Document:

EXHIBIT 10.11

                AMENDMENT NO. 2 TO REGISTRATION RIGHTS AGREEMENT
                              AND CONVERTIBLE NOTES

         This Amendment No. 2, dated as of November 8, 2004 (this "Amendment No.
2"), to the Registration Rights Agreement (as defined below) by and among
SYSTEMS EVOLUTION, INC., an Idaho corporation (the "Corporation") and the
Noteholders listed on Schedule I hereto (the "Noteholders"), and to the Notes
(as defined below) issued by the Corporation to the Noteholders.

                              W I T N E S S E T H :
                               - - - - - - - - - -

         WHEREAS, the Corporation and the Noteholders are parties to a Note and
Warrant Purchase Agreement, dated as of August 31, 2004 (the "Purchase
Agreement"), pursuant to which the Corporation issued to the Noteholders
$1,825,000 aggregate principal amount of 8% convertible promissory notes (the
"Notes") and warrants (the "Warrants") to purchase an aggregate of 36,500,000
shares of the Corporation's common stock, no par value; and

         WHEREAS, as of October 9, 2004, the Corporation and the Noteholders
have entered into an Agreement amending the Registration Rights Agreement (as
defined below) and the Notes ("Amendment No. 1"), and believe it desirable to
enter into this Amendment No. 2 to extend further certain filing and other
deadlines in the Registration Rights Agreement and Notes so as to permit
additional funding to the Corporation to be included in the Registration
Statement (as defined below) and participation by certain of the Noteholders in
such additional funding; and

         WHEREAS, the Corporation and the Noteholders are parties to a
Registration Rights Agreement, dated as of August 31, 2004 (the "Registration
Rights Agreement"), pursuant to which the Corporation agreed to file the
Registration Statement (as defined in the Registration Rights Agreement) by the
Filing Date (defined in the Registration Rights Agreement, as amended by
Amendment No. 1), as the sixtieth (60th) day following September 9, 2004, the
date of the initial closing (the "Closing Date", as defined in the Registration
Rights Agreement) of the purchase and sale of the Notes and Warrants pursuant to
the Purchase Agreement; and

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         WHEREAS, it is an Event of Default under the Notes, as amended by
Amendment No. 1, (i) if the Registration Statement is not declared effective by
the Securities and Exchange Commission on or prior to the date which is one
hundred eighty (180) days after the Closing Date or (ii) if default shall be
made in the performance or observance of any material covenant, condition or
agreement contained in the Registration Rights Agreement; and

         WHEREAS, the Corporation and the Noteholders believe it advisable and
agree to amend the definition of Filing Date in the Registration Rights
Agreement so as to permit filing the Registration Statement at a later date so
that the Corporation may obtain additional funding and include the common stock
of the Corporation issued in such funding, or underlying the securities issued
in such funding, in the Registration Statement; and

         WHEREAS, the Corporation and the Noteholders further believe it
advisable and agree to amend the Registration Rights Agreement to provide that
liquidated damages will be paid if the Registration Statement is not declared
effective by the Securities and Exchange Commission on or prior to the date
which is two hundred ten (210) days after the Closing Date; and

         WHEREAS, the Corporation and the Noteholders further believe it
advisable and agree to amend the Notes to provide that it is an Event of Default
under the Notes only if the Registration Statement is not declared effective by
the Securities and Exchange Commission on or prior to the date which is two
hundred ten (210) days after the Closing Date; and

         WHEREAS, pursuant to Section 7(f) of the Registration Rights Agreement
and Section 4.7 of each of the Notes, the Corporation and the Noteholders are
willing to enter into this Amendment No. 2 for purposes of amending the
Registration Rights Agreement and the Notes.

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         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants contained herein, the parties agree as follows:

         Section 1. Amendments to Registration Rights Agreement.

         1.1 By their respective execution of this Amendment No. 2, the
Corporation and the Noteholders, constituting the requisite parties in interest,
agree that the definition of Filing Date in Section 1 of the Registration Rights
Agreement is hereby amended to read in its entirety as follows:

         ""Filing Date" means the ninetieth (90th) day following the Closing
Date."

         1.2 By their respective execution of this Amendment No. 2, the
Corporation and the Noteholders, constituting the requisite parties in interest,
agree that Section 7(e)(B) of the Registration Rights Agreement is hereby
amended to read in its entirety as follows:

         "the Registration Statement is not declared effective by the Commission
on or prior to the two hundred tenth (210th) day following the Closing Date (or
in the event an additional Registration Statement is filed because the actual
number of shares of Common Stock into which the Notes are convertible and the
Warrants are exercisable exceeds the number of shares of Common Stock initially
registered is not filed and declared effective with the time periods set forth
in Section 2), or"

         1.3 By their respective execution of this Amendment No. 2, the
Corporation and the Noteholders, constituting the requisite parties in interest,
agree that the proviso in Section 7(e) of the Registration Rights Agreement is
hereby amended to read in its entirety as follows:

         "(provided that, with respect to the Event described in clause (B), the
"first calendar month" shall be deemed to commence on the one hundred twentieth
(120th) day prior to the applicable Event Date)"

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         Section 2. Amendment to Notes.

         2.1 By their respective execution of this Amendment No. 2, the
Corporation and the Noteholders, constituting the requisite parties in interest,
agree that Article II, Section 2.1 (c), shall be amended to read in its entirety
as follows:

         "(c) the failure of the Registration Statement (when used herein such
term shall have the meaning set forth in the Registration Rights Agreement) to
be declared effective by the Securities and Exchange Commission on or prior to
the date which is two hundred ten (210) days after the Closing Date, unless as
provided in Section 7(e) of the Registration Rights Agreement where the Maker
has exercised its rights under Section 3(n) of such Agreement; or"

         Section 3. Miscellaneous.

         3.1 Limited Effect. Except as expressly amended and modified by this
Amendment No. 2, all of the terms and provisions of the Registration Rights
Agreement and Notes, as amended, are and shall continue to remain in full force
and effect in accordance with the terms thereof.

         3.2 Fees and Expenses. The Corporation shall pay all actual attorneys'
fees and expenses (including disbursements and out-of-pocket expenses) incurred
by the Noteholders in connection with this Amendment No. 2.

         3.3 Counterparts. This Amendment No. 2 may be executed by one or more
of the parties hereto in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

         3.4 Entire Agreement. This Amendment No. 2, Amendment No. 1, the
Registration Rights Agreement and Notes (including the schedules referenced
therein) constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Corporation and the Noteholders with respect to the subject
matter hereof.

<PAGE>

         3.5 Governing Law. This Amendment No. 2 shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving effect to any of the conflicts of law principles which would result in
the application of the substantive law of another jurisdiction. This Amendment
No. 2 shall not be interpreted or construed with any presumption against the
party causing this Amendment No. 2 to be drafted.

                            [SIGNATURE PAGE FOLLOWS]

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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2
to the Registration Rights Agreement and Notes to be duly executed and delivered
by their respective authorized officers as of the date first above written.

                             SYSTEMS EVOLUTION, INC.

                             By: /s/ Robert C. Rhodes
                                 ------------------------------------
                                 Name: Robert C. Rhodes, II
                                 Title: Chief Executive Officer

                             NOTEHOLDERS:

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                                Title:EXHIBIT 10.12

                               Factoring Agreement

        This Agreement, dated October 15, 2004 (the "Effective Date"), is
between Systems Evolution Incorporated with offices at 10707 Corporate Drive.,
Ste. 156, Stafford, Texas 77477 (hereinafter called "Seller"), and Allied
Capital Partners, L.P., with offices at 5151 Belt Line Rd., Suite 500, Dallas,
Texas 75254 (hereinafter called "Allied").

         The Seller desires to sell its Accounts to Allied on the following
         terms, conditions and provisions and, therefore, it is agreed as
         follows:

         1.      Definitions. As used in this Agreement and all other documents
                 or instruments executed and delivered in connection with this
                 Agreement:

                  1.1 The following words shall have the same definitions as
                      those set forth in the Uniform Commercial Code as adopted
                      by the State of Texas effective July 1, 2001: "Accounts,"
                      "Account Debtor," "Chattel Paper," "Collateral,"
                      "Financing Statement," "Insolvent," "Proceeds," "Security
                      Interest," and "Supporting Obligations."

                  1.2 "Without Recourse" shall mean the Seller of Accounts is
                      not obligated to pay or repurchase an Account sold to
                      Allied unless Seller breaches its warranties or
                      representations concerning such Account. "With Recourse"
                      or "Recourse" means Seller shall pay or repurchase
                      Accounts acquired by Allied that are not paid according to
                      the terms of the invoice.

      1.3 "Face Amount" shall mean the total amount of each Account, including
taxes, delivery charges, etc.

                  1.4 An Account shall be deemed to be "Disputed" if (i) the
                      Account Debtor disputes any of the terms of an Account,
                      including the amount owing, timely delivery of the goods,
                      conformity of the goods or services to the order, or any
                      other aspect of the sale giving rise to the Account for
                      any reason whatsoever, even if the dispute has no merit,
                      is in bad faith or is unreasonable, (ii) the Account
                      contains mistakes, is not correct or was sent in error, or
                      (iii) all of the following three conditions exist: (a) the
                      Account is not paid within 90 days of its invoice date,
                      (b) the Account Debtor will not communicate the reason for
                      non-payment to Allied, and (c) the Seller fails to
                      produce, within such time period, good and sufficient
                      evidence that nonpayment is due to the Account Debtor's
                      financial inability to pay, the pendency of a bankruptcy
                      proceeding by or against the Account Debtor or some reason
                      other than a dispute of the type referred to above.

<PAGE>

                  1.5 "Discount" shall mean the sum of the following: (i) 1.75%
                      of the Face Amount of each Account sold to Allied under
                      this Agreement for the Initial Payment Period and (ii)
                      .06% for each 1 day period that the Account remains unpaid
                      after the Initial Payment Period (as hereinafter defined),
                      until the earlier of (a) the date it is paid in full or
                      repurchased by the Seller in accordance with this
                      Agreement, or (b) if the Account is not one that the
                      Seller is or becomes obligated to pay or repurchase, 150
                      days from the date of the invoice of the Account.

                  1.6 "Initial Payment Period" shall mean the period of 30 days
                      from the date Allied has purchased an Account under this
                      Agreement.

                  1.7 "Purchase Price" shall mean the Face Amount of the Account
                      less the Discount.

        Other words used herein, which are capitalized, shall have the
        definitions prescribed herein. Variations of words defined herein shall
        have the same meaning as the defined terms.

        2.       Offer to Sell. Seller may, at its option, offer to sell, assign
                 and transfer to Allied its existing and hereinafter arising,
                 acquired or created Accounts. Any such offer shall be made on
                 an assignment form prescribed by Allied (the "Schedule") sent
                 to Allied at its above stated office and accompanied by a copy
                 of (i) each invoice, (ii) the bill of lading, shipping
                 documents or other proof of delivery, (iii) the contract or
                 purchase order (or purchase order number which corresponds with
                 the invoice), and (iv) such other documentation as may be
                 requested by Allied for each Account listed on the Schedule.

<PAGE>

        3.       Acceptance of Offer. Allied may accept Seller's offer to sell
                 Accounts at its above stated office by either (i) paying the
                 Purchase Price (less the Reserve, defined below) with respect
                 to all Accounts appearing on the Schedule submitted to Allied,
                 or (ii) by marking out the Accounts which appear on the
                 Schedule and which Allied is unwilling to purchase, paying the
                 Purchase Price (less the Reserve) for the remaining Accounts,
                 and sending a copy of the Schedule to Seller which shows which
                 Accounts were rejected. Allied shall not be obligated to
                 purchase any Account that Seller offers to sell to Allied.

        4.       Reserve. Allied may, at its sole option and discretion, defer
                 making payment to Seller of a portion of the Purchase Price
                 payable for all Accounts purchased under this Agreement which
                 have not been paid by the Account Debtor or paid or repurchased
                 by Seller's payment of the Repurchase Price to Allied, up to an
                 aggregate amount equal to 13.25% of the Face Amount of all such
                 Accounts (the "Reserve"). The Reserve shall not bear interest.
                 The remaining portion of the Purchase Price payable for each

<PAGE>

                 Account purchased hereunder and which constitutes part of the
                 Reserve is payable by Allied to Seller, on request of Seller
                 (limited to one request per week), after the earlier of (i) the
                 date the Account is paid to Allied, or (ii) 150 days from the
                 date of the invoice of the Account, unless the Reserve is
                 increased as herein provided or the Account is or becomes one
                 that the Seller is obligated to repurchase or pay.
                 Notwithstanding the preceding limitation on the Reserve, in the
                 event Seller breaches any representation, warranty, term,
                 condition or provision of this Agreement, or if in Allied's
                 reasonable judgment it is necessary to increase the Reserve to
                 protect Allied from losses due to a Dispute of any Account,
                 returns or other contingencies, or Seller's unsatisfied
                 obligations and liabilities, Allied is entitled to increase the
                 amount of the Reserve without Seller's consent. If any Account
                 owned by Allied is not paid within 75 days of the date of the
                 invoice related thereto, Allied may presume that the Account
                 may be Disputed and may increase the Reserve by an amount equal
                 to that portion of the Purchase Price previously paid by Allied
                 plus the Discount. In the event Allied notifies Seller that it
                 has increased the Reserve, Seller shall immediately refund to
                 Allied a portion of the Purchase Price previously paid by
                 Allied for the purchase of Seller's Accounts which is equal to
                 the increased amount of the Reserve. After the Term of this
                 Agreement defined below has expired and Seller has paid its
                 liabilities to Allied and fulfilled its obligations arising
                 hereunder, Allied shall pay the balance of the Purchase Price
                 payable for all Accounts purchased hereunder which constitutes
                 Reserve (if any) to Seller. The purpose of the Reserve is to
                 provide Allied with additional collateral to secure payment of
                 Seller's liabilities and performance of Seller's obligations
                 arising under this Agreement. Allied shall be entitled to
                 offset or recoup from the Reserve the amount of any liabilities
                 owing by Seller to Allied, whether presently existing or
                 hereinafter arising, and whether or not arising under this
                 Agreement, including, but not limited to, Seller's obligation
                 to repurchase Accounts or to pay Accounts pursuant to the
                 provisions of this Agreement. Seller acknowledges that the
                 Reserve is not a cash deposit, but represents the balance of
                 Allied's liability to Seller for payment of the Purchase Price,
                 subject to its right of offset or recoupment and its security
                 interest in the Reserve. Allied shall provide Seller with a
                 monthly statement of accounting of transactions affecting the
                 Reserve.

5.      Seller's Repurchase Obligation. In addition to all other rights of
        Allied hereunder, Allied may require that Seller repurchase, by payment
        of the Repurchase Price together with any other unpaid fees then owing
        to Allied, any Account that has been purchased by Allied: (i) for which
        Seller has breached its warranty or representation concerning such
        Account as set forth herein; or (ii) which was purchased by Allied With
        Recourse. If any Account purchased by Allied is one that Seller is or
        becomes obligated to pay or repurchase under this Agreement and is not
        paid within the Initial Payment Period, Allied, at Allied's sole
        discretion, may elect to: (i) retain ownership of the Account until the
        earlier of either the date the Account is paid by the Account Debtor or
        90 days after the invoice date of the Account, or (ii) at any time
        require Seller to repurchase the Account at the Repurchase Price. The
        purchase price for any Account, which Seller is required to repurchase
        from Allied under this Agreement is the Face Amount of the Account (the
        "Repurchase Price"). If Seller ever becomes obligated to repurchase an
        Account from Allied, it shall not become the owner of such Account until
        it has paid the Repurchase Price to Allied.

<PAGE>

6.      Minimum Sales. If Seller fails to offer to sell and assign to Allied a
        monthly minimum of $0 in Accounts which are acceptable to Allied, Seller
        will pay to Allied the difference between the Discount on all Accounts
        purchased by Allied from Seller during the month and $0.

7.      Recourse. Except as provided below, all Accounts sold and purchased
        hereunder are sold Without Recourse on Seller. Allied may notify Seller
        in writing that the Accounts of a specific Account Debtor shall be
        purchased only With Recourse; thereafter, any Accounts of such Account
        Debtor which are purchased by Allied shall be purchased only With
        Recourse on Seller.

8.      Account Warranties. Seller warrants, represents, covenants and agrees
        that the presently existing and hereafter arising, acquired or created
        Accounts of Seller sold to Allied or in which Allied obtains a security
        interest: (i) are not and will not be Disputed; (ii) will be paid when
        due (unless the Account was purchased Without Recourse); (iii) are owned
        solely by Seller, which has the power to transfer the Accounts, and that
        its title to the Accounts is free of all adverse claims, liens, security
        interests and restrictions on transfer, encumbrance or pledge, except as
        created by this Agreement; (iv) set forth the correct and complete terms
        of sale, which have not been and will not be altered or amended; (v) are
        valid and owing, and all goods and services giving rise to the Accounts
        have been provided or delivered in accordance with Seller's agreement
        with the Account Debtor; (vi) will not be paid by a preference payment
        or fraudulent transfer (as defined by the Bankruptcy Code or the
        relevant law of any state); (vii) are not and shall not become subject
        to a defense or claim in recoupment or setoff that can be asserted
        against Allied; (viii) are not owing by Account Debtors that were
        subject to insolvency or bankruptcy proceedings concerning which Seller
        had any notice as of the date the Account is sold, or in which Seller
        owns an interest of any kind; (ix) shall be reflected on Seller's books
        and records as having been transferred, sold and conveyed to Allied if
        Allied purchases such Accounts; and (x) shall be evidenced by an
        invoice, and each invoice shall have printed on the face thereof a
        statement, approved by Allied, notifying the Account Debtor that the
        invoice has been sold and assigned to Allied and is payable only to
        Allied (or jointly to Allied and Seller) at the address designated in
        such notice and that, if the Account is paid, the Account will be paid
        by the Account Debtor in accordance with such instructions. The
        warranties and representations set forth herein shall apply as of the
        date each Account is sold hereunder and shall continue with respect to
        each Account until each such Account is paid. If Seller breaches any
        warranty, covenant or agreement set forth above, Seller shall repurchase
        the applicable Account for the Repurchase Price, or pay the Account;
        such payment or repurchase shall cure Seller's default for breach of
        warranty with respect to such Account.

<PAGE>

9.      Other Warranties and Covenants of Seller. Seller further warrants,
        represents, covenants and agrees that as of the Effective Date and at
        all times during the Term of this Agreement: (i) Seller is and shall be
        able to pay its debts as they become due; (ii) Seller's (a) chief
        executive office is located in the State of Texas, (b) state of
        incorporation or charter is the State of Texas and (c) exact legal name
        is as set forth in the first paragraph of this Agreement, and Seller
        does not operate under any trade name or assumed name except: Systems
        Evolution Inc.; (iii) Allied is and shall remain Seller's sole factor,
        and Seller will not sell its Accounts to any other person, firm or
        corporation during the Term; (iv) after written notice by Allied to
        Seller and automatically, without notice, after Seller's default under
        this Agreement, Seller shall not, without the prior written consent of
        Allied in each instance, (a) grant any extension of time for payment of
        any Accounts or any other Collateral which includes a monetary
        obligation, (b) compromise or settle any Accounts or any such other
        Collateral for less than the full amount thereof, (c) release in whole
        or in part any Account Debtor or other person liable for payment of
        Accounts or any other such Collateral, or (d) grant any credits,
        discounts, allowances, deductions, return authorizations or the like
        with respect to any Accounts or any such other Collateral; (v) before
        sending any invoice to an Account Debtor with respect to an Account that
        has been sold to Allied, Seller shall mark the same with a notice of
        assignment as may be required by Allied; (vi) Seller maintains and shall
        continue to maintain complete and accurate business records of the type
        normally maintained by businesses similar to Seller, and all financial
        records, statements, books and other documents shall be made available
        for Allied's inspection and shall be true and accurate in all respects;
        (vii) the Accounts and Collateral are and shall at all times remain free
        and clear of liens, claims and encumbrances other than the security
        interests granted to Allied hereunder; (viii) Seller insures and shall
        continue to insure its business and its assets in a manner customary for
        businesses of the type of Seller's business, and Seller will insure its
        inventory and goods in transit for their full value; (ix) Seller will
        not sell, encumber or move the Collateral except in the ordinary course
        of its business, without the prior written consent of Allied; (x) Seller
        is and shall remain in compliance with all federal, state and local tax
        laws, rules and regulations and shall furnish Allied with evidence
        thereof on demand; (xi) Seller will preserve its corporate existence and
        not, in one transaction or series of related transactions, merge into or
        consolidate with any other entity, change the form of its legal
        existence, or sell all or substantially all of its assets; and (xii)
        Seller will not change the state where it is located, will not change
        the state where it is incorporated, will not amend its corporate
        charter, and will not change its corporate name without providing Allied
        with at least 30 days prior written notice. Seller also agrees that, if
        an Account purchased by Allied authorizes the Account Debtor to discount
        the Face Amount of the Account for prompt payment, the Seller shall pay
        to Allied an amount equal to the discount taken by the Account Debtor
        (even if not properly taken) and Allied is authorized to offset such
        discount against the Reserve.

<PAGE>

10.     Notice to Allied. Seller shall immediately notify Allied of (i) a
        Dispute of any Account sold or encumbered under this Agreement, (ii) any
        other breach of warranty or default in Seller's covenants and agreements
        set forth herein, (iii) Seller's discovery of evidence of Insolvency of
        an Account Debtor, and (iv) the filing and service of a lawsuit or
        adversary proceeding related to an Account purchased by Allied or the
        payment related thereto (including, but not limited to, preference or
        fraudulent transfer litigation).

11.     Security Interest in Collateral. To secure Seller's payment to Allied of
        all amounts owing to Allied hereunder or damages arising due to Seller's
        breach of the terms, warranties, representations, or conditions of this
        Agreement or any other agreement by and between Allied and Seller,
        whether now or hereafter owing to Allied, Seller grants to Allied a
        Security Interest in all of its presently existing and hereinafter
        arising, acquired or created: Accounts, Chattel Paper, Supporting
        Obligations, and all amounts owing to Seller hereunder, including the
        Purchase Price and Reserve, and all Proceeds thereof. Seller agrees as
        follows with respect to the aforementioned Collateral: (i) Allied shall
        have the right at any time and in its sole discretion to enforce
        Seller's rights against the Account Debtors and obligors; (ii) Seller
        will not pledge, hypothecate or encumber the Collateral during the Term
        of this Agreement and while it is indebted or otherwise obligated to
        Allied; (iii) Allied may exercise all rights and remedies of an unpaid
        seller with respect to Accounts, Supporting Obligations, and Chattel
        Paper constituting Collateral hereunder, including the right of
        replevin, reclamation and stoppage in transit; (iv) Seller has the risk
        of loss of the Collateral; and (v) Allied shall have no duty to collect
        the Collateral or preserve or enforce any rights relating to the
        Collateral.

12.     Inspection of Records. Any agent of Allied may audit, check, make
        abstracts from or copies of the books, records, receipts,
        correspondence, memoranda, and other papers or data relating to the
        Collateral, Accounts purchased under this Agreement, the obligations of
        Seller to Allied and any other transactions between Seller and Allied,
        or generally audit all of Seller's books and records at Seller's place
        of business upon Allied's demand therefore. Seller shall at all times
        maintain a complete set of books and records containing up-to-date
        posting of all of its cash and accrual transactions of any nature.

<PAGE>

13.     Property of Allied/Proceeds and Returned Goods Held in Trust. After
        Allied has purchased an Account from Seller, (i) the Account and all
        proceeds thereof shall become the sole and absolute property of Allied,
        (ii) Allied may at any time in its sole discretion notify all Account
        Debtors of Accounts purchased by Allied that such Accounts have been
        sold and assigned to Allied and are payable only to Allied at the
        address provided by Allied, (iii) Seller shall immediately make proper
        entries on its books and records disclosing the absolute sale of such
        Accounts to Allied, (iv) Seller shall not hinder, delay or interfere
        with payment of Accounts and shall cooperate with and assist Allied in
        connection with Allied's handling, collection or other dealings with the
        Accounts and Account Debtors, including, without limitation, assisting
        Allied in obtaining written confirmation, statements or agreements from
        Account Debtors which specify or confirm any information requested by
        Allied with respect to the Accounts, and (v) Seller shall hold any
        check, commercial paper, notes, cash or other forms of payment of any
        Account sold to Allied which may come into Seller's possession or under
        its control (even if such payment is payable to Seller) in trust for the
        benefit of Allied and shall immediately turn over and deliver to Allied
        all such payments, in kind, and in the exact form received. Seller shall
        endorse any instrument or other form of payment which is payable to
        Seller, but which is paid on an Account sold to Allied hereunder. In the
        event of the return or non-acceptance, in whole or in part, of property,
        the sale of which resulted in Accounts which were sold and assigned to
        Allied, the Seller shall hold such property in trust for Allied, give to
        Allied immediate notice of such return or non-acceptance, immediately
        turn over such property to the custody and control of Allied, and
        legibly mark such merchandise as the property of Allied; thereafter,
        upon demand, Seller shall repurchase such property from and pay to
        Allied the invoice price thereof, and upon such payment the Seller shall
        be entitled to the redelivery of such property. If Seller fails to make
        such purchase and payment immediately upon demand, it shall be in
        default hereunder and Allied shall be entitled (in addition to its other
        remedies) to sell such property at public or private sale and to charge
        Seller's account with the difference between the invoice price of such
        property and the amount realized upon the sale, plus all charges, fees
        and commissions upon such sale. Allied may become a bidder and purchaser
        at any such sale.

<PAGE>

14.     Breach of Trust Fee. Seller's strict adherence to the provisions of
        Paragraph 13 is essential in order for Allied to purchase Seller's
        Accounts at the Discount and on the other terms set forth in this
        Agreement. Seller agrees that the provisions of such paragraph are of
        the essence of this Agreement and agrees to implement policies and
        procedures to ensure its consistent and prompt performance of its
        obligations hereunder. In the event Seller breaches its obligations
        under such paragraph for reasons other than excusable neglect (which
        shall be determined solely by Allied in its sole judgment and
        discretion), (i) Allied may immediately terminate this Agreement and
        charge the Termination Fee, as defined in Paragraph 17 below, (ii)
        Seller shall pay to Allied a fee equal to 15% of the amount of any
        payment or other property which was received by Seller as property of
        Allied in addition to all other amounts owing to Allied, and (iii)
        Seller, at Allied's option, shall immediately repurchase all Accounts
        acquired by Allied which are then owing by the Account Debtors by
        payment of the Repurchase Price to Allied, even if such Accounts were
        purchased Without Recourse.

15.     Power of Attorney. Seller makes, constitutes and appoints Allied as
        Seller's true and lawful attorney-in-fact with power of substitution and
        with power and authority to: (i) endorse the name of Seller or of any of
        its officers or agents upon any notes, checks, drafts, money orders, or
        other instruments of payment; (ii) sign and endorse the name of Seller
        or any of its agents upon any invoice, freight or express bill, bill of
        lading, storage or warehouse receipt, drafts against Account Debtors,
        assignments, verifications, demands under letters of credit and notices
        in connection with Accounts acquired by Allied or which are Collateral
        under this Agreement, and any instrument or document relating thereto or
        to Seller's rights therein; (iii) execute any agreement compromising and
        settling any Dispute or collection of any Account owned by Allied or
        owned by Seller, if Seller is in default hereunder, on terms and
        conditions acceptable to Allied in its sole discretion; (iv) bring suit
        in the name of Seller or Allied to collect any Account; (v) amend the
        terms of any Account owned by Allied or owned by Seller, if Seller is in
        default hereunder; (vi) execute any financing statements (including
        amendments) to perfect Allied's Security Interest granted by this
        Agreement; (vii) execute and file in the name of Seller or Allied, or
        both, mechanics' liens and all related notices and claims under any
        payment bond, in connection with goods or services sold by Seller for
        the improvement of realty; (viii) notify any Account Debtor obligated
        with respect to any Account purchased by Allied that the underlying
        Account has been assigned to Allied by Seller and that payment thereof
        is to be made to the order of and directly and solely to Allied; (ix)
        communicate directly with Account Debtors to verify the amount and
        validity of any Account and to collect payment; (x) if Allied (in its
        sole and absolute discretion) declares Seller to be in default
        hereunder, give written notice to such office and officials of the
        United States Post Office to effect such change or changes of address
        that all mail addressed to Seller may be delivered directly to Allied.
        Seller's attorney-in-fact is hereby granted full power to do all
        necessary things to accomplish the above as fully and effectively as
        could Seller; and (xi) exercise reclamation rights of Seller and to file
        a claim in a bankruptcy proceeding of an Account Debtor (which Seller
        requests Allied to do). Seller ratifies all that the attorney-in-fact
        shall lawfully do or cause to be done by virtue hereof. The power of
        attorney shall be irrevocable for the Term of this Agreement and all
        transactions hereunder.

<PAGE>

16.     Default. Except as specifically provided herein, the following events
        shall constitute a default under this Agreement: (i) Seller fails to pay
        any amounts owing hereunder or fails to fulfill its other obligations
        under this Agreement or fails to make payments or fulfill obligations
        under any other agreements that it may have with Allied, (ii) Seller's
        warranties or representations set forth herein prove to be untrue or
        false in any respect, howsoever minor, (iii) Seller or any guarantor of
        the payment and performance of obligations hereunder becomes subject to
        any debtor-relief proceedings, (iv) any such guarantor fails to perform
        or observe any of such guarantor's obligations to Allied or to notify
        Allied of its intention to rescind, modify, terminate, or revoke any
        guaranty, or any such guaranty ceases to be in full force and effect for
        any reason whatsoever, or (v) Allied, for any reason, in good faith,
        deems itself insecure with respect to the prospect of repayment or
        performance of the obligations of Seller. All warranties and
        representations of Seller under this Agreement
         are continuing warranties and representations.
        17. Term. Unless sooner terminated by either of the parties hereto, the
        initial Term of this Agreement shall commence on the Effective Date and
        continue for twelve months thereafter, and this Agreement shall
        automatically renew for additional six-month renewal Terms at the end of
        the initial Term and each renewal Term unless either party hereto gives
        written notice to the other at least 30 days prior to the end of the
        original Term or any renewal Term that the Term is not renewed. (Such
        initial Term and renewal Term is the "Term.") Allied may terminate this
        Agreement at any time (i) if the Seller is in default under this
        Agreement, by giving written notice to Seller, or (ii) by giving 30 days
        advance written notice to Seller. Provided Seller is not in default
        hereunder, Seller may terminate this Agreement at any time by giving 30
        days prior written notice to Allied, accompanied by the Termination Fee.
        A fee of 2% of the lesser of (a) $1,500,000 or (b) the maximum amount of
        outstanding Accounts purchased by Allied at any time during the Term
        shall be paid by Seller to Allied if this Agreement is terminated by
        Seller (except as hereinafter provided) or if this Agreement is
        terminated by Allied due to Seller's breach of any warranty, term,
        condition or provision of this Agreement (the "Termination Fee");
        provided, however, the Termination Fee is waived if Seller is not in
        default and obtains a bank loan, secured by its Accounts, and pays all
        of its obligations to Allied from the loan proceeds. The Termination Fee
        is not a penalty, but is a reasonable estimate of the damages Allied is
        likely to suffer as a result of termination, and constitutes agreed
        liquidated damages. All obligations hereunder shall continue in full
        force and effect with respect to all transactions entered into and
        obligations, whether absolute or contingent, existing or incurred before
        the end of the Term.

<PAGE>

18.     Miscellaneous. The parties agree to the following additional terms:

         18.1 This Agreement shall be binding upon and inure to the benefit of
        both parties and their legal representatives, successors and assigns.

         18.2 This Agreement shall be construed and enforced in accordance with
        and governed by the laws of the State of Texas. Venue for the
        institution of any legal proceeding shall be in Dallas County, Texas.
        Each sale of an Account to Allied under this Agreement is an "Account
        Purchase Transaction" as defined by section 306.001(1) of the Texas
        Finance Code and is subject to such subtitle of the Texas Finance Code.

         18.3 If any term of this Agreement is held to be illegal, invalid, or
        unenforceable, such determination shall not affect the validity of the
        remaining terms. Time is of the essence of this Agreement.

<PAGE>

         18.4 Seller authorizes Allied to file a Financing Statement describing
        the above described Collateral (and all amendments thereto and renewals
        thereof) any place Allied may deem necessary or appropriate, with or
        without the signature of Seller thereon. Allied may enforce and
        foreclose its Security Interest in the Collateral in accordance with its
        rights under the Texas Uniform Commercial Code.

         18.5 All notices under this Agreement shall be in writing and delivered
        personally, faxed or mailed by certified mail, return receipt requested,
        or postage prepaid. The parties shall use the addresses or fax number
        set forth below for all notices, unless the party giving the notice has
        received written notice from the recipient of a change of address or fax
        number at least 10 days prior to the notice given under this Agreement.

                          Allied Capital Partners, L.P.
                                  PO Box 676649
                              Dallas, TX 75267-6649
                    Hand Delivery or overnight delivery only:
                          5151 Beltline Road, Ste. 500
                                Dallas, TX 75254
                             Facsimile: 972-404-0060

                                     Seller:
                         Systems Evolution Incorporated
                         10707 Corporate Drive, Ste. 156
                               Stafford, TX 77477
                             Facsimile: 281-265-7577

         18.6 Seller waives all notices of default, opportunity to cure,
         presentment, demand, protest, and notice of dishonor.

         18.7 This Agreement constitutes the entire understanding between the
        parties. It may not be changed or terminated except in an instrument
        signed by both parties.

<PAGE>

         18.8 Allied shall not be deemed to have waived any of its rights and
        remedies unless the waiver is in writing and signed by Allied. A waiver
        by Allied of a right or remedy under this Agreement on one occasion
        shall not constitute a waiver of the right or remedy on any subsequent
        occasion.

         18.9 Each statement of Seller's account which Allied sends to Seller
        shall be deemed acceptable and binding upon Seller unless Allied
        receives written notice from Seller stating in detail and with
        particularity any exception thereto within 30 days after the date
        thereof.

         18.10Seller shall reimburse Allied for the following costs incurred by
              Allied in the course of performing its functions under this
              Agreement: credit research, certified mail postage, UCC searches
              and UCC filing fees, and wire transfer fees. The cost of credit
              reports shall be reimbursed at $20.00 per report; all other costs
              shall be reimbursed at Allied's actual cost. Seller also agrees to
              reimburse Allied the actual amount of costs and expenses,
              including reasonable attorney's fees, incurred by Allied in
              protecting, preserving or enforcing any lien, security interest,
              title, collateral or other right granted by Seller to Allied or
              arising under applicable law, whether or not suit is brought,
              including but not limited to the defense of fraudulent transfer
              and preference claims, enforcement of this Agreement or recovery
              of any damages incurred by Allied as a result of the Seller's
              default.

                 18.11 Seller agrees to execute any further documents and to
                       take any further actions reasonably requested by Allied
                       to evidence or perfect the Security Interest granted
                       herein or the assignments of Accounts pursuant hereto, or
                       to give effect to any of the rights granted to Allied
                       under this Agreement. If Allied (in its sole and absolute
                       discretion) declares Seller to be in default hereunder,
                       Allied may, at any time: (i) notify any Account Debtor to
                       make payment of any Account directly to Allied,
                       regardless of whether such Accounts have been purchased
                       by Allied or Allied has a Security Interest therein, and
                       (ii) initiate electronic debit or credit entries through
                       the ACH system to Seller's bank accounts or other deposit
                       account maintained by Seller, wherever located, to
                       collect all amounts owing to Allied by Seller.

<PAGE>

                 18.12 Seller has signed this agreement and submits the
                       Agreement to Allied for acceptance at Allied's offices in
                       Dallas, Dallas County, Texas. Seller and Allied shall
                       make all payments and perform all other obligations
                       arising hereunder at Dallas County, Texas, and this
                       Agreement is made and entered into at Dallas County,
                       Texas. Dallas County, Texas, shall be the venue for any
                       litigation arising under this Agreement. In the event it
                       becomes necessary for Allied to obtain a temporary
                       restraining order or other injunctive relief in order to
                       enforce the provisions of this Agreement, Seller hereby
                       agrees to such an order, and the parties agree that the
                       Court may require a bond which does not exceed the sum of
                       $1,000.00 as a condition therefor, and such bond shall be
                       reasonable and adequate in all respects and under all
                       circumstances.

                 18.13 All amounts payable to Allied by Seller under this
                       Agreement are payable on demand by Allied, except amounts
                       payable under Paragraph 13 of this Agreement, for which
                       no demand is required; Allied is authorized, at its sole
                       option, to collect any payments owing by Seller to Allied
                       under this Agreement by debit, offset or recoupment from
                       or against the Reserve. In the event Seller is in default
                       under any of the terms of this Agreement, Allied may, at
                       its option, require Seller to repurchase all unpaid
                       Accounts that were purchased by Allied, even if such
                       Accounts were purchased Without Recourse. Interest shall
                       accrue on all past due sums owing to Allied by Seller at
                       18% per annum if Seller is a corporation or 10% per annum
                       if Seller is not a corporation.

<PAGE>

Seller:
Systems Evolution Inc.

By: /s/ Robert C. Rhodes
Name: Robert C. Rhodes, II
Title: CEO

Date:
Accepted at Dallas, Dallas County, Texas by Allied on the --day of
______________, 2004.

ALLIED CAPITAL PARTNERS, L.P.

BY: Tramel Capital Corporation

Its: General Partner
By:  /s/ Clay Tramel
-------------------------
Name: Clay Tramel
Title: President

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