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                                                                    EXHIBIT 10.2

IBM CREDIT CORPORATION

                             COLLATERALIZED GUARANTY

         In consideration of credit and financing accommodations granted or to
be granted by IBM Credit Corporation with an office located at 4000 Executive
Parkway, 3rd Floor, San Ramon, CA 94583 ("IBM Credit") to BSD Acquisition Corp.
("Borrower"), which is in the best interest of Priority Fulfillment Services,
Inc. ("Guarantor"), and for other good and valuable consideration received,
Guarantor jointly and severally guaranties to IBM Credit, from property held
separately, jointly or in community, the prompt and unconditional performance
and payment by Borrower of any and all obligations, liabilities, contracts,
mortgages, notes, trust receipts, secured transactions, inventory financing and
security agreements, and commercial paper on which Borrower is in any manner
obligated, heretofore, now, or hereafter owned, contracted or acquired by IBM
Credit ("Liabilities"), whether the Liabilities are individual, joint, several,
primary, secondary, direct, contingent or otherwise. Guarantor also agrees to
indemnify IBM Credit and hold IBM Credit harmless against any losses it may
sustain and expenses it may incur, suffer or be liable for as a result of or in
any way arising out of, following, or consequential to any transactions with or
for the benefit of Borrower. Capitalized terms used herein without definition
shall have the meaning described thereto in the Inventory and Working Capital
Financing Agreement dated September ____, 2001 among Borrower, Guarantor,
Business Supplies Distributors Holdings, LLC, Inventory Financing Partners, LLC,
and PFSweb, Inc. (as amended, modified and supplemented from time to time, the
"Financing Agreement").

If Borrower fails to pay or perform any Liabilities to IBM Credit when due, all
Liabilities to IBM Credit shall then be deemed to have become immediately due
and payable, and Guarantor shall then pay upon demand the full amount of all
sums owed to IBM Credit by Borrower, together with all expenses, including
reasonable attorney's fees.

The liability of Guarantor is direct and unconditional and shall not be affected
by any extension, renewal or other change in the terms of payment of any
security agreement or any other agreement between IBM Credit and Borrower, or
any change in the manner, place or terms of payment or performance thereof, or
the release, settlement or compromise of or with any party liable for the
payment or performance thereof, or the waiver of any default or event of default
under any financing agreement between IBM Credit and Borrower, or the release or
non-perfection of any security thereunder, any change in Borrower's financial
condition, or the interruption of business relations between IBM Credit and
Borrower. This Guaranty is and shall be deemed to be a continuing guaranty and
shall remain in full force and effect until the indefeasible payment in full of
the Liabilities and any other amounts payable under this Guaranty and the
cessation of all obligations of IBM Credit to extend credit to Borrower.
Guarantor acknowledges that its obligations hereunder are in addition to and
independent of any agreement or transaction between IBM Credit and Borrower or
any other person creating or reserving any lien, encumbrance or security
interest in any property of Borrower or any other person as security for any
obligation of Borrower. IBM Credit need not exhaust its rights or recourse
against Borrower or any other person or any security IBM Credit may have at any
time before being entitled to payment from Guarantor.

To secure payment of all of Guarantor's current and future debts and obligations
to IBM Credit, whether under this Guaranty or any other agreement between IBM
Credit and Guarantor and to secure the Liabilities, whether direct or
contingent, Guarantor does assign, pledge and give to IBM Credit a security
interest in all of Guarantor's personal property, whether now owned or hereafter
acquired or existing and wherever located, including the following: (a) all
inventory and equipment manufactured or sold by or bearing the trademark or
tradename of International Business Machines Corporation ("IBM") or any other
Authorized Supplier and all parts thereof, attachments, additions, accessories
and accessions thereto, all substitutions, repossessions, exchanges,
replacements and returns thereof, all price protection credits, rebates,
discounts and incentive payments relating to the foregoing, products and
proceeds thereof and documents therefor ("IBM Credit Inventory"); (b) all
accounts, chattel paper, instruments, negotiable documents, promissory notes,
general

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intangibles (including contract rights, software and licenses), deposit
accounts, commercial tort claims, intellectual property, investment property,
pledged notes, letter of credit rights, supporting obligations, obligations of
any kind owing to Guarantor, whether or not arising out of or in connection with
the sale or lease of goods or the rendering of services and all books, invoices,
documents and other records in any form evidencing or relating to any of the
foregoing; (c) all substitutions and replacements for all of the foregoing; and
(d) all products or proceeds of all of the foregoing (all of the above assets
are defined pursuant to the provisions of Article 9 of the Uniform Commercial
Code as in effect in the State of New York and are hereinafter referred to as
the "Collateral"). Collateral shall not include inventory and equipment of the
Guarantor that is not IBM Credit Inventory (as defined above). This security
interest is also granted to secure Guarantor's debts to all of IBM Credit's
affiliates.

In connection with any working capital financing Guarantor receives from another
financial institution or commercial lender ("Lender"), Guarantor may request
that IBM Credit subordinate its interest in the Collateral (excluding the IBM
Credit Inventory) and IBM Credit will not unreasonably withhold its consent
provided that:

         (1) No default or event of default exists;

         (2) IBM Credit and Lender shall have entered into a subordination
         agreement in form and substance satisfactory to IBM Credit in all
         respects in its sole discretion;

         (3) IBM Credit shall be satisfied that the IBM Credit Inventory shall
         be segregated from the other property of Guarantor and its customers
         and IBM Credit shall have a first perfected priority security interest
         in the IBM Credit Inventory; and

         (4) The books and records maintained on behalf of the Borrower shall be
         kept separately from Guarantor's other books and records and Guarantor
         shall have conspicuously noted on the Borrower's books and records that
         such books and records are the property of Borrower.

IBM Credit shall have the right, but not the obligation, from time to time, as
IBM Credit in its sole discretion may determine, and all without any advance
notice to Guarantor, to: (a) examine the Collateral; (b) appraise it as
security; (c) verify its condition and nonuse; (d) verify that all Collateral
has been properly accounted for and this Agreement complied with, and (e)
assess, examine, check and make copies of any and all of Guarantor's books,
records and files.

If Guarantor does not comply with any of the terms of this Agreement or the
Financing Agreement, or Guarantor fails to fulfill any obligation to IBM Credit
or any of IBM Credit's affiliates under any other agreement between IBM Credit
and Guarantor or between Guarantor and any of IBM Credit's affiliates, or
Guarantor becomes insolvent or ceases to do business as a going concern, or a
bankruptcy, insolvency proceeding, arrangement or reorganization is filed by or
against Guarantor, or any of Guarantor's property is attached or seized, or a
receiver is appointed for Guarantor, or Guarantor commits any act which impairs
the prospect of full performance or satisfaction of Guarantor's obligations to
IBM Credit, or Guarantor shall lose any franchise, permission, license or right
to conduct its business, or Guarantor misrepresents its financial condition or
organizational structure, or whenever IBM Credit deems the debt or Collateral to
be insecure:

         a) IBM Credit may call all or any part of the amount Guarantor or
         Borrower owes IBM Credit or IBM Credit's affiliates due and payable
         immediately, if permitted by applicable law, together with court costs
         and all costs and expenses of IBM Credit's repossession and collection
         activity, including, but not limited to reasonable attorney's fees.

         b) Guarantor will hold and keep the Collateral in trust, in good order
         and repair, for IBM Credit's benefit and shall not exhibit or sell it.

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         c) Upon IBM Credit's demand, Guarantor will immediately deliver the
         Collateral to IBM Credit, in good order and repair, at a place
         reasonably convenient to IBM Credit, together with all related
         documents; or IBM Credit may, in IBM Credit's sole discretion and
         without demand, take immediate possession of the Collateral, together
         with all related documents.

         d) Guarantor waives and releases: (i) any and all claims and causes of
         action which Guarantor may now or ever have against IBM Credit as a
         result of any possession, repossession, collection or sale by IBM
         Credit of any of the Collateral, notwithstanding the effect of such
         possession, repossession, collection or sale upon Guarantor's business;
         (ii) all rights of redemption from any such sale; and (iii) the benefit
         of all valuation, appraisal and exemption laws. If IBM Credit seeks to
         take possession of any of the Collateral by replevin or other court
         process, Guarantor irrevocably waives any notice, bonds, surety and
         security relating thereto required by any statute, court rule or
         otherwise as an incident to such possession and any demand for
         possession of the Collateral prior to the commencement of any suit or
         action to recover possession thereof.

         e) Guarantor appoints IBM Credit or any person IBM Credit may delegate
         as its duly authorized Attorney-in-Fact (without notifying Guarantor)
         to do, in IBM Credit's sole discretion, any of the following: (i) sell,
         assign, transfer, negotiate or pledge any and all accounts, chattel
         paper, or contract rights; (ii) endorse Guarantor's name on any and all
         notes, checks, drafts, or other forms of exchange received as payment
         on any accounts, chattel paper and contract rights, for deposit in IBM
         Credit's account; (iii) grant any extension, rebate or renewal on any
         and all accounts, chattel paper or contract rights, or enter into any
         settlement thereof; (iv) demand, collect and receive any and all
         amounts due on accounts, chattel paper and contract rights; and (v)
         exercise any and all rights Guarantor has in the Collateral.

         f) In the event Guarantor brings any action or asserts any claim
         against IBM Credit which arises out of this Agreement, any other
         agreement or any of Guarantor's and IBM Credit's business dealings, in
         which Guarantor does not prevail, Guarantor agrees to pay IBM Credit
         all court costs and all costs and expenses of IBM Credit's defense of
         such action of claim including, but not limited to, reasonable
         attorney's fees.

IBM Credit may also declare a default under this Agreement and exercise any and
all rights and remedies available herein, if, in IBM Credit's sole discretion,
IBM Credit determines that the Collateral has decreased in value, and Guarantor
has been unable to either: (a) provide IBM Credit with additional Collateral in
a form and substance satisfactory to IBM Credit; or (b) pay the Shortfall Amount
as defined in the Financing Agreement.

IBM Credit has and will always possess all the rights and remedies of a secured
party under law, and IBM Credit's rights and remedies are and will always be
cumulative. Guarantor acknowledges and agrees that the Collateral is the subject
of widely distributed standard price quotations and is customarily sold in a
recognized market. Guarantor agrees that a private sale by IBM Credit of any of
the Collateral to a dealer in those types of Collateral is a commercially
reasonable sale. Further, Guarantor agrees that IBM Credit's delivery of any of
the Collateral to a distributor or manufacturer, with a request that it
repurchase Collateral, as provided in any repurchase agreement with IBM Credit,
is a commercially reasonable disposition or sale.

Guarantor promises that (a) the Collateral is and shall remain free from all
claims and liens except IBM Credit's; (b) Guarantor shall defend the Collateral
against all other claims and demands; and (c) Guarantor will notify IBM Credit
before it signs, or authorizes the signing of any financing statement regardless
of its coverage. Guarantor authorizes IBM Credit to file with any filing office
such financing statements, amendments, addenda and other records showing IBM
Credit as secured party and Guarantor as the debtor and identifying IBM Credit's
security interest in the Collateral that IBM Credit deems necessary to perfect

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and maintain IBM Credit's security interest in the Collateral. Guarantor will
execute any and all documents IBM Credit may request to confirm or perfect IBM
Credit's title or security interest in the Collateral.

Guarantor represents and covenants that the first paragraph of this Guaranty
states the exact name of Guarantor as set forth in its charter or other
organizational record. Guarantor represents that it is duly organized under the
laws of the State of Delaware and the organization document creating Guarantor
has been filed in the appropriate office of such State. In addition, Guarantor's
organizational identification number assigned by its State of organization is as
follows: ______________________. Guarantor's principal place of business is
located at 500 North Central Expressway, Plano, TX 75074 and Guarantor
represents that its business is conducted as a CORPORATION. Guarantor will not
change its name, location (as defined in Article 9 of the U.C.C.) or State of
organization. Guarantor shall provide IBM Credit at least thirty (30) days prior
written notice of any change in its form of ownership, management, and of any
change in its principal place of business, or any additions or discontinuances
of other business locations. The Collateral shall be kept at Guarantor's
principal place of business and at the following addresses:

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until all sums owed IBM Credit are paid in full. Guarantor will immediately
notify IBM Credit if the Collateral is kept at any other address. This paragraph
is for IBM Credit's informational purposes only, and is not in any way or manner
intended to limit the extent of IBM Credit's security interest in the
Collateral. Guarantor and its predecessors have done and do business only under
the following names: Priority Fulfillment Services, Inc. and PFSweb, Inc.

Guarantor will pay all taxes, license fees, assessments and charges on the
Collateral when due. Guarantor will be responsible for any loss of Collateral
for any reason whatsoever. Guarantor will keep the Collateral insured for its
full insurable value against loss or damage by fire, wind, theft and for
combined additional coverage, including vandalism and malicious mischief, and
for other risks as IBM Credit may require. Guarantor will obtain insurance under
such terms and in amounts as IBM Credit may specify, from time to time, in
companies acceptable to IBM Credit, with a loss-payee or mortgagee clause
payable to IBM Credit to the extent of any loss to the Collateral and containing
a waiver of all defenses against Guarantor that is acceptable to IBM Credit.
Guarantor further agrees to provide IBM Credit with written evidence of the
required insurance coverage and loss-payee or mortgagee clause. Guarantor
assigns to IBM Credit all sums not in excess of the unpaid debt owed IBM Credit,
and directs any insurance company to make payment directly to IBM Credit to be
applied to the unpaid debt owed IBM Credit. Guarantor further grants IBM Credit
an irrevocable power of attorney to endorse any draft and sign and file all of
the necessary papers, forms and documents to initiate and settle any and all
claims with respect to the Collateral. If Guarantor fails to pay any of the
above-referenced costs, charges or any insurance premiums, or if it fails to
insure the Collateral, IBM Credit may pay such costs, charges or any insurance
premiums, and the amounts paid shall be considered an additional debt owed by
Guarantor to IBM Credit. Guarantor will promptly notify IBM Credit of any loss,
theft or destruction of or damage to any of the Collateral.

Guarantor will not rent, lease, lend, demonstrate, pledge, create a security
interest in, transfer or secrete any of the Collateral, or use the Collateral
for any purpose other than exhibition, without IBM Credit's prior written
consent.

This Guaranty is assignable, shall be construed liberally in IBM Credit's favor,
and shall inure to the benefit of and bind IBM Credit's and Guarantor's
respective successors, personal representatives and assigns, and also benefit
any of IBM Credit's existing or future affiliates that may extend credit to
Borrower.

If Borrower hereafter is incorporated, acquired by a corporation, dissolved, or
otherwise undergoes any change in its management, ownership, identity, or
organizational structure, this Guaranty shall continue to extend to any
Liabilities of the Borrower or such resulting corporation, dissolved
corporation, or new or changed legal entity, or identity to IBM Credit.

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Guarantor waives: notice of the acceptance of this Guaranty, and of presentment,
demand and protest; notices of nonpayment, nonperformance and dishonor; notices
of amount of indebtedness of Borrower outstanding at any time; notices of the
number and amount of advances made by IBM Credit to Borrower in reliance on this
Guaranty; notice of the financial condition of Borrower or any other guarantor
or any change therein; notice of the release of collateral for the Liabilities,
of any other guaranty, pledge or suretyship agreement or any collateral
therefor; notices of any legal proceedings or other efforts to collect against
Borrower; notice of any recoupment, setoff, administrative freeze on Borrower's
credit or assets; notice and any opportunity for a hearing as to any prejudgment
remedies; and any other demands and notices required by law. Guarantor further
waives all rights to assert against IBM Credit any right of recoupment, setoff,
and all claims, defenses, and counterclaims against IBM Credit or Borrower,
including any defense based on the lack of good faith. To the extent permitted
by law, Guarantor also waives any and all rights in and notices or demands
relating to any Collateral now or hereafter securing any of the Liabilities. All
waivers by Guarantor herein shall survive any termination or revocation of this
Guaranty.

Guarantor authorizes IBM Credit to sell at public or private sale or otherwise
realize upon the Collateral now or hereafter securing any of the Liabilities, in
such manner and upon such terms and conditions as IBM Credit deems best, all
without advertisement or notice to Borrower, Guarantor, or any third parties.
Guarantor further authorizes IBM Credit to deal with the proceeds of such
Collateral as provided in IBM Credit's agreement with Borrower, without
prejudice to IBM Credit's claim for any deficiency and free from any right or
redemption on the part of Borrower, Guarantor or any third parties, which right
or redemption is hereby waived together with every formality prescribed by
custom or by law in relation to any such sale or other realization.

Guarantor further agrees that all of its right, title and interest in, to and
under any loans, notes, debts and all other liabilities and obligations
whatsoever owed by Borrower to Guarantor, whether heretofore or hereafter
created or incurred and for whatever amount, and all security therefor, shall be
now and hereafter at all times fully subordinated to all Liabilities. Guarantor
will not ask, demand or sue for, or take or receive payment of, all or any part
of such loans, notes, debts or any other liabilities or obligations whatsoever
or any security therefor, until and unless all of the Liabilities are paid,
performed and fully satisfied except as expressly permitted by the Financing
Agreement and provided no default or event of default exists. In addition, until
such time that the Liabilities are indefeasibly paid in full, Guarantor
irrevocably waives, for the benefit of IBM Credit, any and all rights which it
presently has, or may hereafter have, whether by virtue of any payment or
payments hereunder or otherwise, to be subrogated to the rights of IBM Credit
against the Borrower with respect to any such indebtedness of the Borrower to
IBM Credit.

Guarantor has made an independent investigation of the financial condition of
Borrower and gives this Guaranty based on that investigation and not upon any
representations made by IBM Credit. Guarantor acknowledges that it has access to
current and future Borrower financial information which will enable Guarantor to
continuously remain informed of Borrower's financial condition. Guarantor also
consents to and agrees that the obligations under this Guaranty shall not be
affected by IBM Credit's subsequent increases or decreases in the credit line
that IBM Credit may grant to Borrower; substitutions, exchanges or releases of
all or any part of the Collateral now or hereafter securing any of the
Liabilities; sales or other dispositions of any or all of the Collateral now or
hereafter securing any of the Liabilities without demands, advertisement or
notice of the time or place of the sales or other dispositions; realizing on the
Collateral to the extent IBM Credit, in IBM Credit's sole discretion, deems
proper; or purchases of all or any part of the Collateral for IBM Credit's own
account.

This Guaranty and any and all obligations, liabilities, terms and provisions
herein shall survive any and all bankruptcy or insolvency proceedings, actions
and/or claims brought by or against Borrower, whether such proceedings, actions
and/or claims are federal and/or state.

This Guaranty is submitted by Guarantor to IBM Credit (for IBM Credit's
acceptance or rejection thereof) at IBM Credit's above specified office; as an
offer by Guarantor to guaranty the credit and financial accommodations provided
by IBM Credit to Borrower. If accepted, this Guaranty shall be deemed to have

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been made at IBM Credit's above-specified This Guaranty and all obligations
pursuant thereto, shall office. be governed and controlled as to interpretation,
enforcement, validity, construction, effect and, in all other respects by the
laws of the State of New York without giving effect to the principles of
conflicts of laws. Guarantor, to induce IBM Credit to accept this Guaranty,
agrees that all actions or proceedings arising directly or indirectly in
connection with, out of, related to or from this Guaranty may be litigated, at
IBM Credit's sole discretion and election, in courts within the State of New
Guarantor consents and York. submits to the jurisdiction of any local, state or
federal court located within that state. Guarantor waives any right to transfer
or change the venue of any litigation brought against Guarantor by IBM Credit in
accordance with this paragraph.

Any delay by IBM Credit, or IBM Credit's successors, affiliates or assigns in
exercising any or all rights granted IBM Credit under this Guaranty shall not
operate as a waiver of those rights. Furthermore, any failure by IBM Credit,
IBM Credit's successors, affiliates or assigns, to exercise any or all rights
granted IBM Credit under this Guaranty shall not operate as a waiver of IBM
Credit's right to exercise any or all of them later.

This document contains the full agreement of the parties concerning the guaranty
of Borrower's Liabilities and can be varied only by a document signed by all of
the parties hereto.

THE PARTIES AGREE THAT ANY ACTION, SUIT OR PROCEEDING, RELATING DIRECTLY OR
INDIRECTLY TO THIS GUARANTY, OR THE RELATIONSHIP BETWEEN IBM CREDIT AND
GUARANTOR, WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT
A JURY. THUS, THE PARTIES HEREBY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH
ACTION, SUIT OR PROCEEDING.

WITNESS                                    PRIORITY FULFILLMENT SERVICES, INC.
                                           GUARANTOR

---------------------------------          By:
                                               ---------------------------------
Print Name:                                Print Name:
           ----------------------                      -------------------------
                                           Title:
                                                  ------------------------------
                                           Date:
(SEAL)                                           -------------------------------

                                           Guarantor's Address:

                                           --------------------------

                                           -----------------, ---- -------
ATTEST:

---------------------------------
          Secretary

Print Name:
            ---------------------

                                           IBM CREDIT CORPORATION

                                           By:
                                               ---------------------------------
                                           Print Name:
                                                       -------------------------
                                           Title:
                                                  ------------------------------

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                                                                    EXHIBIT 10.3

IBM CREDIT CORPORATION

                                    GUARANTY
                                (BY CORPORATION)

         In consideration of credit and financing accommodations granted or to
be granted by IBM Credit Corporation with an office located at 4000 Executive
Parkway, Third Floor, San Ramon, CA 94583 ("IBM Credit") to BSD Acquisition
Corp. ("Customer") under a financing agreement between IBM Credit and Customer,
which is in the best interest of PFSweb, Inc. ("Guarantor"), and for other good
and valuable consideration received, Guarantor guaranties to IBM Credit the
prompt and unconditional performance and payment by Customer of any and all
obligations, liabilities, contracts, mortgages, notes, trust receipts, secured
transactions, inventory financing and security agreements, and commercial paper
on which Customer is in any manner obligated, heretofore, now, or hereafter
owned, contracted or acquired by IBM Credit ("Liabilities"), whether the
Liabilities are individual, joint, several, primary, secondary, direct,
contingent or otherwise. Guarantor also agrees to indemnify IBM Credit and hold
IBM Credit harmless against any losses IBM Credit may sustain and expenses it
may incur, suffer or be liable for as a result of or in any way arising out of,
following, or consequential to any transactions with or for the benefit of
Customer.

         If Customer fails to pay or perform any Liabilities to IBM Credit when
due, all Liabilities to IBM Credit shall then be deemed to have become
immediately due and payable, and Guarantor shall then pay upon demand the full
amount of all sums owed to IBM Credit by Customer, together with all expenses,
including reasonable attorney's fees.

         The liability of Guarantor is direct and unconditional and shall not be
affected by any extension, renewal or other change in the terms of payment of
any security agreement or any other agreement between IBM Credit and Customer,
or any change in the manner, place or terms of payment or performance thereof,
or the release, settlement or compromise of or with any party liable for the
payment or performance thereof, the release or non-perfection of any security
thereunder, any change in Customer's financial condition, or the interruption of
business relations between IBM Credit and Customer. This Guaranty is and shall
be deemed to be a continuing guaranty and shall remain in full force and effect
until the indefeasible payment in full of the Liabilities and any other amounts
payable under this Guaranty and the cessation of all obligations of IBM Credit
to extend credit to Customer. Guarantor acknowledges that its obligations
hereunder are in addition to and independent of any agreement or transaction
between IBM Credit and Customer or any other person creating or reserving any
lien, encumbrance or security interest in any property of Customer or any other
person as security for any obligation of Customer. IBM Credit need not exhaust
its rights or recourse against Customer or any other person or any security it
may have at any time before being entitled to payment from Guarantor.

         This Guaranty is assignable, shall be construed liberally in IBM
Credit's favor, and shall inure to the benefit of and bind IBM Credit's and
Guarantor's respective successors, personal representatives and assigns, and
also benefit any of IBM Credit's existing or future affiliates that may extend
credit to Customer.

         If Customer hereafter is incorporated, acquired by a corporation,
dissolved, or otherwise undergoes any change in its management, ownership,
identity or organizational structure, this Guaranty shall continue to extend to
any Liabilities of the Customer or such resulting corporation, dissolved
corporation, or new or changed legal entity or identity to IBM Credit.

         Guarantor waives: notice of the acceptance of this Guaranty, and of
presentment, demand and protest; notices of nonpayment, nonperformance, any
right of contribution from other guarantors, and dishonor; notices of amount of
indebtedness of Customer outstanding at any time; notices of the number and
amount of advances made by IBM Credit to Customer in reliance on this Guaranty;
notices of any legal proceedings against Customer; notice and hearing as to any
prejudgment remedies; and any other demands and notices required by law.
Guarantor further waives all rights of set-off and all counterclaims against IBM
Credit or Customer.

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Guarantor also waives any and all rights in and notices or demands relating to
any collateral now or hereafter securing any of the Liabilities, including, but
not limited to, all rights, notices or demands relating, whether directly or
indirectly, to the sale or other disposition of any or all of such collateral or
the manner of such sale or other disposition. All waivers by Guarantor herein
shall survive any termination or revocation of this Guaranty. Guarantor
authorizes IBM Credit to sell at public or private sale or otherwise realize
upon the collateral now or hereafter securing any of the Liabilities, in such
manner and upon such terms and conditions as IBM Credit deems best, all without
advertisement or notice to Customer, Guarantor, or any third parties. Guarantor
further authorizes IBM Credit to deal with the proceeds of such collateral as
provided in IBM Credit's agreement with Customer, without prejudice to IBM
Credit's claim for any deficiency and free from any right or redemption on the
part of Customer, Guarantor or any third parties, which right or redemption is
hereby waived together with every formality prescribed by custom or by law in
relation to any such sale or other realization.

         Guarantor further agrees that all of its right, title and interest in,
to and under any loans, notes, debts and all other liabilities and obligations
whatsoever owed by Customer to Guarantor, whether heretofore or hereafter
created or incurred and for whatever amount, and all security therefor, shall be
now and hereafter at all times fully subordinated to all Liabilities. Guarantor
will not ask, demand or sue for, or take or receive payment of, all or any part
of such loans, notes, debts or any other liabilities or obligations whatsoever
or any security therefor, until and unless all of the Liabilities are paid,
performed and fully satisfied.

         Until such time the Liabilities are indefeasibly paid in full, the
Guarantor hereby irrevocably waives for the benefit of IBM Credit, any and all
rights which it presently has, or may hereafter have, whether by virtue of any
payment or payments hereunder or otherwise, to be subrogated to the rights of
IBM Credit against the Customer with respect to any such indebtedness of the
Customer to IBM Credit.

         Guarantor has made an independent investigation of the financial
condition of Customer and gives this Guaranty based on that investigation and
not upon any representations made by IBM Credit. Guarantor acknowledges that it
has access to current and future Customer financial information which will
enable Guarantor to continuously remain informed of Customer's financial
condition. Guarantor also consents to and agrees that the obligations under this
Guaranty shall not be affected by IBM Credit's: subsequent increases or
decreases in the credit line that IBM Credit may grant to Customer;
substitutions, exchanges or releases of all or any part of the collateral now or
hereafter securing any of the Liabilities; sales or other dispositions of any or
all of the collateral now or hereafter securing any of the Liabilities without
demands, advertisement or notice of the time or place of the sales or other
dispositions; realizing on the collateral to the extent IBM Credit, in its sole
discretion, deems proper; or purchases of all or any part of the collateral for
IBM Credit's own account.

         This Guaranty and any and all obligations, liabilities, terms and
provisions herein shall survive any and all bankruptcy or insolvency
proceedings, actions and/or claims brought by or against Customer, whether such
proceedings, actions and/or claims are federal and/or state.

         This Guaranty is submitted by Guarantor to IBM Credit (for IBM Credit's
acceptance or rejection thereof) at IBM Credit's above specified office; as an
offer by Guarantor to guaranty the credit and financial accommodations provided
by IBM Credit to Customer. If accepted, this Guaranty shall be deemed to have
been made at IBM Credit's above specified office. This Guaranty and all
obligations pursuant thereto, shall be governed and controlled as to
interpretation, enforcement, validity, construction, effect and in all other
respects by the laws of the State of New York without giving effect to the
principles of conflicts of laws. Guarantor, to induce IBM Credit to accept this
Guaranty, agrees that all actions or proceedings arising directly or indirectly
in connection with, out of, related to or from this Guaranty may be litigated,
at IBM Credit's sole discretion and election, in courts within the State of New
York. Guarantor consents and submits to the jurisdiction of any local, state or
federal court located within that state. Guarantor waives any right to transfer
or change the venue of any litigation brought against Guarantor by IBM Credit in
accordance with this paragraph.

         Any delay by IBM Credit, or its successors, affiliates or assigns in
exercising any or all rights granted IBM Credit under this Guaranty shall not
operate as a waiver of those rights. Furthermore, any failure by IBM

                                  Page 2 of 4

<PAGE>
Credit, its successors, affiliates or assigns, to exercise any or all rights
granted IBM Credit under this Guaranty shall not operate as a waiver of IBM
Credit's right to exercise any or all of them later.

         This document contains the full agreement of the parties concerning the
guaranty of Customer's Liabilities and can be varied only by a document signed
by all the parties hereto.

         THE PARTIES AGREE THAT ANY ACTION, SUIT OR PROCEEDING RELATING DIRECTLY
OR INDIRECTLY TO THIS GUARANTY OR THE RELATIONSHIP BETWEEN IBM CREDIT AND
GUARANTOR, WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT
A JURY. THUS, THE PARTIES HEREBY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH
ACTION, SUIT OR PROCEEDING.

WITNESS:                                      PFSWEB, INC.

------------------------------

(Print Name                   )        By:
            -----------------              --------------------------------
                                              Name:
                                                    ----------------------------
                                              Title:
(SEAL)                                               ---------------------------

                                              Date: September ____, 2001

                                              Guarantor's Address:

                                              ----------------------------------

                                              ----------------------------------

ATTEST:

--------------------------------------
               (Secretary)

(Print Name)
             -------------------------

                                   Page 3 of 4

<PAGE>
                             SECRETARY'S CERTIFICATE

         I hereby certify that I am the Secretary of the following named
corporation and that execution of the above Guaranty was ratified, approved and
confirmed by the Shareholders at a meeting, if necessary, and pursuant to a
resolution of the Board of Directors of the corporation at a meeting of the
Board of Directors duly called, and which is currently in effect, which
resolution was duly presented, seconded and adopted and reads as follows:

         "BE IT RESOLVED that any officer of this corporation is hereby
authorized to execute a guaranty of the obligations of BSD Acquisition Corp.
("Customer") to IBM Credit Corporation on behalf of the corporation, which
instrument may contain such terms as the above named persons may see fit
including, but not limited to a waiver of notice of acceptance of this guaranty;
presentment; demand; protest; notices of nonpayment, nonperformance, dishonor,
the amount of indebtedness of Customer outstanding at any time, any legal
proceedings against Customer, and any other demands and notices required by law;
any right of contribution from other guarantors; and all set-offs and
counterclaims."

         IN WITNESS WHEREOF and as Secretary of the named corporation I have
hereunto set my hand and affixed the corporate seal on this ______ day of
September , 2001.

                                                        PFSWEB, INC.

(SEAL)                                                  ------------------------
                                                              (Secretary)

                                   Page 4 of 4

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