Document:

Exhibit 10.7

                       SUBSIDIARY GUARANTY

New York, New York                                              June 25, 2004

     FOR VALUE RECEIVED, and in consideration of note purchases from, loans
made or to be made or credit otherwise extended or to be extended by Laurus
Master Fund, Ltd. ("Laurus") to or for the account of DataLogic International,
Inc., a Delaware corporation ("Debtor"), from time to time and at any time and
for other good and valuable consideration and to induce Laurus, in its
discretion, to purchase such notes, make such loans or extensions of credit
and to make or grant such renewals, extensions, releases of collateral or
relinquishments of legal rights as Laurus may deem advisable, each of the
undersigned (and each of them if more than one, the liability under this
Guaranty being joint and several) (jointly and severally referred to as
"Guarantors " or "the undersigned") unconditionally guaranties to Laurus, its
successors, endorsees and assigns the prompt payment when due (whether by
acceleration or otherwise) of all present and future obligations and
liabilities of any and all kinds of Debtor to Laurus and of all instruments of
any nature evidencing or relating to any such obligations and liabilities upon
which Debtor or one or more parties and Debtor is or may become liable to
Laurus, whether incurred by Debtor as maker, endorser, drawer, acceptor,
guarantors , accommodation party or otherwise, and whether due or to become
due, secured or unsecured, absolute or contingent, joint or several, and
however or whenever acquired by Laurus, whether arising under, out of, or in
connection with (i) that certain Securities Purchase Agreement dated as of the
date hereof by and between the Debtor and Laurus (the "Securities Purchase
Agreement") and (ii) each Related Agreement referred to in the Securities
Purchase Agreement, as each may be amended, modified, restated or supplemented
from time to time, are collectively referred to herein as the "Documents"), or
any documents, instruments or agreements relating to or executed in connection
with the Documents or any documents, instruments or agreements referred to
therein or otherwise, or any other indebtedness, obligations or liabilities of
the Debtor to Laurus, whether now existing or hereafter arising, direct or
indirect, liquidated or unliquidated, absolute or contingent, due or not due
and whether under, pursuant to or evidenced by a note, agreement, guaranty,
instrument or otherwise (all of which are herein collectively referred to as
the "Obligations"), and irrespective of the genuineness, validity, regularity
or enforceability of such Obligations, or of any instrument evidencing any of
the Obligations or of any collateral therefor or of the existence or extent of
such collateral, and irrespective of the allowability, allowance or
disallowance of any or all of the Obligations in any case commenced by or
against Debtor under Title 11, United States Code, including, without
limitation, obligations or indebtedness of Debtor for post-petition interest,
fees, costs and charges that would have accrued or been added to the
Obligations but for the commencement of such case.  Terms not otherwise
defined herein shall have the meaning assigned such terms in the Securities
Purchase Agreement.  In furtherance of the foregoing, the undersigned hereby
agrees as follows:

     1.   No Impairment.  Laurus may at any time and from time to time, either
before or after the maturity thereof, without notice to or further consent of
the undersigned, extend the time of payment of, exchange or surrender any
collateral for, renew or extend any of the Obligations or increase or decrease
the interest rate thereon, or any other agreement with Debtor or with any
other party to or person liable on any of the Obligations, or interested
therein, for the extension, renewal, payment, compromise, discharge or release
thereof, in whole or in part, or for any modification of the terms thereof or
of any agreement between Laurus and Debtor or any such other party or person,
or make any election of rights Laurus may deem desirable under the United
States Bankruptcy Code, as amended, or any other federal or state bankruptcy,
reorganization, moratorium or insolvency law relating to or affecting the
enforcement of creditors' rights generally (any of the foregoing, an
"Insolvency Law") without in any way impairing or affecting this Guaranty.
This instrument shall be effective regardless of the subsequent incorporation,
merger or consolidation of Debtor, or any change in the composition, nature,
personnel or location of Debtor and shall extend to any successor entity to
Debtor, including a debtor in possession or the like under any Insolvency Law.

     2.   Guaranty Absolute.  Subject to Section 5(c), each of the undersigned
jointly and severally guarantees that the Obligations will be paid strictly in
accordance with the terms of the Documents and/or any other document,
instrument or agreement creating or evidencing the Obligations, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of Debtor with respect thereto.
Guarantors hereby knowingly accept the full range of risk encompassed within a
contract of "continuing guaranty" which risk includes the possibility that
Debtor will contract additional indebtedness for which Guarantors may be
liable hereunder after Debtor's financial condition or ability to pay its
lawful debts when they fall due has deteriorated, whether or not Debtor has
properly authorized incurring such additional indebtedness.  The undersigned
acknowledge that (i) no oral representations, including any representations to
extend credit or provide other financial accommodations to Debtor, have been
made by Laurus to induce the undersigned to enter into this Guaranty and (ii)
any extension of credit to the Debtor shall be governed solely by the
provisions of the Documents.  The liability of each of the undersigned under
this Guaranty shall be absolute and unconditional, in accordance with its
terms, and shall remain in full force and effect without regard to, and shall
not be released, suspended, discharged, terminated or otherwise affected by,
any circumstance or occurrence whatsoever, including, without limitation: (a)
any waiver, indulgence, renewal, extension, amendment or modification of or
addition, consent or supplement to or deletion from or any other action or
inaction under or in respect of the Documents or any other instruments or
agreements relating to the Obligations or any assignment or transfer of any
thereof, (b) any lack of validity or enforceability of any Document or other
documents, instruments or agreements relating to the Obligations or any
assignment or transfer of any thereof, (c) any furnishing of any additional
security to Laurus or its assignees or any acceptance thereof or any release
of any security by Laurus or its assignees, (d) any limitation on any party's
liability or obligation under the Documents or any other documents,
instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof or any invalidity or unenforceability, in whole or in
part, of any such document, instrument or agreement or any term thereof, (e)
any bankruptcy, insolvency, reorganization, composition, adjustment,
dissolution, liquidation or other like proceeding relating to Debtor, or any
action taken with respect to this Guaranty by any trustee or receiver, or by
any court, in any such proceeding, whether or not the undersigned shall have
notice or knowledge of any of the foregoing, (f) any exchange, release or
nonperfection of any collateral, or any release, or amendment or waiver of or
consent to departure from any guaranty or security, for all or any of the
Obligations or (g) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the undersigned.  Any amounts due
from the undersigned to Laurus shall bear interest until such amounts are paid
in full at the highest rate then applicable to the Obligations.  Obligations
include post-petition interest whether or not allowed or allowable.

     3.   Waivers.

          (a)   This Guaranty is a guaranty of payment and not of collection.
Laurus shall be under no obligation to institute suit, exercise rights or
remedies or take any other action against Debtor or any other person liable
with respect to any of the Obligations or resort to any collateral security
held by it to secure any of the Obligations as a condition precedent to the
undersigned being obligated to perform as agreed herein and each of the
Guarantors hereby waives any and all rights which it may have by statute or
otherwise which would require Laurus to do any of the foregoing.  Each of the
Guarantors further consents and agrees that Laurus shall be under no
obligation to marshal any assets in favor of Guarantors, or against or in
payment of any or all of the Obligations.  The undersigned hereby waives all
suretyship defenses and any rights to interpose any defense, counterclaim or
offset of any nature and description which the undersigned may have or which
may exist between and among Laurus, Debtor and/or the undersigned with respect
to the undersigned's obligations under this Guaranty, or which Debtor may
assert on the underlying debt, including but not limited to failure of
consideration, breach of warranty, fraud, payment (other than cash payment in
full of the Obligations), statute of frauds, bankruptcy, infancy, statute of
limitations, accord and satisfaction, and usury.

          (b)   Each of the undersigned further waives (i) notice of the
acceptance of this Guaranty, of the making of any such loans or extensions of
credit, and of all notices and demands of any kind to which the undersigned
may be entitled, including, without limitation, notice of adverse change in
Debtor's financial condition or of any other fact which might materially
increase the risk of the undersigned and (ii) presentment to or demand of
payment from anyone whomsoever liable upon any of the Obligations, protest,
notices of presentment, non-payment or protest and notice of any sale of
collateral security or any default of any sort.

          (c)   Notwithstanding any payment or payments made by the
undersigned hereunder, or any setoff or application of funds of the
undersigned by Laurus, the undersigned shall not be entitled to be subrogated
to any of the rights of Laurus against Debtor or against any collateral or
guarantee or right of offset held by Laurus for the payment of the
Obligations, nor shall the undersigned seek or be entitled to seek any
contribution or reimbursement from Debtor in respect of payments made by the
undersigned hereunder, until all amounts owing to Laurus by Debtor on account
of the Obligations are paid in full and Laurus' obligation to extend credit
pursuant to the Documents have been terminated.  If, notwithstanding the
foregoing, any amount shall be paid to the undersigned on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full and Laurus' obligation to extend credit pursuant to the Documents
shall not have been terminated, such amount shall be held by the undersigned
in trust for Laurus, segregated from other funds of the undersigned, and shall
forthwith upon, and in any event within two (2) business days of, receipt by
the undersigned, be turned over to Laurus in the exact form received by the
undersigned (duly endorsed by the undersigned to Laurus, if required), to be
applied against the Obligations, whether matured or unmatured, in such order
as Laurus may determine, subject to the provisions of the Documents.  Any and
all present and future debts and obligations of Debtor to any of the
undersigned are hereby waived and postponed in favor of, and subordinated to
the full payment and performance of, all present and future debts and
Obligations of Debtor to Laurus.

     4.   Security.  All sums at any time to the credit of the undersigned and
any property of the undersigned in Laurus' possession or in the possession of
any bank, financial institution or other entity that directly or indirectly,
through one or more intermediaries, controls or is controlled by, or is under
common control with, Laurus (each such entity, an "Affiliate") shall be deemed
held by Laurus or such Affiliate, as the case may be, as security for any and
all of the undersigned's obligations to Laurus and to any Affiliate of Laurus,
no matter how or when arising and whether under this or any other instrument,
agreement or otherwise.

     5.   Representations and Warranties.  Each of the undersigned
respectively, hereby jointly and severally represents and warrants (all of
which representations and warranties shall survive until all Obligations are
indefeasibly satisfied in full and the Documents have been irrevocably
terminated), that:

          (a)   Corporate Status.  It is a corporation, partnership or limited
liability company, as the case may be, duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization indicated on
the signature page hereof and has full power, authority and legal right to own
its property and assets and to transact the business in which it is engaged.

          (b)   Authority and Execution.  It has full power, authority and
legal right to execute and deliver, and to perform its obligations under, this
Guaranty and has taken all necessary corporate, partnership or limited
liability company, as the case may be, action to authorize the execution,
delivery and performance of this Guaranty.

          (c)   Legal, Valid and Binding Character.  This Guaranty constitutes
its legal, valid and binding obligation enforceable in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other laws of general application
affecting the enforcement of creditor's rights and general principles of
equity that restrict the availability of equitable or legal remedies.

          (d)   Violations.  The execution, delivery and performance of this
Guaranty will not violate any requirement of law applicable to it or any
contract, agreement or instrument to it is a party or by which it or any of
its property is bound or result in the creation or imposition of any mortgage,
lien or other encumbrance other than to Laurus on any of its property or
assets pursuant to the provisions of any of the foregoing, which, in any of
the foregoing cases, could reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect.

          (e)   Consents or Approvals.  No consent of any other person or
entity (including, without limitation, any creditor of the undersigned) and no
consent, license, permit, approval or authorization of, exemption by, notice
or report to, or registration, filing or declaration with, any governmental
authority is required in connection with the execution, delivery, performance,
validity or enforceability of this Guaranty by it, except to the extent that
the failure to obtain any of the foregoing could not reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

          (f)   Litigation.  No litigation, arbitration, investigation or
administrative proceeding of or before any court, arbitrator or governmental
authority, bureau or agency is currently pending or, to the best of its
knowledge, threatened (i) with respect to this Guaranty or any of the
transactions contemplated by this Guaranty or (ii) against or affecting it, or
any of its property or assets, which, in each of the foregoing cases, if
adversely determined, could reasonably be expected to have a Material Adverse
Effect.

          (g)   Financial Benefit.  It has derived or expects to derive a
financial or other advantage from each and every loan, advance or extension of
credit made under the Documents or other Obligation incurred by the Debtor to
Laurus.

     6.   Acceleration.

          (a)   If any breach of any covenant or condition or other event of
default shall occur and be continuing under any agreement made by Debtor or
any of the undersigned to Laurus, or either Debtor or any of the undersigned
should at any time become insolvent, or make a general assignment, or if a
proceeding in or under any Insolvency Law shall be filed or commenced by, or
in respect of, any of  the undersigned, or if a notice of any lien, levy, or
assessment is filed of record with respect to any assets of any of the
undersigned by the United States of America or any department, agency, or
instrumentality thereof, or if any taxes or debts owing at any time or times
hereafter to any one of them becomes a lien or encumbrance upon any assets of
the undersigned in Laurus' possession, or otherwise, any and all Obligations
shall for purposes hereof, at Laurus' option, be deemed due and payable
without notice notwithstanding that any such Obligation is not then due and
payable by Debtor.

          (b)   Each of the undersigned will promptly notify Laurus of any
default by such undersigned in its respective performance or observance of any
term or condition of any agreement to which the undersigned is a party if the
effect of such default is to cause, or permit the holder of any obligation
under such agreement to cause, such obligation to become due prior to its
stated maturity and, if such an event occurs, Laurus shall have the right to
accelerate such undersigned's obligations hereunder.

     7.   Payments from Guarantors.  Laurus, in its sole and absolute
discretion, with or without notice to the undersigned, may apply on account of
the Obligations any payment from the undersigned or any other guarantors, or
amounts realized from any security for the Obligations, or may deposit any and
all such amounts realized in a non-interest bearing cash collateral deposit
account to be maintained as security for the Obligations.

     8.   Costs.  The undersigned shall pay on demand, all costs, fees and
expenses (including expenses for legal services of every kind) relating or
incidental to the enforcement or protection of the rights of Laurus hereunder
or under any of the Obligations.

     9.   No Termination.  This is a continuing irrevocable guaranty and shall
remain in full force and effect and be binding upon the undersigned, and each
of the undersigned's successors and assigns, until all of the Obligations have
been paid in full and Laurus' obligation to extend credit pursuant to the
Documents has been irrevocably terminated.  If any of the present or future
Obligations are guarantied by persons, partnerships or corporations in
addition to the undersigned, the death, release or discharge in whole or in
part or the bankruptcy, merger, consolidation, incorporation, liquidation or
dissolution of one or more of them shall not discharge or affect the
liabilities of any undersigned under this Guaranty.

     10.   Recapture.  Anything in this Guaranty to the contrary
notwithstanding, if Laurus receives any payment or payments on account of the
liabilities guaranteed hereby, which payment or payments or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set
aside and/or required to be repaid to a trustee, receiver, or any other party
under any Insolvency Law, common law or equitable doctrine, then to the extent
of any sum not finally retained by Laurus, the undersigned's obligations to
Laurus shall be reinstated and this Guaranty shall remain in full force and
effect (or be reinstated) until payment shall have been made to Laurus, which
payment shall be due on demand.

     11.   Books and Records.  The books and records of Laurus showing the
account between Laurus and Debtor shall be admissible in evidence in any
action or proceeding, shall be binding upon the undersigned for the purpose of
establishing the items therein set forth and shall constitute prima facie
proof thereof.

     12.   No Waiver.  No failure on the part of Laurus to exercise, and no
delay in exercising, any right, remedy or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by Laurus of any
right, remedy or power hereunder preclude any other or future exercise of any
other legal right, remedy or power.  Each and every right, remedy and power
hereby granted to Laurus or allowed it by law or other agreement shall be
cumulative and not exclusive of any other, and may be exercised by Laurus at
any time and from time to time.

     13.   Waiver of Jury Trial. EACH OF THE UNDERSIGNED DOES HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN
ANY ACTION OR PROCEEDING BASED ON OR WITH RESPECT TO THIS GUARANTY OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR INCIDENTAL HERETO.  THE
UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LAURUS HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LAURUS WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.

    14.   Governing Law; Jurisdiction; Amendments.  THIS INSTRUMENT CANNOT BE
CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED AND INTERPRETED
AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT HAVING EFFECT TO PRINCIPLES OF CONFLICTS
OF LAWS.  EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS TO THE JURISDICTION AND
VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, AND
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR
ALL PURPOSES IN CONNECTION HEREWITH.  ANY JUDICIAL PROCEEDING BY THE
UNDERSIGNED AGAINST LAURUS INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR
CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED HEREWITH SHALL BE
BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK
OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK.
THE UNDERSIGNED FURTHER CONSENTS THAT ANY SUMMONS, SUBPOENA OR OTHER PROCESS
OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER
APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY
NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY BE SERVED INSIDE OR
OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE
PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER
MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS.  EACH OF THE
UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION
INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF
JURISDICTION OR VENUE OR BASED UPON FORUM NON CONVENIENS.

     15.   Severability.  To the extent permitted by applicable law, any
provision of this Guaranty which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

     16.   Amendments, Waivers.  No amendment or waiver of any provision of
this Guaranty nor consent to any departure by the undersigned therefrom shall
in any event be effective unless the same shall be in writing executed by each
of the undersigned directly affected by such amendment and/or waiver and
Laurus.

     17.   Notice.  All notices, requests and demands to or upon the
undersigned, shall be in writing and shall be deemed to have been duly given
or made (a) when delivered, if by hand, (b) three (3) days after being sent,
postage prepaid, if by registered or certified mail, (c) when confirmed
electronically, if by facsimile, or (d) when delivered, if by a recognized
overnight delivery service in each event, to the numbers and/or address set
forth beneath the signature of the undersigned.

     18.   Successors.  Laurus may, from time to time, without notice to the
undersigned, sell, assign, transfer or otherwise dispose of all or any part of
the Obligations and/or rights under this Guaranty.  Without limiting the
generality of the foregoing, Laurus may assign, or grant participations to,
one or more banks, financial institutions or other entities all or any part of
any of the Obligations.  In each such event, Laurus, its Affiliates and each
and every immediate and successive purchaser, assignee, transferee or holder
of all or any part of the Obligations shall have the right to enforce this
Guaranty, by legal action or otherwise, for its own benefit as fully as if
such purchaser, assignee, transferee or holder were herein by name
specifically given such right.  Laurus shall have an unimpaired right to
enforce this Guaranty for its benefit with respect to that portion of the
Obligations which Laurus has not disposed of, sold, assigned, or otherwise
transferred.

     19.   Release.  Nothing except cash payment in full of the Obligations
shall release any of the undersigned from liability under this Guaranty.

                [REMAINDER OF THIS PAGE IS BLANK.
               SIGNATURE PAGE IMMEDIATELY FOLLOWS]

     IN WITNESS WHEREOF, this Guaranty has been executed by the undersigned
this 25th day of June, 2004.

                                DATALOGIC CONSULTING, INC.

                                     /s/ Khanh Nguyen
                                By:___________________________________
                                Name:    Khanh Nguyen
                                Title:   CFO
                                Address: 18301 Van Karman Ave. Suite 250
                                         Irvine, CA 92612
                                Telephone: (949) 260-0120
                                Facsimile: (800) 549-3067
                                State of Incorporation: TX

                                IPN COMMUNICATIONS, INC.

                                     /s/ Khanh Nguyen
                                By:__________________________
                                Name:    Khanh Nguyen
                                Title:   President
                                Address: same as above
                                Telephone:
                                Facsimile:
                                State of Incorporation: CAExhibit 10.8

                      FUNDS ESCROW AGREEMENT

     This Agreement (this "Agreement") is dated as of the 25th day of June,
2004 among DATALOGIC INTERNATIONAL, INC., a Delaware corporation (the
"Company"), Laurus Master Fund, Ltd. (the "Purchaser"), and Loeb & Loeb LLP
(the "Escrow Agent"):

                       W I T N E S S E T H:

     WHEREAS, the Purchaser has advised the Escrow Agent that (a) the Company
and the Purchaser have entered into a Securities Purchase Agreement (the
"Purchase Agreement") for the sale by the Company to the Purchaser of a
secured convertible term note (the "Term Note"), (b) the Company has issued to
the Purchaser a common stock purchase warrant (the "Term Note Warrant") in
connection with the issuance of the Term Note, and (c) the Company and the
Purchaser have entered into a Registration Rights Agreement covering the
registration of the Company's common stock underlying the Term Note and the
Term Note Warrant (the "Term Note Registration Rights Agreement");

     WHEREAS, the Company and the Purchaser wish the Purchaser to deliver to
the Escrow Agent copies of the Documents (as hereafter defined) and the
Escrowed Payment (as hereafter defined) to be held and released by Escrow
Agent in accordance with the terms and conditions of this Agreement; and

     WHEREAS, the Escrow Agent is willing to serve as escrow agent pursuant to
the terms and conditions of this Agreement;

     NOW THEREFORE, the parties agree as follows:

                            ARTICLE I
                          INTERPRETATION

     1.1.   Definitions.  Whenever used in this Agreement, the following terms
shall have the meanings set forth below.

            (a)   "Agreement" means this Agreement, as amended, modified
and/or supplemented from time to time by written agreement among the parties
hereto.

            (b)   "Closing Payment" means the closing payment to be paid to
Laurus Capital Management, LLC, the fund manager, as set forth on Schedule A
hereto.

            (c)   "Disbursement Letter" means that certain letter delivered to
the Escrow Agent by each of the Purchaser and the Company setting forth wire
instructions and amounts to be funded at the Closing.

            (d)   "Documents" means copies of the Disbursement Letter, the
Purchase Agreement, the Term Note, the Term Note Warrant, and the Term Note
Registration Rights Agreement.

            (e)   "Escrowed Payment" means $3,000,000.

     1.2.   Entire Agreement.  This Agreement constitutes the entire agreement
among the parties hereto with respect to the matters contained herein and
supersedes all prior agreements, understandings, negotiations and discussions
of the parties, whether oral or written.  There are no warranties,
representations and other agreements made by the parties in connection with
the subject matter hereof except as specifically set forth in this Agreement.

     1.3.   Extended Meanings.  In this Agreement words importing the singular
number include the plural and vice versa; words importing the masculine gender
include the feminine and neuter genders.  The word "person" includes an
individual, body corporate, partnership, trustee or trust or unincorporated
association, executor, administrator or legal representative.

     1.4.   Waivers and Amendments.  This Agreement may be amended, modified,
superseded, cancelled, renewed or extended, and the terms and conditions
hereof may be waived, in each case only by a written instrument signed by all
parties hereto, or, in the case of a waiver, by the party waiving compliance.
Except as expressly stated herein, no delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any right, power or
privilege hereunder preclude any other or future exercise of any other right,
power or privilege hereunder.

     1.5.   Headings.  The division of this Agreement into articles, sections,
subsections and paragraphs and the insertion of headings are for convenience
of reference only and shall not affect the construction or interpretation of
this Agreement.

     1.6.   Law Governing this Agreement; Consent to Jurisdiction.  This
Agreement shall be governed by and construed in accordance with the laws of
the State of New York without regard to principles of conflicts of laws.  With
respect to any suit, action or proceeding relating to this Agreement or to the
transactions contemplated hereby ("Proceedings"), each party hereto
irrevocably submits to the exclusive jurisdiction of the courts of the County
of New York, State of New York and the United States District court located in
the county of New York in the State of New York.  Each party hereto hereby
irrevocably and unconditionally (a) waives trial by jury in any Proceeding
relating to this Agreement and for any related counterclaim and (b) waives any
objection which it may have at any time to the laying of venue of any
Proceeding brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have
jurisdiction over such party.  As between the Company and the Purchaser, the
prevailing party shall be entitled to recover from the other party its
reasonable attorneys' fees and costs.  In the event that any provision of this
Agreement is determined by a court of competent jurisdiction to be invalid or
unenforceable, then the remainder of this Agreement shall not be affected and
shall remain in full force and effect.

     1.7.   Construction.  Each party acknowledges that its legal counsel
participated in the preparation of this Agreement and, therefore, stipulates
that the rule of construction that ambiguities are to be resolved against the
drafting party shall not be applied in the interpretation of this Agreement to
favor any party against the other.

                            ARTICLE II
        APPOINTMENT OF AND DELIVERIES TO THE ESCROW AGENT

     2.1.   Appointment.  The Company and the Purchaser hereby irrevocably
designate and appoint the Escrow Agent as their escrow agent for the purposes
set forth herein, and the Escrow Agent by its execution and delivery of this
Agreement hereby accepts such appointment under the terms and conditions set
forth herein.

     2.2.   Copies of Documents to Escrow Agent.  On or about the date hereof,
the Purchaser shall deliver to the Escrow Agent copies of the Documents
executed by the Company to the extent it is a party thereto.

     2.3.   Delivery of Escrowed Payment to Escrow Agent.  On or about the
date hereof, the Purchaser shall deliver to the Escrow Agent the Escrowed
Payment.

     2.4.    Intention to Create Escrow Over the Escrowed Payment.  The
Purchaser and the Company intend that the Escrowed Payment shall be held in
escrow by the Escrow Agent and released from escrow by the Escrow Agent only
in accordance with the terms and conditions of this Agreement.

                           ARTICLE III
                        RELEASE OF ESCROW

     3.1.   Release of Escrow.  Subject to the provisions of Section 4.2, the
Escrow Agent shall release the Escrowed Payment from escrow as follows:

            (a)   Promptly following receipt by the Escrow Agent of (i) copies
of the fully executed Documents and this Agreement, (ii) the Escrowed Payment
in immediately available funds, (iii) joint written instructions ("Joint
Instructions") executed by the Company and the Purchaser setting forth the
payment direction instructions with respect to the Escrowed Payment and (iv)
Escrow Agent's verbal instructions from David Grin and/or Eugene Grin (each of
whom is a director of the Purchaser) indicating that all closing conditions
relating to the Documents have been satisfied and directing that the Escrowed
Payment be disbursed by the Escrow Agent in accordance with the Joint
Instructions, then the Escrowed Payment shall be deemed released from escrow
and shall be promptly disbursed in accordance with the Joint Instructions.
The Joint Instructions shall include, without limitation, Escrow Agent's
authorization to retain from the Escrowed Payment Escrow Agent's fee for
acting as Escrow Agent hereunder and the Closing Payment for delivery to
Laurus Capital Management, LLC in accordance with the Joint Instructions.

            (b)   Upon receipt by the Escrow Agent of a final and
non-appealable judgment, order, decree or award of a court of competent
jurisdiction (a "Court Order") relating to the Escrowed Payment, the Escrow
Agent shall remit the Escrowed Payment in accordance with the Court Order.
Any Court Order shall be accompanied by an opinion of counsel for the party
presenting the Court Order to the Escrow Agent (which opinion shall be
satisfactory to the Escrow Agent) to the effect that the court issuing the
Court Order is a court of competent jurisdiction and that the Court Order is
final and non-appealable.

     3.2.   Acknowledgement of Company and Purchaser; Disputes.  The Company
and the Purchaser acknowledge that the only terms and conditions upon which
the Escrowed Payment are to be released from escrow are as set forth in
Sections 3 and 4 of this Agreement.  The Company and the Purchaser reaffirm
their agreement to abide by the terms and conditions of this Agreement with
respect to the release of the Escrowed Payment.  Any dispute with respect to
the release of the Escrowed Payment shall be resolved pursuant to Section 4.2
or by written agreement between the Company and Purchaser.

                            ARTICLE IV
                   CONCERNING THE ESCROW AGENT

     4.1.   Duties and Responsibilities of the Escrow Agent.  The Escrow
Agent's duties and responsibilities shall be subject to the following terms
and conditions:

            (a)   The Purchaser and the Company acknowledge and agree that the
Escrow Agent (i) shall not be required to inquire into whether the Purchaser,
the Company or any other party is entitled to receipt of any Document or all
or any portion of the Escrowed Payment; (ii) shall not be called upon to
construe or review any Document or any other document, instrument or agreement
entered into in connection therewith; (iii) shall be obligated only for the
performance of such duties as are specifically assumed by the Escrow Agent
pursuant to this Agreement; (iv) may rely on and shall be protected in acting
or refraining from acting upon any written notice, instruction, instrument,
statement, request or document furnished to it hereunder and believed by the
Escrow Agent in good faith to be genuine and to have been signed or presented
by the proper person or party, without being required to determine the
authenticity or correctness of any fact stated therein or the propriety or
validity or the service thereof; (v) may assume that any person purporting to
give notice or make any statement or execute any document in connection with
the provisions hereof has been duly authorized to do so; (vi) shall not be
responsible for the identity, authority or rights of any person, firm or
company executing or delivering or purporting to execute or deliver this
Agreement or any Document or any funds deposited hereunder or any endorsement
thereon or assignment thereof; (vii) shall not be under any duty to give the
property held by Escrow Agent hereunder any greater degree of care than Escrow
Agent gives its own similar property; and (viii) may consult counsel
satisfactory to Escrow Agent (including, without limitation, Loeb & Loeb, LLP
or such other counsel of Escrow Agent's choosing), the opinion of such counsel
to be full and complete authorization and protection in respect of any action
taken, suffered or omitted by Escrow Agent hereunder in good faith and in
accordance with the opinion of such counsel.

            (b)   The Purchaser and the Company acknowledge that the Escrow
Agent is acting solely as a stakeholder at their request and that the Escrow
Agent shall not be liable for any action taken by Escrow Agent in good faith
and believed by Escrow Agent to be authorized or within the rights or powers
conferred upon Escrow Agent by this Agreement.  The Purchaser and the Company
hereby, jointly and severally, indemnify and hold harmless the Escrow Agent
and any of Escrow Agent's partners, employees, agents and representatives from
and against any and all actions taken or omitted to be taken by Escrow Agent
or any of them hereunder and any and all claims, losses, liabilities, costs,
damages and expenses suffered and/or incurred by the Escrow Agent arising in
any manner whatsoever out of the transactions contemplated by this Agreement
and/or any transaction related in any way hereto, including the fees of
outside counsel and other costs and expenses of defending itself against any
claims, losses, liabilities, costs, damages and expenses arising in any manner
whatsoever out the transactions contemplated by this Agreement and/or any
transaction related in any way hereto, except for such claims, losses,
liabilities, costs, damages and expenses incurred by reason of the Escrow
Agent's gross negligence or willful misconduct.  The Escrow Agent shall owe a
duty only to the Purchaser and Company under this Agreement and to no other
person.

            (c)   The Purchaser and the Company shall jointly and severally
reimburse the Escrow Agent for its reasonable out-of-pocket expenses
(including counsel fees (which counsel may be Loeb & Loeb LLP or such other
counsel of the Escrow Agent's choosing) incurred in connection with the
performance of its duties and responsibilities hereunder, which shall not
(subject to Section 4.1(b)) exceed $1,500.

            (d)   The Escrow Agent may at any time resign as Escrow Agent
hereunder by giving five (5) business days prior written notice of resignation
to the Purchaser and the Company.  Prior to the effective date of resignation
as specified in such notice, the Purchaser and Company will issue to the
Escrow Agent a Joint Instruction authorizing delivery of the Documents and the
Escrowed Payment to a substitute Escrow Agent selected by the Purchaser and
the Company.  If no successor Escrow Agent is named by the Purchaser and the
Company, the Escrow Agent may apply to a court of competent jurisdiction in
the State of New York for appointment of a successor Escrow Agent, and deposit
the Documents and the Escrowed Payment with the clerk of any such court and/or
otherwise commence an interpleader or similar action for a determination of
where to deposit the same.

            (e)   The Escrow Agent does not have and will not have any
interest in the Documents and the Escrowed Payment, but is serving only as
escrow agent, having only possession thereof.

            (f)   The Escrow Agent shall not be liable for any action taken or
omitted by it in good faith and reasonably believed by it to be authorized
hereby or within the rights or powers conferred upon it hereunder, nor for
action taken or omitted by it in good faith, and in accordance with advice of
counsel (which counsel may be Loeb & Loeb, LLP or such other counsel of the
Escrow Agent's choosing), and shall not be liable for any mistake of fact or
error of judgment or for any acts or omissions of any kind except to the
extent any such liability arose from its own willful misconduct or gross
negligence.

            (g)   This Agreement sets forth exclusively the duties of the
Escrow Agent with respect to any and all matters pertinent thereto and no
implied duties or obligations shall be read into this Agreement.

            (h)   The Escrow Agent shall be permitted to act as counsel for
the Purchaser or the Company, as the case may be, in any dispute as to the
disposition of the Documents and the Escrowed Payment, in any other dispute
between the Purchaser and the Company, whether or not the Escrow Agent is then
holding the Documents and/or the Escrowed Payment and continues to act as the
Escrow Agent hereunder.

            (i)   The provisions of this Section 4.1 shall survive the
resignation of the Escrow Agent or the termination of this Agreement.

     4.2.   Dispute Resolution; Judgments.  Resolution of disputes arising
under this Agreement shall be subject to the following terms and conditions:

            (a)   If any dispute shall arise with respect to the delivery,
ownership, right of possession or disposition of the Documents and/or the
Escrowed Payment, or if the Escrow Agent shall in good faith be uncertain as
to its duties or rights hereunder, the Escrow Agent shall be authorized,
without liability to anyone, to (i) refrain from taking any action other than
to continue to hold the Documents and the Escrowed Payment pending receipt of
a Joint Instruction from the Purchaser and Company, (ii) commence an
interpleader or similar action, suit or proceeding for the resolution of any
such dispute; and/or (iii) deposit the Documents and the Escrowed Payment with
any court of competent jurisdiction in the State of New York, in which event
the Escrow Agent shall give written notice thereof to the Purchaser and the
Company and shall thereupon be relieved and discharged from all further
obligations pursuant to this Agreement.  The Escrow Agent may, but shall be
under no duty to, institute or defend any legal proceedings which relate to
the Documents and the Escrowed Payment.  The Escrow Agent shall have the right
to retain counsel if it becomes involved in any disagreement, dispute or
litigation on account of this Agreement or otherwise determines that it is
necessary to consult counsel which such counsel may be Loeb & Loeb LLP or such
other counsel of the Escrow Agent's choosing.

            (b)   The Escrow Agent is hereby expressly authorized to comply
with and obey any Court Order.  In case the Escrow Agent obeys or complies
with a Court Order, the Escrow Agent shall not be liable to the Purchaser and
Company or to any other person, firm, company or entity by reason of such
compliance.

                            ARTICLE V
                         GENERAL MATTERS

     5.1.   Termination.  This escrow shall terminate upon disbursement of the
Escrowed Payment in accordance with the terms of this Agreement or earlier
upon the agreement in writing of the Purchaser and Company or resignation of
the Escrow Agent in accordance with the terms hereof.

     5.2.   Notices.  All notices, requests, demands and other communications
required or permitted hereunder shall be in writing and shall be deemed to
have been duly given one (1) day after being sent by telecopy (with copy
delivered by overnight courier, regular or certified mail):

            If to the Company, to:   DataLogic International, Inc.
                                     18301 Von Karman, Suite 250,
                                     Irvine, CA 92612
                                     Facsimile: (949) 260-0130

            With a copy to:          Richard O. Weed, Esq.
                                     Weed & Co. LLP
                                     4695 MacArthur Ct., Suite 1430
                                     Newport Beach, CA 92660
                                     Facsimile: (949) 475-9087

        (b) If to the Purchaser, to: LAURUS MASTER FUND, LTD.
                                     c/o Ironshore Corporate Services Ltd.
                                     P.O. Box 1234 G.T., Queensgate House,
                                     South Church Street
                                     Grand Cayman, Cayman Islands
                                     Fax: 212-541-4434
                                     Attention:  John Tucker, Esq.

        (c) If to the Escrow Agent, to: Loeb & Loeb LLP
                                        345 Park Avenue
                                        New York, New York 10154
                                        Fax:  (212) 407-4990
                                        Attention:  Scott J. Giordano, Esq.

or to such other address as any of them shall give to the others by notice
made pursuant to this Section 5.2.

     5.3.   Interest.  The Escrowed Payment shall not be held in an interest
bearing account nor will interest be payable in connection therewith.

     5.4.   Assignment; Binding Agreement.  Neither this Agreement nor any
right or obligation hereunder shall be assignable by any party without the
prior written consent of the other parties hereto.  This Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective
legal representatives, successors and assigns.

     5.5.   Invalidity.  In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal, or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be in any
way impaired thereby, it being intended that all of the rights and privileges
of the parties hereto shall be enforceable to the fullest extent permitted by
law.

     5.6.   Counterparts/Execution.  This Agreement may be executed in any
number of counterparts and by different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original,
but all such counterparts shall constitute but one and the same agreement.
This Agreement may be executed by facsimile transmission.

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

                                      COMPANY:

                                      DATALOGIC INTERNATIONAL, INC.

                                           /s/ Khanh Nguyen
                                      By:_________________________________
                                      Name:    Khanh Nguyen
                                      Title:   CFO

                                      PURCHASER:

                                      LAURUS MASTER FUND, LTD.

                                           /s/ David Grin
                                      By:_________________________________
                                      Name:    David Grin
                                      Title:   President

                                      ESCROW AGENT:

                                      LOEB & LOEB LLP

                                      By:_________________________________
                                      Name:
                                      Title:

               SCHEDULE A TO FUNDS ESCROW AGREEMENT

______________________________________________________________________________
PURCHASER                                       PRINCIPAL NOTE AMOUNT
______________________________________________________________________________
LAURUS MASTER FUND, LTD.,                       Term Note in an aggregate
c/o Ironshore Corporate Services Ltd.,          principal amount of $3,000,000
P.O. Box 1234 G.T., Queensgate House,
South Church Street, Grand Cayman,
Cayman Islands
Fax: 345-949-9877
_____________________________________________________________________________
TOTAL                                           $3,000,000
_____________________________________________________________________________

_____________________________________________________________________________
FUND MANAGER                                    CLOSING PAYMENT
_____________________________________________________________________________
LAURUS CAPITAL MANAGEMENT, L.L.C.               Closing payment payable in
825 Third Avenue, 14th Floor                    connection with investment by
New York, New York 10022                        Laurus Master Fund, Ltd. for
Fax: 212-541-4434                               which Laurus Capital
                                                Management, L.L.C. is the
                                                Manager.
______________________________________________________________________________
TOTAL                                           $117,000
______________________________________________________________________________

WARRANTS
______________________________________________________________________________
WARRANT RECIPIENT                               WARRANTS IN CONNECTION WITH
                                                OFFERING
______________________________________________________________________________
LAURUS MASTER FUND, LTD.                        Term Note Warrant exercisable
A Cayman Island corporation                     into 705,000 shares of common
c/o Ironshore Corporate Services Ltd.           stock of the Company issuable
P.O. Box 1234 G.T.                              in connection with the Term
Queensgate House, South Church Street           Note.
Grand Cayman, Cayman Islands
Fax: 345-949-9877
______________________________________________________________________________
TOTAL                                           Warrants exercisable into
                                                705,000 shares of common stock
                                                of the Company
_____________________________________________________________________________

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