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                                EMPLOYMENT AGREEMENT


       This Employment Agreement (the "Agreement") by and between F.Y.I.
Incorporated, a Delaware corporation (the "Company"), and Barry L. Edwards
("Employee") is hereby entered into and effective as of July 31, 2000.  This
Agreement hereby supersedes any other employment agreements or understandings,
written or oral, between the Company and Employee.

                                  R E C I T A L S

       The following statements are true and correct:

       As of the date of this Agreement, the Company is engaged primarily in
the business of providing document and information management outsourcing
solutions.

       Employee is employed hereunder by the Company in a confidential
relationship wherein Employee, in the course of his employment with the
Company, has and will continue to become familiar with and aware of
information as to the Company's customers, specific manner of doing business,
including the processes, techniques and trade secrets utilized by the Company,
and future plans with respect thereto, all of which has been and will be
established and maintained at great expense to the Company; this information
is a trade secret and constitutes the valuable goodwill of the Company.

       Therefore, in consideration of the mutual promises, terms, covenants
and conditions set forth herein and the performance of each, it is hereby
agreed as follows:

                                A G R E E M E N T S

       1.     EMPLOYMENT AND DUTIES.

       (a)    The Company hereby employs Employee as an Executive Vice
President and Chief Financial Officer. As such, Employee shall have
responsibilities, duties and authority reasonably accorded to and expected of
an Executive Vice President and Chief Financial Officer and will report
directly to the Company's Chief Executive Officer.  Employee hereby accepts
this employment upon the terms and conditions herein contained and, subject to
paragraph 1(b), agrees to devote his working time, attention and efforts to
promote and further the business of the Company.

       (b)    Employee shall not, during the term of his employment hereunder,
be engaged in any other business activity pursued for gain, profit or other
pecuniary advantage except to the extent that such activity (i) does not
interfere with Employee's duties and responsibilities hereunder and (ii) does
not violate paragraph 3 hereof.  The foregoing limitations shall not be
construed as prohibiting Employee from serving on the boards of directors of
other companies or


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making personal investments in such form or manner as will require his
services, other than to a minimal extent, in the operation or affairs of the
companies or enterprises in which such investments are made nor violate the
terms of paragraph 3 hereof.

       2.     COMPENSATION.  For all services rendered by Employee, the Company
shall compensate Employee as follows:

       (a)    BASE SALARY.  The base salary payable to Employee shall be
$275,000 per year, payable on a regular basis in accordance with the Company's
standard payroll procedures but not less than bi-weekly.

       (b)    INCENTIVE BONUS PLAN.  Employee shall be eligible for a bonus
opportunity of up to 50% of his annual base salary in accordance with the
Company's Incentive Bonus Plan as modified from time to time.  The bonus
payment and the Company's targeted performance shall be determined by the
Board or the compensation committee thereof.  For the year in which this
Employment Agreement is executed, the bonus opportunity shall be prorated for
the length of time Employee is actually employed by the Company (with bonus
targets for such first year to be determined, and communicated to Employee, by
the Chief Executive Officer after consultation with Employee).

       (c)    EXECUTIVE PERQUISITES, BENEFITS AND OTHER COMPENSATION.
Employee shall be entitled to receive additional benefits and compensation
from the Company in such form and to such extent as specified below:

            (i)      Payment of all premiums for coverage for Employee and his
       dependent family members under health, hospitalization, disability,
       dental, life and other insurance plans that the Company may have in
       effect from time to time, and not less favorable than the benefits
       provided to other Company executives.

            (ii)     Reimbursement for all business travel and other
       out-of-pocket expenses reasonably incurred by Employee in the
       performance of his services pursuant to this Agreement.  All
       reimbursable expenses shall be appropriately documented in reasonable
       detail by Employee upon submission of any request for reimbursement,
       and in a format and manner consistent with the Company's expense
       reporting policy.

            (iii)    Four (4) weeks paid vacation for each year during the
       period of employment or such greater amount as may be afforded officers
       and key employees generally under the Company's policies in effect from
       time to time (prorated for any year in which Employee is employed for
       less than the full year).

            (iv)     An automobile allowance in the amount of $500 per month.

            (v)      The Company shall provide Employee with other executive
       perquisites as may be available to or deemed appropriate for Employee by
       the Board and participation


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       in all other Company-wide employee benefits as available from time to
       time, which will include participation in the Company's Incentive
       Compensation Plan.

            (vi)     Participation in the Company's 401(k) Plan and
       Non-Qualified Plan.

       3.     NON-COMPETITION AGREEMENT.

       (a)    Subject to Section 3(a) and Section 12, Employee will not, during
the period of his employment by or with the Company, and for a period of two
(2) years immediately following the termination of his employment under this
Agreement, for any reason whatsoever, directly or indirectly, for himself or on
behalf of or in conjunction with any other person, company, partnership,
corporation, business or entity of whatever nature:

            (i)      engage, as an officer, director, shareholder, owner,
       partner, joint venturer, or in a managerial capacity, whether as an
       employee, independent contractor, consultant or advisor, or as a sales
       representative, in any business selling any products or services in
       direct competition with the Company, within 100 miles of (i) the
       principal executive offices of the Company or (ii) any place to which
       the Company provides products or services or in which the Company
       (including the subsidiaries thereof) is in the process of initiating
       business operations during the term of this covenant (the "Territory");

            (ii)     call upon any person who is, at that time, within the
       Territory, an employee of the Company (including the subsidiaries
       thereof) in a managerial capacity for the purpose or with the intent of
       enticing such employee away from or out of the employ of the Company
       (including the subsidiaries thereof), provided that Employee shall be
       permitted to call upon and hire any member of his immediate family;

            (iii)    call upon any person or entity which is, at that time, or
       which has been, within one (1) year prior to that time, a customer of
       the Company (including the subsidiaries thereof) within the Territory
       for the purpose of soliciting or selling products or services in direct
       competition with the Company within the Territory;

            (iv)     call upon any prospective acquisition candidate, on
       Employee's own behalf or on behalf of any competitor, which candidate
       was either called upon by the Company (including the subsidiaries
       thereof) or for which the Company made an acquisition analysis, for the
       purpose of acquiring such entity; or

            (v)      disclose customers, whether in existence or proposed, of
       the Company (or the subsidiaries thereof) to any person, firm,
       partnership, corporation or business for any reason or purpose
       whatsoever.

       Notwithstanding the above, the foregoing covenant shall not be deemed to
prohibit Employee from acquiring as an investment not more than three percent
(3%) of the capital stock


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of a competing business, whose stock is traded on a national securities
exchange or over-the-counter.

       (b)    Because of the difficulty of measuring economic losses to the
Company as a result of a breach of the foregoing covenant, and because of the
immediate and irreparable damage that could be caused to the Company for which
it would have no other adequate remedy, Employee agrees that the foregoing
covenant may be enforced by the Company in the event of breach by him by
injunctions and restraining orders without the necessity of posting any bond
therefor.

       (c)    It is agreed by the parties that the foregoing covenants in this
paragraph 3 impose a reasonable restraint on Employee in light of the
activities and business of the Company (including the Company's subsidiaries)
on the date of the execution of this Agreement and the current plans of the
Company (including the Company's subsidiaries); but it is also the intent of
the Company and Employee that such covenants be construed and enforced in
accordance with the changing activities, business and locations of the Company
(including the Company's subsidiaries) throughout the term of this covenant,
whether before or after the date of termination of the employment of Employee,
subject to the following paragraph.  For example, if, during the Term of this
Agreement, the Company (including the Company's subsidiaries) engages in new
and different activities, enters a new business or established new locations
for its current activities or business in addition to or other than the
activities or business enumerated under the Recitals above or the locations
currently established therefor, then Employee will be precluded from
soliciting the customers or employees of such new activities or business or
from such new location and from directly competing with such new business
within 100 miles of its then-established operating location(s) through the
term of this covenant.

              It is further agreed by the parties hereto that, in the event
that Employee shall cease to be employed hereunder, and shall enter into a
business or pursue other activities not in competition with the Company
(including the Company's subsidiaries), or similar activities or business in
locations the operation of which, under such circumstances, does not violate
clause (i) of this paragraph 3, and in any event such new business, activities
or location are not in violation of this paragraph 3 or of Employee's
obligations under this paragraph 3, if any, Employee shall not be chargeable
with a violation of this paragraph 3 if the Company (including the Company's
subsidiaries) shall thereafter enter the same, similar or a competitive (i)
business, (ii) course of activities or (iii) location, as applicable.

       (d)    The covenants in this paragraph 3 are severable and separate,
and the unenforceability of any specific covenant shall not affect the
provisions of any other covenant.  Moreover, in the event any court of
competent jurisdiction shall determine that the scope, time or territorial
restrictions set forth are unreasonable, then it is the intention of the
parties that such restrictions be enforced to the fullest extent that the
court deems reasonable, and the Agreement shall thereby be reformed to such
extent.


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       (e)    All of the covenants in this paragraph 3 shall be construed as
an agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of Employee against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of such covenants.  It is
specifically agreed that the period of two (2) years following Employee's
employment set forth at the beginning of this paragraph 3, during which the
agreements and covenants of Employee made in this paragraph 3 shall be
effective, shall be computed by excluding from such computation any time
during which Employee is in violation of any provision of this paragraph 3.

       4.     PLACE OF PERFORMANCE.

       (a)    Employee's place of employment is the Company's headquarters in
Dallas, Texas.  Employee understands that he may be requested by the Board to
relocate from his present residence to another geographic location in order to
more efficiently carry out his duties and responsibilities under this
Agreement or as part of a promotion or other increase in duties and
responsibilities.  In the event that Employee is requested to relocate and
agrees to do so, the Company will pay all relocation costs to move Employee,
his immediate family and their personal property and effects.  Such costs may
include, by way of example, but are not limited to, pre-move visits to search
for a new residence, investigate schools or for other purposes; temporary
lodging and living costs prior to moving into a new permanent residence;
duplicate home carrying costs; all closing costs on the sale of Employee's
present residence and on the purchase of a comparable residence in the new
location; and added income taxes that Employee may incur, as a result of any
payment hereunder, to the extent any relocation costs are not deductible for
tax purposes.  The general intent of the foregoing is that Employee shall not
personally bear any out-of-pocket cost as a result of the relocation, with an
understanding that Employee will use his best efforts to incur only those
costs which are reasonable and necessary to effect a smooth, efficient and
orderly relocation with minimal disruption to the business affairs of the
Company and the personal life of Employee and his family.

       (b)    Notwithstanding the above, if Employee is requested by the Board
to relocate and Employee refuses, such refusal shall not constitute "good
cause" for termination of this Agreement under the terms of paragraph 5(c).

       5.     TERM; TERMINATION; RIGHTS ON TERMINATION.  The term of this
Agreement shall begin on the date hereof and continue through December 31,
2001 (the "Term").  This Agreement and Employee's employment may be terminated
earlier in any one of the following ways:

              (a)    DEATH.  The death of Employee shall immediately terminate
       the Agreement with no severance compensation due to Employee's estate.

              (b)    DISABILITY.  If, as a result of incapacity due to physical
       or mental illness or injury, Employee shall have been absent from his
       full-time duties hereunder for four (4)


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       consecutive months, then thirty (30) days after receiving written notice
       (which notice may occur before or after the end of such four (4) month
       period, but which shall not be effective earlier than the last day of
       such four (4) month period), the Company may terminate Employee's
       employment hereunder provided Employee is unable to resume his
       full-time duties at the conclusion of such notice period.  Also,
       Employee may terminate his employment hereunder if his health should
       become impaired to an extent that makes the continued performance of
       his duties hereunder hazardous to his physical or mental health or his
       life, provided that Employee shall have furnished the Company with a
       written statement from a qualified doctor to such effect and provided,
       further, that, at the Company's request made within thirty (30) days of
       the date of such written statement, Employee shall submit to an
       examination by a doctor selected by the Company who is reasonably
       acceptable to Employee or Employee's doctor and such doctor shall have
       concurred in the conclusion of Employee's doctor.  In the event this
       Agreement is terminated as a result of Employee's disability, Employee
       shall receive from the Company, in a lump-sum payment due within ten
       (10) days of the effective date of termination, the base salary, at the
       rate then in effect, for one (1) year.

              (c)    GOOD CAUSE.  The Company may terminate the Agreement ten
       (10) days after written notice to Employee for good cause, which shall
       be: (1) Employee's material and irreparable breach of this Agreement;
       (2) Employee's gross negligence in the performance or intentional
       nonperformance (continuing for ten (10) days after receipt of the
       written notice) of any of Employee's material duties and
       responsibilities hereunder; (3) Employee's dishonesty, fraud or
       misconduct with respect to the business or affairs of the Company which
       materially and adversely affects the operations or reputation of the
       Company; (4) Employee's conviction of a felony crime; or (5) chronic
       alcohol abuse or illegal drug abuse by Employee.  In the event of a
       termination for good cause, as enumerated above, Employee shall have no
       right to any severance compensation.

              (d)    WITHOUT CAUSE.  At any time after the commencement of
       employment, the Company may, without cause, terminate this Agreement
       and Employee's employment, effective thirty (30) days after written
       notice is provided to the Employee.  Should Employee be terminated by
       the Company without cause, Employee shall receive from the Company, in
       a lump-sum payment due on the effective date of termination, the base
       salary, at the rate then in effect, for one (1) year ("Severance Pay").
       Further, any termination without cause by the Company shall operate to
       shorten the period set forth in paragraph 3(a) and during which the
       terms of paragraph 3 apply to one (1) year from the date of termination
       of employment.

               (e)   TERMINATION BY EMPLOYEE FOR GOOD REASON.  Employee may
       terminate his employment hereunder for "Good Reason."  As used herein,
       "Good Reason" shall mean the continuance of any of the following after
       ten (10) days' prior written notice by Employee to the Company,
       specifying the basis for such Employee's having Good Reason to terminate
       this Agreement:


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            (i)      the assignment to Employee of any duties materially and
       adversely inconsistent with Employee's position as specified in
       paragraph 1 hereof (or such other position to which he may be
       promoted), including status, offices, responsibilities or persons to
       whom Employee reports as contemplated under paragraph 1 of this
       Agreement, or any other action by the Company which results in a
       material and adverse change in such position, status, offices, titles
       or responsibilities;

            (ii)     Employee's removal from, or failure to be reappointed or
       reelected to, Employee's position under this Agreement during the term
       of this Agreement (though this provision shall not entitle Employee to
       any extension or renewal of the Term of this Agreement), except as
       contemplated by paragraphs 5(a), (b), (c) and (e); or

            (iii)    any other material breach of this Agreement by the Company
       that is not cured within the ten (10) day time period set forth in
       paragraph 5(f) above, including the failure to pay Employee on a timely
       basis the amounts to which he is entitled under this Agreement.

In the event of any termination by the Employee for Good Reason, as determined
by a court of competent jurisdiction or pursuant to the provisions of
paragraph 16 below, the Company shall pay all amounts and damages (which
damages shall not include payment of salary for the then unexpired Term in
light of the Severance Pay set forth below), to which Employee may be entitled
as a result of such breach, including interest thereon and all reasonable
legal fees and expenses and other costs incurred by Employee to enforce his
rights hereunder.  In addition, Employee shall be entitled to receive
Severance Pay for one (1) year. Further, none of the provisions of paragraph 3
shall apply in the event this Agreement is terminated by Employee for Good
Reason.

       (f)    TERMINATION BY EMPLOYEE WITHOUT GOOD REASON.  If Employee resigns
              or otherwise terminates his employment without Good Reason
              pursuant to paragraph 5(f), Employee shall receive no severance
              compensation.

       (g)    CHANGE OF CONTROL.  Refer to paragraph 12, below.

Upon termination of this Agreement for any reason provided in clauses (a)
through (g) above, Employee shall be entitled to receive all compensation
earned and all benefits vested and reimbursements due through the effective
date of termination.  Additional compensation subsequent to termination, if
any, will be due and payable to Employee only to the extent and in the manner
expressly provided above or in paragraph 16.  All other rights and obligations
of the Company and Employee under this Agreement shall cease as of the
effective date of termination, except that the Company's obligations under
paragraph 9 herein and Employee's obligations under paragraphs 3, 6, 7, 8, 9
and 10 herein shall survive such termination in accordance with their terms.


                                       7

<PAGE>

       6.     RETURN OF COMPANY PROPERTY.  All records, designs, patents,
business plans, financial statements, manuals, memoranda, lists and other
property delivered to or compiled by Employee by or on behalf of the Company
(including the Company's subsidiaries) or its representatives, vendors or
customers which pertain to the business of the Company (including the
Company's subsidiaries) shall be and remain the property of the Company and be
subject at all times to its discretion and control.  Likewise, all
correspondence, reports, records, charts, advertising materials and other
similar data pertaining to the business, activities or future plans of the
Company (including the Company's subsidiaries) that is collected by Employee
shall be delivered promptly to the Company without request by it upon
termination of Employee's employment.

       7.     INVENTIONS.  Employee shall disclose promptly to the Company any
and all significant conceptions and ideas for inventions, improvements and
valuable discoveries, whether patentable or not, which are conceived or made
by Employee, solely or jointly with another, during the period of employment
or within one (1) year thereafter, and which are directly related to the
business or activities of the Company (including the Company's subsidiaries)
and which Employee conceives as a result of his employment by the Company.
Employee hereby assigns and agrees to assign all his interests therein to the
Company or its nominee.  Whenever requested to do so by the Company, Employee
shall execute any and all applications, assignments or other instruments that
the Company shall deem necessary to apply for and obtain letters patent of the
United States or any foreign country or to otherwise protect the Company's
interest therein.

       8.     TRADE SECRETS.  Employee agrees that he will not, during or
after the term of this Agreement with the Company, disclose the specific terms
of the Company's (including the Company's subsidiaries) relationships or
agreements with its significant vendors or customers or any other significant
and material trade secret of the Company (including the Company's
subsidiaries), whether in existence or proposed, to any person, firm,
partnership, corporation or business for any reason or purpose whatsoever,
except as is disclosed in the ordinary course of business.

       9.     INDEMNIFICATION.  In the event Employee is made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by the Company
against Employee), by reason of the fact that he is or was performing services
under this Agreement, then the Company shall indemnify Employee against all
expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement, as actually and reasonably incurred by Employee in connection
therewith.  In the event that both Employee and the Company are made a party
to the same third-party action, complaint, suit or proceeding, the Company
agrees to engage competent legal representation, and Employee agrees to use
the same representation, provided that if counsel selected by the Company
shall have a conflict of interest that prevents such counsel from representing
Employee, Employee may engage separate counsel and the Company shall pay all
attorneys' fees of such separate counsel.  Further, while Employee is expected
at all times to use his best efforts to faithfully discharge his duties under
this Agreement, Employee cannot be held liable to the


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Company for errors or omissions made in good faith where Employee has not
exhibited gross, willful and wanton negligence and misconduct or performed
criminal and fraudulent acts which materially damage the business of the
Company.

       10.    NO PRIOR AGREEMENTS.  Employee hereby represents and warrants to
the Company that the execution of this Agreement by Employee and his
employment by the Company and the performance of his duties hereunder will not
violate or be a breach of any agreement with a former employer, client or any
other person or entity.  Further, Employee agrees to indemnify the Company for
any claim, including, but not limited to, attorneys' fees and expenses of
investigation, by any such third party that such third party may now have or
may hereafter come to have against the Company based upon or arising out of
any non-competition agreement, invention or secrecy agreement between Employee
and such third party which was in existence as of the date of this Agreement.

       11.    ASSIGNMENT; BINDING EFFECT.  Employee understands that he has
been selected for employment by the Company on the basis of his personal
qualifications, experience and skills.  Employee agrees, therefore, he cannot
assign all or any portion of his performance under this Agreement.  Subject to
the preceding two (2) sentences and the express provisions of paragraph 12
below, this Agreement shall be binding upon, inure to the benefit of and be
enforceable by the parties hereto and their respective heirs, legal
representatives, successors and assigns.

       12.    CHANGE IN CONTROL.

       (a)    Unless he elects to terminate this Agreement pursuant to (c)
below, Employee understands and acknowledges that the Company may be merged or
consolidated with or into another entity and that such entity shall
automatically succeed to the rights and obligations of the Company hereunder.

       (b)    Provided that Employee would have been an employee of the
Company for at least one year at the time of such Change in Control, then in
the event of a pending Change in Control wherein the Employee has not received
written notice at least fifteen (15) business days prior to the anticipated
closing date of the transaction giving rise to the Change in Control from the
successor to all or a substantial portion of the Company's business and/or
assets that such successor is willing as of the closing to assume and agree to
perform the Company's obligations under this Agreement in the same manner and
to the same extent that the Company is hereby required to perform, such Change
in Control shall be deemed to be a termination of this Agreement by the
Company and the amount of the lump-sum severance payment due to Employee shall
be 1 times Employee's annual salary immediately prior to the Change in Control
and the non-competition provisions of paragraph 3 shall not apply whatsoever.
Payment shall be made either at closing of the transaction if notice is served
at least five (5) days before closing or within ten (10) days of Employee's
written notice.


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       (c)    Provided that Employee would have been an employee of the
Company for at least one year at the time of such Change in Control, then in
any Change in Control situation in which Employee has received written notice
from the successor to the Company that such pending successor is willing to
assume the Company's obligations hereunder or Employee receives notice after
the Change in Control that Employee is being terminated, Employee may
nonetheless, at his sole discretion, elect to terminate this Agreement by
providing written notice to the Company at any time prior to closing of the
transaction and up to two (2) years after the closing of the transaction
giving rise to the Change in Control.  In such case, the amount of the
lump-sum severance payment due to Employee shall be 1 times Employee's annual
salary immediately prior to the Change in Control and the non-competition
provisions of paragraph 3 shall all apply.  Payment shall be made either at
closing if notice is served at least five (5) days before closing or within
ten (10) days of written notice by Employee.

       (d)    For purposes of applying paragraph 5 under the circumstances
described in (b) and (c) above, the effective date of termination will be the
later of the closing date of the transaction giving rise to the Change in
Control or Employee's notice as described above, and all compensation,
reimbursements and lump-sum payments due Employee must be paid in full by the
Company at such time.  Further, Employee will be given sufficient time in
order to comply with then Securities and Exchange Commission's regulations to
elect whether to exercise and sell all or any of his vested options to
purchase Common Stock of the Company, including any options with accelerated
vesting under the provisions of the Company's 1995 Stock Option Plan, as
amended (and as modified by the related option agreement/certificate in
accordance with such Plan) or any warrants, such that he may convert such
options or warrants to shares of Common Stock of the Company at or prior to
the closing of the transaction giving rise to the Change in Control, if he so
desires.  Employee acknowledges that his option agreement/certificate provides
that not all of such options vest on a Change in Control under certain
circumstances.

       (e)    A "Change in Control" shall be deemed to have occurred if:

              (i)    any person, other than the Company or an employee benefit
       plan of the Company, acquires directly or indirectly the Beneficial
       Ownership (as defined in Section 13(d) of the Securities Exchange Act of
       1934, as amended) of any voting security of the Company and immediately
       after such acquisition such Person is, directly or indirectly, the
       Beneficial Owner of voting securities representing 50% or more of the
       total voting power of all of the then-outstanding voting securities of
       the Company;

              (ii)   the individuals (A) who, as of the effective date of the
       Company's registration statement with respect to its initial public
       offering, constitute the Board of Directors of the Company (the
       "Original Directors") or (B) who thereafter are elected to the Board of
       Directors of the Company and whose election, or nomination for
       election, to the Board of Directors of the Company was approved by a
       vote of at least two-thirds (2/3) of the Original Directors then still
       in office (such directors becoming "Additional Original Directors"
       immediately following their election) or (C) who are elected to the
       Board of Directors of the Company and whose election, or nomination for
       election, to the


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<PAGE>

       Board of Directors of the Company was approved by a vote of at least
       two-thirds (2/3) of the Original Directors and Additional Original
       Directors then still in office (such directors also becoming
       "Additional Original Directors" immediately following their election),
       cease for any reason to constitute a majority of the members of the
       Board of Directors of the Company;

              (iii) the stockholders of the Company shall approve a merger,
       consolidation, recapitalization, or reorganization of the Company, a
       reverse stock split of outstanding voting securities, or consummation of
       any such transaction if stockholder approval is not sought or obtained,
       other than any such transaction which would result in at least 75% of
       the total voting power represented by the voting securities of the
       surviving entity outstanding immediately after such transaction being
       Beneficially Owned by at least 75% of the holders of outstanding voting
       securities of the Company immediately prior to the transaction, with
       the voting power of each such continuing holder relative to other such
       continuing holders not substantially altered in the transaction; or

              (iv)   the stockholders of the Company shall approve a plan of
       complete liquidation of the Company or an agreement for the sale or
       disposition by the Company of all or a substantial portion of the
       Company's assets (i.e., 50% or more of the total assets of the Company).

       (f)    Employee must be notified in writing by the Company at any time
that the Company or any member of its Board anticipates that a Change in
Control may take place.

       (g)    If any portion of the severance benefits, Change in Control
benefits or any other payment under this Agreement, or under any other
agreement with, or plan of the Company, including but not limited to stock
options, warrants and other long-term incentives (in the aggregate "Total
Payments") would be subject to the excise tax imposed by Section 4999 of the
Code, as amended (or any similar tax that may hereafter be imposed) or any
interest or penalties with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax"), then Employee shall be entitled under this
paragraph to an additional amount (the "Gross-Up Payment") such that after
payment by Employee of all of Employee's applicable Federal, state and local
taxes, including any Excise Tax, imposed upon such additional amount, Employee
will retain an amount equal to the Excise Tax imposed on the Total Payments.

       For purposes of this paragraph Employee's applicable Federal, state and
local taxes shall be computed at the maximum marginal rates, taking into
account the effect of any loss of personal exemptions resulting from receipt
of the Gross-Up Payment.

       All determinations required to be made under this Agreement, including
whether a Gross-Up Payment is required under this paragraph, and the
assumptions to be used in determining the Gross-Up Payment, shall be made by
the Company's current independent accounting firm, or such other firm as the
Company may designate in writing prior to a Change in Control (the


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<PAGE>

"Accounting Firm"), which shall provide detailed supporting calculations both
to the Company and Employee within twenty business days of the receipt of
notice from Employee that there will likely be a Change in Control, or such
earlier time as is requested by the Company.  In the event that the Accounting
Firm is serving as accountant or auditor for the party effecting the Change in
Control or is otherwise unavailable, Employee may appoint another nationally
recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm
hereunder).  All fees and expenses of the Accounting Firm with respect to such
determinations described above shall be borne solely by the Company.

       Employee agrees (unless requested otherwise by the Company) to use
reasonable efforts to contest in good faith any subsequent determination by
the Internal Revenue Service that Employee owes an amount of Excise Tax
greater than the amount determined pursuant to this paragraph; PROVIDED, that
Employee shall be entitled to reimbursement by the Company of all fees and
expenses reasonably incurred by Employee in contesting such determination.  In
the event the Internal Revenue Service or any court of competent jurisdiction
determines that Employee owes an amount of Excise Tax that is either greater
than the amount previously taken into account and paid under this Agreement,
the Company shall promptly pay to Employee the amount of such shortfall.  In
the case of any payment that the Company is required to make to Employee
pursuant to the preceding sentence (a "Later Payment"), the Company shall also
pay to Employee an additional amount such that after payment by Employee of
all of Employee's applicable Federal, state and local taxes, including any
interest and penalties assessed by any taxing authority, on such additional
amount, Employee will retain an amount equal to the total of Employee's
applicable Federal, state and local taxes, including any interest and
penalties assessed by any taxing authority, arising due to the Later Payment.

       13.    COMPLETE AGREEMENT.  This Agreement is not a promise of future
employment.  Employee has no oral representations, understandings or
agreements with the Company or any of its officers, directors or
representatives covering the same subject matter as this Agreement.  This
written Agreement is the final, complete and exclusive statement and
expression of the agreement between the Company and Employee and of all the
terms of this Agreement, and it cannot be varied, contradicted or supplemented
and may only be amended by a written agreement executed by each of the parties
hereto.

       14.    NOTICE.  Whenever any notice is required hereunder, it shall be
given in writing addressed as follows:

       To the Company:             F.Y.I. Incorporated
                                   3232 McKinney Avenue
                                   Suite 900
                                   Dallas, Texas 75204


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<PAGE>

       with a copy to:             F.Y.I. Incorporated
                                   3232 McKinney Avenue
                                   Suite 900
                                   Dallas, Texas 75204
                                   Attn:  General Counsel

       with a copy to:             Locke Liddell & Sapp LLP
                                   2200 Ross Avenue
                                   Suite 2200
                                   Dallas, Texas 75201
                                   Attn:  Charles C. Reeder, Esq.

       To Employee:                Barry L. Edwards
                                   3900 Greenbrier Dr.
                                   Dallas, TX 75225

Notice shall be deemed given and effective three (3) days after the deposit in
the U.S. mail of a writing addressed as above and sent first class mail,
certified, return receipt requested, or when actually received.  Either party
may change the address for notice by notifying the other party of such change
in accordance with this paragraph 14.

       15.    SEVERABILITY; HEADINGS.  If any portion of this Agreement is
held invalid or inoperative, the other portions of this Agreement shall be
deemed valid and operative and, so far as is reasonable and possible, effect
shall be given to the intent manifested by the portion held invalid or
inoperative.  The paragraph headings herein are for reference purposes only
and are not intended in any way to describe, interpret, define or limit the
extent or intent of the Agreement or of any part hereof.

       16.    ARBITRATION.  Any unresolved dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by
arbitration, conducted before a panel of three (3) arbitrators in Dallas,
Texas, in accordance with the rules of the American Arbitration Association
then in effect.  The arbitrators shall not have the authority to add to,
detract from, or modify any provision hereof nor to award punitive damages to
any injured party.  The arbitrators shall have the authority to order
back-pay, severance compensation, vesting of options (or cash compensation in
lieu of vesting of options), reimbursement of costs, including those incurred
to enforce this Agreement, and interest thereon in the event the arbitrators
determine that Employee was terminated without disability or good cause, as
defined in paragraphs 5(b) and 5(c), respectively, or that the Company has
otherwise materially breached this Agreement.  A decision by a majority of the
arbitration panel shall be final and binding.  Judgment may be entered on the
arbitrators' award in any court having jurisdiction.  The costs of any
arbitration proceeding shall be borne by the party or parties not prevailing
in such proceeding determined by the arbitrators.

       17.    GOVERNING LAW.  This Agreement shall in all respects be
construed according to the laws of the State of Delaware.


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                    [BALANCE OF SHEET INTENTIONALLY LEFT BLANK]

























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                                  EMPLOYEE:


                                  /s/ Barry L. Edwards
                                  --------------------------------------------
                                  Barry L. Edwards



                                  F.Y.I. INCORPORATED


                                  By: /s/ Ed H. Bowman
                                  --------------------------------------------
                                  Title: President and Chief Executive Officer










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