Document:

<PAGE>   1
                                                                   Exhibit 10(b)

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "AGREEMENT") has been made as of
January 29, 2001 by and between TRANSMATION, INC., an Ohio corporation (the
"CORPORATION"), and PETER J. ADAMSKI (the "EMPLOYEE").

         The parties agree as follows:

1. MUTUAL AGREEMENT OF THE PARTIES. The Corporation hereby agrees to employ the
Employee, and the Employee hereby agrees to accept such employment, for the
period and on the terms and conditions set forth in this Agreement.

2. TERM OF EMPLOYMENT. The term of this Agreement and of the Employee's
employment hereunder (the "TERM") shall commence on the date hereof and shall
expire on January 28, 2004, subject to earlier termination as provided by
Section 9 hereof. As used herein, the term "YEAR" shall mean any period during
the Term commencing on January 29 and ending on the next succeeding January 28.

3. AUTHORITY AND DUTIES. During the Term, the Employee shall be the Chief
Financial Officer of the Corporation. As such, he shall: (a) report and be
responsible to the President and CEO of the Corporation (the "PRESIDENT AND
CEO"); (b) be responsible for all of the financial aspects of the Corporation
including without limitation banking and financing matters, logistics,
facilities, management information systems, secretarial reporting, tax
compliance, financial statement preparation and accuracy and cash flow; and (c)
have and exercise such powers and authority as are customarily enjoyed by a
Chief Financial Officer of a corporation, subject only to direction by the
President and CEO and the Board of Directors of the Corporation (the "BOARD OF
DIRECTORS"). The Employee shall devote his full business time, attention and
energies to the affairs of the Corporation, and shall use his best efforts to
promote its best interests.

4. COMPENSATION. During the Term, the Corporation shall pay to the Employee, and
the Employee shall accept, as compensation for all services rendered under this
Agreement, the compensation provided by this Section 4.

         (a) SALARY. The Corporation shall pay the Employee a cash salary at the
annual rates of (i) $195,000 during the first Year of the Term, (ii) $220,000
during the second Year of the Term, and (iii) $238,000 during the third Year of
the Term. Such salary shall be payable at such intervals (but not less often
than biweekly or semi-monthly) as the Corporation pays the salaries of other
senior executives during the Term.

         (b) ANNUAL BONUS. The Corporation shall pay the Employee, in respect of
each Year (or portion thereof) during the Term, a bonus (if any) paid under and
pursuant to the terms of the Corporation's Annual Executive Bonus Plan adopted
by the Compensation, Benefits and Stock Options Committee and the Board of
Directors for the then-current fiscal year of the Corporation, except that a
bonus shall be paid during the first Year amounting to $25,000 pursuant to the
formula set forth in EXHIBIT A annexed hereto.

<PAGE>   2

         (c) STOCK OPTIONS. The Compensation, Benefits and Stock Options
Committee of the Corporation shall approve a 75,000-share incentive stock option
grant to the Employee at its first meeting after the date of this Agreement.

5. BENEFITS.

         (a) VACATION. During the Term, the Employee shall be entitled to the
same amount of paid vacation time per annum as the Corporation provides its
other senior executives.

         (b) AUTOMOBILE ALLOWANCE. During the Term, the Corporation shall
provide the Employee with an automobile allowance in the amount of $750 per
month.

         (c) OTHER BENEFITS. During the Term, the Corporation shall, at its
expense, provide in the name and for the benefit of the Employee and his
designated beneficiaries all fringe benefit plans and programs which the
Corporation then provides for its senior executives, except if and to the extent
that the Employee waives his rights hereto. Nothing contained herein shall be
deemed to restrict or limit the right of the Corporation at any time to modify,
amend or terminate any or all such fringe benefit plans and programs.

6. BUSINESS EXPENSES. The Corporation shall pay or reimburse the Employee for
all reasonable travel and other expenses incurred or paid by him in connection
with the performance of his duties under this Agreement, upon presentation to
the Corporation of expense statements or vouchers and such other supporting
documentation as it may, from time to time, reasonably require; provided,
however, that the amount available for such expenses may, at any time or from
time to time, be fixed in advance by the Board of Directors.

7. NON-COMPETITION. The Employee agrees that during the Term he shall not,
without the express written consent of the Corporation, engage directly or
indirectly (whether by means of stock ownership or otherwise) in any business
which is in competition, directly or indirectly, with the business of the
Corporation. A direct or indirect investment by the Employee in less than 5
percent of the total capital of any such competitive enterprise or business
whose stock is publicly traded shall not be deemed a violation of this Section
7.

8. CONFIDENTIALITY. The Employee acknowledges that in the course of his
employment by the Corporation, he will have access to confidential information
relating to the business and affairs of the Corporation, including without
limitation information relating to business ideas, trade secrets, product
development, secret processes, plans and/or materials, statistical information
and customer lists. The Employee agrees that he will not, either during the Term
or after its expiration, without the prior express written consent of the
Corporation, disclose, divulge, furnish, release or otherwise make available to
any person or entity any of such confidential information, except for: (a)
disclosures made, in furtherance of the Corporation's interests, with the
approval or at the direction of the President and CEO or investment bankers (if
any) retained by the Corporation, and (b) disclosures of information which,
through no breach of the Employee's obligations under this Section 8, is no
longer confidential.

                                       2

<PAGE>   3

9. TERMINATION.

         (a) TERMINATION. This Agreement and the Employee's employment hereunder
shall terminate at the close of business on the earliest of the following dates:

             (i)   January 28, 2004; or

             (ii)  the date of the Employee's death; or

             (iii) the thirtieth day following the date on which the Corporation
receives written notice of the Employee's termination of this Agreement; or

             (iv)  the thirtieth day following the date on which the Employee
receives written notice of the President and CEO's termination of this Agreement
with or without "Cause" (as defined in Section 9(b) hereof).

         (b) CAUSE FOR TERMINATION. For purposes of this Agreement, the term
"Cause" shall mean a reasonable determination by vote of a majority of the
members of the Board of Directors then holding office (other than the Employee
if he shall then be a Director) that one of the following conditions exists or
one of the following events has occurred:

             (i)   the willful misconduct or gross negligence of the Employee
in connection with the performance of his duties hereunder; or

             (ii)  the Employee's conviction of any crime or offense involving
money, property or personnel of the Corporation, or of any other crime which
constitutes a felony; or

             (iii) the Employee's use, possession or being under the influence
of any narcotic or controlled substance while at work, or his being under the
influence of any alcoholic beverage while at work; or

             (iv)  subject to the further provisions of this Section 9(b), the
Corporation's failure to achieve as of the close of any fiscal quarter,
half-year or year of the Corporation (each, a "FISCAL PERIOD") during the Term
the net income required by the budget for that Fiscal Period adopted by the
Board of the Directors, subject to the exception from the budget of such
extraordinary items as the Board of Directors may, in its discretion, approve
from time to time.

It is the intention of the Corporation and the Employee that the circumstances
contemplated by Section 9(b)(iv) hereof be fair reflections of the Employee's
performance as the Corporation's Chief Financial Officer. To that end, the
President and CEO and the Employee shall both act in good faith in the creation
and adoption of each such budget and the consideration of each such exception.

10. SEVERANCE.

         (a) CERTAIN DEFINITIONS. As used herein:

                                       3

<PAGE>   4

             (i) "TOTAL COMPENSATION" means and includes without limitation
salary, bonuses (if any), benefits (if any) and compensation (if any) in the
form of stock or options to purchase stock; provided, however, that any such
compensation that is payable to the Employee other than in cash shall be valued
for the purposes of this Section 10 at its fair market value on the date it is
payable.

             (ii) "NORMAL TERMINATION DATE" means the applicable date of
termination specified in Section 9(a) hereof.

             (iii) A "CHANGE IN CONTROL" shall have occurred if:

                   (A) the Corporation is merged or consolidated with another
entity and as a result thereof less than 50 percent of the outstanding voting
securities of the surviving or resulting entity shall then be owned in the
aggregate by the former shareholders of the Corporation; or

                   (B) as a result of, or in connection with, any tender offer
or exchange offer, merger or other business combination, or sale of other
disposition of assets, or any combination of the foregoing transactions, persons
constituting a majority of the Board on the date hereof shall not constitute a
majority of the Board of Directors of the surviving or resulting entity; or

                   (C) a tender offer or exchange for the ownership of
securities of the Corporation representing over 50 percent of the combined
voting power of the Corporation's then outstanding voting securities is made and
consummated; or

                   (D) any "person", including a "group" within the meaning of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, is or
becomes, directly or indirectly, the beneficial owner of securities of the
Corporation representing over 50 percent of the combined voting power of the
Corporation's then outstanding securities.

             (iv) "SUCCESSOR" means any successor to the assets, rights or
business of the Corporation as a result of a Change in Control, including
without limitation the Corporation if it is the surviving or resulting entity of
the Change in Control.

             (v) "TRIGGER TERMINATION" means any termination, after the
effective date of a Change in Control, of this Agreement, except for the
following terminations which are not Trigger Terminations: (A) the Employee's
voluntary termination for reasons other than a Material Change (as hereinafter
defined); (B) termination upon the Employee's death or total disability; and (C)
termination by expiration of the Term on January 28, 2004.

             (v) "MATERIAL CHANGE" means any or all of the following:

                 (A) a change by the Successor in the nature or scope of the
Employee's authority, duties or responsibilities, from those applicable to him
immediately prior to the

                                       4

<PAGE>   5

Change in Control, that is so substantial and material a reduction, or so
substantially and materially burdensome, as would make a reasonable person
determine not to continue such employment (it being the intent hereof to include
in the definition of "Material Change" a change that would, in effect, force the
Employee to terminate his employment voluntarily, but to exclude from the
definition of "Material Change" a change that is ordinary and customary in the
course of any change in control of a business); or

                   (B) any reduction in the aggregate annual amount of
compensation and benefits payable to the Employee by the Successor from that
payable to him by the Corporation immediately prior to the Change in Control; or

                   (C) a change in the location of the Employee's principal
place of employment, without his express written consent, to a location which is
outside the general metropolitan area of Rochester, New York.

         (b) SEVERANCE PAYMENT IF TERMINATION WITHOUT CAUSE. In the event that
the Corporation terminates this Agreement without Cause, the Corporation shall
pay to the Employee as severance an amount equal to the greater of: (i) the
Total Compensation payable to the Employee by the Corporation during the 12
months immediately preceding the Termination Date; or (ii) the Total
Compensation that would have been payable to the Employee hereunder from the
Termination Date until January 28, 2004 had this Agreement not been terminated.
Such severance amount shall be paid to the Employee in cash within 30 days
following the Termination Date unless and to the extent that the Employee
determines otherwise.

         (c) SEVERANCE PAYMENT IF TERMINATION IN CONNECTION WITH A CHANGE IN
CONTROL. In the event that a Trigger Termination occurs during the Term, the
Successor shall pay to the Employee as severance an amount equal to 300 percent
of the Total Compensation payable to the Employee by the Corporation or the
Successor during the 12 months immediately preceding the effective date of the
Trigger Termination. Such severance amount shall be paid to the Employee in cash
within 30 days following the effective date of the Trigger Termination unless
and to the extent that the Employee determines otherwise.

         (d) REDUCTION OF SEVERANCE AMOUNT IN CERTAIN CIRCUMSTANCES.

             (i) Notwithstanding anything in this Agreement or any other
agreement to the contrary, in the event that it is determined that any payment
or distribution by the Successor, any affiliate thereof or any other person to
or for the benefit of the Employee, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement, pursuant to any other
plan of deferred compensation, or pursuant to any other agreement or arrangement
with the Successor or any affiliate thereof now or hereafter in effect (a
"PAYMENT"), would be subject to the excise tax imposed by Section 4999, or the
denial of deductions imposed by Section 280G, of the Internal Revenue Code of
1986, as amended, or any successor statute thereto (the "TAX PENALTY"), then the
Payments made to or for the benefit of the Employee pursuant to this Agreement
shall be reduced such that the aggregate present value is maximized without
causing any payment to be subject to the Tax Penalty (the "REDUCED AMOUNT"). In
the alternative, at the sole discretion of the Successor, the full amount of the
Payments may be made to the Employee

                                       5

<PAGE>   6

and the Employee shall be entitled to receive an additional payment (a "GROSS-UP
PAYMENT") in an amount such that after payment by the Employee of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any excise tax, imposed upon the Gross-Up Payment, Employee retains an
amount of the Gross-Up Payment equal to the excise tax imposed upon the
Payments.

             (ii) An initial determination as to whether a Tax Penalty would be
imposed, and the amount of the Reduced Amount required by Section 10(d)(i)
hereof or any Gross-Up Payment elected by the Successor, shall be made by a
national independent accounting firm not regularly engaged by the Employee or
the Successor and mutually acceptable to Employee and the Successor (the
"ACCOUNTING FIRM"). All fees, costs and expenses of the Accounting Firm shall be
borne by the Successor, which shall pay such fees, costs and expenses as they
become due. The Accounting Firm shall promptly provide detailed supporting
calculations, acceptable to the Employee and the Successor, to them. The amount
of the Reduced Amount or, if elected by the Successor, the full Payment plus the
Gross-Up Payment, if any, as determined pursuant to this Section 10(d)(ii) shall
be paid by the Successor to the Employee within five business days of receipt of
the Accounting Firm's determination. If the Accounting Firm determines that no
Tax Penalty would be imposed, the Successor and the Employee shall use their
best efforts to ensure that the Accounting Firm furnishes both the Employee and
the Successor with an unqualified opinion to that effect. Any such initial
determination by the Accounting Firm of the Reduced Amount and/or the Gross-Up
Payment shall be binding upon the Successor and the Employee.

             (iii) In the event that it is determined that an excise tax will be
imposed on any Payments, the Successor shall pay to the applicable governmental
taxing authorities as excise tax withholding, the amount of the excise tax that
the Successor has actually withheld from the Payments.

         (e) RELATED MATTERS.

             (i) The Employee shall not be required to mitigate the amount of
any severance payable hereunder by seeking other employment or otherwise, nor
shall the amount of any severance payable hereunder be reduced by any
compensation earned by the Employee as the result of his employment by another
employer or otherwise.

             (ii) The provisions of this Section 10 shall not affect the
Employee's right to receive all earned but unpaid salary or bonus, accrued but
unpaid vacation pay, and submitted but outstanding travel or other expenses due
and owing from the Corporation or the Successor on the effective date of
termination of this Agreement, or any incentive compensation earned but unpaid
prior to or coincidental with the effective date of such termination, all of
which shall be paid to the Employee when ordinarily payable under the
Corporation's or the Successor's plans, programs and practices.

         (f) EXCLUSIVITY. The Employee shall not be entitled to any severance
except as expressly provided by this Section 10.

11. IN GENERAL.

                                       6

<PAGE>   7

         (a) BINDING OBLIGATION. This Agreement shall be binding upon and shall
inure to the benefit of the Employee and his personal representatives, and the
Corporation and its successors and assigns, including without limitation the
Successor and any other successor to the business of the Corporation, whether by
way of merger, reorganization, transfer or assets or otherwise. The term
"Corporation" as used herein shall include all such successors and assigns.

         (b) NOTICES. Any notice required or permitted by this Agreement shall
be given by hand or by certified mail, return receipt requested, addressed to
the Corporation at its then principal office, or to the Employee at his then
residence address, or to either party at such other address as it or he may from
time to time specify for the purpose in a notice similarly given to the other
party.

         (c) APPLICABLE LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to agreements
made and to be performed entirely within such State.

         (d) ENTIRE AGREEMENT, ETC. This Agreement contains the entire
understanding of the parties relating to the subject matter hereof, and
supersedes all prior agreements, arrangements and understandings, written or
oral, between the parties with respect to the subject matter hereof. No
modification of this Agreement shall be valid unless it is in writing and signed
by the Corporation and by the Employee. A waiver of the breach of any term or
condition of this Agreement shall not be deemed to constitute a waiver of any
subsequent breach of the same or any other term or condition.

         IN WITNESS WHEREOF, the parties have duly executed and delivered this
Agreement as of the day and year first above written.

                                 TRANSMATION, INC.

                                 By:      /s/ Robert G. Klimasewski
                                          --------------------------
                                          Robert G. Klimasewski
                                          President and CEO

                                          /s/ Peter J. Adamski
                                          --------------------------
                                          PETER J. ADAMSKI

                                       7<PAGE>   1
                                                                   EXHIBIT 10.29

                     ACCOUNT TRANSFER AND PURCHASE AGREEMENT

This Account Transfer and Purchase Agreement (this "Agreement") is dated this
29th day of March, 2001, and is between KBK Financial, Inc., a Delaware
corporation authorized to do business in Texas and doing business as PLM/KBK
Acceptance Corporation ("KBK"), and Basis, Inc. an Arizona corporation
("Seller"). This Agreement shall become effective as of the day it is accepted
in the State of Texas by KBK as indicated at the end hereof by the date and
signature on behalf of KBK.

          WHEREAS, KBK is in the business of purchasing accounts receivable
          ("accounts"); and

          WHEREAS, Seller desires, from time to time during the term of this
          Agreement, to sell accounts to KBK; and

          WHEREAS, the parties hereto desire to enter into this Agreement to
          govern the purchase and sale of accounts;

         NOW THEREFORE, in consideration of the premises, the mutual agreements
         herein contained and for other good and valuable consideration, the
         receipt and sufficiency of which are hereby acknowledged, the parties
         agree as follows:

1.       OFFER OF ACCOUNTS. At its election from time to time during the term of
         this Agreement, Seller agrees to offer for sale to KBK certain of its
         accounts arising out of sales of goods, or services rendered, by
         Seller, and to sell to KBK on the terms set forth in this Agreement
         such of the offered accounts as KBK may accept for purchase in the
         State of Texas. KBK shall have the absolute right in its sole
         discretion to reject any or all offered accounts, whether or not KBK
         has previously purchased accounts of any particular account debtor
         hereunder. The parties agree that, without the prior consent of KBK,
         the maximum Gross Amount (as defined below) of accounts that KBK may
         purchase hereunder at any time, together with the Gross Amount of
         accounts previously purchased by KBK from Seller hereunder which then
         remain outstanding, will not exceed Three Million Dollars ($3,000,000)
         (the "Facility Amount"). KBK's consent to purchase accounts in excess
         of such amount may be evidenced by KBK's acceptance for purchase of
         such offered accounts.

2.       PURCHASE AND SALE OF ACCOUNTS. Each account purchased by KBK hereunder
         shall be purchased by KBK without recourse against Seller. All losses
         incurred by KBK from the financial inability of the applicable account
         debtor to pay such account over and above any and all Residual Payments
         (as hereinafter defined) and Reserve (as hereinafter defined) amounts
         offset shall be borne solely by KBK; provided, however, that nothing in
         this Agreement shall be construed to relieve Seller from liability for
         any breach by Seller of any representation, warranty or agreement of
         Seller contained herein. Notwithstanding any provision in this
         Agreement to the contrary, it is contemplated by and the intention of
         the parties hereto that accounts of Seller may be considered and
         purchased as one account (herein a "batch") and the terms "account" and
         "accounts" as used herein may also refer to and mean a "batch" or
         "batches," as the case may be.

         In connection with each offer of accounts to KBK, Seller agrees to
         deliver to KBK a written assignment of such accounts, together with a
         copy of all invoices relating to such accounts, and evidence of
         delivery of the related goods or performance of the related services
         (and, if requested, the original purchase orders from the applicable
         customers), all in a form satisfactory to KBK. In order for an account
         to be eligible for purchase by KBK, the related invoice must set forth,
         as the sole address for payment, the following post office box: P.O.
         Box _________ , _________ , ________ _________ ("Authorized Remittance
         Address") (or, upon notice from KBK, another post office box of KBK)
         and, in the case of payments to be effected by wire transfer or other
         electronic means, the related invoice must set forth, as the sole bank
         account for such payment, a bank account of KBK (or a third party
         designated by KBK) designated by KBK from time to time (except in each
         case as otherwise agreed in writing by KBK). KBK's acceptance for
         purchase of offered accounts shall be evidenced by KBK's tendering of
         the Initial Payment (as hereinafter defined) to Seller or otherwise
         delivering to Seller a schedule of accounts accepted for purchase by
         KBK. Seller's transference of offered accounts shall not be effective
         as to any accounts not accepted for purchase by KBK.

         Seller hereby sells, transfers, assigns and otherwise conveys to KBK
         (as a sale by Seller and a purchase by KBK, and not as security for any
         indebtedness or other obligation of Seller to KBK) all right, title and
         interest of Seller in and to all accounts accepted by KBK for purchase
         hereunder, together with all related rights (but not obligations) of
         Seller with respect thereto, including all contract rights, guarantees,
         letters of credit, liens in favor of Seller, insurance and other
         agreements and arrangements of whatever character from time to time
         supporting or securing payment of such accounts and all right, title
         and interest of Seller in any related goods, including Seller's rights
         and remedies under Article 2, Part 7 of the applicable Uniform
         Commercial Code ("UCC"). The foregoing sale, transfer, assignment and
         conveyance does not constitute and is not intended to result in an
         assumption by KBK of any obligation of Seller or any other person in
         connection with the accounts or related rights or under any agreement
         or instrument relating thereto. Seller agrees to execute and deliver
         such bills of sale, assignments, letters of credit, notices of
         assignment, financing statements (including continuation statements)
         under the applicable UCC and other documents, and make such entries and
         markings in its books and records, and to take all such other actions
         (including the negotiation, assignment or transfer of negotiable
         documents, letters of credit or other instruments) as KBK may request
         to further evidence or protect the sales and assignments of accounts
         and related rights to KBK hereunder, as well as KBK's interest in any
         returned goods referred to

                                        1
<PAGE>   2

          in Section 7 hereof.

3.       TERMS OF ACCOUNTS. Except as otherwise may be agreed to in writing by
         KBK from time to time, the terms of sale offered by Seller to its
         account debtors with respect to all accounts offered to KBK for
         purchase hereunder shall be NET 30 DAYS. After an account has been
         purchased by KBK, Seller shall not have the right to vary the terms of
         sale set forth in the invoice relating to such account, or any other
         aspect of the account, except in Seller's capacity as agent for KBK for
         purposes of collection of accounts purchased by KBK as set forth in
         Section 8 hereof, and then only with the prior written consent of KBK.

4.       PURCHASE PRICE. The purchase price for each account purchased hereunder
         shall consist of and be paid by the Initial Payment and the Residual
         Payment. The Initial Payment shall be payable by KBK to Seller on the
         business day that KBK accepts for purchase the related account, and the
         Residual Payment shall be payable by KBK to Seller within three (3)
         business days after KBK receives and deposits the proceeds of
         collection for the subject account in an amount equal to the Net Amount
         (as hereinafter defined) of such account (subject to KBK's right to
         withhold payment of Residual Payments hereunder, and subject to KBK's
         right to withhold, offset and charge, each as described below).

         "Initial Payment" means eighty percent (80%) of the Gross Amount of an
         account. "Gross Amount" of an account means the gross face amount
         payable pursuant to the related invoice. "Net Amount" of an account
         means the Gross Amount of such account, less all permitted discounts,
         deductions and allowances. "Residual Payment" with respect to an
         account means the aggregate amount collected with respect to such
         account, less the sum of (i) the Initial Payment with respect to such
         account, (ii) the KBK Discounts (as hereinafter defined), (iii) any and
         all attorneys' fees and other costs of collection.

5.       FIXED AND VARIABLE DISCOUNTS. "Fixed Discount" means a discount of
         one-half of one percent (0.5%) of the Gross Amount of such account;
         provided, that with respect to accounts that remain outstanding for
         more than ninety (90) days after the invoice date thereof, "Fixed
         Discount" shall mean a discount of one percent (1.0%) of the Gross
         Amount of such accounts. "Variable Discount" means a discount computed
         on the Initial Payment and accruing on the basis of actual days elapsed
         from the date of Initial Payment until and including five business days
         after KBK receives and deposits the proceeds of collection of such
         account at a per annum rate equal to KBK's Base Rate (as hereinafter
         defined) in effect on the date of purchase of such account plus two
         percent (2.0%) per annum; provided, however, in no event shall the
         Variable Discount with respect to any account purchased hereunder be
         less than seven percent (7.0%) per annum. "Base Rate" means that per
         annum variable rate (expressed as a per annum percentage based on a
         year consisting of 360 days) determined from time to time by KBK
         without notice to Seller as KBK's Base Rate for purposes of calculating
         variable discounts under KBK's account transfer agreements. The Fixed
         Discount and the Variable Discount shall be collectively referred to
         herein as the "KBK Discounts". The KBK Discounts may be subject to one
         or more adjustments during the term of this Agreement if a Performance
         Based Pricing Addendum is attached hereto. If a Performance Based
         Pricing Addendum is attached hereto, it is then made a part hereof as
         though fully written herein.

6.       RESERVE. In the event that KBK believes Seller has breached any
         material representation, warranty, covenant or agreement contained
         herein (including, without limitation, in the event an account
         purchased by KBK becomes a Disputed Account as hereinafter defined),
         any account is not paid in full within 90 days from the date of
         purchase of such account, or KBK deems itself insecure hereunder, KBK
         may at its election, withhold and accumulate the payment of the
         Residual Payments ("Reserve") with respect to any or all accounts
         purchased hereunder to the extent necessary to maintain a Reserve in an
         amount up to the sum of (a) the total Initial Payments made by KBK with
         respect to accounts purchased by KBK hereunder which remain
         uncollected, plus (b) the total of the KBK Discounts with respect to
         such accounts and (c) such other amounts which may become due by Seller
         to KBK hereunder or under any other agreement. Seller hereby authorizes
         KBK to offset and charge any and all amounts for which Seller or the
         Reserve may be obligated to pay to KBK pursuant to the terms of this
         Agreement against the Reserve, and at KBK's election, against any funds
         of Seller in the possession or control of KBK, from whatever source.
         However, if, on any business day that KBK regularly makes a payment to
         Seller for accounts purchased, none of the foregoing conditions exists
         and no other breach of this Agreement by Seller exists, then KBK shall
         distribute to Seller the Residual Payments then due and all funds it
         then has on hand that it has collected from accounts that KBK has not
         then purchased.

7.       CERTAIN SECURITY. For the purpose of securing KBK (a) in the payment of
         any and all sums of money that may become due and owing KBK from Seller
         by reason of this Agreement, (b) in the performance by Seller of
         Seller's obligations hereunder, and under any other agreement,
         contract, document, note or other instrument in favor of KBK or its
         assignees and (c) in the performance of all the obligations of all
         Affiliates (as hereinafter defined) under each Affiliate's agreements,
         contracts, documents, notes or other instruments in favor of KBK or its
         assigns, Seller hereby grants to KBK a security interest in (i) all of
         Seller's present and future inventory, accounts, account and contract
         rights, proceeds of inventory, contracts, drafts, acceptances,
         documents, instruments, chattel paper, deposit accounts, general
         intangibles and all products and proceeds therefrom, including all
         returned or repossessed goods, as well as all books and records
         pertaining to all of the foregoing, (ii) all amounts due as Residual
         Payments or withheld by KBK as the Reserve pursuant to Section 6 hereof
         and (iii) all money and other funds of Seller now or hereafter in the
         possession, custody or control of KBK, from whatever source. The term
         "Affiliate" shall mean with respect to any person or entity in
         question, any other person or entity owned or controlled by, or which
         owns or controls or is under common control or is otherwise affiliated
         with such person or entity in question. Seller agrees to execute and
         deliver such financing statements under the applicable UCC and other
         documents, and make such entries and markings in its books and records
         and to take all such other

                                       2
<PAGE>   3

          actions, as KBK may request to further evidence, perfect, preserve or
          protect the security interest granted to KBK hereunder. KBK shall have
          all rights and remedies in respect of the lien and security interest
          herein granted as are provided in this Agreement, the UCC and other
          applicable law, including the right at any time, before or after any
          default by Seller of any of its obligations hereunder, to notify
          account debtors and obligors on instruments to make payment to KBK (or
          its designee) and to take control of proceeds to which KBK is
          entitled, and to apply proceeds to (in addition to other obligations
          of Seller to KBK) the reasonable attorneys' fees and legal expenses
          incurred by KBK in connection with the disposition of collateral or
          the other exercise of rights and remedies by KBK.

          Seller herein acknowledges and warrants to KBK that it has received
          and will receive, direct and indirect benefits by and from granting
          this security interest to KBK to secure the obligations of any
          Affiliate to KBK.

         In the event a security interest has heretofore been granted and given
         to KBK by Seller in a prior agreement(s) or document(s) to secure
         certain obligations, then, in such event, and notwithstanding anything
         in this Agreement to the contrary, including Section 23 hereof, the
         lien and security interest herein granted and given to KBK is in
         renewal and extension, and not in extinguishment of, all such prior
         liens and security interests and are valid and subsisting liens and
         security interests to secure all prior, existing and new obligations of
         Seller to KBK hereunder and under any such prior agreements, which
         obligations are likewise herein renewed and extended, in any manner,
         including any action required in connection with or by virtue of the
         United States Bankruptcy Code (the "Bankruptcy Code").

8.       SERVICING. KBK hereby appoints Seller as servicing agent for KBK
         ("Servicer") for the purpose of expediting the payment of accounts
         purchased by KBK hereunder which become past due. Servicer agrees to
         maintain an active, on-going and regular dialogue with each Account
         Debtor. Servicer further agrees to utilize all powers, influences and
         rights and take every action within its control in accordance with its
         customary practices and applicable law to expedite the collection of
         the accounts purchased by KBK which become past due and direct such
         payments in specie exclusively to the Authorized Remittance Address.
         Seller will furnish to KBK, upon request, any and all papers, documents
         and records in its possession or control related to accounts purchased
         by KBK hereunder, or related to Seller's business relationship with the
         respective account debtors, and agrees to cooperate fully with KBK in
         all matters related to collection of accounts purchased by KBK
         hereunder. KBK reserves the right to terminate such servicing
         relationship at any time with or without cause and without notice to
         Servicer.

         Seller authorizes KBK to forward directly to account debtors statements
         or invoices on accounts purchased by KBK hereunder, and to request
         payment at such address or to such bank account as may be designated by
         KBK. Seller agrees that, if any payment is made to Seller on any
         account purchased by KBK from Seller hereunder, Seller (i) will hold
         such payment in trust for KBK, (ii) will not commingle such payment
         with any funds of Seller, and (iii) will deliver such payment to KBK,
         in the exact form received, by the close of business on the next
         business day following receipt thereof by Seller. If any goods relating
         to an account purchased by KBK hereunder shall be returned to or
         repossessed by Seller, Seller shall give prompt notice thereof to KBK
         and shall hold such goods in trust for KBK, separate and apart from
         Seller's own property, and such goods shall be owned solely by KBK and
         be subject to KBK's direction and control. Seller shall properly store
         and protect such goods and agrees to cooperate fully with KBK in any
         subsequent disposition thereof for the benefit of KBK.

         Seller authorizes KBK to collect, sue for and give releases for in the
         name of Seller or KBK in KBK's sole discretion, all amounts due on
         accounts sold to KBK hereunder. Seller specifically authorizes KBK to
         endorse, in the name of Seller, all checks, drafts, trade acceptances
         or other forms of payment tendered by account debtors in payment of
         accounts sold to KBK hereunder and made payable to Seller. KBK shall
         have no liability to Seller for any mistake in the application of any
         payment received with respect to any account, IT BEING THE SPECIFIC
         INTENT OF THE PARTIES HERETO THAT KBK SHALL HAVE NO LIABILITY HEREUNDER
         FOR ITS OWN NEGLIGENCE except for its own gross negligence or willful
         misconduct. Seller hereby waives notice of nonpayment of any account
         sold to KBK hereunder as well as any and all other notices with respect
         to such accounts, demands or presentations for payment, and agrees that
         KBK may extend or renew from time to time the payment of, or vary or
         reduce the amount payable under or compromise any of the terms of, any
         account purchased by KBK, in each case without notice to or the consent
         of Seller. Seller further authorizes KBK (or its designee) to open and
         remove the contents of any post office box of Seller or KBK (or its
         designee) which KBK believes contains mail relating to accounts, and in
         connection therewith or otherwise, to receive, open and dispose of mail
         addressed to Seller which KBK believes may relate to accounts, and in
         order to further assure receipt by KBK (or its designee) of mail
         relating to such accounts, to notify other parties including customers
         and postal authorities to change the address for delivery of such mail
         addressed to Seller to such address as KBK may designate. KBK agrees to
         use reasonable measures to preserve the contents of any such mail which
         does not relate to accounts purchased hereunder and to deliver same to
         Seller (or, at the election of KBK, to notify Seller of the address
         where Seller may take possession of such contents; provided, if Seller
         does not take possession of such contents within 30 days after notice
         from KBK to take possession thereof, KBK may dispose of such contents
         without any liability to Seller). Seller hereby irrevocably appoints
         KBK (and any employee, agent or other person designated by KBK, any of
         whom may act without joinder of the others) as Seller's
         attorneys-in-fact and agents, in Seller's name, place and stead, to
         take all actions, execute and deliver all notices, negotiate such
         instruments and other documents, as may be necessary or advisable to
         permit KBK (or its designee) to take any and all of the actions
         described in this paragraph or to carry out the purpose and intent
         thereof, as fully and for all intents and purposes as Seller could
         itself do, and hereby ratifies and confirms all that said
         attorneys-in-fact and agents may do or cause to be done by virtue
         hereof. This

                                       3
<PAGE>   4

          power of attorney is irrevocable and deemed coupled with an interest.

9.       REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby represents and
         warrants to KBK with respect to each account offered by Seller to KBK
         hereunder that (i) Seller is the sole owner of such account, which
         account is free and clear of any liens, claims, equities or
         encumbrances whatsoever, and upon each purchase by KBK of such account,
         KBK will own such account free and clear of any liens, claims, equities
         or encumbrances whatsoever and the consideration received by Seller
         from KBK for such account is fair and adequate, (ii) Seller is the sole
         obligee under such account, and has full power and is duly authorized
         to sell, assign and transfer such account to KBK hereunder, and the
         date of sale of such account is not more than 30 days after the date of
         the original invoice relating to such account, (iii) Seller has no
         knowledge of any fact which would lead it to expect that, at the date
         of sale of such account to KBK , such account will not be paid in the
         full stated amount when due, (iv) such account arises out of a bona
         fide sale of conforming goods or the bona fide rendition of services by
         Seller, and all underlying goods have been delivered to the account
         debtor, or all underlying services have been rendered by Seller, in
         complete fulfillment of all of the terms and conditions of a fully
         executed, delivered and unexpired contract with the account debtor, and
         the account debtor has accepted the goods or services to which the
         account relates, (v) such account is denominated and payable only in
         United States dollars and constitutes the legal, valid and binding
         payment obligation of the account debtor, enforceable in accordance
         with its terms (except as such enforceability may be limited by
         applicable bankruptcy, insolvency, reorganization, moratorium or other
         similar laws affecting the enforcement of creditors' rights generally),
         (vi) such account is current and not past due as of the date of
         purchase by KBK, has not been paid by or on behalf of the account
         debtor in whole or in part, and is not and will not be subject to any
         dispute, rescission, set-off, recoupment, defense or claim by the
         account debtor, whether relating to price, quality, quantity,
         workmanship, delay in delivery, set off, counterclaim or otherwise, and
         the account debtor has not and will not claim any defense of any kind
         or character (other than bankruptcy or insolvency arising after the
         date of sale of such account to KBK hereunder) against payment of such
         account, and (vii) as of the date of purchase by KBK of such account,
         the account debtor with respect to such account is located (within the
         meaning of Section 9-103 of the applicable UCC) and has its principal
         executive offices within the United States. Seller further represents
         and warrants to KBK that (a) the execution, delivery and performance of
         this Agreement by Seller have been duly authorized and this Agreement
         constitutes the legal, valid and binding obligation of Seller,
         enforceable against Seller in accordance with its terms (except as such
         enforceability may be limited by applicable bankruptcy, insolvency,
         reorganization, moratorium or other similar laws affecting the
         enforcement of creditors' rights generally), (b) Seller is not a debtor
         in any bankruptcy proceedings, insolvent, undergoing composition or
         adjustment of debts or unable to make payment of its obligations when
         due and no petition in bankruptcy has been filed by or against Seller
         or any Affiliate, nor has Seller or any Affiliate filed any petition
         seeking an adjustment of its debts or for any other relief under the
         Bankruptcy Code, and no application for appointment of a receiver or
         trustee for all or a substantial part of the property of Seller or any
         Affiliate is pending, nor has Seller or any Affiliate made any
         assignment for the benefit of creditors, (c) Seller is not in default
         of any debt or obligation to KBK, any other lender or other creditor,
         and (d) Seller's principal place of business, chief executive office,
         the location where all records concerning its books of account and
         contract rights are kept, and (except any additional locations listed
         on Schedule A attached hereto) the sole location of any property
         subject to the security interest granted herein is its "Address for
         Notices" set forth on the signature page hereon. Seller agrees not to
         change the location of its principal place of business or chief
         executive office, the location where its records concerning its books
         of account or contract rights are kept, or the location of any property
         subject to the security interest granted herein, without giving at
         least 15 days advance written notice thereof to KBK pursuant to Section
         20 herein. Seller does business under no trade or assumed names except
         as may be listed on Schedule A attached hereto.

          Each representation and warranty of Seller contained in this Agreement
          shall be deemed to be made at and as of the date hereof and at and as
          of the date of each sale of accounts to KBK hereunder.

         Seller agrees to indemnify and hold all Indemnified Persons (as
         hereinafter defined) harmless against any breach by Seller of any
         representation, warranty or agreement of Seller contained in this
         Agreement, and against any claims or damages arising out of the
         manufacture, sale, possession or use of, or otherwise relating to,
         goods, or the performance of services, associated with or relating to
         accounts or related rights purchased (or with respect to which a
         security interest is granted) hereunder. The term "Indemnified Persons"
         shall mean KBK and its officers, directors, shareholders, employees,
         attorneys, representatives, agents, Affiliates, successors and assigns.

         Seller agrees to notify KBK immediately of any breach by Seller of any
         representation, warranty or agreement of Seller contained herein or
         should any representation, warranty or agreement made herein become
         untrue or false at any time. Seller further agrees to notify KBK
         immediately of the assertion by any account debtor of any dispute or
         other claim (including any defense or offset asserted by any account
         debtor) with respect to any account sold to KBK hereunder, or with
         respect to any related goods or services ("Disputed Accounts"). Upon
         KBK's request, Seller agrees to settle, at its own expense and for the
         benefit of KBK, all such Disputed Accounts; provided, that any such
         settlement shall be made only with the prior written consent of KBK.
         Unless KBK is advised in writing by Seller to the contrary, any account
         that has not been approved by the account debtor within sixty (60) days
         from the date of the invoice upon which the account is based, shall be
         deemed to be a Disputed Account. As to any Disputed Account, KBK shall
         have the right, in its sole discretion, (i) to settle at the expense of
         Seller (including all attorneys' fees and expenses of KBK) and for the
         benefit of KBK any such dispute or claim upon such terms as KBK may in
         its sole discretion deem advisable or (ii) to assign the related
         account to Seller, without recourse to KBK , and charge any unpaid
         balance with respect thereto (up to the amount of the

                                       4
<PAGE>   5
          Initial Payment with respect thereto and KBK's Discounts through the
          date of such charge with respect thereto) against the Reserve or
          deduct such unpaid balance from any Initial Payments or against any
          money or other funds of Seller in the possession, custody or control
          of KBK, from whatever source. Seller agrees that, in lieu of KBK
          charging any such unpaid balance against the Reserve, Initial Payments
          or against such other funds, KBK may require Seller to pay (and Seller
          hereby agrees to pay) to KBK on demand any such unpaid balance. An
          account with respect to which the account debtor has asserted an
          Insolvency Claim is not a Disputed Account. As used herein,
          "Insolvency Claim" means any defense or other claim by an account
          debtor with respect to an account sold to KBK hereunder arising solely
          out of the bankruptcy or insolvency of the account debtor or the
          financial inability of the account debtor to pay, if Seller has not
          breached its representation contained in clause (vi) of the first
          paragraph of this Section. Notwithstanding anything herein to the
          contrary, KBK shall have the right to charge all accounts not paid
          because of an Insolvency Claim against the Reserve and such charge
          shall have priority over and be paid before any Disputed Account
          charge.

10.      FINANCIAL STATEMENTS; OTHER DOCUMENTS. Seller represents and warrants
         that all financial and other information provided by Seller to KBK in
         connection with or in Seller's application to KBK or to induce KBK to
         enter into this Agreement is true, complete and correct in all material
         respects. Seller agrees to furnish to KBK (i) within 90 days after the
         last day of each fiscal year of Seller, a consolidated statement of
         income and a consolidated statement of cash flows of Seller for such
         fiscal year, and a consolidated balance sheet of Seller as of the last
         day of such fiscal year, in each case audited by an independent
         certified public accounting firm acceptable to KBK, together with a
         copy of any report to management delivered to Seller by such
         accountants in connection therewith, (ii) within 45 days after the last
         day of each fiscal quarter of Seller, an unaudited consolidated
         statement of income and statement of cash flows of Seller for such
         quarter, and an unaudited consolidated balance sheet of Seller as of
         the last day of such quarter, (iii) within 45 days after the last day
         of each calendar month of Seller, an unaudited consolidated statement
         of income and statement of cash flows of Seller for such month, and an
         unaudited consolidated balance sheet of Seller as of the last day of
         such month, and (iv) promptly after the end of each month, evidence of
         Seller's payment of all payroll taxes. Seller represents and warrants
         that each such statement of income and statement of cash flows will
         fairly present, in all material respects, the results of operations and
         cash flows of Seller for the period set forth therein, and that each
         such balance sheet will fairly present, in all material respects, the
         financial condition of Seller as of the date set forth therein, all in
         accordance with generally accepted accounting principles applied on a
         consistent basis, except as otherwise noted in the accompanying
         auditors' report (or, with respect to unaudited financial statements,
         in the notes thereto). Seller also agrees to furnish to KBK, upon
         request, such additional financial and business information concerning
         Seller and its business as KBK may reasonably request, including copies
         of its Form 941 returns filed with the Internal Revenue Service and
         evidence of payment of related taxes. KBK and its agents,
         representatives and accountants shall have the right, at all times
         during normal business hours and upon twenty-four (24) hours prior
         notice to Seller so long as Seller is in compliance with the terms
         hereof, to conduct an audit or other examination of the financial and
         business records of Seller and to examine and make copies of all books
         and records of Seller for the purpose of assuring or verifying
         compliance by Seller with the terms of this Agreement, and Seller
         agrees to cooperate fully with KBK and its agents, representatives and
         accountants in connection therewith and to timely pay all costs
         associated with such audits at a rate equal to $700.00 per day, per
         person, plus out-of-pocket expenses. Seller agrees to properly reflect
         the effect of this Agreement, and all sales related thereto, in all
         financial reports and disclosures, written or otherwise, provided to
         Seller's creditors and other interested parties. Seller specifically
         agrees that all accounts purchased by KBK will be excluded from
         Seller's reported accounts receivable balances. Seller also
         specifically agrees to immediately notify KBK of any material adverse
         change in Seller's financial condition or business.

11.      FINANCIAL COVENANTS.

         (a)   Tangible Net Worth. Borrower shall maintain a Tangible Net Worth
               of no less than $400,000.00. For purposes hereof, (i) "Tangible
               Net Worth" shall mean the amount by which Borrower's total assets
               exceeds its total liabilities, plus any Subordinated Debt, less
               any intangible assets (as determined by generally accepted
               accounting principles and practices which are recognized as such
               by the Financial Accounting Standards Board (or any generally
               recognized successor), consistently applied), and (ii)
               "Subordinated Debt" shall mean any indebtedness owing by Borrower
               to a creditor other than KBK which has been subordinated and
               subject in right of payment to the prior payment of all
               indebtedness and obligations now or hereafter owing by Borrower
               to KBK, such subordination to be evidenced by a written agreement
               between KBK and the subordinated creditor which is in form and
               substance satisfactory to KBK.

12.      TAXES. All taxes and governmental charges of any kind imposed with
         respect to the sale of goods or the rendering of services relating to
         accounts purchased by KBK hereunder shall be for the account of, and
         paid by, Seller.

13.      FEES. Seller hereby agrees to pay to KBK a termination fee equal to one
         percent (1.0%) of the Facility Amount (the "Termination Fee") and the
         payment shall be an obligation of Seller secured under Section 7
         hereof. This Termination Fee is payable upon termination of this
         Agreement by Seller for any reason or upon termination by KBK at its
         election for the reasons set forth in the second sentence of Section 14
         below. KBK's right to a termination fee expires after one (1) year from
         the date of the Agreement.

14.      TERMINATION. This Agreement may be terminated by either party hereto by
         delivery of written notice of termination of this Agreement to the
         other party specifying the date of termination, which date shall be at

                                       5
<PAGE>   6
         least 30 days after the date such notice is given. KBK may, at its
         election, terminate this Agreement immediately and without the
         requirement of notice to Seller if (i) Seller shall fail to perform any
         of its obligations hereunder or shall breach any of its representations
         and warranties hereunder, (ii) Seller or any of its Affiliates shall
         become insolvent or suspend all or a substantial part of its or their
         business, (iii) a petition under the Bankruptcy Code or any other
         insolvency or debtor statute shall be filed by or against Seller or any
         Affiliate or any receivership proceedings with respect thereto shall
         commence, (iv) any guarantee of any of Seller's obligations hereunder
         shall be terminated or become impaired, (v) an event of default occurs
         under any other agreement now or hereafter executed between Seller and
         KBK, or (vi) KBK otherwise determines that it is insecure hereunder.

         Termination of this Agreement shall not affect the rights and
         obligations of the parties hereunder with respect to transactions
         occurring on or prior to the date of such termination, and this
         Agreement shall continue to govern the rights and obligations of the
         parties hereto with respect to accounts purchased by KBK from Seller on
         or prior to the date of such termination. All security interests
         granted or contemplated by this Agreement shall survive the termination
         of this Agreement until all amounts payable to KBK with respect to
         transactions occurring on or prior to the date of termination have been
         paid to KBK, and Seller has performed all its obligations to KBK with
         respect to such transactions and all obligations under this Agreement
         including but not limited to payment of any fees owing hereunder.

15.      NOTICE OF PROPOSED REFINANCING. Seller hereby agrees that in the event
         (a) Seller receives a written proposal from any third party to provide
         financing or factoring ("Proposed Refinancing"), (b) the terms of the
         Proposed Refinancing are acceptable to Seller, and (c) Seller is
         considering accepting the Proposed Refinancing from the offeror
         ("Offeror"), Seller will immediately advise KBK in writing of the
         identity of the Offeror, the complete terms and conditions of the
         Proposed Refinancing and provide KBK a full and complete copy of all
         written correspondence between Seller and Offeror describing the
         Proposed Refinancing. Seller agrees not to accept the Proposed
         Refinancing from the Offeror until at least 10 business days after
         delivery of the foregoing items to KBK.

16.      ATTORNEY'S FEES, LITIGATION EXPENSE. Seller agrees to reimburse KBK
         upon demand for KBK's attorneys' fees, court costs and other fees and
         expenses incurred in collecting any sums due or to become due to KBK
         hereunder, enforcing any of KBK's rights under this Agreement and all
         actions taken by KBK that it deems necessary or desirable under the
         Bankruptcy Code or should any provisions of the Bankruptcy Code be
         applicable to any rights or obligations of any party to this Agreement,
         as well as all appearances, motions and actions to which KBK may be or
         become a party in any bankruptcy case.

17.      GOVERNING LAW; VENUE; SUBMISSION TO JURISDICTION. THIS AGREEMENT SHALL
         BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
         OF TEXAS WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS
         THEREOF, EXCEPT TO THE EXTENT PERFECTION AND THE EFFECT OF PERFECTION
         OR NON-PERFECTION OF THE SECURITY INTEREST GRANTED HEREUNDER, IN
         RESPECT OF ANY PARTICULAR COLLATERAL, ARE GOVERNED BY THE LAWS OF A
         JURISDICTION OTHER THAN THE STATE OF TEXAS. THIS AGREEMENT IS
         PERFORMABLE BY THE PARTIES IN TARRANT COUNTY, TEXAS. SELLER AND KBK
         EACH AGREE THAT TARRANT COUNTY, TEXAS SHALL BE THE EXCLUSIVE VENUE FOR
         LITIGATION OF ANY DISPUTE OR CLAIM ARISING UNDER OR RELATING TO THIS
         AGREEMENT, AND THAT SUCH COUNTY IS A CONVENIENT FORUM IN WHICH TO
         DECIDE ANY SUCH DISPUTE OR CLAIM. SELLER AND KBK EACH CONSENT TO THE
         PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN
         TARRANT COUNTY, TEXAS FOR THE LITIGATION OF ANY SUCH DISPUTE OR CLAIM.
         SELLER IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
         OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE
         OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY
         SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN
         INCONVENIENT FORUM.

18.      WAIVER OF JURY TRIAL. SELLER AND KBK EACH HEREBY IRREVOCABLY WAIVES, TO
         THE MAXIMUM EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
         BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY AT ANY TIME
         ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
         TRANSACTION CONTEMPLATED HEREBY OR ASSOCIATED HEREWITH.

19.      AMENDMENTS; WAIVERS. This Agreement may be amended only in writing
         signed by the parties hereto. No failure on the part of KBK to
         exercise, and no delay by KBK in exercising, and no course of dealing
         by KBK with respect to, any right, power or privilege under this
         Agreement shall operate as a waiver thereof, nor shall any single or
         partial exercise of any right, power or privilege hereunder by KBK
         preclude any other or further exercise thereof or the exercise of any
         other right, power or privilege. The remedies of KBK hereunder are
         cumulative and not exclusive of any remedies provided by law.

20.      NOTICES. All notices and other communications provided for herein shall
         be given or made in writing and telecopied or delivered by courier or
         mail to the intended recipient at the "Address for Notices" specified
         opposite its name on the signature page hereto, or at such other
         address or telecopy number as shall be designated by a party to the
         other party in the manner specified in this Section. All such notices
         and other communications shall be deemed to have been duly given when
         transmitted by telecopier (with receipt thereof confirmed by
         telecopier) or personally delivered or, in the case of a mailed notice,
         upon deposit in

                                       6
<PAGE>   7
          the United States Postal System postage prepaid and properly
          addressed, in each case given or addressed as aforesaid.

21.      INDEMNIFICATION. Seller agrees to indemnify, defend and hold the
         Indemnified Persons harmless from and against any and all loss,
         liability, obligation, damage, penalty, judgment, claim, deficiency and
         expense (including interest, penalties, attorneys' fees and amounts
         paid in settlement) owing to any third party to which any Indemnified
         Person may become subject arising out of or based upon this Agreement
         as well as any prior relationship of Seller with any Indemnified
         Person, WHETHER BY ALLEGED OR ACTUAL NEGLIGENCE OF ANY INDEMNIFIED
         PERSON, except and to the extent caused by the gross negligence or
         willful misconduct of any Indemnified Person.

22.      WAIVER AND RELEASE. Seller, by its execution of this Agreement, does
         hereby covenant, warrant and represent that (i) Seller is not in
         default and no default exists under any prior agreements or
         transactions with KBK, (ii) Seller releases, relinquishes and waives
         any and all defenses to the enforceability of any prior agreements or
         transactions with KBK in connection therewith to which Seller may have
         otherwise been entitled as of the date hereof, (iii) Seller
         relinquishes, waives and releases KBK from any and all claims known or
         unknown which Seller may or might have against KBK arising directly or
         indirectly out of or from any prior agreements or transactions between
         Seller and KBK, (iv) the benefit received and to be received by Seller
         as a result of this Agreement shall and does constitute sufficient and
         valuable consideration to Seller for entering into and performing its
         obligations under this Agreement, (v) the execution, delivery and
         performance by Seller of this Agreement and the consummation of the
         transaction contemplated thereby are (a) not prohibited by any
         indenture, contract or agreement, law or corporate or partnership
         documents, including, but not limited to the Bylaws and Articles of
         Incorporation or Certificate of Incorporation, as the case may be, if
         Seller is a corporation, or Seller's partnership agreement, if Seller
         is a partnership, (b) duly authorized by appropriate action of Seller,
         and (c) legally valid and binding obligations of Seller and will
         continue to be such and enforceable against the Seller according to
         their terms (except as such enforceability may be limited by applicable
         bankruptcy, insolvency, reorganization, moratorium or other similar
         laws affecting the enforcement of creditors' rights generally), (vi)
         that this Agreement will be executed and delivered by properly
         authorized officers of Seller, (vii) KBK has no obligation to continue
         the prior agreements or enter into this Agreement except for the
         considerations herein expressed, and (viii) the representations and
         warranties set forth herein will survive the execution and delivery of
         this Agreement.

23.      CAPTIONS; FINAL AGREEMENT; COUNTERPARTS; SUCCESSORS AND ASSIGNS.
         Captions and headings appearing herein are included solely for
         convenience of reference and are not intended to affect the
         interpretation of any provision of this Agreement. This Agreement
         represents the final agreement between the parties hereto with respect
         to the subject matter hereof, and supersedes all prior proposals,
         negotiations, agreements and understandings, oral or written, related
         to such subject matter. This Agreement may be executed in any number of
         counterparts, all of which taken together shall constitute one and the
         same instrument. Delivery of an executed counterpart of this Agreement
         by telecopy shall be equally as effective as delivery of a manually
         executed counterpart of this Agreement. Any party delivering an
         executed counterpart of this Agreement by telecopy also shall deliver a
         manually executed counterpart of this Agreement but the failure to
         deliver a manually executed counterpart shall not affect the validity,
         enforceability, and binding effect of this Agreement. This Agreement
         may not be assigned by Seller without the prior written consent of KBK.
         This Agreement may be assigned by KBK, and any accounts purchased by
         KBK hereunder, together with all rights and interests related thereto
         granted to KBK hereunder, may be assigned by KBK, all without notice to
         or the consent of Seller. This Agreement shall be binding upon the
         parties hereto and their respective successors and permitted assigns.

24.      EFFECTIVENESS OF AGREEMENT. This Agreement shall become effective only
         upon acceptance by KBK at its offices in Fort Worth, Tarrant County,
         Texas as evidenced by KBK's signature hereon.

25.      TRUE SALES. Seller and KBK acknowledge and agree that the sale of
         accounts contemplated and covered hereby are fully intended by the
         parties hereto as true sales governed by the provisions of Article
         5069-1H.103 of the Texas Revised Civil Statutes and Section 9.102 of
         the Texas Business and Commerce Code, as each may be amended from time
         to time, and, accordingly, legal and equitable title in all of Seller's
         accounts sold to and purchased by KBK from time to time hereunder will
         pass to KBK.

IN WITNESS WHEREOF, the parties hereto, heretofore duly authorized, have
executed this Agreement as of the date first set forth above.

Address for Notices:                       SELLER:
3708 E. Columbia Street, #110
Tucson, Arizona  85714                     BASIS, INC.

Telecopy No.:  520-747-4900                By:     /s/    James Heim
                                                   ----------------------------
                                           Name:           James Heim
                                                   ----------------------------
                                           Title:           Sec./Treas.
                                                   ----------------------------

Address for Notices:                       KBK FINANCIAL, INC.:
301 COMMERCE STREET
2200 CITY CENTER                           By:     /s/    Sherri McCoy
                                                   ----------------------------
FORT WORTH, TEXAS  76102                   Name:           Sherri McCoy

                                       7
<PAGE>   8

Telecopy No.:  (817) 258-6114              Title:          Vice President
                                                   ----------------------------
                                           Date:           April 5, 2001
                                                   ----------------------------

STATE OF
         ---------------------------

COUNTY OF
          --------------------------

     The foregoing instrument was acknowledged before me this ____ day of
___________, 2001, by _________________ as _____________ of _____________.

Witness my hand and official seal.

My Commission expires:                           /s/
                                                 ------------------------------
                                                 As a representative of KBK

                                       8
<PAGE>   9

                                   SCHEDULE A
                                       TO
                     ACCOUNT TRANSFER AND PURCHASE AGREEMENT
                              Dated March 29, 2001
                                 By and Between
                               KBK FINANCIAL, INC.
                                       AND
                                   BASIS, INC.

The addresses of any other locations of Collateral referenced in Section 9:

5758 Hollis Street
Emeryville, California  94068

Any trade or assumed names referenced in Section 9:  [NONE]

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]