Document:

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                                                                    EXHIBIT 10.7

IBM BELGIUM FINANCIAL SERVICES S.A.

                              AMENDED AND RESTATED
                                    GUARANTY
                                (BY CORPORATION)

         PFSweb, Inc. ("Guarantor") and IBM Belgium Financial Services S.A. 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") entered into a 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 "Customer") under a financing agreement
between IBM GF and Customer, which is in the best interest of Guarantor, and for
other good and valuable consideration received, Guarantor guaranties to IBM GF
and IBM Credit Corporation as agent for IBM GF ("IBM Credit") the prompt and
unconditional performance and payment by Customer of any and all obligations,
liabilities, contracts, mortgages, notes, trust receipts, secured transactions,
inventory financing and security agreements, and commercial paper on which
Customer is in any manner obligated, heretofore, now, or hereafter owned,
contracted or acquired by IBM 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 IBM GF and/or IBM Credit may sustain and
expenses they may incur, suffer or be liable for as a result of or in any way
arising out of, following, or consequential to any transactions with or for the
benefit of Customer.

         If Customer fails to pay or perform any Liabilities to IBM 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 Customer, together with all expenses, including
reasonable attorney's fees.

         The liability of Guarantor is direct and unconditional and shall not be
affected by any extension, renewal or other change in the terms of payment of
any security agreement or any other agreement between IBM GF and/or IBM Credit
and Customer, or any change in the manner, place or terms of payment or
performance thereof, or the release, settlement or compromise of or with any
party liable for the payment or performance thereof, the release or
non-perfection of any security thereunder, any change in Customer's financial
condition, or the interruption of business relations between IBM GF and
Customer. 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 Customer. 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 Customer or any other person creating or
reserving any lien, encumbrance or security interest in any property of Customer
or any other person as security for any obligation of Customer. IBM GF and/or
IBM Credit need not exhaust their rights or recourse against Customer or any
other person or any security they may have at any time before being entitled to
payment from Guarantor.

         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 Customer 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 Customer or such resulting
corporation, dissolved corporation, or new or changed legal entity or identity
to IBM GF.

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         Guarantor waives: notice of the acceptance of this Amended and Restated
Guaranty, and of presentment, demand and protest; notices of nonpayment,
nonperformance, any right of contribution from other guarantors, and dishonor;
notices of amount of indebtedness of Customer outstanding at any time; notices
of the number and amount of advances made by IBM GF to Customer in reliance on
this Amended and Restated Guaranty; notices of any legal proceedings against
Customer; notice and hearing as to any prejudgment remedies; and any other
demands and notices required by law. Guarantor further waives all rights of
set-off and all counterclaims against IBM GF and IBM Credit or Customer.
Guarantor also waives any and all rights in and notices or demands relating to
any collateral now or hereafter securing any of the Liabilities, including, but
not limited to, all rights, notices or demands relating, whether directly or
indirectly, to the sale or other disposition of any or all of such collateral or
the manner of such sale or other disposition. All waivers by Guarantor herein
shall survive any termination or revocation of this Amended and Restated
Guaranty. Guarantor authorizes IBM GF and 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
Customer, 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 Customer, without prejudice to IBM GF's and/or IBM Credit's
claim for any deficiency and free from any right or redemption on the part of
Customer, Guarantor or any third parties, which right or redemption is hereby
waived together with every formality prescribed by custom or by law in relation
to any such sale or other realization.

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

         Until such time the Liabilities are indefeasibly paid in full, the
Guarantor hereby 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 Customer with respect to any
such indebtedness of the Customer to IBM GF.

         Guarantor has made an independent investigation of the financial
condition of Customer 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 Customer
financial information which will enable Guarantor to continuously remain
informed of Customer's financial condition. Guarantor also consents to and
agrees that the obligations under this 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 Customer; substitutions, exchanges or releases of all
or any part of the collateral now or hereafter securing any of the Liabilities;
sales or other dispositions of any or all of the collateral now or hereafter
securing any of the Liabilities without demands, advertisement or notice of the
time or place of the sales or other dispositions; realizing on the collateral to
the extent IBM GF and/or IBM Credit, in their sole discretion, deem 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 Customer,
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 Customer. 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

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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 OR IBM CREDIT IN ACCORDANCE WITH THIS PARAGRAPH.

         Any delay by IBM GF or IBM Credit, or their successors or assigns in
exercising any or all rights granted IBM GF and IBM Credit under this Amended
and Restated Guaranty shall not operate as a waiver of those rights.
Furthermore, any failure by IBM GF or IBM Credit, their successors or assigns,
to exercise any or all rights granted IBM GF and/or 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 Customer's Liabilities and can be varied only by a document signed by all the
parties hereto.

         THE PARTIES AGREE THAT ANY ACTION, SUIT OR PROCEEDING RELATING DIRECTLY
OR INDIRECTLY TO THIS AMENDED AND RESTATED GUARANTY OR THE RELATIONSHIP BETWEEN
IBM GF, 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:                                  PFSWEB, INC.

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

(Print Name                          )    By:
            -------------------------        -----------------------------------

                                          Name:
                                               ---------------------------------

                                          Title:
(SEAL)                                          --------------------------------

                                          Date:  March __, 2002

                                          Guarantor's Address:

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

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

ATTEST:

-------------------------------------
                  (Secretary)

(Print Name                          )
            -------------------------

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                             SECRETARY'S CERTIFICATE

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

         "BE IT RESOLVED that any officer of this corporation is hereby
authorized to execute a guaranty of the obligations of Business Supplies
Distributors Europe B.V. and Supplies Distributors S.A. (collectively, the
"Customer") to IBM Belgium Financial Services S.A. on behalf of the corporation,
which instrument may contain such terms as the above named persons may see fit
including, but not limited to a waiver of notice of acceptance of this Amended
and Restated Guaranty; presentment; demand; protest; notices of nonpayment,
nonperformance, dishonor, the amount of indebtedness of Customer outstanding at
any time, any legal proceedings against Customer, and any other demands and
notices required by law; any right of contribution from other guarantors; and
all set-offs and counterclaims."

         IN WITNESS WHEREOF and as Secretary of the named corporation I have
hereunto set my hand and affixed the corporate seal on this ____ day of March,
2002.

                                          PFSWEB, INC.

(SEAL)
                                          --------------------------------------
                                                       (Secretary)

                                  Page 4 of 4<PAGE>
                                                                    EXHIBIT 10.8

                            SUBORDINATED DEMAND NOTE

$7,500,000                                                        March   , 2002

         FOR VALUE RECEIVED, SUPPLIES DISTRIBUTORS, INC., a Delaware corporation
("Borrower"), promises to pay to the order of PRIORITY FULFILLMENT SERVICES,
INC., a Delaware corporation (the "Lender"), on DEMAND (the "Maturity Date") the
principal amount set forth above, or so much thereof, or such other amount, as
shall, from time to time, be advanced by or on behalf of the Lender to, or for
the benefit of, the Borrower, and shall be outstanding, together with interest
thereon as herein provided. All sums hereunder are payable on demand to Lender
at its principal offices in lawful currency of the United States of America and
in immediately available funds. All payments and prepayments made hereunder
shall be made without setoff, counterclaim or deduction of any kind.

         The unpaid principal balance hereof shall accrue interest, commencing
on the date hereof and continuing until paid in full, as herein provided, at a
fluctuating rate per annum equal to the Lender's cost of funds for the
corresponding period as determined by the Lender; provided, however, that, for
so long as this Note shall be outstanding, as of the last day of each fiscal
year of the Borrower, all accrued and unpaid interest for such fiscal year shall
be capitalized and added to the principal balance of this Note and thereafter
interest shall accrue on such increased principal balance. Notwithstanding the
foregoing, however, the interest payable hereunder shall not exceed the highest
lawful rate permitted under the provisions of applicable law (the "Highest
Lawful Rate").

         THIS NOTE AND THE INDEBTEDNESS EVIDENCED HEREBY IS SUBORDINATED TO IBM
CREDIT CORPORATION AND CONGRESS FINANCIAL CORPORATION (SOUTHWEST) IN ACCORDANCE
WITH THE TERMS AND PROVISIONS OF THOSE CERTAIN NOTES PAYABLE SUBORDINATION
AGREEMENTS EXECUTED AND DELIVERED BY LENDER.

         Borrower, and each surety, endorser, guarantor and other party now or
hereafter liable for the payment of any sums of money payable on this Note,
hereby severally (a) waive demand, presentment for payment, notice of
nonpayment, protest, notice of protest, notice of intent to accelerate, notice
of acceleration and all other notices, filing of suit and diligence in
collecting this Note or enforcing any other security with respect to same, (b)
agree to any substitution, subordination, exchange or release of any such
security or the release of any parties primarily or secondarily liable hereon,
(c) agree that Lender shall not be required first to institute suit or exhaust
its remedies hereon against Borrower, or others liable or to become liable
hereon or to enforce its rights against them or any security with respect to
same, (d) consent to any and all renewals, extensions, indulgences, releases or
changes, regardless of the number of such renewals, extensions, indulgences,
releases or changes, without notice thereof, and (e) agree to the application of
any deposit balance with Lender as payment or part payment hereon or as an
offset hereto. No waiver by Lender of any of its rights or remedies hereunder or
under any other document evidencing or securing this Note or otherwise shall be
considered a waiver of any other subsequent right or remedy of Lender; no delay
or omission in the exercise or endorsement by Lender of any rights or remedies
shall ever be construed as a waiver of the same or any other right or remedy of
Lender; and no exercise or enforcement of any such right or remedy shall ever be
held to exhaust any right or remedy of Lender.

         Failure to pay this Note or any installment of principal or payment of
interest when due shall constitute an Event of Default and shall entitle the
Lender to accelerate the principal amount hereof and all interest then accrued,
which shall at once become due and payable, and to exercise all other rights and
remedies available at law or in equity.

         If this Note is not paid at maturity and is placed in the hands of an
attorney for collection, or if it is collected through a bankruptcy or any other
court, then Lender shall be entitled to reasonable attorneys' fees and other
costs of collection.

         Borrower acknowledges and agrees that it is the intention of Borrower
and Lender to conform strictly to the usury laws in force that apply to this
Note. Accordingly, this Note is hereby limited so that in no contingency,
whether by reason of acceleration of the maturity of the Note or otherwise,
shall the interest (and all other sums that are deemed to be interest)
contracted for, charged or received by Lender with respect to this Note exceed
the Highest Lawful Rate. If, from any circumstance whatsoever, interest under
this Note would otherwise be payable in excess of the Highest Lawful Rate, and
if from any circumstance Lender shall ever receive anything of value deemed
interest by applicable Law in excess of the Highest Lawful Rate, then Lender's
receipt of such excess interest shall be deemed a mistake and

NOTE - Page 1

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the same shall, so long as no Event of Default shall be continuing, at the
option of Borrower, either be repaid to Borrower or credited to the unpaid
principal; provided, however, that if an Event of Default shall have occurred
and be continuing, and Lender shall receive excess interest during such period,
then Lender shall have the option of either crediting such excess amount to
principal or refunding such excess amount for Borrower. If the Note is prepaid
or the maturity of the Note is accelerated by reason of an election of Lender
following an Event of Default, then unearned interest, if any, shall be
cancelled and, if theretofore paid, shall either be refunded to Borrower or
credited on the Note, as Lender elects. All interest paid or agreed to be paid
to Lender shall, to the extent allowed by applicable law, be amortized,
prorated, allocated, and spread throughout the full period until payment in full
of the principal (including the period of any renewal or extension) so that the
interest for such full period shall not exceed the Highest Lawful Rate.

         THIS NOTE SHALL BE DEEMED AN INSTRUMENT MADE UNDER THE LAWS OF THE
STATE OF TEXAS AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND THE LAWS OF THE UNITED STATES OF
AMERICA. PURSUANT TO SECTION 346.004 OF THE TEXAS FINANCE CODE, CHAPTER 346 OF
THE TEXAS FINANCE CODE SHALL NOT APPLY TO THIS NOTE, OR ANY ADVANCE OR LOAN
EVIDENCED BY THIS NOTE.

         THE OBLIGATIONS OF BORROWER HEREUNDER ARE PERFORMABLE IN COLLIN COUNTY,
TEXAS. ANY SUIT, ACTION OR PROCEEDING AGAINST BORROWER WITH RESPECT TO THIS NOTE
OR ANY OTHER LOAN DOCUMENT, OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT
THEREOF, MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS, COUNTY OF COLLIN,
OR IN THE UNITED STATES COURTS LOCATED IN DALLAS, TEXAS AND BORROWER HEREBY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF ANY
SUCH SUIT, ACTION OR PROCEEDING. BORROWER HEREBY IRREVOCABLY CONSENTS TO SERVICE
OF PROCESS IN ANY SUIT, ACTION OR PROCEEDING IN SAID COURT BY THE MAILING
THEREOF BY AGENT BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO BORROWER
AT THE ADDRESS FOR NOTICES AS PROVIDED IN THE AGREEMENT. BORROWER HEREBY
IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS NOTE OR ANY OTHER LOAN DOCUMENT BROUGHT IN THE COURTS LOCATED IN THE STATE
OF TEXAS, COUNTY OF COLLIN, AND HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT
ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

         BORROWER WAIVES ANY AND ALL RIGHTS THAT IT MAY HAVE TO A TRIAL BY JURY
ON ANY CLAIM, COUNTERCLAIM OR OTHER ACTION, OF ANY NATURE WHATSOEVER, RELATING
TO OR ARISING OUT OF THIS NOTE, ANY OF THE OTHER LOAN DOCUMENTS OR THE
OBLIGATIONS. BORROWER ACKNOWLEDGES THAT THE FOREGOING JURY TRIAL WAIVER IS A
MATERIAL INDUCEMENT TO LENDER'S ENTERING INTO THE AGREEMENT AND THAT LENDER IS
RELYING ON SUCH WAIVER IN ITS FUTURE DEALINGS WITH BORROWER. BORROWER WARRANTS
AND REPRESENTS TO LENDER THAT BORROWER HAS REVIEWED THE FOREGOING JURY TRIAL
WAIVER WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL. IN THE EVENT OF
LITIGATION, THE FOREGOING JURY TRIAL WAIVER MAY BE FILED AS A WRITTEN CONSENT TO
A TRIAL BY THE COURT.

         BORROWER HEREBY WAIVES ALL OF ITS RIGHTS UNDER THE TEXAS DECEPTIVE
TRADE PRACTICES-CONSUMER PROTECTION ACT (TEX. BUS. & COM. CODE SECTION 17.01 ET
SEQ.), A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS, AND REPRESENTS
AND WARRANTS TO LENDER THAT BORROWER (A) HAS KNOWLEDGE AND EXPERIENCE IN
FINANCIAL AND BUSINESS MATTERS THAT ENABLE BORROWER TO EVALUATE THE MERITS AND
RISKS OF THE TRANSACTIONS CONTEMPLATED BY THE AGREEMENT AND THIS NOTE, (B) IS
NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION RELATIVE TO LENDER, AND (C)
HAS BEEN REPRESENTED BY LEGAL COUNSEL IN CONNECTION WITH SUCH TRANSACTIONS.

         THIS NOTE REPRESENTS THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND

NOTE - Page 2

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SUPERSEDES ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE
SUBJECT MATTER HEREOF AND THEREOF. THIS NOTE REPRESENTS THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL
AGREEMENTS BETWEEN THE PARTIES.

                                SUPPLIES DISTRIBUTORS, INC.
                                a Delaware corporation

                                By:
                                   ---------------------------------------------
                                Name: Joe Farrell
                                Title: President

         Pay to the order of IBM Credit Corporation and Congress Financial
Corporation (Southwest), as their interests may appear:

                                Priority Fulfillment Services, Inc.

                                By:
                                   ---------------------------------------------
                                Name: Tom Madden
                                Title: Chief Financial Officer

NOTE - Page 3

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