Document:

EXHIBIT B

                       MATERIAL CONTRACTS AND OBLIGATIONS

As of the Closing  Date,  Genesis is a newly formed  Company and has no material
contracts or obligations. Michael A. Kirk, as a Founding Shareholder and Officer
of the newly formed  corporation,  has entered into certain agreements on behalf
of the Company.  Such  agreements  are for the purpose of opening the  corporate
offices  in a timely  fashion,  have been or will be  assumed  and  ratified  by
Genesis. Such agreements include a lease agreement,  agreements for the purchase
of office furniture and equipment,  and agreements for phone service and similar
items.EXHIBIT C

                               BROKERS AND FINDERS

         In accordance  with the Letter of Agreement  that follows,  Genesis has
agreed to pay a finders fee of $20,000 to North Pacific Ventures, LLC, and North
Pacific  Ventures has agreed to accept $20,000 for the finders fee. Genesis will
make the $20,000  payment to North Pacific  Ventures LLC within five days of the
Closing Date upon delivery by North Pacific Ventures LLC of a full, complete and
unconditional release.OPTION TO ACQUIRE SHARES FROM A SHAREHOLDER

         THIS AGREEMENT is by and between  TEMPORARY  FINANCIAL  SERVICES,  INC.
("TFS")  which owns  800,000  shares of the common  stock of Genesis  Financial,
Inc., a Washington corporation (the "GENESIS"),  and Michael A. Kirk and Douglas
B. Durham (collectively the "Buyer").

                                 R E C I T A L S

         This  Agreement is entered into upon the basis of the  following  facts
and intentions of the parties:

A.       TFS owns 800,000 shares of the common stock (collectively the "Shares")
         of GENESIS.

B.       Buyer  desires to obtain an option to purchase  the Shares from TFS and
         TFS is willing to grant such an option to Buyer.

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
adequacy of which are hereby acknowledged, the parties hereby agree as follows:

1.       Option.  As of the date  hereof,  TFS  grants to Buyer an  option  (the
         "Option")  to  purchase  up to 200,000 of the Shares  from TFS upon the
         terms,  covenants  and  conditions  hereinafter  set  forth.  The share
         certificates  representing  the Shares  shall  hereafter  bear a legend
         referring to this Option Agreement.

2.       Consideration  for the Option.  This Option is given in connection with
         the transaction (the  "Transaction")  described in the Stock Investment
         Agreement  executed on January 25,  2002,  and the  agreement of TFS to
         sell the  securities to Buyers is an integral part of the  transaction,
         supported  by  adequate  consideration,  receipt  of  which  is  hereby
         acknowledged by TFS.

3.       Term and Exercise.  Buyer may exercise the Option at any time up to and
         until  December 31, 2005, by giving TFS written notice of the intention
         to exercise the Option.

4.       Purchase  Price.  The purchase  price  ("Purchase  Price")  which Buyer
         agrees to pay upon exercise of the Option is the lesser of Five Dollars
         ($5.00) per share,  or the  Initial  Public  Offering  Price if GENESIS
         conducts an Initial Public Offering prior to the expiration date of the
         Option. The Purchase Price is payable in cash.

5.       Number of  Shares.  The number  and class of Shares  specified  in this
         Agreement   and/or  the  Purchase  Price  are  subject  to  appropriate
         adjustment in the event of any merger,  reorganization,  consolidation,
         recapitalization,   liquidation,   stock  dividend,   split-up,   share
         combination  or other change in the corporate  structure of the GENESIS
         affecting the Shares.

6.       Representations  and  Warranties of TFS. TFS represents and warrants to
         the Buyer that:

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      (a)   TFS has full  power  and  authority  to  execute  and  deliver  this
            Agreement,  and this  Agreement  is a valid  and  binding  agreement
            enforceable against the TFS in accordance with its terms;

      (b)   Neither the  execution of this  Agreement nor the sale of the Shares
            will  constitute a violation of, or conflict with, or default under,
            any contract, commitment, agreement, understanding or arrangement to
            which  the TFS is a party  or by  which  TFS is bound or of any law,
            decree, or judgment;

      (c)   Now and up to the time of  exercise  of the  Option,  TFS will  have
            valid  title to the  Shares,  free and clear of all  claims,  liens,
            charges, encumbrances and security interests, and will transfer such
            Shares  upon  exercise  of the Option to the Buyer free and clear of
            all claims, liens, charges, encumbrances and security interests;

      (d)   The  Purchase  Price may or may not reflect the actual  value of the
            Shares, that TFS has investigated the value  independently,  that it
            has been represented by independent counsel, and that it understands
            that the value of the Shares when and if the Option is exercised may
            be significantly higher than the Purchase Price; and

      (e)   Prior to December 31, 2005,  TFS shall not sell,  assign,  transfer,
            pledge, hypothecate, or otherwise encumber 200,000 of the Shares.

7.       Cooperation.  Each  party  shall,  upon  request  of the  other  party,
         promptly execute and deliver all additional documents reasonably deemed
         by the  requesting  party to be necessary,  appropriate or desirable to
         complete and evidence the sale,  assignment  and transfer of the Shares
         pursuant to this Agreement.

8.       Representations  and  Warranties  of the Buyer.  Buyer  represents  and
         warrants  to the TFS that (a) this  Agreement  is a valid  and  binding
         agreement  enforceable  against Buyer in accordance  with its terms and
         (b) Buyer,  if he exercises the option,  will be purchasing  the Shares
         for his own  account  and not with a view to or for sale in  connection
         with  any  distribution  of such  Shares  in  violation  of  applicable
         securities laws.

9.       Purchase and Sale.  If Buyer  exercises  the Option,  at a closing (the
         "Closing"),   TFS  shall  sell,   transfer   and  deliver  the  Shares,
         represented  by  certificates  duly endorsed in blank or accompanied by
         stock powers duly executed,  to the Buyer, and the Buyer shall purchase
         the Shares in exchange for the Purchase Price.

10.      Dividends and Voting Rights. Until the Option is exercised,  if at all,
         all dividends  and voting  rights  attendant to the Shares shall remain
         with TFS.

11.      Buyer May Exercise Option for Less Than All Shares. Notwithstanding any
         other  provision  herein to the  contrary,  the Buyer may  exercise the
         Option  with  respect to less than all of the  Shares.  Michael A. Kirk
         (Kirk) and  Douglas  B.  Durham  (Durham)  shall  each be  entitled  to
         purchase 100,000 shares in accordance with this Option.  If either Kirk
         or Durham does not

<PAGE>

         purchase  the full number of shares  available to him under this Option
         prior to the  expiration  date,  the other shall have the right for ten
         days  following  expiration  of this Option,  to purchase the remaining
         shares,  and for this purpose only, the  expiration  date of the Option
         shall be considered extended.

12.      Survival.  All  representations,  warranties and agreements made by the
         TFS and by the Buyer in this  Agreement  shall survive the execution of
         this Agreement and any Closing and any  investigation  at any time made
         by or on behalf of any party hereto.

13.      Modification;  Assignment. This Agreement may not be modified, amended,
         altered or  supplemented  except upon the  execution  and delivery of a
         written agreement executed by the parties hereto.  Buyer may assign his
         rights under this Agreement with the consent of TFS.

14.      Successors.  This Agreement will be binding upon,  inure to the benefit
         of and be  enforceable  by and  against  the  parties  hereto and their
         respective  heirs,   beneficiaries,   executors,   representatives  and
         permitted assigns.

15.      Governing  Law.  This  Agreement  shall be governed by and construed in
         accordance with the laws of the State of Washington.

16.      Entire Agreement. This Agreement constitutes the entire agreement among
         the parties  with  respect to its  subject  matter and  supersedes  all
         agreements, understanding, representations, or warranties, whether oral
         or written,  by or among the parties,  previously or  contemporaneously
         made or given.

IN WITNESS  WHEREOF,  this Agreement has been duly executed and delivered by the
Buyer and TFS as of the day and year first written below:

BUYER:                                            TFS:

_/s/ Michael A. Kirk_____1/25/2002_               _/s/ Jon R. Coghlan___________
Michael A. Kirk                       Date        John R. Coghlan, President

_/s/ Douglas B. Durham___1/25/2002_
Douglas B. Durham                     DateEMPLOYMENT AGREEMENT

         AGREEMENT dated as of January 25, 2002,  between GENESIS FUNDING,  INC.
("Genesis"), a Washington corporation, having its principal place of business at
200 North Mullan Road,  Suite 217,  Spokane,  Washington  99206,  and Douglas B.
Durham, an individual residing in Spokane, Washington ("Durham").

WITNESSETH:

         WHEREAS,  Genesis,  has executed documents relating to an investment in
GENESIS by Temporary Financial Services, Inc. ("TFS"), John R. Coghlan,  Michael
A. Kirk, and Douglas B Durham (the "Investors").

         WHEREAS, Durham is acknowledged as a capable and qualified executive in
the financial services business that Genesis will be engaged in;

         WHEREAS,  the parties  acknowledge that Durham's abilities and services
are unique and  essential  to the  prospects of Genesis and the  Investors  have
invested  in Genesis in  reliance  on  Durham's  continuing  services to Genesis
pursuant to this Agreement; and

         WHEREAS, in light of the foregoing, Genesis desires to employ Durham as
its Chairman and Durham desires to accept such employment.

         NOW, THEREFORE, the parties hereto agree as follows:

1.       Employment.  Genesis  hereby  employs  Durham and Durham hereby accepts
         employment upon the terms and conditions hereinafter set forth.

2.       Term.  This  Agreement  shall  commence  on the date  hereof  and shall
         terminate as of the earlier of:

         (a)      Two years from the date hereof  (the  "Initial  Term")  unless
                  either  Durham or  Genesis  notifies  the other  that he or it
                  elects to extend the term  hereof for an  additional  one year
                  (the "Renewal Period"), such notice to be given within 90 days
                  before the end of the  Initial  Term  hereof or within 90 days
                  before the end of each successive Renewal Period;

         (b)      The death of Durham;

         (c)      Unless  cured by Durham  within the thirty day period,  thirty
                  days after  notice is given by Genesis to Durham of a material
                  breach hereof by Durham; or

         (d)      Unless cured by Genesis  within the thirty day period,  thirty
                  days after notice is given by Durham to Genesis, of a material
                  breach hereof by Genesis.

                  The  exercise  of the right of Genesis or Durham to  terminate
                  this  Agreement  pursuant to clause (c) or (d) hereof,  as the
                  case may be, shall not abrogate the rights and remedies of the
                  terminating party in respect of the breach giving rise to such
                  termination.  Genesis shall only be

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                  deemed to have  materially  breached  this  Agreement  and the
                  terms of Durham's  employment if it fails to pay  compensation
                  as required  under  Section 3 or if it  reassigns  Durham to a
                  position other than senior executive as required Section 4.

3.   Compensation. For all services rendered under this Agreement:

         (a)      Base Salary. Genesis shall pay Durham a base salary of $12,000
                  per annum in equal monthly or semi-monthly  installments.  The
                  Board of Directors will review,  at least  annually,  Durham's
                  compensation  with a view to  increasing  it if,  in the  sole
                  judgment of the Board of Directors, the earnings of Genesis or
                  the services of Durham merit such an increase.

         (b)      During the Initial  Term,  Durham shall also  receive,  at the
                  discretion of the Board of Directors,  incentive  compensation
                  in  amounts  and at the  times  set  by the  Board.  Incentive
                  compensation  payable under this  subparagraph  is intended to
                  reward exemplary performance.

         (c)      During the term of his employment, Durham shall be entitled to
                  participate in employee  benefit plans or programs of Genesis,
                  if any, to the extent that his position,  tenure, salary, age,
                  health  and  other   qualifications   make  him   eligible  to
                  participate,  subject to the rules and regulations  applicable
                  thereto.  Such additional  benefits shall include,  subject to
                  the approval of the Board of Directors,  full  medical,  three
                  weeks paid vacation,  and qualified pension and profit sharing
                  plans.

         (d)      Durham  shall be entitled  to  reimbursement  of all  expenses
                  incurred by him in the  performance of his duties,  subject to
                  the  presenting of  appropriate  vouchers in  accordance  with
                  Genesis's policy.

4.       Duties.  Durham is engaged  initially  with the title and  functions of
         Chairman  of  Genesis  and,  subject to the  direction  of the Board of
         Directors,  shall perform and discharge  well and faithfully the duties
         which may be assigned to him from time to time by Genesis in connection
         with the conduct of its  business.  Nothing  herein shall  preclude the
         Board of Directors of Genesis from changing  Durham's  title and duties
         if the Board has concluded in its reasonable  judgment that such change
         is in Genesis's best interests;  provided,  however,  that at all times
         during the term of this Agreement, Durham shall be employed as a senior
         Executive of Genesis with  appropriate and  commensurate  compensation,
         title, rank and status. If Durham is elected or appointed a director or
         officer of Genesis or any  subsidiary  thereof  during the term of this
         Agreement,   Durham  will  serve  in  such  capacity   without  further
         compensation.

5.       Extent of  Services.  Durham  shall devote part time to the business of
         Genesis.  It is understood by Genesis that Durham is currently employed
         by  Production  Finance  International,  LLC  ("PFI"),  and Durham will
         continue his employment with PFI during the term of this Agreement. PFI
         does not compete with Genesis. Durham is prohibited, during the term of
         this agreement from providing services to a competitor of Genesis. This
         prohibition  shall  not be  construed  as  preventing  Durham  from (a)
         investing his personal  assets in businesses  which do not compete with
         Genesis, (b) purchasing  securities in any corporation whose securities
         are regularly  traded  provided that such purchase  shall not result in
         his collectively  owning  beneficially at any time

<PAGE>

         five  percent  or  more of the  equity  securities  of any  corporation
         engaged  in  a  business  competitive  to  that  of  Genesis,  and  (c)
         participating in conferences,  preparing or publishing  papers or books
         or  teaching  so  long  as the  Board  of  Directors  approves  of such
         activities prior to Durham's  engaging in them. Prior to commencing any
         activity  described in clause (c) above,  Durham shall inform the Board
         of Directors of Genesis in writing of any such activity.

6.       Disclosure of Information.

         (a)      Durham  represents  and  warrants  to Genesis  that his resume
                  included in the Genesis  Funding  Business Plan sets forth all
                  material information about Durham's background. Durham further
                  represents  that he is not  subject  to any  covenants  not to
                  compete.

         (b)      Durham   recognizes  and  acknowledges  that  Genesis's  trade
                  secrets and proprietary information and processes, as they may
                  exist  from time to time,  are  valuable,  special  and unique
                  assets of Genesis's business, access to and knowledge of which
                  are essential to the performance of Durham's duties hereunder.
                  Durham will not, during or after the term of his employment by
                  Genesis,   in  whole  or  in  part,   disclose  such  secrets,
                  information  or  processes to any person,  firm,  corporation,
                  association   or  other  entity  for  any  reason  or  purpose
                  whatsoever, nor shall Durham make use of any such property for
                  his own  purposes  or for the  benefit  of any  person,  firm,
                  corporation  or  other  entity  (except   Genesis)  under  any
                  circumstances  during  or after  the  term of his  employment,
                  provided  that  after  the  term  of  his   employment   these
                  restrictions shall not apply to such secrets,  information and
                  processes  which are then in the public domain  (provided that
                  Durham was not responsible,  directly or indirectly,  for such
                  secrets,  information or processes  entering the public domain
                  without Genesis's consent). Durham agrees to hold as Genesis's
                  property, all memoranda,  books, papers, letters, formulas and
                  other data, and all copies  thereof and therefrom,  in any way
                  relating to Genesis's  business  and affairs,  whether made by
                  him  or  otherwise   coming  into  his   possession,   and  on
                  termination of his employment, or on demand of Genesis, at any
                  time, to deliver the same to Genesis.

7.       Inventions. Durham hereby sells, transfers and assigns to Genesis or to
         any person,  or entity designated by Genesis,  the entire right,  title
         and interest of Durham in and to all inventions, ideas, disclosures and
         improvements,   whether  patented  or  unpatented,   and  copyrightable
         material,  made or conceived by Durham,  solely or jointly, or in whole
         or in part,  during  the term of this  Agreement  which  (i)  relate to
         methods,  apparatus,  designs,  products,  processes  or devices  sold,
         leased,  or used by Genesis or any subsidiary or (ii) otherwise  relate
         to or pertain to the  business,  functions or  operations of Genesis or
         any  subsidiary.  Durham  shall  communicate  promptly  and disclose to
         Genesis, in such form as Genesis requests, all information, details and
         data pertaining to the aforementioned  inventions,  ideas,  disclosures
         and  improvements;  and,  whether during the term hereof or thereafter,
         Durham shall  execute and deliver to Genesis such formal  transfers and
         assignments  and such other papers and  documents as may be required of
         Durham to permit Genesis or any person or entity  designated by Genesis
         to file and prosecute the patent  applications and, as to copyrightable
         material,  to  obtain  copyright  thereon.  Any  invention  by  Durham,
         relating  to the  business of Genesis,  within one year  following  the
         termination  of this  Agreement  shall be  deemed  to fall  within  the
         provisions of this paragraph unless proved by Durham to have been first
         conceived and made following such termination.

<PAGE>

8.       Covenant Not to Compete.

         (a)      During  the  term  hereof  and,   unless  this   Agreement  is
                  terminated  pursuant to Section 2(d)  hereof,  for a period of
                  two years  thereafter,  Durham shall not compete,  directly or
                  indirectly,  with Genesis,  interfere with, disrupt or attempt
                  to disrupt the relationship, contractual or otherwise, between
                  Genesis and any  customer,  client,  supplier,  consultant  or
                  employee of Genesis, including, without limitation,  employing
                  or being  an  investor  (representing  more  than a 5%  equity
                  interest)  in, or  officer,  director  or  consultant  to, any
                  person or entity  which  employs  any former key or  technical
                  employee whose  employment  with Genesis was terminated  after
                  the date which is one year prior to the date of termination of
                  Durham's employment therewith. An activity competitive with an
                  activity  engaged  in by Genesis  shall  include  becoming  an
                  employee,  officer,  consultant  or  director  of, or being an
                  investor  in, or owner of, an entity or person  engaged in the
                  business then engaged in by Genesis.

         (b)      It is the desire and intent of the parties that the provisions
                  of this  Section 8 shall be  enforced  to the  fullest  extent
                  permissible under the laws and public policies applied in each
                  jurisdiction in which enforcement is sought.  Accordingly,  if
                  any particular  portion of this Section 8 shall be adjudicated
                  to be invalid or unenforceable, this Section 8 shall be deemed
                  amended  to delete  or modify  the  offending  portion  to the
                  extent  required  to make this  Section 8  enforceable  in the
                  particular jurisdiction in which such adjudication is made.

         (c)      Nothing in this  Section 8 shall  reduce or abrogate  Durham's
                  obligations during the term of this Agreement under Sections 4
                  and 5 hereof.

9.   Remedies.

         (a)      The parties hereto  acknowledge  that the damages  suffered by
                  Genesis  and  the  Investors  from  Durham's  breach  of  this
                  Agreement, by his continued neglect of his duties in Section 4
                  or  5,  may  not  be  ascertainable.  Accordingly,  if  Durham
                  breaches Section 4 or 5 hereof by continuously  neglecting his
                  duties in either of said  Sections,  Genesis and the Investors
                  shall be  entitled  to the  greater of actual  proven  damages
                  (determined by a court or  arbitrator)  or liquidated  damages
                  from Durham in the amount of $18,000.

         (b)      If there is a breach or threatened breach of the provisions of
                  Section 5, 6(b), 7 or 8 of this  Agreement,  Genesis  shall be
                  entitled to an injunction restraining Durham from such breach.
                  Nothing herein shall be construed as prohibiting  Genesis from
                  pursuing  any other  remedies  for such  breach or  threatened
                  breach.

         (c)      If this  Agreement  is  terminated  pursuant  to Section  2(d)
                  hereof,  Durham is not required to mitigate damages  otherwise
                  obtainable  from Genesis as a result  Genesis'  breach and any
                  income  received by Durham  after such  termination  shall not
                  reduce the amount of damages otherwise obtainable from Genesis
                  hereunder.

10.      Insurance.  Genesis may, at its  election  and for its benefit,  insure
         Durham against accidental loss or death and Durham shall submit to such
         physical  examination and supply such information as may be required in
         connection therewith.

<PAGE>

11.      Assignment.  This Agreement may not be assigned by Durham.  Genesis may
         assign this  Agreement  in  connection  with a merger or  consolidation
         involving  Genesis  or a sale of  substantially  all its  assets to the
         surviving corporation or purchaser, as the case may be, so long as such
         assignee assumes Genesis's obligations under this Agreement.

12.      Notices.  Any  notice  required  or  permitted  to be given  under this
         Agreement shall be sufficient if in writing and sent by registered mail
         to Durham at his residence at 1926 East 38th, Spokane, Washington 99203
         or Genesis at its  address  set forth  above,  Attention:  The Board of
         Directors.

13.      Waiver  of  Breach.  A waiver by  Genesis  or Durham of a breach of any
         provision of this  Agreement by the other party shall not operate or be
         construed as a waiver of any subsequent breach by the other party.

14.      Entire Agreement.  This instrument contains the entire agreement of the
         parties.  It may be changed only by an agreement in writing signed by a
         party against whom  enforcement  of any waiver,  change,  modification,
         extension or discharge is sought.

IN WITNESS  WHEREOF,  the parties  hereto have executed this Agreement as of the
day and year first hereinabove written.

Genesis Funding, Inc.                          Durham

_/s/ Michael A. Kirk____________               _/s/ Douglas B. Durham________
Name: _Michael A. Kirk__________               Douglas B. Durham
Title: ___President_____________

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