EQUIPMENT LEASE GUARANTY
LESSOR: QUAIL AMERICAN CORP.
LEASE NO. JLA7H07
DATE OF LEASE: 8/13/97
This Guaranty Agreement made and entered into this 13TH day of AUGUST, 1997 by COLIN DYNE
(hereinafter referred to collectively as "Guarantor"), in favor of QUAIL AMERICAN CORP. hereinafter referred
to as "Lessor").
WHEREAS, it is contemplated that Lessor may enter into a lease and/or other related agreements (hereinafter
collectively "Lease") with TAG-IT, INC. (hereinafter collectively "Lessee"); and,
WHEREAS, Guarantor has an interest, financial or otherwise, in Lessee, and it is to the benefit of Guarantor that
Lessor enter into the Lease with Lessee, and Guarantor has read the proposed Lease in full and finds the terms of
said Lease acceptable, and in recognition that Lessor would be unwilling to enter into the Lease without the
Guaranty hereinafter set forth, and in recognition of Lessor's reliance upon the Guaranty in entering into the
NOW, THEREFORE, in order to induce Lessor to enter into the Lease, Guarantor, jointly and severally,
unconditionally guaranties the faithful and full performance by Lessee of all terms and conditions of the Lease. In
the event of default by Lessee, or failure to faithfully perform any of the terms or conditions required of Lessee
under the Lease, or in the event of failure of Lessee to make any or all payments of money required of it under
the Lease, Guarantor unconditionally promises to pay to Lessor, in lawful money of the United States, all sums at
any time due and unpaid under the Lease, plus costs of collection, including reasonably attorney fees with or
without trial, and upon appeal and review.
The obligations of Guarantor hereunder are joint and several and are independent of the obligations of Lessee
under the Lease, and a separate action or actions may be brought against Guarantor, whether action is brought
against Lessee or whether Lessee be joined in any action or actions, the liability of Guarantor hereunder being