Document:

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                                                                    EXHIBIT 4.36

THIS WARRANT (THIS "WARRANT") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAW. NEITHER THIS
WARRANT NOR ANY WARRANT SHARES ISSUABLE UPON EXERCISE HEREOF NOR ANY INTEREST OR
PARTICIPATION HEREIN OR THEREIN MAY BE SOLD, ASSIGNED, MORTGAGED, PLEDGED,
HYPOTHECATED, ENCUMBERED OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE
ACT AND APPLICABLE STATE SECURITIES LAWS.

                 INTEGRATED BUSINESS SYSTEMS AND SERVICES, INC.,

                                     WARRANT

                       Original Issue Date: June 28, 2004

      This Warrant is issued in connection with and pursuant to that certain
Common Stock Purchase Agreement (the "PURCHASE AGREEMENT") dated as of June 28,
2004, by and between INTEGRATED BUSINESS SYSTEMS AND SERVICES, INC., a South
Carolina corporation (the "Company") and FUSION CAPITAL FUND II, LLC (the
"Buyer").

      FOR VALUE RECEIVED, the Buyer, the registered holder hereof, or its
permitted assigns (the "Holder"), is entitled to purchase from the Company,
during the period specified in this Warrant, 937,500 fully paid and
non-assessable shares (subject to adjustment as hereinafter provided) of Common
Stock (the "WARRANT SHARES"), of the Company at the purchase price per share
provided in Section 1.2 of this Warrant (the "WARRANT EXERCISE PRICE"), all
subject to the terms and conditions set forth in this Warrant. All terms not
otherwise defined herein shall have the meaning ascribed to them in the Purchase
Agreement.

SECTION 1. PERIOD FOR EXERCISE AND EXERCISE PRICE.

      1.1 PERIOD FOR EXERCISE. The right to purchase shares of Warrant Shares
represented by this Warrant shall be immediately exercisable, and shall expire
at 5:00 p.m., Chicago local time, June 28, 2009 (the "EXPIRATION DATE"). From
and after the Expiration Date this Warrant shall be null and void and of no
further force or effect whatsoever.

      1.2 WARRANT EXERCISE PRICE. The Warrant Exercise Price per share of
Warrant Shares shall be $0.40 per share (subject to adjustment as hereinafter
provided).

SECTION 2. EXERCISE OF WARRANT.

<PAGE>

      2.1 MANNER OF EXERCISE. The Holder may exercise this Warrant, in whole or
in part, immediately, but not after the Expiration Date, during normal business
hours on any Trading Day by surrendering this Warrant to the Company at the
principal office of the Company, accompanied by a Warrant Exercise Form in
substantially the form annexed hereto duly executed by the Buyer and by payment
of the Warrant Exercise Price for the number of shares of Warrant Shares for
which this Warrant is then exercisable, either (i) in immediately available
funds, (ii) by delivery of an instrument evidencing indebtedness owing by the
Company to the Holder in the appropriate amount, (iii) by authorizing the
Company to retain shares of Common Stock which would otherwise be issuable upon
exercise of this Warrant (in accordance with Section 2.4 hereof) or (iv) in a
combination of (i), (ii) or (iii) above, provided, however, that in no event
shall the Holder be entitled to exercise this Warrant for a number of Warrant
Shares in excess of that number of Warrant Shares which, upon giving effect to
such exercise, would cause the aggregate number of shares of Common Stock
beneficially owned by the Holder to exceed 9.9% of the outstanding shares of the
Common Stock following such exercise. For purposes of the foregoing proviso, the
aggregate number of shares of Common Stock beneficially owned by the Holder
shall include the number of shares of Common Stock issuable upon exercise of
this Warrant with respect to which determination of such proviso is being made,
but shall exclude the shares of Common Stock which would be issuable upon (i)
exercise of the remaining, unexercised Warrants beneficially owned by the Holder
and (ii) exercise or conversion of the unexercised or unconverted portion of any
other securities of the Company beneficially owned by the Holder subject to a
limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended. The Holder may waive
the foregoing limitation by written notice to the Company upon not less than 61
days prior written notice (with such waiver taking effect only upon the
expiration of such 61 day notice period).

      2.2 WHEN EXERCISE EFFECTIVE. Each exercise of this Warrant shall be deemed
to have been effected on the day on which all requirements of Section 2.1 shall
have been met with respect to such exercise. At such time the person in whose
name any certificate for shares of Warrant Shares shall be issuable upon such
exercise shall be deemed for all corporate purposes to have become the Holder of
record of such shares, regardless of the actual delivery of certificates
evidencing such shares.

      2.3 DELIVERY OF STOCK CERTIFICATES. As soon as practicable after each
exercise of this Warrant, and in any event no later than 3 days after such
exercise, the Company at its expense will issue Warrant Shares via credit to the
Buyer's account with DTC for the number of Warrant Shares to which such Buyer is
entitled upon such Buyer's submission of the applicable Warrant Exercise Form
or, if the Transfer Agent is not participating in The DTC Fast Automated
Securities Transfer Program and DWAC system, issue and surrender to the address
as specified in the Warrant Exercise Form, a certificate, registered in the name
of the Buyer or its designee, for the number of shares of Common Stock to which
the Buyer shall be entitled to upon such exercise.

<PAGE>

      2.4 CASHLESS EXERCISE. The Holder may, by providing notice thereof to the
Company along with the Warrant Exercise Form, elect to exercise the Warrant for
a number of Warrant Shares determined in accordance with the following formula:

            X = Y(A-B)
                ------
                   A

            Where:

            X = The number of Warrant Shares to be issued to the Holder.

            Y = The number of Warrant Shares purchasable under this Warrant (at
            the date of such exercise).

            A = The fair market value of one share of Common Stock (or other
            security for which the Warrant is then exercisable at the date of
            such exercise).

            B = Exercise Price (as adjusted to the date of such exercise).

For purposes of this Section 2.4, the "fair market value" per share shall be the
closing sale price of the Common Stock for the one Trading Day immediately prior
to the notice of exercise of the Warrant.

      SECTION 3. ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES. The Warrant
Exercise Price and the kind of securities issuable upon exercise of the Warrant
shall be adjusted from time to time as follows:

      3.1 SUBDIVISION OR COMBINATION OF SHARES (STOCK SPLITS). If the Company at
any time effects a subdivision or combination of the outstanding Common Stock
(through a stock split or otherwise), the number of shares of Warrant Shares
shall be increased, in the case of a subdivision, or the number of shares of
Warrant Shares shall be decreased, in the case of a combination, in the same
proportions as the Common Stock is subdivided or combined, in each case
effective automatically upon, and simultaneously with, the effectiveness of the
subdivision or combination which gives rise to the adjustment.

      3.2 STOCK DIVIDENDS. If the Company at any time pays a dividend, or makes
any other distribution, to holders of Common Stock payable in shares of Common
Stock, or fixes a record date for the determination of holders of Common Stock
entitled to receive a dividend or other distribution payable in shares of Common
Stock, then the number of shares of Warrant Shares in effect immediately prior
to such action shall be proportionately increased so that the Holder hereof may
receive upon exercise of the Warrant the aggregate number of shares of Common
Stock which he or it would have owned immediately following such action if the
Warrant had been exercised immediately prior to such action. The adjustment
shall become effective immediately as of the date the Company shall take a
record of the holders of its Common Stock for the purpose of receiving such
dividend or distribution (or if no such record is taken, as of the effectiveness
of such dividend or distribution).

<PAGE>

      3.3 RECLASSIFICATION, CONSOLIDATION OR MERGER. If at any time, as a result
of:

      (a) a capital reorganization or reclassification (other than a
subdivision, combination or dividend provided for elsewhere in this Section 3),
or

      (b) a merger or consolidation of the Company with another corporation
(whether or not the Company is the surviving corporation),

the Common Stock issuable upon exercise of the Warrants shall be changed into or
exchanged for the same or a different number of shares of any class or classes
of stock of the Company or any other corporation, or other securities
convertible into such shares, then, as a part of such reorganization,
reclassification, merger or consolidation, appropriate adjustments shall be made
in the terms of the Warrants (or of any securities into which the Warrants are
exercised or for which the Warrants are exchanged), so that:

      (y) the Holders of Warrants or of such substitute securities shall
thereafter be entitled to receive, upon exercise of the Warrants or of such
substitute securities, the kind and amount of shares of stock, other securities,
money and property which such Holders would have received at the time of such
capital reorganization, reclassification, merger, or consolidation, if such
Holders had exercised their Warrants immediately prior to such capital
reorganization, reclassification, merger, or consolidation, and

      (z) the Warrants or such substitute securities shall thereafter be
adjusted on terms as nearly equivalent as may be practicable to the adjustments
theretofore provided in this Section 3.3.

No consolidation or merger in which the Company is not the surviving corporation
shall be consummated unless the surviving corporation shall agree, in writing,
to the provisions of this Section 3.3. The provisions of this Section 3.3 shall
similarly apply to successive capital reorganizations, reclassifications,
mergers and consolidations.

      3.4 OTHER ACTION AFFECTING COMMON STOCK. If at any time the Company takes
any action affecting its Common Stock, other than an action described in any of
Sections 3.1 - 3.3 which, in the opinion of the Board of Directors of the
Company (the "BOARD"), would have an adverse effect upon the exercise rights of
the Warrants, the Warrant Exercise Price or the kind of securities issuable upon
exercise of the Warrants, or both, shall be adjusted in such manner and at such
time as the Board may in good faith determine to be equitable in the
circumstances; provided, however, that the purpose of this Section is to prevent
the Company from taking any action which has the effect of diluting the number
of shares of Warrant Shares issuable upon exercise of this Warrant.

      3.5 NOTICE OF ADJUSTMENT EVENTS. Whenever the Company contemplates the
occurrence of an event which would give rise to adjustments under this Section
3, the Company shall mail to each Warrant Holder, at least 15 days prior to the
record date with respect to such event or, if no record date shall be
established, at least 15 days prior to

<PAGE>

such event, a notice specifying (i) the nature of the contemplated event, and
(ii) the date on which any such record is to be taken for the purpose of such
event, and (iii) the date on which such event is expected to become effective,
and (iv) the time, if any is to be fixed, when the holders of record of Common
Stock (or other securities) shall be entitled to exchange their shares of Common
Stock (or other securities) for securities or other property deliverable in
connection with such event.

      3.6 NOTICE OF ADJUSTMENTS. Whenever the kind or number of securities
issuable upon exercise of the Warrants, or both, shall be adjusted pursuant to
Section 3, the Company shall deliver a certificate signed by its Chief Executive
Officer and by its Chief Financial Officer, setting forth, in reasonable detail,
the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated (including a description of the basis on
which the Board made any determination hereunder), and the Warrant Exercise
Price and the kind of securities issuable upon exercise of the Warrants after
giving effect to such adjustment, and shall cause copies of such certificate to
be mailed (by first class mail postage prepaid) to each Warrant Holder promptly
after each adjustment.

      SECTION 4. RESERVATION OF STOCK, ETC. The Company covenants and agrees
that it will at all times have authorized, reserve and keep available, solely
for issuance and delivery upon the exercise of this Warrant, the number of
shares of Warrant Shares from time to time issuable upon the exercise of this
Warrant. The Company further covenants and agrees that this Warrant is, and any
Warrants issued in substitution for or replacement of this Warrant and all
Warrant Shares, will upon issuance be duly authorized and validly issued and, in
the case of Warrant Shares, upon issuance will be fully paid and non-assessable
and free from all preemptive rights of any stockholder, and from all taxes,
liens and charges with respect to the issue thereof (other than transfer taxes)
and, if the Common Stock of the Company is then listed on any national
securities exchanges (as defined in the Exchange Act of 1934, as amended (the
"EXCHANGE ACT")) or quoted on NASDAQ, shall be, subject to the restrictions set
forth in Section 5, duly listed or quoted thereon, as the case may be. In the
event that the number of authorized but unissued shares of such Common Stock
shall not be sufficient to effect the exercise of this entire Warrant into
Warrant Shares, then in addition to such other remedies as shall be available to
the Holder of this Warrant, the Company shall promptly take such corporate
action as may be necessary to increase its authorized but unissued shares of
such Common Stock to such number of shares as shall be sufficient for such
purpose.

SECTION 5. OWNERSHIP, TRANSFER AND SUBSTITUTION OF WARRANTS.

5.1 OWNERSHIP OF WARRANTS. The Company may treat the person in whose name any
Warrant is registered on the register kept at the principal office of the
Company as the owner and Holder thereof for all purposes, notwithstanding any
notice to the contrary, but in all events recognizing any transfers made in
accordance with the terms of this Warrant.

      5.2 TRANSFER AND EXCHANGE OF WARRANTS. Upon the surrender of any

<PAGE>

Warrant, properly endorsed, for registration of transfer or for exchange at the
principal office of the Company, the Company at its expense will execute and
deliver to the Holder thereof, upon the order of such Holder, a new Warrant or
Warrants of like tenor, in the name of such Holder or as such Holder may direct,
for such number of shares with respect to each such Warrant, the aggregate
number of shares in any event not to exceed the number of shares for which the
Warrant so surrendered had not been exercised.

      5.3 REGISTRATION RIGHTS. THE HOLDER OF THIS WARRANT IS ENTITLED TO CERTAIN
REGISTRATION RIGHTS WITH RESPECT TO THE WARRANT SHARES ISSUABLE UPON EXERCISE
THEREOF. SAID REGISTRATION RIGHTS ARE SET FORTH IN A REGISTRATION RIGHTS
AGREEMENT BY AND BETWEEN THE BUYER AND THE COMPANY. if the registration
statement contemplated in the registration rights agreement is not effective at
the time of any issuance and the shares are not exempt from registration under
Rule 144, the Warrant Shares shall be issued in certificated form and shall bear
the following restrictive legend:

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
      SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY
      NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
      AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS,
      OR AN OPINION OF HOLDER'S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION
      IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR
      UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

      5.4 EXEMPTION FROM REGISTRATION. If an opinion of Buyer's counsel provides
that registration is not required for the proposed exercise or transfer of this
Warrant or the proposed transfer of the Warrant Shares and that the proposed
exercise or transfer in the absence of registration would require the Company to
take any action including executing and filing forms or other documents with the
Securities and Exchange Commission (the "SEC") or any state securities agency,
or delivering to the Holder any form or document in order to establish the right
of the Holder to effectuate the proposed exercise or transfer, the Company
agrees promptly, at its expense, to take any such action; and provided, further,
that the Company will reimburse the Holder in full for any expenses (including
but not limited to the fees and disbursements of such counsel, but excluding
brokers' commissions) incurred by the Holder or owner of Warrant Shares on his,
her or its behalf in connection with such exercise or transfer of the Warrant or
transfer of Warrant Shares.

SECTION 6. NO RIGHTS OR LIABILITIES AS SHAREHOLDER. Nothing contained in this
Warrant shall be construed as conferring upon the Holder hereof any rights as a
shareholder of the Company or as imposing any liabilities on such holder to
purchase any securities or as a shareholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.

<PAGE>

SECTION 7. RULE 144 SALES. At the request of any Holder who proposes to sell
securities in compliance with Rule 144 of the SEC, the Company will (i)
forthwith furnish to such Holder a written statement of compliance with the
filing requirements of the SEC as set forth in Rule 144, as such rules may be
amended from time to time and (ii) make available to the public and such Holder
such information as will enable the Holder to make sales pursuant to Rule 144.

SECTION 8. MISCELLANEOUS.

      8.1 AMENDMENT AND WAIVER. This Warrant may be amended with, and only with,
the written consent of the Company and the Holder. Any waiver of any term,
covenant, agreement or condition contained in this Warrant shall not be deemed a
waiver of any other term, covenant, agreement or condition, and any waiver of
any default in any such term, covenant, agreement or condition shall not be
deemed a waiver of any later default thereof or of any default of any other
term, covenant, agreement or condition.

      8.2 REPRESENTATIONS AND WARRANTIES TO SURVIVE CLOSING. All
representations, warranties and covenants contained herein shall survive the
execution and delivery of this Warrant and the issuance of any Warrant Shares
upon the exercise hereof.

      8.3 SEVERABILITY. In the event that any court or any governmental
authority or agency declares all or any part of any Section of this Warrant to
be unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any other Section of this Warrant, and in the event that only a
portion of any Section is so declared to be unlawful or invalid, such
unlawfulness or invalidity shall not serve to invalidate the balance of such
Section.

      8.4 BINDING EFFECT; NO THIRD PARTY BENEFICIARIES. All provisions of this
Warrant shall be binding upon and inure to the benefit of the parties and their
respective heirs, legatees, executors, administrators, legal representatives,
successors, and permitted transferees and assigns. No person other than the
holder of this Warrant and the Company shall have any legal or equitable right,
remedy or claim under or in respect of, this Warrant.

      8.5 NOTICES. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Warrant must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Trading Day after deposit with
a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

<PAGE>

           If to the Company:

                     Integrated Business Systems and Services, Inc.
                     1601 Shop Road, Suite E
                     Columbia, South Carolina 29201
                     Telephone: 803-736-5595
                     Facsimile: 803-736-7735
                     Attention: Chief Executive Officer

           With a copy to:

                     Parker Poe Adams & Bernstein
                     401 S. Tryon Street, Suite 3000
                     Charlotte, NC 28202
                     Telephone: 704-335-9020
                     Facsimile: 704-335-4485
                     Attention: Doug Harmon

           If to the Buyer:

                     Fusion Capital Fund II, LLC
                     222 Merchandise Mart Plaza, Suite 9-112
                     Chicago, IL 60654
                     Telephone: 312-644-6644
                     Facsimile: 312-644-6244
                     Attention: Steven G. Martin

           If to the Transfer Agent:

                     Pacific Corporate Trust Company
                     625 Howe Street, 10th Floor
                     Vancouver, BC
                     V6C 3B8

                     Telephone: 604-689-9853
                     Facsimile: 604-689-8144
                     Attention: Deena Kouwenhoven

or at such other address and/or facsimile number and/or to the attention of such
other person as the recipient party has specified by written notice given to
each other party three (3) Trading Days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender's facsimile machine containing the time,
date, and recipient facsimile number or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.

      8.6 TAXES, COSTS AND EXPENSES. The Company covenants and agrees that it
will pay when due and payable any and all federal, state and local taxes (other
than

<PAGE>

income taxes) and any other costs and expenses which may be payable in respect
of the preparation, issuance, delivery, exercise, surrender or transfer of this
Warrant pursuant to the terms of this Warrant or the issuance of any shares of
Warrant Shares as a result thereof. If any suit or action is instituted or
attorneys employed to enforce this Warrant or any part thereof, the Company
promises and agrees to pay all costs and expenses associated therewith,
including reasonable attorneys' fees and court costs.

      8.7 GOVERNING LAW; JURISDICTION; JURY TRIAL. The corporate laws of the
State of South Carolina shall govern all issues concerning the relative rights
of the Company and its shareholders. All other questions concerning the
construction, validity, enforcement and interpretation of this Warrant shall be
governed by the internal laws of the State of Illinois, without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of
Illinois or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of Illinois. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of Chicago, for the adjudication of any dispute
hereunder or under the other Transaction Documents or in connection herewith or
therewith, or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

      8.8 LOSS OF WARRANT. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) of indemnification in
form and substance acceptable to the Company in its reasonable discretion, and
upon surrender and cancellation of this Warrant, if mutilated, the Company shall
execute and deliver a new Warrant of like tenor and date.

      8.9 ENTIRE AGREEMENT. This Warrant, the Purchase Agreement and the
Registration Rights Agreement of even date herewith represent the entire
agreement and understanding between the parties concerning the subject matter
hereof and supercede all prior and contemporaneous agreements, understandings,
representations and warranties with respect thereto.

<PAGE>

      8.10 HEADINGS. The headings used herein are used for convenience only and
are not to be considered in construing or interpreting this Warrant.

                                                COMPANY:

                                                INTEGRATED BUSINESS SYSTEMS AND
                                                SERVICES, INC.

                                                By:    /s/ George E. Mendenhall
                                                       -------------------------
                                                Name:  George E. Mendenhall
                                                Title: Chief Executive Officer

<PAGE>

                              WARRANT EXERCISE FORM

                                                       Date:______________, 200_

INTEGRATED BUSINESS SYSTEMS AND SERVICES, INC.,
_______________
_______________
Attention: ________________

Ladies and Gentlemen:

The undersigned, being the registered holder of your Warrant for the purchase of
_______________ Warrant Shares issued ____________, 2004 accompanying this
letter, hereby irrevocably exercises such Warrant for ____________ shares of
Warrant Shares (as defined in said Warrant), and herewith makes payment therefor
[via "cash-less exercise"] in accordance with the Warrant, and requests that
such shares of Warrant Shares be issued in the name of, and delivered to FUSION
CAPITAL FUND II, LLC, at the address shown below the signature line hereof.

If said number of shares shall not be all the shares issuable upon exercise of
the attached Warrant, a new Warrant is to be issued in the name of the
undersigned for the balance remaining of such shares less any fraction of a
share paid in cash.

FUSION CAPITAL FUND II, LLC
BY: FUSION CAPITAL PARTNERS, LLC

By:_________________________
Name:
Title:

Fusion Capital Fund II, LLC
222 Merchandise Mart Plaza, Suite 9-112
Chicago, IL 60654<PAGE>

                                  [IBSS LOGO]
                             1601 SHOP ROAD, SUITE E
                             COLUMBIA, S.C. 29201
                             (803) 736.5595

                                                                   EXHIBIT 10.16

July 12, 2004

The Scott Group
Steve Scott
27 Mill Farm Road
Stoughton, MA  02072

Dear Steve,

Following up on our conversations and emails from last week and over the weekend
I just wanted to confirm in writing our discussion. As you are aware, IBSS would
like to modify the Amended and Restated Statement of Work between IBSS and the
Scott Group dated October 2, 2003 (the "Agreement") effective this date, subject
to Board approval.

When IBSS and The Scott Group began our joint path together last fall we had a
mutual expectation of what could be achieved both in revenues and investments to
allow IBSS to pursue a positive growth path. To date those expectations have not
been achieved for whatever reason.

IBSS recognizes that timing may be a factor in not yet achieving some of the
objectives that The Scott Group has proposed to IBSS. IBSS wants to recognize
these efforts, but believes that it is not in the best interests of IBSS to
continue under the current arrangement.

Although certain introductions The Scott Group has made of IBSS to potential
revenue producing companies namely; Arthur Blank, Xybernaut and Universal Power
Group have not yet generated any revenue for IBSS, they may have set in motion
activity that could bring significant revenue.

Following our conversations I have discussed the situation with some of our
staff, investors and board members. IBSS wants to recognize the ongoing efforts
by the Scott Group for IBSS and the future benefits possible to IBSS. One way of
doing this would be to utilize some of the stock that has been set aside for the
Scott Group in the Agreement and not possible to be utilized under the terms of
the Agreement, and pay out the months remaining under the contract that have not
yet been paid (June, July, August, and September) in stock.

For the two months that are past due (June and July) IBSS will pay in stock in
lieu of cash at the rate of 20 cents per share valuation. IBSS would continue
the contract for the last two months (August and September) at the same rate. At
that price the $40,000 for June through September will convert to a total of
200,000 shares of stock. The above plus the 12,500 shares for August (completing
the 10 months of 12,500 shares) would cause to be issued a total of 212,500
shares of stock to the Scott Group for the balance due under the contract. (The
monthly shares through July that are due, a total of 62,500 have already been
sent to you.) The Board of Directors and I believe this would be a fair
settlement of the contract.

In exchange, we expect that the Scott Group will continue to engender good will
on behalf of IBSS among Arthur Blank, Xybernaut, Universal Power Group and other
possible strategic partners and continue to do its best efforts at achieving our
mutual objectives as set forth in the Agreement.

<PAGE>

We appreciate your efforts on our behalf and hope that we will be able to
continue to work together on a mutually agreeable basis. If the above meets with
your approval please indicate acceptance by signing and returning a copy of this
letter to IBSS. Thank you for your understanding in our current cash short
situation.

Sincerely,

/s/ George E. Mendenhall

George E. Mendenhall
President and Chief Executive Office

The Scott Group accepts the above changes in the terms of the Agreement

/s/ Steven Scott
By Steven Scott for the Scott Group

Dated:  July 13, 2004

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