INFOTECH USA INC
AGREEMENT FOR WHOLESALE FINANCING
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>exh10-5.htm
<DESCRIPTION>AGREEMENT FOR WHOLESALE FINANCING
<TEXT>
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<TITLE>InfoTech USA, Inc. Exhibit 10.5 to Form 8K</TITLE>
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<P align=right><FONT FACE="Arial" SIZE=2><b>Exhibit 10.5</b></font></p>

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<H1 ALIGN=CENTER><FONT FACE="Arial" SIZE=2>AGREEMENT FOR
WHOLESALE FINANCING<BR>(Security Agreement)<BR>(ILOC Collateral) </FONT></H1>

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<P><FONT FACE="Arial" SIZE=2>This <B>AGREEMENT FOR WHOLESALE
FINANCING</B> (as amended, supplemented or otherwise modified from time to time, this
&#147;Agreement&#148;) is hereby made this 30th day of June, 2004, by and between <B>IBM
Credit LLC</B>, a Delaware limited liability company with a place of business at North
Castle Drive, Armonk, NY 10504 (&#147;IBM Credit&#148;), and <B>Info Tech USA, Inc.</B>,
formerly known as Information Products Center, Inc., (&#147;IPC&#148;) duly organized
under the laws of the State of New Jersey with its principal place of business at 7
Kingsbridge Road, Fairfield, NJ 07004 (&#147;Customer&#148;). This Agreement amends and
restates all prior financing agreements (all such agreements, as amended, restated,
supplemented or otherwise modified from time to time, the &#147;Prior Financing
Agreement.&#148;) </FONT></P>

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<P><FONT FACE="Arial" SIZE=2>Pursuant to the terms of Section 17
of this Agreement, Customer warrants and represents that the obligations owed to IBM
Credit by Customer under the Prior Financing Agreement will remain in full force and
effect, </FONT></P>

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<P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the course of Customer&#146;s business, Customer acquires products and wants IBM Credit to
finance Customer&#146;s purchase of such products under the following terms and
conditions: </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          IBM Credit may in its sole discretion from time to time decide the amount of
          credit IBM Credit extends to Customer, notwithstanding any prior course of
          conduct between IBM Credit and Customer. IBM Credit may combine all of its
          advances to make one debt owed by Customer. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer agrees and understands that provided: (i) Customer&#146;s financing
          agreement with Wells Fargo Business Credit, Inc. dated June 29, 2004
          (&#147;Wells Fargo Financing Agreement&#148;) remains in effect and (ii) no
          default or event of default exists under this Agreement, in the sole discretion
          of IBM Credit, IBM Credit will advance funds under the terms of this Agreement
          up to the full amount available under the terms of the Letter of Credit (at the
          time of the Customer&#146;s request for an advance), as more specifically
          described in Section 4, hereunder. Customer agrees that any decision to finance
          products will not be binding on IBM Credit until such time as the funds are
          actually advanced by IBM Credit. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          In the course of Customer&#146;s operations, Customer intends to purchase from
          persons approved in writing by IBM Credit for the purpose of this Agreement (the
          &#147;Authorized Suppliers&#148;) computer hardware and software products
          manufactured or distributed by or bearing any trademark or trade name of such
          Authorized Suppliers (the &#147;Approved Inventory&#148;). When IBM Credit
          advances funds, IBM Credit may send Customer a Statement of Transaction or other
          statement. If IBM Credit does, Customer will have acknowledged the indebtedness
          to be an account stated and Customer will have agreed to the terms set forth on
          such statement unless Customer notifies IBM Credit in writing of any question or
          objection within seven (7) days after such statement is mailed to Customer. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          To secure payment of all of Customer&#146;s current and future indebtedness to
          IBM Credit whether under this Agreement, any guaranty or surety agreement that
          Customer executes, or any other agreement between Customer and IBM Credit,
          whether direct or contingent, Customer hereby agrees to cause an institution
          acceptable to IBM Credit to issue in IBM Credit&#146;s favor an Irrevocable
          Letter of Credit in a form acceptable to IBM Credit (&#147;Letter of
          Credit&#148;) in the amount of Six Hundred Thousand Dollars ($600,000.00)
          bearing an effective date as of the date of this Agreement and expiring no
          earlier than twelve (12) months from the date hereof. At least sixty (60) days
          prior to the expiration of the Letter of Credit or any subsequent Letter of
          Credit, Customer will renew and extend such Letter of Credit for a term of
          twelve (12) months or longer, or will have a new Letter of Credit issued to IBM
          Credit for a term of twelve (12) months or longer and in an amount, form and
          from an institution acceptable to IBM Credit. </FONT></P>


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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer represents that its business is conducted as a __ SOLE PROPRIETORSHIP,
          __ PARTNERSHIP, __ JOINT VENTURE, XXX CORPORATION, __ COOPERATIVE, ___ LIMITED
          LIABILITY COMPANY (check applicable term). Customer agrees to notify IBM Credit
          immediately of any change in identity, name, form of ownership or management,
          and of any additions or discontinuances of other business locations. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer will execute any and all documents IBM Credit may request to confirm or
          perfect IBM Credit&#146;s title or interest in the Letter of Credit. Customer
          will pay all taxes, license fees, assessments and charges when due. Customer
          warrants and represents that it is not in default in the payment of any
          principal, interest or other charges relating to any indebtedness owed to any
          third party for any reason whatsoever, and no event has occurred under the terms
          or provisions of any agreement, document, promissory note or other instrument,
          which with or without the passage of time and/or the giving of notice
          constitutes or would constitute an event of default thereunder. Each financial
          statement that Customer submits to IBM Credit, is and will be correct and will
          accurately represent Customer&#146;s financial condition. Customer further
          acknowledges IBM Credit&#146;s reliance on the truthfulness and accuracy of each
          and every financial statement that Customer submits to IBM Credit in its
          extension of various financial accommodations to Customer. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer agrees to immediately pay IBM Credit the full amount of the principal
          balance owed IBM Credit, at or before the time payment is required under the
          terms of Customer&#146;s financing program with IBM Credit. Regardless of the
          terms of any scheduled payment program with IBM Credit, if IBM Credit determines
          that the current outstanding indebtedness owed by Customer to IBM Credit exceeds
          the value of the Letter of Credit in IBM Credit&#146;s possession, Customer
          agrees to immediately pay to IBM Credit an amount equal to the difference
          between such outstanding indebtedness and the Letter of Credit. Customer will
          make all payments to IBM Credit according to the remit to instructions in the
          billing statement. Any checks or other instruments delivered to IBM Credit to be
          applied against Customer&#146;s outstanding obligations will constitute
          conditional payment until the funds represented by such instruments are actually
          received by IBM Credit. IBM Credit may apply payments to reduce finance charges
          first and then principal, irrespective of Customer&#146;s instructions. Further,
          IBM Credit may apply principal payments to the oldest (earliest) invoice for the
          Approved Inventory financed by IBM Credit, or to such Approved Inventory which
          is sold, lost, stolen, destroyed, damaged, or otherwise disposed of. If Customer
          signs any instrument for any outstanding obligations, it will be evidence of
          Customer&#146;s obligation to pay and will not be payment. Any discount, rebate,
          bonus, or credit for Approved Inventory granted to Customer by any Authorized
          Supplier will not, in any way, reduce the obligations Customer owes IBM Credit,
          until IBM Credit has received payment in good funds, provided, however, that in
          the event any such discount, rebate, bonus, or credit must be returned or
          disgorged or are otherwise unavailable for application, then Customer&#146;s
          indebtedness will be reinstated as if such discount, rebate, bonus, or credit
          had never been applied. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer will pay IBM Credit finance charges on the total amount of credit
          extended to Customer in the amount agreed to between Customer and IBM Credit
          from time to time. The period of any financing will begin on the invoice date
          for the Approved Inventory whether or not IBM Credit advances payment on such
          date. This period will be included in the calculation of the annual percentage
          rate of the finance charges. Such finance charges may be applied by IBM Credit
          to cover any amounts expended for IBM Credit&#146;s: appraisal and examination
          of the assets; maintenance of facilities for payment; assistance in support of
          Customer&#146;s retail sales; IBM Credit&#146;s commitments to Authorized
          Suppliers to finance shipments of Approved Inventory to Customer; obtaining the
          Letter of Credit and any renewals, extensions or new Letter of Credit; expenses
          incurred in obtaining additional collateral or security; and any costs and
          expenses incurred by IBM Credit arising out of the financing IBM Credit extends
          to Customer. Customer also agrees to pay IBM Credit additional charges which
          will include: late payment fees at a per annum rate equal to the Prime Rate plus
          6.5%; flat charges; charges for receiving NSF checks from Customer; renewal
          charges; and any other charges agreed to by Customer and IBM Credit from time to
          time. For purposes of this Agreement, &#147;Prime Rate&#148; will mean the
          average of the rates of interest announced by banks which IBM Credit uses in its
          normal course of business of determining prime rate. Unless Customer hereafter
          otherwise agrees in writing, the finance charges and additional charges agreed
          upon will be IBM Credit&#146;s applicable finance charges and additional charges
          for the class of Approved Inventory involved prevailing from time to time at IBM
          Credit&#146;s principal place of business, but in no event greater than the</font></p>


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     <P><FONT FACE="Arial" SIZE=2>highest rate from time to time permitted by applicable law. If it is determined
          that amounts received from Customer were in excess of such highest rate, then
          the amount representing such excess will be considered reductions to the
          outstanding principal of IBM Credit&#146;s advances to Customer. IBM Credit will
          send Customer, at monthly or other intervals, a statement of all charges due on
          Customer&#146;s account with IBM Credit. Customer will have acknowledged the
          charges due, as indicated on the statement, to be an account stated, unless
          Customer objects in writing to IBM Credit within seven (7) days after such
          statement is mailed to Customer. This statement may be adjusted by IBM Credit at
          any time to conform to applicable law and this Agreement. IBM Credit shall
          calculate any free financing period utilizing a methodology that is consistent
          with the methodologies used for similarly situated customers of IBM Credit. The
          Customer understands that IBM Credit may not offer, may change or may cease to
          offer a free financing period for the Customer&#146;s purchases of Approved
          Inventory. If any Authorized Supplier fails to provide payment of a finance
          charge for Customer, as agreed, Customer will be responsible for and pay to IBM
          Credit all finance charges billed to Customer&#146;s account. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Any one or more of the following events shall constitute a default by Customer
          under this Agreement: Customer breaches any of the terms, warranties or
          representations contained in this Agreement or in any other agreements between
          Customer and IBM Credit or between Customer and any of IBM Credit&#146;s
          affiliates; any guarantor or surety of Customer&#146;s indebtedness to IBM
          Credit under this Agreement or any other agreements breaches any of the terms,
          warranties or representations contained in any guaranty, surety agreement or in
          any other agreements between any guarantor or surety and IBM Credit or between
          any guarantor or surety and any of IBM Credit&#146;s affiliates; any
          representation, statement, report or certificate made or delivered by Customer
          or any of Customer&#146;s owners, representatives, employees or agents or any
          guarantor or surety to IBM Credit is not true and correct; Customer fails to pay
          any of the indebtedness owed to IBM Credit or any of IBM Credit&#146;s
          affiliates when due and payable or declared to be due and payable under this
          Agreement or under any other agreements between Customer and IBM Credit or
          between Customer and any of IBM Credit&#146;s affiliates; IBM Credit determines
          that it is insecure with respect to the payment of any part of Customer&#146;s
          indebtedness owed to IBM Credit; Customer or any guarantor or surety becomes in
          default in the payment of any indebtedness owed to any third party, or any event
          occurs under the terms or provisions of any agreement, document, promissory note
          or other instrument, for any reason whatsoever, which with or without the
          passage of time and/or the giving of notice constitutes or would constitute an
          event of default thereunder; a judgment issues on any money demand against
          Customer or any guarantor or surety which is not paid in full within sixty (60)
          days; a writ of capias, attachment, sale or seizure is issued against Customer
          or any of Customer&#146;s assets; any of Customer&#146;s assets are seized or
          taken in execution; the death of the undersigned if the business is operated as
          a sole proprietorship or partnership, or the death of any guarantor or surety;
          Customer ceases or suspends its business; Customer or any guarantor or surety
          makes a general assignment for the benefit of Customer&#146;s or any
          guarantor&#146;s or surety&#146;s creditors; Customer or any guarantor or surety
          become bankrupt or insolvent or voluntarily or involuntarily become subject to
          the provisions of the Federal Bankruptcy Code, state insolvency laws or any act
          or code for the benefit of creditors; any receiver is appointed for any of
          Customer&#146;s or any guarantor&#146;s or surety&#146;s properties, assets,
          businesses or undertakings; any guaranty or surety agreement pertaining to
          Customer&#146;s indebtedness to IBM Credit is terminated for any reason
          whatsoever; Customer loses any franchise, permission, license or right to sell
          or deal in any Approved Inventory; if at least sixty (60) days prior to the
          expiration of the Letter of Credit or any subsequent Letter of Credit, such
          Letter of Credit is not extended for a term of twelve (12) months or longer, or
          a new Letter of Credit in an amount, form and from an institution acceptable to
          IBM Credit and for a term of twelve (12) months or longer is not provided to IBM
          Credit; Customer or any guarantor or surety misrepresents its respective
          financial condition or organizational structure. Following an event of a
          default: </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          IBM Credit may, at any time at IBM Credit&#146;s election, without notice or
          demand to Customer do any one or more of the following: declare all or any part
          of the obligations Customer owes IBM Credit immediately due and payable,
          together with all court costs and all costs and expenses of IBM Credit&#146;s
          repossession and collection activity, including, but not limited to, all
          attorney&#146;s fees; exercise any or all rights of a secured party under
          applicable law; exercise any and all of IBM Credit&#146;s rights to draw upon
          the Letter of Credit; and/or cease making any further financial accommodations
          or extending any additional credit to Customer; and/or exercise any or all
          rights available at law or in equity. All of IBM Credit&#146;s rights and
          remedies are cumulative. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer waives and releases: any and all claims and causes of action which
          Customer may now or ever have against IBM Credit arising directly or indirectly
          out of this Agreement or Customer&#146;s financing program with IBM Credit. </FONT></P>

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<P><FONT FACE="Arial" SIZE=2>If Customer brings any action or
asserts any claim against IBM Credit which arises out of this Agreement, any other
agreement or any of the business dealings between IBM Credit and Customer, in which
Customer does not prevail, Customer agrees to pay IBM Credit all costs and expenses of IBM
Credit&#146;s defense of such action or claim including, but not limited to, all
attorney&#146;s fees. If IBM Credit fails to exercise any of IBM Credit&#146;s rights or
remedies under this Agreement, such failure will in no way or manner waive any of IBM
Credit&#146;s rights or remedies as to any past, current or future default. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer agrees that IBM Credit does not warrant the Approved Inventory.
          Customer will pay IBM Credit in full even if the Approved Inventory is defective
          or fails to conform to any warranties extended by any third party.
          Customer&#146;s obligations to IBM Credit will not be affected by any dispute
          Customer may have with any third party. Customer will not assert against IBM
          Credit any claim or defense Customer may have against any third party. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer will indemnify and hold IBM Credit harmless against any claims or
          defenses asserted by any buyer of the Approved Inventory by reason of: the
          condition of any Approved Inventory; any representations made about the Approved
          Inventory; or for any and all other reasons whatsoever. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Customer further authorizes IBM Credit to provide to any third party any credit,
          financial or other information about Customer that is in IBM Credit&#146;s
          possession. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Each party may electronically transmit to or receive from the other party
          certain documents specified in the E-Business Schedule A attached hereto
          (&#147;E-Documents&#148;) via the Internet or electronic data interchange
          (&#147;EDI&#148;). Any transmission of data which is not an E-Document shall
          have no force or effect between the parties. EDI transmissions may be
          transmitted directly or through any third party service provider
          (&#147;Provider&#148;) with which either party may contract. Each party will be
          liable for the acts or omissions of its Provider while handling E-Documents for
          such party, provided, that if both parties use the same Provider, the
          originating party will be liable for the acts or omissions of such Provider as
          to such E-Document. Some information to be made available to Customer will be
          specific to Customer and will require Customer to register with IBM Credit
          before access is provided. After IBM Credit has approved the registration
          submitted by Customer, IBM Credit will provide an ID and password(s) to an
          individual designated by Customer (&#147;Customer Recipient&#148;). Customer
          accepts responsibility for the designated individual&#146;s distribution of the
          ID and password(s) within its organization and Customer will take reasonable
          measures to ensure that passwords are not shared or disclosed to unauthorized
          individuals. Customer will conduct an annual review of all IDs and passwords to
          ensure that they are accurate and properly authorized. IBM CREDIT MAY CHANGE OR
          DISCONTINUE USE OF AN ID OR PASSWORD AT ITS DISCRETION AT ANY TIME. E-Documents
          will not be deemed to have been properly received, and no E-Document will give
          rise to any obligation, until accessible to the receiving party at such
          party&#146;s receipt computer at the address specified herein. Upon proper
          receipt of an E-Document, the receiving party will promptly transmit a
          functional acknowledgment in return. A functional acknowledgment will constitute
          conclusive evidence that an E-Document has been properly received. If any
          transmitted E-Document is received in an unintelligible or garbled form, the
          receiving party will promptly notify the originating party in a reasonable
          manner. In the absence of such a notice, the originating party&#146;s records of
          the contents of such E-Document will control. </FONT></P>

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<P><FONT FACE="Arial" SIZE=2>Each party will use those security
procedures which are reasonably sufficient to ensure that all transmissions of E-Documents
are authorized and to protect its business records and data from improper access. Any
E-Document received pursuant to this paragraph 13 will have the same effect as if the
contents of the E-Document had been sent in paper rather than electronic form. The conduct
of the parties pursuant to this paragraph 13 will, for all legal purposes, evidence a
course of dealing and a course of performance accepted by the parties. The parties agree
not to contest the validity or enforceability of E-Documents under the provisions of any
applicable law relating to whether certain agreements are to be in writing or signed by
the party to be bound thereby. The parties agree, as to any E-Document accompanied by
Customer&#146;s ID, that IBM Credit can reasonably rely on the fact that such E-Document
is properly authorized by Customer. E-Documents, if introduced as evidence on paper in any
judicial, arbitration, mediation or administrative proceedings, will be admissible as
between the parties to the same extent and under the same conditions as other business
records originated and maintained in documentary form. Neither party will contest the
admissibility of copies of E-Documents under either the business records exception to the
hearsay rule or the best evidence rule on the basis that the E-Documents were not
originated or maintained in documentary form. </FONT></P>

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<P><FONT FACE="Arial" SIZE=2>Neither party will be liable to the
other for any special, incidental, exemplary or consequential damages arising from or as a
result of any delay, omission or error in the electronic transmission or receipt of any
E-Document pursuant to this paragraph 13, even if either party has been advised of the
possibility of such damages. In the event Customer requests IBM Credit to effect a
withdrawal or debit of funds from an account of Customer, then in no event will IBM Credit
be liable for any amount in excess of any amount incorrectly debited, except in the event
of IBM Credit&#146;s gross negligence or willful misconduct. No party will be liable for
any failure to perform its obligations pursuant to this paragraph 14 in connection with
any E-Document, where such failure results from any act of God or other cause beyond such
party&#146;s reasonable control (including, without limitation, any mechanical, electronic
or communications failure) which prevents such party from transmitting or receiving
E-Documents. </FONT></P>

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     <P><FONT FACE="Arial" SIZE=2><B>CUSTOMER RECIPIENT for Internet transmissions:</B></font></p>

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     <P><FONT FACE="Arial" SIZE=2><B>(PLEASE PRINT)<BR>
Name of Customer's Designated Central Contact Authorized to Receive IDs and Passwords:</B></font></p>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=BOTTOM>
     <TD WIDTH=50% nowrap><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.Robert Patterson</FONT><HR SIZE=1 NOSHADE> </TD>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
</TR>
</TABLE>

<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=BOTTOM>
     <TD WIDTH=15% nowrap><FONT FACE="Arial" SIZE=2><B>e-mail Address:</b> </FONT></TD>
     <TD WIDTH=35%><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bpatterson@infotechusa.com</font><HR SIZE=1 NOSHADE ALIGN=LEFT> </TD>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=BOTTOM>
     <TD WIDTH=15% nowrap><FONT FACE="Arial" SIZE=2><B>Phone Number:</b> </FONT></TD>
     <TD WIDTH=35%><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(973)227-8772 x103</font><HR SIZE=1 NOSHADE ALIGN=LEFT> </TD>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Time is of the essence in this Agreement. This Agreement will be effective from
          (i) the date of its acceptance at IBM Credit&#146;s office, (ii) receipt, in
          form and substance satisfactory to IBM Credit, a fully executed copy of the
          Wells Fargo Financing Agreement and (iii) Customer&#146;s total outstandings
          under the Prior Financing Agreement being reduced to Six Hundred Thousand
          Dollars ($600,000.00). Customer acknowledges receipt of a true copy and waives
          notice of IBM Credit&#146;s acceptance of it. If IBM Credit advances funds under
          this Agreement, IBM Credit will have accepted it. This Agreement will remain in
          force until one of the parties gives ninety (90) day written notice to the other
          that it is terminated. Notwithstanding the previous sentence, in the event that
          the terms of the Letter of Credit are not extended for any reason or Customer
          fails to provide a new Letter of Credit in an amount, form and from an
          institution acceptable to IBM Credit and for a term of twelve (12) months or
          longer, IBM Credit may immediately terminate and accelerate all amounts due
          under this Agreement and otherwise exercise those remedies available to IBM
          Credit under the terms of this Agreement. If Customer terminates this Agreement,
          IBM Credit may declare all or any part of the indebtedness Customer owes IBM
          Credit due and payable immediately. If this Agreement is terminated, Customer
          will not be relieved from any obligations to IBM Credit arising out of IBM
          Credit&#146;s advances or commitments made before the effective date of
          termination. IBM Credit&#146;s rights under this Agreement and IBM Credit&#146;s
          interest and title in present and future Letters of Credit will remain valid,
          binding and enforceable until all Customer&#146;s indebtedness to IBM Credit is
          paid in full. This Agreement shall be binding upon and inure to the benefit of
          IBM Credit and the Customer and their respective successors and assigns;
          provided, that the Customer shall have no </font></p>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Page 5&nbsp;&nbsp;of&nbsp;&nbsp;8</font></p>
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Arial" SIZE=2>right to assign this Agreement without
          the prior written consent of IBM Credit. This Agreement will protect and bind
          IBM Credit&#146;s and Customer&#146;s respective heirs, representatives,
          successors and assigns. It can be varied only by a document signed by IBM
          Credit&#146;s and Customer&#146;s authorized representatives. If any provision
          of this Agreement or its application is invalid or unenforceable, the remainder
          of this Agreement will not be impaired or affected and will remain binding and
          enforceable. This Agreement is executed with the authority of Customer&#146;s
          Board of Directors, and with shareholder approval, if required by the law, if
          Customer is a corporation or if Customer is a limited liability company, with
          the authority of authorized members. All notices IBM Credit sends to Customer
          will be sufficiently given if mailed or delivered to Customer at Customer&#146;s
          address first written above. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>15</B>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The laws of the State of New York will govern this Agreement. Customer agrees
          that venue for any lawsuit will be in the State or Federal Court within the
          county, parish, or district where IBM Credit&#146;s office, which provides the
          financial accommodations, is located. Customer hereby waives any right to change
          the venue of any action. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>16.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          If Customer has previously executed any security agreements with IBM Credit,
          Customer agrees that this Agreement is intended only to amend and supplement
          such written agreements, and will not be deemed to be a novation or termination
          of such written agreements. In the event the terms of this Agreement conflict
          with the terms of any prior security agreement that Customer previously executed
          with IBM Credit, the terms of this Agreement will control in determining the
          agreement between Customer and IBM Credit. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Arial" SIZE=2><B>17.</B>&nbsp;&nbsp;&nbsp;
          (A)&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything contained in any document to the contrary, it is
          understood and agreed by Customer and IBM Credit that the claims of IBM Credit
          arising out of the obligations of Customer under the Prior Financing Agreement
          or any other documents between Customer and IBM Credit and existing as of the
          date hereof constitute continuing claims of IBM Credit. Customer acknowledges
          and agrees that such obligations outstanding as of the date hereof have not been
          satisfied or discharged and that this Agreement is not intended to effect a
          novation of Customer&#146;s obligations under the Prior Financing Agreement or
          any other documents between Customer and IBM Credit. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;
          Neither the obtaining of any judgment nor the exercise of any power of seizure
          or sale shall operate to extinguish the obligations of Customer to IBM Credit
          under this Agreement and shall not operate as a merger of any covenant in this
          Agreement, and the acceptance of any payment or alternate security shall not
          constitute or create a novation and the obtaining of a judgment or judgments
          under a covenant herein contained shall not operate as a merger of that covenant
          or affect IBM Credit&#146;s rights under this Agreement. </FONT></P>

<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Page 6&nbsp;&nbsp;of&nbsp;&nbsp;8</font></p>
<page>



<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Arial" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>18.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          CUSTOMER WAIVES ANY STATUTORY RIGHT TO NOTICE OR HEARING PRIOR TO IBM
          CREDIT&#146;S DRAW UPON THE LETTER OF CREDIT. CUSTOMER FURTHER WAIVES ANY AND
          ALL RIGHTS OF SETOFF CUSTOMER MAY HAVE AGAINST IBM CREDIT. CUSTOMER AGREES THAT
          ANY PROCEEDING IN WHICH CUSTOMER, OR IBM CREDIT OR ANY OF IBM CREDIT&#146;S
          AFFILIATES, OR CUSTOMER&#146;S OR IBM CREDIT&#146;S ASSIGNS ARE PARTIES, AS TO
          ALL MATTERS AND THINGS ARISING DIRECTLY OR INDIRECTLY OUT OF THIS AGREEMENT, OR
          THE RELATIONS AMONG THE PARTIES LISTED IN THIS PARAGRAPH WILL BE TRIED IN A
          COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT A JURY. EACH PARTY TO THIS
          AGREEMENT HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Arial" SIZE=2><B><U>INFO TECH USA, INC.</U> </B></FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH=3%><FONT FACE="Arial" SIZE=2>By: </FONT></TD>
     <TD WIDTH=47%><FONT FACE="Arial" SIZE=2>&nbsp; /s/ J. Robert Patterson</FONT><HR SIZE=1 NOSHADE> </TD>
</TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH=10%><FONT FACE="Arial" SIZE=2>Print Name: </FONT></TD>
     <TD WIDTH=40%><FONT FACE="Arial" SIZE=2>&nbsp; J. Robert Patterson</FONT><HR SIZE=1 NOSHADE> </TD>
</TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD WIDTH=50%><FONT FACE="Arial" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH=4%><FONT FACE="Arial" SIZE=2>Title: </FONT></TD>
     <TD WIDTH=46%><FONT FACE="Arial" SIZE=2>&nbsp;Secretary / Treasurer </FONT><HR SIZE=1 NOSHADE> </TD>
</TR>
</TABLE>

<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>
<BR><BR><BR><BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Page 7&nbsp;&nbsp;of&nbsp;&nbsp;8</font></p>


<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>E-BUSINESS SCHEDULE A
(&#147;SCHEDULE A&#148;) </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Customer Name: INFO TECH
USA, INC. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EFFECTIVE DATE OF THIS
SCHEDULE: June 30, 2004 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Arial" SIZE=2><U>DOCUMENTS:</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Arial" SIZE=2>All documents contained in the IBM
Credit LLC <U>Account Management Tool</U> on the website listed below: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Arial" SIZE=2>http://www.ibm.com/financing/commercial/tools.html </FONT></P>

<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>
<BR><BR><BR><BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Page 8&nbsp;&nbsp;of&nbsp;&nbsp;8</font></p>

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