Document:

Exhibit 10.1

Exhibit 10.2

IBM Credit
Corporation

AGREEMENT FOR WHOLESALE FINANCING

(SECURITY AGREEMENT)

        This
Agreement for Wholesale Financing - Security Agreement (as amended, supplemented
or otherwise modified from time to time, this “Agreement”) dated as of
January 5, 2001(replacing the same agreement dated as of November 27,
2000) is by and between IBM Credit Corporation, a Delaware corporation,
with a place of business at 1500 RiverEdge Parkway, Atlanta, GA 30358 (“IBM
Credit”), and Information Technology Services, Inc., a New York
corporation, (“Customer”). This Agreement replaces that Inventory and
Working Capital Financing Agreement between the IBM Credit and Customer (as
amended, modified or supplemented from time to time) dated September 24, 1996. 

        In
the course of Customer’s business, Customer acquires products and wants IBM
Credit to finance Customer’s purchase of such products under the following
terms and conditions: 

1.     IBM Credit may in
its sole discretion from time to time decide the amount of credit IBM Credit
extends to Customer, notwithstanding any prior course of conduct between IBM
Credit and Customer. IBM Credit may combine all of its advances to make one debt
owed by Customer. 

2.     IBM Credit may in
its sole discretion decide the amount of funds, if any, IBM Credit will advance
on any products Customer may seek to acquire. Customer agrees that any decision
to finance products will not be binding on IBM Credit until such time as the
funds are actually advanced by IBM Credit. 

3.     In the course of
Customer’s operations, Customer intends to purchase from persons approved
in writing by IBM Credit for the purpose of this Agreement (the “Authorized
Suppliers”) computer hardware and software products manufactured or
distributed by or bearing any trademark or trade name of such Authorized
Suppliers (the “Approved Inventory”). When IBM Credit advances funds,
IBM Credit may send Customer a Statement of Transaction or other statement. If
IBM Credit does, Customer will have acknowledged the debt to be an account
stated and Customer will have agreed to the terms set forth on such statement
unless Customer notifies IBM Credit in writing of any question or objection
within seven (7) days after such statement is mailed to Customer. 

4.     To secure payment
of all of Customer’s current and future obligations to IBM Credit whether
under this Agreement, any guaranty that Customer now or hereafter executes, or
any other agreement between Customer and IBM Credit, whether direct or
contingent, Customer grants IBM Credit a security interest in all of
Customer’s inventory, equipment, fixtures, accounts, contract rights,
chattel paper, instruments, reserves, documents of title, deposit accounts and
general intangibles, whether now owned or hereafter acquired, and all
attachments, accessories, accessions, substitutions and/or replacements thereto
and all proceeds thereof. All of the above assets are defined pursuant to the
provisions of Article 9 of the Uniform Commercial Code and are hereinafter
collectively referred to as the “Collateral”. This security interest
is also granted to secure Customer’s obligations to all of IBM
Credit’s affiliates. Customer will hold all of the Collateral financed by
IBM Credit, and the proceeds thereof, in trust for IBM Credit and Customer will
immediately account for and remit directly to IBM Credit all such proceeds when
payment is required under the terms set forth in the billing statement or as
otherwise provided in this Agreement. IBM Credit may directly collect any amount
owed to Customer from Authorized Suppliers with respect to the Collateral and
credit Customer with all such sums received by IBM Credit from Authorized
Suppliers. IBM Credit’s title, lien or security interest will not be
impaired by any payments Customer makes to the seller or anyone else or by
Customer’s failure or refusal to account to IBM Credit for proceeds. 

5.     Customer's principal place of business is located at:

	     20 Precision Drive, Shirley, NY 11967 

	    (Number and Street)                                               (City, County, State, Zip Code)

and Customer represents
that its business is conducted as a ___ SOLE PROPRIETORSHIP, ___ PARTNERSHIP XXX
CORPORATION, __ LIMITED LIABILITY COMPANY (check applicable term). Customer will
notify IBM Credit, in writing, prior to any change in Customer’s identity,
name, form of ownership or management, and of any change in Customer’s
principal place of business, or any additions or discontinuances of other
business locations. The Collateral will be kept at Customer’s principal
place of business. Customer will notify IBM Credit, in writing, thirty (30) days
prior to moving any of the Collateral to any other address. Customer and
Customer’s predecessors have done business during the last six (6) months
only under the following names: 

This paragraph is not in
any manner intended to limit the extent of IBM Credit’s security interest
in the Collateral. 

6.     Customer
represents and covenants that the Collateral is and will remain free from all
claims and liens superior to IBM Credit’s unless otherwise agreed to by IBM
Credit in writing, and that Customer will defend the Collateral against all
other claims and demands. Customer will not sell, rent, lease, lend,
demonstrate, pledge, transfer or secrete any of the Collateral or use any of the
Collateral for any purpose other than exhibition and sale to buyers in the
ordinary course of business, without IBM Credit’s prior written consent.
Customer will execute all documents IBM Credit may request to confirm or perfect
IBM Credit’s security interest in the Collateral. Customer warrants and
represents that Customer is not in default in the payment of any principal,
interest or other charges relating to any indebtedness owed to any third party,
and no event has occurred, as of the effective date of this Agreement or as of
the date of any request by Customer to IBM Credit for financing in the future,
under the terms of any agreement, document, promissory note or other instrument,
which with or without the passage of time and/or the giving of notice
constitutes or would constitute an event of default thereunder. Customer will
promptly provide its year-end financial statement, in form and detail
satisfactory to IBM Credit, to IBM Credit within ninety (90) days after
Customer’s fiscal year ends and, if requested by IBM Credit, Customer will
also promptly provide Customer’s financial statement to IBM Credit after
each fiscal quarter within forty five (45) days. Customer represents and
covenants that each financial statement that Customer submits to IBM Credit will
be prepared according to generally accepted accounting principles in effect in
the United States from time to time, and is and will be correct and will
accurately represent Customer’s financial condition. Customer further
acknowledges IBM Credit’s reliance on the truthfulness and accuracy of each
financial statement that Customer submits to IBM Credit in IBM Credit’s
extension of various financial accommodations to Customer. 

7.     Customer will pay
all taxes, license fees, assessments and charges on the Collateral when due.
Customer will immediately notify IBM Credit of any loss, theft, or destruction
of or damage to any of the Collateral. Customer will be responsible for any
loss, theft or destruction or damage of Collateral. Customer will keep the
Collateral insured for its full insurable value against loss or damage under an
“all risk” insurance policy. Customer will obtain insurance under such
terms and in such amounts acceptable to IBM Credit, from time to time, with
companies acceptable to IBM Credit, with a lender 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 Customer that is acceptable to IBM Credit.
Customer agrees to provide IBM Credit with written evidence of the required
insurance coverage and lender loss-payee or mortgagee clause. Customer assigns
to IBM Credit all amounts owed to Customer under any insurance policy, and
Customer directs any insurance company to make payment directly to IBM Credit to
be applied to the unpaid obligations owed IBM Credit. Customer further grants
IBM Credit an irrevocable power of attorney to endorse any checks or drafts and
sign and file any of the papers, forms and documents required to initiate and
settle any insurance claims with respect to the Collateral. If Customer fails to
pay any of the above-referenced costs, charges, or insurance premiums, or if
Customer fails to insure the Collateral, IBM Credit may, but will not be
obligated to, pay such costs, charges and insurance premiums, and the amounts
paid will be considered an additional obligation owed by Customer to IBM Credit. 

8.     IBM Credit has
the right to enter upon Customer’s premises from time to time, as IBM
Credit in its sole discretion may determine for IBM Credit’s sole benefit,
and all without any advance notice to Customer, to: examine the Collateral;
appraise it as security; verify its condition and non-use; verify that all
Collateral have been properly accounted for; verify that Customer has complied
with all terms and provisions of this Agreement; and assess, examine, and make
copies of Customer’s books and records. Any collection by IBM Credit of any
amounts Customer owes at or during IBM Credit’s examination of the Collateral does not relieve Customer of its continuing obligation to pay
Customer’s obligations owed to IBM Credit in accordance with such terms. 

9.     Customer agrees
to immediately pay IBM Credit the full amount of the principal balance owed IBM
Credit on each item of Approved Inventory financed by IBM Credit at the time
such Approved Inventory is sold, lost, stolen, destroyed, or damaged, whichever
occurs first, unless IBM Credit has agreed in writing to provide financing to
Customer on other terms. Customer also agrees to provide IBM Credit, upon IBM
Credit’s request, an inventory report which describes all the Approved
Inventory in Customer’s possession (excluding any Approved Inventory
financed by IBM Credit under the Demonstration and Training Equipment Financing
Option). Regardless of the repayment terms set forth in any billing statement,
if IBM Credit determines, after conducting an inspection of all of
Customer’s inventory, that the current outstanding obligations owed by
Customer to IBM Credit exceeds the aggregate wholesale invoice price, net of all
applicable price reduction credits, of the Approved Inventory in Customer’s
possession that is new and in manufacturer sealed boxes and in which IBM Credit
has a perfected first priority security interest, Customer agrees to immediately
pay to IBM Credit an amount equal to the difference between such outstanding
obligations and the aggregate wholesale invoice price, net of all applicable
price reduction credits, of such Approved Inventory. Customer will make all
payments to IBM Credit according to the remit to instructions in the billing
statement. Any checks or other instruments delivered to IBM Credit to be applied
against Customer’s outstanding obligations will constitute conditional
payment until the funds represented by such instruments are actually received by
IBM Credit. IBM Credit may apply payments to reduce finance charges first and
then principal, irrespective of Customer’s instructions. Further, IBM
Credit may apply principal payments to the oldest (earliest) invoice for the
Approved Inventory financed by IBM Credit, or to such Approved Inventory which
is sold, lost, stolen, destroyed, damaged, or otherwise disposed of. If Customer
signs any instrument for any outstanding obligations, it will be evidence of
Customer’s obligation to pay and will not be payment. Any discount, rebate,
bonus, or credit for Approved Inventory granted to Customer by any Authorized
Supplier will not, in any way, reduce the obligations Customer owes IBM Credit,
until IBM Credit has received payment in good funds. 

10.     Customer will
pay IBM Credit finance charges on the total amount of credit extended to
Customer in the amount agreed to between Customer and IBM Credit from time to
time. The period of any financing will begin on the invoice date for the
Approved Inventory whether or not IBM Credit advances payment on such date. This
period will be included in the calculation of the annual percentage rate of the
finance charges. Such finance charges may be applied by IBM Credit to cover any
amounts expended for IBM Credit’s: appraisal and examination of the
Collateral; maintenance of facilities for payment; assistance in support of
Customer’s retail sales; IBM Credit’s commitments to Authorized
Suppliers to finance shipments of Approved Inventory to Customer; recording and
filing fees; expenses incurred in obtaining additional collateral or security;
and any costs and expenses incurred by IBM Credit arising out of the financing
IBM Credit extends to Customer. Customer also agrees to pay IBM Credit
additional charges which will include: late payment fees at a per annum rate
equal to the Prime Rate plus 6.5%; flat charges; charges for receiving
NSF checks from Customer; renewal charges; and any other charges agreed to by
Customer and IBM Credit from time to time. For purposes of this Agreement,
“Prime Rate” will mean the average of the rates of interest announced
by banks which IBM Credit uses in its normal course of business of determining
prime rate. Unless Customer hereafter otherwise agrees in writing, the finance
charges and additional charges agreed upon will be IBM Credit’s applicable
finance charges and additional charges for the class of Approved Inventory
involved prevailing from time to time at IBM Credit’s principal place of
business, but in no event greater than the highest rate from time to time
permitted by applicable law. If it is determined that amounts received from
Customer were in excess of such highest rate, then the amount representing such
excess will be considered reductions to the outstanding principal of IBM
Credit’s advances to Customer. IBM Credit will send Customer, at monthly or
other intervals, a statement of all charges due on Customer’s account with
IBM Credit. Customer will have acknowledged the charges due, as indicated on the
statement, to be an account stated, unless Customer objects in writing to IBM
Credit within seven (7) days after such statement is mailed to Customer. This
statement may be adjusted by IBM Credit at any time to conform to applicable law
and this Agreement. IBM Credit shall calculate any free financing period
utilizing a methodology that is consistent with the methodologies used for
similarly situated customers of IBM Credit. The Customer understands that IBM
Credit may not offer, may change or may cease to offer a free financing period
for the Customer’s purchases of Approved Inventory. If any Authorized
Supplier fails to provide payment of a finance charge for Customer, as agreed,
Customer will be responsible for and pay to IBM Credit all finance charges
billed to Customer’s account. 

11.     Any of the
following events will constitute an event of default by Customer under this
Agreement: Customer breaches any of the terms, warranties or representations
contained in this Agreement or in any other agreements between Customer and IBM
Credit or between Customer and any of IBM Credit’s affiliates; any
guarantor of Customer’s obligations to IBM Credit under this Agreement or
any other agreements breaches any of the terms, warranties or representations
contained in such guaranty or other agreements between such guarantor and IBM
Credit; any representation, statement, report or certificate made or delivered
by Customer or any of Customer’s owners, representatives, employees or
agents or by any guarantor to IBM Credit is not true and correct; Customer fails
to pay any of the liabilities or obligations owed to IBM Credit or any of IBM
Credit’s affiliates when due and payable under this Agreement or under any
other agreements between Customer and IBM Credit or between Customer and any of
IBM Credit’s affiliates; IBM Credit determines that IBM Credit is insecure
with respect to any of the Collateral or the payment of Customer’s
obligations owed to IBM Credit; Customer abandons the Collateral or any part
thereof; Customer or any guarantor becomes in default in the payment of any
indebtedness owed to any third party; a judgment issues on any money demand
against Customer or any guarantor; an attachment, sale or seizure is issued
against Customer or any of the Collateral; any part of the Collateral is seized
or taken in execution; the death of the undersigned if the business is operated
as a sole proprietorship, or the death of a partner if the business is operated
as a partnership, or the death of any guarantor; Customer ceases or suspends
Customer’s business; Customer or any guarantor makes a general assignment
for the benefit of creditors; Customer or any guarantor becomes insolvent or
voluntarily or involuntarily becomes subject to the Federal Bankruptcy Code,
state insolvency laws or any act for the benefit of creditors; any receiver is
appointed for any of Customer’s or any guarantor’s assets, or any
guaranty pertaining to Customer’s obligations to IBM Credit is terminated
for any reason whatsoever; any guarantor disclaims any obligations under any
guaranty; Customer loses any franchise, permission, license or right to sell or
deal in any Approved Inventory; Customer or any guarantor misrepresents its
respective financial condition or organizational structure; or IBM Credit
determines, in its sole discretion, that the Collateral, any other collateral
given to IBM Credit to secure Customer’s obligations to IBM Credit, any
guarantor’s guaranty, or Customer’s or any guarantor’s net worth
has decreased in value, and Customer has been unable, within the time period
prescribed by IBM Credit, to either provide IBM Credit with additional
collateral in a form and substance satisfactory to IBM Credit or reduce
Customer’s total obligations by an amount sufficient to satisfy IBM Credit.
Following an event of a default: 

          (a)
        IBM Credit may, at any time at IBM Credit’s election, without notice or
demand to Customer do any one or more of the following: declare all or any part
of the obligations Customer owes IBM Credit immediately due and payable,
together with all court costs and all costs and expenses of IBM Credit’s
repossession and collection activity, including, but not limited to, all
attorney’s fees; exercise any or all rights of a secured party under
applicable law; cease making any further financial accommodations or extending
any additional credit to Customer; and/or exercise any or all rights available
at law or in equity. All of IBM Credit’s rights and remedies are
cumulative. 

          (b)
        Customer will segregate, hold and keep the Collateral in trust, in good order
and repair, only for IBM Credit’s benefit, and Customer will not exhibit,
transfer, sell, further encumber, otherwise dispose of or use for any other
purpose whatsoever any of the Collateral. 

          (c)
        Upon IBM Credit’s oral or written demand, Customer will immediately deliver
the Collateral to IBM Credit, in good order and repair, at a place specified by
IBM Credit, together with all related documents; or IBM Credit may, in its sole
discretion and without notice or demand to Customer, take immediate possession
of the Collateral, together with all related documents. 

          (d)
        Customer waives and releases: any claims and causes of action which Customer may
now or ever have against IBM Credit as a direct or indirect result of any
possession, repossession, collection or sale by IBM Credit of any of the
Collateral and the benefit of all valuation, appraisal and exemption laws. If
IBM Credit seeks to take possession of any of the Collateral by court process,
Customer irrevocably waives any notice, bonds, surety and security relating
thereto required by any statute, court rule or otherwise. 

          (e)
        Customer appoints IBM Credit or any person IBM Credit may delegate as
Customer’s duly authorized Attorney-In-Fact to do, in IBM Credit’s
sole discretion, any of the following in the event of a default: 

endorse Customer’s
name on any notes, checks, drafts or other forms of exchange constituting
Collateral or received as payment on any Collateral for deposit in IBM
Credit’s account; sell, assign, transfer, negotiate, demand, collect,
receive, settle, extend or renew any amounts due on any of the Collateral; and
exercise any rights Customer has in the Collateral. 

If Customer brings any
action or asserts any claim against IBM Credit which arises out of this
Agreement, any other agreement or any of the business dealings between IBM
Credit and Customer, in which Customer does not prevail, Customer agrees to pay
IBM Credit all costs and expenses of IBM Credit’s defense of such action or
claim including, but not limited to, all attorney’s fees. If IBM Credit
fails to exercise any of IBM Credit’s rights or remedies under this
Agreement, such failure will in no way or manner waive any of IBM Credit’s
rights or remedies as to any past, current or future default. 

12.     Customer agrees
that if IBM Credit conducts a private sale of any Collateral by soliciting bids
from ten (10) or more other dealers or distributors in the type of Collateral
repossessed by or returned to IBM Credit hereunder, any sale by IBM Credit of
such property will be deemed to be a commercially reasonable disposition under
the Uniform Commercial Code. IBM Credit agrees that commercially reasonable
notice of any public or private sale will be deemed given to Customer if IBM
Credit sends Customer a notice of sale at least seven (7) days prior to the date
of any public sale or the time after which a private sale will be made. If IBM
Credit disposes of any such Collateral other than as herein contemplated, the
commercial reasonableness of such sale will be determined in accordance with the
provisions of the Uniform Commercial Code as adopted by the state whose laws
govern this Agreement. 

Customer agrees that IBM
Credit does not warrant the Approved Inventory. Customer will pay IBM Credit in
full even if the Approved Inventory is defective or fails to conform to any
warranties extended by any third party. Customer’s obligations to IBM
Credit will not be affected by any dispute Customer may have with any third
party. Customer will not assert against IBM Credit any claim or defense Customer
may have against any third party. Customer will indemnify and hold IBM Credit
harmless against any claims or defenses asserted by any buyer of the Approved
Inventory by reason of: the condition of any Approved Inventory; any
representations made about the Approved Inventory; or for any and all other
reasons whatsoever. 

13.     Customer grants
to IBM Credit a power of attorney authorizing any of IBM Credit’s
representatives to: execute or endorse on Customer’s behalf any documents,
financing statements and instruments evidencing Customer’s obligations to
IBM Credit; supply any omitted information and correct errors in any documents
or other instruments executed by or for Customer; do any and every act which
Customer is obligated to perform under this Agreement; and do any other things
necessary to preserve and protect the Collateral and IBM Credit’s security
interest in the Collateral. Customer further authorizes IBM Credit to provide to
any third party any credit, financial or other information about Customer that
is in IBM Credit’s possession. 

14.     Each party may
electronically transmit to or receive from the other party certain documents
specified in the E-Business Schedule A attached hereto (“E-Documents”)
via the Internet or electronic data interchange (“EDI”). Any
transmission of data which is not an E-Document shall have no force or effect
between the parties. EDI transmissions may be transmitted directly or through
any third party service provider (“Provider”) with which either party
may contract. Each party will be liable for the acts or omissions of its
Provider while handling E-Documents for such party, provided, that if both
parties use the same Provider, the originating party will be liable for the acts
or omissions of such Provider as to such E-Document. Some information to be made
available to Customer will be specific to Customer and will require Customer to
register with IBM Credit before access is provided. After IBM Credit has
approved the registration submitted by Customer, IBM Credit will provide an ID
and password(s) to an individual designated by Customer (“Customer
Recipient”). Customer accepts responsibility for the designated
individual’s distribution of the ID and password(s) within its organization
and Customer will take reasonable measures to ensure that passwords are not
shared or disclosed to unauthorized individuals. Customer will conduct an annual
review of all IDs and passwords to ensure that they are accurate and properly
authorized. IBM CREDIT MAY CHANGE OR DISCONTINUE USE OF AN ID OR PASSWORD AT ITS
DISCRETION AT ANY TIME. E-Documents will not be deemed to have been properly
received, and no E-Document will give rise to any obligation, until accessible
to the receiving party at such party’s receipt computer at the address
specified herein. 

Upon proper receipt of an E-Document, the receiving party will promptly transmit a functional acknowledgment in return. A functional
acknowledgment will constitute conclusive evidence that an E-Document has been
properly received. If any transmitted E-Document is received in an
unintelligible or garbled form, the receiving party will promptly notify the
originating party in a reasonable manner. In the absence of such a notice, the
originating party’s records of the contents of such E-Document will
control. 

Each party will use those
security procedures which are reasonably sufficient to ensure that all
transmissions of E-Documents are authorized and to protect its business records
and data from improper access. Any E-Document received pursuant to this
paragraph 14 will have the same effect as if the contents of the E-Document had
been sent in paper rather than electronic form. The conduct of the parties
pursuant to this paragraph 14 will, for all legal purposes, evidence a course of
dealing and a course of performance accepted by the parties. The parties agree
not to contest the validity or enforceability of E-Documents under the
provisions of any applicable law relating to whether certain agreements are to
be in writing or signed by the party to be bound thereby. The parties agree, as
to any E-Document accompanied by Customer’s ID, that IBM Credit can
reasonably rely on the fact that such E-Document is properly authorized by
Customer. E-Documents, if introduced as evidence on paper in any judicial,
arbitration, mediation or administrative proceedings, will be admissible as
between the parties to the same extent and under the same conditions as other
business records originated and maintained in documentary form. Neither party
will contest the admissibility of copies of E-Documents under either the
business records exception to the hearsay rule or the best evidence rule on the
basis that the E-Documents were not originated or maintained in documentary
form. 

Neither party will be
liable to the other for any special, incidental, exemplary or consequential
damages arising from or as a result of any delay, omission or error in the
electronic transmission or receipt of any E-Document pursuant to this paragraph
14, even if either party has been advised of the possibility of such damages. In
the event Customer requests IBM Credit to effect a withdrawal or debit of funds
from an account of Customer, then in no event will IBM Credit be liable for any
amount in excess of any amount incorrectly debited, except in the event of IBM
Credit’s gross negligence or willful misconduct. No party will be liable
for any failure to perform its obligations pursuant to this paragraph 14 in
connection with any E-Document, where such failure results from any act of God
or other cause beyond such party’s reasonable control (including, without
limitation, any mechanical, electronic or communications failure) which prevents
such party from transmitting or receiving E-Documents. 

CUSTOMER RECIPIENT for Internet transmissions:

Mary Driscoll, Controller

(PLEASE PRINT)

Name of Customer's Designated Central Contact Authorized to Receive IDs and Passwords:

Mary Driscoll, Controller

e-mail Address:  Mary.Driscoll@infotechusa.com

Phone Number: (631) 205-1000  x115

15.     Time is of the
essence in this Agreement. This Agreement will be effective from the date of its
acceptance at IBM Credit’s office. Customer acknowledges receipt of a true
copy and waives notice of IBM Credit’s acceptance of it. If IBM Credit
advances funds under this Agreement, IBM Credit will have accepted it. This
Agreement will remain in force until one of the parties gives notice to the
other that it is terminated. If Customer terminates this Agreement, IBM Credit
may declare all or any part of the obligations Customer owes IBM Credit due and
payable immediately. If this Agreement is terminated, Customer will not be
relieved from any obligations to IBM Credit arising out of IBM Credit’s
advances or commitments made before the effective date of termination. IBM
Credit’s rights under this Agreement and IBM Credit’s security
interest in present and future Collateral will remain valid and enforceable
until all Customer’s obligations to IBM Credit are paid in full. This
Agreement shall be binding upon and inure to the benefit of IBM Credit and the
Customer and their respective successors and assigns; provided, that the
Customer shall have no right to assign this Agreement without the prior written
consent of IBM Credit. This Agreement will protect and bind IBM Credit’s
and Customer’s respective heirs, representatives, successors and assigns.  It can be varied only by a document signed by IBM Credit’s and
Customer’s authorized representatives. If any provision of this Agreement
or its application is invalid or unenforceable, the remainder of this Agreement
will not be impaired or affected and will remain binding and enforceable. This
Agreement is executed with the authority of Customer’s Board of Directors,
and with shareholder approval, if required by the law, if Customer is a
corporation or if Customer is a limited liability company, with the authority of
authorized members. All notices IBM Credit sends to Customer will be
sufficiently given if mailed or delivered to Customer at its address shown in
paragraph 5. 

16.     The laws of the
State of New York will govern this Agreement. Customer agrees that venue for any
lawsuit will be in the State or Federal Court within the county, parish, or
district where IBM Credit’s office, which provides the financial
accommodations, is located. Customer hereby waives any right to change the venue
of any action. 

17.     If Customer has
previously executed any security agreements relating to the Collateral with IBM
Credit, Customer agrees that this Agreement is intended only to amend and
supplement such written agreements, and will not be deemed to be a novation or
termination of such written agreements. In the event the terms of this Agreement
conflict with the terms of any prior security agreement that Customer previously
executed with IBM Credit, the terms of this Agreement will control in
determining the agreement between Customer and IBM Credit. 

18.     CUSTOMER
WAIVES ALL EXEMPTIONS AND HOMESTEAD LAWS TO THE MAXIMUM EXTENT PERMITTED BY LAW.
CUSTOMER WAIVES ANY STATUTORY RIGHT TO NOTICE OR HEARING PRIOR TO IBM
CREDIT’S ATTACHMENT, REPOSSESSION OR SEIZURE OF THE COLLATERAL CUSTOMER
FURTHER WAIVES ANY AND ALL RIGHTS OF SETOFF CUSTOMER MAY HAVE AGAINST IBM
CREDIT. CUSTOMER AGREES THAT ANY PROCEEDING IN WHICH CUSTOMER, OR IBM CREDIT OR
ANY OF IBM CREDIT’S AFFILIATES, OR CUSTOMER’S OR IBM CREDIT’S
ASSIGNS ARE PARTIES, AS TO ALL MATTERS AND THINGS ARISING DIRECTLY OR INDIRECTLY
OUT OF THIS AGREEMENT, OR THE RELATIONS AMONG THE PARTIES LISTED IN THIS
PARAGRAPH WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT
A JURY. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN
ANY SUCH PROCEEDING. 

	ATTEST: 	 	INFORMATION TECHNOLOGY SERVICES, INC.
	  	 	Customer

	/s/  MICHAEL KRAWITZ
	 	By:  /s/  DAVID A. LOPPERT   
                     
              
	Secretary	 	 
	  	 	 
	Print Name:   Michael Krawitz 	 	Print Name:   David A. Loppert 

	  	 	Title:   Chief Executive Officer 

(CORPORATE SEAL)

E-BUSINESS
SCHEDULE A (“SCHEDULE A”)

CUSTOMER NAME: INFORMATION TECHNOLOGY SERVICES, INC.

EFFECTIVE DATE OF THIS SCHEDULE A: November 27, 2000

E-DOCUMENTS AVAILABLE TO SUPPLIERS:

Invoices

Payment Report/Remittance Advisor

E-DOCUMENTS AVAILABLE TO CUSTOMER:

Invoices

Remittance Advisor

Transaction Approval

Billing Statement

Payment Planner

Auto Cash

Statements of Transaction

	Common	Dispute	Form

SECRETARY'S CERTIFICATE OF RESOLUTION

     I  certify  that I am the  Secretary  and the  official  custodian  of  certain  records,  including  the
certificate  of  incorporation,  charter,  by-laws  and  minutes of the  meeting of the Board of  Directors  of the
corporation  named below,  and that the following is a true,  accurate and compared extract from the minutes of the
Board of Directors of the corporation  adopted at a special  meeting  thereof held on due notice,  at which meeting
there was present a quorum  authorized to transact the business  described  below,  and that the proceedings of the
meeting were in accordance  with the  certificate of  incorporation,  charter and by-laws of the  corporation,  and
that they have not been revoked, annulled or amended in any manner whatsoever.

     Upon  motion  duly made and  seconded,  the  following  resolution  was  unanimously  adopted  after full
discussion:  "RESOLVED, That the several officers,  directors and agents of this corporation, or any one or more of
them,  are hereby  authorized  and empowered on behalf of this  corporation:  to obtain  financing  from IBM Credit
Corporation  ("IBM  Credit") in such amounts and on such terms as such  officers,  directors or agents deem proper;
to enter into  security and other  agreements  with IBM Credit  relating to the terms upon which  financing  may be
obtained and security to be furnished by this  corporation  therefor;  from time to time to supplement or amend any
such agreements;  and from time to time to pledge,  assign,  guaranty,  mortgage,  grant security  interest in and,
otherwise  transfer to IBM Credit as collateral  security for any obligations of this corporation to IBM Credit and
its  affiliated  companies,  whenever and however  arising,  any assets of this  corporation,  whether now owned or
hereafter acquired; hereby ratifying,  approving and confirming all that any of said officers,  directors or agents
have done or may do in the premises."

     IN WITNESS WHEREOF, I have executed and affixed the seal of the corporation on the date stated below.

	Dated:  January 5, 2001	 	 
			
    Secretary
			Information Technology Services, Inc.
      Corporate NameSysComm International, Inc. Form 10-Q Exhibit 10.6

Exhibit 10.6

COLLATERALIZED
GUARANTY

This Collateralized
Guaranty (as amended, supplemented or otherwise modified from time to time, this
“Collateralized Guaranty”) which supercedes and replaces any previous
guaranty by and between the parties is hereby executed as of the 23rd day of
May, 2001 by each of the parties listed on the signature pages hereof
(individually a “Guarantor” and jointly the “Guarantors”),
on behalf of APPLIED DIGITAL SOLUTIONS, INC. (“Borrower”), in
favor of IBM Credit Corporation (“IBM Credit”) with an office
located at North Castle Drive, Armonk, NY 10504. 

        1.        
In consideration of credit and financing accommodations granted or to be granted
by IBM Credit to Borrower which is in the best interest of each Guarantor and
for other good and valuable consideration received, the Guarantors jointly and
severally guaranty to IBM Credit, from property held separately, jointly or in
community, the prompt and unconditional performance and payment by Borrower of
the “Obligations” within the meaning of the Second Amended and
Restated Term and Revolving Credit Agreement dated as of October 17, 2000 as
amended, supplemented or otherwise modified from time to time hereafter, the
“Credit Agreement”) between the Borrower and others, on the one hand,
and IBM Credit, on the other and the obligations of each Guarantor hereunder
(collectively the “Obligations”), whether the Obligations are
individual, joint, several, primary, secondary, direct, contingent or otherwise,
provided, however, that if IBM Credit shall enforce this Guaranty, the total
liability of the Guarantors taken together to IBM Credit shall not exceed the
aggregate amount owed by the Guarantors to the Borrower on the day IBM Credit
delivers written notice to Borrower that an Event of Default exists under the
Credit Agreement (the “Guarantors’ Obligations”). Subject to such
limitation, each Guarantor hereby agrees to indemnify IBM Credit and hold
harmless IBM Credit, its affiliates that are parties to the Credit Agreement,
and each of its officers, directors, agents and assigns (collectively, the
“Indemnified Persons”) against all losses, claims, damages,
liabilities or other expenses (including reasonable attorneys’ fees and
court costs now or hereinafter arising from the enforcement of this Agreement,
the “Losses”) to which any of them may become subject insofar as such
Losses arise out of or are based upon any event, circumstance or condition in
respect to the Credit Agreement. Notwithstanding the foregoing, no Guarantor
shall be obligated to indemnify the Indemnified Persons for any Losses incurred
by it to the extent caused by Indemnified Persons’ gross negligence or
willful misconduct. 

        2.        
Upon the occurrence and during the continuance of an Event of Default pursuant
to Section 6 of this Collateralized Guaranty which has not been waived in
writing by IBM Credit, IBM Credit may, in its sole discretion, take any or all
of the following actions, without prejudice to any other rights it may have at
law or under the Credit Agreement to enforce its claims against the Borrower:
declare all Obligations to be immediately due and payable (except that in the
Event of Default consists of an entry of an order for relief under the
Bankruptcy Code with respect to any Event of Default set forth in Section 9.1(E)
of the Credit Agreement, in which case all Obligations shall automatically
become immediately due and payable, and the Guarantors shall then pay upon
demand the full amount of the Guarantors’ Obligations owed to IBM Credit by
Borrower, together with all apportioned expenses, including reasonable
attorney’s fees. 

        3.        
The liability of each 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 to 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 Borrower’s financial condition, or the
interruption of business relations between IBM Credit and Borrower. This
Guaranty shall continue for so long as any sums owing to IBM Credit by Borrower
remain outstanding and unpaid, unless terminated in the manner provided below.
Each 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 needs 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 any of the Guarantors. 

Page 1 of 9

        4.        
To secure payment of all of the Guarantors’ current and future debts and
obligations to IBM Credit, whether under this Guaranty or any other agreement
between IBM Credit and any of the Guarantors, whether direct or contingent, each
Guarantor grants to IBM Credit a security interest in all of its inventory,
equipment, fixtures, accounts, chattel paper, instruments, documents of title,
deposit accounts and general intangibles now owned or hereafter acquired, and
all attachments, parts, accessories, accessions, substitutions, and replacements
thereto and all proceeds thereof, and to the extent related to the property
described above, all books, correspondence, credit files, records, invoices and
other papers and documents, including without limitation, to the extent so
related, all tapes, cards, computer runs, computer programs and other papers and
documents in its possession or control or any computer bureau from time to time
acting for it, and, to the extent so related, all rights in, to and under all
polities of insurance, including claims of rights to payments thereunder and
proceeds therefrom, including, any credit insurance, and all proceeds thereof
(the “Collateral”). This security interest is also granted to secure
any Guarantor’s debts to IBM Credit. 

        5.        
(A)    Each Guarantor hereby agrees to maintain books and records pertaining
to the Collateral in such detail, form and scope as is consistent with good
business practice, and agree that such books and records will reflect IBM
Credit’s interest in the Collateral. 

        (B)        
Each Guarantor hereby agrees that IBM Credit or its agents may enter upon the
premises of any of the Guarantors at any time and from time to time, during
normal business hours and upon reasonable notice under the circumstances, and at
any time at all on and after the occurrence and during the continuance of an
Event of Default for the purposes of (i) inspecting the Collateral,
(ii) inspecting and/or copying (at such Guarantor’s expense) any and
all records pertaining thereto, (iii) discussing the affairs, finances and
business of such Guarantor with its officers or with the Guarantor’s
auditors and (iv) verifying Collateral. Each Guarantor hereby also agrees
to provide IBM Credit with such reasonable information and documentation that
IBM Credit may reasonably deem necessary to conduct the foregoing activities,
including, without limitation, reasonably requested samplings of purchase
orders, invoices and evidences of delivery or other performance. IBM Credit
shall exercise their rights under this section with a view towards not
interrupting any Guarantor’s routine business operations and functions. 

Upon the occurrence and
during the continuance of an Event of Default pursuant to Section 6 of the
Collateralized Guaranty which has not been waived by IBM Credit in writing, IBM
Credit may conduct any of the foregoing activities upon twenty four hours notice
and beginning during normal business hours in any manner that IBM Credit deem
reasonably necessary. 

        6.        
The occurrence of an Event of Default within the meaning of the Credit Agreement
shall constitute an Event Default with the meaning of this Collateralized
Guaranty. 

        (A)        
Upon the occurrence and during the continuance of any Event of Default which has
not been waived in writing by IBM Credit and the acceleration of the Obligations
in accordance with Section 2 of this Collateralized Guaranty, IBM Credit may,
subject to the limitations herein-above, exercise all rights and remedies of a
secured party under the U.C.C., or any other provisions, laws or statutes as
applicable. Without limiting the generality of the foregoing, IBM Credit may:
(i) remove from any premises where same may be located any and all
documents, instruments, files and records (including the copying of any computer
records), and any receptacles or cabinets containing same, relating to the
accounts, or IBM Credit may use (at the expense of the Guarantors) such of the
supplies or space of any Guarantor at such Guarantor’s place of business or
otherwise, as may be necessary to properly administer and control the accounts
or the handling of collections and realizations thereon provided in all events,
IBM Credit shall not hinder or limit access by any Guarantor to all of such
records and shall make all of such records available to the Guarantor;
(ii) bring suit, in the name of any Guarantor or IBM Credit and generally
have all other rights respecting said accounts, including without limitation the
right to accelerate or extend the time of payment, settle, compromise, release
in whole or in part any amounts owing on any accounts and issue credits in the
name of such Guarantor or IBM Credit; (iii) sell, assign and deliver the
accounts and any returned, reclaimed or repossessed merchandise, with or without
advertisement, at public or private sale, for cash, on credit or otherwise, at
IBM Credit’s sole option and discretion, and IBM Credit may bid or become a
purchaser at any such sale; and (iv) foreclose the security interests
created pursuant to this Collateralized Guaranty by any available judicial
procedure, or to take possession of any or all of the Collateral without
judicial process and to enter any premises where any Collateral may be located
for the purpose of taking possession of or removing the same. 

Page 2 of 9

        (B)        
Upon the occurrence of any Event of Default, each Guarantor hereby agrees to
provide to IBM Credit (i) within three (3) business days after request by
IBM Credit, any written certificates, schedules and reports together with all
supporting documents relating to the Collateral or any Guarantor or any
Guarantor’s business affairs and financial condition; and (ii) the
name, address and phone number of each of its account debtors’ primary
contacts for each account if requested by IBM Credit. Upon the occurrence and
during the continuance of any Event of Default which has not been waived in
writing by IBM Credit, and the acceleration of the Obligations in accordance
with Section 2 of this Collateralized Guaranty, IBM Credit shall have the right
to sell, lease, or otherwise dispose of all or any part of the Collateral,
whether in its then condition or after further preparation or processing, in the
name of any Guarantor or IBM Credit, or in the name of such other party as IBM
Credit may designate, either at public or private sale or at any broker’s
board, in lots or in bulk, for cash or for credit, with or without warranties or
representations, and upon such other terms and conditions as IBM Credit in its
sole discretion may deem advisable, and IBM Credit shall have the right to
purchase at any such sale. 

If IBM Credit, in its sole
discretion determines that any of the Collateral requires rebuilding, repairing,
maintenance or preparation, IBM Credit shall have the right, at its option, to
do such of the aforesaid as it deems necessary for the purpose of putting such
Collateral in such saleable form as IBM Credit shall deem appropriate. Each
Guarantor hereby agrees that any disposition by IBM Credit of any Collateral to
and in accordance with the terms of a repurchase agreement between IBM Credit
and the manufacturer or any supplier of such Collateral constitutes a
commercially reasonable sale. Each Guarantor hereby agrees, at the request of
IBM Credit, to assemble the Collateral and to make it available to IBM Credit at
places which IBM Credit shall select, whether at the premises of the Guarantor
or elsewhere, and to make available to IBM Credit the premises and facilities of
the Guarantor for the purpose of IBM Credit’s taking possession of,
removing or putting such Collateral in saleable form. If notice of intended
disposition of any Collateral is required by law, it is agreed that ten (10)
business days notice shall constitute reasonable notification. 

        (C)        
Unless expressly prohibited by the licensor thereof, if any, IBM Credit is
hereby granted by each Guarantor, upon the occurrence and during the continuance
of any Event of Default which has not been waived in writing by IBM Credit, an
irrevocable, non-exclusive license to use, assign, license or sublicense all
computer software programs, data bases, processes and materials used by the
Guarantor in its businesses or in connection with any of the Collateral. 

        (D)        
The net cash proceeds resulting from IBM Credit’s exercise of any of the
foregoing rights (after deducting all charges, costs and expenses, including
reasonable attorneys’ fees) shall be applied by IBM Credit to the payment
of the Guarantors’ Obligations, whether due or to become due, in such order
as IBM Credit may in its sole discretion elect. Each Guarantor shall remain
liable to IBM Credit for any deficiencies only for the Guarantor’s
Obligations, and IBM Credit in turn agrees to remit to the Guarantors or their
successors or assigns, any surplus resulting therefrom. 

        (E)        
The enumeration of the foregoing rights is not intended to be exhaustive and the
exercise of any right shall not preclude the exercise of any other rights, all
of which shall be cumulative. 

        (F)        
Each Guarantor waives and releases: (i) any and all claims and causes of action
which it 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 its business; (ii) all rights of redemption from any such sale; and (iii)
the benefit of all valuation, appraisal and exemption laws. 

Page 3 of 9

        (G)        
Each Guarantor appoints IBM Credit or any person IBM Credit may delegate as its
duly authorized Attorney-in-Fact (without notifying any 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 the Guarantors 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 it has in the Collateral; and 

        (H)        
In the event any Guarantor brings any action or asserts any claim against IBM
Credit which arises out of this Guaranty, any other agreement or any business
dealings between it and IBM Credit, in which such Guarantor does not prevail,
such 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, attorney’s fees. 

IBM Credit agrees that it
shall exercise the power of attorney granted to it under paragraph (G) above
only after the occurrence and during the continuance of an Event of Default. 

        7.        
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. Each Guarantor acknowledges and agrees that the Collateral is the
subject of widely distributed standard price quotations and is customarily sold
in a recognized market. Each 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, each 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. 

        8.        
Each Guarantor represents, warrants and covenants that (a) the Collateral is and
shall remain free from all claims and liens other than Permitted Liens as
defined in Section 13 of this Guaranty; (b) it shall defend the Collateral
against all other claims and demands; and (c) it shall notify IBM Credit before
it signs, or authorizes the signing of any financing statement regardless of its
coverage. IBM Credit may perfect IBM Credit’s security interest in the
Collateral by filing a financing statement signed only by IBM Credit. Each
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. 

        9.        
Each Guarantor’s principal place of business and chief executive office are
listed in Exhibit A attached hereto. Each Guarantor agrees to notify IBM Credit
immediately of any change in identity, name, form of ownership or executive
management, and of any change in its principal place of business, chief
executive office or any additions or discontinuances of other business locations
at which a material amount of tangible Collateral is located. 

        10.        
The Collateral shall be kept at each Guarantor’s principal places of
business and at the locations listed in Exhibit A attached hereto. Each
Guarantor will immediately notify IBM Credit if a material amount of tangible
Collateral is kept at or the chief executive office of any Guarantor is moved to
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. 

        11.        
Except as set forth in Exhibit A, no Guarantor has done business during the last
six (6) months only under the corporate names first written above. 

Page 4 of 9

        12.        
Each Guarantor will pay all taxes, license fees, assessments and charges on the
Collateral when due except where: the due date therefor has been extended; the
subject item is being contested in good faith by appropriate proceedings; or the
failure to make such payment will not have a Material adverse effect (as that
term is defined in the Credit Agreement). Each Guarantor will be responsible for
any loss of Collateral for any reason whatsoever. Each 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 from such
companies, and in such amounts as is commercially reasonably prudent to obtain
and will cause IBM Credit to be named lender loss payee on any insurance which
covers any of the Collateral. Each Guarantor further agrees to provide IBM
Credit with written evidence of the required insurance coverage and endorsement
clause. From and after the occurrence of an Event of Default and the
acceleration of the Obligations (or the entry of an order for relief under the
Bankruptcy Code with respect to Guarantor) or if any Guarantor fails to initiate
an insurance claim within sixty (60) days of any Guarantor’s knowledge of
any loss, theft or destruction of or damage to all or a substantial portion of
the Collateral, IBM Credit may, upon notice to such Guarantor, thereupon file
all papers, forms and documents to file such claim on such Guarantor’s
behalf, and each Guarantor gives IBM Credit a limited power of attorney for that
purpose. If any 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 the Guarantors to IBM
Credit. 

        13.        
Each Guarantor:

              
       (i)        will  keep  the  Collateral  owned by that  Guarantor  free  and  clear of all  liens or
encumbrances other than Permitted liens,

              
       (ii)        will conduct its business in all material  respects in  compliance  with all  applicable
laws including environmental and labor laws,

              
       (iii)        will not change  its  general  line of  business  without  prior  written  notice to IBM
Credit,

              
       (iv)        will not sell,  transfer  or  dispose  of any  assets  other  than (a) sale or rental of
inventory in the ordinary  course of business,  (b) voluntary  disposition  of assets  obsolete and worn out in the
ordinary  course of business,  and (c) Permitted  Dispositions  provided,  however,  that no Permitted  Disposition
shall  represent an amount in excess of fifteen  percent of the combined  assets of the Customers and  Subsidiaries
without the prior consent of IBM Credit, and

              
       (v)        will not maintain or acquire any  investment in any Person other than those  Investments
permitted  under Section 8.6 of the Credit  Agreement with the  understanding  Customer used in that Section of the
Credit Agreement shall mean the Guarantor for the purpose hereof.

Capitalized terms used in
this Section 13 not otherwise defined in this Collateralized Guaranty shall have
the meanings ascribed to such terms in the Credit Agreement. 

        14.        
This 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 each Guarantor’s respective successor, personal
representatives and assigns. 

        15.        
If Borrower hereafter is 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 Obligations of the
Borrower or such resulting corporation, dissolved corporation, or new or changed
legal entity, or identity to IBM Credit. 

Page 5 of 9

        16.        
Each 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 Borrower outstanding at any time; notices of the number and
amount of advances made by IBM Credit to Borrower in reliance on this Guaranty;
notices of any legal proceedings against Borrower; notice and hearing as to any
prejudgment remedies; and any other demands and notices required by law. Each
Guarantor further waives all rights of setoff and all counterclaims against IBM
Credit or Borrower. Each Guarantor also waives any and all rights in and notices
or demands relating to any collateral now or hereafter securing any of the
Obligations, 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 each Guarantor herein shall survive any termination or revocation
of this Guaranty. 

        17.        
Each Guarantor authorizes IBM Credit, following the occurrence of an Event of
Default and the acceleration of the Obligations (or the entry of any order of
relief under the Bankruptcy Code with respect to the Guarantors), to sell at
public or private sale or otherwise realize upon the collateral now or hereafter
securing any of the Obligations, in such manner and upon such terms and
conditions as IBM Credit deems to be in a commercially reasonable manner. Each
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, any 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. 

        18.        
Each 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 such 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 Obligations. No
Guarantor, following the occurrence of an Event of Default and the acceleration
of the Obligations (or the entry of any order of relief under the Bankruptcy
Code with respect to the undersigned), will 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 obligations are paid, performed and fully satisfied. 

        19.        
Each 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. Each Guarantor acknowledges that it has
access to current and future Borrower financial information which will enable
each Guarantor to continuously remain informed of Borrower’s financial
condition. Each 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 Obligations; sales or other dispositions of any or
all of the collateral now or hereafter securing any of the Obligations 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. 

        20.        
Upon the execution and delivery by any other Person of an instrument in the form
of Annex I hereto, such Person shall become a “Guarantor”
hereunder with the same force and effect as if originally named as a
“Guarantor” herein. The execution and delivery of any such instrument
shall not require the consent of any Guarantor hereunder. The rights and
obligations of each Guarantor hereunder shall remain in full force and effect
notwithstanding the addition of any new “Guarantor” as a party to this
Collateralized Guaranty. 

        21.        
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. 

Page 6 of 9

        22.        
This Guaranty is submitted by each Guarantor to IBM Credit (for IBM
Credit’s acceptance or rejection thereof) at IBM Credit at its address
first written above; as an offer by each Guarantor to guaranty the credit and
financial accommodations provided by IBM Credit to Borrower. 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. Each 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 located in New York City, New York. Each Guarantor
consents and submits to the jurisdiction of any local, state or federal court
located within that state. Each Guarantor waives any right to transfer or change
the venue of any litigation brought against any Guarantor by IBM Credit in
accordance with this paragraph. 

        23.        
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. 

        24.        
This document contains the full agreement of the parties concerning the guaranty
of Borrower’s Obligations and can be varied only by a document signed by
all of the parties hereto. Any Guarantor may terminate this Guaranty by notice
to IBM Credit in writing, the termination to be effective sixty (60) days after
receipt and acknowledgment thereof by IBM Credit, but the termination shall in
no manner terminate such Guarantor’s guaranty of Obligations arising prior
to the effective date of termination. “Guarantor” shall be deemed to
refer to all thereof and the obligations of all thereof hereunder shall be joint
and several. 

        25.        
EACH GUARANTOR AGREES THAT ANY ACTION, SUIT OR PROCEEDING, RELATING DIRECTLY OR
INDIRECTLY TO THIS GUARANTY, OR THE RELATIONSHIP BETWEEN IBM CREDIT AND ANY
GUARANTOR, WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT
A JURY. THUS, EACH GUARANTOR HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN ANY SUCH
ACTION, SUIT OR PROCEEDING. 

	WITNESS 	 	SYSCOMM INTERNATIONAL CORPORATION

	/s/  M. BROOKS               
        	 	By:  /s/  DAVID A. LOPPERT     
          
	Print Name:    M. Brooks             	 	Print Name:    David A. Loppert 
	Address:  107 Pembroke Dr.      	 	Title:    Chief Executive Officer 
	Palm Beach Gardens, FL           	 	  
	         
      33418                       

	 	 

 
	WITNESS 
	 	INFORMATION TECHNOLOGY SERVICES, INC.

	/s/  M. BROOKS               
        	 	By:  /s/  DAVID A. LOPPERT     
          
	Print Name:    M. Brooks             	 	Print Name:    David A. Loppert 
	Address:             
                     	 	Title:  Chief Executive Officer

	WITNESS 

	 	INFORMATION PRODUCTS CENTER, INC.

	/s/  M. BROOKS               
        	 	By:  /s/  DAVID A. LOPPERT     
          
	Print Name:    M. Brooks             	 	Print Name:    David A. Loppert 
	Address:             
                     	 	Title:    Chief Executive Officer 

Page 7 of 9

ATTACHMENT A TO

COLLATERALIZED GUARANTY

	I.	Locations of Offices, Books and Records and Collateral:

	  	(A)     Principal Place of Business and Chief Executive Office:  

	 	SysComm International Corporation

         20 Precision Drive

         Shirley, NY 1 1987  

	  	Information Technology Services, Inc.

         20 Precision Drive

         Shirley, NY 11967  

	 	 Information Products Center, Inc.

         7 Kingsbridge Road

         Fairfield, NJ 10774 

	 	(B)     Locations of Other Assets, Inventory and Equipment (including warehouses):  

	Guarantor	Location	Leased (Y/N)
	Information
Technology
Services  	420 Lexington Avenue, Suite 2450
New York City, NY 10170  

	Y 

	 	1 Greentree Center, Suite 201
Marlton, NJ 08053

	Y 

	II.	Fictitious Names:

	 	Information Technology Services. Inc. d/b/a InfoTech or InfoTech USA

	 	Information Products Center. Inc. d/b/a ADS-Information Products Center or IPC or Applied Digital
         Solutions

Page 8 of 9

Annex I to
Collateralized Guaranty

SUPPLEMENT, dated as of 
 (this “Supplement”), to the Collateralized Guaranty dated as of
May ___, 2001 (as amended, supplemented or otherwise modified from time to time,
the “Collateralized Guaranty”) executed by the Guarantors thereunder
in favor of IBM Credit Corporation (“IBM Credit”). 

WHEREAS, pursuant to
paragraph 20 of the Collateralized Guaranty, the undersigned is becoming a
Guarantor under the Collateralized Guaranty, and 

WHEREAS, the undersigned
Guarantor desires to become a Guarantor under the Collateralized Guaranty in
order to induce IBM Credit to continue to extend financing under the Credit
Agreement (as defined in the Collateralized Guaranty): 

NOW, THEREFORE, in
consideration of the premises and for other consideration (the receipt and
sufficiency of which is hereby acknowledged), the undersigned agrees, for the
benefit of IBM Credit, as follows: 

1.         All capitalized terms
used herein without definition shall have the meanings ascribed to such terms in
or pursuant to the Collateralized Guaranty. 

2.          In accordance with the
terms of the Collateralized Guaranty, by its signature below, the undersigned
hereby irrevocably agrees to become a Guarantor under the Collateralized
Guaranty with the same force and effect as if it were an original signatory
thereto, and the undersigned Guarantor hereby (a) agrees to be bound by and
comply with all of the terms and provisions of the Collateralized Guaranty
applicable to it as a Guarantor and (b) represents and warrants that the
representations and warranties made by it as a Guarantor thereunder are true and
correct as of the date hereof. Each reference to a Guarantor in the
Collateralized Guaranty shall be deemed to include the undersigned Guarantor. 

3.          The undersigned
Guarantor hereby represents and warrants that this Supplement has been duly
authorized, executed and delivered by it and that this Supplement and the
Collateralized Guaranty constitute the legal, valid and binding obligation of
the undersigned, enforceable against it in accordance with its terms. 

4.         Except as  expressly  supplemented  hereby,  the  Collateralized  Guaranty  shall remain in full force and
effect in accordance with its terms.

5.        
 This Supplement is executed and shall be construed in accordance with the local laws of New York.

6.          This Supplement may be
executed by the Parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same agreement. IN WITNESS WHEREOF, the Parties hereto have caused this
Supplement to be duly executed and delivered by their respective officers as of
the date and year first above written. 

[Name of the Additional SysComm Subsidiary Guarantor

By:____________________________

Name:_________________________

Title:___________________________

Accepted by:

IBM Credit Corporation

By:____________________________

Name:_________________________

Title:___________________________

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