Document:

EXHIBIT 10.1

Exhibit 10.1

SECURITY AGREEMENT

                    SECURITY AGREEMENT (the "Agreement"), dated as of October 16, 2000 by and
between SYSTEMAX INC., a Delaware corporation (the "Systemax"),
and each of the direct and indirect subsidiaries of Systemax party hereto
(together with Systemax, the "Grantors") and THE CHASE MANHATTAN BANK, as
agent (in such capacity, the "Agent") for The Bank of New York
("BNY") and The Chase Manhattan Bank ("Chase"; and collectively
with BNY, the "Banks").

                    
WHEREAS, (i) BNY has heretofore made loans and advances to Systemax and certain
of the other Grantors pursuant to that certain Amended and Restated Master
Promissory Note, dated April 19, 2000 (the "BNY Note"), (ii) BNY may, in the
exercise of its sole discretion, continue to make loans and advances available
to Systemax and certain of the other Grantors after the date hereof, and (iii)
each of the Grantors shall derive benefits of the loans and advances made to
Systemax by BNY; and

                    
WHEREAS, (i) Chase has heretofore made loans and advances to, and issued letters
of credit for the account of Systemax pursuant to that certain Master Grid Note
dated, June 30, 2000 as the same may be modified, extended or replaced from time
to time (the "Chase Note"), (ii) Chase may, in the exercise of its sole
discretion, continue to make loans and advances available to, and issue letters
of credit for the account of, Systemax after the date hereof, and
(iii) each of the Grantors shall derive benefits of the loans and advances made
to Systemax by Chase; and

                    
WHEREAS, Systemax and certain of the Grantors may from time to time incur
obligations to BNY and Chase in the form of overdrafts and related liabilities
arising from treasury, depository and cash management services or in connection
with automated clearing house transfers of funds (the "ACH Obligations"); and

                    
WHEREAS, (i) to secure the performance of Systemax and certain of the other
Grantors under the BNY Note and the Chase Note (collectively, the "Notes") and
to secure the repayment by Systemax and certain of the other Grantors of loans
and advances (the "Loans") made or to be made under the Notes or issuance of
letters of credit (the "Letters of Credit") for the account of Systemax, (ii) as
a condition precedent to the making of any additional Loans by the Banks and the
issuance of any additional Letters of Credit and (iii) to secure the payment of
the ACH Obligations, the Grantors shall have granted a security interest, pledge
and lien on all of the Grantors' accounts receivable as more fully set forth
herein; and

                    
NOW, THEREFORE, in consideration of the premises, the Grantors hereby agree with
the Agent as follows:

                    
Section 1. Grant of Security.Each of the Grantors hereby transfers, grants,
bargains, sells, conveys, hypothecates, assigns, pledges and sets over to the
Agent for its benefit and the ratable benefit of the Banks and hereby grants to
the Agent for its benefit and the ratable benefit of the Banks, a perfected
pledge and security interest in all of the Grantors' right, title and interest
in and to the following (the "Collateral"):

                    
(a)     all present and future accounts, accounts receivable and other rights of
each of the Grantors to payment for goods sold or leased or for services
rendered (except those evidenced by instruments or chattel paper), whether now
existing or hereafter arising and wherever arising, and whether or not they have
been earned by performance (collectively, the "Accounts"); and

                    
(b)     all proceeds and products of any of the foregoing, in any form including
cash.

                    
Section 2. Security for Obligations. This Agreement and the Collateral secure
the payment and performance of all obligations of each of the Grantors, now or
hereafter existing, under the Notes, whether for principal, interest, fees,
expenses or otherwise, the payment and performance of all ACH Obligations of
each of the Grantors and all obligations of each of the Grantors now or
hereafter existing under or in respect of this Agreement (all such obligations
of the Grantor being herein called the "Obligations").

                    
Section 3. Representations and Warranties. Each Grantor, jointly and severally,
represents and warrants (but only with regard to itself) as follows:

                    
(a)     The chief places of business and chief executive offices of each of the
Grantors and the offices where each Grantor keeps its records concerning any
Accounts and all originals of all chattel paper which evidence any Account are
located at the places specified in Schedule 1 hereto.

                    
(b)     Other than as set forth on Schedule 2 hereto, (i) each of the Grantors owns
the Collateral free and clear of any lien, security interest, charge or
encumbrance except for the security interest created by this Agreement and (ii)
no effective financing statement or other instrument similar in effect covering
all or any part of the Collateral is on file in any recording office, except
such as may have been filed in favor of the Agent relating to this Agreement.

                    
Section 4. Further Assurances.

                    
(a)     Each of the Grantors agrees that from time to time, at the expense of the
Grantors, it will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary, or that the Agent
may reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Agent to exercise and
enforce any of its rights and remedies hereunder with respect to any Collateral.
Without limiting the generality of the foregoing, each of the Grantors will
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be necessary, or as the
Agent may reasonably request, in order to perfect and preserve the security
interests granted or purported to be granted hereby.

                    
(b)     Each Grantor hereby authorizes the Agent to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of
the Collateral without the signature of such Grantor where permitted by law.

                    
(c)     Each Grantor will furnish to the Agent from time to time statements and
schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Agent may reasonably request in
connection with any prospective sale of Collateral pursuant to Section 10
hereof, all in reasonable detail.

                    
Section 5. As to Accounts.

                    
(a)     Each Grantor shall keep its chief place of business and chief executive
office and the offices where it keeps its records concerning the Accounts, and
the offices where it keeps all originals of all chattel paper which evidence
Accounts, at the location or locations therefor specified in Section 3(a) or,
upon 15 days' prior written notice to the Agent, at such other locations in a
jurisdiction where all actions required by Section 4 shall have been taken with
respect to the Accounts. Each Grantor will hold and preserve such records and
chattel paper and will permit representatives of the Agent, at any time during
normal business hours and upon reasonable prior written notice, to inspect and
make abstracts from such records and chattel paper.

                    
(b)     Except as otherwise provided in this subsection (b), each Grantor shall
continue to collect in accordance with its customary practice, at its own
expense, all amounts due or to become due to such Grantor under the Accounts
and, prior to the occurrence and continuance of an Event of Default (as defined
below), such Grantor shall have the right to adjust, settle or compromise the
amount or payment of any Account, or release wholly or partly any account debtor
or obligor thereof, or allow any credit or discount thereon, all in accordance
with its customary practices. In connection with such collections, the Grantors
may, upon the occurrence and during the continuation of an Event of Default,
take (and at the direction of the Agent shall take) such action as the Grantors
or the Agent may reasonably deem necessary or advisable to enforce collection of
the Accounts; provided, that upon written notice by the Agent to Systemax
following the occurrence and during the continuation of an Event of Default, of
its intention to do so, the Agent shall have the right to notify the account
debtors or obligors under any Accounts of the assignment of such Accounts to the
Agent and to direct such account debtors or obligors to make payment of all
amounts due or to become due to such Grantor thereunder directly to the Agent
and, upon such notification and at the expense of such Grantor, to enforce
collection of any such Accounts, and to adjust, settle or compromise the amount
or payment thereof, in the same manner and to the same extent as such Grantor
might have done. After the notice provided for in the proviso to the preceding
sentence, and unless and until such notice is rescinded by the Agent by written
notice to Systemax (i) all amounts and proceeds (including instruments) received
by such Grantor in respect of the Accounts shall be received in trust for the
benefit of the Agent (for the ratable benefit of the Banks) hereunder, shall be
segregated from other funds of the Grantors and shall be forthwith paid over to
the Agent in the same form as so received (with any necessary endorsement) to be
held as cash collateral and either (A) released to the Grantors if such Event of
Default shall have been cured or waived or (B) if such Event of Default shall be
continuing, applied as provided by Section 10, and (ii) the Grantors shall not
adjust, settle or compromise the amount or payment of any Account, or release
wholly or partly any account debtor or obligor thereof, or allow any credit or
discount thereon. As used herein, the term "Event of Default" shall mean (i) an
Event of Default (as defined in the Chase Note), (ii) a default shall have
occurred in the due observance or performance of any of the terms or provisions
contained in the BNY Note, or (iii) a default shall have occurred in the due
observance or performance of any of the provisions of this Agreement. Any action
taken by the Agent pursuant to this clause (b) shall be subject to three (3)
calendar days' notice to Systemax with an opportunity by Systemax during such
three (3) calendar day period to cure the default which is the basis upon any
action to be taken by the Agent pursuant to this clause (b) (it being understood
that if Systemax cures such default within such period, the Agent shall refrain
from taking any action pursuant to this clause (b)).

                    
Section 6. Transfers to Others; Liens. Each Grantor shall not:

                    
(a)     Sell, assign (by operation of law or otherwise) or otherwise dispose of any
of the Collateral, except for dispositions (i) permitted by the Notes, (ii) in
the ordinary course of business or (iii) other than in the ordinary course of
business, provided the net cash proceeds thereof are promptly paid over to the
Agent for application to the Obligations as provided for in Section 10(b).

                    
(b)     Create or suffer to exist any lien, security interest or other charge or
encumbrance upon or with respect to any of the Collateral to secure any
obligation of any person or entity, except for the security interest created by
this Agreement or except as disclosed on Schedule 2 hereto.

                    
Section 7. Agent Appointed Attorney-in-Fact. Each Grantor
hereby irrevocably appoints the Agent such Grantor's attorney-in-fact (which
appointment shall be irrevocable and deemed coupled with an interest), with full
authority in the place and stead of such Grantor and in the name of such Grantor
or otherwise, from time to time in the Agent's discretion, upon and during the
occurrence and continuation of an Event of Default, to take any action and to
execute any instrument which the Agent may deem necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation:

	  
	(i)
	to ask, demand, collect, sue for, recover, compound, receive and give
acquittance and receipts for moneys due and to become due under or in respect of
any of the Collateral,

	  
	(ii)
	to receive, endorse, and collect any drafts or other instruments, documents and
chattel paper, in connection with clause (i) above, and

	  
	(iii)
	to file any claims or take any action or institute any proceedings which the
Agent may deem necessary or desirable for the collection of any of the
Collateral or otherwise to enforce the rights of the Agent with respect to any
of the Collateral.

                    
Section 8. Agent May Perform. Subject to the last sentence of Section 5(b), if
any Grantor fails to perform any agreement contained herein, the Agent may
itself perform, or cause performance of, such agreement, and the reasonable
expenses of the Agent incurred in connection therewith (as to which invoices
have been furnished) shall be payable by the Grantors under Section 11(b).

                    
Section 9. The Agent's Duties. The powers conferred
on the Agent hereunder are solely to protect its interest and the interests of
the Banks in the Collateral and shall not impose any duty upon it to exercise
any such powers. Except for the safe custody of any Collateral in its possession
and the accounting for moneys actually received by it hereunder, the Agent shall
have no duty as to any Collateral or as to the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any
Collateral, whether or not the Agent has or is deemed to have knowledge of such
matters.

                    
Section 10. Remedies. If any Event of Default shall have occurred and be
continuing:

                    
(a)     The Agent may, upon instruction from the Banks, exercise in respect of the
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party on
default under the Uniform Commercial Code and also may (i) require each Grantor
to, and each Grantor hereby agrees that it will at its expense and upon request
of the Agent forthwith, assemble all or part of the Collateral as directed by
the Agent and make it available to the Agent at a place to be designated by the
Agent which is reasonably convenient to both parties and (ii) without notice
except as specified in the following sentence, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of the Agent's
offices or elsewhere, for cash, on credit or for future delivery, and at such
price or prices and upon such other terms as the Agent may deem commercially
reasonable. Each Grantor agrees that, to the extent notice of such sale shall be
required by law, at least ten days' notice to the Grantors of the time and place
of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Agent shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. The Agent may
adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned.

                    
(b)     All cash proceeds received by the Agent in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral
shall be held by the Agent as collateral for, and promptly applied (after
payment of any amounts payable to the Agent pursuant to Section 11 hereof) in
whole or in part against, all or any part of the Obligations in such order as
the Agent, upon instruction from the Banks, shall elect. Any surplus of such
cash or cash proceeds held by the Agent and remaining after payment in full of
all the Obligations shall be paid over to the Grantors or to whomsoever may be
lawfully entitled to receive such surplus.

                    
Section 11. Indemnity and Expenses.

                    
(a)     Each Grantor, jointly and severally, agrees to indemnify the Agent from and
against any and all claims, losses and liabilities growing out of or resulting
from this Agreement (including, without limitation, enforcement of this
Agreement), except claims, losses or liabilities directly arising from the
Agent's own gross negligence, willful misconduct or bad faith.

                    
(b)     The Grantors will upon demand pay to the Agent the amount of any and all
reasonable expenses (as to which invoices have been furnished), including the
reasonable fees and disbursements of its counsel and of any experts and agents,
which the Agent may incur in connection with (i) the administration of this
Agreement, (ii) the custody, preservation, use or operation of, or the sale of,
collection from, or other realization upon, any of the Collateral, (iii) the
exercise or enforcement of any of the rights of the Agent hereunder or (iv) the
failure by any of the Grantors to perform or observe any of the provisions
hereof.

                    
(c)     Each of the Grantors agrees that the Agent does not assume, and shall have
no responsibility for, the payment of any sums due or to become due under any
agreement or contract included in the Collateral or the performance of any
obligations to be performed under or with respect to any such agreement or
contract by any of the Grantors, and except as the same may have resulted from
the gross negligence, willful misconduct or bad faith of the Agent, each of the
Grantors hereby jointly and severally agree to indemnify and hold the Agent
harmless with respect to any and all claims by any person relating thereto.

                    
Section 12. Security Interest Absolute. All rights of the Agent and security
interests hereunder, and all obligations of each of the Grantors hereunder,
shall be absolute and unconditional, irrespective of any circumstance which
might constitute a defense available to, or a discharge of, any guarantor or
other obligor in respect of the Obligations.

                    
Section 13. Amendments; Etc. No amendment or waiver
of any provision of this Agreement, nor any consent to any departure by any of
the Grantors herefrom, shall in any event be effective unless the same shall be
in writing and signed by the party against whom enforcement is sought, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

                    
Section 14. Addresses for Notices. All notices
and other communications provided for hereunder shall be in writing (including
telephonic, telex, facsimile or cable communications) and shall be mailed,
telegraphed, telefaxed, transmitted, cabled or delivered:

	  
	
If to any Grantor, to it at:

c/o Systemax Inc.

22 Harbor Park Drive

Port Washington, NY 11050

Attn: Mr. Steven M. Goldschein

with a copy to:

Stroock and Stroock and Lavan

180 Maiden Lane

New York, NY  10038

Attn: Theodore S. Lynn, Esq.

If to the Agent, to it at:

The Chase Manhattan Bank

270 Park Avenue

New York, New York 10017

Attn: Mr. Gev Nentin

with a copy to:

Morgan, Lewis & Bockius LLP

101 Park Avenue

New York, New York 10178

Attn:  Richard S. Toder, Esq.

                    
Section 15. Continuing Security Interest. This Agreement shall create a
continuing security interest in the Collateral and shall (i) remain in full
force and effect until payment in full of the Obligations, (ii) be binding upon
each of the Grantors, their successors and assigns and (iii) inure, together
with the rights and remedies of the Agent hereunder, to the benefit of the Agent
and each of the Banks and their respective successors, transferees and assigns.
Upon the payment in full of the Obligations, the security interest granted
hereby shall terminate and all rights to the Collateral shall revert to the
Grantors subject to any existing liens, security interests or encumbrances on
such Collateral. Upon any such termination, the Agent will, at the Grantor's
expense, execute and deliver to the Grantors such documents as the Grantors
shall reasonably request to evidence such termination.

                    
Section 16. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, except as required by
mandatory provisions of law and except to the extent that the validity or
perfection of the security interest hereunder, or remedies hereunder, in respect
of any particular Collateral are governed by the laws of a jurisdiction other
than the State of New York and by Federal law to the extent the same has
pre-empted the law of the State of New York or such other jurisdiction.

                    
Section 17. Headings. Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

[SIGNATURE PAGES FOLLOW]

                    
IN WITNESS WHEREOF, each of the Grantors and the Agent have caused this
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first above written.

	  
	GRANTORS:

SYSTEMAX INC.

By:  /s/ Stephen M. Goldschein                              

          Name:  Stephen M. Goldshein

          Title:   Sr. V.P.

CONTINENTAL DYNAMICS CORP.

GLOBAL COMPUTER SUPPLIES INC.

MIDWEST MICRO CORP.

DARTEK CORP.

NEXEL INDUSTRIES INC.

TIGER DIRECT INC.

By:  /s/ Stephen M. Goldschein                              

          Name:  Stephen M. Goldshein

          Title:   V.P.

THE CHASE MANHATTAN BANK as Agent

By:  /s/ Robert Addea                              

          Name:  Robert Addea

          Title:   Vice President

SCHEDULE 1

Locations of Chief Executive

Office, Chief Place of Business

and Locations Where Records

Concerning Accounts are Kept

Systemax Inc.

22 Harbor Park Drive

Port Washington, NY 11050

Continental Dynamics Corp.

22 Harbor Park Drive

Port Washington, NY 11050

Global Computer Supplies Inc.

11 Harbor Park Drive

Port Washington, NY 11050

Midwest Micro Corp.

6990 U.S. Route 36 East

Fletcher, OH 45326

Dartek Corp.

175 Ambassador Drive

Naperville, IL 60540

Nexel Industries Inc.

22 Harbor Park Drive

Port Washington, NY 11050

Tiger Direct Inc.

7795 West Flagler

Suite 35

Miami, FL 33144

SCHEDULE 2

Permitted Liens

All of the following liens relate to certain inventory and the proceeds thereof (including accounts) of Tiger Direct, Inc., a Florida corporation and subsidiary of Systemax, Inc.  The UCC Statements were filed with the
Florida Secretary of State.

	Secured Party
	UCC Statement File Date
	File Number

	1)
	Ingram Micro Inc.

1759 Wehele Dr.

Williamsville, NY 14221
	4/5/94

(Original)
	94000006742

	2)
	
Ingram Micro
	11/9/98

(Amendment)
	980000250405

	3)
	Ingram Micro
	11/9/98

(Continuation)
	980000250405

	4)
	Hewlett Packard Company

5301 Stevens Creed Blvd.

Santa Clara, CA 95052
	10/10/95

(Original)
	960000015183

	5)
	Grana and Associates, Inc.

d/b/a Direct Source Distributing

4548 McEwen Rd.

Farmers Branch, Texas 75244
	12/19/95

(Original)
	950000253488ARTICLES OF AMENDMENT

                                     TO THE

                          ARTICLES OF INCORPORATION OF

                                EFTC CORPORATION

                  Pursuant to the provisions of the Colorado Business
Corporation Act, the undersigned corporation adopts the following Articles of
Amendment to its Articles of Incorporation:

                  FIRST:  The name of the corporation is EFTC Corporation.

                  SECOND: The following amendment to the Articles of
Incorporation was adopted on August 22, 2000, as prescribed by the Colorado
Business Corporation Act, by a vote of the shareholders. The number of shares
voted for the amendment was sufficient for approval.

                  THIRD: Subparagraph (a) of Article Two of the Articles of
Incorporation is hereby amended to read in its entirety:

                (a) Total Capital. The total number of shares of capital stock
                that the Corporation shall have the authority to issue is
                80,000,000, of which 75,000,000 shares shall be common stock
                with a par value of $0.01 per share ("Common Stock") and
                5,000,000 shares shall be preferred stock with a par value of
                $0.01 per share ("Preferred Stock").

                FOURTH:  Except as amended hereby, the provisions of the
Articles of Incorporation, as heretofore amended, shall remain in full force and
effect.

                Dated:  August 22, 2000

                                           EFTC CORPORATION

                                           By: /s/ August P. Bruehlman
                                           Name: August P. Bruehlman
                                           Title:  Secretary

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