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                                                                    EXHIBIT 10.2

                      SETTLEMENT AND RECONVEYANCE AGREEMENT

     THIS SETTLEMENT AND RECONVEYANCE AGREEMENT (the "Agreement") is entered
into this 6th day of April, 2001 (the "Effective Date") by and between LOGIX
DEVELOPMENT CORPORATION, a Nevada corporation ("LDN"); GAMING SYSTEMS
INTERNATIONAL, a Nevada corporation ("GSI"); MAI SYSTEMS CORPORATION, a Delaware
corporation ("MAI"); and LOGIX DEVELOPMENT CORPORATION, a California corporation
("LDC").

                                    RECITALS

     WHEREAS, on June 18, 1999, a Contract of Sale and three Secured Notes (the
"Prior Notes") for the purchase of all assets of GSI by LDN was entered into by
and between the parties;

     WHEREAS, MAI has declared and placed LDN and LDC on notice that they
believe defaults have occurred under the original Contract of Sale and the Prior
Notes; and

     WHEREAS, it is the intent of the parties to enter into a settlement and
reconveyancing agreement to facilitate the complete transfer of the ownership of
LDN to MAI and GSI and to restructure the obligations of LDN and LDC as more
specifically provided herein.

     NOW, THEREFORE, in consideration of the mutual covenants recited herein,
the receipt and adequacy of which is hereby acknowledged, the parties agree as
follows:

1   Reconveyance of Ownership. LDN hereby conveys and transfers all right, title
    and interests in all intangible and tangible assets owned by LDN to MAI and
    GSI forthwith.

2   Satisfaction of Prior Notes. In consideration of the reconveyance of the LDN
    assets, and those considerations contained in this Agreement, MAI hereby
    accepts such tangible and intangible assets as full and complete
    satisfaction of the Prior Notes referenced in the Contract for Sale.

3   Cancellation of Inter-Company Debt/Non-Assumption of Certain Liabilities. It
    is agreed that:

    (a) Any debts between LDN and LDC, Keith Howington, Anne Howington, and any
        other entity owned in whole or in part by Keith and Anne Howington shall
        be canceled, except for prior payroll checks issued to Anne Howington,
        totaling less than $50,000 in the aggregate, which shall be held by GSI
        for a period of 90 days from the date of execution of this Agreement.

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    (b) MAI, GSI or their designated affiliates shall not assume any
        non-disclosed material liabilities as stated in the February 28th, 2001
        balance sheet except those that subsequently occurred in the normal
        course of business.

4   Restructuring of $1.1 Million Dollar Promissory Note. The parties hereby
    agree that the $1.1 million dollar promissory Note guaranteed by LDC (the
    "Note") will be restructured as follows:

    (a) The Note will bear interest beginning from its date of execution. The
        interest rate for the first 12 months shall be 8.75% per annum, and
        interest shall be earned on the Note beginning from the date of this
        Agreement;

    (b) No payments upon the interest or principal of the Note shall be due for
        the first twelve months;

    (c) Beginning with the thirteenth month, 36 monthly payments shall be made
        upon the interest and principal;

    (d) Each payment shall be due on the last day of the associated calendar
        month, with the first payment due on the last day of April, 2002 as
        shown in the attached Amortization Schedule (Exhibit B);

    (e) On each anniversary of this Agreement, the per-annum interest rate for
        the following twelve months shall be determined based upon the
        then-current Wall Street Journal Prime Interest Rate plus 2%;

    (f) The amount of the monthly payment upon principal and interest shall be
        determined so as to bring the principal balance to zero as of the 36th
        payment, based upon the interest rate in effect for the Note as
        determined above, which may cause the monthly payments for each 12 month
        period to vary by a small amount;

    (g) The Note shall be treated as a direct reduction loan for the purposes of
        such interest calculation, with no prepayment penalty;

    (h) LDC agrees to execute a promissory Note instrument to this effect;

    (i) The principal amount due and owing under the Note shall be reduced by
        the amount of credit received as a result of the sales price allocation
        agreement by the parties as provided herein below; and

    (j) The Parties agree that the Note may be assigned without requiring the
        consent of LDC.

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5   Sales Price Allocation. It is agreed that should MAI sell all or a majority
    of GSI or the assets thereof to a third party, this event will be treated as
    a "Qualified Deal" provided that it falls within the time limits indicated
    herein.

    (a) The time limit shall be indefinite for any of the following entities and
        any companies within their control: Ballys, Konami, MIS/Grips, and any
        entity introduced to MAI by Keith Howington to a maximum of three
        entities, so long as such additional entities are introduced to MAI
        within 90 days of the Effective Date. It is understood that the company
        names referred to herein are not necessarily the exact legal names of
        the entities in question;

    (b) The time limit shall be ninety (90) days for any third party other than
        those listed pursuant to section (a) above with whom an agreement to the
        terms and conditions of the deal are reached in that time frame;

    (c) Should a Qualified Deal take place as described above, 30% of the deal
        value shall reduce the $1.1 million Note; and

    (d) In the event that there is an excess from a Qualified Deal after
        reduction of the Note as outlined above, such excess shall be paid in
        cash as a contingent commission to LDC, within 30 days from the time
        that cash or equivalent instruments are received by MAI or GSI.

6   Disclosure. Anne Howington and Keith Howington, as officers and shareholders
    of LDN, hereby disclose that to their personal knowledge the books and
    records of LDN correctly and accurately reflect the financial affairs of the
    company. To their personal knowledge, no litigation is currently filed
    against the company except for two recently served small vendor collection
    actions which are attached hereto. Neither Anne nor Keith Howington are
    personally aware of any side "deals" or contracts outside the normal course
    of business or off book or off balance sheet liabilities and hereby
    represent that they have not created any. To their knowledge, company taxes
    have been paid currently, though it is unknown what the current payroll
    withholding status is.

7   Transfer of Ownership. LDN hereby transfers and conveys to MAI all
    equipment, inventory, trade, furniture, accounts receivable, prepaid
    expenses, bank accounts, contracts, intellectual property rights (whether
    patent, copyright, trademark, trade name, service mark, or otherwise),
    goodwill, the names "GAMING Systems International" "GSI," "GSI/Europe," and
    "Gambit" (and all logos used together with those names), all warranties,
    licenses, unfulfilled work orders, claims, choses in action, works in
    progress including wireless and circuit board design, and customers and any
    other assets listed in the attached UCC-1's. The trade name "Logix" is
    retained by LDC. MAI agrees to change the corporate name of LDN within
    ninety (90) days after the effective date of this Agreement so as not to
    conflict with "Logix."

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8   LDC Transfer of Gambit. LDC hereby agrees to transfer all of its rights,
    title and interest to the Gambit software (including those modules that have
    been developed or are partially developed), associated intellectual
    property, wireless technology, slot boards, preliminary patent applications
    including source code and any and all related documentation. To the extent
    that certain tools used in and required for the development of Gambit are
    proprietary to LDC, it is agreed that LDC will grant MAI a non-exclusive
    license for the tools, and provide a copy of the tools to facilitate
    completion and utilization of the software. Should MAI or any of its agents
    or representatives seek to obtain letters patent, trademarks or copyrights
    in any country of the world on all or part of the Gambit software system,
    LDC agrees to cooperate fully in providing information, completing forms,
    performing actions and obtaining the necessary signatures or assignments
    required to obtain such letters patent, trademarks or copyrights. In the
    event MAI shall be unable for any reason to obtain LDC's signature on any
    document necessary for any purpose set forth in the foregoing sentence, LDC
    hereby irrevocably designates and appoints each of MAI and its duly
    authorized officers and agents as LDC's attorney-in-fact to act for and in
    LDC's behalf and to stead to execute and file any such document and to do
    all other lawfully permitted acts to further any such purpose with the same
    force and effect as if executed and delivered by LDC, specifically with
    regard only to the perfection and completion of patents upon portions of the
    GAMBIT system for which preliminary protection was filed in October of 2000.

9   Release of MIS/Grips Restraints. LDN agrees to immediately contact MIS/GRIPS
    and to confirm in writing that they are released from their confidentiality
    agreement and may discuss their potential interest in purchasing LDN-GSI
    with MAI.

10  Non-Competition. In consideration of the mutual covenants contained herein
    and specifically the purchase price participation credit set forth in
    Paragraph 4, LDC agrees not to compete in the development, sale,
    representation or marketing of casino management software, until the later
    of two years from the date of this Agreement or until the repayment of the
    Note, whichever is longer.

11  Transfer of Stock. The shareholders of LDN shall provide their consent to:

    (a) The release of the pledged shares of common stock of LDN (the "Shares")
       to MAI pursuant to the Pledge Agreement between the parties executed as
       of even date with the Contract of Sale; and

    (b) The completion of the related Stock Powers conveying said Shares to MAI,
       GSI or an affiliate of these entities.

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12  Transition Cooperation. It is agreed by the parties hereto that there shall
    be full cooperation in the transition involving the reconveyance of the
    assets and ownership of LDN as provided herein. It is specifically agreed as
    follows:

    (a) LDC shall identify those employees involved with the development and
        continuing design of the Gambit software and make them available for
        hiring by MAI or the GSI management, in most cases full-time;

    (b) LDC shall provide, at no cost to MAI, a two-day overview of the Gambit
        project at LDC's offices;

    (c) Keith Howington will make himself available on an ongoing basis to
        provide consulting services to MAI and/or the management of GSI to
        facilitate the transfer and assist in the smooth transition of the
        design team for the Gambit software at MAI's written request via
        purchase order and based upon a week-to-week term. Mr. Howington will
        make himself available two days a week for a period not to exceed ninety
        (90) days on an "as available and as needed basis" and compensated at
        $200 per hour and approved expenses, except that the first 4 hours of
        telephone consultation per month shall be without charge during this 90
        day period;

    (d) The parties agree to execute those instruments necessary to replace
        themselves with persons appointed by MAI with regard to financial
        documents and other transactions; and

    (e) The current Board of Directors of LDN agree to resign (and the Board of
        Directors nominated by MAI to accept such resignation) as soon as the
        Board of Directors have accepted their positions.

13  Mutual Press Release. No party hereto shall make any public announcement or
    issue any press release pertaining to this Agreement without the prior
    written consent of the other.

14  Attorney's Fees/Venue. Should any litigation be commenced between any of the
    parties hereto concerning this Agreement, the party prevailing in that
    litigation shall be entitled, in addition to any other relief that may be
    granted, to a reasonable sum as and for its attorneys' fees and shall be
    determined by the court in that litigation or in a separate action brought
    for that purpose. The parties agree that the venue for any enforcement
    litigation shall be appropriate in the Superior Court of Orange County,
    California.

15  Governing Law. This Agreement shall be governed and all rights and
    liabilities under it shall be determined in accordance with the laws of the
    State of California in effect on this date.

16  Counterpart and Facsimile. This Agreement may be signed in counterpart with
    all counterpart signature pages being attached to be considered an original,
    whole and enforceable document. Additionally, facsimile signatures shall be
    treated as originals and enforceable for all intents and purposes.

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17  Further Assurances. Each party hereby agrees to take such other and further
    actions and to execute such other documents and instruments as may be
    required to carry out the intent and purposes of this Agreement.

18  Mutual Release. In consideration of the releases and promises contained
    herein, and for other good and valuable consideration, the receipt of which
    is hereby acknowledged by each party hereto, the parties promise, agree and
    generally release as follows:

    (a) Except to such rights or claims as may be created by this Agreement,
        including the Note, which obligations shall survive this Agreement, each
        party and each of their respective parents, subsidiaries, divisions,
        affiliates, related entities, present and former officers, directors,
        shareholders, employees, attorneys, insurers and agents, and each of
        them hereby release remise and forever discharge each of the other
        parties and each of their respective officers, directors, shareholders,
        employees, attorneys, insurers and agents, and each of them, from any
        demands, rights and causes of action arising out of or related to the
        aforementioned Contract for Sale and the Prior Notes.

    (b) The parties acknowledge and agree that the release contained in
        subparagraph (a) above is subject to the full and faithful performance
        of the affirmative covenants contained in this Agreement by LDC, Keith
        Howington, and Anne Howington.

19  Confidentiality. Except by use of the language as indicated in this Section,
    the parties further agree not to disclose the contents of this Agreement or
    the fact of this Settlement, or any matters pertaining to this settlement
    unless such disclosure is (i) lawfully required by any governmental agency;
    (ii) otherwise required to be disclosed by law; (iii) necessary in any legal
    proceeding in order to enforce any provisions of this Agreement. The parties
    agree that they will notify each other in writing within five calendar days
    of the receipt of any subpoena, court order, or administrative order
    requiring disclosure of information subject to this non-disclosure
    provision. The only allowable statement of the relationship between the
    Parties is "MAI, Logix and GSI have reached an agreement that each believes
    is very beneficial to GSI, and all parties are acting to carry out the terms
    of this agreement. Please contact MAI for further details at..."

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IN WITNESS WHEREOF, all the parties have executed this Agreement as of the date
first above noted.

DATED: April __, 2001.                         LOGIX DEVELOPMENT CORPORATION,
                                               a California corporation

                                               By:
                                                   -----------------------------

DATED: April __, 2001.                         LOGIX DEVELOPMENT CORPORATION,
                                               a Nevada corporation

                                               By:
                                                   -----------------------------

DATED: April __, 2001.                         GAMING SYSTEMS INTERNATIONAL,
                                               a Nevada corporation

                                               By:
                                                   -----------------------------

DATED: April __, 2001.                         MAI SYSTEMS CORPORATION,
                                               a Delaware corporation

                                               By:
                                                   -----------------------------

DATED: April __, 2001

                                               By:
                                                   -----------------------------
                                                   D. KEITH HOWINGTON

DATED: April __, 2001

                                               By:
                                                   -----------------------------
                                                   ANNE HOWINGTON

DATED: April __, 2001

                                               By:
                                                   -----------------------------
                                                   DR. JUDITH SWERLING

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                                                                    EXHIBIT 10.1

                       AGREEMENT FOR WHOLESALE FINANCING

This Agreement for Wholesale Financing ("Agreement") is made as of May 11, 2001
between DEUTSCHE FINANCIAL SERVICES CORPORATION ("DFS") and Bell Industries,
Inc., a [ ] SOLE PROPRIETORSHIP, [ ] PARTNERSHIP, [X] CORPORATION, [ ] LIMITED
LIABILITY COMPANY (check applicable term) ("Dealer"), having a principal place
of business located at 1960 E. Grand Avenue, Suite 560, El Segundo, California,
90245.

1.   EXTENSION OF CREDIT. Subject to the terms of this Agreement, DFS may extend
     credit to Dealer from time to time to purchase inventory from DFS approved
     vendors ("Vendors") and for other purposes. If DFS advances funds to Dealer
     following Dealer's execution of this Agreement, DFS will be deemed to have
     entered into this Agreement with Dealer, whether or not executed by DFS.
     DFS' decision to advance funds will not be binding until the funds are
     actually advanced. DFS may combine all of DFS' advances to Dealer or on
     Dealer's behalf, whether under this Agreement or any other agreement, and
     whether provided by one or more of DFS' branch offices, together with all
     finance charges, fees and expenses related thereto, to make one debt owed
     by Dealer. DFS may, at any time and without notice to Dealer, elect not to
     finance any inventory sold by particular Vendors who are in default of
     their obligations to DFS, or with respect to which DFS reasonably feels
     insecure. This is an agreement regarding the extension of credit, and not
     the provision of goods or services.

2.   FINANCING TERMS AND STATEMENTS OF TRANSACTION. Dealer and DFS agree that
     certain financial terms of any advance made by DFS under this Agreement,
     whether regarding finance charges, other fees, maturities, curtailments or
     other financial terms, are not set forth herein because such terms depend,
     in part, upon the availability of Vendor discounts, payment terms or other
     incentives, prevailing economic conditions, DFS' floorplanning volume with
     Dealer and with Dealer's Vendors, and other economic factors which may vary
     over time. Dealer and DFS further agree that it is therefore in their
     mutual best interest to set forth in this Agreement only the general terms
     of Dealer's financing arrangement with DFS. Upon agreeing to finance a
     particular item of inventory for Dealer, DFS will send Dealer a Statement
     of Transaction identifying such inventory and the applicable financial
     terms. Unless Dealer notifies DFS in writing of any objection within seven
     (7) days after a Statement of Transaction is mailed to Dealer: (a) the
     amount shown on such Statement of Transaction will be an account stated;
     (b) Dealer will have agreed to all rates, charges and other terms shown on
     such Statement of Transaction; (c) Dealer will have agreed that DFS is
     financing the items of inventory referenced in such Statement of
     Transaction at Dealer's request; and (d) such Statement of Transaction will
     be incorporated herein by reference, will be made a part hereof as if
     originally set forth herein, and will constitute an addendum hereto. If
     Dealer objects to the terms of any Statement of Transaction, Dealer agrees
     to pay DFS for such inventory in accordance with the most recent terms for
     similar inventory to which Dealer has not objected (or, if there are no
     prior terms, at the lesser of 16% per annum or at the maximum lawful
     contract rate of interest permitted under applicable law), but Dealer
     acknowledges that DFS may then elect to terminate Dealer's financing
     program pursuant to Section 18, and cease making additional advances to
     Dealer. However, such termination will not accelerate the maturities of
     advances previously made, unless Dealer shall otherwise be in default of
     this Agreement.

3.   GRANT OF SECURITY INTEREST. To secure payment of all of Dealer's current
     and future debts to DFS, whether under this Agreement or any current or
     future guaranty or other agreement, Dealer grants DFS a security interest
     in all of Dealer's (a) inventory and equipment distributed or sold by
     Ingram Micro, Inc. or any of its affiliates or subsidiaries, to Dealer, and
     financed by DFS, whether now owned or hereafter acquired and wherever
     located, and all present and future attachments, parts, accessories,
     accessions, substitutions and replacements thereto, and all proceeds
     thereof; (b) inventory and equipment manufactured by, and distributed or
     sold to Dealer, by: 3Com

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     Corporation; Acer America Corporation; AST Research, Inc.; Access
     Graphics, Inc.; Advanced Logic Research, Inc; American Power Conversation;
     APC; Apple Computer, Inc.; Canon U.S.A., Inc.; Cisco Systems, Inc.; Compaq
     Computer Corporation; Comstor Corporation; Dell U.S.A., L.P.; Digital
     Equipment Corporation; Epson America, Inc,; Extended Systems; Farallon
     Computing, Inc.; Hewlett-Packard Company; Ingram Alliance, Inc.; Intel
     Corporation; Iomega Corporation; Lexmark International, Inc.; Lotus
     Development Corporation; Mac USA, Inc.; Matsushita Electric Corporation of
     America; Maxtor Corporation; Maynard Electronics, Inc.; Merisel, Inc.;
     Micronet Technology, Inc.; Microsoft Corporation; Microsource Technologies,
     Inc.; Mitek Corporation; Mitsubishi Electronics America, Inc.; NEC
     Technologies, Inc,; Nortel Networks Corporation; Novell; Oki America, Inc,
     (Okidata Division) (OA); Panasonic Communications & Systems Company; PC
     Wholesale, A Division of Comark, Inc.; Peripheral Land, Inc.; Procom
     Technology, Inc.; QMS, Inc,; Quantum Corporation; Radius, Inc.; RasterOps
     Corporation; Sony Corporation of America; Southland Micro Systems, Inc.
     (fka Sunland Micro Company); Storage Dimensions, Inc.; Sun Microsystems
     Computer Corporation; SuperMac Technology, Inc.; Synnex Information
     Technologies; Tech Data Corporation; Tektronix, Inc.; Toshiba America
     Information Systems, Inc.; Viking Components, Inc.; VisionTek, Inc. (fka
     Desktop Sales, Inc.); Word Perfect; Zenith Data Systems Corporation;
     (Groupe Bull); Zenith Electronics Corporation, or any of their respective
     subsidiaries or affiliated companies, or bearing any trademark or tradename
     of 3Com Corporation; Acer America Corporation; AST Research, Inc.; Access
     Graphics, Inc.; Advanced Logic Research, Inc.; American Power Conversation;
     APC; Apple Computer, Inc.; Canon U.S.A., Inc.; Cisco Systems, Inc.; Compaq
     Computer Corporation; Comstor Corporation; Dell U.S.A., L.P.; Digital
     Equipment Corporation; Epson America, Inc.; Extended Systems; Farallon
     Computing, Inc.; Hewlett-Packard Company; Ingram Alliance, Inc.; Intel
     Corporation; Iomega Corporation; Lexmark International, Inc.; Lotus
     Development Corporation; Mac USA, Inc.; Matsushita Electric Corporation of
     America; Maxtor Corporation; Maynard Electronics, Inc.; Merisel, Inc.;
     Micronet Technology, Inc.; Microsoft Corporation; Microsource Technologies,
     Inc.; Mitek Corporation; Mitsubishi Electronics America, Inc.; NEC
     Technologies, Inc.; Nortel Networks Corporation; Novell; Oki America, Inc.
     (Okidata Division) (OA); Panasonic Communications & Systems Company; PC
     Wholesale, A Division of Comark, Inc.; Peripheral Land, Inc.; Procom
     Technology, Inc.; QMS, Inc.; Quantum Corporation; Radius, Inc.; RasterOps
     Corporation; Sony Corporation of America; Southland Micro Systems, Inc.
     (fka Sunland Micro Company); Storage Dimensions, Inc.; Sun Microsystems
     Computer Corporation; SuperMac Technology, Inc.; Synnex Information
     Technologies; Tech Data Corporation; Tektronix, Inc.; Toshiba America
     Information Systems, Inc.; Viking Components, Inc.; VisionTek, Inc. (fka
     Desktop Sales, Inc.); Word Perfect; Zenith Data Systems Corporation;
     (Groupe Bull); Zenith Electronics Corporation, or any of their respective
     subsidiaries or affiliated companies, when any such brand is financed by
     DFS, whether now owned or hereafter acquired and wherever located, and all
     present and future attachments, parts, accessories, accessions,
     substitutions and replacements thereto, and all proceeds thereof; (c)
     inventory and equipment now or hereafter financed by DFS for Dealer,
     wherever located, and all present and future attachments, parts,
     accessories, accessions, substitutions, and replacements thereto, and
     products thereof, and all proceeds thereof; (d) accounts, contract rights,
     chattel paper, instruments, reserves and general intangibles, owned by or
     due Dealer, now or in the future, however these may be due Dealer and
     wherever located, arising from any of the above described inventory and
     equipment financed by DFS for Dealer, and all proceeds and products
     thereof; and (e) rebates, discounts, credits and incentive payments, now or
     hereafter due to Dealer relating to any of the above described inventory
     and equipment and all proceeds thereof. All such assets are collectively
     referred to herein as the "Collateral." All of such terms for which
     meanings are provided in the Uniform Commercial Code of the applicable
     state are used herein with such meanings. All Collateral financed by DFS,
     and all proceeds thereof, will be held in trust by Dealer for DFS, with
     such proceeds being payable in accordance with Section 10.

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4.   COLLATERAL REPORTS; PAYDOWN. Dealer will forward to DFS by the sixth (6th)
     day of each month (or the next business day) a Collateral Report (as
     defined below) dated as of the 5th day of such month. Regardless of the SPP
     terms pertaining to any Collateral financed by DFS, and notwithstanding any
     scheduled payments made by Dealer after the Determination Date (as defined
     below) or anything contained in the Agreement to the contrary, if DFS
     determines, after reviewing the Collateral Report, after conducting an
     inspection of the Collateral or otherwise, that (i) the total current
     outstanding indebtedness owed by Dealer to DFS as of the date of the
     Collateral Report, inspection or any other date on which a paydown is
     otherwise required hereunder, as applicable (the "Determination Date"),
     exceeds (ii) the Collateral Liquidation Value (as defined below) as of the
     Determination Date, Dealer will immediately upon demand pay DFS the
     difference between (i) Dealer's total current outstanding indebtedness owed
     to DFS as of the Determination Date, and (ii) the Collateral Liquidation
     Value as of the Determination Date. Any and all such paydown amounts will
     be applied to the then oldest outstanding indebtedness owed by Dealer to
     DFS.

     The term "Collateral Report" is defined herein to mean a report compiled by
     Dealer specifying the following information: (a) the total aggregate
     wholesale invoice price of all of Dealer's inventory financed by DFS that
     is unsold and in Dealer's possession and control as of the date of such
     Report; and (b) the total outstanding balance owed to Dealer (and
     specifically to Dealer's Bell Tech.logix division) on Dealer's Eligible
     Accounts (as defined below) as of the date of such Report: in each case to
     the extent DFS has a first priority, fully perfected security interest
     therein; and (c) the total amount owed to Union Bank of California, N.A.
     from Dealer as of the date of such Report ("Union Bank Outstandings"). In
     addition, Dealer will (1) e-mail to DFS by the tenth (10th) day of each
     month, the amount of the Union Bank Outstandings as of the last day of the
     prior month, and (2) forward to DFS not more than twenty-five (25) days
     following each fiscal quarter end, a copy of the borrowing base certificate
     and supporting documentation that Dealer has provided to Union Bank of
     California, N.A. or any successor lender.

     The term "Eligible Accounts" is defined herein to include all of Dealer's
     accounts receivable except for: (a) accounts created from the sale of goods
     and services on non-standard terms and/or that allow for payment to be made
     more than thirty (30) days from the date of sale; (b) accounts unpaid more
     than ninety (90) days from date of invoice; (c) all accounts of any obligor
     with fifty percent (50%) or more of the outstanding balance unpaid for more
     than ninety (90) days from the date of invoice; (d) accounts which the
     obligor is an officer, director, shareholder, partner, member, owner,
     employee, agent, parent, subsidiary, affiliate of, or is related or has
     common shareholders, officers, directors, owners, partners or members; (e)
     consignment sales; (f) accounts for which the payment is or may be
     conditional; (g) accounts for which the obligor is not a commercial or
     institutional entity or is not a resident of the United States or Canada;
     (h) accounts with respect to which any warranty or representation provided
     herein is not true and correct; (i) accounts which represent goods or
     services purchased for a personal, family or household purpose; (j)
     accounts which represent goods used for demonstration purposes or loaned by
     Dealer to another party; (k) accounts which are progress payment, barter or
     contra accounts; (l) accounts which are discounts, rebates, bonuses or
     credits for returned goods owed to Dealer by any third party; (m) accounts
     which are being financed by DFS pursuant to a Business Financing Agreement
     or other comparable document between Dealer and DFS; and (n) any and all
     other accounts which DFS deems to be ineligible. DFS may, with notice to
     Dealer and at any time or times hereafter, verify the validity, amount or
     any other matter relating to any Eligible Account by mail, telephone, or
     other means, in the name of Dealer or DFS.

     The term "Collateral Liquidation Value" is defined herein to mean: (i) one
     hundred percent (100%) of the total aggregate wholesale invoice price of
     all of Dealer's Bell Tech.logix division's inventory and demonstration
     equipment financed by DFS that is unsold and in Dealers possession and

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     control; and (ii) one hundred percent (100%) of the DFS Account Portion (as
     defined below): in each case as of the date of the Collateral Report and to
     the extent DFS has a first priority, fully perfected security interest
     therein.

     The term "DFS Account Portion" is defined herein to mean (a) all
     collections of Eligible Accounts during the preceding month (such amounts
     to be provided by Union Bank to DFS pursuant to biweekly reports) arising
     from the sales of inventory of Dealer's Bell Tech.logix division and
     financed by DFS for Dealer, multiplied by (b) the quotient of (i) the
     amount due DFS from Dealer ("DFS Outstandings") divided by (ii) the sum of
     (x) DFS Outstandings plus (y) Union Bank Outstandings: in each case as of
     the date of the Collateral Report, but in no event to exceed Ten Million
     Dollars ($10,000,000).

     If Dealer from time to time is required to make immediate payment to DFS of
     any past due obligation discovered during any Collateral review, upon
     review of a Collateral Report or at any other time, Dealer agrees that
     acceptance of such payment by DFS shall not be construed to have waived or
     amended the terms of its financing program.

5.   AFFIRMATIVE WARRANTIES AND REPRESENTATIONS. Dealer warrants and represents
     to DFS that: (a) Dealer has good title to all Collateral; (b) provided that
     they are perfected by DFS in accordance with applicable law, DFS' security
     interests in the Collateral financed by DFS are not now and will not become
     subordinate to the security interest, lien, encumbrance or claim of any
     person; (c) Dealer will execute all documents DFS requests to perfect and
     maintain DFS' security interest in the Collateral; (d) Dealer will deliver
     to DFS immediately upon each request, and DFS may retain, each Certificate
     of Title or Statement of Origin issued for Collateral financed by DFS; (e)
     Dealer will at all times be duly organized, existing, in good standing,
     qualified and licensed to do business in each state, county, or parish, in
     which the nature of its business or property so requires; (f) Dealer has
     the right and is duly authorized to enter into this Agreement; (g) Dealer's
     execution of this Agreement does not constitute a breach of any agreement
     to which Dealer is now or hereafter becomes bound; (h) there are no actions
     or proceedings pending or threatened against Dealer which might reasonably
     be expected to result in any material adverse change in Dealer's financial
     or business condition or which might in any way reasonably be expected to
     adversely affect any of Dealer's assets; (i) Dealer will maintain the
     Collateral in good condition and repair; (j) Dealer has duly filed and will
     duly file all tax returns required by law; (k) Dealer has paid and will pay
     when due all taxes, levies, assessments and governmental charges of any
     nature; (l) Dealer will keep and maintain all of its books and records
     pertaining to the Collateral at its principal place of business designated
     in this Agreement; (m) Dealer will promptly supply DFS with such
     information concerning it or any guarantor as DFS hereafter may reasonably
     request; (n) all Collateral will be kept at Dealer's principal place of
     business listed above, and such other locations, if any, of which Dealer
     has notified DFS in writing or as listed on any current or future Exhibit
     "A" attached hereto which written notice(s) to DFS and Exhibit A(s) are
     incorporated herein by reference; (o) Dealer will give DFS thirty (30) days
     prior written notice of any change in Dealer's identity, name, form of
     business organization, ownership, management, principal place of business,
     Collateral locations or other business locations, and before moving any
     books and records to any other location; (p) Dealer will observe and
     perform all matters required by any lease, license, concession or franchise
     forming part of the Collateral in order to maintain all the rights of DFS
     thereunder; (q) Dealer will advise DFS of the commencement of material
     legal proceedings against Dealer or any guarantor; and (r) Dealer will
     comply with all applicable laws and will conduct its business in a manner
     which preserves and protects the Collateral and the earnings and incomes
     thereof.

6.   NEGATIVE COVENANTS. Dealer will not at any time: (a) other than in the
     ordinary course of its business, sell, lease or otherwise dispose of or
     transfer any of its assets without DFS' prior written consent,; (b) rent,
     lease, demonstrate, consign, or use any Collateral financed by DFS without

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<PAGE>   5
     DFS' prior written consent; or (c) merge or consolidate with another entity
     without providing DFS with forty-five (45) days prior written notice.

7.   INSURANCE. Dealer will immediately notify DFS of any loss, theft or damage
     to any Collateral. Dealer will keep the Collateral insured for its full
     insurable value under an "all risk" property insurance policy with a
     company acceptable to DFS, naming DFS as a lender loss-payee and containing
     standard lender's loss payable and termination provisions. Dealer will
     provide DFS with written evidence of such property insurance coverage and
     lender's loss-payee endorsement.

8.   FINANCIAL STATEMENTS. Dealer will deliver to DFS: (a) within ninety (90)
     days after the end of each of Dealer's fiscal years, a reasonably detailed
     balance sheet as of the last day of such fiscal year and a reasonably
     detailed income statement covering Dealer's operations for such fiscal
     year, in a form satisfactory to DFS; (b) within forty-five (45) days after
     the end of each of Dealer's fiscal quarters, a reasonably detailed balance
     sheet as of the last day of such quarter and an income statement covering
     Dealer's operations for such quarter, in a form satisfactory to DFS; and
     (c) within ten (10) days after request therefor by DFS, any other report
     requested by DFS relating to the Collateral or the financial condition of
     Dealer. Dealer warrants and represents to DFS that all financial statements
     and information relating to Dealer or any guarantor which have been or may
     hereafter be delivered by Dealer or any guarantor are true and correct and
     have been and will be prepared in accordance with generally accepted
     accounting principles consistently applied and, with respect to such
     previously delivered statements or information, there has been no material
     adverse change in the financial or business condition of Dealer or any
     guarantor since the submission to DFS, either as of the date of delivery,
     or, if different, the date specified therein, and Dealer acknowledges DFS'
     reliance thereon.

9.   REVIEWS. Dealer grants DFS an irrevocable license to enter Dealer's
     business locations during normal business hours without notice to Dealer
     to: (a) account for and inspect all Collateral; (b) verify Dealer's
     compliance with this Agreement; and (c) examine and copy Dealer's books and
     records related to the Collateral.

10.  PAYMENT TERMS. Dealer will immediately pay DFS the principal indebtedness
     owed DFS on each item of Collateral financed by DFS (as shown on the
     Statement of Transaction identifying such Collateral) on the earliest
     occurrence of any of the following events: (a) when such Collateral is
     lost, stolen or damaged; (b) for Collateral financed under Pay-As-Sold
     ("PAS") terms (as shown on the Statement of Transaction identifying such
     Collateral), when such Collateral is sold, transferred, rented, leased,
     otherwise disposed of or matured; (c) in strict accordance with any
     curtailment schedule for such Collateral (as shown on the Statement of
     Transaction identifying such Collateral); (d) for Collateral financed under
     Scheduled Payment Program ("SPP") terms (as shown on the Statement of
     Transaction identifying such Collateral), in strict accordance with the
     installment payment schedule; and (e) when otherwise required under the
     terms of any financing program agreed to in writing by the parties.
     Regardless of the SPP terms pertaining to any Collateral financed by DFS,
     if DFS determines that the current outstanding debt which Dealer owes to
     DFS exceeds the aggregate wholesale invoice price of such Collateral in
     Dealer's possession, Dealer will immediately upon demand pay DFS the
     difference between such outstanding debt and the aggregate wholesale
     invoice price of such Collateral. If Dealer from time to time is required
     to make immediate payment to DFS of any past due obligation discovered
     during any Collateral review, or at any other time, Dealer agrees that
     acceptance of such payment by DFS shall not be construed to have waived or
     amended the terms of its financing program. The proceeds of any Collateral
     received by Dealer will be held by Dealer in trust for DFS' benefit, for
     application as provided in this Agreement. Dealer will send all payments to
     DFS' branch office(s) responsible for Dealer's account, DFS may apply: (i)
     payments to reduce finance charges first and then principal, regardless of
     Dealer's instructions; and (ii) principal payments to the oldest (earliest)
     invoice for

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<PAGE>   6

     Collateral financed by DFS, but, in any event, all principal payments will
     first be applied to such Collateral which is sold, lost, stolen, damaged,
     rented, leased, or otherwise disposed of or unaccounted for. Any third
     party discount, rebate, bonus or credit granted to Dealer for any
     Collateral will not reduce the debt Dealer owes DFS until DFS has received
     payment therefor in cash. Dealer will: (1) pay DFS even if any Collateral
     is defective or fails to conform to any warranties extended by any third
     party; (2) not assert against DFS any claim or defense Dealer has against
     any third party; and (3) indemnify and hold DFS harmless against all claims
     and defenses asserted by any buyer of the Collateral relating to the
     condition of, or any representations regarding, any of the Collateral.
     Dealer waives all rights of offset Dealer may have against DFS.

11.  CALCULATION OF CHARGES. Dealer will pay finance charges to DFS on the
     outstanding principal debt which Dealer owes DFS for each item of
     Collateral financed by DFS at the rate(s) shown on the Statement of
     Transaction identifying such Collateral, unless Dealer objects thereto as
     provided in Section 2. The finance charges attributable to the rate shown
     on the Statement of Transaction will: (a) be computed based on a 360 day
     year; (b) be calculated by multiplying the Daily Charge (as defined below)
     by the actual number of days in the applicable billing period; and (c)
     accrue from the invoice date of the Collateral identified on such Statement
     of Transaction until DFS receives full payment in good funds of the
     principal debt Dealer owes DFS for each item of such Collateral in
     accordance with DFS' payment recognition policy and DFS applies such
     payment to Dealer's principal debt in accordance with the terms of this
     Agreement. The "Daily Charge" is the product of the Daily Rate (as defined
     below) multiplied by the Average Daily Balance (as defined below). The
     "Daily Rate" is the quotient of the annual rate shown on the Statement of
     Transaction divided by 360, or the monthly rate shown on the Statement of
     Transaction divided by 30. The "Average Daily Balance" is the quotient of
     (i) the sum of the outstanding principal debt owed DFS on each day of a
     billing period for each item of Collateral identified on a Statement of
     Transaction, divided by (ii) the actual number of days in such billing
     period. Dealer will also pay DFS $100 for each check returned unpaid for
     insufficient funds (an "NSF check") (such $100 payment repays DFS'
     estimated administrative costs; it does not waive the default caused by the
     NSF check). The annual percentage rate of the finance charges relating to
     any item of Collateral financed by DFS will be calculated from the invoice
     date of such Collateral, regardless of any period during which any finance
     charge subsidy shall be paid or payable by any third party. Dealer
     acknowledges that DFS intends to strictly conform to the applicable usury
     laws governing this Agreement. Regardless of any provision contained herein
     or in any other document executed or delivered in connection herewith or
     therewith, DFS shall never be deemed to have contracted for, charged or be
     entitled to receive, collect or apply as interest on this Agreement
     (whether termed interest herein or deemed to be interest by judicial
     determination or operation of law), any amount in excess of the maximum
     amount allowed by applicable law, and, if DFS ever receives, collects or
     applies as interest any such excess, such amount which would be excessive
     interest will be applied first to the reduction of the unpaid principal
     balances of advances under this Agreement, and, second, any remaining
     excess will be paid to Dealer. In determining whether or not the interest
     paid or payable under any specific contingency exceeds the highest lawful
     rate, Dealer and DFS shall, to the maximum extent permitted under
     applicable law: (A) characterize any non-principal payment (other than
     payments which are expressly designated as interest payments hereunder) as
     an expense or fee rather than as interest; (B) exclude voluntary
     pre-payments and the effect thereof; and (C) spread the total amount of
     interest throughout the entire term of this Agreement so that the interest
     rate is uniform throughout such term.

12.  BILLING STATEMENT. DFS will send Dealer a monthly billing statement
     identifying all charges due on Dealer's account with DFS. The charges
     specified on each billing statement will be: (a) due and payable in full
     immediately on receipt; and (b) an account stated, unless DFS receives
     Dealer's written objection thereto within seven (7) days after it is mailed
     to Dealer. If DFS does not receive, by the 25th day of any given month,
     payment of all charges accrued to Dealer's account with DFS

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<PAGE>   7

     during the immediately preceding month, Dealer will (to the extent allowed
     by law) pay DFS a late fee ("Late Fee") equal to the greater of $5 or 5%
     of the amount of such finance charges (payment of the Late Fee does not
     waive the default caused by the late payment). DFS may adjust the billing
     statement at any time to conform to applicable law and this Agreement.

13.  DEFAULT. Dealer will be in default under this Agreement if: (a) Dealer
     breaches any terms, warranties or representations contained herein, in any
     Statement of Transaction to which Dealer has not objected as provided in
     Section 2, or in any other agreement between DFS and Dealer; (b) any
     guarantor of Dealer's debts to DFS breaches any terms, warranties or
     representations contained in any guaranty or other agreement between the
     guarantor and DFS; (c) any representation, statement, report or certificate
     made or delivered by Dealer or any guarantor to DFS is not accurate when
     made; (d) Dealer fails to pay any portion of Dealer's debts to DFS when due
     and payable hereunder or under any other agreement between DFS and Dealer;
     (e) Dealer abandons any Collateral; (f) Dealer or any guarantor is or
     becomes in default in the payment of any debt owed to any third party in
     excess of $500,000, and such default remains unwaived or uncured beyond any
     applicable cure period; (g) a money judgment issues against Dealer or any
     guarantor in excess of $500,000 and Dealer neither pays nor settles such
     judgment within thirty (30) days of its issuance; (h) an attachment, sale
     or seizure is executed against any assets of Dealer arising from a claim
     against Dealer in excess of $500,000; (i) any guarantor dies; (k) Dealer or
     any guarantor shall cease existence as a corporation, partnership, limited
     liability company or trust, as applicable; (l) Dealer or any guarantor
     ceases or suspends business; (m) Dealer or any guarantor makes a general
     assignment for the benefit of creditors; (n) Dealer or any guarantor
     becomes insolvent or voluntarily or involuntarily becomes subject to the
     Federal Bankruptcy Code, any state insolvency law or any similar law; (o)
     any receiver is appointed for any assets of Dealer or any guarantor; (p)
     any guaranty of Dealer's debts to DFS is terminated; (q) Dealer or any
     guarantor misrepresents Dealer's or such guarantor's financial condition or
     organizational structure; (r) there shall occur a material adverse change
     in the financial or other condition or business prospects of Dealer or any
     guarantor; or (s) DFS determines in good faith that it is insecure with
     respect to any of the Collateral or the payment of any part of Dealer's
     obligation to DFS.

14.  RIGHTS OF DFS UPON DEFAULT. In the event of a default:

    (a) DFS may at any time at DFS' election, without notice or demand to
        Dealer, do any one or more of the following: declare all or any part of
        the debt Dealer owes DFS immediately due and payable, together with all
        costs and expenses of DFS' collection activity, including, without
        limitation, all reasonable attorneys' fees; exercise any or all rights
        under applicable law (including, without limitation, the right to
        possess, transfer and dispose of the Collateral); and/or cease extending
        any additional credit to Dealer (DFS' right to cease extending credit
        shall not be construed to limit the discretionary nature of this credit
        facility).

    (b) Dealer will segregate and keep the Collateral in trust for DFS, and in
        good order and repair, and will not sell, rent, lease, consign,
        otherwise dispose of or use any Collateral, nor further encumber any
        Collateral.

    (c) Upon DFS' oral or written demand, Dealer will immediately deliver the
        Collateral to DFS, in good order and repair, at a place specified by
        DFS, together with all related documents; or DFS may, in DFS' sole
        discretion and without notice or demand to Dealer, take immediate
        possession of the Collateral together with all related documents.

    (d) DFS may, without notice, apply a default finance charge to Dealer's
        outstanding principal indebtedness equal to the default rate specified
        in Dealer's financing program with DFS, if any, or if there is none so
        specified, at the lesser of 3% per annum above the rate in effect
        immediately prior to the default, or the highest lawful contract rate of
        interest permitted under applicable law.

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<PAGE>   8

        All of DFS' rights and remedies are cumulative. DFS' failure to exercise
        any of DFS' rights or remedies hereunder will not waive any of DFS'
        rights or remedies as to any past, current or future default.

15.  SALE OF COLLATERAL. Dealer agrees that if DFS conducts a private sale of
     any Collateral by requesting bids from 10 or more dealers or distributors
     in that type of Collateral, any sale by DFS of such Collateral in bulk or
     in parcels within 120 days of: (a) DFS' taking possession and control of
     such Collateral; or (b) when DFS is otherwise authorized to sell such
     Collateral; whichever occurs last, to the bidder submitting the highest
     cash bid therefor, is a commercially reasonable sale of such Collateral
     under the Uniform Commercial Code. Dealer agrees that the purchase of any
     Collateral by a Vendor, as provided in any agreement between DFS and the
     Vendor, is a commercially reasonable disposition and private sale of such
     Collateral under the Uniform Commercial Code, and no request for bids shall
     be required. Dealer further agrees that 7 or more days prior written notice
     will be commercially reasonable notice of any public or private sale
     (including any sale to a Vendor). Dealer irrevocably waives any requirement
     that DFS retain possession and not dispose of any Collateral until after an
     arbitration hearing, arbitration award, confirmation, trial or final
     judgment. If DFS disposes of any such Collateral other than as herein
     contemplated, the commercial reasonableness of such disposition will be
     determined in accordance with the laws of the state governing this
     Agreement.

16.  POWER OF ATTORNEY. Dealer grants DFS an irrevocable power of attorney to:
     execute or endorse on Dealer's behalf any checks, financing statements,
     instruments, Certificates of Title and Statements of Origin pertaining to
     the Collateral; supply any omitted information and correct errors in any
     documents between DFS and Dealer; initiate and settle any insurance claim
     pertaining to the Collateral; and do anything to preserve and protect the
     Collateral and DFS' rights and interest therein; provided, however, that
     DFS may not exercise its power of attorney until it has provided Dealer
     with notice of default and an opportunity to cure said default of at least
     five (5) days. In the event such power of attorney is utilized by DFS, DFS
     will promptly notify Dealer and provide Dealer with true and correct copies
     of any and all documents executed by DFS pursuant thereto.

17.  INFORMATION. DFS may provide to any third party any credit, financial or
     other information on Dealer that DFS may from time to time possess. DFS may
     obtain from any Vendor any credit, financial or other information regarding
     Dealer that such Vendor may from time to time possess.

18.  TERMINATION. Either party may terminate this Agreement at any time by
     written notice received by the other party. If DFS terminates this
     Agreement, Dealer agrees that if Dealer. (a) is not in default hereunder,
     30 days prior notice of termination is reasonable and sufficient (although
     this provision shall not be construed to mean that shorter periods may not,
     in particular circumstances, also be reasonable and sufficient); or (b) is
     in default hereunder, no prior notice of termination is required. Dealer
     will not be relieved from any obligation to DFS arising out of DFS'
     advances or commitments made before the effective termination date of this
     Agreement. DFS will retain all of its rights, interests and remedies
     hereunder until Dealer has paid all of Dealer's debts to DFS. All waivers
     set forth within this Agreement will survive any termination of this
     Agreement.

19.  BINDING EFFECT. Dealer cannot assign its interest in this Agreement without
     DFS' prior written consent, although DFS may assign or participate DFS'
     interest, in whole or in part, without Dealer's consent. This Agreement
     will protect and bind DFS' and Dealer's respective heirs, representatives,
     successors and assigns.

20.  NOTICES. Except as otherwise stated herein, all notices, arbitration
     claims, responses, requests and documents will be sufficiently given or
     served if mailed or delivered: (a) to Dealer at Dealer's principal place of
     business specified above; and (b) to DFS at 655 Maryville Centre Drive, St.

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<PAGE>   9

     Louis, Missouri 63141-5832, Attention: General Counsel, or such other
     address as the parties may hereafter specify in writing.

21.  NO ORAL AGREEMENTS. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND
     CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES
     TO EXTEND OR RENEW SUCH DEBTS ARE NOT ENFORCEABLE. TO PROTECT DEALER AND
     DFS FROM MISUNDERSTANDING OR DISAPPOINTMENT, ALL AGREEMENTS COVERING SUCH
     MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
     STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES, EXCEPT AS SPECIFICALLY
     PROVIDED HEREIN OR AS THE PARTIES MAY LATER AGREE IN WRITING TO MODIFY IT.
     THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

22.  OTHER WAIVERS. Dealer irrevocably waives notice of: DFS' acceptance of this
     Agreement, presentment, demand, protest, nonpayment, nonperformance, and
     dishonor. Dealer and DFS irrevocably waive all rights to claim any punitive
     and/or exemplary damages.

23.  SEVERABILITY. If any provision of this Agreement or its application is
     invalid or unenforceable, the remainder of this Agreement will not be
     impaired or affected and will remain binding and enforceable.

24.  SUPPLEMENT. If Dealer and DFS have heretofore executed other agreements in
     connection with all or any part of the Collateral, this Agreement shall
     supplement each and every other agreement previously executed by and
     between Dealer and DFS, and in that event this Agreement shall neither be
     deemed a novation nor a termination of such previously executed agreement
     nor shall execution of this Agreement be deemed a satisfaction of any
     obligation secured by such previously executed agreement.

25.  RECEIPT OF AGREEMENT. Dealer acknowledges that it has received a true and
     complete copy of this Agreement. Dealer acknowledges that it has read and
     understood this Agreement. Notwithstanding anything herein to the contrary:
     (a) DFS may rely on any facsimile copy, electronic data transmission or
     electronic data storage of this Agreement, any Statement of Transaction,
     billing statement, invoice from a Vendor, financial statements or other
     reports, and (b) such facsimile copy, electronic data transmission or
     electronic data storage will be deemed an original, and the best evidence
     thereof for all purposes, including, without limitation, under this
     Agreement or any other agreement between DFS and Dealer, and for all
     evidentiary purposes before any arbitrator, court or other adjudicatory
     authority.

26.  MISCELLANEOUS. Time is of the essence regarding Dealer's performance of its
     obligations to DFS notwithstanding any course of dealing or custom on DFS'
     part to grant extensions of time. Dealer's liability under this Agreement
     is direct and unconditional and will not be affected by the release or
     nonperfection of any security interest granted hereunder. DFS will have the
     right to refrain from or postpone enforcement of this Agreement or any
     other agreements between DFS and Dealer without prejudice and the failure
     to strictly enforce these agreements will not be construed as having
     created a course of dealing between DFS and Dealer contrary to the specific
     terms of the agreements or as having modified, released or waived the same.
     The express terms of this Agreement will not be modified by any course of
     dealing, usage of trade, or custom of trade which may deviate from the
     terms hereof. If Dealer fails to pay any taxes, fees or other obligations
     which may impair DFS' interest in the Collateral, or fails to keep the
     Collateral insured, DFS may, but shall not be required to, pay such taxes,
     fees or obligations and pay the cost to insure the Collateral, and the
     amounts paid will be: (a) an additional debt owed by Dealer to DFS, which
     shall be subject to finance charges as provided herein; and (b) due and
     payable immediately in full.

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<PAGE>   10

     Dealer agrees to pay all of DFS' reasonable attorneys' fees and expenses
     incurred by DFS in enforcing DFS' rights hereunder. The Section titles
     used in this Agreement are for convenience only and do not define or limit
     the contents of any Section.

27.  BINDING ARBITRATION.

        27.1    ARBITRABLE CLAIMS. Except as otherwise specified below, all
                actions, disputes, claims and controversies under common law,
                statutory law or in equity of any type or nature whatsoever
                (including, without limitation, all torts, whether regarding
                negligence, breach of fiduciary duty, restraint of trade, fraud,
                conversion, duress, interference, wrongful replevin, wrongful
                sequestration, fraud in the inducement, usury or any other tort,
                all contract actions, whether regarding express or implied
                terms, such as implied covenants of good faith, fair dealing,
                and the commercial reasonableness of any Collateral disposition,
                or any other contract claim, all claims of deceptive trade
                practices or lender liability, and all claims questioning the
                reasonableness or lawfulness of any act), whether arising before
                or after the date of this Agreement, and whether directly or
                indirectly relating to: (a) this Agreement and/or any amendments
                and addenda hereto, or the breach, invalidity or termination
                hereof; (b) any previous or subsequent agreement between DFS
                and Dealer; (c) any act committed by DFS or by any parent
                company, subsidiary or affiliated company of DFS (the "DFS
                Companies"), or by any employee, agent, officer or director of a
                DFS Company whether or not arising within the scope and course
                of employment or other contractual representation of the DFS
                Companies provided that such act arises under a relationship,
                transaction or dealing between DFS and Dealer, and/or (d) any
                other relationship, transaction or dealing between DFS and
                Dealer (collectively the "Disputes"), will be subject to and
                resolved by binding arbitration.

        27.2    ADMINISTRATIVE BODY. All arbitration hereunder will be conducted
                in accordance with the Commercial Arbitration Rules of The
                American Arbitration Association ("AAA"). If the AAA is
                dissolved, disbanded or becomes subject to any state or federal
                bankruptcy or insolvency proceeding, the parties will remain
                subject to binding arbitration which will be conducted by a
                mutually agreeable arbitral forum. The parties agree that all
                arbitrator(s) selected will be attorneys with at least five (5)
                years secured transactions experience. The arbitrator(s) will
                decide if any inconsistency exists between the rules of any
                applicable arbitral forum and the arbitration provisions
                contained herein. If such inconsistency exists, the arbitration
                provisions contained herein will control and supersede such
                rules. The site of all arbitration proceedings will be in the
                Division of the Federal Judicial District in which AAA maintains
                a regional office that is closest to Dealer.

        27.3    Discovery. Discovery permitted in any arbitration proceeding
                commenced hereunder is limited as follows. No later than thirty
                (30) days after the fling of a claim for arbitration, the
                parties will exchange detailed statements setting forth the
                facts supporting the claim(s) and all defenses to be raised
                during the arbitration, and a list of all exhibits and
                witnesses. No later than twenty-one (21) days prior to the
                arbitration hearing, the parties will exchange a final list of
                all exhibits and all witnesses, including any designation of any
                expert witness(es) together with a summary of their testimony; a
                copy of all documents and a detailed description of any property
                to be introduced at the hearing. Under no circumstances will the
                use of interrogatories, requests for admission, requests for the
                production of documents or the taking of depositions be
                permitted. However, in the event of the designation of any
                expert witness(es), the following will occur: (a) all
                information and documents relied upon by the expert witness(es)
                will be delivered to the opposing party, (b) the opposing party
                will be permitted to depose the expert witness(es), (c) the
                opposing party will be permitted to designate rebuttal expert
                witness(es), and (d) the arbitration hearing will be continued
                to the earliest possible date that enables the foregoing limited
                discovery to be accomplished.

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<PAGE>   11

        27.4    EXEMPLARY OR PUNITIVE DAMAGES. The Arbitrator(s) will not have
                the authority to award exemplary or punitive damages.

        27.5    CONFIDENTIALITY OF AWARDS. All arbitration proceedings,
                including testimony or evidence at hearings, will be kept
                confidential, although any award or order rendered by the
                arbitrator(s) pursuant to the terms of this Agreement may be
                entered as a judgment or order in any state or federal court and
                may be confirmed within the federal judicial district which
                includes the residence of the party against whom such award or
                order was entered. This Agreement concerns transactions
                involving commerce among the several states. The Federal
                Arbitration Act, Title 9 U.S.C. Sections 1 et seq., as amended
                ("FAA") will govern all arbitration(s) and confirmation
                proceedings hereunder.

        27.6    PREJUDGMENT AND PROVISIONAL REMEDIES. Nothing herein will be
                construed to prevent DFS' or Dealer's use of bankruptcy,
                receivership, injunction, repossession, replevin, claim and
                delivery, sequestration, seizure, attachment, foreclosure,
                dation and/or any other prejudgment or provisional action or
                remedy relating to any Collateral for any current or future debt
                owed by either party to the other. Any such action or remedy
                will not waive DFS' or Dealer's right to compel arbitration of
                any Dispute.

        27.7    ATTORNEYS' FEES. If either Dealer or DFS brings any other action
                for judicial relief with respect to any Dispute (other than
                those set forth in Section 27.6), the party bringing such action
                will be liable for and immediately pay all of the other party's
                costs and expenses (including attorneys' fees) incurred to stay
                or dismiss such action and remove or refer such Dispute to
                arbitration. If either Dealer or DFS brings or appeals an action
                to vacate or modify an arbitration award and such party does not
                prevail, such party will pay all costs and expenses, including
                attorneys' fees, incurred by the other party in defending such
                action. Additionally, if Dealer sues DFS or institutes any
                arbitration claim or counterclaim against DFS in which DFS is
                the prevailing party, Dealer will pay all costs and expenses
                (including attorneys' fees) incurred by DFS in the course of
                defending such action or proceeding.

        27.8    LIMITATIONS. Any arbitration proceeding must be instituted: (a)
                with respect to any Dispute for the collection of any debt owed
                by either party to the other, within two (2) years after the
                date the last payment was received by the instituting party; and
                (b) with respect to any other Dispute, within two (2) years
                after the date the incident giving rise thereto occurred,
                whether or not any damage was sustained or capable of
                ascertainment or either party knew of such incident. Failure to
                institute an arbitration proceeding within such period will
                constitute an absolute bar and waiver to the institution of any
                proceeding, whether arbitration or a court proceeding, with
                respect to such Dispute.

        27.9    SURVIVAL AFTER TERMINATION. The agreement to arbitrate will
                survive the termination of this Agreement.

28.  INVALIDITY/UNENFORCEABILITY OF BINDING ARBITRATION. IF THIS AGREEMENT IS
     FOUND TO BE NOT SUBJECT TO ARBITRATION, ANY LEGAL PROCEEDING WITH RESPECT
     TO ANY DISPUTE WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A
     JUDGE WITHOUT A JURY. DEALER AND DFS WAIVE ANY RIGHT TO A JURY TRIAL IN ANY
     SUCH PROCEEDING.

29.  GOVERNING LAW. Dealer acknowledges and agrees that this and all other
     agreements between Dealer and DFS have been substantially negotiated, and
     will be substantially performed, in the state of Missouri. Accordingly,
     Dealer agrees that all Disputes will be governed by, and construed in
     accordance with, the laws of such state, except to the extent inconsistent
     with the provisions of the FAA which shall control and govern all
     arbitration proceedings hereunder,

    IN WITNESS WHEREOF. Dealer and DFS have executed this Agreement as of the
date first set forth hereinabove.

                                       11
<PAGE>   12

THIS CONTRACT CONTAINS BINDING ARBITRATION, JURY WAIVER AND PUNITIVE DAMAGE
WAIVER PROVISIONS.

DEUTSCHE FINANCIAL SERVICES              BELL INDUSTRIES, INC.
CORPORATION

BY: /s/ MICHELLE WOOCK                   BY: /s/ RUSSELL A. DOLL
    -------------------------                -----------------------------------

Print Name: Michelle Woock               Print Name: RUSSELL A. DOLL
            -----------------                        ---------------------------

Title: VP Operations                     Title: SVP-CHIEF FINANCIAL OFFICER
       ----------------------                   --------------------------------

                                         ATTEST:

                                         /s/ JANET SIMMONS
                                         ---------------------------------------
                                                  (Assistant) Secretary

                                         Print Name: Janet Simmons
                                                     ---------------------------

                                       12
<PAGE>   13

                      SECRETARY'S CERTIFICATE OF RESOLUTION

    I certify that I am the Secretary or Assistant Secretary of the corporation
named below, and that the following completely and accurately sets forth certain
resolutions of the Board of Directors of the corporation adopted at a special
meeting thereof held on due notice (and with shareholder approval, if required
by law), at which meeting there was present a quorum authorized to transact the
business described below, and that the proceedings of the meeting were in
accordance with the certificate of incorporation, charter and by-laws of the
corporation, and that they have not been revoked, annulled or amended in any
manner whatsoever.

    Upon motion duly made and seconded, the following resolution was unanimously
adopted after full discussion:

    "RESOLVED, That the several officers, directors, and agents of this
corporation, or any one or more of them, are hereby authorized and empowered on
behalf of this corporation: to obtain financing from Deutsche Financial Services
Corporation ("DFS") in such amounts and on such terms as such officers,
directors or agents deem proper; to enter into financing, security, pledge and
other agreements with DFS relating to the terms upon which such financing may be
obtained and security and/or other credit support is to be furnished by this
corporation therefor; from time to time to supplement or amend any such
agreements; and from time to time to pledge, assign, mortgage, grant security
interests, and otherwise transfer, to DFS as collateral security for any
obligations of this corporation to DFS, whenever and however arising, any assets
of this corporation, whether now owned or hereafter acquired; the Board of
Directors hereby ratifying, approving and confirming all that any of said
officers, directors or agents have done or may do with respect to the
foregoing."

    IN WITNESS WHEREOF, I have executed and affixed the seal of the corporation
on the date stated below.

Dated: 5/11, 2001

                                          /s/ Janet Simmons
                                         ---------------------------------------
                                                  (Assistant) Secretary

                                         BELL INDUSTRIES, INC.

             (SEAL)

                                       13

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