FUNDING AGREEMENT

     AGREEMENT,  made as of December 16, 1999, by and between SYCONET.COM,  INC.
("SYCD"),  a Delaware  corporation having its principal offices at 9208A Venture
Court,  Manassas Park,  Virginia 20111, and ALLIANCE  EQUITIES,  INC., a Florida
corporation having its principal offices at 12147 N.W. 9th Drive, Coral Springs,
Florida 33071, ("Alliance").

     WHEREAS,  SYCD is desirous of receiving short term financing,  and Alliance
is willing and able to provide such  financing,  on the terms and conditions set
forth below:

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

     1. Financing Commitment. Alliance agrees to provide to SYCD an aggregate of
$2,000,000.00  in  loans  (the  "Loans"),  each  loan  to be an  unsecured  SYCD
obligation  bearing interest at an annual rate of 12% per annum and repayable by
SYCD by SYCD issuing to Alliance that number of shares of SYCD common stock (the
"Shares")  registered  under  the  Securities  Act  of  1933,  as  amended  (the
"Securities Act"), equal to principal plus interest accrued to the payment date,
each share to be valued at the lower of $0.98 or the  average of the closing bid
price of SYCD's  common  stock as reported on YAHOO for the 20 days prior to the
declaration by the Securities


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and Exchange Commission of the effectiveness of the SYCD Registration  Statement
on Form SB-2 (the "SB-2")  registering  under the  Securities Act the Shares and
the 600,000 warrants described in Section 3 below.

     2. Loan Schedule. Alliance shall make the Loans to SYCD by making a loan to
SYCD of $500,000.00 principal amount on each of the following four dates:

          a.   the  date  on  which  SYCD  files  with  the  SEC a  Registration
               Statement on Form 10;

          b.   the date on which the SEC declares effective SYCD's SB-2;

          C.   60 days following the effectiveness of the SB-2; and

          d.   120 days following the effectiveness of the SB-2.

     3.  Inducement  Fee.  SYCD  agrees  that upon the  closing  of the  initial
$500,000.00  Loan (a) SYCD will  issue to  Alliance  warrants  (the  "Warrants")
entitling Alliance to purchase 600,000 shares of SYCD common stock of a price of
$.01 per share for five years,  and (b) SYCD will pay to Alliance in cash a Loan
administration  fee of $30,000.00.  SYCD agrees to register under the Securities
Act and  include  in the SB-2 the  shares of SYCD  common  stock  issuable  upon
exercise of the Warrants.


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     4.  Amendment;  Breach and  Waiver.  This  Agreement  may not be amended or
modified  in any  manner,  except by an  instrument  in  writing  signed by both
parties hereto. The failure of either party hereto to enforce at any time any of
the provisions of this Agreement  shall in no way be construed to be a waiver of
any such  provision  or any  other  provision,  or of the  right  of such  party
thereafter  to enforce each and every such  provision or other  provision in the
event of a subsequent breach.

     5. Agreement  Binding Upon  Successors.  This Agreement  shall inure to the
benefit of and shall be binding upon SYCD, its successors and assigns,  and upon
Alliance and its successors and assigns.

     6.  Counterparts.  This Agreement may be executed in several  counterparts,
each of which  shall be  deemed an  original  but both of which  together  shall
constitute one and the same instrument.

     7.  Choice  of Law and  Forum.  This  Agreement  shall be  governed  by and
construed in accordance with the laws of the State of New York, exclusive of its
choice-of-law   principles.   Each  party  hereby  irrevocably  submits  to  the
jurisdiction of any state or Federal court sitting in New York County,  New York
in any action or proceeding  arising out of or relating to this  Agreement,  and
each party hereby irrevocably waives the defenses of improper venue or


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an  inconvenient  forum for the  maintenance of any such action or proceeding to
the fullest extent permitted by law.

     8. Section Headings.  Section headings  contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

     9.  Entire  Agreement.  This  Agreement  constitutes  the entire  agreement
between the parties hereto with respect to the subject matter hereof,  and there
are  no  agreements,   undertakings,   restrictions,   warranties,  promises  or
representations  between the parties with respect to the subject  matter  hereof
other than those set forth herein.

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

                                         SYCONET.COM, INC.


                                         By: /s/ Sy Robert Picon
                                             ---------------------------
                                             Sy Robert Picon, Chairman


                                         ALLIANCE EQUITIES, INC.


                                         By:  /s/ Richard Epstein
                                              --------------------------

                                              Richard Epstein
                                         -------------------------------
                                               (Print Name)

                                                President
                                         -------------------------------
                                                 (Title)


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