Document:

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                                                                     EXHIBIT 4.6

                                 FORM OF WARRANT

        THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR
RESOURCEPHOENIX.COM, A DELAWARE CORPORATION (THE "COMPANY"), SHALL HAVE RECEIVED
AN OPINION, IN FORM, SCOPE AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY,
OF COUNSEL WHO IS REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

                              WARRANT D TO PURCHASE

                         SHARES OF CLASS A COMMON STOCK

                                       OF

                               RESOURCEPHOENIX.COM

                             Expires June 5, 2003

No.: W-B_                                              Number of Shares: 400,000
Date of Issuance:  June 6, 2000

        FOR VALUE RECEIVED, subject to the provisions hereinafter set forth, the
undersigned, ReSourcePhoenix.com, a Delaware corporation (together with its
successors and assigns, the "Issuer"), hereby certifies that Torneaux Ltd. or
its registered assigns is entitled to subscribe for and purchase, during the
period specified in this Warrant, up to 400,000 shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and
non-assessable Class A Common Stock (the "Common Stock") of the Issuer, at an
exercise price per share equal to the Warrant Price then in effect, subject,
however, to the provisions and upon the terms and conditions hereinafter set
forth. Capitalized terms used in this Warrant and not otherwise defined herein
shall have the respective meanings specified in Section 7 hereof.

        1. Term. The right to subscribe for and purchase shares of Warrant Stock
represented hereby shall commence on the date of issuance of this Warrant and
shall expire at

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5:00 p.m., eastern time, on June 5, 2003 (such period being the "Term");
provided, however, that the exercise of this Warrant shall be subject to the
following limitations:

        (i) the right to subscribe for and purchase the first 100,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of a portion of this Warrant shall be immediately granted to the Holder
at the time all shares of Common Stock into which the Warrant B issued to
Torneaux Ltd. on June 6, 2000 was exercisable have been sold (the "First
Exercise");

        (ii) the right to subscribe for and purchase the next 100,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of a portion of this Warrant shall be immediately granted to the Holder
upon the sale by the Holder of that number of shares of Common Stock purchased
pursuant to the First Exercise (the "Second Exercise");

        (iii) the right to subscribe for and purchase the next 100,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of a portion of this Warrant shall be immediately granted to the Holder
upon the sale by the Holder of that number of shares of Common Stock purchased
pursuant to the Second Exercise (the "Third Exercise"); and

        (iv) the right to subscribe for and purchase the final 100,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of the remaining portion of this Warrant shall be immediately granted
to the Holder upon the sale by the Holder of that number of shares of Common
Stock purchased pursuant to the Third Exercise.

If the registration statement contemplated by the Purchase Agreement is not
declared effective by the Securities and Exchange Commission, this Warrant, or
any unexercised portion thereof, may, at the Company's option, be canceled.

        2. Method of Exercise Payment; Issuance of New Warrant; Transfer and
Exchange.

        (a) Time of Exercise. The purchase rights represented by this Warrant
may be exercised in whole or in part at any time and from time to time during
the Term.

        (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election by certified or official bank
check.

        (c) Issuance of Stock Certificates. In the event of any exercise of the
rights represented by this Warrant in accordance with and subject to the terms
and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding three (3) Trading Days after such
exercise, and the Holder hereof shall be deemed for all purposes to be the
Holder of the shares of Warrant Stock so purchased as of the date of such
exercise, and (ii) unless this Warrant has expired, a new Warrant representing
the number of shares of Warrant Stock, if any,

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with respect to which this Warrant shall not then have been exercised shall also
be issued to the Holder hereof at the Issuer's expense within such time.

        (d) Transferability of Warrant. Subject to Section 2(e), this Warrant
may be transferred by a Holder without the consent of the Issuer. If transferred
pursuant to this subsection and subject to the provisions of subsection (e) of
this Section 2, this Warrant may be transferred on the books of the Issuer by
the Holder hereof in person or by duly authorized attorney, upon surrender of
this Warrant at the principal office of the Issuer, properly endorsed (by the
Holder executing an assignment in the form attached hereto) and upon payment of
any necessary transfer tax imposed upon such transfer. This Warrant is
exchangeable at the principal office of the Issuer for Warrants for the purchase
of the same aggregate number of shares of Warrant Stock, each new Warrant to
represent the right to purchase such number of shares of Warrant Stock as the
Holder hereof shall designate at the time of such exchange. All Warrants issued
on transfers or exchanges shall be dated the Original Issue Date and shall be
identical with this Warrant except as to the number of shares of Warrant Stock
issuable pursuant hereto.

        (e) Compliance with Securities Laws.

               (i) The Holder of this Warrant, by acceptance hereof,
        acknowledges that this Warrant or the shares of Warrant Stock to be
        issued upon exercise hereof are being acquired solely for the Holder's
        own account and not as a nominee for any other party, and for
        investment, and that the Holder will not offer, sell or otherwise
        dispose of this Warrant or any shares of Warrant Stock to be issued upon
        exercise hereof except pursuant to an effective registration statement,
        or an exemption from registration, under the Securities Act and any
        applicable state securities laws.

               (ii) Except as provided in paragraph (iii) below, this Warrant
        and all certificates representing shares of Warrant Stock issued upon
        exercise hereof shall be stamped or imprinted with a legend in
        substantially the following form:

               THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
               EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
               OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
               SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR
               OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
               AND UNDER APPLICABLE STATE SECURITIES LAWS OR
               RESOURCEPHOENIX.COM, A DELAWARE CORPORATION (THE "COMPANY"),
               SHALL HAVE RECEIVED AN OPINION, IN FORM, SCOPE AND SUBSTANCE
               REASONABLY ACCEPTABLE TO THE COMPANY, OF COUNSEL WHO IS
               REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION OF SUCH
               SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF
               APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

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               (iii) The restrictions imposed by this subsection (e) upon the
        transfer of this Warrant or the shares of Warrant Stock to be purchased
        upon exercise hereof shall terminate (A) when such securities shall have
        been resold pursuant to an effective registration statement under the
        Securities Act, (B) upon the Issuer's receipt of an opinion of counsel,
        in form and substance reasonably satisfactory to the Issuer, addressed
        to the Issuer to the effect that such restrictions are no longer
        required to ensure compliance with the Securities Act and state
        securities laws or (C) upon the Issuer's receipt of other evidence
        reasonably satisfactory to the Issuer that such registration and
        qualification under the Securities Act and state securities laws are not
        required. Whenever such restrictions shall cease and terminate as to any
        such securities, the Holder thereof shall be entitled to receive from
        the Issuer (or its transfer agent and registrar), without expense (other
        than applicable transfer taxes, if any), new Warrants (or, in the case
        of shares of Warrant Stock, new stock certificates) of like tenor not
        bearing the applicable legend required by paragraph (ii) above relating
        to the Securities Act and applicable state securities laws.

        (f) Continuing Rights of Holder. The Issuer will, at the time of or at
any time after each exercise of this Warrant, upon the written request of the
Holder hereof, acknowledge in writing the extent, if any, of its continuing
obligation to afford to such Holder all rights to which such Holder shall
continue to be entitled after such exercise in accordance with the terms of this
Warrant; provided that if any such Holder shall fail to make any such request,
the failure shall not affect the continuing obligation of the Issuer to afford
such rights to such Holder.

        3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

        (a) Stock Fully Paid. The Issuer represents, warrants, covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise hereunder will, upon issuance, be duly authorized,
validly issued, fully paid and non-assessable and free from all taxes and liens,
security interest, charges and encumbrances of any nature whatsoever created by
or through the Issuer. The Issuer further represents, warrants, covenants and
agrees that during the period within which this Warrant may be exercised, the
Issuer will at all times have authorized and reserved for the purpose of the
issue upon exercise of this Warrant a sufficient number of shares of Common
Stock to provide for the exercise of this Warrant.

        (b) Reservation. If any shares of Common Stock required to be reserved
for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal law before such shares may be so issued, the Issuer will in good faith
use its best efforts as expeditiously as possible at its expense to cause such
shares to be duly registered. If the Issuer shall list any shares of Common
Stock on any securities exchange or market it will, at its expense, list
thereon, maintain and increase when necessary such listing, of, all shares of
Warrant Stock from time to time issued upon exercise of this Warrant or as
otherwise provided hereunder, and, to the extent permissible under the
applicable securities exchange rules, all unissued shares of Warrant Stock which
are at any time issuable hereunder, so long as any shares of Common Stock shall
be so listed. The Issuer will also so list on each securities exchange or
market, and will maintain such listing of, any other securities which the Holder
of this Warrant shall be entitled to receive upon the

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exercise of this Warrant if at the time any securities of the same class shall
be listed on such securities exchange or market by the Issuer.

        (c) Covenants. The Issuer will (i) not permit the par value, if any, of
its Common Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of the Certificate of Incorporation or by-laws of the
Issuer in any manner that would adversely affect in any way the powers,
preferences or relative participating, optional or other special rights of the
Common Stock or which would adversely affect the rights of the Holders of the
Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, security interests,
charges, claims, encumbrances and restrictions (other than as provided herein or
created by the Holders hereof) upon the exercise of this Warrant, and (iv)
obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the
Issuer to perform its obligations under this Warrant.

        (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security satisfactory to the Issuer
or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

        4. Adjustment of Warrant Price and Warrant Share Number. The number and
kind of Securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time upon the happening of
certain events as follows:

        (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale.

               (i) In case the Issuer after the Original Issue Date shall do any
        of the following (each, a "Triggering Event"): (a) consolidate with or
        merge into any other Person and the Issuer shall not be the continuing
        or surviving Person of such consolidation or merger, or (b) permit any
        other Person to consolidate with or merge into the Issuer and the Issuer
        shall be the continuing or surviving Person but, in connection with such
        consolidation or merger, any Capital Stock of the Issuer shall be
        changed into or exchanged for Securities of any other Person or cash or
        any other property, or (c) transfer all or substantially all of its
        properties or assets to any other Person, or (d) effect a capital
        reorganization or reclassification of its Capital Stock, then, and in
        the case of each such Triggering Event, proper provision shall be made
        so that, upon the basis and the terms and in the manner provided in this
        Warrant, the Holder of this Warrant shall be entitled upon the exercise
        hereof at any time after the consummation of such Triggering Event, to
        the extent this Warrant is not exercised prior to such Triggering Event,
        to receive at the Warrant Price in effect at the time immediately prior
        to the consummation of such Triggering Event in lieu of the Common Stock
        issuable upon such exercise of this Warrant prior to such Triggering
        Event, the Securities, cash and property to which such Holder would have
        been entitled upon the consummation of such Triggering Event if such
        Holder had exercised the rights represented by this Warrant immediately
        prior

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        thereto, subject to adjustments (subsequent to such corporate action) as
        nearly equivalent as possible to the adjustments provided for in Section
        4 hereof.

               (ii) Notwithstanding anything contained in this Warrant to the
        contrary, the Issuer will not effect any Triggering Event unless, prior
        to the consummation thereof, each Person (other than the Issuer) which
        may be required to deliver any Securities, cash or property upon the
        exercise of this Warrant as provided herein shall assume, by written
        instrument delivered to, and reasonably satisfactory to, the Holder of
        this Warrant, (A) the obligations of the Issuer under this Warrant (and
        if the Issuer shall survive the consummation of such Triggering Event,
        such assumption shall be in addition to, and shall not release the
        Issuer from, any continuing obligations of the Issuer under this
        Warrant) and (B) the obligation to deliver to such Holder such shares of
        Securities, cash or property as, in accordance with the foregoing
        provisions of this subsection (a), such Holder shall be entitled to
        receive, and such Person shall have similarly delivered to such Holder
        an opinion of counsel for such Person, which counsel shall be reasonably
        satisfactory to such Holder, stating that this Warrant shall thereafter
        continue in full force and effect and the terms hereof (including,
        without limitation, all of the provisions of this subsection (a)) shall
        be applicable to the Securities, cash or property which such Person may
        be required to deliver upon any exercise of this Warrant or the exercise
        of any rights pursuant hereto.

        (b) Subdivision or Combination of Shares. If the Issuer, at any time
while this Warrant is outstanding, shall subdivide or combine any shares of
Common Stock, (i) in case of subdivision of shares, the Warrant Price shall be
proportionately reduced (as at the effective date of such subdivision or, if the
Issuer shall take a record of holders of its Common Stock for the purpose of so
subdividing, as at the applicable record date, whichever is earlier) to reflect
the increase in the total number of shares of Common Stock outstanding as a
result of such subdivision, or (ii) in the case of a combination of shares, the
Warrant Price shall be proportionately increased (as at the effective date of
such combination or, if the Issuer shall take a record of holders of its Common
Stock for the purpose of so combining, as at the applicable record date,
whichever is earlier) to reflect the reduction in the total number of shares of
Common Stock outstanding as a result of such combination.

        (c) Certain Dividends and Distributions. If the Issuer, at any time
while this Warrant is outstanding, shall:

               (i) Stock Dividends. Pay a dividend in, or make any other
        distribution to its stockholders (without consideration therefor) of,
        shares of Common Stock, the Warrant Price shall be adjusted, as at the
        date the Issuer shall take a record of the holders of the Issuer's
        Capital Stock for the purpose of receiving such dividend or other
        distribution (or if no such record is taken, as at the date of such
        payment or other distribution), to that price determined by multiplying
        the Warrant Price in effect immediately prior to such record date (or if
        no such record is taken, then immediately prior to such payment or other
        distribution), by a fraction (1) the numerator of which shall be the
        total number of shares of Common Stock outstanding immediately prior to
        such dividend or distribution, and (2) the denominator of which shall be
        the total number of shares of Common Stock outstanding immediately after
        such dividend or distribution (plus in the event that the

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        Issuer paid cash for fractional shares, the number of additional shares
        which would have been outstanding had the Issuer issued fractional
        shares in connection with said dividends); or

               (ii) Other Dividends. Pay a dividend on, or make any distribution
        of its assets upon or with respect to (including, but not limited to, a
        distribution of its property as a dividend in liquidation or partial
        liquidation or by way of return of capital), the Common Stock (other
        than as described in clause (i) of this subsection (c)), or in the event
        that the Company shall offer options or rights to subscribe for shares
        of Common Stock, or issue any Common Stock Equivalents, to all of its
        holders of Common Stock, then on the record date for such payment,
        distribution or offer or, in the absence of a record date, on the date
        of such payment, distribution or offer, the Holder shall receive what
        the Holder would have received had it exercised this Warrant in full
        immediately prior to the record date of such payment, distribution or
        offer or, in the absence of a record date, immediately prior to the date
        of such payment, distribution or offer.

        (d) Issuance of Additional Shares of Common Stock. If the Issuer, at any
time while this Warrant is outstanding, shall issue any Additional Shares of
Common Stock (otherwise than as provided in the foregoing subsections (a)
through (c) of this Section 4), at a price per share less than the Warrant Price
then in effect or less than the Per Share Market Value then in effect or without
consideration, then the Warrant Price upon each such issuance shall be adjusted
to that price (rounded to the nearest cent) determined by multiplying the
Warrant Price then in effect by a fraction:

               (i) the numerator of which shall be equal to the sum of (A) the
        number of shares of Common Stock outstanding immediately prior to the
        issuance of such Additional Shares of Common Stock plus (B) the number
        of shares of Common Stock (rounded to the nearest whole share) which the
        aggregate consideration for the total number of such Additional Shares
        of Common Stock so issued would purchase at a price per share equal to
        the greater of the Per Share Market Value then in effect and the Warrant
        Price then in effect, and

               (ii) the denominator of which shall be equal to the number of
        shares of Common Stock outstanding immediately after the issuance of
        such Additional Shares of Common Stock.

        The provisions of this subsection (d) shall not apply under any of the
circumstances for which an adjustment is provided in subsections (a), (b) or (c)
of this Section 4. No adjustment of the Warrant Price shall be made under this
subsection (d) upon the issuance of any Additional Shares of Common Stock which
are issued pursuant to any Common Stock Equivalent if upon the issuance of such
Common Stock Equivalent (x) any adjustment shall have been made pursuant to
subsection (e) of this Section 4 or (y) no adjustment was required pursuant to
subsection (e) of this Section 4. No adjustment of the Warrant Price shall be
made under this subsection (d) in an amount less than $.01 per share, but any
such lesser adjustment shall be carried forward and shall be made at the time
and together with the next subsequent adjustment, if any, which together with
any adjustments so carried forward shall amount to $.01 per share or more;
provided that upon any adjustment of the Warrant Price as a result of any
dividend or

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distribution payable in Common Stock or Convertible Securities or the
reclassification, subdivision or combination of Common Stock into a greater or
smaller number of shares, the foregoing figure of $.01 per share (or such figure
as last adjusted) shall be adjusted (to the nearest one-half cent) in proportion
to the adjustment in the Warrant Price.

        (e) Issuance of Common Stock Equivalents. If the Issuer, at any time
while this Warrant is outstanding, shall issue any Common Stock Equivalent and
the price per share for which Additional Shares of Common Stock may be issuable
thereafter pursuant to such Common Stock Equivalent shall be less than the
Warrant Price then in effect or less than the Per Share Market Value then in
effect, or if, after any such issuance of Common Stock Equivalents, the price
per share for which Additional Shares of Common Stock may be issuable thereafter
is amended or adjusted, and such price as so amended shall be less than the
Warrant Price or less than the Per Share Market Value in effect at the time of
such amendment, then the Warrant Price upon each such issuance or amendment
shall be adjusted as provided in the first sentence of subsection (d) of this
Section 4 on the basis that (1) the maximum number of Additional Shares of
Common Stock issuable pursuant to all such Common Stock Equivalents shall be
deemed to have been issued (whether or not such Common Stock Equivalents are
actually then exercisable, convertible or exchangeable in whole or in part) as
of the earlier of (A) the date on which the Issuer shall enter into a firm
contract for the issuance of such Common Stock Equivalent, or (B) the date of
actual issuance of such Common Stock Equivalent, and (2) the aggregate
consideration for such maximum number of Additional Shares of Common Stock shall
be deemed to be the minimum consideration received or receivable by the Issuer
for the issuance of such Additional Shares of Common Stock pursuant to such
Common Stock Equivalent. No adjustment of the Warrant Price shall be made under
this subsection (e) upon the issuance of any Convertible Security which is
issued pursuant to the exercise of any warrants or other subscription or
purchase rights therefor, if any adjustment shall previously have been made in
the Warrant Price then in effect upon the issuance of such warrants or other
rights pursuant to this subsection (e). If no adjustment is required under this
subsection (e) upon issuance of any Common Stock Equivalent or once an
adjustment is made under this subsection (e) based upon the Per Share Market
Value in effect on the date of such adjustment, no further adjustment shall be
made under this subsection (e) based solely upon a change in the Per Share
Market Value after such date.

        (f) Purchase of Common Stock by the Issuer. If the Issuer at any time
while this Warrant is outstanding shall, directly or indirectly through a
Subsidiary or otherwise, purchase, redeem or otherwise acquire any shares of
Common Stock at a price per share greater than the Per Share Market Value then
in effect, then the Warrant Price upon each such purchase, redemption or
acquisition shall be adjusted to that price determined by multiplying such
Warrant Price by a fraction (i) the numerator of which shall be the number of
shares of Common Stock outstanding immediately prior to such purchase,
redemption or acquisition minus the number of shares of Common Stock which the
aggregate consideration for the total number of such shares of Common Stock so
purchased, redeemed or acquired would purchase at the Per Share Market Value;
and (ii) the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such purchase, redemption or acquisition. For the
purposes of this subsection (f), the date as of which the Per Share Market Value
shall be computed shall be the earlier of (x) the date on which the Issuer shall
enter into a firm contract for the purchase, redemption or acquisition of such
Common Stock, or (y) the date of actual purchase, redemption

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or acquisition of such Common Stock. For the purposes of this subsection (f), a
purchase, redemption or acquisition of a Common Stock Equivalent shall be deemed
to be a purchase of the underlying Common Stock, and the computation herein
required shall be made on the basis of the full exercise, conversion or exchange
of such Common Stock Equivalent on the date as of which such computation is
required hereby to be made, whether or not such Common Stock Equivalent is
actually exercisable, convertible or exchangeable on such date.

        (g) Other Provisions Applicable to Adjustments Under this Section 4. The
following provisions shall be applicable to the making of adjustments in the
Warrant Price hereinbefore provided in Section 4:

               (i) Computation of Consideration. The consideration received by
        the Issuer shall be deemed to be the following: to the extent that any
        Additional Shares of Common Stock or any Common Stock Equivalents shall
        be issued for a cash consideration, the consideration received by the
        Issuer therefor, or if such Additional Shares of Common Stock or Common
        Stock Equivalents are offered by the Issuer for subscription, the
        subscription price, or, if such Additional Shares of Common Stock or
        Common Stock Equivalents are sold to underwriters or dealers for public
        offering without a subscription offering, the public offering price, in
        any such case excluding any amounts paid or receivable for accrued
        interest or accrued dividends and without deduction of any compensation,
        discounts, commissions, or expenses paid or incurred by the Issuer for
        or in connection with the underwriting thereof or otherwise in
        connection with the issue thereof; to the extent that such issuance
        shall be for a consideration other than cash, then, except as herein
        otherwise expressly provided, the fair market value of such
        consideration at the, time of such issuance as determined in good faith
        by the Board. The consideration for any Additional Shares of Common
        Stock issuable pursuant to any Common Stock Equivalents shall be the
        consideration received by the Issuer for issuing such Common Stock
        Equivalents, plus the additional consideration payable to the Issuer
        upon the exercise, conversion or exchange of such Common Stock
        Equivalents. In case of the issuance at any time of any Additional
        Shares of Common Stock or Common Stock Equivalents in payment or
        satisfaction of any dividend upon any class of Capital Stock of the
        Issuer other than Common Stock, the Issuer shall be deemed to have
        received for such Additional Shares of Common Stock or Common Stock
        Equivalents a consideration equal to the amount of such dividend so paid
        or satisfied. In any case in which the consideration to be received or
        paid shall be other than cash, the Board shall notify the Holder of this
        Warrant of its determination of the fair market value of such
        consideration prior to payment or accepting receipt thereof. If, within
        thirty (30) days after receipt of said notice, the Majority Holders
        shall notify the Board in writing of their objection to such
        determination, a determination of the fair market value of such
        consideration shall be made by an Independent Appraiser selected by the
        Majority Holders with the approval of the Board (which approval shall
        not be unreasonably withheld), whose fees and expenses shall be paid by
        the Issuer.

               (ii) Readjustment of Warrant Price. Upon the expiration or
        termination of the right to convert, exchange or exercise any Common
        Stock Equivalent the issuance of which effected an adjustment in the
        Warrant Price, if such Common Stock Equivalent shall not have been
        converted, exercised or exchanged in its entirety, the number of

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        shares of Common Stock deemed to be issued and outstanding by reason of
        the fact that they were issuable upon conversion, exchange or exercise
        of any such Common Stock Equivalent shall no longer be computed as set
        forth above, and the Warrant Price shall forthwith be readjusted and
        thereafter be the price which it would have been (but reflecting any
        other adjustments in the Warrant Price made pursuant to the provisions
        of this Section 4 after the issuance of such Common Stock Equivalent)
        had the adjustment of the Warrant Price been made in accordance with the
        issuance or sale of the number of Additional Shares of Common Stock
        actually issued upon conversion, exchange or issuance of such Common
        Stock Equivalent and thereupon only the number of Additional Shares of
        Common Stock actually so issued shall be deemed to have been issued and
        only the consideration actually received by the Issuer (computed as in
        clause (i) of this subsection (g)) shall be deemed to have been received
        by the Issuer.

               (iii) Outstanding Common Stock. The number of shares of Common
        Stock at any time outstanding shall (A) not include any shares thereof
        then directly or indirectly owned or held by or for the account of the
        Issuer or any of its Subsidiaries, and (B) be deemed to include all
        shares of Class A or Class B common stock outstanding as of such time,
        all shares of Class A or Class B common stock then issuable upon
        conversion, exercise or exchange of any then outstanding Common Stock
        Equivalents or any other evidences of Indebtedness, shares of Capital
        Stock or other Securities which are or may be at any time convertible
        into or exchangeable for shares of Class A or Class B common stock or
        Other Common Stock.

        (h) Other Action Affecting Common Stock. In case after the Original
Issue Date the Issuer shall take any action affecting its Common Stock, other
than an action described in any of the foregoing subsections (a) through (g) of
this Section 4, inclusive, and the failure to make any adjustment would not
fairly protect the purchase rights represented by this Warrant in accordance
with the essential intent and principle of this Section 4, then the Warrant
Price shall be adjusted in such manner and at such time as the Board may in good
faith determine to be equitable in the circumstances.

        (i) Adjustment of Warrant Share Number. Upon each adjustment in the
Warrant Price pursuant to any of the foregoing provisions of this Section 4, the
Warrant Share Number shall be adjusted, to the nearest one hundredth of a whole
share, to the product obtained by multiplying the Warrant Share Number
immediately prior to such adjustment in the Warrant Price by a fraction, the
numerator of which shall be the Warrant Price immediately before giving effect
to such adjustment and the denominator of which shall be the Warrant Price
immediately after giving effect to such adjustment.

        (j) Form of Warrant after Adjustments. The form of this Warrant need not
be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

        5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of

                                      -10-
<PAGE>   11

the adjustment, the method by which such adjustment was calculated (including a
description of the basis on which the Board made any determination hereunder),
and the Warrant Price and Warrant Share Number after giving effect to such
adjustment, and shall cause copies of such certificate to be delivered to the
Holder of this Warrant promptly after each adjustment. Any dispute between the
Issuer and the Holder of this Warrant with respect to the matters set forth in
such certificate may at the option of the Holder of this Warrant be submitted to
one of the national accounting firms currently known as the "big five" selected
by the Holder, provided that the Issuer shall have ten (10) days after receipt
of notice from such Holder of its selection of such firm to object thereto, in
which case such Holder shall select another such firm and the Issuer shall have
no such right of objection. The firm selected by the Holder of this Warrant as
provided in the preceding sentence shall be instructed to deliver a written
opinion as to such matters to the Issuer and such Holder within thirty (30) days
after submission to it of such dispute. Such opinion shall be final and binding
on the parties hereto. The fees and expenses of such accounting firm shall be
paid by the Issuer if the Issuer's calculation of the adjustment was incorrect.

        6. Fractional Shares. No fractional shares of Warrant Stock will be
issued in connection with and exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefor equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

        7. Definitions. For the purposes of this Warrant, the following terms
have the following meanings:

               "Additional Shares of Common Stock" means all shares of Common
        Stock issued by the Issuer after the Original Issue Date, and all shares
        of Other Common, if any, issued by the Issuer after the Original Issue
        Date, except: (i) the Warrant Stock; (ii) any shares of Common Stock
        issued pursuant to the Purchase Agreement; (iii) any shares issued to
        Peter Benz pursuant to a warrant to purchase up to 75,000 shares of
        Common Stock at $2.81 per share; (iv) any shares of Common Stock issued
        to a bank or financing institution in connection with a loan, credit or
        lease facility; (v) any shares of Common Stock or preferred stock issued
        in connection with any of the Company's current option plans, stock
        purchase plans, rights plans, currently outstanding warrants or options,
        acquisition of products, licenses or other assets and strategic
        partnerships or joint ventures (the primary purpose of which is not to
        raise equity); and (vi) any shares of Common Stock or preferred stock
        issued to Gus Constantin in connection with a financing arrangement.

               "Board" shall mean the Board of Directors of the Issuer.

               "Capital Stock" means and includes (i) any and all shares,
        interests, participations or other equivalents of or interests in
        (however designated) corporate stock, including, without limitation,
        shares of preferred or preference stock, (ii) all partnership interests
        (whether general or limited) in any Person which is a partnership, (iii)
        all membership interests or limited liability company interests in any
        limited liability company, and (iv) all equity or ownership interests in
        any Person of any other type.

                                      -11-
<PAGE>   12

               "Certificate of Incorporation" means the Certificate of
        Incorporation, as amended, of the Issuer as in effect on the Original
        Issue Date, and as hereafter from time to time amended, modified,
        supplemented or restated in accordance with the terms hereof and thereof
        and pursuant to applicable law.

               "Common Stock" means the Common Stock, $.001 par value, of the
        Issuer and any other Capital Stock into which such stock may hereafter
        be changed.

               "Common Stock Equivalent" means any Convertible Security or
        warrant, option or other right to subscribe for or purchase any
        Additional Shares of Common Stock or any Convertible Security.

               "Convertible Securities" means evidences of Indebtedness, shares
        of Capital Stock or other Securities which are or may be at any time
        convertible into or exchangeable for Additional Shares of Common Stock.
        The term "Convertible Security" means one of the Convertible Securities.

               "Governmental Authority" means any governmental, regulatory or
        self-regulatory entity, department, body, official, authority,
        commission, board, agency or instrumentality, whether federal, state or
        local, and whether domestic or foreign.

               "Holders" mean the Persons who shall from time to time own any
        Warrant. The term "Holder" means one of the Holders.

               "Independent Appraiser" means a nationally recognized or major
        regional investment banking firm or firm of independent certified public
        accountants of recognized standing (which may be the firm that regularly
        examines the financial statements of the Issuer) that is regularly
        engaged in the business of appraising the Capital Stock or assets of
        corporations or other entities as going concerns, and which is not
        affiliated with either the Issuer or the Holder of any Warrant.

               "Issuer" means ReSourcePhoenix.com, a Delaware corporation, and
        its successors.

               "Majority Holders" means at any time the Holders of Warrants
        exercisable for a majority of the shares of Warrant Stock issuable under
        the Warrants at the time outstanding.

               "Original Issue Date" means June 6, 2000.

               "Other Common" means any other Capital Stock of the Issuer of any
        class which shall be authorized at any time after the date of this
        Warrant (other than Common Stock) and which shall have the right to
        participate in the distribution of earnings and assets of the Issuer
        without limitation as to amount.

               "Person" means an individual, corporation, limited liability
        company, partnership, joint stock company, trust, unincorporated
        organization, joint venture, Governmental Authority or other entity of
        whatever nature.

                                      -12-
<PAGE>   13

               "Per Share Market Value" means on any particular date (a) the
        closing bid price per share of the Common Stock on such date the Nasdaq
        SmallCap Market, Nasdaq National Market or other registered national
        stock exchange on which the Common Stock is then listed or if there is
        no such price on such date, then the closing bid price on such exchange
        or quotation system on the date nearest preceding such date, or (b) if
        the Common Stock is not listed then on the Nasdaq SmallCap Market,
        Nasdaq National Market or any registered national stock exchange, the
        closing bid price for a share of Common Stock in the over-the-counter
        market, as reported by NASDAQ or in the National Quotation Bureau
        Incorporated or similar organization or agency succeeding to its
        functions of reporting prices) at the close of business on such date, or
        (c) if the Common Stock is not then reported by NASDAQ the National
        Quotation Bureau Incorporated (or similar organization or agency
        succeeding to its functions of reporting prices), then the average of
        the "Pink Sheet" quotes for the relevant conversion period, as
        determined in good faith by the holder, or (d) if the Common Stock is
        not then publicly traded the fair market value of a share of Common
        Stock as determined by an Independent Appraiser selected in good faith
        by the Majority Holders; provided, however, that the Issuer, after
        receipt of the determination by such Independent Appraiser, shall have
        the right to select an additional Independent Appraiser, in which case,
        the fair market value shall be equal to the average of the
        determinations by each such Independent Appraiser; and provided, further
        that all determinations of the Per Share Market Value shall be
        appropriately adjusted for any stock dividends, stock splits or other
        similar transactions during such period. The determination of fair
        market value by an Independent Appraiser shall be based upon the fair
        market value of the Issuer determined on a going concern basis as
        between a willing buyer and a willing seller and taking into account all
        relevant factors determinative of value, and shall be final and binding
        on all parties. In determining the fair market value of any shares of
        Common Stock, no consideration shall be given to any restrictions on
        transfer of the Common Stock imposed by agreement or by federal or state
        securities laws, or to the existence or absence of, or any limitations
        on, voting rights.

               "Purchase Agreement" means the Common Stock Purchase Agreement
        dated as of June 6, 2000 among the Issuer and the investor(s) a party
        thereto.

               "Securities" means any debt or equity securities of the Issuer,
        whether now or hereafter authorized, any instrument convertible into or
        exchangeable for securities or a security, and any option, warrant or
        other right to purchase or acquire any security. "Security" means one of
        the Securities.

               "Securities Act" means the Securities Act of 1933, as amended, or
        any similar federal statute then in effect.

               "Subsidiary" means any corporation at least 50% of whose
        outstanding Voting Stock shall at the time be owned directly or
        indirectly by the Issuer or by one or more of its Subsidiaries, or by
        the Issuer and one or more of its Subsidiaries.

               "Term" has the meaning specified in Section 1 hereof.

                                      -13-
<PAGE>   14

               "Trading Day" means (a) a day on which the Common Stock is traded
        on the Nasdaq SmallCap Market, Nasdaq National Market or other
        registered national stock exchange on which the Common Stock has been
        listed, or (b) if the Common Stock is not listed on the Nasdaq SmallCap
        Market, Nasdaq National Market or other registered national stock
        exchange on which the Common Stock has been listed, a day on which the
        Common Stock is quoted in the over-the-counter market, as reported by
        the OTC Bulletin Board, or (c) if the Common Stock is not quoted on the
        OTC Bulletin Board, a day on which the Common Stock is quoted in the
        over-the-counter market as reported by the National Quotation Bureau
        Incorporated (or any similar organization or agency succeeding its
        functions of reporting prices); provided, however, that in the event
        that the Common Stock is not listed or quoted as set forth in (a), (b)
        and (c) hereof, then Trading Day shall mean any day except Saturday,
        Sunday and any day which shall be a legal holiday or a day on which
        banking institutions in the State of New York are authorized or required
        by law or other government action to close.

               "Voting Stock", as applied to the Capital Stock of any
        corporation, means Capital Stock of any class or classes (however
        designated) having ordinary voting power for the election of a majority
        of the members of the Board of Directors (or other governing body) of
        such corporation, other than Capital Stock having such power only by
        reason of the happening of a contingency.

               "Warrants" means the Warrants issued and sold pursuant to the
        Purchase Agreement, including, without limitation, this Warrant, and any
        other warrants of like tenor issued in substitution or exchange for any
        thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof
        or of any of such other Warrants.

               "Warrant Price" means $7.00, as such price may be adjusted from
        time to time as shall result from the adjustments specified in Section 4
        herein.

               "Warrant Share Number" means at any time the aggregate number of
        shares of Warrant Stock which may at such time be purchased upon
        exercise of this Warrant, after giving effect to all prior adjustments
        and increases to such number made or required to be made under the terms
        hereof.

               "Warrant Stock" means Common Stock issuable upon exercise of any
        Warrant or Warrants or otherwise issuable pursuant to any Warrant or
        Warrants.

        8.     Other Notices.  In case at any time:

                      (A)    the Issuer shall make any distributions to the
                             holders of Common Stock; or

                      (B)    the Issuer shall authorize the granting to all
                             holders of its Common Stock of rights to subscribe
                             for or purchase any shares of Capital Stock of any
                             class or of any Common Stock Equivalents or
                             Convertible Securities or other rights; or

                                      -14-
<PAGE>   15

                      (C)    there shall be any reclassification of the Capital
                             Stock of the Issuer; or

                      (D)    there shall be any capital reorganization by the
                             Issuer; or

                      (E)    there shall be any (i) consolidation or merger
                             involving the Issuer or (ii) sale, transfer or
                             other disposition of all or substantially all of
                             the Issuer's property, assets or business (except a
                             merger or other reorganization in which the Issuer
                             shall be the surviving corporation and its shares
                             of Capital Stock shall continue to be outstanding
                             and unchanged and except a consolidation, merger,
                             sale, transfer or other disposition involving a
                             wholly-owned Subsidiary); or

                      (F)    there shall be a voluntary or involuntary
                             dissolution, liquidation or winding-up of the
                             Issuer or any partial liquidation of the Issuer or
                             distribution to holders of Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than twenty (20) days
prior to the record date or the date on which the Issuer's transfer books are
closed in respect thereto. The Issuer shall give to the Holder notice of all
meetings and actions by written consent of its stockholders, at the same time in
the same manner as notice of any meetings of stockholders is required to be
given to stockholders who do not waive such notice (or, if such actions require
no notice, then two (2) Trading Days written notice thereof describing the
matters upon which action is to be taken). The Holder shall have the right to
send two representatives selected by it to each meeting of stockholders, who
shall be permitted to attend, but not vote at, such meeting of stockholders and
any adjournments thereof. This Warrant entitles the Holder to receive, upon
request, copies of all financial and other information distributed or required
to be distributed to the holders of the Common Stock.

        9. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 9 without the consent of the Holder of this Warrant.

                                      -15-
<PAGE>   16

        10. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW. THIS WARRANT SHALL NOT BE INTERPRETED OR
CONSTRUED WITH ANY PRESUMPTION AGAINST THE PARTY CAUSING THIS WARRANT TO BE
DRAFTED.

        11. Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern standard time,
on a Trading Day, (ii) the Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile telephone
number specified for notice later than 5:00 p.m., eastern standard time, on any
date and earlier than 11:59 p.m., eastern standard time, on such date, (iii) the
Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service or (iv) actual receipt by the party to whom such
notice is required to be given. The addresses for such communications shall be
with respect to the Holder of this Warrant or of Warrant Stock issued pursuant
hereto, addressed to such Holder at its last known address or facsimile number
appearing on the books of the Issuer maintained for such purposes, or with
respect to the Issuer, addressed to:

               ReSourcePhoenix.com
               2401 Kerner Boulevard
               San Rafael, CA  94901
               Telephone Number: (415) 485-4600
               Facsimile Number:  (510) 263-2495
               Attention: Corey West

        or to such other address or addresses or facsimile number or numbers as
any such party may most recently have designated in writing to the other parties
hereto by such notice. Copies of notices to the Issuer shall be sent to: Wilson
Sonsini Goodrich & Rosati, 650 Page Mill Rd., Palo Alto, CA 94304, Attention:
Steven V. Bernard, Esq., facsimile no.: (650) 493-6811. Copies of notices to the
Holder shall be sent to: Parker Chapin LLP, 405 Lexington Avenue, New York, New
York 10174, Attention: Christopher S. Auguste, Esq., facsimile no.: (212)
704-6288.

        12. Warrant Agent. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

        13. Remedies. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the

                                      -16-
<PAGE>   17

fullest extent permitted by law, such terms may be specifically enforced by a
decree for the specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms hereof or otherwise.

        14. Successors and Assigns. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
party.

        15. Modification and Severability. If, in any action before any court or
agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

        16. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -17-
<PAGE>   18

        IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day
and year first above written.

                                            RESOURCEPHOENIX.COM

                                            By: /s/ W. Corey West
                                               ---------------------------------
                                               Name: W. Corey West
                                               Title: President and Chief
                                                      Operating Officer

                                      -18-
<PAGE>   19

                                  EXERCISE FORM

        [NAME OF ISSUER]

        The undersigned _______________, pursuant to the provisions of the
within Warrant, hereby elects to purchase _____ shares of Common Stock of
___________________ covered by the within Warrant.

        Dated:                              Signature
               -----------------                     ---------------------------

                                            Address
                                                   -----------------------------

                                                   -----------------------------

                                   ASSIGNMENT

        FOR VALUE RECEIVED, _________________ hereby sells, assigns and
transfers unto __________________ the within Warrant and all rights evidenced
thereby and does irrevocably constitute and appoint _____________, attorney, to
transfer the said Warrant on the books of the within named corporation.

        Dated:                              Signature
               -----------------                     ---------------------------

                                            Address
                                                   -----------------------------

                                                   -----------------------------

                               PARTIAL ASSIGNMENT

        FOR VALUE RECEIVED, _________________ hereby sells, assigns and
transfers unto __________________ the right to purchase _________ shares of
Warrant Stock evidenced by the within Warrant together with all rights therein,
and does irrevocably constitute and appoint ___________________, attorney, to
transfer that part of the said Warrant on the books of the within named
corporation.

        Dated:                              Signature
               -----------------                     ---------------------------

                                            Address
                                                   -----------------------------

                                                   -----------------------------

                           FOR USE BY THE ISSUER ONLY:

        This Warrant No. W-__ canceled (or transferred or exchanged) this _____
day of ___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-__ issued for ____ shares of Common Stock in the
name of _______________.

                                      -19-<PAGE>   1
                                                                   EXHIBIT 10.17

                               FACTORING AGREEMENT

        This Factoring Agreement (the "Agreement"), dated as of June 7, 2000, is
entered into by and between Resourcephoenix, Inc., a California corporation
("Seller") having its principal place of business and chief executive office at
the address set forth below Seller's signature, and Pacific Business Funding, a
division of Cupertino National Bank ("Purchaser") having an office at the
address identified above.

Capitalized terms used in this Agreement shall have the meanings assigned to
them in Section 13, Definitions.

1.      PURCHASE OF ACCOUNTS.

        1.1 SCHEDULE OF ACCOUNTS. Seller may, at any time, request that
Purchaser purchase Accounts. Any such request by Seller shall be made by
delivering to Purchaser a Schedule of Accounts (the "Schedule of Accounts")
which describes in detail the Accounts Seller is requesting Purchaser to
purchase, including, (a) the name and address of the Account Debtor of each such
Account, (b) the amount owed by the Account Debtor of each such Account, and (c)
the date and number of the invoice evidencing each such Account. Each Schedule
of Accounts shall have attached to it an invoice for each Account described on
the Schedule of Accounts, and shall be signed by an authorized representative of
Seller.

        1.2 DISCRETIONARY APPROVAL OF ACCOUNTS. Purchaser may, in its sole
discretion, purchase any Account included in a Schedule of Accounts, but is
under no obligation to purchase any such Account. Purchaser may exercise its
sole discretion in approving each Account and the credit of each Account Debtor
before purchasing any Account.

        1.3 PAYMENT OF ADVANCE; CREATION OF A BOOK RESERVE. Upon approval, in
Purchaser's sole discretion, of any of the Accounts described on a Schedule of
Accounts, Purchaser shall pay to Seller as the purchase price for any approved
Account eighty percent (80%) of the face amount of such approved Account (the
"Advance"). Purchaser may, from time to time, in its discretion, upon notice to
Seller, change the percentage of the Advance. Upon payment of the Advance to
Seller, Purchaser shall also create a reserve on Purchaser's books and records
with respect to each Purchased Account in an amount equal to the face amount of
the Purchased Account minus the Advance for such Purchased Account (the
"Reserve"). Notwithstanding the foregoing, in no event shall the Reserve with
respect to all Purchased Accounts outstanding at any time be less than twenty
percent (20%) of the Account Balance. Purchaser may, in its discretion, upon
notice to Seller, increase the percentage of the Reserve at any time.

        1.4 TRANSFER OF ACCOUNTS. At the time Purchaser pays the Advance with
respect to any Account, such Account shall constitute a Purchased Account, and
Seller hereby absolutely sells, transfers and assigns to Purchaser, all of
Seller's right, title and interest in and to each Purchased Account. Seller also
hereby sells, transfers and assigns to Purchaser all of the goods represented by
each Purchased Account, all of Seller's rights and remedies as an unpaid seller
under the California Uniform Commercial Code and other applicable law, including
the rights of stoppage in transit, replevin, reclamation, and claim and
delivery, and all of Seller's rights in and to all security for each such
Purchased Account and guaranties thereof, and all rights against third parties
with respect thereto. Any goods recovered or received by Seller shall be set
aside, marked with Purchaser's name, and held for Purchaser's account as owner.

        1.5 COLLECTION OF ACCOUNTS. Each Purchased Account shall be collected
directly by Seller and remitted to in kind to Purchaser. However, should Seller
be in default of this agreement, Purchaser and or the Seller will jointly or
independently notify each Account Debtor by letter that Purchased Accounts owed
by such Account Debtor have been assigned and are payable to Purchaser. Such
notification shall be in form and substance satisfactory to Purchaser. Seller
shall not take or permit any action to change or revoke any notification without
Purchaser's prior written consent and shall not request any Account Debtor to
pay any Purchased Account to Seller. Notwithstanding the foregoing, in the event
Seller receives any payments of any Purchased Accounts, Seller shall (A)
immediately notify Purchaser of such payment, (B) hold such payment in trust and
safekeeping for Purchaser, and (C) immediately turn over to Purchaser the
identical checks, monies or other forms of payment received, with any necessary
endorsement or assignment. Purchaser shall have the right to endorse Seller's
name on all payments received in connection with each Purchased Account and on
any other proceeds of Collateral. If Purchaser receives

                                       1
<PAGE>   2

a check or item which is payment for both a Purchased Account and a
non-Purchased Account, the funds shall first be applied to the Purchased Account
and, so long as there does not then exist an Event of Default or an event that
with notice or lapse of time would constitute an Event of Default, the excess
shall be remitted to Seller. In the event Purchaser receives any other payments
of non-Purchased Accounts, Purchaser shall remit to Seller the collections of
such non-Purchased Accounts; PROVIDED, that if any Event of Default or event
that with notice or lapse of time or otherwise would constitute an Event of
Default then exists, Purchaser shall have no duty to remit any such collections,
which collections constitute Collateral, and may apply such collections to
reduce the Obligations.

        1.6 FULL RECOURSE. The purchase by Purchaser of Purchased Accounts from
Seller shall be with full recourse against Seller. Seller shall be liable for
any deficiency in the event the Obligations exceed the amount of Purchased
Accounts and the other Collateral.

2.      FEES AND CUSTOMER PAYMENTS.

        2.1 FINANCE FEES. Seller shall pay to Purchaser on each Settlement Date,
a finance fee in an amount equal to one and one quarter percent (1.25%) per
month of the average daily Account Balance outstanding during the Settlement
Period ending on such Settlement Date (the "Finance Fees"). Such accrued Finance
Fees shall be netted against the Reserve as described in Section 3.3.

        2.2 ADMINISTRATIVE FEE. Seller shall pay to Purchaser on each Settlement
Date, an Administrative Fee equal to one half percent (0.5%) of the face amount
of each Account purchased by Purchaser during the Settlement Period ending on
such Settlement Date (the "Administrative Fee"). All Administrative Fees shall
be netted against the Reserve as described in Section 3.3.

        2.3 MAXIMUM LAWFUL RATE. In no event shall any charges that may
constitute interest hereunder exceed the highest rate permitted under applicable
law. In the event that a court of competent jurisdiction makes a final
determination that Purchaser has received interest hereunder in excess of the
maximum lawful rate, then such excess shall be deemed a payment of principal and
the interest payable hereunder deemed amended to the amount payable under the
maximum lawful rate.

        2.4 CREDITING CUSTOMER PAYMENTS. Upon Purchaser's receipt of payment of
a Purchased Account, Purchaser shall promptly credit such customer payment (the
"Customer Payments") to the amount outstanding with respect to such Purchased
Account. Notwithstanding the foregoing, if any Customer Payment is subsequently
dishonored or Purchaser does not receive good funds for any reason, the amount
of such uncollected Customer Payment shall be included in the Account Balance as
if such Customer Payment had not been received, and Finance Fees shall accrue
thereon, and the credit to the specific Purchased Account shall be reversed.
Notwithstanding the foregoing, upon the occurrence of an Event of Default,
Purchaser shall apply all Customer Payments to Seller's Obligations under this
Agreement in such order and manner as Purchaser shall, in its sole discretion,
determine.

        2.5 ACCOUNTING. Purchaser shall deliver to Seller after each Settlement
Date, a statement of Seller's account which shall include an accounting of the
transactions for that Settlement Period, including the amount of all Finance
Fees, Administrative Fees, Adjustments, Chargeback Amounts, Customer Payments
and Purchased Accounts. The accounting shall constitute an account stated and
shall be binding an Seller and deemed correct unless Seller delivers to
Purchaser a written objection within thirty (30) days after such accounting is
mailed to Seller.

3.      ADJUSTMENT, CHARGEBACKS AND REMITTANCES.

        3.1 ADJUSTMENTS. In the event any Account Debtor asserts any offset,
defense, counterclaim, dispute, discount, allowance, right of return, right of
recoupment, or warranty claim with respect to a Purchased Account, or pays less
than the face amount of such Purchased Account (each, an "Adjustment"),
Purchaser may, in its reasonable discretion, either (A) deduct the amount of the
Adjustment in calculating the Remittance, or (B) chargeback to Seller the
Purchased Account with respect to which the Adjustment is asserted. Seller shall
advise Purchaser promptly upon learning of any Adjustment asserted by any
Account Debtor.

                                       2
<PAGE>   3

        3.2 CHARGEBACKS. Purchaser shall have the right to chargeback to Seller
any Purchased Account:

               (A) which remains unpaid ninety (90) calendar days after the
               invoice date;

               (B) with respect to which there has been a breach of any
               warranty, representation, covenant or agreement set forth in this
               Agreement;

               (C) with respect to which the Account Debtor asserts any
               Adjustment, or

               (D) which is owed by an Account Debtor who has filed, or has had
               filed against it, any bankruptcy case, insolvency proceeding,
               assignment for the benefit of creditors, receivership or
               insolvency proceeding, or who has become insolvent (as defined in
               the United States Bankruptcy Code) or who is generally not paying
               its debts as such debts become due.

Upon demand by Purchaser, Seller shall pay to Purchaser the amount of any
Advance which has been charged back to Seller pursuant to this Section 3.2, or
to the extent partial payment has been made, the amount by which the face amount
of such Purchased Account exceeds such partial payment, together with any
reasonable attorneys' fees and costs incurred by Purchaser in connection with
collecting such Purchased Account (collectively, the "Chargeback Amount"),
Purchaser shall advise Seller regarding how the Chargeback Amount shall be paid,
which may be by any one or a combination of the following, in Purchaser's
reasonable discretion: (1) payment in cash immediately upon demand; (2)
deduction from or offset against any Remittance that would otherwise be payable
to Seller; (3) payment from any Advances that may otherwise be made to Seller;
(4) adjustment to the Reserve pursuant to Section 1.3 hereof; or (5) delivery of
substitute Accounts and a Schedule of Accounts acceptable to Purchaser, which
Accounts shall constitute Purchased Accounts.

        3.3 REMITTANCE. Purchaser shall remit to Seller after the Settlement
Date, the amount, if any, which Purchaser owes to Seller at the end of the
Settlement Period based on the following calculations set forth below (the
"Remittance"); provided, that if there then exists any Event of Default or any
event or condition that with notice or lapse of time would constitute an Event
of Default, Purchaser shall not be obligated to remit any payments to Seller. If
the amount resulting from the following calculation is a positive number, such
amount is the amount of the Remittance for such Settlement Period. If the
resulting amount is a negative number, such amount is the amount owed by Seller
to Purchaser.

        The calculations to be used are as follows:

               (A) The sum of the following:

                      (1)    The Reserve as of the beginning of the subject
                             Settlement Period, plus

                      (2)    The Reserve created for each Account purchased
                             during the subject Settlement Period;

MINUS

               (B) The sum of the following:

                      (1)    Finance Fees accrued during the subject Settlement
                             Period; plus

                      (2)    Administrative Fees accrued during the subject
                             Settlement Period; plus

                      (3)    Adjustments during the subject Settlement Period;
                             plus

                      (4)    Chargeback Amounts, to the extent Purchaser has
                             agreed to accept payment of any such Chargeback
                             Amount by deduction from the Remittance: plus

                                       3
<PAGE>   4

                      (5)    All professional fees and expenses as set forth in
                             Section 10 for which oral or written demand has
                             been made by Purchaser during the subject
                             Settlement Period; plus

                      (6)    The Reserve for the Account Balance as of the first
                             day of the following Settlement Period in the
                             minimum percentage set forth in Section 1.3 hereof.

If the foregoing calculations result in a Remittance payable to Seller,
Purchaser shall make such payment by check, subject to Purchaser's rights of
offset and recoupment, and its right to deduct any Chargeback Amount as set
forth in Section 3.2. If the foregoing calculations result in an amount due to
Purchaser from Seller, Seller shall make such payment by any one or a
combination of the methods set forth in Section 3.2 hereof for chargebacks, as
determined by Purchaser in its discretion.

4. POWER OF ATTORNEY. Seller hereby appoints Purchaser and its designees as
Seller's true and lawful attorney in fact, to exercise in Purchaser's reasonable
discretion, after the occurrence and during the continuance of an Event of
Default is then existing, all of the following powers, such powers being
coupled, with an interest: (A) to notify all Account Debtors with respect to the
Purchased Accounts to make payment directly to Purchaser; (B) to receive,
deposit, and endorse Seller's name on all checks, drafts, money orders and other
forms of payment relating to the Purchased Accounts; (C) to demand, collect,
receive, sue, and give releases to any Account Debtor for the monies due or
which may become due on or in connection with the Purchased Accounts; (D) to
compromise, prosecute, or defend any action, claim, case, or proceeding relating
to the Purchased Accounts, including the filing of a claim or the voting of such
claims in any bankruptcy case, all in Purchaser's name or Seller's name, as
Purchaser may elect; (E) to sell, assign, transfer, pledge, compromise, or
discharge any Purchased Accounts; (F) to receive, open, redirect and dispose of
all mail addressed to Seller for the purpose of collecting the Purchased
Accounts and to take all the actions permitted in subsection (B) above with
respect to any payment in any such mail; (G) to execute in the name of Seller
and file against Seller in favor of Purchaser such financing statements and
other agreements as Purchaser deems necessary to evidence or perfect its
security interest in the Purchased Accounts and the other Collateral, and (H) to
do all acts and things necessary or expedient, in furtherance of any such
purposes. Upon the occurrence of an Event of Default, all of the power of
attorney rights granted by Seller to Purchaser hereunder shall be applicable
with respect to all Collateral.

5. CONTINUING REPRESENTATIONS, WARRANTIES AND COVENANTS. To induce Purchaser to
enter into this Agreement and purchase Accounts, and with full knowledge that
Purchaser is relying on the truth and accuracy of the following in determining
whether to purchase any Account, Seller represents, warrants, covenants and
agrees as follows, which representations, warranties, covenants and agreements
shall survive the execution and delivery of this Agreement:

               (A) The information contained in each Schedule of Accounts is
               true and correct;

               (B) Each Schedule of Accounts is signed by an authorized
               representative of Seller, and Purchaser shall have the right to
               rely an such signature as an authorized signature of Seller;

               (C) Seller is the sole and absolute owner of each Account
               described in each Schedule of Accounts and has the legal right to
               sell, transfer and assign such Account to Purchaser;

               (D) Seller has performed all obligations required by the Account
               Debtor in connection with each Account described in each Schedule
               of Accounts and payment of each such Account is not contingent
               upon the fulfillment of any obligation or contract, past or
               future;

               (E) Each Account described on each Schedule of Accounts is
               correctly stated therein, is not in dispute, is presently and
               unconditionally owing at the time stated in the invoice
               evidencing such Account as attached to the Schedule of Accounts,
               is not past due or in default, represents a bona fide
               indebtedness arising from the actual sale of goods or performance
               of services to an Account Debtor in the ordinary course of
               Seller's business which has been received and finally accepted by
               the Account Debtor;

                                       4
<PAGE>   5

               (F) Each Account set forth on each Schedule of Accounts is not
               subject to any offset, defense or counterclaim of any kind,
               whether bona fide or otherwise, and no agreement has been made
               under which the Account Debtor may claim any deduction or
               discount, except as otherwise stated in the Schedule of Accounts;

               (G) Each Account Debtor identified on each Schedule of Accounts
               is liable for the amount set forth on such Schedule of Accounts
               and will not object to payment for, or the quality or the
               quantity of the goods or services to which any Account described
               on such Schedule of Accounts relates;

               (H) Seller, and to Seller's best knowledge, each Account Debtor
               set forth in each Schedule of Accounts, is and shall remain
               solvent in that the present saleable value of such entity's
               assets exceeds the total of such entity's liabilities;

               (I) Seller has not, as of the time Seller accepts an Advance from
               Purchaser, filed or had filed against it a petition for relief
               under the United States Bankruptcy Code;

               (J) Each Account and all other Collateral are free and clear of
               any and all liens, security interests and encumbrances of any
               kind, other than those in favor of Purchase, and Seller will not
               assign, transfer, or grant any lien or security interest in any
               Accounts or other Collateral to any other party, without
               Purchaser's prior written consent;

               (K) Seller has not sold, assigned, transferred, pledged or
               otherwise conveyed any Purchased Accounts to any party other than
               Purchaser, and Seller shall not sell, assign, transfer, pledge or
               otherwise convey any Collateral without Purchaser's prior
               consent, except for the sale of Accounts to Purchaser and the
               sale of finished inventory in Seller's normal course of business;

               (L) Seller's name and form of organization are as set forth at
               the beginning of this Agreement, and Seller's chief executive
               office, place of business and place where Collateral and records
               concerning Accounts and other Collateral are kept are as set
               forth below Seller's signature, and Seller will give Purchaser at
               least thirty (30) days prior written notice if such name,
               organization, place of business, location of Collateral or
               records concerning Collateral is to be changed or added and shall
               execute any documents necessary to perfect Purchaser's interest
               in the Purchased Accounts and the other Collateral; and

               (M) Seller shall pay all of its normal gross payroll for
               employees, and all federal and state taxes, as and when due,
               including all payroll and withholding taxes and state sales
               taxes.

6. GRANT OF SECURITY INTEREST. To secure the prompt payment and performance of
all of Seller's Obligations to Purchaser, Seller hereby grants to Purchaser a
continuing lien upon and security interest in, and right of set off with respect
to, all of Seller's right, title and interest in, to and under the following,
whether now owned by or owing to, or hereafter acquired by or arising in favor
of, Seller, and regardless of where located (collectively the "Collateral"):

               (A) All accounts, accounts receivable, and general intangibles
               representing rights to payment, and all proceeds thereof, whether
               in the form of chattel paper, contract rights, documents,
               instruments, letters of credit, banker's acceptances, drafts,
               securities or deposit accounts;

               (B) All inventory;

               (C) All monies, remittances, and other amounts due under this
               Agreement and any other agreement between Purchaser and Seller;

               (D) All books and records relating to the foregoing, including
               all computer programs, printed output and computer readable data;

                                       5
<PAGE>   6

               (E) All accessions to, and substitutions and replacements for,
               all of the foregoing; and

               (F) All proceeds and products of the foregoing, whether due to
               voluntary or involuntary disposition, including insurance
               proceeds. Seller shall sign and deliver to Purchaser UCC
               financing statements, in form acceptable to Purchaser. Seller
               agrees to deliver to Purchaser the originals of all instruments,
               chattel paper and documents evidencing or related to Purchased
               Accounts and other Collateral.

7. DEFAULT. The occurrence of any one or more of the following shall constitute
an event of default under this Agreement (each, an "Event of Default"):

               (A) Seller fails to pay any amount owed to Purchaser as and when
               due under this Agreement or fails to pay any other Obligations as
               and when due;

               (B) Any warranty or representation by Seller to Purchaser under
               this Agreement is incorrect or untrue when made or thereafter
               becomes untrue or incorrect;

               (C) Seller fails to perform or breaches any covenant or agreement
               set forth in this Agreement or any other agreement between
               Purchaser and Seller;

               (D) There shall be commenced by or against Seller any voluntary
               or involuntary case under the United States Bankruptcy Code, or
               any assignment for the benefit of creditors, or appointment of a
               receiver or custodian for any of Seller's assets;

               (E) Seller shall become insolvent in that its debts are greater
               than the fair value of its assets;

               (F) Any involuntary lien, garnishment, attachment or the like is
               issued against or attaches to the Purchased Amounts or the other
               Collateral;

               (G) An event of default shall occur under any guaranty executed
               by any guarantor of the Obligations, or any material provision of
               any such guaranty shall for any reason cease to be valid or
               enforceable or any such guaranty shall be repudiated or
               terminated, including by operation of law; or

               (H) A default or event of default shall occur under any agreement
               between Seller and any creditor of Seller who has entered into a
               subordination agreement with Purchaser.

8. REMEDIES UPON DEFAULT. Upon the occurrence of an Event of Default, Purchaser
may, without notice, (A) without implying any obligation to buy Accounts, cease
buying Accounts; (B) accelerate the payment of all Obligations by requiring
Seller to repurchase all or any portion of the Purchased Accounts then
outstanding for cash in an amount equal to the Advance made for each Purchased
Account, and all accrued Finance Fees, Administrative Fees, reasonable
attorney's fees and other Obligations then outstanding, which Obligations shall
be due and payable in full without demand; (C) exercise all the rights and
remedies under this Agreement and under applicable law, including the rights and
remedies of a secured party under the California Uniform Commercial Code.
Without limiting the generality of the foregoing, Purchaser may (1) exercise all
of the power of attorney rights described in Section 4 with respect to all
Collateral, and (2) collect, dispose of, sell, lease, use, and realize upon all
Purchased Accounts and other Collateral in any commercially reasonable manner.
Seller and Purchaser agree that any notice of sale required to be given to
Seller shall be deemed to be reasonable if given five (5) days prior to the date
on or after which any sale may be held. All remedies set forth herein shall be
cumulative and none exclusive.

9. ACCRUAL OF INTEREST. If any amount owed by Seller hereunder is not paid when
due, including any amounts due under Section 3.3, Chargeback Amounts,
professional fees and expenses under 10 and any other Obligations, such amounts
shall bear interest at a per annum rate equal to the rate of used to calculate
the Finance Fees, annualized, until payment in good funds in the full amount of
all such obligations.

                                       6
<PAGE>   7

10. ATTORNEYS' FEES. Seller shall pay to Purchaser immediately upon demand, all
costs and expenses, including reasonable fees and expenses of attorneys and
other professionals, that Purchaser incurs in connection with any and all of the
following: (A) preparing, amending, supplementing, negotiating and enforcing
this Agreement, or any other agreement executed in connection herewith; (B)
perfecting, protecting or enforcing Purchaser's interest in the Purchased
Accounts and the other Collateral; (C) collecting the Purchased Accounts and the
Obligations; (D) defending or in any way addressing claims made or litigation
initiated by or against Purchaser as a result of Purchaser's relationship with
Seller or any guarantor; and (E) representing Purchaser in connection with any
bankruptcy case or insolvency proceeding involving Seller, any Purchased
Account, any other Collateral or any Account Debtor. Any attorneys' fees and
expenses may, at Purchaser's option, be netted against the reserve as set forth
in Section 3.3.

11. TERM AND TERMINATION. The term of this Agreement shall be for one (1) year
from the date hereof, and from year to year thereafter unless terminated in
writing by Purchaser or Seller. Seller and Purchaser shall each have the right
to terminate this Agreement at any time. Notwithstanding the foregoing, any
termination of this Agreement shall not affect Purchaser's security interest in
the Collateral and Purchaser's ownership of the Purchased Accounts, and this
Agreement shall continue to be effective, and Purchaser's rights and remedies
hereunder shall survive such termination, until all transactions entered into
and Obligations incurred hereunder or in connection herewith have been completed
and satisfied in full. Seller has the right at any time to repurchase the
Purchased Accounts from Purchaser on terms acceptable to Seller and Purchaser.

12.     MISCELLANEOUS.

        12.1 SEVERABILITY. In the event that any provision of this Agreement is
held to be invalid or unenforceable, this Agreement will be construed as not
containing such provision and the remainder of the Agreement shall remain in
full force and effect.

        12.2 CHOICE OF LAW. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of California, without giving effect to
principles of conflicts of law.

        12.3 NOTICES. All notices shall be given to Purchaser and Seller at the
addresses set forth in this Agreement and shall be deemed to have been delivered
and received: (A) if mailed, three (3) calendar days after deposited in the
United States mail, first class, postage prepaid; (B) one (1) calendar day after
deposit with an overnight mail or messenger service; or (C) on the same date of
transmission if sent by hand delivery, telecopy, telefax or telex.

        12.4 TITLES AND SECTION HEADINGS. The titles and section headings used
herein are for convenience only and shall not be used in interpreting this
Agreement.

13. DEFINITIONS. All terms used herein which are defined in the California
Uniform Commercial Code shall have the meaning given therein unless otherwise
defined in this Agreement. The term "including" is not limiting or exclusive.
When used herein, the following terms shall have the following meanings.

        13.1 "ACCOUNT" shall mean all accounts, accounts receivable, chattel
paper, contract rights, documents, general intangibles, instruments, letters of
credit, banker's acceptances, and other rights to payment, and proceeds thereof.

        13.2 "ACCOUNT BALANCE" shall mean, on any given day, the gross face
amount of all Purchased Accounts unpaid on that day.

        13.3 "ACCOUNT DEBTOR" shall have the meaning set forth in the California
Uniform Commercial Code and shall include any person liable on any Purchased
Account, including any guarantor of the Purchased Account and any issuer of a
letter of credit or banker's acceptance.

        13.4 "ADJUSTMENT(s)" shall have the meaning set in Section 3.1.

        13.5 "ADMINISTRATIVE FEE" shall have the meaning as set forth in Section
2.2.

                                       7
<PAGE>   8

        13.6 "ADVANCE" shall have the meaning set forth in Section 1.3.

        13.7 "CHARGEBACK AMOUNT" shall have the meaning set forth in Section
3.2.

        13.8 "COLLATERAL" shall have the meaning set forth in Section 6.

        13.9 "CUSTOMER PAYMENTS" shall have the meaning set forth in Section
2.4.

        13.10 "EVENT OF DEFAULT" shall have the meaning set forth in Section 7.

        13.11 "FINANCE FEES" shall have the meaning set forth in Section 2.1.

        13.12 "SCHEDULE OF ACCOUNTS" shall have the meaning set forth in Section
1.1.

        13.13 "OBLIGATIONS" shall mean all advances, obligations, indebtedness
and duties owning by Seller to Purchaser of any kind or nature, present or
future, arising under or in connection with this Agreement or any other
agreement entered into between Purchaser and Seller, whether direct or indirect,
including all Advances, Finance Fees, Administrative Fees, Chargeback Amounts,
attorneys' fees and expenses.

        13.14 "PURCHASED ACCOUNTS" shall mean all Accounts identified on any
Schedule of Accounts delivered by Seller to Purchaser which Purchaser elects to
purchase and for which Purchaser makes an Advance, an all monies due or to
become due thereunder.

        13.15  "REMITTANCE" shall have the meaning set forth in Section 3.3

        13.16  "RESERVE" shall have the meaning set forth in Section 1.3.

        13.17 "SETTLEMENT DATE" shall mean the last calendar day of each
Settlement Period.

        13.18 "SETTLEMENT PERIOD" shall mean each calendar month of each year.

                                       8
<PAGE>   9

        IN WITNESS WHEREOF, Seller and Purchaser have executed this Agreement on
the day and year written above.

"PURCHASER"                                  "SELLER"

                                             Resourcephoenix, Inc.

PACIFIC BUSINESS FUNDING, a                  By: /s/ Greg Thornton
division of Cupertino National Bank             --------------------------------

                                             Title: Chief Financial Officer
By: /s/ Mike Hanson                                -----------------------------
   --------------------------------

Title: Vice President
      -----------------------------
                                             ADDRESS OF SELLER, CHIEF EXECUTIVE
                                             OFFICE AND LOCATION OF COLLATERAL

                                             Street: 1301 Harbor Bay Parkway
OTHER LOCATIONS OF COLLATERAL, IF
ANY, IN ADDITION TO ABOVE:                   City: Alameda

                                             State: California
-----------------------------------
                                             Zip Code: 94502
-----------------------------------
                                             Telephone No.: (____)
-----------------------------------
                                             Facsimile No.: (____)
-----------------------------------

                                       9

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