Document:

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                                                                   EXHIBIT 10.3

IBM CREDIT CORPORATION

                          AMENDED AND RESTATED GUARANTY
                                (BY CORPORATION)

     PFSweb, Inc. ("Guarantor") executed a Guaranty dated September 27, 2001
(the "Prior Guaranty") in favor of IBM Credit Corporation, having an office
located at 4000 Executive Parkway, Third Floor, San Ramon, CA 94583 ("IBM
Credit"). IBM Credit and Guarantor wish to amend and restate the Prior Guaranty
on the terms and conditions set forth herein. In consideration of credit and
financing accommodations granted or to be granted by IBM Credit to Supplies
Distributors, Inc. (formerly BSD Acquisition Corp.) ("Customer") under a
financing agreement between IBM Credit and Customer, which is in the best
interest of 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 Amended and Restated
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 Amended and Restated 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 Amended and Restated Guaranty is assignable by IBM Credit, 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. Guarantor shall not assign this Amended and
Restated Guaranty or its obligations hereunder without the prior written consent
of IBM Credit.

     If Customer hereafter is incorporated, acquired by a corporation,
dissolved, or otherwise undergoes any change in its management, ownership,
identity or organizational structure, this Amended and Restated 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 Amended and Restated
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 Amended and Restated Guaranty; notices of any legal proceedings against
Customer; notice and hearing as to any

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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. 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 Amended and Restated 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 Amended and Restated 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 Amended and Restated 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 Amended and Restated 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 Amended and Restated 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 Amended and
Restated Guaranty shall be deemed to have been made at IBM Credit's above
specified office. This Amended and Restated Guaranty and all obligations
pursuant thereto, shall be governed and controlled as to interpretation,
enforcement, validity, construction, and 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 Amended and
Restated Guaranty, agrees that all actions or proceedings arising directly or
indirectly in connection with, out of, related to or from this Amended and
Restated 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.

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

Notwithstanding anything contained in any document to the contrary, it is
understood and agreed that the rights and claims of IBM Credit under the Prior
Guaranty continue hereunder and the obligations of Guarantor under the Prior
Guaranty constitute Liabilities hereunder.

     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 AMENDED AND RESTATED 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: Thomas J. Madden
                                               -----------------
                                          Title: CFO
                                                ----
(SEAL)
                                          Date: March 29, 2002

                                          Guarantor's Address:

                                          500 North Central Exp.
                                          ----------------------
                                          Suite 500
                                          ---------
                                          Plano, TX 75074
                                          ---------------

ATTEST:

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

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

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                             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 Supplies Distributors, Inc.
(formerly 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 Amended and Restated 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 29th day of March,
2002.

                                     PFSWEB, INC.

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

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                                                                   EXHIBIT 10.4

IBM CREDIT CORPORATION

                              AMENDED AND RESTATED
                      NOTES PAYABLE SUBORDINATION AGREEMENT

IBM CREDIT CORPORATION
4000 Executive Parkway, Third Floor
San Ramon, CA  94583

Ladies and/or Gentlemen:

     Supplies Distributors, Inc. (formerly BSD Acquisition Corp.), with its
principal place of business at 500 North Central Expressway, Plano, TX 75074
("SDI"), is/may become further indebted to Priority Fulfillment Services, Inc.
("PFS"). PFS represents that no part of said indebtedness has been assigned to
or subordinated in favor of any other person, firm or corporation, other than
pursuant to the Notes Payable Subordination Agreement, dated as of March 29,
2002 by and between PFS and Congress Financial Corporation (Southwest)
("Congress") ("Notes Payable Subordination Agreement") and that PFS does not
hold any security therefor. Capitalized terms used herein without definition
shall have the meaning ascribed thereto in the Financing Agreement referred to
below.

     To induce IBM Credit to enter into a financing agreement with SDI (as
amended, modified, and supplemented from time to time, the "Financing
Agreement") and in consideration of any loans, advances, payments, extensions or
credit (including the extension or renewal, in whole or in part, of any
antecedent or other debt), benefits or financial accommodations heretofore or
hereafter made, granted or extended by IBM Credit or which IBM Credit has or
will become obligated to make, grant or extend to or for the account of SDI
whether under the Financing Agreement or otherwise, and in consideration of any
obligations heretofore or hereafter incurred by SDI to IBM Credit, whether under
the Financing Agreement or otherwise, PFS agrees to make the payment of the
indebtedness referred to in the first paragraph hereof and any and all other
present or future indebtedness of SDI to PFS together with any and all interest
accrued thereon (collectively the "Secondary Obligations") subject and
subordinate to the prior indefeasible payment in full of any and all debts,
obligations and liabilities of SDI to IBM Credit, whether absolute or
contingent, due or to become due, now existing or hereafter arising and whether
direct or acquired by IBM Credit by transfer, assignment or otherwise
(collectively the "Primary Obligations") and that SDI shall make no payments to
PFS until the Primary Obligations have been indefeasibly paid in full as
acknowledged in writing by IBM Credit. Notwithstanding the foregoing, SDI may
make payments in respect of the Secondary Obligations provided that (i) no
Default or Event of Default exists immediately prior to the payment of the
Secondary Obligations and that no Default or Event of Default will occur after
any payment in respect of the Secondary Obligations (ii) any such payment shall
not cause the total amount of the Secondary Obligations to be less than six
million five hundred thousand dollars ($6,500,000), and (iii) such payment would
be permitted under the Notes Payable Subordination Agreement. Except as provided
above, PFS agrees not to ask, demand, sue for, take or receive payment or
security for all or any part of the Secondary Obligations until and unless all
of the Primary Obligations shall have been fully paid and discharged.

     Upon any distribution of any assets of SDI whether by reason of sale,
reorganization, liquidation, dissolution, arrangement, bankruptcy, receivership,
assignment for the benefit of creditors, foreclosure or otherwise, IBM Credit
shall be entitled to receive payment in full of the Primary Obligations prior to
the payment of any part of the Secondary Obligations. To enable IBM Credit to
enforce its rights hereunder in any such proceeding or upon the happening of any
such event, IBM Credit or any person whom IBM Credit may from time to time
designate is hereby irrevocably appointed attorney-in-fact for PFS with full
power to act in the place and stead of PFS including the right to make, present,
file and vote proofs of claim against SDI on account of all or any part of said
Secondary Obligations as IBM Credit may deem advisable and to receive and
collect any and all payments made thereon and to apply the same on account of
the Primary Obligations. PFS will execute and deliver to such instruments as IBM
Credit may

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require to enforce each of the Secondary Obligations, to effectuate said power
of attorney and to effect collection of any and all dividends or other payments
which may be made at any time on account thereof.

     While this instrument remains in effect, PFS will not assign to or
subordinate in favor of any other person, firm or corporation, (except for
Congress subject to terms of the Intercreditor Agreement dated the date hereof
between Congress and IBM Credit) any right, claim or interest in or to the
Secondary Obligations or commence or join with any other creditor in commencing
any bankruptcy, reorganization or insolvency proceeding against SDI. IBM Credit
may at any time, in its discretion, renew or extend the time of payment of all
or any portion of the Primary Obligations or waive or release any collateral
which may be held therefor and IBM Credit may enter into such agreements with
SDI as IBM Credit may deem desirable without notice to or further assent from
PFS and without adversely affecting IBM Credit's rights hereunder in any manner
whatsoever.

     In furtherance of the foregoing and as collateral security for the payment
and discharge in full of any and all of the Primary Obligations, PFS hereby
transfers and assigns to IBM Credit the Secondary Obligations and all collateral
security therefor to which PFS now is or may at any time be entitled and all
rights under all guarantees thereof and agrees to deliver to IBM Credit endorsed
in blank all notes or other instruments now or hereafter evidencing said
Secondary Obligations. IBM Credit may file one or more financing statements
concerning any security interest hereby created without the signature of PFS
appearing thereon.

     The within instrument is and shall be deemed to be a continuing
subordination and shall be and remain in full force and effect until all Primary
Obligations have been performed and paid in full and IBM Credit's commitment, if
any, under the Financing Agreement has been terminated.

This Agreement amends and restates the Notes Payable Subordination Agreement
dated September 27, 2001 among the parties hereto.

Dated                      .
      ---------------------
                                    PRIORITY FULFILLMENT SERVICES, INC.

                                    By:
                                       ----------------------------------------
                                    Name:  Thomas J. Madden
                                           ----------------
                                    Title: CFO
                                           ---
                                           500 North Central Expressway
                                           Plano, TX 75074

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To:  IBM Credit Corporation

     SDI hereby acknowledge notice of the within and foregoing subordination and
agree to be bound by all the terms, provisions and conditions thereof. SDI
further agrees not to repay all or any part of the Secondary Obligations, or to
issue any note or other instrument evidencing the same or to grant any
collateral security therefor without IBM Credit's prior written consent.

                                        SUPPLIES DISTRIBUTORS, INC.

                                        By:
                                           ------------------------------------
                                        Name:  Joseph Farrell
                                               --------------
                                        Title: President/CEO
                                               --------------

ACCEPTED:

IBM CREDIT CORPORATION

By:
   ----------------------------------------
Name:  John M. White
       -------------
Title: Director of Global Credit Operations
       ------------------------------------

ACKNOWLEDGMENT OF SUBORDINATION

--------------------------          )
                           )SS
--------------------------          )

     On the 29th day of March, 2002, appeared before me ______________________
to me known to be the individual described in and who executed the foregoing
instrument, and who acknowledged to me that the same was executed as his or her
free and voluntary act for the uses and purposes therein set forth.

                                           ------------------------------------
                                                      (Notary Public)
My Commission Expires:
             ,
------------- -----

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