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                                                                   EXHIBIT 10.29

                      ACKNOWLEDGMENT, WAIVER AND AMENDMENT
                                       TO
                               FINANCING AGREEMENT

            This  ACKNOWLEDGMENT,  WAIVER  AND  AMENDMENT  ("Amendment")  TO THE
INVENTORY AND WORKING CAPITAL FINANCING AGREEMENT is made as of May 2, 2001 by
and between Datatec Industries,  Inc., a Delaware  corporation  ("Customer") and
IBM Credit Corporation, a Delaware corporation ("IBM Credit").

                                    RECITALS:

            WHEREAS,  Customer  and IBM Credit have  entered  into that  certain
Inventory and Working Capital Financing  Agreement dated as of November 10, 2000
(as  amended,  supplemented  or  otherwise  modified  from  time  to  time,  the
"Agreement");

            WHEREAS,  Customer  is in  default  of one or more of its  financial
covenants contained in the Agreement (as more specifically  explained in Section
2 hereof); and

            WHEREAS, IBM Credit is willing to waive such defaults subject to the
conditions set forth below.

                                    AGREEMENT

            NOW THEREFORE,  in  consideration  of the premises set forth herein,
and for other good and  valuable  consideration,  the value and  sufficiency  of
which is hereby  acknowledged,  the parties  hereto agree that the  Agreement is
amended as follows:

SECTION 1. DEFINITIONS. All capitalized terms not otherwise defined herein shall
have the respective meanings set forth in the Agreement.

SECTION 2. ACKNOWLEDGMENT.

            Customer  acknowledges  that the  financial  covenants  set forth in
Attachment  A to the  Agreement  are  applicable  to the  financial  results  of
Customer  for the fiscal  quarter  ending  January 31,  2001,  and  Customer was
required to maintain such  financial  covenants at all times.  Customer  further
acknowledges its actual attainment was as follows:

                                                 Covenant                      Covenant
             Covenant                            Requirement                   Actual
             --------                            -----------                   --------
             Net Profit after Tax to Revenue     Equal to or Greater than      Net Loss
                                                 0.0 percent

SECTION 3.  WAIVERS TO  AGREEMENT.  IBM Credit  hereby  waives the  Defaults  of
Customer  with the terms of the  Agreement  to the extent such  Defaults are set
forth in Section 2 hereof.

SECTION  4.   AMENDMENT.   The   Agreement   is  hereby   amended  as   follows,
notwithstanding any other conditions precedent contained herein:

             A. Attachment A to the Agreement is hereby amended by deleting such
Attachment A in its entirety and substituting, in lieu thereof, the Attachment A
attached  hereto.  Such  new  Attachment  A shall  be  effective  as of the date
specified in the new Attachment A. The changes contained in the new Attachment A
include, without limitation, the following:

(a)           Product  Financing  Charge is increased from Prime Rate plus 0.25%
              to Prime Rate plus 3.00%;

                                  Page 1 of 3

(b)           WCO  Advance  Charge is  increased  from  Prime Rate plus 0.25% to
              Prime Rate plus 3.00%;

(c)           PRO  Advance  Charge is  increased  from  Prime Rate plus 0.25% to
              Prime Rate plus 3.00%;

(d)           Credit  Line  is   decreased   from   Eighteen   Million   Dollars
              ($18,000,000.00) to Fourteen Million Dollars ($14,000,000.00);

(e)           Customer  shall be required to maintain  the  following  financial
              percentage(s) and ratio(s) as of the last day of the fiscal period
              under review by IBM Credit:

                                                                         Covenant
                                     Covenant                            Requirement, fiscal                 Covenant
                                     Requirement, fiscal                 quarters ending                     Requirement,
                                     quarters ending                     October 2001 and                    fiscal
       Covenant                      April/July 2001                     thereafter                          quarters
       ----------                    -------------------                 -------------------                 ending April
                                                                                                             2002 and
                                                                                                             thereafter
                                                                                                             ----------
(i)    Revenue on an Annual Basis    Greater than Zero and Equal to or   Greater than Zero and Equal to      Greater than Zero and
       to Working Capital            Less than 25.0 :1.0                 or Less than 25.0 :1.0              Equal to or Less than
                                                                                                             25.0 :1.0

(ii)   Net Profit after Tax to                                           Equal to or Greater than 0.10       Equal to or Greater
       Revenue                                                           percent                             than 0.10 percent

(iii)  Tangible Net Worth                                                Equal to or Greater than $2.5       Equal to or Greater
                                                                         Million                             than $5.0 Million

            B. Schedule A of the Agreement is hereby  amended by increasing  the
Term Loan Finance Charge from Prime Rate plus 0.75% to Prime Rate plus 3.50%.

            C.  Section  2.4.  of the  Agreement  is hereby  amended by deleting
2.4.(E) in its entirety and substituting in lieu thereof the following;

" (E) In the event of, and within three (3) days after (i) a public  offering or
private  placement of shares of Customer or any of  Customer's  subsidiaries  or
(ii) an  offering of public or private  debt by  Customer  or any of  Customer's
subsidiaries, Customer shall make a mandatory prepayment of $750,000 on the term
loan.

SECTION  5.  CONDITIONS  TO  EFFECTIVENESS  OF  WAIVER.  The waiver set forth in
Section 3 hereof  shall  become  effective  upon the  receipt by IBM Credit from
Customer of:

(i) This Amendment executed by Customer;

(ii) A waiver fee, in immediately available funds, equal to Ninety Four Thousand
and Five  Hundred  Dollars  ($94,500.00).  Such waiver fee payable to IBM Credit
hereunder shall be nonrefundable  and shall be in addition to any other fees IBM
Credit may charge Customer;

                                  Page 2 of 3

(iii) An executed  collateralized  guaranty of Customer from its parent company,
Datatec Systems,  Inc., in form and substance  satisfactory to IBM Credit in its
sole discretion;

(iv) An  executed  collateralized  guaranty  of  Customer  from  its  affiliate,
E-Deploy.com, Inc., in form and substance satisfactory to IBM Credit in its sole
discretion; and

SECTION 6.  ADDITIONAL REQUIREMENTS.

(a)           Customer  hereby  restates and affirms the  provisions  of Section
              7.1.(C) of the  Agreement  that  as soon as  available  and in any
              event  within  thirty (30) days after the end of each fiscal month
              of Customer,  Customer shall provide;  (i) Financial Statements as
              of the  end of  such  period  and for  the  fiscal  year to  date,
              together  with a comparison to the  Financial  Statements  for the
              same periods in the prior year, all in reasonable  detail and duly
              certified (subject to normal year-end audit adjustments and except
              for the absence of  footnotes) by the chief  executive  officer or
              chief  financial  officer of Customer  as having been  prepared in
              accordance with GAAP; and (ii) a Compliance Certificate along with
              a schedule,  in substantially  the form of Attachment C hereto, of
              the calculations used in determining, as of the end of such fiscal
              month,  whether  Customer  is in  compliance  with  the  financial
              covenants set forth in Attachment A;

(b)           Customer  shall  provide to IBM Credit on the fifth and  twentieth
              day  (or if  such  day is not a  Business  Day,  on the  following
              Business Day) of each month a Collateral Management Report in form
              and detail satisfactory to IBM Credit. Such Collateral  Management
              Report  shall be as of a date no earlier  than the last day of the
              immediately  preceding month or the fifteenth of the current month
              respectively.

SECTION 7. RIGHTS AND REMEDIES.  Except to the extent specifically waived herein
IBM Credit  reserves any and all rights and remedies  that IBM Credit now has or
may have in the future with respect to Customer, including any and all rights or
remedies  which it may have in the future as a result of  Customer's  failure to
comply  with  its  financial  covenants  to IBM  Credit.  Except  to the  extent
specifically  waived herein neither this Amendment,  any of IBM Credit's actions
or IBM Credit's failure to act shall be deemed to be a waiver of any such rights
or remedies.

SECTION 8. GOVERNING LAW. This Amendment shall be governed by and interpreted in
accordance with the laws which govern the Agreement.

SECTION  9.  COUNTERPARTS.  This  Amendment  may be  executed  in any  number of
counterparts,  each  of  which  shall  be an  original  and all of  which  shall
constitute one agreement.

            IN  WITNESS  WHEREOF,  this  Amendment  has  been  executed  by duly
authorized representatives of the undersigned as of the day and year first above
written.

IBM Credit Corporation                           Datatec Industries, Inc.

By:                                              By:  /s/  Ron A. Marino
    ---------------------------------------          -------------------------------------
Print Name:                                      Print Name: Ron A. Marino
            -------------------------------                 ------------------------------
Title:                                           Title:  CFO
       ------------------------------------             ----------------------------------

                                                 /s/ William Aloia

                                                 William Aloia
                                                 Notary Public, State of New Jersey
                                                 No. 2162129
                                                 Qualified Bergen County
                                                 Commission Expires February 3, 2004

                     ATTACHMENT A, ("IWCF ATTACHMENT A") TO
      INVENTORY AND WORKING CAPITAL FINANCING AGREEMENT ("IWCF AGREEMENT")
                             DATED ___________, ____

Customer Name: Datatec Industries, Inc.

Effective Date of this IWCF Attachment A: ______________, 20__

I.   FEES, RATES AND REPAYMENT TERMS:

           (A)       Credit Line: Fourteen Million Dollars ($14,000,000.00);

           (B)       Borrowing Base:

                     (i) 85% of the amount of the Customer's  Eligible  Accounts
                     other  than  Concentration  Accounts  as  of  the  date  of
                     determination  as reflected in the  Customer's  most recent
                     Collateral Management Report;

                     (ii) a  percentage,  determined  from  time  to time by IBM
                     Credit in its sole discretion,  of the amount of Customer's
                     Concentration Accounts for a specific Concentration Account
                     Debtor as of the date of  determination as reflected in the
                     Customer's most recent Collateral Management Report; unless
                     otherwise   notified  by  IBM  Credit,   in  writing,   the
                     percentage  for  Concentration   Accounts  for  a  specific
                     Concentration  Account  Debtor  shall  be the  same  as the
                     percentage  set  forth in  paragraph  (i) of the  Borrowing
                     Base;  provided that the advance on Eligible  Accounts from
                     International     Business    Machines    Corporation    as
                     Concentration Account Debtor is 95%

                     (iii) 100% of the  Customer's  inventory in the  Customer's
                     possession as of the date of  determination as reflected in
                     the Customer's  most recent  Collateral  Management  Report
                     constituting  Products  (other than service parts) financed
                     through a Product Advance by IBM Credit, provided, however,
                     IBM Credit has a first priority  security  interest in such
                     Products and such Products are new and in un-opened  boxes.
                     The value to be assigned to such  inventory  shall be based
                     upon the  Authorized  Supplier's  invoice price to Customer
                     for Products net of all applicable price reduction credits.

                     (iv) up to 35% of the value of Customer's  inventory in the
                     Customer's  possession as of the date of  determination  as
                     reflected  and  identified  in the  Customer's  most recent
                     Collateral    Management   Report   constituting   Products
                     designated by Customer as "Cable" and not financed  through
                     a Product  Advance by IBM Credit,  provided,  however,  IBM
                     Credit  has a  first  priority  security  interest  in such
                     Products and such Products are new and in un-opened  boxes.
                     The  value  to be  assigned  to  such  inventory  shall  be
                     determined by  commercially  reasonable  methods,  in IBM's
                     sole discretion.

                     (v) up to 25% of the value of  Customer's  inventory in the
                     Customer's  possession as of the date of  determination  as
                     reflected  in  the   Customer's   most  recent   Collateral
                     Management  Report   constituting   Products  not  financed
                     through a Product Advance by IBM Credit, provided, however,
                     IBM Credit has a first priority  security  interest in such
                     Products and such Products are new and in un-opened  boxes.
                     The  value  to be  assigned  to  such  inventory  shall  be
                     determined by  commercially  reasonable  methods,  in IBM's
                     sole discretion.

           (C)       Product Financing Charge: Prime Rate plus  3.00%

           (D)       Product Financing Period: 70 days

                                  Page 1 of 11

           (E)       Collateral   Insurance   Amount:   Five   Million   Dollars
                     ($5,000,000.00)

           (F)       A/R Finance Charge:

                     (i)    PRO Advance Charge:      Prime Rate plus 3.00%

                     (ii)   WCO Advance Charge:     Prime Rate plus 3.00%

           (G)       Delinquency Fee Rate:   Prime Rate plus 6.500%

           (H)       Shortfall  Transaction Fee:  Shortfall Amount multiplied by
                     0.30%

           (I)       Free  Financing   Period  Exclusion  Fee:  Product  Advance
                     multiplied by 0.25%

           (J)       Other Charges:

                     (i)   Application Processing Fee: $25,000.00

                     (ii)  Annual Renewal Fee:  $20,000.00

                     (iii) Covenant Recasting  Fee: $25,000.00

                                  Page 2 of 11

II.   BANK ACCOUNT

Customer's  Lockbox(es)  and  Special  Account(s)  will  be  maintained  at  the
following Bank(s):

                    Name of Bank:
                    Address:

                    Phone:
                    Lockbox Address:
                    Special Account #:

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

                    Name of Bank:
                    Address:

                    Phone:
                    Lockbox Address:
                    Special Account #:

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

                    Name of Bank:
                    Address:

                    Phone:
                    Lockbox Address:
                    Special Account #:

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

                    Name of Bank:
                    Address:

                    Phone:
                    Lockbox Address:
                    Special Account #:

                                  Page 3 of 11

III.   FINANCIAL COVENANTS:

Definitions: The following terms shall have the following respective meanings in
this  Attachment.  All amounts shall be determined in accordance  with generally
accepted accounting principles (GAAP).

            "Consolidated Net Income" shall mean, for any period, the net income
            (or loss), after taxes, of Customer on a consolidated basis for such
            period determined in accordance with GAAP.

            "Current" shall mean within the ongoing twelve month period.

            "Current  Assets"  shall mean  assets  that are cash or  expected to
            become cash within the ongoing twelve months.

            "Current  Liabilities" shall mean payment obligations resulting from
            past or current  transactions  that  require  settlement  within the
            ongoing twelve month period. All indebtedness to IBM Credit shall be
            considered  a  Current   Liability   for  purposes  of   determining
            compliance with the Financial Covenants.

            "EBITDA"  shall mean,  for any period  (determined on a consolidated
            basis in accordance with GAAP),  (a) the  Consolidated Net Income of
            Customer  for such  period,  plus (b) each of the  following  to the
            extent  reflected  as  an  expense  in  the  determination  of  such
            Consolidated  Net Income:  (i) the  Customer's  provisions for taxes
            based on income for such  period;  (ii)  Interest  Expense  for such
            period;  and (iii)  depreciation  and  amortization  of tangible and
            intangible assets of Customer for such period.

            "Fixed  Charges" shall mean, for any period,  an amount equal to the
            sum, without duplication,  of the amounts for such as determined for
            the Customer on a consolidated basis, of (i) scheduled repayments of
            principal  of all  Indebtedness  (as reduced by  repayments  thereon
            previously made), (ii) Interest Expense,  (iii) capital expenditures
            (iv) dividends,  (v) leasehold improvement expenditures and (vi) all
            provisions for U.S. and non U.S. Federal, state and local taxes.

            "Fixed  Charge  Coverage  Ratio" shall mean the ratio as of the last
            day of any  fiscal  period of (i)  EBITDA as of the last day of such
            fiscal period to (ii) Fixed Charges.

            "Interest  Expense"  shall  mean,  for  any  period,  the  aggregate
            consolidated  interest  expense of  Customer  during  such period in
            respect  of  Indebtedness  determined  on a  consolidated  basis  in
            accordance with GAAP, including, without limitation, amortization of
            original issue discount on any  Indebtedness and of all fees payable
            in  connection  with the  incurrence  of such  Indebtedness  (to the
            extent included in interest  expense),  the interest  portion of any
            deferred  payment  obligation  and  the  interest  component  of any
            capital lease obligations.

            "Long Term" shall mean beyond the ongoing twelve month period.

            "Long Term Assets" shall mean assets that take longer than a year to
            be  converted  to  cash.  They are  divided  into  four  categories:
            tangible assets, investments, intangibles and other.

            "Long Term Debt"  shall mean  payment  obligations  of  indebtedness
            which mature more than twelve months from the date of determination,
            or mature  within  twelve months from such date but are renewable or
            extendible  at the option of the  debtor to a date more than  twelve
            months from the date of determination.

            "Net Profit  after Tax" shall mean  Revenue  plus all other  income,
            minus all costs, including applicable taxes.

                                  Page 4 of 11

            "Revenue"  shall mean the monetary  expression  of the  aggregate of
            products or services  transferred  by an enterprise to its customers
            for which said  customers  have paid or are  obligated to pay,  plus
            other income as allowed.

            "Subordinated  Debt"  shall mean  Customer's  indebtedness  to third
            parties as  evidenced  by an executed  Notes  Payable  Subordination
            Agreement in favor of IBM Credit.

            "Tangible Net Worth" shall mean:

                  Total Net Worth minus;

                        (a)   goodwill,    organizational   expenses,   pre-paid
                        expenses,  deferred  charges,  research and  development
                        expenses,    software   development   costs,   leasehold
                        expenses, trademarks, trade names, copyrights,  patents,
                        patent applications,  privileges,  franchises,  licenses
                        and rights in any thereof, and other similar intangibles
                        (but not  including  contract  rights) and other current
                        and  non-current  assets  as  identified  in  Customer's
                        financial statements;

                        (b) all accounts  receivable from  employees,  officers,
                        directors, stockholders and affiliates; and

                        (c) all callable/redeemable preferred stock.

            "Total  Assets" shall mean the total of Current Assets and Long Term
            Assets.

            "Total Liabilities" shall mean the Current Liabilities and Long Term
            Debt  less  Subordinated  Debt,   resulting  from  past  or  current
            transactions, that require settlement in the future.

            "Total Net Worth" (the amount of owner's or stockholder's  ownership
            in an enterprise) is equal to Total Assets minus Total Liabilities.

            "Working   Capital"   shall  mean  Current   Assets  minus   Current
            Liabilities.

Customer  will  be  required  to  maintain  the  following   financial   ratios,
percentages  and amounts as of the last day of the fiscal period under review by
IBM Credit:

                                                          Covenant
        Covenant                                          Requirement
        ------------------------------------------        -----------
(i)     Revenue on an Annual Basis (i.e. the current      Greater than Zero and
        fiscal year-to-date Revenue annualized)           Equal to or Less than 25.0 :1.0
        to Working Capital
(ii)    Net Profit after Tax to Revenue                   Equal to or Greater than 0.10
                                                           percent effective quarter
                                                          ending 10/31/01 and thereafter
(iii)   Minimum Tangible Net Worth                        Equal to or Greater than
                                                          $2,500 K  by quarter ended
                                                          10/31/01 and $5,000 K
                                                          effective fye 4/30/02 and
                                                          thereafter

                                  Page 5 of 11

IV.   ADDITIONAL  CONDITIONS  PRECEDENT  PURSUANT  TO  SECTION  5.1  (J)  OF THE
      AGREEMENT:

o     Executed  Blocked Account Amendment;

o     Executed Collateralized  Guaranty of Datatec Systems, Inc.;

o     Executed Collateralized Guaranty of E-Deploy.com, Inc.;

o     Executed Corporate Guaranty of  HH Communications, Inc.;

o     Fiscal year-end financial statements of Datatec Systems, Inc. as of end of
Customer's  prior  fiscal  year  audited  by  an  independent  certified  public
accountant;

o     A  Certificate  of Location of Collateral  whereby the Customer  certifies
where Customer presently keeps or sells inventory,  equipment and other tangible
Collateral;

o     A copy of an all-risk insurance certificate pursuant to Section 7.8 (B) of
the Agreement;

                                  Page 6 of 11

                              IWCF ATTACHMENT B TO
      INVENTORY AND WORKING CAPITAL FINANCING AGREEMENT ("IWCF AGREEMENT")

Customer: Datatec Industries, Inc.

           I.        Liens:
           II.       Locations of Offices, Records and  Inventory:

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

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

                                                      Location      Leased (Y/N)
                                                      --------      ------------

           III.      Fictitious Names:

           IV.       Organization:

                     (A)  Subsidiaries:

                         Name          Jurisdiction       Owner     % Owned
                         ----          ------------       -----     -------

                     (B)  Affiliates:

                         Name                          Capacity
                         ----                          --------

           V.        Judgments:

           VI.       Environmental Matters:

           VII.      Indebtedness:

                                  Page 7 of 11

                                IWCF ATTACHMENT C
      INVENTORY AND WORKING CAPITAL FINANCING AGREEMENT ("IWCF AGREEMENT")

                             COMPLIANCE CERTIFICATE

TO:         IBM CREDIT CORPORATION

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

     The  undersigned   authorized   officers  of   ____________________________
("Customer"),  hereby  certify on behalf of the  Customer,  with  respect to the
Inventory  and  Working  Capital  Financing  Agreement  executed  by and between
____________ and IBM Credit Corporation ("IBM Credit") on ______________,  20__,
as amended from time to time (the "Agreement"), that (A) ___________ has been in
compliance for the period from ______________, 20__ to _________ ____, 20__ with
the  financial  covenants  set  forth  in  Attachment  A to  the  Agreement,  as
demonstrated  below, and (B) no Default has occurred and is continuing as of the
date hereof,  except,  in either case, as set forth below. All capitalized terms
used herein and not otherwise  defined shall have the meanings  assigned to them
in the Agreement.

I.   FINANCIAL COVENANTS:

       Covenant                   Covenant Requirement                                Covenant Actual
       --------                   --------------------                                ---------------
(i)    Annualized Revenue         Greater than Zero and
       to Working Capital         Equal to or Less than 25.0 :1.0
                                  effective quarter ending
                                  10/31/01 and thereafter
(ii)   Net Profit after Tax       Equal to or Greater than  0.10
       to Revenue                 percent effective quarter
                                  ending 10/31/01and thereafter
(iii)  MinimumTangible Net        Equal to or Greater than
       Worth                      $2,500  K effective quarter
                                  ending 10/31/01 and equal to
                                  or greater than $5,000 K by
                                  fiscal year ending 4/30/02

                                  Page 9 of 11

                                IWCF ATTACHMENT C
      INVENTORY AND WORKING CAPITAL FINANCING AGREEMENT ("IWCF AGREEMENT")
                                   (Continued)

II.   CALCULATION OF TANGIBLE NET WORTH:

                   Total Assets MINUS Total Liabilities
LESS:
                   goodwill

                   organizational expenses

                   prepaid expenses

                   deferred charges, etc.

                   leasehold expenses

                   all other

                   callable/redeemable preferred stock

                   officer, employee, director, stockholder
                    and affiliate receivables

                                      Total Tangible Net Worth

Attached  hereto are  Financial  Statements  as of and for the end of the fiscal
_____________  ended on the  applicable  date, as required by Section 7.1 of the
Inventory and Working Capital Financing Agreement.

Submitted by:

-----------------------------------------
                (Customer Name)

By: ______________________________________

Print Name: _______________________________

Title: _____________________________________

                                 Page 10 of 11sec document

                                                                   EXHIBIT 10.30

IBM Credit Corporation

                            COLLATERALIZED GUARANTY

            In consideration of credit and financing  accommodations  granted or
to be granted by IBM Credit Corporation with an office located at 1500 RiverEdge
Parkway,   Atlanta,  GA  30328,  ("IBM  Credit") to  Datatec  Industries,   Inc.
("Customer"),   which  is  in  the  best  interest  of  Datatec  Systems,   Inc.
("Guarantor"), and for other good and valuable consideration received, Guarantor
jointly and severally  guaranties to IBM Credit,  from property held separately,
jointly or in community, the prompt and unconditional performance and payment by
Customer of any and all obligations,  liabilities,  contracts, mortgages, notes,
trust  receipts,   secured   transactions,   inventory  financing  and  security
agreements,  and commercial paper on which Customer is in any manner  obligated,
heretofore,  now,  or  hereafter  owned,  contracted  or  acquired by IBM Credit
("Liabilities"),   whether  the  liabilities  are  individual,  joint,  several,
primary,  secondary,  direct, contingent or otherwise.  Guarantor also agrees to
indemnify  IBM  Credit and hold IBM Credit  harmless  against  any losses it may
sustain and expenses it may incur,  suffer or be liable for as a result of or in
any way arising out of, following,  or consequential to any transactions with or
for the benefit of Customer.

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

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

To secure payment of all of Guarantor's current and future debts and obligations
to IBM Credit,  whether under this Guaranty or any other  agreement  between IBM
Credit and  Guarantor,  whether  direct or  contingent,  Guarantor  does assign,
pledge  and  give  to IBM  Credit  a  security  interest  in all of  Guarantor's
inventory, raw materials, goods in process, finished goods, machines, machinery,
furniture, furnishings, fixtures, vehicles, equipment, accounts receivable, book
debts, notes, chattel paper, acceptances,  rebates,  incentive payments, drafts,
contracts,  contract rights, choses in action, and general intangibles,  whether
now owned or hereafter acquired,  and all attachments,  accessions and additions
thereto, substitutions,  replacements,  accessories, and equipment therefor, and
all  proceeds  therefrom  (all  of the  above  property  is  referred  to as the
"Collateral").  This  security  interest is also  granted to secure  Guarantor's
debts to all of IBM Credit's affiliates.

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

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

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

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

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

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

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

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

IBM Credit may also declare a default under this  Agreement and exercise any and
all rights and remedies  available herein,  if, in IBM Credit's sole discretion,
IBM Credit  determines that the Collateral has decreased in value, and Guarantor
has been unable to either: (a) provide IBM Credit with additional  Collateral in
a form and  substance  satisfactory  to IBM  Credit;  or (b)  reduce  the  total
indebtedness of Customer by an amount sufficient to IBM Credit.

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

Guarantor  promises  that (a) the  Collateral  is and shall remain free from all
claims and liens except IBM Credit's;  (b) Guarantor shall defend the Collateral
against all other claims and demands;  and (c) Guarantor  will notify IBM Credit
before it signs, or authorizes the signing of any financing statement  regardless
of its  coverage.  Where  permitted  by law, IBM Credit may perfect IBM Credit's
security interest in the Collateral by filing a financing  statement signed only
by IBM  Credit.  Guarantor  will  execute any and all  documents  IBM Credit may
request to confirm or perfect IBM  Credit's  title or  security  interest in the
Collateral.

Guarantor  represents  that it is duly organized  under the laws of the State of
______________  and  that  its  principal  place  of  business  is  located  at:
_____________________________________________________________________________.
(Number and Street)                              (City, County, State, Zip Code)

Guarantor   represents   that  its  business  is  conducted  as  a   ___________
CORPORATION,   ________  SOLE  PROPRIETORSHIP,   ___________  LIMITED  LIABILITY
COMPANY,  ___________  PARTNERSHIP,  _________  JOINT VENTURE (check  applicable
term).  Guarantor  agrees to notify IBM Credit  immediately of any change in its
state of organization,  identity, name, form of ownership or management,  and of
any  change  in  its   principal   place  of  business,   or  any  additions  or
discontinuances of other business locations.

The Collateral  shall be kept at Guarantor's  principal place of business and at
the following addresses:
________________________________________________________________________________

________________________________________________________________________________

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

________________________________________________________________________________

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

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

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

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

Guarantor waives: notice of the acceptance of this Guaranty, and of presentment,
demand  and  protest;  notices  of  nonpayment,  nonperformance,  any  right  of
contribution  from  other   guarantors,  and  dishonor;  notices  of  amount  of
indebtedness  of  Customer  outstanding  at any time;  notices of the number and
amount of advances made by IBM Credit to Customer in reliance on this  Guaranty;
notices of any legal proceedings against Customer;  notice and hearing as to any
prejudgment  remedies;  and any  other  demands  and  notices  required  by law.
Guarantor further waives all rights of setoff and all counterclaims  against IBM
Credit or Customer.  Guarantor  also waives any and all rights in and notices or
demands  relating  to  any  Collateral  now  or  hereafter  securing  any of the
Liabilities,  including,  but not  limited  to, all  rights,  notices or demands
relating,  whether directly or indirectly,  to the sale or other  disposition of
any or all of such  Collateral or the manner of such sale or other  disposition.
All waivers by Guarantor  herein shall survive any  termination or revocation of
this Guaranty.

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

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

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

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

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

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

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

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

WITNESS                                      DATATEC SYSTEMS, INC.
                                            Name of Corporate Guarantor

  /s/ William Aloia                         By: /s/ Ron A. Marino
-----------------------------------            --------------------------------

Print Name:  William Aloia                  Print Name: Ron A. Marino
           ------------------------                    ------------------------
                                            Title:  CFO
                                                  -----------------------------

              William Aloia                 Date: 5/2/01
  NOTARY PUBLIC, STATE OF NEW JERSEY              -------------------------

            NO 2162129                      Guarantor's Address:
       QUALIFIED BERGEN COUNTY                                  ---------------
COMMISSION EXPIRES FEBRUARY 3, 2004          23 Madison Rd.
                                            -----------------------------------
ATTEST:                                      Fairfield, NJ 07004
    /s/ Ron A. Marino                       -----------------------------------
------------------------------------
        Secretary

Print Name:      Ron A. Marino
------------------------------------

                                            IBM Credit Corporation

                                            By:
                                               ----------------------------

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

                             SECRETARY'S CERTIFICATE

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

     "BE IT RESOLVED that any officer of this  corporation is hereby  authorized
to execute a guaranty of the obligations of Datatec Industries, Inc. ("Customer")
to IBM Credit  Corporation on behalf of the  corporation,  which  instrument may
contain  such terms as any officer may see fit  including,  but not limited to a
grant of a security  interest in all assets of this  corporation  to secure this
corporation's liabilities and obligations to IBM Credit Corporation; a waiver of
notice of the acceptance of this guaranty; presentment; demand; protest; notices
of nonpayment, nonperformance,  dishonor, the amount of indebtedness of Customer
outstanding at any time, any legal proceedings  against Customer,  and any other
demands  and  notices  required  by law;  any right of  contribution  from other
guarantors; and all setoffs and counterclaims."

     IN WITNESS  WHEREOF and as Secretary of the named corporation I have hereunto
set my hand and  affixed  the  corporate  seal on this 2nd day of May,  2001.

                                             /s/ Ron A. Marino
                                        -------------------------------------
                                                (Corporate Guarantor)

CORPORATE SEAL

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