Document:

<PAGE>
                                                                   EXHIBIT 10.5

                              IBM GLOBAL FINANCING

               --------------------------------------------------
                              AMENDED AND RESTATED
               PLATINUM PLAN AGREEMENT (WITH INVOICE DISCOUNTING)
               --------------------------------------------------

                       IBM BELGIUM FINANCIAL SERVICES S.A.
                                       and

                           SUPPLIES DISTRIBUTORS S.A.

                   BUSINESS SUPPLIES DISTRIBUTORS EUROPE B.V.

                                   PFSWEB B.V.

<PAGE>

                                    CONTENTS

<Table>
<S>     <C>                                                                             <C>
1.      DEFINITIONS......................................................................1

2.      CREDIT LIMIT.....................................................................8

3.      SUPPLIER PURCHASE FACILITY.......................................................8

4.      IBM REIMBURSABLES, IBM RECEIVABLES AND VAT RECEIVABLES DISCOUNTING FACILITY......9

5.      PREPAYMENTS.....................................................................11

6.      IBM REIMBURSABLES, IBM RECEIVABLES, VAT RECEIVABLES AND RECEIVABLES RIGHTS......11

7.      CREDIT CHARGES AND PAYMENTS.....................................................13

8.      REPRESENTATIONS, WARRANTIES AND COVENANTS.......................................15

9.      DEFAULTS AND REMEDIES...........................................................19

10.     TERMINATION.....................................................................20

11.     GENERAL.........................................................................20
</Table>

<PAGE>

                              IBM GLOBAL FINANCING

               PLATINUM PLAN AGREEMENT (WITH INVOICE DISCOUNTING)

THIS AGREEMENT is made on the date specified against the signature of IBM GF
below among Suppliers Distributors S.A. with a registered number of RC Liege
208795 with an address of Rue Louis Bleriot 5, B-4460 Grace-Hollogne, Belgium
("SDSA"), and Business Supplies Distributors Europe BV a Netherlands company
registered in Maastricht with a with a Netherlands trade registration number of
HR Maastricht 14062763 with an address of Dalderhaag 13, 6136 Sittard, The
Netherlands ("BSDE") (SDSA and BSDE collectively, "YOU"), PFS Web B.V a
Netherlands company registered in Maastricht under the number 17109541 with a
Belgian trade registration number of R.C. Liege 204162 ("PFS Web B.V.") (SDSA,
BSDE and PFS Web B.V. collectively, the "Loan Parties) and IBM Belgium Financial
Services N.V. with a registered number of R.C. Brussels 451.673 with an address
of Square Victoria Regina 1,BE-1210 Brussels VAT BE 424300467 ("IBM GF" or "US")
and it amends and restates that IBM Global Financing Platinum Plan Agreement
(with Receivables Discounting) executed among the same parties on 29 September
2001 (the "Prior Agreement") such that rights and obligations of both parties
under the Prior Agreement are rights and obligations under this Agreement. This
Agreement is effective as of the Effective Date (as defined herein).

WHEREAS IBM BF and the Loan Parties are parties to that certain Platinum Plan
Agreement (with Invoice Discounting) dated 29 September 2001 (as heretofore
amended, the ("Existing Financing Agreement");

WHEREAS the Loan Parties desire to enter into a factoring facility with Fortis
Commercial Finance N.V with a place of business at Steenweg Op Tielen 51
Turnhout Belgium 2300 ("Fortis") for the purpose of Fortis factoring all of the
Loan Parties Receivables (as defined herein) except Receivables from any IBM
entity and IBM GF is willing to amend and restate the Existing Financing
Agreement to discontinue factoring those Receivables which Fortis will factor,
all according to the terms and conditions set forth herein;

WHEREAS we agree to provide you with a Credit Limit in respect of our purchase
of Supplier Invoices, IBM Reimbursables, IBM Receivables and/or VAT Receivables
under the terms and conditions of this Agreement.

AGREEMENT

1.        DEFINITIONS

          1.1       In this Agreement the following terms shall (unless the
                    context otherwise requires) have the following meanings:-

                    "ADDITIONAL COLLATERAL": means that as specified in the
                    Schedule, it being understood that Additional Collateral is
                    not used when calculating the Shortfall Amount, if any, as
                    described in Clause 7.4;

                    "AFFILIATE": means with respect to any Person, any other
                    Person (the "Affiliate") meeting one of the following: (i)
                    at least 10% of the Affiliate's equity is owned, directly or
                    indirectly, by such Person; (ii) at least 10% of such
                    Person's equity is owned, directly or indirectly, by the
                    Affiliate; or (iii) at least 10% of such Person's equity and
                    at least 10% of the Affiliate's equity is owned, directly or
                    indirectly, by the same Person or Persons. All your
                    officers, directors, joint venturers, and partners shall
                    also be deemed to be Affiliates for purposes of this
                    Agreement. All of Loan Parties' officers, directors, joint
                    venturers, and partners shall also be deemed to be
                    Affiliates of such Loan Party for purposes of this
                    Agreement.

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<PAGE>

                    "AGREEMENT": means this Agreement and all its Schedules and
                    any supplements to this Agreement as the same may be
                    amended, supplemented or modified from time to time;

                    "AIF": means that certain Agreement for Inventory Financing
                    among IBM Credit Corporation and Holdings, IFP, SDI, PFS and
                    PFSweb, as amended and supplemented from time to time;

                    "AMENDED AND RESTATED NOTES PAYABLE SUBORDINATION AGREEMENT"
                    means the amended and restated notes payable subordination
                    executed by SDI in favour of IBM GF in form and substance
                    satisfactory to IBM GF in its sole discretion;

                    "APPROVED CURRENCY" means any currency other than euro
                    agreed from time to time by you and us to be an approved
                    currency for the purposes of this Agreement;

                    "AUDITORS": means a nationally recognised firm of
                    independent accountants acceptable to us;

                    "AUTHORISED OFFICER": means those individuals occupying the
                    positions listed in Attachment A to this Agreement and who
                    are authorised by you to provide the instructions,
                    authorisations, agreements, etc. as specified in such
                    Attachment A;

                    "AUTHORISED SUPPLIER": means any supplier, for the purposes
                    of this Agreement, from whom we have agreed to purchase the
                    Supplier Invoices generated by their sales of Products to
                    you;

                    "AVAILABLE CREDIT": means from time to time the Credit Limit
                    less the aggregate of:

                    (i)       the principal amount of Supplier Obligations due
                              and outstanding by you to us; and

                    (ii)      the aggregate amount of Prepayments made to you by
                              us on account of the purchase price of IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              which are outstanding; and

                    (iii)     any other sum due and payable by you to us under
                              the terms of this Agreement, including interest
                              due and payable and outstanding Credit Charges;

                    "BASE RATE": means the rate so referred to in the Schedule;

                    "BSD": means Business Supplies Distributors, Inc.

                    "BSD A": means BSD Acquisition Corp., Inc., a corporation
                    duly organized under the laws of the state of Delaware, with
                    its principal place of business at 500 North Central
                    Expressway, Plano, TX 75074, now known as Supplies
                    Distributors, Inc.;

                    "BSDE" means as defined in the caption;

                    "BSDE SUPPLIER INVOICES" means undisputed Supplier Invoices
                    which were issued to BSDE prior to the Merger and which we
                    will pay the applicable Authorised Supplier on your behalf;
                    "BUSINESS DAY": means (a) in relation to any payment or to a
                    rate fixing, any day (other than a Saturday or Sunday) which
                    is a TARGET DAY; (b) in relation to any other matter (e.g.
                    notices) any day (other than a Saturday or Sunday) on which
                    banks are open in Brussels;

                    "CLOSING DATE": MEANS __ MARCH 2002;

                    "COLLATERAL" means the aggregate value, in our assessment,
                    of outstanding IBM Reimbursables, IBM Receivables and VAT
                    Receivables we have purchased from you together with any
                    Receivables Rights and any other assets, including
                    stock-in-trade which are charged to us by way of a Lien and
                    which is not subject to retention of title by any party
                    other than us.

                    "COMMENCEMENT DATE": means the commencement date of this
                    Agreement as specified in the Schedule;

                                                                              2
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                    "CONGRESS": means Congress Financial Corporation
                    (Southwest), a lender to SDI;

                    "CREDIT CHARGES": means our charges to you (as set out in
                    the Schedule) for purchasing Supplier Invoices from an
                    Authorised Supplier as set out in Section 3 of this
                    Agreement and purchasing IBM Reimbursables, IBM Receivables
                    and VAT Receivables from you pursuant to Section 4 of this
                    Agreement;

                    "CREDIT LIMIT": means the sum specified in the Schedule
                    which is subject to change by us;

                    "DEBTOR": means a customer of yours pursuant to a Sales
                    Contract who is indebted to you in respect of a Receivable;

                    "DEFAULT RATE" means the percentage as detailed as such in
                    the Schedule;

                    "DISCOUNT CHARGE" means the charge to be calculated as
                    described in Clause 5.3 at a rate specified in the Schedule
                    or such other percentage as we may from time to time agree;

                    "DUE DATE" means the date that payment is due to us which
                    is, unless otherwise agreed by us in writing (1) for
                    Supplier Obligations, the last day of the No Charge Period
                    or the Extended Credit Period as applicable (2) for Credit
                    Charges, the date as specified on the billing statement (3)
                    for Shortfall Amounts, as specified in Clause 7.4 and (4)
                    for Discount Charges, the date specified on the billing
                    statement if there is insufficient Available Credit at the
                    time such Discount Charges are normally credited by us
                    against your account;

                    "ELIGIBLE RECEIVABLE": means an IBM Receivable or VAT
                    Receivable which is not (or does not become) an Ineligible
                    Receivable;

                    "EQUITY INTERESTS": means with respect to any Person, means
                    (a) all shares, interests, participations, rights or other
                    equivalents (however designated, whether voting or
                    non-voting) of or interests in corporate or capital stock,
                    including, without limitation, shares of preferred or
                    preference stock of such Person, (b) all partnership
                    interests (whether general or limited) of such Person, (c)
                    all membership interests or limited liability company
                    interests in such Person, (d) all other equity or ownership
                    interests in such Person of any other type and (e) all
                    warrants, rights or options to purchase any of the
                    foregoing.

                    "EFFECTIVE DATE": means that date on which Fortis, to IBM
                    GF's satisfaction pays IBM GF the full amount owed by you to
                    us for all Receivables except IBM Receivables. Such date
                    shall be confirmed in writing immediately after the event.

                    "EVENT OF DEFAULT": means any of the events set out in
                    Clause 9.1 of this Agreement;

                    "EXTENDED CREDIT CHARGE" means the charge (if any) as
                    specified in the Schedule incurred for outstanding Supplier
                    Obligations during an Extended Credit Period or such other
                    charge as we may from time to time agree;

                    "EXTENDED CREDIT PERIOD" means (if agreed by us) the period
                    specified in the Schedule following immediately after the No
                    Charge Period and extending the time for payment by you of
                    Supplier Obligations;

                    "FINANCIAL STATEMENTS": means your balance sheets,
                    statements of account including profit and loss accounts,
                    and statements of cash flows prepared in accordance with
                    generally accepted accounting principles;

                    "FORTIS" means as defined in the second "Whereas" clause
                    hereof;

                    "GAAP" means the generally accepted accounting principles in
                    the United States as in effect from time to time;

                    "GUARANTOR": means Holdings, PFS, PFSweb and SDI and any
                    other party that delivers a guaranty in favour of us;

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<PAGE>

                    "HOLDINGS": means Business Supplies Distributors Holdings,
                    LLC, a limited liability company duly organized under the
                    laws of the state of Delaware, with its principal place of
                    business at 500 North Central Expressway, Plano, TX 75074

                    "IBM": means International Business Machines Corporation;

                    "IBM CREDIT": means IBM Credit Corporation, a Delaware
                    corporation with a place of business at 4000 Executive
                    Parkway, Third Floor, San Ramon, CA 94583;

                    "IBM RECEIVABLE"; means a Receivable payable by IBM, an IBM
                    Subsidiary or an IBM Affiliate provided that we have
                    received evidence satisfactory to it that IBM has waived its
                    right to setoff such amounts owed to you with any amount you
                    may owe to IBM;

                    "IBM REIMBURSABLES": means amounts reimbursable from IBM, an
                    IBM Subsidiary or IBM Affiliate, arising from incentive
                    payments, rebates invoiced on a monthly basis, discounts,
                    credits, and refunds in each case owed by IBM to you
                    provided that (i) you obtain (and provide to IBM GF along
                    with the monthly collateral reports required under this
                    Agreement) from IBM written confirmation (a) acknowledging
                    the obligation of IBM to pay such amount, (b) stating the
                    date the amount is due to be paid and (c) IBM waiving its
                    right to setoff such amounts owed to you with any amount you
                    may owe to IBM; (ii) such IBM Reimbursables do not remain
                    unpaid for more than sixty (60) days from the date the
                    obligation of IBM occurred; and (iii) such IBM Reimbursables
                    delivered to us directly by IBM in the form of a Credit Note
                    or some other form acceptable to us.";

                    "IBM SINGAPORE": means IBM Singapore, Global Procurement
                    Services Group - Singapore Trading Center

                    "IBM US": means the Printing Systems Division of IBM
                    facilities located in the United States of America;

                    "IFP" means Inventory Financing partners, LLC, a US limited
                    liability corporation;

                    "INELIGIBLE RECEIVABLE": means any of the following: (i) any
                    IBM Receivable or VAT Receivable which remains unpaid for
                    more than 120 days after the date of the relevant Sales
                    Invoice or VAT Return Document; (ii) all IBM Receivables and
                    VAT Receivables of an individual Debtor where 50% or more of
                    the relevant Debtor's aggregate outstanding balance remains
                    unpaid for more than 120 days after the date of their
                    respective Sales Invoice or VAT Return Document; (iii) any
                    IBM Receivable or VAT Receivable in respect of which there
                    is a breach of any undertaking or warranty given to us, or
                    any other obligation of yours relating to it; (iv) any IBM
                    Receivable or VAT Receivable expressed in a currency other
                    than the EURO or another currency approved by us; (v) those
                    receivables, if any, listed in the Schedule as Ineligible
                    Receivables; (vi) any receivable which is not an IBM
                    Receivable or a VAT Receivable and (vii) any IBM Receivable
                    or VAT Receivable which we deem, in our discretion, to be
                    ineligible except that, in the event we determine in our
                    sole discretion to deem certain IBM Receivables and/or VAT
                    Receivables to be ineligible pursuant to this sub clause
                    (vii), we will provide written notification to you of our
                    determination of ineligibility of such IBM Receivables
                    and/or VAT Receivables and such ineligibility shall be
                    applied to such IBM Receivables and/or VAT Receivables
                    arising from invoices dated one Business Day after the date
                    of such notification.;

                    "INSOLVENCY": in relation to a company means the convening
                    of a meeting to pass a resolution for voluntary winding up
                    by reason of insolvency, or the making of a winding up
                    order, or the issue of an application for the appointment of
                    an administrator, or the appointment of a receiver (whether
                    in or out of court) or an administrative receiver of any of
                    the assets or income of the company; or entry by that
                    company into a voluntary arrangement, or any informal
                    arrangement generally for the benefit of creditors or that
                    company consulting with creditors generally; or any material
                    part of income or assets being subject to seizure, distress
                    or lien; or enforcement of security rights; or compounding
                    with creditors; or ceasing to carry on business (and
                    "INSOLVENT" shall be construed accordingly);

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                    "LIEN(s)": means any mortgage, pledge, lien, charge,
                    assignment by way of security, hypothecation, security
                    interest and floating charge or any other security agreement
                    or arrangement relating to existing or future assets
                    (including, without limitation, the deposit of monies or
                    property with a person with the primary intention of
                    affording such person a right of set-off or lien) but
                    excluding any lien arising out of rights of consolidation,
                    combination, netting or set-off over any current and/or
                    deposit accounts with a bank or financial institution, where
                    it is necessary to agree to those rights in connection with
                    the opening or operation of any bank accounts or in
                    connection with a treasury management arrangement operated
                    by you, in each case, in the ordinary course of your
                    business or risk management provided the existence of such
                    lien has been notified to us;

                    "LOAN PARTIES": means as defined in the caption.

                    "MATERIAL ADVERSE EFFECT": means a significant adverse
                    effect on (1) any Loan Party, or your parent company's or
                    any of its subsidiaries' or any guarantor's business
                    operations, results of operations, assets, or financial
                    condition; or (2) the value of the Collateral or (3) our
                    rights and remedies under this Agreement or the Security
                    Documents or any Liens in our favour;

                    "MERGER" means the event documented in, and achieved as a
                    result of the execution of, the Merger Documents;

                    "MERGER DOCUMENTS": means the (i) Agreement and Plan of
                    Merger and Reorganization among SDI and BSD dated September
                    26, 2001 and (ii) the Certificate of Merger of BSD with and
                    into BSD A dated September 26, 2001;

                    "NO CHARGE PERIOD": means the period, if any, so described
                    in the Schedule, during which we will not charge you Credit
                    Charges in relation to each Supplier Obligation, which
                    period shall commence on the date of the Supplier Invoice
                    corresponding to each such Supplier Obligation;

                    "NOTIFICATION": means your confirmation to us, in such way
                    and with such evidence as we specify, of all IBM
                    Reimbursables, IBM Receivables and VAT Receivables which
                    have come into existence after the Commencement Date, but
                    which have not previously been Notified to us;

                    "NOTIFY"/"NOTIFIED"/"NOTIFYING": means inclusion of an IBM
                    Reimbursable, an IBM Receivable or VAT Receivable or a
                    credit in an Offer or Notification delivered to us;

                    "OBLIGATIONS": means all covenants, agreements, warranties,
                    duties, representations, loans, advances, interest
                    (including interest accruing on or after the filing of any
                    petition in bankruptcy, or the commencement of any
                    insolvency, reorganization or like proceeding, relating to
                    any Loan Party, whether or not a claim for post-filing or
                    post-petition interest is allowed in such proceeding), fees,
                    reasonable expenses, indemnities, liabilities and
                    Indebtedness of any kind and nature whatsoever now or
                    hereafter arising, owing, due or payable from any Loan Party
                    to IBM GF.

                    "OFFER": means an unconditional offer to sell an IBM
                    Reimbursable, IBM Receivable or VAT Receivable to us with
                    full title guarantee to be made in such way and with such
                    evidence of the performance of the IBM written confirmation,
                    the Sales Contract or the VAT Return Document, as the case
                    may be, as we may specify, and where more than one IBM
                    Reimbursable, IBM Receivable or VAT Receivable is at the
                    same time subject to an Offer it shall be treated as an
                    independent offer to sell us each IBM Reimbursable, IBM
                    Receivable or VAT Receivable so offered which may be
                    accepted or rejected by us entirely at our discretion;

                    "PERSON": means any individual, association, firm,
                    corporation, partnership, trust, unincorporated organization
                    or other entity whatsoever.

                    "PFS": means Priority Fulfillment Services, Inc., a US
                    corporation;

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                    "PFSWEB": means PFSweb, Inc., a corporation duly organized
                    under the laws of the state of Delaware, with its principal
                    place of business at 500 North Central Expressway, Plano, TX
                    75074

                    "PFS WEB B.V." means as defined in the caption;

                    "PREPAYMENT": means any payment by us to you or made
                    available to you under this Agreement on account of the
                    purchase price of an IBM Reimbursable, IBM Receivable or VAT
                    Receivable;

                    "PREPAYMENT PERCENTAGE": means the amount specified as such
                    in the Schedule or such other percentage as we may from time
                    to time agree;

                    "PRODUCT RIGHTS" includes in relation to the Products
                    supplied to you by an Authorised Supplier any of the
                    following:

                    (i)       all the Authorised Supplier's rights as unpaid
                              vendor and all other rights of the Authorised
                              Supplier under or in relation to the relevant
                              Supplier Invoice (whether such rights arise from
                              or are created by statute, common law, contract or
                              otherwise howsoever);

                    (ii)      documentary evidence of the Supplier Invoice or
                              its performance or of any disputes arising;

                    (iii)     documents of title, warehouse keepers receipts,
                              bills of lading, shipping documents, airway bills
                              or similar documents;

                    (iv)      the benefit of all insurances;

                    (v)       all remittances, instruments, securities, bonds,
                              guarantees and indemnities and accounting records;

                    "PRODUCTS": as the context permits means either: (i)
                    hardware and software and associated products and services
                    agreed by us and acquired by you from an Authorised
                    Supplier; or (ii) hardware and software and associated
                    products and services supplied by you to Debtors;

                    "PURCHASE PRICE": means the amount payable by us to you (i)
                    in respect of the purchase of an IBM Reimbursable being the
                    amount reflected on IBM's written confirmation for such IBM
                    Reimbursable, (ii) in respect of the purchase of an IBM
                    Receivable being the Sales Invoice price in relation to such
                    IBM Receivable, or (iii) in the case of a VAT Receivable,
                    the amount stated in the relevant VAT Return Document for
                    such VAT Receivable, as the case may be, less any other sums
                    due to us in respect of the purchase of such IBM
                    Reimbursable, IBM Receivable or VAT Receivable;

                    "RECEIVABLE": means any payment obligation (present, future
                    or contingent) of a Debtor pursuant to a Sales Contract
                    (including the future right to recover sums due following
                    the determination, assessment or agreement of the amount of
                    such obligation), including any applicable value added
                    taxes, duties, charges and interest (whether arising by
                    contract or by law) together with its Receivables Rights;

                    "RECEIVABLES RIGHTS": includes in relation to any IBM
                    Reimbursable, IBM Receivable or VAT Receivable any of your
                    following rights: all remittances, instruments, securities,
                    bonds, guarantees and indemnities and accounting records;
                    any assets and any guarantee(s) which constitute security in
                    respect of your obligations to us with respect to the
                    purchase of IBM Reimbursables, IBM Receivables and VAT
                    Receivables by us pursuant to this Agreement as set out in
                    the Schedule);

                    "REPURCHASE": means the repurchase by you of an IBM
                    Reimbursable, IBM Receivable or VAT Receivable at its
                    Repurchase Price;

                    "REPURCHASE PRICE": means a sum equivalent to the Purchase
                    Price of an IBM Reimbursable, IBM Receivable or VAT
                    Receivable plus all sums (if any) then

                                                                              6
<PAGE>

                    outstanding and due to us in respect of any relevant Credit
                    Charges relating to that IBM Reimbursable, IBM Receivable or
                    VAT Receivable;

                    "SALES CONTRACT": means a contract under which you sell
                    Products to Debtors;

                    "SALES INVOICE": means a valid invoice issued by you to a
                    Debtor under a Sales Contract;

                    "SCHEDULE": means the Schedule to this Agreement as amended
                    from time to time by written agreement between the parties;

                    "SDI": means Supplies Distributors, Inc., (formally known as
                    BSD Acquisition Corp.) a corporation duly organized under
                    the laws of the state of Delaware, with its principal place
                    of business at 500 North Central Expressway, Plano, TX
                    75074;

                    "SDSA" means as defined in the caption;

                    "SHORTFALL AMOUNT": means the amount set out in Clause 7.4;

                    "SHORTFALL FEE" means the fee calculated as detailed in the
                    Schedule;

                    "SUBSIDIARY" means an entity of which a person has direct or
                    indirect control or owns directly or indirectly more than
                    50% of the share capital or similar right of ownership and
                    "control" for this purpose means the power to direct the
                    management and the policies of the entity whether through
                    the ownership of share capital, contract or otherwise;

                    "SUPPLIER INVOICE": means a valid invoice issued by an
                    Authorised Supplier in respect of your acquisition of
                    Products from such Authorised Supplier;

                    "SUPPLIER OBLIGATIONS": means the amount owing by you in
                    respect of a Supplier Invoice that we have purchased from an
                    Authorised Supplier and a BSDE Supplier Invoice (including
                    the future right to recover sums due following the
                    determination, assessment or agreement of the amount of such
                    obligation), including any applicable value added taxes,
                    duties, charges and interest (whether arising by contract or
                    by law).

                    "VAT" means value added tax levied by the appropriate
                    authorities in a country;

                    "VAT RECEIVABLES" means a payment obligation of the Country
                    of the Netherlands or Belgium pursuant to a VAT Return
                    Document, subject to the limitation specified in the
                    Schedule;

                    "VAT RETURN DOCUMENT" means a document raised by SDSA or
                    BSDE to the respective country for valid reimbursement of
                    VAT paid by BSDE or SDSA to the Country of the Netherlands
                    or Belgium (1) for products purchased from IBM or one of its
                    subsidiaries and which products were sold by BSDE to
                    customers outside the Country of the Netherlands or (2) for
                    products purchased from IBM or one of its subsidiaries and
                    which products were sold by SDSA to customers outside the
                    Belgium, (3) for products sold by BSDE to SDSA, (4) for
                    products supplied by IBM Singapore and IBM US to SDSA and
                    (5) for the operating and sales expenses paid by SDSA in the
                    Country of Belgium;

          1.2       INTERPRETATION

                    In this Agreement:

                    1.2.1     "YOU" and "US" shall where the context admits,
                              include our respective personal representatives,
                              successors in title or permitted assigns (whether
                              immediate or derivative);

                    1.2.2     any reference herein to any document, including to
                              this Agreement includes such document as amended,
                              novated, supplemented, substituted, extended,
                              assigned or replaced from time to time and
                              includes any document which is supplemental hereto
                              or thereto;

                                                                              7
<PAGE>

                    1.2.3     where a word or phrase has to be considered in
                              relation to a jurisdiction outside Belgium and
                              there is no exact equivalent or such work or
                              phrase then it shall have the meaning of the
                              closest equivalent in such jurisdiction; and

                    1.2.4     "INDEBTEDNESS" includes any obligation (whether
                              incurred as principal guarantor or surety) for the
                              payment or repayment of money, whether present or
                              future, actual or contingent.

                    The headings in this Agreement are inserted for convenience
                    only and shall not affect its construction or
                    interpretation.

2.        CREDIT LIMIT

          2.1       We will establish a Credit Limit for you up to the amount
                    specified in the Schedule which we may, at our discretion,
                    purchase Supplier Invoices from Authorised Suppliers IBM
                    Reimbursables, IBM Receivables and/or VAT Receivables from
                    you.

3.        SUPPLIER PURCHASE FACILITY

          3.1       SETTLEMENT OF SUPPLIER INVOICES

                    3.1.1     By entering into this Agreement you agree that you
                              will pay us, and not the Authorised Supplier, in
                              order to settle (i) Supplier Invoices which we
                              have purchased and (ii) BSDE Supplier Invoices.

                    3.1.2     We may, in our discretion and upon written notice
                              to you, cease to include a supplier as an
                              Authorised Supplier for the purposes of this
                              Agreement. Any such cessation will not affect our
                              purchase of Supplier Invoices then in existence or
                              our obligation to pay BSDE Supplier Invoices.

                    3.1.3     You authorise us to collect directly from any
                              Authorised Supplier any monies due for credits,
                              rebates, bonuses or discounts owed by such
                              Authorised Supplier to you. Once received we shall
                              either (in our discretion) apply such monies
                              against amounts you owe us or credit the relevant
                              amount to your ledger account with us and pay such
                              monies into the bank account referred to in Clause
                              6.7.1.

                    3.1.4     You shall pay us for a Supplier Obligation no
                              later than the Due Date. You agree to pay us the
                              full amount of such Supplier Obligation.

                    3.1.5     If an Extended Credit Period is provided (as
                              specified in the Schedule) payment of the relevant
                              Supplier Obligation may be deferred for such
                              further period as is specified in the Schedule
                              after the end of the No Charge Period but such
                              Supplier Obligation shall bear interest at the
                              rate specified in the Schedule during such period.

                    3.1.6     If you do not pay the Supplier Obligations before
                              the last day of the No Charge Period (or, if
                              clause 3.1.5 applies, at the end of the Extended
                              Credit Period), such sum shall bear interest at
                              the Default Rate from the expiry of the No Charge
                              Period (unless the Extended Credit Period is
                              applicable) until actual receipt of such payment
                              by us in cleared funds.

          3.2       TITLE TO PRODUCTS

                    3.2.1     You hereby acknowledge that by virtue of our
                              purchase from the relevant Authorised Supplier of
                              the Supplier Invoices or, as applicable, our
                              agreement to pay the BSDE Supplier Invoices on
                              your behalf, all Product Rights, including any
                              reservation of title rights, belong to us until
                              all amounts owing to us in connection with payment
                              of the relevant Supplier Obligations and any
                              outstanding Credit Charges are paid in full by
                              you.

                    3.2.2     You will not cause or permit any Debtor or other
                              third party to encumber our Product Rights in any
                              way. You agree to take such action as may be
                              required to implement this provision, including
                              your acknowledgement of, and agreement to the
                              insertion of written notice in Sales Invoices or,
                              as

                                                                              8
<PAGE>

                              applicable, separate notices to BSDE Debtors, to
                              the intent that IBM GF is the owner of the
                              relevant Product Rights.

4.        IBM REIMBURSABLES, IBM RECEIVABLES AND VAT RECEIVABLES DISCOUNTING
          FACILITY

          Under the terms of this Agreement, we may from time to time purchase
          IBM Reimbursables, IBM Receivables and VAT Receivables from you.

          4.1       PURCHASE AND PAYMENT OF IBM REIMBURSABLES, IBM RECEIVABLES
                    AND VAT RECEIVABLES

                    4.1.1

                    4.1.2     You hereby agree to transfer ownership to us of
                              all IBM Reimbursables, IBM Receivables and VAT
                              Receivables (together with all Receivables Rights)
                              created until this Agreement ends, or we give you
                              notice under Clause 4.1.12 that no more IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              will be accepted from a date designated by us.
                              Such IBM Reimbursables, IBM Receivables and VAT
                              Receivables shall vest in us the moment the IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              are created and transfer of ownership of any such
                              IBM Reimbursables, IBM Receivables and VAT
                              Receivables to us shall take place automatically
                              and with immediate effect. On that day our receipt
                              of the relevant Notifications and our ownership of
                              such IBM Reimbursables, IBM Receivables and VAT
                              Receivables shall then be complete. We will credit
                              to your ledger account with us the Purchase Price
                              of all such IBM Reimbursables, IBM Receivables and
                              VAT Receivables upon such date.

                    4.1.3     You will pay any duties or similar charges
                              including any Stamp Duty arising in connection
                              with this Agreement and the transfer of the IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              to us.

                    4.1.4     After the Commencement Date, PFS Web B.V., BSDE
                              and/or SDSA will notify us in the manner agreed
                              with us, and at the frequency stated in the
                              Schedule of the invoice value of IBM
                              Reimbursables, IBM Receivables and VAT
                              Receivables. PFS Web B.V., BSDE and SDSA will
                              provide on request copies of the relevant
                              documentation, delivery notes, and other evidence
                              of the validity of the IBM Reimbursables, IBM
                              Receivables and VAT Receivables. There will be
                              either be a service fee for each Notification
                              subject to a minimum service fee payable in
                              accordance with Clause 7.2.1, or a monthly service
                              fee, as set out in the Schedule which you agree to
                              pay to us. The Loan Parties will promptly when
                              required by us complete any forms of assignment,
                              documents or other instruments necessary to ensure
                              the transfer of full ownership of the IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              to us or to enable us to collect the IBM
                              Reimbursables, IBM Receivables and VAT
                              Receivables.

                    4.1.5     If, for any reason, the sale or transfer of IBM
                              Reimbursables, IBM Receivables and VAT
                              Receivables, pursuant to the above provisions of
                              this Agreement, does not vest ownership of the IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              in us, the Loan Parties will hold any such IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              and any monies collected by them in respect of
                              such IBM Reimbursables, IBM Receivables and VAT
                              Receivables in trust for us, and pay any such
                              monies to us.

                    4.1.6     We may use the monies we receive in respect of
                              each IBM Reimbursable, IBM Receivable or VAT
                              Receivable to satisfy any monies then owing to us
                              by you. We will transfer any remaining amount to
                              your designated bank account (provided there is no
                              Event of Default) at the frequency agreed with you
                              subject to the banking charge specified in the
                              Schedule.

                    4.1.7     As the absolute owner we have the sole and
                              unfettered right to enforce payment of and collect
                              any IBM Reimbursable, IBM Receivable or VAT

                                                                              9
<PAGE>

                              Receivable purchased by us under this Agreement.
                              However until further notice from us the Loan
                              Parties will act diligently and promptly as our
                              undisclosed agent in administering and in
                              collecting and enforcing payment of IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              at the Loan Parties expense. However if (a) we
                              consider that your continued collection of any IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              would be prejudicial to us, and that such
                              collection would be better conducted by us or a
                              third party, rather than by the Loan Parties; or
                              (b) an Event of Default has occurred; or (c) this
                              Agreement has terminated for whatever reason; or
                              (d) there has occurred (in our reasonable opinion)
                              a Material Adverse Effect, we reserve the right
                              to, or designate a third party to, collect payment
                              directly including issuing demands or legal
                              proceedings either in our own name or in your name
                              if required. The Loan Parties agree to co-operate
                              in such collection or proceedings, including the
                              provision of witnesses or the production of
                              documents. We can defend or compromise such legal
                              proceedings in such manner and on such terms as we
                              may see fit and the Loan Parties will be bound by
                              the result. Any reasonable expenses incurred by us
                              in such proceedings, including the payment of
                              legal and other professional fees, costs and
                              expenses, will be paid by you, or charged to you
                              by debiting the relevant accounts. Whilst the Loan
                              Parties may ask us to cease collection activities
                              against any Debtor and we will do so upon
                              receiving payment of the relevant IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              or upon such terms as we shall agree with the
                              applicable Loan Party we have the right to refuse
                              or to accept such Loan Party's request.

                    4.1.8     The Loan Parties agree that without our prior
                              written consent they will not sell, pledge or
                              grant any Lien over any IBM Reimbursables, IBM
                              Receivables and VAT Receivables to any third
                              party, or agree to do so, or enter into any other
                              arrangement which might adversely affect our
                              interest in any IBM Reimbursables, IBM Receivables
                              and VAT Receivables.

                    4.1.9     After you Notify an IBM Reimbursable, IBM
                              Receivable or VAT Receivable to us you agree (save
                              where Clause 6.6 applies) not to cancel or vary
                              any relevant VAT Return Document or its relevant
                              payment terms or settlement discounts without our
                              prior written consent except where the change is
                              due to a manifest error in your invoice, in which
                              case you will notify us of the resulting change in
                              the IBM Reimbursable, IBM Receivable or VAT
                              Receivable but our written consent will not be
                              required.

                    4.1.10    You undertake that if Products associated with IBM
                              Receivables are returned to you and you provide a
                              credit in any form which has the effect of
                              reducing the amount of the relevant Receivable or
                              Acquired Receivable, you will promptly notify us.

                    4.1.11    For each IBM Reimbursable, IBM Receivable and VAT
                              Receivable you represent and warrant to us that:
                              (a) all particulars notified to us are correct and
                              complete; (b) the IBM Reimbursable, IBM Receivable
                              or VAT Receivable has not been previously Notified
                              to us; (c) any covenants or undertakings given to
                              us relating to such IBM Reimbursable, IBM
                              Receivable or VAT Receivable will be complied
                              with; (d) each IBM Reimbursable, IBM Receivable or
                              VAT Receivable is fully enforceable and is free
                              from any other charge, pledge, or Lien in favour
                              of a third party; and (e) such IBM Reimbursable,
                              IBM Receivable or VAT Receivable will be paid
                              without any claim for set off, counterclaims,
                              retention or abatement.

                    4.1.12    The sale or transfer of IBM Reimbursables, IBM
                              Receivables and VAT Receivables will continue
                              until we notify You in writing that we will accept
                              no more IBM Reimbursables, IBM Receivables and VAT
                              Receivables for purchase or until the termination
                              of this Agreement whichever is the sooner.

                                                                             10
<PAGE>

          4.2       CREDIT AND COLLECTION POLICY

                    The Loan Parties will comply in all material respects with
                    the Loan Parties' credit and collection practices agreed
                    with us in regard to each IBM Receivable VAT Receivable, any
                    Receivables Rights and the related Sales Invoice or VAT
                    Return Document.

5.        PREPAYMENTS

          5.1       We may, following your written or electronic request, make a
                    Prepayment available to you in a bank account maintained by
                    you, subject to any banking charge as set out in the
                    Schedule, in the amount you select up to the Available
                    Credit. We will endeavour to effect such Prepayment on the
                    day you make such request provided we receive such request
                    before 10.00 am on any Business Day.

          5.2       If we make a Prepayment on a day upon which any settlement
                    of a Supplier Obligation or Credit Charge is due or overdue
                    for payment, or you owe us any monies for the Repurchase
                    Price of IBM Reimbursables, IBM Receivables and VAT
                    Receivables then we may apply the proceeds of the Prepayment
                    to such payment in or towards the discharge of the monies so
                    due to us and only an amount equal to the difference, if
                    any, between the amount of the Prepayment and the amount
                    being paid or so discharged shall be made available to you.

          5.3       A Discount Charge will accrue from day to day during this
                    Agreement and be calculated on the outstanding daily balance
                    of all Prepayments .

          5.4       You may at any time pay us for Supplier Obligations and any
                    outstanding Credit Charges, by requesting us to apply all or
                    part of any Prepayment for that purpose. Prepayments may not
                    be used for the repayment of principal owing to us pursuant
                    to any agreement between yourself as borrower and ourselves
                    as lender unless expressly agreed by us in writing. In
                    addition to payment for Supplier Obligations, Prepayments
                    shall only be used for working capital purposes.

          5.5       The total amount of Prepayments at any point in time shall
                    not exceed the Collateral value attributed to the IBM
                    Reimbursables, IBM Receivables and VAT Receivables at such
                    time.

6.        IBM REIMBURSABLES, IBM RECEIVABLES, VAT RECEIVABLES AND RECEIVABLES
          RIGHTS

          6.1       You will provide us with your Receivables Rights and take
                    any necessary steps to make such Receivables Rights
                    effective and enforceable. If a Lien is to be provided to us
                    in relation to any IBM Reimbursable, IBM Receivable or VAT
                    Receivable and/or Receivable Right not effectively purchased
                    hereunder it shall be a valid first priority interest.

          6.2       The Loan Parties agree:-

                    6.2.1     to promptly execute and deliver such further
                              instruments and documents, and to take such
                              further action including any filing or payment of
                              registration fees at the Loan Parties' expense as
                              we may reasonably request for the purpose of
                              preserving or protecting all our rights and
                              interests in the IBM Reimbursables, IBM
                              Receivables and VAT Receivables (and the
                              Receivables Rights) and our ownership of the
                              former and our rights in the latter;

                    6.2.2     report to us with the reports and accounts
                              referred to in the Schedule at the intervals
                              specified therein and to provide us with such
                              other reports as may be agreed; and

                    6.2.3     to advise us promptly, in reasonably sufficient
                              detail, of any substantial change relating to the
                              value, quantity or quality of the IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              and the Receivables Rights, including any movement
                              in location of the IBM Reimbursables, IBM
                              Receivables and VAT Receivables and the
                              Receivables Rights, or any event which could
                              reasonably be expected to have a significant
                              adverse effect on the value,

                                                                             11
<PAGE>

                              quantity or quality of the IBM Reimbursables, IBM
                              Receivables and VAT Receivables and the
                              Receivables Rights; and

                    6.2.4     promptly advise us of any loss, destruction of or
                              damage to the IBM Reimbursables, IBM Receivables
                              and VAT Receivables or the Receivables Rights and
                              to pay us such amount (if any) as will reduce the
                              Credit Limit as specified by us in our absolute
                              discretion, or provide such additional Collateral
                              as we may require; and

                    6.2.5     to maintain books and records relating to the
                              Collateral in such detail, form and scope as is
                              consistent with good business practice and ensure,
                              where applicable, such books and records will
                              reflect our ownership of the IBM Reimbursables,
                              IBM Receivables and VAT Receivables and our
                              interest in the Receivables Rights.

          6.3       NOTICE OF TRANSFER OF OWNERSHIP OF RECEIVABLES

                    If required by us, for each IBM Reimbursable, IBM Receivable
                    and VAT Receivable, the Loan Parties will give written
                    notice to the respective Authorized Supplier, Debtor or
                    country government agency concerned that we are the owner of
                    the IBM Reimbursable, IBM Receivable or VAT Receivable, as
                    applicable, and that payment of IBM Reimbursables, IBM
                    Receivables and VAT Receivables must be made to us directly.
                    The wording of the notice and the manner in which it is
                    given will be as directed or approved by us. We may give
                    such written notice to the relevant Authorized Supplier,
                    Debtor or country government agency directly.

          6.4       RECEIVABLES RIGHTS

                    6.4.1     The Loan Parties hereby acknowledge that all
                              Receivables Rights belong to us until all amounts
                              owing to us in connection with IBM Reimbursables,
                              IBM Receivables and VAT Receivables and any
                              outstanding Credit Charges are paid in full.

                    6.4.2     You will not cause and you will use your best
                              endeavours not to permit any Debtor or other third
                              party to acquire title in any Products the subject
                              of Receivables or to encumber such title in any
                              way before you have delivered the relevant
                              Products and payment in full of the relevant
                              Receivable has been made by such Debtor. You agree
                              to take such action as may be required to
                              implement this provision, including the insertion
                              of appropriate clauses in Sales Contracts.

          6.5       REPURCHASE

                    6.5.1     We may require you to buy back any IBM
                              Reimbursable, IBM Receivable or VAT Receivable and
                              pay us the Repurchase Price of such IBM
                              Reimbursable, IBM Receivable or VAT Receivable as
                              follows in any of the following situations: (i) if
                              such IBM Reimbursable, IBM Receivable or VAT
                              Receivable is or becomes an Ineligible Receivable;
                              (ii) if it is the subject of a dispute; (iii) if
                              payment is withheld for any reason including a
                              dispute under the Sales Contract or, if
                              applicable, the VAT Return Document or any claim
                              to set-off or counterclaim; (iv) if the respective
                              country declares or effects a change in its laws,
                              or if there is a change in its financial
                              condition, which has the effect of making its
                              payment of the VAT Receivable delayed or uncertain
                              (v) at any time on or after any Event of Default;
                              or (vi) at any time after termination of this
                              Agreement. We will either debit your account with
                              the Repurchase Price if the account is
                              sufficiently in credit, or if not then we will
                              require the applicable Loan Party to make a cash
                              payment of the Repurchase Price in which case such
                              Loan Party will promptly make such payment to us.
                              On receipt of payment in full of the Repurchase
                              Price of each IBM Reimbursable, IBM Receivable and
                              VAT Receivable which we require a Loan Party buy
                              back together with all other sums due from it to
                              us, we will upon request assign or transfer that
                              IBM Reimbursable, IBM Receivable or VAT Receivable
                              to you and it will pay the reasonable costs
                              incurred by us

                                                                             12
<PAGE>

                              including any duly documented and properly
                              incurred legal costs or other professional
                              expenses, stamp duties, VAT, and similar charges.
                              Any amounts such Loan Party collects before we
                              receive payment in full will be held in trust for
                              us and promptly delivered to us and set against
                              the amounts owed to us and any amounts we collect
                              after payment in full to us will be credited to
                              your account.

                    6.5.2     You will not cancel any notices of assignment
                              given to a Debtor or country, as applicable, owing
                              IBM Reimbursables, IBM Receivables and VAT
                              Receivables which we have required you to buy back
                              or attempt to collect such IBM Reimbursables, IBM
                              Receivables and VAT Receivables for your own
                              account until you have paid us, in cleared funds,
                              the Repurchase Price and all other amounts due to
                              us in respect of it.

          6.6       CREDITS AND CLAIMS

                    6.6.1     If any query or claim shall arise concerning or
                              affecting an IBM Reimbursable, IBM Receivable or
                              VAT Receivable or concerning a credit or set-off
                              by the respective Authorised Supplier, Debtor or
                              country against the Supplier Invoice, Sales
                              Invoice or VAT Return Document, the applicable
                              Loan Party will, after complying with Clause
                              4.1.10, (i) immediately give full details in the
                              form we require; (ii) use all reasonable efforts
                              to resolve the query or claim; and (iii) notify us
                              of any resulting credit note or other settlement.

                    6.6.2     If the query or claim affects the value to us of
                              the IBM Receivable or VAT Receivable, it may be
                              treated by us as being an Ineligible Receivable.

          6.7       BANK ACCOUNT

                    6.7.1     We will tell you the form of assignment to be
                              included on the Sales Invoice relating to an IBM
                              Receivable and/or VAT Return Document. You will
                              instruct the respective Authorised Supplier,
                              Debtor or country government agency to pay the
                              amounts of the credit, Sales Invoice or VAT Return
                              Document to a bank account controlled by us and
                              the Loan Parties must do nothing to prevent
                              payment to us.

                    6.7.2     If payments are to be made to a bank account in
                              your name but controlled by us you will enter into
                              agreements satisfactory to us, enabling the bank
                              account to be administered so that we have control
                              over all withdrawals from the bank account. Any
                              payments collected by the Loan Parties in relation
                              to IBM Reimbursables, IBM Receivables and VAT
                              Receivables shall be held in trust for us and
                              promptly deposited in the bank account without
                              being mixed with the Loan Parties' own funds or
                              negotiated except in our favour. You will pay all
                              costs and expenses of setting up and operating
                              bank accounts for this purpose, including all
                              charges relating to the collection or attempted
                              collection of cheques or other instruments of
                              payment.

7.        CREDIT CHARGES AND PAYMENTS

          7.1       INFORMATION ABOUT YOUR ACCOUNT

                    We will provide you with information concerning Supplier
                    Obligations and Prepayments, including amounts due to us and
                    on request the then amount of the Available Credit. Such
                    information shall be treated as being correct and binding
                    upon you in the absence of manifest error provided that such
                    manifest error is notified to us within a period of 15 days
                    from the date of the provision of such information to you.
                    We will keep such accounts as may be required to show the
                    amounts due to us and the amounts received from you and/or
                    your Debtors. In any proceedings or disputes a certificate
                    issued by our Company Secretary, or by one of our Directors
                    or authorised officers as to the correctness of any
                    financial statement or any amounts due to us shall be prima
                    facie evidence of the same.

                                                                             13
<PAGE>

          7.2       CREDIT CHARGES

                    7.2.1     The Credit Charges payable by you are set out in
                              the Schedule. They are set out exclusive of VAT
                              and any other taxes and duties which, if
                              applicable, will be additionally payable by you.
                              You will receive an invoice or relevant statement
                              for all Credit Charges including any applicable
                              VAT stamp or other duties and will either be
                              debited to your account on a monthly basis or paid
                              to us on demand. Any minimum amounts payable by
                              you will be debited to your account periodically
                              as set out in the Schedule. Some Credit Charges
                              will fluctuate up or down depending on changes to
                              the Base Rate as described in Clause 7.2.3.

                    7.2.2     If we purchase a Supplier Invoice that does not
                              include a "No Charge Period", any Supplier
                              Obligations thereunder will be subject to a set up
                              fee as specified in the Schedule (or as agreed
                              with you) and Credit Charges will be levied on you
                              from and including the date of issue of the
                              relevant Supplier Invoice. You agree to pay such
                              Credit Charges or set up fee on their due date
                              together with payment of the relevant Supplier
                              Obligations.

                    7.2.3     Where a Credit Charge is related to Base Rate and
                              the outside reference rate upon which Base Rate is
                              based at any time changes then, on the first
                              business day of the next following calendar month,
                              the Base Rate will be changed to the outside
                              reference rate existing on the last business day
                              of the previous calendar month. However, if the
                              outside reference rate changes by 25 basis points
                              or more at any time then the Base Rate will be
                              changed by the same amount on the day of such
                              change or the next following business day. When
                              the applicable Base Rate is determined by
                              reference to another published rate and that rate
                              ceases to be published for any reason, we will use
                              another appropriate rate as the reference rate so
                              that you and we remain in an equivalent financial
                              position.

          7.3       PAYMENT

                    7.3.1     The Loan parties agree to pay, or cause you to
                              pay, all sums due to us arising from the
                              settlement of Supplier Obligations and the
                              Repurchase Price of IBM Reimbursables, IBM
                              Receivables and VAT Receivables and all Credit
                              Charges owed to us and applicable VAT, stamp or
                              other duties by direct debit, wire transfer, or
                              such other method of payment that we agree, in
                              full, without any set off whatsoever. Payment
                              shall be deemed to be made when such payment is
                              received in cleared funds in the designated bank
                              account in our name or controlled by us. The Loan
                              Parties may at any time prepay, without notice or
                              penalty, in whole or in part, amounts owed to us
                              under this Agreement. We may apply payments made
                              to us (whether by you or otherwise) firstly to pay
                              any Credit Charges owing under this Agreement and
                              then the amount owing in respect of each Supplier
                              Obligation, and/or the Repurchase of IBM
                              Reimbursables, IBM Receivables and VAT
                              Receivables. Late payment will be subject to a
                              late payment charge on the sums unpaid at the
                              Default Rate from the date following the Due Date
                              until and including the date payment is received
                              by us in cleared funds in our account

                    7.3.2     Your obligations to pay sums due in respect of
                              Supplier Obligations to us or any Repurchase Price
                              of IBM Reimbursables, IBM Receivables and VAT
                              Receivables will not be affected by any dispute
                              you may have with any Authorised Supplier,
                              including defective, insufficient, late or partly
                              delivered Products. You waive all rights of
                              set-off or counterclaim against your liability to
                              pay Supplier Obligations. However, this does not
                              affect any claim or right or remedy you may have
                              against the Authorised Supplier. You will not
                              assert against us any claim or defence you may
                              have against the Authorised Supplier or any third
                              party. We have no obligation to you under the
                              Supplier Invoice. The Loan Parties will indemnify
                              and hold us harmless against any claims or
                              liabilities arising from the Products in any way
                              whatsoever.

                    7.3.3     When Products are returned by you to an Authorised
                              Supplier it will not affect the amounts due to us,
                              except for IBM Reimbursables, unless and until we

                                                                             14
<PAGE>

                              receive the amount of a credit note from the
                              applicable Authorised Supplier relative to the
                              returned Products and which we shall promptly upon
                              receipt apply it to your account. Such credit note
                              amount will be deducted from the amounts due by
                              you to us.

          7.4       SHORTFALL AMOUNT

                    If, on any day, (i) the aggregate of the amounts outstanding
                    from the Loan Parties to us in respect of Supplier
                    Obligations and the outstanding and unpaid Prepayments we
                    have made in respect of IBM Reimbursables, IBM Receivables
                    and VAT Receivables by the relevant Debtor exceed the lesser
                    of either the value of the Collateral or the Credit Limit,
                    or (ii) the outstanding Prepayments exceed the Collateral
                    value of the IBM Reimbursables, IBM Receivables and VAT
                    Receivables, then, unless otherwise agreed, the Loan Parties
                    will pay such "SHORTFALL AMOUNTS" on the day this becomes
                    known to you either by our advising you or from your own
                    enquiries. Until this is done, we shall be under no
                    obligation to purchase Supplier Invoices from Authorised
                    Suppliers or IBM Reimbursables, IBM Receivables and VAT
                    Receivables from you (whether or not previously agreed) and
                    you will pay a late payment charge at the Default Rate set
                    out in the Schedule on the shortfall amounts accruing from
                    day to day. In addition we may charge the Shortfall Fee if
                    the Shortfall Amounts are not paid when due.

          7.5       POWER OF ATTORNEY

                    As security for your obligation hereunder the Loan Parties
                    grant us, our directors and officers an irrevocable power of
                    attorney:-

                    (i)       to endorse or negotiate cheques, or bankers drafts
                              and negotiable instruments;

                    (ii)      to initiate and settle any claims (including the
                              conduct of legal proceedings); and

                    (iii)     to sign or execute any deeds, papers, forms or
                              documents and file the same as may be necessary to
                              perfect or preserve any of our rights or to secure
                              performance of your obligations to us or any
                              Debtor with respect to the Collateral and
                              ownership of the IBM Reimbursables, IBM
                              Receivables and VAT Receivables.

8.        REPRESENTATIONS, WARRANTIES AND COVENANTS

          8.1       REPRESENTATIONS AND WARRANTIES

                    By signing the Agreement and (in relation to Clauses 3 and
                    4) before each Supplier Invoice or IBM Reimbursable, IBM
                    Receivable or VAT Receivable is purchased or Prepayment is
                    made you represent and warrant (or are deemed to represent
                    and warrant) to us as follows:

                    8.1.1     VALIDITY

                              Each of the Loan Parties, your parent company, and
                              each of its subsidiaries is duly organised, is
                              validly existing and has the full power, authority
                              and legal right, including compliance with any
                              governmental and other consents, licenses and
                              authorisations, to conduct its business and to
                              enter into this Agreement. This Agreement and any
                              Liens or other documents provided in relation to
                              the IBM Reimbursables, IBM Receivables and VAT
                              Receivables and the Receivables Rights and the
                              Products and the Product Rights are legal, valid
                              and binding obligations upon you and do not
                              contravene any other agreement or obligation.

                    8.1.2     ACTIONS, PROCEEDINGS

                              No significant or material judgements, orders,
                              writs or decrees are outstanding against any Loan
                              Party nor is there pending nor, to the best of the
                              Loan Parties' knowledge after due inquiry,
                              threatened, any material litigation,

                                                                             15
<PAGE>

                              contested claim, investigation, arbitration, or
                              taxation or governmental proceeding by or against
                              a Loan Party, nor is any Loan Party in default of,
                              nor engaged in, any significant or material
                              dispute under any agreement or document. If any
                              dispute does arise such Loan Party undertakes to
                              inform us and promptly resolve it.

                    8.1.3     INFORMATION

                              Each Loan Party has disclosed to us every fact or
                              matter known or which should reasonably have been
                              known to it that might influence us whether or not
                              to enter into this Agreement, or purchase any
                              Supplier Invoice or IBM Reimbursable, IBM
                              Receivable or VAT Receivable or make any
                              Prepayment, or to accept any Product Rights and/or
                              Receivables Rights, or to accept any guarantee or
                              indemnity, and that all information furnished by
                              each Loan Party or on its behalf to us or by its
                              Auditors in connection with this Agreement and the
                              Products and Product Rights, IBM Reimbursables,
                              IBM Receivables and VAT Receivables and the
                              Receivables Rights is true and accurate in all
                              material respects and is neither misleading nor
                              incomplete by the omission of any material fact
                              and has not changed since being provided to us.

          8.2       COVENANTS AND UNDERTAKINGS

                    Until termination of this Agreement and the
                    complete payment and satisfaction of all
                    obligations under this Agreement, each Loan Party
                    agrees as follows:

                    8.2.1     MERGER, CONSOLIDATION AND SALES

                              (a)       If any Loan Party plans to merge or
                                        consolidate with any other entity (other
                                        than the planned purchase of the assets
                                        of BSDE by SDSA and the dissolution of
                                        BSDE), or engage in any operation or
                                        activity materially different from that
                                        presently being conducted by it, or
                                        otherwise intend to dispose of any
                                        substantial part of its business, or the
                                        IBM Reimbursables, IBM Receivables and
                                        VAT Receivables or the Receivables
                                        Rights or the Products or the Product
                                        Rights or engage in a significant
                                        corporate restructuring in ownership,
                                        then such Loan Party will:

                                        (i)       disclose these facts to us as
                                                  early as possible (and if
                                                  subject to a confidentiality
                                                  undertaking in relation to
                                                  these matters, will use best
                                                  endeavours to obtain the
                                                  consent of the counterparty
                                                  thereto), and

                                        (ii)      reach agreement with us
                                                  concerning all remaining
                                                  payment obligations under this
                                                  Agreement or, failing such
                                                  agreement, and if so required
                                                  by us, immediately discharge
                                                  such payment obligations
                                                  (whether or not accrued due
                                                  and payable). For this purpose
                                                  (i) all Supplier Obligations
                                                  shall forthwith become
                                                  payable,(ii) all IBM
                                                  Reimbursables, IBM Receivables
                                                  and VAT Receivables shall be
                                                  treated as Ineligible
                                                  Receivables to be re-purchased
                                                  by such Loan Party and (iii)
                                                  all IBM Reimbursables will be
                                                  considered ineligible for
                                                  purchase by us, to be
                                                  re-purchased by such Loan
                                                  Party. No Loan Party will be
                                                  required to make such
                                                  disclosure if, and for so long
                                                  as, to do so would be a breach
                                                  of applicable laws or
                                                  regulatory requirements. Any
                                                  disclosure under this
                                                  sub-clause shall be treated in
                                                  confidence by us.

                    8.2.2     FINANCIAL STATEMENTS AND OTHER INFORMATION

                              SDSA will give us a copy of its audited Financial
                              Statements and management accounts prepared in
                              accordance with generally accepted accounting
                              principles, whether audited or not, as provided in
                              the Schedule. SDSA and BSDE will also provide such
                              other information as we may reasonably request
                              concerning VAT Return Documents. Each Loan Party
                              will

                                                                             16
<PAGE>

                              promptly advise us if any material action or
                              proceeding is outstanding or pending against or
                              if, to the best of its knowledge after due
                              enquiry, any such action or proceeding becomes
                              threatened.

                    8.2.3     AUTHORISATION

                              We can rely upon the signature or the act or
                              communication from Authorised Officers and
                              Directors in accordance with Attachment A to this
                              Agreement.

                    8.2.4     INSPECTION

                              Each of the Loan Parties will allow us or our
                              agents to enter upon its premises during normal
                              business hours on reasonable notice, and at any
                              time during the continuance of an Event of
                              Default, for the purposes of inspecting, taking
                              copies of and/or verifying the Supplier Invoices
                              and any Product Rights, the IBM Reimbursables, IBM
                              Receivables and VAT Receivables, any Receivables
                              Rights, Financial Statements, and its financial
                              status; each Loan Party will agree to provide us
                              with such information and documentation that we
                              consider reasonably necessary to conduct the
                              foregoing activities, including samplings of
                              purchase orders, invoices and evidences of
                              delivery or other performance, and that we may
                              contact such Loan Party's customers or the
                              respective country government agency directly or
                              through our agents to verify IBM Reimbursables,
                              IBM Receivables and VAT Receivables.

                    8.2.5     INSURANCE

                              8.2.5.1   Each Loan Party will maintain, or cause
                                        to be maintained, with financially sound
                                        and reputable insurance companies,
                                        insurance on its respective properties
                                        and assets (without being required to
                                        effect credit insurance on the IBM
                                        Reimbursables, IBM Receivables or VAT
                                        Receivables unless such obligation is
                                        specified in the Schedule) to their full
                                        insurable value; you will be required to
                                        maintain insurance against claims for
                                        personal injury or death as a result of
                                        the use of any Products sold by you;
                                        each Loan Party will be required to
                                        maintain insurance coverage against
                                        other business risks; each Loan Party
                                        will give us at least ten days written
                                        notice before any policy is altered or
                                        cancelled.

                              8.2.5.2   Each Loan Party will instruct each
                                        insurer to endorse and to assign the
                                        benefit of each insurance policy
                                        covering its properties and assets in
                                        respect of Supplier's Invoices or
                                        Receivables, and IBM Reimbursables, IBM
                                        Receivables and VAT Receivables which
                                        have been purchased by us hereunder so
                                        that (a) payment of proceeds with
                                        respect to claims thereon will be made
                                        directly to us and (b) no act or default
                                        of such Loan Party or any other person
                                        shall affect our right to recover under
                                        the policies.

                              8.2.5.3   If such Loan Party fails to pay any
                                        costs, charges or premiums, or if it
                                        fails to insure its properties and
                                        assets, we may pay such costs, charges
                                        or premiums on such Loan Party's behalf.
                                        Any such amounts paid by us shall be
                                        considered as an additional debt owed by
                                        such Loan Party's due and payable by it
                                        or you immediately upon receipt of our
                                        invoice.

                    8.2.6     RIGHT OF SET-OFF

                              At all times we can set-off amounts due from you
                              to us (including those prospectively due where
                              they are likely to become payable) and whether due
                              under this or any other agreement with us or
                              otherwise due against whatever we owe you. Where
                              the amount due by you cannot immediately be
                              ascertained we may make a reasonable estimate of
                              the amounts concerned.

                                                                             17
<PAGE>

                    8.2.7     FINANCIAL COVENANTS

                              You agree to comply with the Financial Covenants,
                              if any, set out in the relevant supplements or the
                              Schedule. You also agree that you will not,
                              without our consent, make any of the following
                              payments ("Restricted Payments") if you and
                              Holdings are not in compliance with the Financial
                              Covenants contained in this Agreement and after
                              giving effect of such payment, the aggregate
                              amount of such Restricted Payments under this
                              Agreement and the AIF does not cause you or
                              Holdings to violate such Financial Covenants or
                              exceed Six Hundred Thousand Dollars ($600,000),
                              without duplication, during any fiscal year (i)
                              declare or pay any dividend (other than dividends
                              payable solely in common stock of BSDE and/or
                              SDSA) on, or make any payment on account of, or
                              set apart assets for a sinking or other analogous
                              fund for, the purchase, redemption, defeasance,
                              retirement or other acquisition of, any shares of
                              any class of capital stock of BSDE and/or SDSA or
                              any warrants, options or rights to purchase any
                              such capital stock or Equity Interests, whether
                              now or hereafter outstanding, or make any other
                              distribution in respect thereof, either directly
                              or indirectly, whether in cash or property or in
                              obligations of BSDE and/or SDSA ; or (ii) make any
                              optional payment or prepayment on or redemption
                              (including, without limitation, by making payments
                              to a sinking or analogous fund) or repurchase of
                              any Indebtedness (other than the Obligations)),
                              except as permitted by the Amended and Restated
                              Notes Payable Subordination Agreement.

                    8.2.8     DESIGNATED PAYMENT/WARRANTY COMPANY

                              Upon the occurrence of a Shortfall Amount which is
                              not paid when due or if an Event of Default has
                              occurred and is continuing, you agree, upon demand
                              from us, to (i) send to your factoring bank, a
                              designated payment in the form of Attachment B to
                              this Agreement instructing such bank to pay us
                              directly in lieu of paying you and (ii) within 30
                              days of such request, turn over the control of
                              your stock to a licensed and warranty company
                              satisfactory to us.

                                                                             18
<PAGE>

9.        DEFAULTS AND REMEDIES

          9.1       DEFAULTS

                    Any one of the following events shall constitute an "EVENT
                    OF DEFAULT" under this Agreement:

                    9.1.1     A Loan Party's failure to make payment to us when
                              due of any amount, including without limitation
                              Credit Charges or the Shortfall Amount or part
                              thereof, under this Agreement or its failure to
                              comply with any other provision of this Agreement
                              including its failure to meet the dates by which
                              information or reports are due under this
                              Agreement;

                    9.1.2     Any representation, warranty, statement, report or
                              certificate made or delivered by a Loan Party or
                              on its behalf is false in any material respect at
                              the time when made or deemed made;

                    9.1.3     The occurrence of any event or circumstance,
                              including adverse comment in Auditors' reports for
                              any Loan Party, which, in our opinion, could
                              reasonably be expected by us to have a Material
                              Adverse Effect;

                    9.1.4     A Loan Party, your parent company, any Subsidiary
                              of a Loan Party or your parent company, or any of
                              your guarantors becomes subject to Insolvency, or
                              to a change of control due to change in
                              shareholders unless previously agreed to by us in
                              writing;

                    9.1.5     The use of any Prepayments or the incurring of any
                              Supplier Obligations for any purpose other than
                              your normal working capital requirements unless
                              disclosed to us and agreed in writing before the
                              Prepayment or Supplier Obligation is made;

                    9.1.6     Any default by any Loan Party in complying with
                              any judgement or any demand under a guarantee or
                              indemnity;

                    9.1.7     Any breach by any Loan Party, your parent company
                              or any of your guarantors of any other agreement
                              with us or with any other lender, including IBM
                              Credit Corporation, Congress, Fortis, and any
                              successors of Congress and/or Fortis or credit
                              providers or suppliers (including Authorised
                              Suppliers);

                    9.1.8     Any other actions materially adversely affecting
                              our ownership of IBM Reimbursables, IBM
                              Receivables and VAT Receivables or of Supplier
                              Obligations or reducing our rights relating to
                              Receivables Rights and/or Product Rights.

                    9.1.9     Any failure by PFSweb to meet the financial
                              covenant specified for it in the Schedule.

                    9.1.10    The dissolution or liquidation of any Loan Party,
                              your parent company, any of any Loan Party's or
                              your parent's subsidiaries or any of your
                              guarantors or the directors or stockholders of
                              such entities taking action to dissolve or
                              liquidate any such entity.

                    9.1.11    Any Loan Party, your parent company or any
                              guarantor suspends business.

                    9.1.12    a) PFSweb ceases to directly own one hundred
                              percent (100%) of the capital stock of PFS, and
                              (b) PFS and IFP cease to directly own One Hundred
                              Percent (100%) of the interest in members of
                              Holdings or (b) Holdings ceases to directly own
                              One Hundred Percent (100%) of the capital stock of
                              SDI;

                    9.1.13    SDI ceases to maintain the extent of its current
                              ownership of you.

          9.2       REMEDIES

                    9.2.1     In addition to any rights or remedies available at
                              law or under this Agreement, on or at any time
                              after an Event of Default that we have not waived
                              in writing, we may do any or all of the following:
                              (a) immediately terminate this

                                                                             19
<PAGE>

                              Agreement; (b) immediately reduce the Credit Limit
                              to nil (c) require you forthwith to buy back from
                              us all outstanding IBM Reimbursables, IBM
                              Receivables and VAT Receivables but so that no
                              such IBM Reimbursable, IBM Receivable or VAT
                              Receivable shall revest in you until the
                              Repurchase Price of all such IBM Reimbursables,
                              IBM Receivables and VAT Receivables has been paid
                              to us together with all other sums then due to us;
                              (d) declare all payments of Supplier Obligations
                              and the Repurchase Price of IBM Reimbursables, IBM
                              Receivables and VAT Receivables together with any
                              Credit Charges to be immediately due and payable;
                              and (e) to take any action we deem necessary to
                              take possession of, realise or sell in a
                              commercially reasonable manner any IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              or Receivables Rights, and/or Products and/or
                              Product Rights and/or assets purchased with money
                              provided by us.

                    9.2.2     Except as otherwise required by law or provided in
                              any Lien which encumbers the relevant assets, all
                              amounts obtained from any actions above will be
                              applied promptly to reduce or settle the amounts
                              due from you under this Agreement or any other
                              deed or agreement between any of and all of the
                              Loan Parties and IBM GF after deducting all
                              charges, costs and expenses including reasonable
                              legal costs, disbursements and other fees incurred
                              in the collection of such amounts, and any excess
                              amounts will, to the extent permitted by law and
                              subject to the rights of any person having
                              priority, be paid to you.

                    9.2.3     With respect to any Event of Default which we
                              waive, we reserve the right to make a default
                              charge as compensation for such waiver.

10.       TERMINATION

          10.1      This Agreement will remain in force until not less than 60
                    days written notice by any party to the other but not before
                    twelve months has passed from the date of this Agreement.
                    However following the occurrence of an Event of Default that
                    we have not waived in writing we may by notice with
                    immediate effect terminate this Agreement. Upon any
                    termination of this Agreement we shall have all the rights
                    and remedies set out in Clause 9.2 until the complete
                    discharge of all the Loan Parties' obligations to us. Any
                    such termination shall not affect any right we have in
                    relation to the IBM Reimbursables, IBM Receivables and VAT
                    Receivables or the Receivables Rights and the Supplier
                    Obligations and the Product Rights.

          10.2      Following the termination of this Agreement and the
                    discharge of all the Loan Parties' obligations to us and
                    subject to the exercise of any rights under this Agreement
                    then any amounts we hold for you will be paid to you after
                    deduction of all or any sums then owed to us under this or
                    any other agreement between any of and all of the Loan
                    Parties and IBM GF.

          10.3      Notwithstanding the termination of this Agreement, the
                    provision of Clauses which should by their nature survive
                    termination (including without limitation payment
                    obligations and rights to IBM Reimbursables, IBM Receivables
                    and VAT Receivables and the Supplier Obligations and the
                    Product Rights and/or Receivables Rights) shall so survive
                    and shall remain in full force and effect until such time as
                    all rights and liabilities between the parties have been
                    satisfied.

11.       GENERAL

          11.1      ASSIGNMENT

                    We may assign the benefit of this Agreement in whole or in
                    part. The Loan Parties consent to us novating to any other
                    person all or any of our obligations, rights, benefits and
                    remedies under this Agreement. Following such novation this
                    Agreement (or the novated part) shall bind and enure to the
                    benefit of our successors and assigns. The Loan Parties may
                    not assign or change their rights and benefits under this
                    Agreement or sub-contract any of their obligations without
                    our prior written consent.

                                                                             20
<PAGE>

          11.2      LIMITATION OF LIABILITY

                    No party shall have any liability to any other party with
                    respect to any special, indirect or consequential damages
                    suffered in connection with this Agreement.

          11.3      GUARANTEE AND INDEMNIFICATION.

                    Each of BSDE, SDSA and the Guarantors (as a result of the
                    respective Guarantees) irrevocably and unconditionally,
                    jointly and severally:

                    11.3.1    guarantees to each of BSDE and SDSA the due and
                              punctual observance and performance of all the
                              terms, conditions and covenants on the part of
                              each of them contained in this Agreement and
                              agrees to pay from time to time on demand any and
                              every sum or sums of money which each of BSDE and
                              SDSA is at any time liable to pay to us under or
                              pursuant to the Agreement and which has become due
                              and payable but has not been paid at the time such
                              demand is made; and

                    11.3.2    agrees to indemnify and hold harmless IBM GF 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 (a)
                              occurring or existing on or before the date of
                              this Agreement relating to any financing
                              arrangements IBM GF may from time to time have
                              with (i) each Loan Party, (ii) any Person that
                              shall be acquired by any Loan Party or (iii) any
                              Person that any Loan Party may acquire all or
                              substantially all of the assets of, or (b)
                              directly or indirectly, relating to the execution,
                              delivery or performance of this Agreement or the
                              consummation of the transactions contemplated
                              hereby or thereby or to any of the Collateral or
                              to any act or omission of any Loan Party in
                              connection therewith. Notwithstanding the
                              foregoing, none of the Borrower or any of the
                              Guarantors shall be obligated to indemnify IBM GF
                              for any Losses incurred by IBM GF which are a
                              result of IBM GF's gross negligence or wilful
                              misconduct. The indemnity provided herein shall
                              survive the termination of this Agreement.

          11.4      WAIVER

                    No delay or omission of ours to exercise any right or remedy
                    whether before or after the occurrence of any Event of
                    Default, shall impair any such right or remedy or shall
                    operate as a waiver thereof.

          11.5      CHANGE OF TERMS

                    11.5.1    We may change the terms and conditions of this
                              Agreement upon sixty days written notice to you,
                              but no such change shall apply to purchases of
                              Supplier Invoices or IBM Reimbursables, IBM
                              Receivables and VAT Receivables made before the
                              effective date of such change of terms.

                    11.5.2    We reserve the right to serve sixty days written
                              notice on you designating some or all IBM
                              Reimbursables, IBM Receivables and VAT Receivables
                              as Ineligible Receivables and on the expiry of
                              such notice you will promptly buy back the
                              relevant Ineligible Receivables together with
                              payment of any Credit Charges that apply.

                    11.5.3    In the case mentioned in paragraph 11.5.1 the Loan
                              Parties shall be entitled to terminate this
                              Agreement effective on the effective date of the
                              change of terms by written notice delivered to us
                              within thirty days of receipt of our notice of
                              change of terms.

                                                                             21
<PAGE>

          11.6      TRANSACTION CURRENCY

                    All payments and billings under this Agreement will be in
                    EURO or, if applicable, an Approved Currency

          11.7      CURRENCY INDEMNITY

                    11.7.1    Unless otherwise agreed by us where an IBM
                              Reimbursable, IBM Receivable or VAT Receivable is
                              payable otherwise than in EURO in Belgium, the
                              charges for both the collection and/or in the case
                              of IBM Reimbursables, IBM Receivables and VAT
                              Receivables not denominated in EURO, conversion
                              into EURO or into such other currency as we shall
                              from time to time determine, shall be deducted in
                              calculating the Purchase Price and such price
                              shall be computed by reference to the spot rate of
                              exchange ruling in London the date of collection
                              but at IBM GF's discretion, we may provisionally
                              apply the rate ruling on the date we receive
                              Notification of such IBM Reimbursable, IBM
                              Receivable or VAT Receivable making such
                              adjustments as shall thereafter be necessary

                    11.7.2    We hereby agree prior to the occurrence of an
                              event referred to in Clause 11.7.1 that we will
                              not convert any monies received hereunder in a
                              currency other than EURO into any other currency
                              without your prior agreement.

                    11.7.3    If at any time more than one currency or currency
                              unit are recognised by the central bank of
                              Belgium, or having jurisdiction in any country as
                              the lawful currency of that country.

                              11.7.3.1  for so long as the currency or currency
                                        unit in which the provisions of and
                                        obligations under this Agreement are
                                        expressed (the "express currency") shall
                                        remain so recognised, those provisions
                                        and obligations shall remain denominated
                                        and paid or satisfied in that currency
                                        or currency unit;

                              11.7.3.2  if the express currency ceases to be so
                                        recognised, any reference in this
                                        Agreement to that currency or currency
                                        unit shall be translated into and become
                                        payable in the currency or currency unit
                                        of that country designated by us; and

                              11.7.3.3  any translation from one currency or
                                        currency unit to another shall be at the
                                        official rate of exchange recognised by
                                        the central bank for the conversion of
                                        that currency or currency unit into the
                                        other, rounded up or down by us in the
                                        manner officially prescribed in relation
                                        to such official rate or, if to the
                                        extent not so recognised or prescribed,
                                        in such manner as we may reasonably
                                        determine.

                              11.7.3.4  If any change in any currency of a
                                        country occurs, this Agreement will be
                                        amended to the extent we after
                                        consultation with the Loan Parties,
                                        specify to be necessary in the light of
                                        the change in currency and to put the
                                        parties hereto as far as possible in the
                                        same position as they would have been
                                        but for such change in currency.

          11.8      VAT

                    All charges specified in this Agreement are quoted exclusive
                    of VAT

          11.9      ELECTRONIC COMMUNICATIONS

                    Any party may communicate with any other party, other than
                    notices referred to in Clause 11.10, by electronic means and
                    such communication is acceptable as a signed writing. An
                    identification code (called a "USER ID") contained in an
                    electronic document is sufficient to verify the sender's
                    identity and the document's authenticity.

          11.10     NOTICES

                    Any notice required or desired to be given under this
                    Agreement shall be in writing and shall be delivered by
                    facsimile transmission or registered mail, postage prepaid,

                                                                             22
<PAGE>

                    and addressed to the address of the respective party to this
                    Agreement listed in the Schedule or following the expiry of
                    a period of 30 Business Days from the delivery of written
                    notice to the other party, such other address or facsimile
                    number notified by that party to the other in accordance
                    with this clause:

          11.11     PARTIAL INVALIDITY

                    If any provision of this Agreement shall be held to be
                    invalid, illegal or unenforceable under any applicable
                    statute or rule of law, the validity, legality and
                    enforceability of the remaining provisions shall not in any
                    way be affected.

          11.12     COMPLETE AGREEMENT

                    This Agreement including the Schedule embodies the entire
                    agreement between the Loan Parties and us with respect to
                    the subject matter hereof, and any prior written or oral
                    statements relating thereto are not to be considered part of
                    this Agreement.

          11.13     MISCELLANEOUS

                    11.13.1   IBM GF's rights and benefits under this Agreement
                              shall not be affected by the granting of any time
                              or indulgence to any Loan Party or to any surety
                              or guarantor of your obligations to us hereunder
                              or to any Debtor or by any failure to exercise or
                              delay in exercising any right or option against
                              such person.

                    11.13.2   We shall be entitled to rely on any act done and
                              on any document signed and on any oral or written
                              communication (including any such communication
                              sent by facsimile) by any reason purportedly doing
                              or signing or communicating on behalf of you
                              notwithstanding any defect in or absence of any
                              authority in such person except as provided for in
                              Clause 8.2.3.

                    11.13.3   Without prejudice to the provisions of Clause 11.5
                              and except as otherwise provided in this Agreement
                              no variation of this Agreement shall be binding
                              upon the parties unless it is evidenced in writing
                              and signed by or on behalf of IBM GF by an
                              authorised signatory of IBM GF and on behalf of
                              each Loan Party by a director or the secretary or
                              officer thereof.

          11.14     APPLICABLE LAW AND JURISDICTION

                    This Agreement shall be construed in accordance with and
                    governed by the laws of Belgium. The parties hereby submit
                    to the jurisdiction of the Belgian courts.

BY SIGNING BELOW BOTH PARTIES ACCEPT THE TERMS OF THE AGREEMENT

SIGNED ON BEHALF OF                         SIGNED ON BEHALF OF

SUPPLIERS DISTRIBUTORS S.A.                 IBM BELGIUM FINANCIAL SERVICES S.A.

Signed:............................         Signed:............................
By Name:...........................         By Name:...........................
Title:.............................         Title:.............................
Signature:.........................         Signature:.........................
Date: .............................         Date: .............................

                                                                             23
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BUSINESS SUPPLIES DISTRIBUTORS EUROPE BV    PFS WEB B.V.

Signed:............................         Signed:............................
By Name:...........................         By Name:...........................
Title:.............................         Title:.............................
Signature:.........................         Signature:.........................
Date: .............................         Date: .............................

                                                                             24<PAGE>
                                                                   EXHIBIT 10.6

IBM BELGIUM FINANCIAL SERVICES S.A.

                              AMENDED AND RESTATED
                             COLLATERALIZED GUARANTY

          Priority Fulfillment Services, Inc. ("GUARANTOR") and IBM Belgium
Financial Services S.A. a registered number of R.C., Brussels 451.673 with an
address of Square Victoria Regina 1,BE-1210 Brussels VAT BE 424300467 ("IBM GF")
entered into a Collateralized Guaranty dated September 27, 2001 (the "Prior
Guaranty"). IBM GF and Guarantor wish to amend and restate the Prior Guaranty on
the terms and conditions set forth herein. In consideration of credit and
financing accommodations granted or to be granted by IBM GF to Business Supplies
Distributors Europe B.V. and Supplies Distributors S.A. (collectively the
"Borrower"), which is in the best interest of Guarantor, and for other good and
valuable consideration received, Guarantor jointly and severally guaranties to
IBM GF and to IBM Credit Corporation as agent to IBM GF ("IBM Credit"), from
property held separately, jointly or in community, the prompt and unconditional
performance and payment by Borrower of any and all obligations, liabilities,
contracts, mortgages, notes, trust receipts, secured transactions, inventory
financing and security agreements, and commercial paper on which Borrower is in
any manner obligated, heretofore, now, or hereafter owned, contracted or
acquired by IBM GF("Liabilities"), whether the Liabilities are individual,
joint, several, primary, secondary, direct, contingent or otherwise. Guarantor
also agrees to indemnify IBM GF and IBM Credit and hold IBM GF and 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 Borrower.
Capitalized terms used herein without definition shall have the meaning
described thereto in the IBM Global Financing Platinum Plan (with Invoice
Discounting) dated __ March 2002 between IBM GF and the Borrower (as amended,
modified and supplemented from time to time, the "Financing Agreement").

If Borrower fails to pay or perform any Liabilities to IBM GF when due, all
Liabilities to IBM GF 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 GF by Borrower, 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 GF and/or IBM Credit and
Borrower, 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, or the waiver of any default or event of
default under any financing agreement between IBM GF and/or IBM Credit and
Borrower, or the release or non-perfection of any security thereunder, any
change in Borrower's financial condition, or the interruption of business
relations between IBM GF and Borrower. This Amended and Restated Guaranty is and
shall be deemed to be a continuing guaranty and shall remain in full force and
effect until the indefeasible payment in full of the Liabilities and any other
amounts payable under this Amended and Restated Guaranty and the cessation of
all obligations of IBM GF to extend credit to Borrower. Guarantor acknowledges
that its obligations hereunder are in addition to and independent of any
agreement or transaction between IBM GF and/or 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 GF and IBM Credit need not exhaust its rights or recourse against
Borrower or any other person or any security IBM GF and 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 IBMGF, and to secure the Liabilities, whether under this Amended and Restated
Guaranty or any other agreement between IBM GF and/or IBM Credit and Guarantor,
whether direct or contingent, Guarantor does assign, pledge and give to IBM GF a
security interest in all of Guarantor's personal property, whether now owned or
hereafter acquired or existing and wherever located, including the following:
(a) all inventory and equipment manufactured or sold by or bearing the trademark
or tradename of International Business Machines

                                  Page 1 of 7
<PAGE>

Corporation ("IBM") or any other Authorized Supplier and all parts thereof,
attachments, additions, accessories and accessions thereto, all substitutions,
repossessions, exchanges, replacements and returns thereof, all price protection
credits, rebates, discounts and incentive payments relating to the foregoing,
products, insurance and proceeds thereof and documents therefor ("IBM Credit
Inventory"); (b) all accounts, chattel paper, instruments, negotiable documents,
promissory notes, general intangibles (including contract rights, software and
licenses), deposit accounts, commercial tort claims, intellectual property,
investment property, pledged notes, letter of credit rights, supporting
obligations, obligations of any kind owing to Guarantor, whether or not arising
out of or in connection with the sale or lease of goods or the rendering of
services and all books, invoices, documents and other records in any form
evidencing or relating to any of the foregoing; (c) all substitutions and
replacements for all of the foregoing; and (d) all products or proceeds of all
of the foregoing (all of the above assets are defined pursuant to the provisions
of Article 9 of the Uniform Commercial Code as in effect in the State of New
York and are hereinafter referred to as the "Collateral"). Collateral shall not
include inventory and equipment of the Guarantor that is not IBM Credit
Inventory (as defined above).

In connection with any working capital financing Guarantor receives from another
financial institution or commercial lender ("Lender"), Guarantor may request
that IBM GF and IBM Credit subordinate its interest in the Collateral (excluding
the IBM Credit Inventory) and IBM GF and IBM Credit will not unreasonably
withhold its consent provided that:

          (1) No default or event of default exists;

          (2) IBM GF, IBM Credit and Lender shall have entered into a
          subordination agreement in form and substance satisfactory to IBM GF
          and IBM Credit in all respects in its sole discretion;

          (3) IBM Credit shall be satisfied that the IBM Credit Inventory shall
          be segregated from the other property of Guarantor and its customers
          and IBM GF and IBM Credit shall have a first perfected priority
          security interest in the IBM Credit Inventory; and

          (4) The books and records maintained on behalf of the Borrower shall
          be kept separately from Guarantor's other books and records and
          Guarantor shall have conspicuously noted on the Borrower's books and
          records that such books and records are the property of Borrower.

IBM GF and IBM Credit shall have the right, but not the obligation, from time to
time, as IBM GF and/or IBM Credit in their 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 GF and/or IBM Credit or any of
IBM GF's and/or IBM Credit's affiliates under any other agreement between IBM GF
or IBM Credit and Guarantor or between Guarantor and any of IBM GF's or 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 GF and/or 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 GF deems the debt or Collateral to be insecure:

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

                                  Page 2 of 7
<PAGE>

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

          c) Upon IBM GF and/or IBM Credit's demand, Guarantor will immediately
          deliver the Collateral to IBM GF and/or IBM Credit, in good order and
          repair, at a place reasonably convenient to IBM GF and IBM Credit,
          together with all related documents; or IBM GF and/or IBM Credit may,
          in their 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 GF and IBM
          Credit as a result of any possession, repossession, collection or sale
          by IBM GF and/or 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 GF or 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 GF and IBM Credit or any person IBM GF
          and/or IBM Credit may delegate as its duly authorized Attorney-in-Fact
          (without notifying Guarantor) to do, in IBM GF's and 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 GF's
          and/or 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 GF and/or IBM Credit which arises out of this Agreement,
          any other agreement or any of Guarantor's and IBM GF and/or IBM
          Credit's business dealings, in which Guarantor does not prevail,
          Guarantor agrees to pay IBM GF and IBM Credit all court costs and all
          costs and expenses of IBM GF's and IBM Credit's defense of such action
          of claim including, but not limited to, reasonable attorney's fees.

IBM GF and/or IBM Credit may also declare a default under this Agreement and
exercise any and all rights and remedies available herein, if, in IBM GF's
and/or IBM Credit's sole discretion, IBM GF or IBM Credit determines that the
Collateral has decreased in value, and Guarantor has been unable to either: (a)
provide IBM GF with additional Collateral in a form and substance satisfactory
to IBMGF; or (b) pay the Shortfall Amount as defined in the Financing Agreement.

IBM GF and IBM Credit have and will always possess all the rights and remedies
of a secured party under law, and IBM GF's 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 GF or 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
GF's and/or 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 IBMGF, is a commercially reasonable disposition or
sale.

                                  Page 3 of 7
<PAGE>

Guarantor promises that (a) the Collateral is and shall remain free from all
claims and liens except IBM GF's, IBM Credit's and the lien of Congress
Financial Corporation (Southwest); (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. Guarantor authorizes IBM Credit to file with any filing office
such financing statements, amendments, addenda and other records showing IBM GF
and IBM Credit as secured party and Guarantor as the debtor and identifying IBM
GF's and IBM Credit's security interest in the Collateral that IBM GF and IBM
Credit deems necessary to perfect and maintain IBM GF's and IBM Credit's
security interest in the Collateral. Guarantor will execute any and all
documents IBM GF and/or IBM Credit may request to confirm or perfect IBM GF's
and IBM Credit's title or security interest in the Collateral.

Guarantor represents and covenants that the first paragraph of this Amended and
Restated Guaranty states the exact name of Guarantor as set forth in its charter
or other organizational record. Guarantor represents that it is duly organized
under the laws of the State of Delaware and the organization document creating
Guarantor has been filed in the appropriate office of such State. In addition,
Guarantor's organizational identification number assigned by its State of
organization is as follows: 2606094. Guarantor's principal place of business is
located at 500 North Central Expressway, Plano, TX 75074 and Guarantor
represents that its business is conducted as a CORPORATION. Guarantor will not
change its name, location (as defined in Article 9 of the U.C.C.) or State of
organization. Guarantor shall provide IBM GF and IBM Credit at least thirty (30)
days prior written notice of any change in its form of ownership, 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:

                       PFS
               4550 Quality Drive
               Memphis, TN  38118

                      PFS
               4638 Shelby Drive
               Memphis, TN  38118

             American Eagle Systems
               30 Corporate Drive
           Holtsville, New York  11742

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

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 GF and/or IBM Credit may require. Guarantor will obtain
insurance under such terms and in amounts as IBM GF and/or IBM Credit may
specify, from time to time, in companies acceptable to IBM GF and/or IBM Credit,
with a loss-payee or mortgagee clause payable to IBM GF and 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 GF and IBM Credit. Guarantor further
agrees to provide IBM GF and/or IBM Credit with written evidence of the required
insurance coverage and loss-payee or mortgagee clause. Guarantor assigns to IBM
GF and IBM Credit all sums not in excess of the unpaid debt owed IBM GF and IBM
Credit, and directs any insurance company to make payment directly to IBM Credit
to be applied to the unpaid debt owed IBM GF and/or 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

                                  Page 4 of 7
<PAGE>

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 GF and/or 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 GF and/or 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 Amended and Restated Guaranty is assignable, shall be construed liberally
in IBM GF's and IBM Credit's favor, and shall inure to the benefit of and bind
IBM GF's, IBM Credit's and Guarantor's respective successors, personal
representatives and assigns. Guarantor shall not assign this Amended and
Restated Guaranty or its obligations hereunder without the prior written consent
of IBM GF or IBM Credit.

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

Guarantor waives: notice of the acceptance of this Amended and Restated
Guaranty, and of presentment, demand and protest; notices of nonpayment,
nonperformance and dishonor; notices of amount of indebtedness of Borrower
outstanding at any time; notices of the number and amount of advances made by
IBM GF to Borrower in reliance on this Amended and Restated Guaranty; notice of
the financial condition of Borrower or any other guarantor or any change
therein; notice of the release of collateral for the Liabilities, of any other
guaranty, pledge or suretyship agreement or any collateral therefor; notices of
any legal proceedings or other efforts to collect against Borrower; notice of
any recoupment, setoff, administrative freeze on Borrower's credit or assets;
notice and any opportunity for a hearing as to any prejudgment remedies; and any
other demands and notices required by law. Guarantor further waives all rights
to assert against IBM GF and/or IBM Credit any right of recoupment, setoff, and
all claims, defenses, and counterclaims against IBM GF, IBM Credit or Borrower,
including any defense based on the lack of good faith. To the extent permitted
by law, Guarantor also waives any and all rights in and notices or demands
relating to any Collateral now or hereafter securing any of the Liabilities. All
waivers by Guarantor herein shall survive any termination or revocation of this
Amended and Restated Guaranty.

Guarantor authorizes IBM Credit to sell at public or private sale or otherwise
realize upon the Collateral now or hereafter securing any of the Liabilities, in
such manner and upon such terms and conditions as IBM GF and/or IBM Credit deems
best, all without advertisement or notice to Borrower, Guarantor, or any third
parties. Guarantor further authorizes IBM GF and IBM Credit to deal with the
proceeds of such Collateral as provided in IBM GF's agreement with Borrower,
without prejudice to IBM GF's claim for any deficiency and free from any right
or redemption on the part of Borrower, 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 Borrower 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 except as expressly permitted by the Financing
Agreement and provided no default or event of default exists. In addition, until
such time that the Liabilities are indefeasibly paid in full, Guarantor
irrevocably waives, for the benefit of IBM GF and IBM Credit, any and all rights
which it presently has, or may hereafter have, whether by virtue of any payment
or payments hereunder or otherwise, to be subrogated to the rights of IBM GF and
IBM Credit against the Borrower with respect to any such indebtedness of the
Borrower to IBMGF.

                                  Page 5 of 7
<PAGE>

Guarantor has made an independent investigation of the financial condition of
Borrower and gives this Amended and Restated Guaranty based on that
investigation and not upon any representations made by IBM GF and/or IBM Credit.
Guarantor acknowledges that it has access to current and future Borrower
financial information which will enable Guarantor to continuously remain
informed of Borrower's financial condition. Guarantor also consents to and
agrees that the obligations under this Amended and Restated Guaranty shall not
be affected by IBM GF's subsequent increases or decreases in the credit line
that IBM GF may grant to Borrower; 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 GF's and/or IBM Credit's
own account.

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

This Amended and Restated Guaranty is submitted by Guarantor to IBM GF(for IBM
GF's acceptance or rejection thereof) at IBM GF's above specified office; as an
offer by Guarantor to guaranty the credit and financial accommodations provided
by IBM GF to Borrower. If accepted, this Amended and Restated Guaranty shall be
deemed to have been made at IBM GF's above-specified office. THIS AMENDED AND
RESTATED GUARANTY AND ALL OBLIGATIONS PURSUANT THERETO, SHALL BE GOVERNED AND
CONTROLLED AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, 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 GF TO
ACCEPT THIS AMENDED AND RESTATED GUARANTY, AGREES THAT ALL ACTIONS OR
PROCEEDINGS ARISING DIRECTLY OR INDIRECTLY IN CONNECTION WITH, OUT OF, RELATED
TO OR FROM THIS AMENDED AND RESTATED GUARANTY MAY BE LITIGATED, AT IBM GF'S
AND/OR 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
GF AND/OR IBM CREDIT IN ACCORDANCE WITH THIS PARAGRAPH.

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

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

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

                                  Page 6 of 7
<PAGE>

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

WITNESS                                     PRIORITY FULFILLMENT SERVICES, INC.
                                               GUARANTOR

                                            By:
---------------------------------------        --------------------------------
Print Name:                                 Print Name:
           ----------------------------                ------------------------
                                            Title:
                                                  -----------------------------
                                            Date:
                                                 ------------------------------
                  (SEAL)

                                            Guarantor's Address:

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

                                                       ,
                                            -----------  ----  -----
ATTEST:

---------------------------------------
                 Secretary
Print Name:
           -----------------------------

                                            IBM BELGIUM FINANCIAL SERVICES S.A.

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

                                  Page 7 of 7

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