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                                  EXHIBIT 10(u)

                             [LETTERHEAD OF KEYBANK]

April 1, 2003

Mr. Michael R. Sayre
Executive Vice President
Corporate Strategy and Finance
Pinnacle Data Systems, Inc.
6600 Port Rd.
Groveport, OH 43125

Dear Mike:

We are pleased to confirm the renewal by KeyBank National Association ("Bank")
of the following Facility on behalf of Pinnacle Data Systems, Inc. ("Borrower").
This Facility shall be subject to the continued satisfactory financial condition
of Borrower and to the following terms and conditions:

BORROWER:                  PINNACLE DATA SYSTEMS, INC.

FACILITY:                  $4,000,000.00 LINE OF CREDIT

PURPOSE:                   To provide working capital as needed.

INTEREST RATE:             The interest rate on the Facility will be at the rate
                           per annum equal to the Prime Rate plus twenty five
                           basis points which interest rate will be
                           correspondingly and immediately adjusted with each
                           change in the Prime Rate.

                           The term "Prime Rate" means that rate established
                           from time to time by the Bank as the Bank's Prime
                           Rate, whether or not such rate is publicly announced.
                           The Prime Rate may not be the lowest interest rate
                           charged by the Bank for commercial or other
                           extensions of credit.

                           Interest hereon shall be calculated on a 360-day year
                           and the actual days elapsed.

                           Prime Rate is currently 4.25% and your effective rate
                           as of 04/01/2003 would be 4.50%.

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TERM/REPAYMENT:            Interest payable monthly, principal on demand. To be
                           reviewed for renewal on or before May 15, 2004 after
                           receipt of fiscal year end financial statements.

COLLATERAL:                Blanket lien on all business assets of the Borrower;
                           specifically, all inventory, chattel paper, accounts,
                           equipment and general intangibles.

FEES:                      $1,500.00 Renewal Fee

BORROWING BASE:            Aggregate advances for this facility are subject to a
                           monthly borrowing base which limits availability as
                           follows: 85% of Eligible Account Receivable less than
                           90 days plus 50% of Eligible Inventory. The portion
                           of the borrowing base calculated on Eligible
                           Inventory shall be capped at $2,000,000.

DOCUMENTATION:             This Facility shall be conditioned upon the execution
                           of such documentation in a form and content
                           acceptable to Bank and it's counsel.

EXPENSES:                  Borrowers agree to pay all reasonable loan expenses
                           including, but not limited to, fees of the Bank's
                           counsel, recording fees and taxes, and all other
                           expenses in connection with the preparation, closing
                           and disbursement of this loan. To the extent
                           incurred, Borrower shall pay the foregoing expenses
                           whether or not the loan shall close or be funded.

                           Salient covenants in the Loan Agreement will include,
                           but not be limited to, the following:

                           a) Financial statements to be provided as follows:

                               1)  Receipt of quarterly internal financial
                                    statements for Borrower within 60 days of
                                    each quarter-end.

                               2)  Receipt of annual Audited CPA financial
                                    statements, in accordance to GAAP, for
                                    Borrower within 120 days of FYE.

                               3)  Receipt of monthly borrowing base certificate
                                    for Borrower within 20 days of each
                                    month-end.

                               4)  Receipt of monthly accounts receivable aging
                                    report for Borrower, in conjunction with the
                                    borrowing base certificate, within 20 days
                                    of month-end.

                               5)  Such other information as the Bank may
                                    reasonably request.

                           b) Financial covenants for Borrower, to include the
                           following:

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                                1)  Borrower shall not (a) create, incur or
                                    assume indebtedness for borrowed money,
                                    including capital leases, or (b) transfer,
                                    mortgage, assign, lease, grant a security
                                    interest in, or encumber, any assets.

                                2)  Borrower shall not (a) merge, transfer,
                                    acquire or consolidate with any other
                                    entity, change ownership, or transfer or
                                    sell any Collateral out of the normal course
                                    of business, (b) pay any dividends or (c)
                                    purchase or retire any outstanding shares.

                                3)  Borrower shall not (a) loan, invest in or
                                    advance any money or assets, (b) purchase,
                                    create or acquire any other enterprise or
                                    entity, or (c) incur any obligation as
                                    surety or guarantor other than in the
                                    ordinary course of business.

                                4)  Borrower shall maintain a Total Debt to
                                    Tangible Net Worth of less than or equal to
                                    2.00 to 1.00 which shall be tested on a
                                    quarterly basis. "Total Debt" means all of
                                    Borrower's liabilities including
                                    Subordinated Debt. "Subordinated Debt" means
                                    indebtedness and liabilities of Borrower
                                    that have. been subordinated by written
                                    agreement to indebtedness owed by Borrower
                                    to Lender in form and substance acceptable
                                    to Lender. "Tangible Net Worth" means
                                    Borrower's total assets excluding all
                                    intangible assets (i.e., goodwill,
                                    trademarks, patents, copyrights,
                                    organizational expenses, and similar
                                    intangible items, but including leaseholds
                                    and leasehold improvements) less Total Debt.

                                5)  Borrower shall maintain an Operating Cash
                                    Flow to Total Fixed Charge Ratio of not less
                                    than 1.20 to 1.00 beginning 03/30/2003 and
                                    thereafter; calculated on the most recently
                                    completed (4) fiscal quarters which shall be
                                    tested on a quarterly basis. "Operating Cash
                                    Flow" shall mean net income after taxes and
                                    exclusive of extraordinary gains and losses,
                                    gains on sale of fixed assets, and other
                                    income; plus depreciation, amortization,
                                    interest expense, and lease expense; less
                                    dividend and distributions. "Total Fixed
                                    Charges" shall mean the sum of interest
                                    expense, current maturities of long-term
                                    debt, current maturities of capital leases,
                                    lease expenses, preferred stock dividends
                                    and Capital Expenditures (all calculated for
                                    the preceding twelve-month period). "Capital
                                    Expenditures" shall mean net fixed assets at
                                    the beginning of the period less net fixed
                                    assets at the end of the period plus
                                    depreciation expense for the period.

DEPOSITORY

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 RELATIONSHIP:             Borrower shall maintain its primary operating
                           account, to include cash management services, with
                           Bank.

We are pleased to renew the above Facility on behalf of your company and look
forward to a long and mutually beneficial relationship. Should you find the
above terms and conditions acceptable, please sign the enclosed copy of this
letter and return it to me. The deadline to accept this commitment will be April
18, 2003.

Sincerely,
/s/ Roger
Roger D. Campbell
Senior Vice President
KeyBank National Association

Acceptance:

BORROWER:

Pinnacle Data Systems, Inc.

By: /s/ Michael R. Sayre
    --------------------
      Michael R. Sayre, Executive Vice President