroleum, or other Hazardous Materials in tanks
            or sumps proposed in, on or about the Premises? Existing
            Tenants should describe any such actual or proposed
            activities, including any required SPCC Plan.

            Yes [ ]        No [X]

            If yes, please explain:

4.    WASTE MANAGEMENT

      4.1   Has your company been issued an EPA Hazardous Waste
            Generator I.D. Number? Existing Tenants should describe
            any additional identification numbers issued since the
            previous certificate.

            Yes [ ]        No [X]

            Describe RCRA status:

      4.2   Has your company filed a biennial or quarterly report as
            a hazardous waste generator? Existing Tenants should
            describe any new reports filed.

            Yes [ ]        No [X]

            If yes, attach a copy of the most recent report filed.
            (Attached [ ]).

5.    WASTEWATER TREATMENT AND DISCHARGE

      5.1 Will your company discharge wastewater or other wastes to:

<TABLE>
<S>                                      <C>
            __________ Storm drain?       __________ Sewer?
            __________ Surface water?     __________ Facility treatment plant?
</TABLE>

                                       25
<PAGE>   26
            __________ Grounds            __________ No wastewater or other
                       (i.e., compressor             wastes discharged
                       blow-down)

            Existing Tenants should indicate any actual discharges. If so,
            describe the nature of any proposed or actual discharge(s).
            (Note: Generally, discharges to storm drains will be
            prohibited without prior review and approval from Landlord).

6.    AIR DISCHARGES

      6.1   Do you plan for any air filtration systems or stacks to
            be used in your company's operations in, on or about the
            Premises that will discharge into the air; and will such
            air emissions be monitored? Existing Tenants should
            indicate whether or not there are any such air
            filtration systems or stacks in use in, on or about the
            Premises which discharge into the air and whether such
            air emissions are being monitored.

            Yes[ ]        No[X]

            If yes, please explain:

      6.2   Do you propose to operate any of the following types of
            equipment, or any other equipment requiring an air
            emissions permit? Existing Tenants should specify any
            such equipment being operated in, on or about the
            Premises.

<TABLE>
<S>                                      <C>
            __________ Spray booths(s)    __________ Incinerator(s)
            __________ Dip Tank(s)        __________ Dry-cleaning
            __________ Drying oven(s)     __________ Other (please describe)
                                          __________ No equipment Requiring Air Permits
</TABLE>

            If yes, please explain:

      6.3 Do any of your operations generate an obvious odor:

            Yes [ ]        No [X]

            If yes, please explain:

7.    HAZARDOUS MATERIALS DISCLOSURES

      7.1   Has your company prepared or will it be required to
            prepare a Hazardous Materials management plan
            ("Management Plan") pursuant to Fire Department or other
            governmental or regulatory agencies' requirements.
            Existing Tenants should indicate whether or not a
            Management Plan in required and has been prepared.

            Yes [ ]        No [X]

            If yes, attach a copy of the Management Plan. Existing
            Tenants should attach a copy of any required updates to
            the Management Plan.

                                       26
<PAGE>   27
      7.2   (CA Only) Are any of the Hazardous Materials, and in
            particular chemicals, proposed to be used in your
            operations in or about the premises regulated under
            Proposition #65? Existing tenants should indicate
            whether or not there are any new hazardous materials
            being used which are regulated under Proposition #65.

            Yes [ ]        No [X]

            If yes, please explain:

8.    ENFORCEMENT ACTIONS AND COMPLAINTS

      8.1   With respect to Hazardous Materials or Environmental
            Laws, has your company ever been subject to any agency
            enforcement actions, administrative orders, or consent
            decrees designated as a PRP or has your company received
            requests for information, notice or demand letters
            (cited in violation of any environmental regulation), or
            any other inquiries regarding its operations? Existing
            Tenants should indicate whether or not any such actions,
            orders or decrees have been, or are in the process of
            being, undertaken or if any such requests have been
            received.

            Yes [ ]        No [X]

            If yes, describe the actions, orders or decrees and any
            continuing compliance obligations imposed as a result of
            these actions, orders or decrees and also describe any
            requests, notices or demands, and attach a copy of all
            such documents. Existing Lessees should describe and
            attach a copy of any new actions, orders, decrees,
            requests, notices or demands not already delivered to
            Landlord pursuant to the provisions of Section 8 of the
            signed Lease Agreement.

      8.2   Have there ever been, or are there now pending, any
            lawsuits against your company regarding any
            environmental or health and safety concerns?

            Yes [ ]        No [X]

            If yes, describe any such lawsuits and attach copies of
            the complaint(s), cross-complaint(s),s pleadings and all
            other documents related thereto as requested by
            Landlord. Existing Tenants should describe and attach a
            copy of any new complaint(s), cross-complaint(s),
            pleadings and other related documents not already
            delivered to Landlord pursuant to the provisions of
            Section 8 of the signed Lease Agreement.

      8.3   Have there been any problems or complaints from the past
            or current landlords, adjacent tenants, owners or other
            neighbors at your company's current facility with regard
            to environmental or health and safety or odor concerns?
            Existing Tenants should indicate whether or not there
            have been any such problems or complaints from adjacent
            tenants, owners or other neighbors at, about or near the
            Premises.

            Yes [ ]        No [X]

            If yes, please describe. Existing Tenants should
            describe any such problems or complaints not already
            disclosed to lessor under the provisions of the signed
            lease.

                                       27
<PAGE>   28
      8.4   Please provide the addresses for each space leased by
            your Company in the past ten years the name and phone
            number of each Landlord.
                        5030 E. Sunrise
                        Phoenix, AZ 85044

9.    PERMITS AND LICENSES

      9.1   Attach copies of all Hazardous Materials permits and
            licenses issued to your company with respect to its
            proposed operations in, on or about the Premises,
            including, without limitation, any wastewater discharge
            permits, air emissions permits, and use permits or
            approvals. Existing Tenant should attach copies of any
            new permits and licenses as well as any renewals of
            permits or licenses previously issued.

10.   STATE AND LOCAL REQUIREMENTS

      10. 1 (This Section reserved for any requirements unique to a State
            or Local control agency)

The undersigned hereby acknowledges and agrees that this Hazardous
Materials Disclosure Certificate is being delivered in connection
with, and as required by, Lessor in connection with the evaluation
and finalization of a Lease Agreement and will be attached thereto
as an exhibit. The undersigned further acknowledges and agrees that
this Hazardous Materials Disclosure Certificate is being delivered
in accordance with, and as required by, the provisions of Section 8
of the Lease Agreement. The undersigned further acknowledges and
agrees that the Landlord and its partners, lenders and
representatives may, and will, rely upon the statements,
representations, warranties, and certifications made herein and the
truthfulness thereof in entering into the Lease Agreement and the
continuance thereof throughout the term, and any renewals thereof,
of the Lease Agreement. I _________________________ acting with full
authority to bind the (proposed) Tenant and on behalf of the
(proposed) Tenant, certify, represent and warrant that the
information contained in this certificate is true and correct.

      QUALITY CARE SOLUTIONS, INC., a Nevada Corporation

      By:  /s/
           ________________________________________

      Title: ______________________________________

      Date ________________________________________

                                       28
<PAGE>   29
                                   EXHIBIT "G"

                              WORK LETTER AGREEMENT

THIS WORK LETTER AGREEMENT is entered into as of the 20th day of October, 1999
by and between PRINCIPAL DEVELOPMENT INVESTORS, L.L.C., an Iowa corporation,
("Landlord') and QUALITY CARE SOLUTIONS, INC., a Nevada corporation, ("Tenant").

RECITALS:

A.    Concurrently with the execution of this Work Letter Agreement, Landlord
      and Tenant have entered into a lease (the "Lease) covering certain
      premises (the Premises') more particularly described in Exhibit A attached
      to the Lease.

B.    In order to induce Tenant to enter into the Lease (which is hereby
      incorporated by reference to the extent applicable) and in consideration
      of the mutual covenants hereinafter contained, Landlord and Tenant hereby
      agree as follows:

1.    COMPLETION SCHEDULE. With ten (10) days after the execution of the Lease
      and this Work Letter Agreement by Landlord and Tenant, Landlord shall
      deliver to Tenant, for Tenant's review and approval, a schedule (the "Work
      Schedule") setting forth a timetable for the planning and completion of
      the installation of the Tenant Improvements (as defined in Paragraph 2
      below) to be constructed in the Premises, and the estimated Commencement
      Date for the Term of the Lease. The Work Schedule shall set forth each of
      the various items of work to be done by or approval to be given by
      Landlord and Tenant in connection with the completion of the Tenant
      Improvements. The Work Schedule shall be submitted to Tenant for its
      approval and, upon approval by both Landlord and Tenant, the approved Work
      Schedule shall become the basis for completing the Tenant Improvements. If
      Tenant shall fail to approve the Work Schedule as it may be modified after
      discussions between Landlord and Tenant, within five (5) business days
      after the date the Work Schedule is first received by Tenant, Landlord
      may, at its option, terminate the lease and all of its obligations
      thereunder, and in the event of such a lease termination Tenant shall be
      responsible for all costs incurred hereunder and under the Lease,
      including but not limited to the cost of Tenant Improvements, lease
      commissions and design fees:

2.    Tenant Improvement Allowance.

      a.    Reference herein to "Tenant Improvements" shall include any or all
            of the following work to be done in the Premises pursuant to the
            Tenant Improvement Plans (defined in Paragraph 3 below):

            (i)   Installation within the Premises of all partitioning, doors,
                  floor coverings, ceiling, painting, millwork and similar
                  items;

            (ii)  All electrical wiring, lighting fixtures, outlets and
                  switches, and other electrical work to be installed within the
                  Premises, and additional panels or transformers to accommodate
                  Tenant's requirements;

            (iii) The furnishing and installation of all duct work, terminal
                  boxes, diffusers and accessories required for the completion
                  of the heating, ventilation and air conditioning systems
                  within the Premises;

            (iv)  All fire and life safety control systems, such as fire walls,
                  sprinklers, halon, fire alarms, including piping, wiring and
                  accessories, installed within the Premises;

            (v)   All plumbing, fixtures, pipes and accessories to be installed
                  within the Premises;

            (vi)  Testing and inspection costs;

            (vii) Contractor's fees, including but not limited to any fees based
                  on general conditions; and

                                       29
<PAGE>   30
            (viii) Construction management by Landlord's representative for the
                  supervision of the tenant improvement installation.

            In no event, however, shall the Tenant Improvements include trade
            fixtures, furniture or equipment of the Tenant.

(b)   Landlord hereby grants to Tenant a "Tenant Improvement Allowance" of
      Twenty-five and no/100 Dollars ($25.00) per square foot. Landlord's
      maximum contribution towards the Tenant Improvements shall be limited to
      said Tenant Improvement Allowance. The Tenant Improvement Allowance shall
      only be used for.

      (i)   Payment of the cost of preparing the space plan and the Tenant
            Improvement Plans, including mechanical, electrical, plumbing and
            structural drawings and of all other aspects necessary to complete
            the Tenant Improvement Plans. The Tenant Improvement Allowance will
            not be used for the payment of extraordinary design work or
            extraordinary or over standard improvements not included within the
            scope of Landlord's Building Standards or for payments to any other
            consultants, designers or architects other than Landlord's architect
            and/or space planner.

      (ii)  The payment of plan check, permit and license fees relating to
            construction of the Tenant Improvements.

      (iii) Construction of the Tenant Improvements; provided, however, that the
            Tenant Improvement Allowance will not be used for Non-Standard
            Improvements, if any, unless Landlord , in its sole discretion,
            agrees in writing to payment of some or all of the Non-Standard
            Improvements out of the Tenant Improvement Allowance.

      (iv)  All other costs expended by Landlord in the construction of the
            Tenant Improvements, including those costs incurred by Landlord for
            construction of elements of the Tenant Improvements in the Premises,
            which construction was performed by Landlord prior to execution of
            this Lease by Landlord and Tenant, which construction is for the
            benefit of tenants and is customarily performed by Landlord prior to
            execution of leases for space in the Project for reasons of
            economics (examples of such construction would include, but not be
            limited to, the extension of mechanical [including heating,
            ventilating and air condition systems] and electrical distribution
            systems outside of the core of the Building, wall construction,
            column enclosures and painting outside of the core of the Building,
            ceiling hanger wires and window treatment).

(c)   The costs of each item referenced in Paragraph 2(b) above shall be charged
      against the Tenant Improvement Allowance. In the event that the cost of
      installing the Tenant Improvements, as established by Landlord's final
      pricing schedule, shall exceed the Tenant Improvement Allowance, or if any
      of the Tenant Improvements are not to be paid out of the Tenant Allowance
      as provided in Paragraph 2(b) above, the excess shall be paid by Tenant to
      Landlord prior to the commencement of construction of the Tenant
      Improvements

(d)   In the event that, after the Tenant Improvement Plans have been prepared
      and a price therefore established by Landlord, Tenant shall require any
      changes or substitutions to the Tenant Improvement Plans, any additional
      costs related hereto shall be paid by Tenant to Landlord prior to the
      commencement of construction of the Tenant Improvements. Landlord shall
      have the right to decline Tenant's request for a change to the Tenant
      Improvement Plans if such changes are inconsistent with the provisions of
      Paragraph 3 and 4 below, or if the change would, in Landlord's opinion,
      unreasonably delay construction of the Tenant Improvements.

(e)   Any unused portion of the Tenant Improvement Allowance upon completion of
      the Tenant Improvements shall not be refunded to Tenant or be available to
      Tenant as a credit against any obligations of Tenant under the Lease.

                                       30
<PAGE>   31
3.    TENANT IMPROVEMENT PLANS. Immediately after the execution of the Lease and
      this Work Letter Agreement and subject to the time frames required by the
      Work Schedule, Tenant agrees to meet with Landlord's architect and/or
      space planner for the purpose of promptly finalizing a space plan for the
      layout of the Premises. Based upon such space plan, Landlord's architect
      shall prepare final working drawings and specifications for the Tenant
      Improvements. Such final working drawings and specifications are referred
      to herein as the "Tenant Improvement Plans." The Tenant Improvement Plans
      must be consistent with Landlord's standard specifications for tenant
      improvements for the project (the "Building Standard"), as the same may be
      changed from time to time by Landlord.

4.    NON-STANDARD TENANT IMPROVEMENTS. Landlord shall permit Tenant to deviate
      from the Building Standards for the Tenant Improvements (the "Non Standard
      Improvements"), provided that (a) the deviations shall not be of a lesser
      quality than the Building Standards; (b) the total lighting for the
      Premises shall not exceed 1.65 watts per Rentable Square Foot of the
      Premises; (c) the deviations conform to applicable governmental
      regulations and necessary governmental permits and approvals have been
      secured; (d) the deviations do not require building service beyond the
      levels normally provided to other tenants in the Project; and (e) Landlord
      has determined in its sole discretion that the deviations are of a nature
      and quality that are consistent with the overall objectives of Landlord
      for the Project.

      Any Non-Standard improvements made shall remain on and be surrendered with
      the Premises upon expiration of the Term, except that Landlord may, within
      30 days before or 30 days after expiration of the Term, elect to require
      Tenant to remove any Non-Standard Improvements which may have been made to
      the Premises. If Landlord so elects, at its own cost Tenant shall restore
      the Premises to the condition designated by Landlord in its election,
      before the last day of the term or within. 60 days after notice of its
      election is given, whichever is later.

5.    FINAL PRICING AND DRAWING SCHEDULE. After the preparation of the
      preliminary tenant improvement plan (attached as Exhibit "I") and after
      Tenant's written approval thereof, in accordance with the Work Schedule,
      Landlord shall cause its architect to prepare and submit to Tenant the
      Tenant Improvement Plans. The Tenant Improvement Plans shall be approved
      by Landlord and Tenant in accordance with the Work Schedule and shall
      thereafter be submitted to the appropriate governmental body by Landlord's
      architect for plan checking and the issuance of a building permit.
      Landlord, with Tenant's cooperation, shall cause to be made to the Tenant
      Improvement Plans any changes necessary to obtain the building permit.
      Concurrent with the plan checking, Landlord shall have prepared a final
      pricing for Tenant's approval, in accordance with the Work Schedule,
      taking into account any modifications which may be required to reflect
      changes in the Tenant Improvement Plans required by the City or County in
      which the Premises are located. After final approval of the Tenant
      Improvement Plans, no further changes may be made thereto without the
      prior written approval from both Landlord and Tenant, and then only after
      agreement by Tenant to pay any excess costs resulting from the design
      and/or construction of such changes. Tenant hereby acknowledges that any
      such changes shall be subject to the terms of Paragraph 7 below.

6.    CONSTRUCTION OF TENANT IMPROVEMENTS. After the Tenant Improvement Plans
      have been prepared and approved, the final pricing has been approved and a
      building permit for the Tenant Improvements has been issued, Landlord
      shall cause its contractor to begin installation of the Tenant
      Improvements in accordance with the Tenant Improvement Plans. Landlord
      shall supervise the completion of such work and shall use reasonable
      commercial efforts to secure substantial completion of the work in
      accordance with the Work Schedule. The cost of such work shall be paid as
      provided in Paragraph 2 above. Landlord shall not be liable for any
      damages, whether direct or consequential, as a result of delays in
      construction beyond Landlord's reasonable control, including, but not
      limited to, war, civil unrest, strike, labor troubles, unusually inclement
      weather, governmental delays, inability to secure governmental approvals
      or permits, governmental restrictions, availability of materials or labor,
      acts of God, or delays by Tenant (or its architect or anyone performing
      services on behalf of Tenant).

7.    COMPLETION AND RENTAL COMMENCEMENT DATE. The commencement of the Term of
      the Lease and Tenant's obligation for the payment of rent under the Lease
      shall commence as of the date referred to in Section 1g of the Lease
      provided, however, that if there shall be a delay in substantial
      completion of the Tenant Improvements as a result of:

                                       31
<PAGE>   32
      (a)   Tenant's failure to approve any items or perform any other
            obligation in accordance with and by the date specified in the Work
            Schedule;

      (b)   Tenant's request for materials, finishes or installations other than
            those readily available;

      (c)   Tenant's changes in the Tenant Improvement Plans after the previous
            approval of the Tenant Improvement Plans by Tenant; or

      (d)   Tenant's request to deviate from the Building Standards for the
            Tenant Improvements;

      then the commencement of the Term of the Lease and the rent commencement
      date shall be accelerated by the number of days of such delay. The Tenant
      Improvements shall be deemed substantially complete notwithstanding the
      fact that minor details of construction, mechanical adjustments or
      decorations which do not materially interfere with Tenant's use and
      enjoyment of the Premises remain to be performed (items normally referred
      to as "Punch List" items).

8.    CERTIFICATE OF OCCUPANCY. Upon completion of the Tenant Improvements and
      the issuance by the City or other relevant government agency of a
      Certificate of Occupancy or other comparable certificate authorizing
      occupancy of the Premises, Tenant will promptly provide Landlord with a
      copy of the Certificate of Occupancy or other such certificate.

            [The remainder of this page is left intentionally blank.]

                                       32
<PAGE>   33
      9.    FORCE MAJEURE. Landlord shall have no liability whatsoever to Tenant
            on account of the inability or delay of Landlord in fulfilling any
            of Landlord's obligations under this Work Letter by reason of
            strike, other labor trouble, governmental controls in connection
            with a national or other public emergency, or shortages of fuel,
            supplies or labor resulting therefrom or any other cause, whether
            similar or dissimilar to the above, beyond Landlord's reasonable
            control. If this Work Letter specifies a time period for performance
            of an obligation of Landlord, that time period shall be extended by
            the period of any delay in Landlord's performance caused by any of
            the events of force majeure described above.

IN WITNESS WHEREOF, this Work Letter Agreement is entered into as of the date
first written above.

EXECUTED BY LANDLORD, this 9th day of November, 1999

PRINCIPAL DEVELOPMENT INVESTORS, AN IOWA LIMITED LIABILITY COMPANY

By: PRINCIPAL LIFE INSURANCE COMPANY, an Iowa Corporation, Member

By:  /s/
      ________________________________________
           Jon M. Jacobsen
Title:     Director, C.R.E. Equities
      ________________________________________

By:  /s/
      ________________________________________
           Ted E. McWilliams
Title:     Assistant Director, Appraisal Services
      ________________________________________

QUALITY CARE SOLUTIONS, INC., A NEVADA CORPORATION

By:  /s/
      ________________________________________

Title:             President and CEO
      ________________________________________

Address:
      ________________________________________

City/State/Zip:
      ________________________________________

                                       33
<PAGE>   34
                                    EXHIBIT H

                           PERSONAL GUARANTY OF LEASE

In consideration of the execution of that certain Lease Agreement between
PRINCIPAL DEVELOPMENT INVESTORS, L.L.C., as Lessor, QUALITY CARE SERVICES, INC.,
as Lessee, dated October 20, 1999, the following individual(s): GREG ANDERSON
hereby guarantee to said Lessor, it's successor and assigns the full performance
and observance of all the covenants, conditions and agreements therein provided
to be performed and observed by lessee, its successors and assigns, and
expressly agrees that the validity of this Guaranty, and the obligation of the
undersigned hereunder shall in no way be terminated, affected or impaired by
reason of any assertion of Lessor, its successors or assigns, or failure to
enforce any of the terms, covenants or conditions of said Lease Agreement or the
Guaranty, or the granting of any indulgence or extension of time to Lessee, all
of which may be given or done without notice to the undersigned. Mr. Anderson
will provide a personal guarantee for the amount of Three Hundred Fifty Thousand
and no/100 Dollars ($350,000.00). Quality Care Services, Inc., may replace Mr.
Anderson's personal guarantee at any time with an Irrevocable Letter of Credit
for the same amount. The amount of the personal guarantee, or Letter of Credit
if replaced, shall be reduced by twenty percent (20%) per year and will retire
after five (5) years, as long as the Tenant is not in default to any and all
terms in the lease document.

The undersigned agrees that the obligations of Guarantor hereunder shall not be
released by Lessor's receipt, application or release of any security given for
the performance and observance of any covenant or condition contained in the
Lease to be kept, performed or observed by Lessee, nor by any modification of
the Lease, regardless of whether Guarantor consents thereto or receives notice
thereof.

The undersigned agrees that it may be joined in any action against Lessee in
connection with the said obligations of Lessee and recovery may be had against
Guarantor in any such action. Lessor may enforce the obligations of Guarantor
hereunder without first taking any action whatsoever against Lessee or its
successors and assigns, or may pursue any other remedy or apply any security it
may hold, and Guarantor hereby waives all right to assert or plead at any time
any statue of limitations relating to the Lease, the obligations or Guarantor
hereunder and any and all surety or other defenses in the nature thereof.

The undersigned agrees that in the event Lessee shall become insolvent or shall
be adjudicated a bankrupt, or shall file a petition for reorganization,
arrangement or similar relief under any present or future provision of the
National Bankruptcy Act, or if such a petition filed by creditors of Lessee
shall be approved by a Court, or if Lessee shall seek judicial readjustment of
the rights of its creditors under any present or future federal state law or if
a receiver of all or part of its property and assets is appointed by any state
or federal court, and in any such proceeding the aforesaid Lease Agreement shall
be terminated or rejected, or the obligations of Lessee thereunder shall be
modified the undersigned will immediately (a) pay to Lessor, or its successors
or assigns, an amount equal to all unpaid fixed and additional rent accrued to
the date of such termination, rejection or modification not to exceed the
guaranteed amount mentioned above, plus (b) at the option of Lessor, its
successors and assignees, either (i) pay to Lessor, or its successors or
assignees, an amount equal to the then cash value of the rent and additional
rent, not to exceed the guaranteed amount mentioned above, which would be have
been payable under said Lease Agreement for the unexpired portion of the term
thereby demised if it had not been terminated, rejected or modified, less the
then cash rental value of the leased premises for such unexpired portion of the
term of said Lease Agreement, taking into consideration the Lease Agreement is
modified, if such is the case, or (ii) if term of said Lease Agreement is
terminated, rejected, executed and delivered to said Lessor, or its successors
or assignees as Lessor, a new Lease agreement shall be delivered to the
undersigned as Lessee for the balance of the term and upon the same terms and
conditions as are set forth in the said Lease Agreement for the balance of the
term then remaining as provided in said Lease Agreement, and will pay Lessor
interest on the amounts which become payable and are designated in (a) and (b)
(i) above, not to exceed guaranteed amount mentioned above, at twelve percent
(12%) per annum from the date of such termination, rejection or modification to
the date of payment.

Neither the undersigned's obligation to make payment in accordance with the
terms of this Agreement nor any remedy for the enforcement thereof shall be
impaired, modified, changed, released, or limited in any manner whatsoever by an
impairment, modification, change, release or limitation of the liability of
Lessee or its estate in bankruptcy or of any remedy for the enforcement thereof,
resulting from the operation of any present or future provision of the National
Bankruptcy Act or other statute, or from the decision of any Court.

                                       34
<PAGE>   35
If there is more than one undersigned, the term Guarantor, as used herein, shall
include all of the undersigned; each and every provision of this Guaranty shall
be binding on each and every one of the undersigned; they shall be jointly and
severally liable hereunder, and Lessor shall have the right to join one or all
of them in any proceeding or to proceed against them in any order.

The undersigned have caused this Guaranty to be executed on

/s/
---------------------------
GREG ANDERSON, Individually

                                       35

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