Document:

GUARANTY OF ALL LIABILITY
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          THIS GUARANTY,  is  entered  into  as  of  October  30,  2000  by  the
undersigned  (the  "Guarantor"),  in favor of and for the  benefit  of  EUROPEAN
AMERICAN BANK, a New York banking corporation (the "Bank").

                              RECITALS
          The  Bank has made and may make, from time to time,  loans,  advances,
extensions of credit and/or other financial  accommodations  (collectively,  the
"Loans") for the account of Gilman & Ciocia, Inc. (the "Borrower").

          The  Guarantor,  being affiliated with the Borrower,  acknowledges and
agrees that the  Guarantor  has received  and will  receive  direct and indirect
benefits from the extension of the Loans made to the Borrower from time to time.

          The  Guarantor  wishes to grant the Bank  security  and  assurance  in
order to secure  the  payment  and  performance  by the  Borrower  of all of its
present and future  Obligations  (as that term is defined  below),  and, to that
effect, to guaranty the Borrower's Obligations as set forth herein.

          Accordingly, the Guarantor hereby agrees as follows:

          1.      Guaranty.
                  --------
          The  Guarantor hereby  unconditionally  and irrevocably  guarantees to
the Bank the full and punctual payment by the Borrower, when due, whether at the
stated due date, by  acceleration  or otherwise of all  Obligations  (as defined
below) of the Borrower,  howsoever created,  arising or evidenced,  voluntary or
involuntary, whether direct or indirect, absolute or contingent now or hereafter
existing or owing to the Bank,  (collectively,  the  "Guaranteed  Obligations").
This Guaranty is an absolute, unconditional,  continuing guaranty of payment and
not  of  collection  of  the  Guaranteed  Obligations  and  includes  Guaranteed
Obligations  arising from  successive  transactions  which shall either continue
such  Guaranteed  Obligations  or  from  time  to  time  renew  such  Guaranteed
Obligations  after  the same  has been  satisfied.  This  Guaranty  is in no way
conditioned  upon any  attempt to collect  from the  Borrower  or upon any other
event or  contingency,  and shall be binding  upon and  enforceable  against the
Guarantor  without  regard to the validity or  enforceability  of any  document,
instrument or agreement  evidencing or governing  the  Obligations  or any other
agreement or instrument  executed in connection  therewith  (including,  without
limitation, this Guaranty) or contemplated thereby (each, a "Loan Document" and,
collectively,  the "Loan Documents").  If for any reason the Borrower shall fail
or be  unable  duly  and  punctually  to pay any of the  Guaranteed  Obligations
(including,  without  limitation,  amounts  that  would  become  due but for the
operation of the automatic stay under Section 362(a) of the Bankruptcy  Code, 11
U.S.C. 362(a)), the Guarantor will forthwith pay the same, in cash,  immediately
upon  demand.  As  used  herein   "Obligations"   shall  mean  all  obligations,
liabilities and  indebtedness of the Borrower to the Bank,  whether now existing
or hereafter created,  absolute or contingent,  direct or indirect,  due or not,
whether  created  directly or acquired by assignment  or  otherwise,  including,
without  limitation,  the Loan and the  payment  and  performance  of all  other
obligations, liabilities, and indebtedness of the Borrower to the Bank under the
Loan  Documents,  including  without  limitation all fees,  costs,  expenses and
indemnity obligations thereunder.

          In   the event any Loan  Document  shall be  terminated as a result of
the  rejection  thereof by any  trustee,  receiver or  liquidating  agent of the
Borrower or any of its properties in any bankruptcy, insolvency, reorganization,
arrangement,  composition,  readjustment,  liquidation,  dissolution  or similar
proceeding,  the  Guarantor's  obligations  hereunder shall continue to the same
extent as if such Loan Document had not been so rejected.

          The  Guarantor agrees to pay all costs,  expenses (including,  without
limitation,   attorneys'  fees  and   disbursements)  and  damages  incurred  in
connection with the enforcement of the Guaranteed Obligations of the Borrower to
the extent that such costs,  expenses  and damages are not paid by the  Borrower
pursuant to the respective Loan Documents.

          The  Guarantor further agrees that if any payment made by the Borrower
or the  Guarantor  to  the  Bank  on any  Guaranteed  Obligation  is  rescinded,
recovered  from or repaid by the Bank, in whole or in part,  in any  bankruptcy,
insolvency  or similar  proceeding  instituted  by or against  the  Borrower  or
Guarantor,  this  Guaranty  shall  continue  to  be  fully  applicable  to  such
Guaranteed  Obligation  to the same extent as though the payment so recovered or
repaid had never originally been made on such Guaranteed  Obligation  regardless
of, and,  without giving effect to, any discharge or release of the  Guarantor's
obligations hereunder granted by the Bank after the date hereof.

         2.       Guaranty Continuing, Absolute, Unlimited.
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          The  obligations  of the  Guarantor  hereunder  shall  be  continuing,
absolute, unlimited and unconditional, shall not be subject to any counterclaim,
setoff, deduction or defense based upon any claim the Guarantor may have against
the Bank or the Borrower or any other person, and shall remain in full force and
effect  without  regard to, and, to the fullest  extent  permitted by applicable
law,  shall  not  be  released,  discharged  or in  any  way  affected  by,  any
circumstance or condition (whether or not any Guarantor shall have any knowledge
or notice  thereof)  whatsoever  which  might  constitute  a legal or  equitable
discharge or defense  including,  but not limited to, (a) any express or implied
amendment,  modification  or  supplement  to any  Loan  Document  or  any  other
agreement  referred to in any Loan Document;  (b) any failure on the part of the
Borrower  to perform or comply  with any Loan  Document,  or any  failure of any
other  person to perform or comply with any term of any Loan  Document;  (c) any
waiver, consent, change, extension,  indulgence or other action or any action or
inaction  under or in respect of any Loan  Document  or any other  agreement  as
aforesaid,  whether or not the Bank, the Borrower or the Guarantor has notice or
knowledge   of  any  of  the   foregoing;   (d)  any   bankruptcy,   insolvency,
reorganization,  arrangement, readjustment,  composition, liquidation or similar
proceeding with respect to the Borrower, or its properties or its creditors,  or
any  action  taken  by any  trustee  or  receiver  or by any  court  in any such
proceeding;  (e) any  furnishing or  acceptance  of  additional  security or any
release of any security;  (f) any  limitation on the liability or obligations of
the  Borrower  under  any  Loan  Document  or  any  termination,   cancellation,
frustration,  invalidity or  unenforceability,  in whole or in part, of any Loan
Document; (g) any lien, charge or encumbrance on or affecting the Guarantor's or
any of the Borrower's respective assets and properties; (h) any act, omission or
breach on the part of the Bank under any Loan Document or any other agreement at
any time existing  between the Bank and the Borrower or any law or  governmental
regulation  applicable  to the Bank or any  Loan  Document;  (i) any  claim as a
result of any other dealings among the Bank, the Guarantor or the Borrower;  (j)
the assignment of this Guaranty,  any Loan Document to any other person;  or (k)
any change in the name of the Bank,  the  Borrower or any other person or entity
referred to herein.

         3.       Waiver.
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          The  Guarantor  unconditionally and irrevocably waives, to the fullest
extent permitted by applicable law: (a) notice of any of the matters referred to
in Section 2 hereof;  (b) all notices which may be required by statute,  rule of
law or  otherwise  to  preserve  any rights  against  the  Guarantor  hereunder,
including, without limitation, notice of the acceptance of this Guaranty, or the
creation,  renewal,  extension,   modification  or  accrual  of  the  Guaranteed
Obligations or notice of any other matters  relating  thereto,  any presentment,
demand, notice of dishonor,  protest, nonpayment of any damages or other amounts
payable  under  any Loan  Document;  (c) any  requirement  for the  enforcement,
assertion  or  exercise of any right,  remedy,  power or  privilege  under or in
respect  of any Loan  Document,  including,  without  limitation,  diligence  in
collection or protection of or realization  upon the  Guaranteed  Obligations or
any part thereof or any collateral  therefor;  (d) any requirement of diligence;
(e) any  requirement  to mitigate  the damages  resulting  from a default by the
Borrower  under any Loan Document;  (f) the occurrence of every other  condition
precedent to which the Guarantor or the Borrower may otherwise be entitled;  (g)
the right to  require  the Bank to proceed  against  the  Borrower  or any other
person liable on the Guaranteed  Obligations,  to proceed against or exhaust any
security held by the Borrower or any other person, or to pursue any other remedy
in the  Bank's  power  whatsoever,  (h) the  right to have the  property  of the
Borrower  first applied to the discharge of the Guaranteed  Obligations  and any
and all rights it may now or hereafter  have under any agreement or at law or in
equity (including,  without limitation, any law subrogating the Guarantor to the
rights  of  the  Bank)  to  assert  any  claim  against  or  seek  contribution,
indemnification  or any other form of  reimbursement  from the  Borrower  or any
other party liable for payment of any or all of the Guaranteed  Obligations  for
any payment made by the Guarantor  under or in connection  with this Guaranty or
otherwise.

          The  Bank may, at its  election,  exercise  any right or remedy it may
have  against  the  Borrower  without  affecting  or  impairing  in any  way the
liability of the Guarantor  hereunder and the Guarantor  waives,  to the fullest
extent  permitted by  applicable  law,  any defense  arising out of the absence,
impairment or loss of any right of reimbursement, contribution or subrogation or
any  other  right or remedy  of the  Guarantor  against  the  Borrower,  whether
resulting from such election by the Bank or otherwise.  The Guarantor waives any
defense  arising by reason of any disability or other defense of the Borrower or
by reason of the cessation for any cause whatsoever of the liability,  either in
whole or in part, of the Borrower to the Bank for the Guaranteed Obligations.

          The  Guarantor  assumes  the  responsibility  for  being  and  keeping
informed  of  the  financial   condition  of  the  Borrower  and  of  all  other
circumstances bearing upon the risk of nonpayment of the Guaranteed  Obligations
and  agrees  that the Bank shall not have any duty to advise  the  Guarantor  of
information  regarding  any  condition  or  circumstance  or any  change in such
condition or circumstance. The Guarantor acknowledges that the Bank has not made
any  representations to the Guarantor  concerning the financial condition of the
Borrower.

         4.       Representations and Warranties of the Guarantor.
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          The Guarantor hereby represents and warrants that:

          If   not  an  individual,   it  is  a  general  partnership,   limited
partnership,   corporation,  limited  liability  company  or  limited  liability
partnership  (as  indicated on the  signature  page  hereto)  duly  organized or
formed,  as  the  case  may  be,  under  the  laws  of the  jurisdiction  of its
incorporation  or formation and has all  requisite  power and authority to enter
into this Guaranty and to carry out its obligations hereunder.

          The  execution,  delivery  and  performance  of this  Guaranty  by the
Guarantor  have been duly  authorized  by all  necessary  action  (other  than a
Guarantor who is an individual) and this Guaranty  constitutes the legal,  valid
and binding  obligation of the Guarantor,  enforceable  against the Guarantor in
accordance with its terms.

          If   not an  individual,  it has the  power and  authority  to own its
properties and assets and to conduct its business as now being  conducted and is
duly qualified to do business in every  jurisdiction  in which the nature of its
assets or the conduct of its business requires it to be so qualified.

          Neither this  Guaranty  nor any  other  Loan  Document  to  which  the
Guarantor is a party will violate any  provision of law,  rule or  regulation or
any order of any court or other  governmental  agency to which the  Guarantor is
subject,  the  organizational  documents of the Guarantor,  any provision of any
agreement  or  instrument  to which  the  Guarantor  is a party or by which  the
Guarantor or any of the  Guarantor's  properties  or assets are bound,  or be in
conflict  with,  result in a breach of, or  constitute a default  under (with or
without notice or lapse of time), any such agreement or instrument, or result in
the creation or  imposition  of any lien,  charge or  encumbrance  of any nature
whatsoever upon any properties or assets of the Guarantor.

          No   action or  approval by or of and no filing or  registration  with
any governmental or public body or authority,  or any subdivision  thereof,  nor
the  consent of any other  person or entity,  nor any other legal  formality  is
required in connection  with the entering  into,  performance  or enforcement of
this  Guaranty,  except such as have been  obtained or taken and with respect to
which a copy or other  satisfactory  evidence  thereof has been furnished to the
Bank.

         5.       Security; Events of Default.
                  ----------------------------
          As   security  for  any and all of the  obligations  of the  Guarantor
under this Guaranty,  now existing or hereafter  arising  hereunder or otherwise
(collectively,  the  "Liabilities"),  the Guarantor  hereby grants to the Bank a
lien upon and a security interest in any and all moneys or other property (i.e.,
goods and merchandise, as well as any and all documents relative thereto; funds,
securities,  choses in action and any and all other  forms of  property  whether
real,  personal or mixed,  and any right,  title or  interest  of the  Guarantor
therein or thereto), and the proceeds thereof, which have been, or may hereafter
be,  deposited  or  delivered to the Bank (or with any third party acting on the
Bank's  behalf) by or for the  account or credit of the  Guarantor  whether  for
safekeeping,  custody, pledge, deposit,  transmission,  collection or otherwise.
All  remittances  and property shall be deemed  delivered to the Bank as soon as
put in transit to the Bank by mail or carrier.

          Upon the occurrence of any of the following  events (each an "Event of
Default"):

          (a)  the Guarantor  defaults  under this Guaranty or any Loan Document
to which the Guarantor is a party;

          (b)  any representation or warranty made by the Guarantor herein or in
any other Loan  Document to which the Guarantor is a party is false or untrue as
of the date such representation or warranty is made;

          (c)  the  Guarantor  commences any case,  proceeding,  or other action
under  any  law  of  any  jurisdiction   relating  to  bankruptcy,   insolvency,
reorganization,  or  relief  of  debtors  or seeks to have an order  for  relief
entered with respect to the  Guarantor or seeks to be  adjudicated a bankrupt or
insolvent,  or  seeks  reorganization,   arrangement,  adjustment,  liquidation,
dissolution,  composition  or other relief with respect to the  Guarantor or the
Guarantor's debts, or seeks the appointment of a receiver,  trustee,  custodian,
or other similar  official for the Guarantor or for all or any substantial  part
of the Guarantor's property;

          (d)  the  Guarantor  makes a general  assignment  for the  benefit  of
creditors;

          (e)  there is commenced against the Guarantor, any case, proceeding or
other action of the type referred to in clause (c) above or seeking the issuance
of a warrant of attachment, execution, distraint, or similar process against all
or any substantial part of the Guarantor's  property,  which case, proceeding or
other  action  results in an entry of an order for  relief or is not  dismissed,
discharged or bonded within sixty days of the commencement thereof;

          (f)  the Guarantor takes any action indicating the Guarantor's consent
to,  approval of, or  acquiescence  in or in furtherance of, any of the acts set
forth in clause (c) and (e) above;

          (g)  the death or incapacity of a Guarantor, if an individual;

          (h)  the Guarantor admits in writing the Guarantor's  inability to pay
the Guarantor's debts as they mature; or

          (i)  the Guarantor terminates or dissolves or suspends the Guarantor's
usual  business  activities or conveys,  sells,  leases,  transfers or otherwise
disposes of all or a substantial part of the Guarantor's  property,  business or
assets other than in the ordinary  course of business;  then,  any or all of the
Liabilities  shall,  at the  Bank's  option,  become  (for the  purpose  of this
Guaranty)  immediately  due and  payable  by the  Guarantor,  without  demand or
notice. In addition, upon the occurrence of any Event of Default, the Bank shall
have all of the rights and remedies  provided to a secured  party by the Uniform
Commercial  Code as in  effect in New York  State at that  time.  The  Guarantor
agrees that in the event that notice is necessary,  written notice mailed to the
Guarantor at the address  given below three  business  days prior to the date of
public sale of the property  subject to the lien and security  interest  created
herein or prior to the date after which private sale or any other disposition of
said property will be made shall constitute  reasonable notice, but notice given
in any  other  reasonable  manner  or at any  other  reasonable  time  shall  be
sufficient.

         6.       Parties.
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          This Guaranty  shall  inure  to  the  benefit  of  the  Bank  and  its
successors, assigns or transferees, and shall be binding upon each Guarantor and
its  successors  and assigns.  No Guarantor may delegate any of the  Guarantor's
duties under this Guaranty without the prior written consent of the Bank.

         7.       Notices.
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          Any  notice shall be  conclusively  deemed to have been  received by a
party hereto and to be effective on the day on which  delivered to such party at
the  address  set forth below if hand  delivered  or sent by Federal  Express or
other  reputable  courier of national  reputation,  or if sent by  registered or
certified  mail, on the third  business day after the day on which mailed in the
United States, addressed to such party at said address:

                  (a)      if to the Bank, at

                         European American Bank
                         730 Veterans Memorial Highway
                         Hauppauge, New York  11788
                         Attention:  Richard Ohl, V.P.

                  (b)      if to the Guarantor,

                         James Ciocia
                         1311 Mamaroneck Avenue, Suite 160
                         White Plains, New York  10605

                         Michael Ryan
                         11 Raymond Avenue
                         Poughkeepsie, New York  12603

                         Thomas Povinelli
                         1311 Mamaroneck Avenue, Suite 160
                         White Plains, New York  10605

                         Kathryn Travis
                         1311 Mamaroneck Avenue, Suite 160
                         White Plains, New York  10605

                (c)  as to each such party at such other  address as such party
                     shall have designated to the other in a written notice
                     complying as to delivery with the provisions of this
                     Section 7.

         8.       Right to Deal with the Borrower.
                  --------------------------------
          At   any time and from time to time, without terminating, affecting or
impairing  the validity of this  Guaranty or the  obligations  of the  Guarantor
hereunder,  the Bank may deal with the  Borrower in the same manner and as fully
as if this Guaranty did not exist and shall be entitled,  among other things, to
grant  the  Borrower,  without  notice  or  demand  and  without  affecting  the
Guarantor's  liability  hereunder,  such  extension  or  extensions  of  time to
perform, renew, compromise,  accelerate or otherwise change the time for payment
of or otherwise  change the terms of indebtedness or any part thereof  contained
in or  arising  under  any  Loan  Document  or  any  other  document  evidencing
Obligations  of the  Borrower  to the Bank,  or to waive any  obligation  of the
Borrower to perform, any act or acts as the Bank may deem advisable.

         9.       Delivery of Financial Statements.
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                  The Guarantor shall deliver to the Bank:

          (a)  Annually, as soon as available,  but in any event within 120 days
               after the last day of each of its fiscal  years,  a balance sheet
               of the Guarantor  (other than a Guarantor which is an individual)
               and its subsidiaries, as at such last day of the fiscal year, and
               statements of income and retained earnings and cash flow for such
               fiscal year, each prepared in accordance with generally  accepted
               accounting principles consistently applied, in reasonable detail.

          (b)  Promptly after a written request  therefor,  such other financial
               data or information as the Bank may reasonably  request from time
               to time.

         10.      Survival of Representations, Warranties, and Agreements.
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          All  representations,   warranties,   covenants  and  agreements  made
herein,  including  representations  and  warranties  deemed made herein,  shall
survive any  investigation  or  inspection  made by or on behalf of the Bank and
shall  continue  in full force and effect  until all of the  obligations  of the
Guarantor  under this Guaranty shall be fully  performed in accordance  with the
terms hereof, and until the payment in full of the Guaranteed Obligations.

          11.  GOVERNING  LAW;  CONSENT TO  JURISDICTION;  WAIVER OF JURY TRIAL.
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THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE LAWS OF
THE  STATE  OF  NEW  YORK.  THE  GUARANTOR  HEREBY  IRREVOCABLY  SUBMITS  TO THE
JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW
YORK AND ANY COURT IN THE STATE OF NEW YORK IN ANY  ACTION,  SUIT OR  PROCEEDING
BROUGHT AGAINST THE GUARANTOR AND RELATED TO OR IN CONNECTION WITH THIS GUARANTY
OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY,  AND  TO THE  EXTENT  PERMITTED  BY
APPLICABLE  LAW, THE GUARANTOR  HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF
MOTION,  AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT,  ACTION OR PROCEEDING,  ANY
CLAIM THAT THE GUARANTOR IS NOT PERSONALLY  SUBJECT TO THE  JURISDICTION OF SUCH
COURTS, THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM,
THAT THE  VENUE OF THE SUIT,  ACTION OR  PROCEEDING  IS  IMPROPER,  OR THAT THIS
GUARANTY  OR ANY  DOCUMENT OR ANY  INSTRUMENT  REFERRED TO HEREIN OR THE SUBJECT
MATTER  THEREOF  MAY  NOT BE  LITIGATED  IN OR BY  SUCH  COURTS.  TO THE  EXTENT
PERMITTED BY  APPLICABLE  LAW, THE  GUARANTOR  AGREES (i) NOT TO SEEK AND HEREBY
WAIVES THE RIGHT TO ANY REVIEW OF THE JUDGMENT OF ANY SUCH COURT BY ANY COURT OF
ANY  OTHER  NATION  OR  JURISDICTION  WHICH  MAY BE  CALLED  UPON  TO  GRANT  AN
ENFORCEMENT  OF SUCH  JUDGMENT AND (ii) NOT TO ASSERT ANY  COUNTERCLAIM,  IN ANY
SUCH SUIT, ACTION OR PROCEEDING UNLESS SUCH COUNTERCLAIM COULD NOT, BY REASON OF
ANY  APPLICABLE  FEDERAL OR STATE  PROCEDURAL  LAWS, BE  INTERPOSED,  PLEADED OR
ALLEGED IN ANY OTHER ACTION. THE GUARANTOR AGREES THAT SERVICE OF PROCESS MAY BE
MADE UPON THE  GUARANTOR  BY  CERTIFIED  OR  REGISTERED  MAIL TO THE ADDRESS FOR
NOTICES SET FORTH IN THIS  GUARANTY OR ANY METHOD  AUTHORIZED BY THE LAWS OF NEW
YORK. THE GUARANTOR IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY, THE LOAN
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

         12.      Miscellaneous.
                  --------------

          (a)  If this Guaranty is executed by two or more  parties,  they shall
               be  jointly  and  severally  liable   hereunder,   and  the  word
               "Guarantor"  wherever  used herein shall be construed to refer to
               each of such parties separately,  all in the same manner and with
               the  same  effect  as  if  each  of  them  had  signed   separate
               instruments;  and in any such  case  this  Guaranty  shall not be
               revoked or impaired as to any one or more of such  parties by the
               death or dissolution of any of the others or by the revocation or
               release of any  liabilities  hereunder of any one or more of such
               other parties and the Bank may proceed  against none, one or more
               of the  Guarantors at one time, or from time to time, in its sole
               and absolute discretion.

          (b)  If any term of this Guaranty or any  application  hereof shall be
               invalid or unenforceable,  the remainder of this Guaranty and any
               other application of such term shall not be affected thereby.

          (c)  Any term of this Guaranty may be amended,  waived,  discharged or
               terminated  only  by an  instrument  in  writing  signed  by  the
               Guarantor  and the Bank.  No notice to or demand on the Guarantor
               shall  be  deemed  to be a  waiver  of  the  obligations  of  the
               Guarantor  or of the  right  of the Bank to take  further  action
               without notice or demand as provided in this Guaranty.  No course
               of dealing  between  the  Guarantor  and the Bank  shall  change,
               modify or  discharge,  in whole or in part,  this Guaranty or any
               obligations  of the Guarantor  hereunder.  No waiver of any term,
               covenant or provision of this Guaranty shall be effective  unless
               given  in  writing  by the Bank  and if so  given  shall  only be
               effective in the specific instance in which given.

          (d)  The headings in this Guaranty are for purposes of reference  only
               and shall not limit or define the meaning hereof.

          (e)  No delay or  omission  by the Bank in the  exercise  of any right
               under this Guaranty shall impair any such right,  nor shall it be
               construed to be a waiver thereof; nor shall any single or partial
               exercise  of any right  hereunder  preclude  any other or further
               exercise of any other right.

          (f)  The  liability  of  any  Guarantor  under  this  Guaranty  may be
               terminated,  but only  with  respect  to  Guaranteed  Obligations
               arising  subsequent to the effective  Date of  Termination,  upon
               written  notice  to that  effect,  signed  and  delivered  by the
               Guarantor to the Bank, provided,  however,  that such termination
               shall only be effective upon the Bank's receipt  thereof.  In the
               event of such termination, the Guarantor shall remain liable with
               respect  to  the   Guaranteed   Obligations   prior  to  date  of
               termination,  including any renewals,  extensions,  modifications
               thereof,  and this Guaranty shall remain in full force and effect
               as if no such termination has been made.

          (g)  The execution and delivery of this Guaranty  shall not supersede,
               terminate,  modify or supplement in any manner any other Guaranty
               previously  executed and delivered to the Bank by a Guarantor and
               no release or  termination  of any Guaranty shall be construed to
               terminate or release any other Guarantee  unless such Guaranty is
               specifically referred to in any such termination.

          IN   WITNESS WHEREOF,  the undersigned has executed and delivered this
Guaranty as of the day and year first above written.

                                                  /s/ James Ciocia
                                            ____________________________________
                                            James Ciocia

                                                 /s/ Michael Ryan
                                            ____________________________________
                                            Michael Ryan

                                                /s/ Thomas Povinelli
                                            ____________________________________
                                            Thomas Povinelli

                                               /s/ Kathryn Travis
                                            ____________________________________
                                            Kathryn Travis
<PAGE>
STATE OF NEW YORK
COUNTY OF Queens                                 ss.:

On the 26th day of  October,  in the year 2000  before me, the  undersigned,  a
notary  public  in  and  for  said  State,  personally  appeared  James  Ciocia,
personally known to me or proved to me on the basis of satisfactory  evidence to
be the  individual  whose  name  is  subscribed  to the  within  instrument  and
acknowledged  to me that he executed the same in his  capacity,  and that by his
signature on the instrument,  the individual, or the person upon behalf of which
the individual acted, executed the instrument.

    /s/ Paula D. Barba
__________________________________
        Notary Public
                               (seal)

STATE OF NEW YORK
COUNTY OF Dutchess                               ss.:

On the 26th day of  October,  in the year 2000  before me, the  undersigned,  a
notary  public  in  and  for  said  State,  personally  appeared  Michael  Ryan,
personally known to me or proved to me on the basis of satisfactory  evidence to
be the  individual  whose  name  is  subscribed  to the  within  instrument  and
acknowledged  to me that he executed the same in his  capacity,  and that by his
signature on the instrument,  the individual, or the person upon behalf of which
the individual acted, executed the instrument.
    /s/ Susan G. Charles
________________________________
        Notary Public
                              (seal)

STATE OF NEW YORK
COUNTY OF Westchester                             ss.:

On the 26th day of  October,  in the year 2000  before me, the  undersigned,  a
notary  public in and for said  State,  personally  appeared  Thomas  Povinelli,
personally known to me or proved to me on the basis of satisfactory  evidence to
be the  individual  whose  name  is  subscribed  to the  within  instrument  and
acknowledged  to me that he executed the same in his  capacity,  and that by his
signature on the instrument,  the individual, or the person upon behalf of which
the individual acted, executed the instrument.

   /s/ Carolyn DeCicco
______________________________
       Notary Public
                             (seal)
STATE OF NEW YORK
COUNTY OF Westchester                             ss.:

On the 26th day of  October,  in the year 2000  before me, the  undersigned,  a
notary  public  in and for  said  State,  personally  appeared  Kathryn  Travis,
personally known to me or proved to me on the basis of satisfactory  evidence to
be the  individual  whose  name  is  subscribed  to the  within  instrument  and
acknowledged  to me that she executed the same in her capacity,  and that by her
signature on the instrument,  the individual, or the person upon behalf of which
the individual acted, executed the instrument.

  /s/ Carolyn DeCicco
____________________________
      Notary Public
                             (seal)
<PAGE>THIS AGREEMENT OF SUBORDINATION AND ASSIGNMENT,  is entered into as of
November 1, 2000 by Thomas  Povinelli,  an  individual  having an office at 1311
Mamaroneck Avenue, Suite #160, White Plains, NY 10605 (the "Creditor"), in favor
of and for the benefit of EUROPEAN AMERICAN BANK, a New York banking corporation
(the "Bank").

                              RECITALS

          A.   The  Bank  has  made and may  make,  from  time to  time,  loans,
advances,   extensions   of  credit   and/or  other   financial   accommodations
(collectively,  the  "Loans")  for the  account  of GILMAN + CIOCIA,  INC.  (the
"Debtor").

          B.   The Creditor, being affiliated with the Debtor,  acknowledges and
agrees that the Creditor  will receive  direct and  indirect  benefits  from the
extension of the Loans and any further  extensions  of credit made to the Debtor
from time to time.

          C.   In order to induce the Bank, its successors or assigns, from time
to  time to make  the  Loans  and  such  other  advances,  loans,  discounts  or
extensions of credit as it may deem advisable, directly or indirectly, to or for
the account of the Debtor,  or to others upon the  Debtor's  obligations,  or to
acquire  obligations  (direct or indirect) of the Debtor,  or to have the Debtor
become  obligated  to the  Bank in any  manner,  and/or  to  grant to or for the
account of the Debtor  such  renewals,  extensions,  forbearances,  releases  of
collateral  or  other  relinquishments  of  legal  rights,  as the Bank may deem
advisable and in  consideration of advances,  loans,  discounts or extensions of
credit, due or to become due, whether heretofore or hereafter made to the Debtor
and  for  other  valuable  consideration,   receipt  of  which  is  hereby  duly
acknowledged,  the Creditor  agrees to subordinate the obligations of the Debtor
to the Creditor on the terms set forth herein.

         Accordingly, the Creditor hereby agrees as follows:

          1.   Subordination.
               -------------- The Creditor agrees that all  indebtedness now or
hereafter  owing to the Creditor by the Debtor whether for principal,  interest,
extensions of credit after the filing of a petition  initiating  any  proceeding
referenced  in  paragraph 2 hereof,  premiums,  fees,  indemnities,  expenses or
otherwise and all claims and demands which the Creditor now has or may hereafter
have or acquire  against  the Debtor  (such  indebtedness,  claims and  demands,
collectively,  hereinafter  called  "Subordinated  Indebtedness")  are not to be
payable other than as provided  herein,  and that no payment on account thereof,
nor any  security  therefor,  shall be  received,  accepted  or  retained by the
Creditor (other than as permitted herein) and no suit or proceeding seeking such
payment or to foreclose or take any other action with respect to the  collateral
therefor  shall be commenced  unless and until the Debtor has paid and satisfied
in full all its  obligations to the Bank of every kind and  description  whether
for  principal,  interest  (including,  without  limitation,  interest after the
filing of a  petition  initiating  any  proceeding  referenced  in  paragraph  2
hereof),  premiums,  fees,  indemnities,  expenses or otherwise,  whether or not
represented  by negotiable  instruments  or other  writings,  whether  direct or
indirect,  absolute  or  contingent,  due  or not  due,  secured  or  unsecured,
original, deferred, renewed or extended, now in existence or hereafter incurred,
originally contracted with the Bank or, with another and assigned or transferred
to or  otherwise  acquired  by the  Bank,  or in which  the Bank may  acquire  a
participation,  and whether  contracted  by the Debtor  alone or jointly  and/or
severally with another or others (such  obligations,  collectively,  hereinafter
called the "Senior  Indebtedness").  Notwithstanding  anything  to the  contrary
contained  herein,  so long as no default  has  occurred  under any  instrument,
document or agreement evidencing or securing the Senior Indebtedness, the Debtor
shall be  permitted  to make,  and the  Creditor  shall be  permitted to receive
regularly scheduled payments of accrued interest only.

          2.   Intentionally omitted.
               ----------------------

          3.   Waiver and  Consent.
               --------------------  The  Creditor  waives any and all notice of
acceptance  of this  agreement  and of the  creation,  modification,  renewal or
extension or accrual of the Senior Indebtedness, or any part thereof, present or
future, and of the reliance of the Bank upon this agreement. The Creditor hereby
consents that,  without notice to or further assent by the Creditor,  the Senior
Indebtedness, or any part thereof, may from time to time in whole or in part, be
renewed, extended, modified, compromised or released by the Bank, as the Bank
may deem  advisable,  that any  collateral  and/or  lien or liens for the Senior
Indebtedness,  or any part thereof, made from time to time, in whole or in part,
be exchanged,  sold or surrendered by the Bank, as it deems advisable,  and that
any deposit  balance or balances as to the credit of the Debtor may from time to
time,  in whole or in part,  be  surrendered  or released by the Bank, as it may
deem advisable,  all without  impairing,  abridging,  affecting or releasing the
subordination and rights of the Bank contained in this agreement.

          4.   Payments.
               ---------  Should any payment,  dividend,  security,  proceeds or
other  distribution  be  received  by  the  Creditor  for or on  account  of the
Subordinated Indebtedness, or any part thereof, prior to the satisfaction of all
Senior Indebtedness,  the Creditor shall promptly deliver and assign the same to
the Bank in the form  received and, if  necessary,  properly  endorsed to permit
collection,  for  application on account of the Senior  Indebtedness or any part
thereof  (principal  and/or interest as the Bank may elect),  whether matured or
unmatured,  and  until  so  delivered,  the  same  shall be held in trust by the
Creditor as the property of the Bank and shall not be commingled with any assets
of the  Creditor.  In the event of the  failure  of the  Creditor  to endorse or
assign any  security or  instrument  for the payment of money so received by the
Creditor or payable to the Creditor's order, the Bank or any officer or employee
thereof is hereby  irrevocably  constituted and appointed  attorneys in fact for
the Creditor,  with full power to make any such  endorsement  or assignment  and
with full power of substitution.

          5.   Representations and Warranties; Additional Instruments; Books and
               -----------------------------------------------------------------
Records.
--------  The  Creditor  represents  and  warrants  to the  Bank  that:  (i) the
aggregate  principal sum of the Subordinated  Indebtedness on the date hereof is
$750,000.00  without  counterclaim,  defense  or offset,  (ii) the  Subordinated
Indebtedness  is not represented by any notes or other  negotiable  instruments,
other than that certain  promissory  note in the principal  amount of $70,000.00
dated  November  1, 2000 and (iii) the  Creditor  is solvent  and has granted no
security  interest  in and has  made no  prior  transfer  or  assignment  of the
Subordinated  Indebtedness  or any part thereof.  The Creditor agrees that at no
time  hereafter  will the  Subordinated  Indebtedness,  or any part thereof,  be
represented by any notes, other negotiable instruments or other writings, except
notes, other negotiable  instruments or other writings endorsed and delivered to
the Bank, or marked with a legend,  as above provided.  The Creditor agrees that
(i) its books and records shall  appropriately  indicate  that the  Subordinated
Indebtedness  is subject to this  agreement  and (ii) the Bank shall have access
from time to time to its books and  records in order  that the Bank may  examine
the state of  accounts  of the  Creditor  with the  Debtor and the Bank shall be
permitted to make copies thereof.

          6.   Continuing   Agreement.
               -----------------------   This  is  a  continuing   agreement  of
subordination  and  assignment  and shall remain in full force and effect and be
binding  upon the  undersigned  and its legal  representatives,  successors  and
assigns until the Bank shall actually  receive from the Creditor  written notice
of its discontinuance;  provided,  however,  this agreement shall remain in full
force and effect thereafter until all of the Senior Indebtedness outstanding, or
contracted or committed for, whether or not  outstanding,  before the receipt of
such notice by the Bank,  and any  extension or renewals  thereof,  whether made
before or after receipt of such notice,  together with interest accruing thereon
after such  notice,  shall be finally  and  irrevocably  paid in full.  If after
receipt of any payment of all or any part of the Senior  Indebtedness,  the Bank
is for any reason  compelled to surrender  such payment to any person or entity,
because  such  payment is  determined  to be void or voidable  as a  preference,
impermissible  set off, or a diversion of trust funds,  or for any other reason,
this  agreement  shall  continue  in full force and effect  notwithstanding  any
contrary  action  which may have been  taken by the Bank in  reliance  upon such
payment;  and any such contrary  actions so taken shall be without  prejudice to
the  Bank's  right  under  this  agreement  and  shall be  deemed  to have  been
conditioned upon such payment having become final and irrevocable.  The Creditor
agrees that payment in full of the Senior  Indebtedness  from time to time shall
not operate as a termination of this agreement.

          7.   Further  Assurances.
               --------------------  The  Creditor  agrees,  upon request of the
Bank, to execute such further  documents  and  instruments,  including,  without
limitation,  additional notes or negotiable instruments,  assignments,  security
agreements and financing  statements  under the Uniform  Commercial Code, as the
Bank may require.

          8.   Expenses.
               ---------  In the event that the Creditor has received payment(s)
on the Subordinated  Indebtedness that is(are) prohibited  hereunder and refuses
to  deliver  any part or all of such  payment(s)  to the Bank and the Bank shall
retain or engage an attorney  or  attorneys  to collect,  enforce or protect its
interest with respect to this agreement or the  Subordinated  Indebtedness,  all
the costs and expenses of such collection, enforcement or protection, including,
without limitation, reasonable attorneys' fees, shall be payable by the Creditor
to the extent such  collection,  enforcement or protection is sought against the
Creditor.

          9.   No Waiver; Cumulative Remedies.
               ------------------------------- No waiver shall be deemed to have
been made by the Bank of any of its  rights  hereunder  unless  same shall be in
writing and each  waiver,  if any,  shall be a waiver  only with  respect to the
specific  instance  involved and shall in no way impair the Bank's rights and/or
the obligations of the Creditor to the Bank in any other respect or at any other
time, nor shall same establish a course of conduct. The rights, remedies, powers
and  privileges  provided in this  Agreement are cumulative and not exclusive of
any rights, remedies, powers and privileges provided by law.

          10.  Amendments;  Continued Enforceability.
               --------------------------------------  No modification,  waiver,
release or amendment of any provision of this Agreement  shall be made except by
a written  agreement  executed by the Creditor and a duly authorized  officer of
the Bank. Any provision of this agreement  which may prove  unenforceable  under
any law shall not effect the validity of any other provisions contained herein.

          11.  Successors and Assigns.
               -----------------------  This Agreement shall be binding upon and
inure  to the  benefit  of the  Creditor  and  the  Bank  and  their  respective
successors and assigns and, if applicable, heirs and legal representations.

          12.  Notices.
               -------- Any notice to the Bank shall be deemed effective only if
in writing and sent to and received at the branch, division or department of the
Bank  conducting the transaction or  transactions  hereunder.  Any notice to the
Creditor shall be deemed  sufficient when sent to the Creditor at the last known
address of the Creditor appearing on the records of the Bank.

          13.  Severability.
               -------------  If any one or more of the provisions  contained in
this agreement,  or any application thereof,  shall be held invalid,  illegal or
unenforceable in any respect,  the validity,  legality and enforceability of the
remaining provisions contained herein, and any other application thereof,  shall
not in any way be affected or impaired thereby.

          14.  GOVERNING  LAW;  CONSENT TO  JURISDICTION;  WAIVER OF JURY TRIAL.
               -----------------------------------------------------------------
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE  STATE  OF  NEW  YORK.  THE  CREDITOR  HEREBY  IRREVOCABLY  SUBMITS  TO  THE
JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW
YORK AND ANY COURT IN THE STATE OF NEW YORK IN ANY  ACTION,  SUIT OR  PROCEEDING
BROUGHT AGAINST THE CREDITOR AND RELATED TO OR IN CONNECTION WITH THIS AGREEMENT
OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY,  AND  TO THE  EXTENT  PERMITTED  BY
APPLICABLE  LAW, THE CREDITOR  HEREBY  WAIVES AND AGREES NOT TO ASSERT BY WAY OF
MOTION,  AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT,  ACTION OR PROCEEDING,  ANY
CLAIM THAT THE CREDITOR IS NOT PERSONALLY  SUBJECT TO THE  JURISDICTION  OF SUCH
COURTS, THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM,
THAT THE  VENUE OF THE SUIT,  ACTION OR  PROCEEDING  IS  IMPROPER,  OR THAT THIS
AGREEMENT  OR ANY DOCUMENT OR ANY  INSTRUMENT  REFERRED TO HEREIN OR THE SUBJECT
MATTER  THEREOF  MAY  NOT BE  LITIGATED  IN OR BY  SUCH  COURTS.  TO THE  EXTENT
PERMITTED BY  APPLICABLE  LAW,  THE  CREDITOR  AGREES (i) NOT TO SEEK AND HEREBY
WAIVES THE RIGHT TO ANY REVIEW OF THE JUDGMENT OF ANY SUCH COURT BY ANY COURT OF
ANY  OTHER  NATION  OR  JURISDICTION  WHICH  MAY BE  CALLED  UPON  TO  GRANT  AN
ENFORCEMENT  OF SUCH  JUDGMENT AND (ii) NOT TO ASSERT ANY  COUNTERCLAIM,  IN ANY
SUCH SUIT, ACTION OR PROCEEDING UNLESS SUCH COUNTERCLAIM COULD NOT, BY REASON OF
ANY  APPLICABLE  FEDERAL OR STATE  PROCEDURAL  LAWS, BE  INTERPOSED,  PLEADED OR
ALLEGED IN ANY OTHER ACTION.  THE CREDITOR AGREES THAT SERVICE OF PROCESS MAY BE
MADE UPON THE  CREDITOR  BY  CERTIFIED  OR  REGISTERED  MAIL TO THE  ADDRESS FOR
NOTICES SET FORTH IN THIS AGREEMENT OR ANY METHOD  AUTHORIZED BY THE LAWS OF NEW
YORK. THE CREDITOR  IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING  OR  COUNTERCLAIM  ARISING  OUT OF OR  RELATING  TO  THIS  AGREEMENT,
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

          IN   WITNESS WHEREOF,  the undersigned has caused this Agreement to be
duly executed on the date written in the first paragraph hereof.

                                                   /s/ Thomas Povinelli
                                                ________________________________
                                                     THOMAS POVINELLI

 STATE OF NEW YORK
 COUNTY OF Westchester                        ss.:

On the 1st day of  November,  in the year 2000 before me, the  undersigned,  a
notary  public in and for said  State,  personally  appeared  Thomas  Povinelli,
personally known to me or proved to me on the basis of satisfactory  evidence to
be the  individual  whose  name  is  subscribed  to the  within  instrument  and
acknowledged  to me that he executed the same in his  capacity,  and that by his
signature on the instrument,  the individual, or the person upon behalf of which
the individual acted, executed the instrument.

    /s/ Jennifer Zacharczyk
_________________________________
          Notary Public
                          (seal)
<PAGE>
                          AGREEMENT OF THE DEBTOR

          The  undersigned,   the  Debtor   described   in  the   Agreement   of
Subordination  and Assignment dated the date hereof between Thomas Povinelli and
European American Bank (the "Agreement"),  hereby acknowledges receipt of a copy
thereof,  acknowledges that the Subordinated  Indebtedness  mentioned therein is
payable as stated  therein,  and agrees to make no payment,  whether  principal,
interest  fees,   indemnities,   expenses  or  otherwise  on  the   Subordinated
Indebtedness  so long as the undersigned  shall be indebted to the Bank,  except
such payments as are permitted pursuant to the Agreement,  as may be made to the
Bank or with the prior written consent of the Bank. If (i) the undersigned makes
any other payment of the Subordinated  Indebtedness,  (ii) the undersigned makes
any loan, advances or extensions of credit to the Creditor or acquires any notes
receivables or other obligations as to which the Creditor is the obligor,  (iii)
any term of the foregoing  agreement or this Agreement of the Debtor is breached
by any party which  executed  same,  or (iv) the  undersigned  fails to make any
payment of the Subordinated  Indebtedness  when due after the Bank has given its
written  consent to the making of such  payment,  then the Bank may, at its sole
election, declare all or any part of the Senior Indebtedness or the Subordinated
Indebtedness  as defined in the  Agreement  to be  immediately  due and  payable
without demand or notice of any kind.
 Dated: November 1, 2000
                                             GILMAN + CIOCIA, INC.
                                             By:   /s/ David D. Puyear
                                             ___________________________________
                                             David D. Puyear
                                             Chief Financial Officer

 STATE OF NEW YORK
 COUNTY OF NASSAU                            ss.:

On the 1st day of  November,  in the year 2000  before  me, the  undersigned,  a
notary  public  in and for said  State,  personally  appeared  David D.  Puyear,
personally known to me or proved to me on the basis of satisfactory  evidence to
be the  individual  whose  name  is  subscribed  to the  within  instrument  and
acknowledged  to me that he executed the same in his  capacity,  and that by his
signature on the instrument,  the individual, or the person upon behalf of which
the individual acted, executed the instrument.

        /s/
__________________________________
           Notary Public

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