Document:

Exhibit 10.8

                              CONSULTING AGREEMENT
                              --------------------

     Consulting Agreement (this "Agreement"),  dated as of December 16, 2005, by
and among NCT Group, Inc., a Delaware corporation ("NCT"), Artera Group, Inc., a
Delaware  corporation  and  wholly-owned  subsidiary of NCT  ("Artera"),  Spyder
Technologies Group, LLC, a Connecticut limited liability company ("Consultant"),
and Jonathan Parrella, Consultant's current President ("Principal").

                                   WITNESSETH:
                                   ----------

     WHEREAS,  Artera  wishes  to  retain  Consultant  and  Principal  to act as
consultants  to  Artera  on the  terms and  conditions  set  forth  herein,  and
Consultant and Principal wish to be so retained; and

     WHEREAS,  NCT, Artera and Consultant wish to memorialize certain agreements
among them regarding intellectual property;

     NOW THEREFORE,  in  consideration  of the premises and the mutual  promises
herein made, the parties hereto agree as follows:

     1. Consulting Relationship.

         1.1  Appointment.  Consultant shall serve as a consultant to Artera for
the Consulting  Term (as defined  below).  Principal  shall perform on behalf of
Consultant  the  computer and data  processing  services set forth in Schedule A
hereto.

         1.2   Duties.  Principal  shall  devote a  substantial  portion  of his
business time to insure best efforts in the performance of  Consultant's  duties
hereunder  and to the  business  and  affairs  of  Artera,  and  Consultant  and
Principal shall use their best efforts to preserve the goodwill  associated with
Artera's business. In the performance of Consultant's  provision of computer and
data processing services hereunder,  Principal shall report directly to Artera's
Chief Operating Officer.

         1.3  Compliance.  Consultant and Principal  shall duly,  faithfully and
punctually perform and observe any and all rules and regulations that Artera may
now or shall hereafter establish governing the conduct of its business.

         1.4   Consulting  Term.  The term of this  Agreement  (the  "Consulting
Term") shall  commence on the date hereof and shall  continue until such time as
either Artera or Consultant  terminates this  Agreement,  with or without cause,
upon thirty days' written  notice to the other.  In addition,  Artera shall have
the right to terminate this Agreement at any time, upon ten days' written notice
to  Consultant,  in the event that Principal is no longer an officer or employee
of  Consultant  or otherwise  performing  under this  Agreement on  Consultant's
behalf.

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     2. Compensation.

         2.1  Consulting Fee. Artera shall pay to Consultant for the services to
be rendered by Principal on behalf of Consultant hereunder during the Consulting
Term  consulting  fees in the amount of $365.00 per day (or the pro rata portion
thereof which Principal shall have worked, based on an eight hour work day) (the
"Consulting  Fee") for worked  performed  on such day.  Consultant  shall submit
semi-monthly  invoices for such Consulting  Fees, and such Consulting Fees shall
be paid semi-monthly (one invoice period in arrears) and otherwise in accordance
with Artera's normal payment procedures.  Any business time devoted by Principal
on behalf of Consultant in furtherance of any other agreement between Artera and
Consultant, such as any master distributor,  reseller or finder agreement, shall
not be  applicable  to the  determination  of the  number  of  hours  worked  by
Principal in the performance of Consultant's duties under this Agreement, or the
Consulting Fee payable, on any given day.

         2.2  Expenses. In the event that Consultant incurs reasonable travel or
other reasonable out-of-pocket business expenses in connection with its services
hereunder which are authorized in advance by Artera's Chief  Operating  Officer,
Consultant  shall be reimbursed  therefor upon  submission of  documentation  to
Artera.

     3. Consultant Inventions.

         3.1  Assignment. Subject to the terms and conditions of this Agreement,
Principal hereby irrevocably  assigns,  conveys,  sells, grants and transfers to
NCT and  agrees  to  assign,  convey,  sell,  grant  and  transfer  to NCT,  its
successors  and assigns all of his rights,  title and interest of every kind and
character  throughout the world,  including moral rights,  in and to any and all
Consultant  Inventions (as defined below) to the full extent of his ownership or
interest therein;  including,  without limitation,  all federal, state, foreign,
statutory and common law and other rights in patents,  copyrights, moral rights,
trademarks, trade secrets, know-how, design rights and all intellectual property
and proprietary rights therein; all domestic and foreign  intellectual  property
applications  and  registrations  therefor  (and all  divisions,  continuations,
continuations-in-part,  reexaminations,  substitutions, reissues, extensions and
renewals of such applications and registrations,  and the right to apply for any
of the foregoing);  all goodwill associated  therewith;  all rights to causes of
actions and remedies related thereto (including,  without limitation,  the right
to sue for past, present or future  infringement,  misappropriation or violation
of rights related to the foregoing);  and any and all other rights and interests
arising out of, in connection with or in relation to the Consultant  Inventions.
Upon NCT's reasonable request,  Consultant and Principal will promptly take such
actions  including,  without  limitation,  the prompt  execution and delivery of
documents in recordable  form, as may be reasonably  necessary to vest,  secure,
perfect,  protect or  enforce  the  rights  and  interests  of NCT in and to the
Consultant  Inventions.  In the event NCT is unable, after reasonable effort, to
secure the  signature  of  Consultant  or Principal on any document or documents
needed  to apply for or  prosecute  any  patent,  copyright,  or other  right or
protection  relating  to a  Consultant  Invention,  for any  reason  whatsoever,
Consultant and Principal  hereby  irrevocably  designate and appoint NCT and its
duly authorized  officers and agents as Consultant's and Principal's  agents and
attorneys-in-fact  to act for and on  Consultant's  and  Principal's  behalf  to
execute  and file any

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such application or applications and to do all other lawfully  permitted acts to
further  the  prosecution  and  issuance  of  patents,  copyrights,  or  similar
protections  thereon  with the same  legal  force and effect as if  executed  by
Consultant and Principal.

     As  used  in  this  Agreement,   "Consultant  Inventions"  shall  mean  all
improvements,   inventions,   discoveries,   developments,   designs,  formulae,
processes, techniques, computer programs (source and object codes), know-how and
data,  whether or not  patentable,  made or  conceived or reduced to practice or
learned by Consultant or Principal,  either alone or jointly with others,  prior
to the date of this Agreement that (a) relate to or are or can be made useful in
the current business,  products or services (whether marketed or in development)
of  Artera,  (b)  relate to or are or can be made  useful  in  telecommunication
services or  computer  software  for  increasing  the speed of, or reducing  the
bandwidth  required  for,  documents,  text,  images,  voice or other  data when
transmitted  electronically over communication networks or lines, including data
sent to or  received  from the  Internet  or (c)  result  from use of  premises,
facilities or Proprietary Information (as defined below) or assets owned, leased
or contracted for by Artera or by NCT or its subsidiaries or affiliates (NCT and
such subsidiaries and affiliates, collectively, "Affiliates").

         3.2   Consultant  and Principal  Representations  and  Indemnification.
Consultant  and  Principal  each  hereby  represents  to NCT  that,  other  than
Principal,  no  person  has any  rights,  title  and  interest  of any  kind and
character whatsoever throughout the world, including moral rights, in and to any
and all Consultant Inventions. Consultant and Principal shall indemnify and hold
harmless NCT,  Artera and the Affiliates  from and against any and all causes of
action, lawsuits, debts, damages, claims and demands,  including attorneys' fees
and expenses of defense in any of the  foregoing,  arising out of or relating to
any  assertion  by any person of any rights,  title and interest of any kind and
character whatsoever throughout the world, including moral rights, in and to any
and all Consultant Inventions.

         3.3  Payment.  As payment for the assignment of the rights  pursuant to
Section 3.1 above and subject to the  limitations  set forth in this Section 3.3
below,  Artera will pay to Principal a quarterly fee (the "Royalty  Fee") of two
percent  (2%) of Net  Revenues  (as defined  below)  received  from the targeted
Internet advertising delivery system and subscription-free  Internet accelerator
offering,  currently  known  as the  "Rev  The  Web"  service.  As  used in this
Agreement,  "Net Revenues" shall mean all quarterly  operating revenues received
by Artera (to which it is  anticipated  NCT will grant a license to utilize  the
Consultant Inventions) or any Affiliate from any "Rev The Web" service, that, at
the  applicable  time,  utilizes any Consultant  Inventions,  less all quarterly
commissions, other revenue sharing arrangements and similar direct selling costs
payable in connection with the distribution of such service; provided,  however,
that  "Net  Revenues"  shall  not  include  (a) any  revenues  received  from an
Affiliate  or from Artera  (i.e.,  intercompany  payments)  or (b) any  revenues
received by Artera or any Affiliate  from the sale or other  disposition  of the
business  assets of the "Rev The Web"  service  or any  equity  interest  in the
entity that owns such  assets.  Notwithstanding  the  foregoing,  no Royalty Fee
shall be paid or accrued for any  quarter to the extent  such  Royalty Fee would
exceed 50% of Net Profits. As used in this Agreement, Net Profits shall mean the
excess,  if any,  of Net  Revenues  over  net  quarterly  expenses  incurred  in
connection  with  the  distribution  of the "Rev  the  Web"  Service

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(including  depreciation  and other non-cash  expenses) but not including income
taxes.

         4.   Proprietary  Information  and Artera  Inventions.  Consultant  and
Principal recognize that Artera has been, is and will be engaged in a continuous
program of research, development,  experimentation and production respecting its
business and technology.

     Consultant  and  Principal  represent  that  Consultant's  and  Principal's
relationship with Artera will not violate any other employment,  non-competition
or  confidentiality  agreement or other  obligation  Consultant or Principal may
have to any employer or other person or entity,  that  Consultant  and Principal
have obtained all necessary  approvals to perform  Consultant's  and Principal's
consultancy  hereunder,  and that  Consultant  and Principal  will adhere to all
policies,  procedures,  rules and  regulations  of any other  employer  or other
person in performing Consultant's and Principal's obligations hereunder.

     Consultant and Principal understand that:

     A.  As part of  Consultant's  and  Principal's  relationship  with  Artera,
Consultant and Principal may make new technical  contributions and inventions of
value to Artera.

     B.  Consultant's  and  Principal's  consultancy  creates a relationship  of
confidence  and trust  between them and Artera with  respect to any  information
applicable  to the  business  or  technology  of Artera  and  applicable  to the
business or technology of any client, customer, distributor, licensee, affiliate
or co-venturer of Artera,  which may be made known to Consultant or Principal by
Artera or by any such person,  or learned by Consultant or Principal  during the
period of Consultant's consultancy.

     C. In  consideration  of  Consultant's  consultancy  and  the  compensation
received by Consultant from Artera pursuant to Section 2 above (and by Principal
from  Consultant)  from time to time,  Consultant and Principal hereby agrees as
follows:

          (1) All  Proprietary  Information (as defined below) shall be the sole
     property of Artera and its assigns, and Artera and its assigns shall be the
     sole  owner of all  patents,  copyrights,  trademarks  and other  rights in
     connection therewith. Subject to Section 3 above with respect to Consultant
     Inventions,  Consultant  and  Principal  hereby assign to Artera any rights
     Consultant or Principal may have or acquire in all Proprietary Information.
     At all times,  during  Consultant's  consultancy  with Artera and after its
     termination, Consultant or Principal will not disclose to anyone outside of
     Artera  or use for  its or his  own  benefit  any  Proprietary  Information
     without the prior written consent of Artera,  except as may be necessary in
     the ordinary course of performing Consultant's and Principal's duties as an
     advisor to Artera.

          As  used in  this  Agreement,  "Proprietary  Information"  shall  mean
     information that Artera or any of the Affiliates  possesses and will in the
     future possess that has been, or will be, created, discovered, developed or
     acquired by Artera or any of the  Affiliates,  or has become or will become
     otherwise  known to Artera  or any of the  Affiliates  (including,

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     without  limitation,  information  created,  discovered,  developed or made
     known by Consultant or Principal to Artera (or any of the Affiliates) or to
     Consultant  or  Principal by Artera (or any of the  Affiliates)  during the
     period of or arising out of Consultant's  consultancy with Artera),  and in
     which property  rights have been or will be assigned or otherwise  conveyed
     to Artera,  which information has or will have actual or potential economic
     value in the business in which Artera is engaged.  By way of  illustration,
     Proprietary  Information  includes  but is not  limited  to trade  secrets,
     processes, formulae, data, know-how,  discoveries,  developments,  designs,
     improvements,    inventions,   techniques,   licenses,   marketing   plans,
     strategies,   budgets,   projections,   unpublished  financial  statements,
     forecasts,   computer   programs   (source  and  object  codes),   software
     documentation, customer lists, supplier lists, prices and costs.

          (2) In the event of the termination of Consultant's  consultancy  with
     Artera for any reason,  Consultant and Principal will deliver to Artera all
     documents or other materials of any description or any  reproduction of any
     description containing any, or relating to any, Proprietary Information.

          (3)  Consultant  and  Principal  agree  that for a period of two years
     following  termination  of  services  to  Artera,  neither  Consultant  nor
     Principal will entice,  induce or solicit  employees of Artera to leave its
     employ.

          (4) Consultant and Principal agree to disclose  promptly to Artera any
     Artera  Inventions (as defined below).  Any Artera  Inventions shall be the
     sole  property of Artera and its assigns,  and Artera and its assigns shall
     be the sole owner of all patents and other rights in connection  therewith.
     Consultant and Principal hereby assign to Artera any and all rights,  title
     and interest  Consultant  and  Principal  may have or acquire in all Artera
     Inventions.  Consultant  and  Principal  further  agree  as to  all  Artera
     Inventions to execute all necessary  documents and otherwise provide proper
     assistance (but at Artera's expense), during and subsequent to Consultant's
     and  Principal's  consultancy,  to  obtain  and from  time to time  enforce
     patents,  copyrights,  trademarks and other rights and protections relating
     to the Artera  Inventions in any and all  countries,  as Artera may desire,
     together with any  assignments  thereof to Artera or persons  designated by
     it. Artera shall  compensate  Consultant and Principal at a reasonable rate
     for the time actually spent by Consultant and Principal at Artera's request
     on such assistance following  termination of Consultant's  consultancy.  In
     the  event  Artera is  unable,  after  reasonable  effort,  to  secure  the
     signature of Consultant or Principal on any document or documents needed to
     apply for or prosecute any patent,  copyright, or other right or protection
     relating to an Artera Invention, for any reason whatsoever,  Consultant and
     Principal  hereby  irrevocably  designates and appoints Artera and its duly
     authorized  officers and agents as Consultant's  and Principal's  agent and
     attorney-in-fact  to act for and on Consultant's and Principal's  behalf to
     execute and file any such  application or applications  and to do all other
     lawfully permitted acts to further the prosecution and issuance of patents,
     copyrights,  or similar  protections  thereon with the same legal force and
     effect as if executed by Consultant and Principal.

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          As  used  in  this  Agreement,  "Artera  Inventions"  shall  mean  all
     improvements,  inventions,  discoveries,  developments,  designs, formulae,
     processes,   techniques,  computer  programs  (source  and  object  codes),
     know-how and data, whether or not patentable,  made or conceived or reduced
     to practice or learned by Consultant or Principal,  either alone or jointly
     with others, during the period of Consultant's and Principal's  consultancy
     that (a) relate to or are or can be made  useful in the  current  business,
     products or services  (whether  marketed or in development) of Artera,  (b)
     relate to or are or can be made  useful in  telecommunication  services  or
     computer  software for  increasing  the speed of, or reducing the bandwidth
     required for, documents, text, images, voice or other data when transmitted
     electronically over communication networks or lines, including data sent to
     or received from the Internet, (c) result from Consultant's and Principal's
     consultancy with Artera, or (d) result from use of premises,  facilities or
     Proprietary Information or assets owned, leased or contracted for by Artera
     or by any of the Affiliates.

          (5) Consultant and Principal  represent that  Consultant and Principal
     do not possess confidential information arising out of any other employment
     or consultancy which, in Consultant's and Principal's best judgment,  would
     be utilized in connection with  Consultant's and Principal's  engagement by
     Artera.  If, in spite of the  previous  sentence,  Consultant  or Principal
     should find that confidential  information  belonging to any other employer
     or business  with which  Consultant  or  Principal  has  consulted  or been
     employed might be usable in connection with Artera's  business,  Consultant
     and  Principal  will not  intentionally  disclose  to  Artera or use on its
     behalf any  confidentia1  information  belonging to any former  employer or
     business with which Consultant or Principal has consulted or been employed;
     but during Consultant's engagement by Artera, Consultant and Principal will
     use in the performance of Consultant's and Principal's  duties  information
     which is generally  known and used by persons with training and  experience
     comparable to Consultant's and Principal's own and all information which is
     common knowledge in the industry or otherwise legally in the public domain.

          Artera,  Consultant and Principal  understand that this Section 4 does
     not apply to  inventions  for which no  equipment,  supplies,  facility  or
     Proprietary  Information  of  Artera  was used  and  which  were  developed
     entirely on Consultant's or Principal's own time.

          5. Exclusivity and Covenant Not to Compete. During the Consulting Term
     and for a period of twelve months after the  termination  of any consulting
     or subsequent  employment  relationship between Consultant or Principal and
     Artera,  Consultant and Principal will not,  without Artera's prior express
     written consent, (a) engage in any employment, consulting or other business
     relationship  with any other person or entity whose  business is similar to
     Artera's business nor will Consultant or Principal,  for the benefit of any
     person or entity other than Artera or an Affiliate, engage in any research,
     development or other activity relating to any product or technology similar
     or  relating  to those  being  studied,  researched,  developed,  produced,
     marketed or sold by Artera prior to or as of the date of termination of any
     consulting  or subsequent  employment  relationship  between  Consultant or
     Principal  and Artera or (b) recruit or solicit any employee of Artera,  or
     otherwise induce such employee:  (i) to leave the employment of Artera;

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     or (ii) to become an employee or otherwise be associated with Consultant or
     Principal or any company or business with which  Consultant or Principal is
     or may become associated in competition with Artera.

          6.  Remedies.  Consultant  and  Principal  acknowledge  and agree that
     Artera's remedy at law for any breach of any of Consultant's or Principal's
     obligations  under Section 4 and/or  Section 5 hereof would be  inadequate,
     and agree and consent that temporary and/or permanent  injunctive relief or
     specific performance, as applicable, may be granted in any proceeding which
     may be brought  to  enforce  any  provision  of Section 4 and/or  Section 5
     hereof,  without the necessity of proof of actual damage, and, furthermore,
     Artera may recover from  Consultant  and Principal all costs and reasonable
     attorneys' fees incurred as a result of a breach of, and in the enforcement
     of, Section 4 and/or Section 5 hereof.

          7. Independent Contractor Status.

               7.1 Independent Contractor. Consultant and Artera acknowledge and
     agree that Consultant is being retained as an independent  contractor,  and
     that  Consultant  shall be responsible for determining the manner and means
     by which Consultant  performs the duties and  responsibilities  assigned to
     Consultant  under  this  Agreement.  Nothing  in this  Agreement  shall  be
     construed to make  Consultant  or Principal an employee or agent of Artera,
     to entitle  Consultant or Principal to receive the benefits of any employee
     benefit plan of Artera,  or to create a joint venture or partnership  among
     the parties.  Consultant shall not make an unauthorized  representation  or
     warranty  concerning the products or services of Artera or commit Artera to
     any agreement or obligation  without the express  authorization of Artera's
     Chief Operating Officer.

               7.2 Taxes.  No payroll or  employment  taxes of any kind shall be
     withheld or paid with respect to payments to Consultant.  Consultant  shall
     be responsible  for the payment of all taxes,  including but not limited to
     any income,  sales or use tax, levied with respect to the services provided
     hereunder by Consultant.

               7.3  Insurance.  No workers'  compensation  insurance has been or
     will be obtained by Artera on account of Consultant or Principal.

               7.4  Indemnification.  Consultant  agrees to indemnify Artera and
     the  Affiliates  against,  and to defend and hold Artera and the Affiliates
     harmless  from,  any  liabilities,  claims,  costs or  expenses  (including
     reasonable  attorneys'  fees)  which  may be made  against  Artera  and the
     Affiliates,  or  incurred  by Artera and the  Affiliates,  by reason of the
     performance  by  Consultant  of  Consultant's  responsibilities  under this
     Agreement.

     8. Enforceability. The failure of NCT or Artera at any time or from time to
time to require  performance of any of Consultant's  or Principal's  obligations
under  this  Agreement  shall in no manner  affect  NCT's or  Artera's  right to
enforce any provision of this Agreement at a subsequent  time, and the waiver by
NCT or Artera of any right arising out of any breach shall not be construed as a
waiver of any right arising out of any subsequent breach.

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     9. Binding  Effect.  The terms and  provisions of this  Agreement  shall be
binding upon Consultant,  Principal, NCT and Artera, and their respective heirs,
executors,  administrators,   successors  and  permitted  assigns.  The  parties
acknowledge  and agree  that the  Affiliates  that are not  signatories  to this
Agreement may enforce the rights granted to NCT and Artera hereunder.

     10. Assignment.

          10.1 Assignment by Consultant or Principal.  This Agreement may not be
assigned by  Consultant  or  Principal  without  the written  consent of NCT and
Artera, which consent shall not be unreasonably withheld.

          10.2  Assignment by NCT or Artera.  This Agreement may not be assigned
by NCT or Artera without the written consent of Consultant and Principal,  which
consent shall not be  unreasonably  withheld,  except that this Agreement may be
assigned by NCT or Artera  (without the consent of  Consultant  or Principal) to
(a) any Affiliate,  (b) any person or entity that acquires all or  substantially
all of the assets of NCT or Artera, respectively,  or of the business unit(s) of
NCT or Artera, respectively, then utilizing any Consultant Inventions or (c) any
person or entity with or into which NCT or Artera, respectively, is consolidated
or merged;  provided,  however, that any such assignment shall be subject to the
terms and conditions of this Agreement and NCT or Artera,  as applicable,  shall
deliver  to  Consultant  a  written  acknowledgement  to that  effect  from  the
assignee.

          10.3  Successors-In-Interest.  The benefits under this Agreement shall
inure to the  benefit of the  respective  successors-in-interest  of the parties
hereto.

     11. Governing Law. This Agreement is being delivered and shall be construed
(both as to  validity  and  performance)  and  enforced in  accordance  with and
governed by the laws of the State of Connecticut  applicable to agreements  made
and to be performed  wholly within such  jurisdiction.  Consultant and Principal
hereby irrevocably agree that any suit, action or other legal proceeding arising
out of this  Agreement  or any of the  transactions  contemplated  hereby may be
brought in any  Connecticut  or United States Federal Court located in the State
of Connecticut.

     12. Notices. All notices under this Agreement shall be in writing and shall
be deemed duly given upon  delivery by hand,  by fax, by  recognized  commercial
courier or by  certified  mail  (return  receipt  requested),  in each case with
postage or delivery charges pre-paid, as follows:

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         (i)    If to Consultant or Principal:

                Spyder Technologies Group, LLC
                147 Leffingwell Avenue
                Waterbury, CT 06710
                Attn:  Jonathan Parrella
                Facsimile:  203-454-3094

         (ii)   If to NCT or Artera:

                NCT Group, Inc./Artera Group, Inc.
                20 Ketchum Street
                Westport, CT 06880
                Attention: Chief Financial Officer
                Facsimile:  203-226-4338

or to such other  address or to such persons as NCT or Artera,  on the one hand,
or Consultant or Principal,  on the other, shall have last designated by written
notice to the other party.

     13. Severability.  In the event any covenant,  condition or other provision
of this Agreement is held to be invalid or  unenforceable by a final judgment of
a court of  competent  jurisdiction,  then  such  covenant,  condition  or other
provision shall be automatically  terminated and performance thereof waived, and
such  invalidity  or  unenforceability  shall in no way  affect any of the other
covenants,  conditions  or  provisions  hereof,  and the  parties  hereto  shall
negotiate  in  good  faith  to  agree  to  such  amendments,   modifications  or
supplements of or to this Agreement or such other appropriate actions as, to the
maximum extent practicable, shall implement and give effect to the intentions of
the parties as reflected herein.

     14.  Survival.  The terms of Sections  3, 4, 5, 6 and 11 shall  survive the
termination of this Agreement.

     15. Miscellaneous.

          15.1 Entire  Agreement;  Release.  This Agreement  contains all of the
terms agreed upon by the parties with respect to the subject  matter  hereof and
there are no  representations  or  understandings  between the parties except as
provided  herein.  The  parties  acknowledge  and  agree  that any and all prior
agreements,  arrangements and  understandings  among the parties with respect to
the subject  matter  hereof,  including,  but not  limited  to, the  arrangement
pursuant to which Spyder has provided to Artera  technical  consulting  services
pertaining  to Artera  Turbo (the "Prior  Consulting  Arrangement"),  are hereby
terminated and shall be of no further force or effect. In addition,  Consultant,
for  itself  and  its   successors   and   assigns,   hereby   irrevocably   and
unconditionally   releases  NCT,  Artera,   the  Affiliates  and  the  officers,
directors,  stockholders,  employees  and agents of all thereof from any and all
obligations, liabilities, damages, claims and expenses now or hereafter existing
that  arise out of or relate to the Prior  Consulting  Arrangement.  For sake of
clarity, that certain  Non-Disclosure

                                       9
<PAGE>

Agreement,  dated as of  October  24,  2002,  between  Artera  and  Spyder  (the
"Non-Disclosure  Agreement")  shall  remain in full force and effect.  Principal
shall be subject to all of the provisions of the  Non-Disclosure  Agreement that
are applicable to Consultant  thereunder,  and neither  Consultant nor Principal
may terminate the Non-Disclosure  Agreement or the obligations described therein
during the Consulting Term.

          15.2  Amendment.  This Agreement may not be amended or modified in any
way  except  by a written  amendment  to this  Agreement  duly  executed  by the
parties.

          15.3  Waiver.  To  the  extent  that,  pursuant  to  Section  5 of the
Non-Disclosure  Agreement,  the written  consent of Artera is  required  for the
consummation  of the  transactions  set forth in this  Agreement,  Artera hereby
grants such consent.

          15.4 Third-Party Licenses. The parties acknowledge and agree that this
Agreement  shall in no way affect the rights and  obligations of Artera pursuant
to that certain License Agreement,  dated as of June 4, 2002, between NCT Group,
Inc. and Artera (as amended,  if applicable) and that certain License Agreement,
dated as of June 4, 2002, between Midcore Software, Inc. and Artera (as amended,
if applicable).

                            [Signature Page Follows]

                                       10
<PAGE>

     IN WITNESS WHEREOF,  the parties have caused this Agreement to be executed,
in multiple counterparts, on the date first above written.

   NCT GROUP, INC.                           ARTERA GROUP, INC.

   By: /s/  Cy E. Hammond                    By: /s/  Cy E. Hammond
       -----------------------------------       -------------------------------
        Cy E. Hammond                             Cy E. Hammond
        Sr. V.P. & Chief Financial Officer        Treasurer

   SPYDER TECHNOLOGIES GROUP, LLC            PRINCIPAL:

   By: /s/  Jinathan Parrella                     /s/  Jonatahn Parrella
       -----------------------------------       -------------------------------
        Jonathan Parrella                         Jonathan Parrella
        President

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

To the extent that the waiver of rights of NCT Group,  Inc.  pursuant to Section
5.2(a)(iii) of that certain License Agreement, dated as of June 4, 2002, between
NCT Group,  Inc. and Artera Group,  Inc. is required for the consummation of the
transactions set forth in Section 3 of the foregoing Consulting  Agreement,  NCT
Group, Inc. hereby grants such waiver, effective as of the date of the foregoing
Consulting Agreement.

NCT GROUP, INC.

By:  /s/  Cy E. Hammond
     -----------------------------------
      Cy E. Hammond
      Sr. V.P. & Chief Financial Officer

To the extent that the waiver of rights of Midcore  Software,  Inc.  pursuant to
Section 5.2(a)(iii) of that certain License Agreement, dated as of June 4, 2002,
between  Midcore  Software,  Inc.  and Artera  Group,  Inc. is required  for the
consummation  of the  transactions  set  forth  in  Section  3 of the  foregoing
Consulting  Agreement,   Midcore  Software,  Inc.  hereby  grants  such  waiver,
effective as of the date of the foregoing Consulting Agreement.

MIDCORE SOFTWARE, INC.

By:  /s/  Cy E. Hammond
     -----------------------------------
     Cy E. Hammond
     Treasurer

                                       11
<PAGE>

                                                                      Schedule A
                                                                      ----------

                             DESCRIPTION OF SERVICES
                             -----------------------

1.   Programming of product interfaces

2.   Development and maintenance of web based applications and web sites

3.   Graphic design and development

4.   Development  and maintenance of ad server  demographic  interfaces and skin
     delivery platforms

5.   Development and delivery of customized customer product builds

6.   Development  and  maintenance  of program  for  tracking  product  language
     translations

                                       12Exhibit 10.11a

THE SECURITIES  REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
CONVERSION  HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.  THE SECURITIES  HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED  OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION  STATEMENT
FOR THE SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR AN OPINION
OF COUNSEL IN FORM,  SUBSTANCE AND SCOPE  REASONABLY  ACCEPTABLE TO THE BORROWER
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT. ANY SUCH SALE,  ASSIGNMENT OR TRANSFER MUST ALSO COMPLY WITH
APPLICABLE STATE SECURITIES LAWS.

                            SECURED CONVERTIBLE NOTE
                                  (No. CTS-___)

[Date]                                                             $

FOR VALUE RECEIVED, NCT GROUP, INC., a Delaware corporation  (hereinafter called
the  "Borrower")  hereby  promises  to pay to the  order of  Carole  Salkind  or
registered       assigns       (the       "Holder")       the       sum       of
___________________________________________  (________) on  ___________,  and to
pay interest on the unpaid principal  balance hereof at twelve percent (12%) per
annum (the  "Ordinary  Interest  Rate") from the date hereof (the "Issue  Date")
until the same becomes due and payable, whether at maturity or upon acceleration
or  otherwise.  Any amount of principal of or interest on this Note which is not
paid when due shall bear  interest  at the rate of five  percent  (5%) above the
Ordinary  Interest Rate (the "Default  Interest Rate") from the due date thereof
until the same is paid.  Interest shall commence accruing on the Issue Date and,
to the extent not  converted in  accordance  with the  provisions  of Article II
below,  shall be payable in arrears on the date the principal  amount in respect
of which it has accrued is paid,  whether at maturity or upon acceleration or by
prepayment or  otherwise.  All payments of principal and interest (to the extent
not converted in accordance with the terms hereof) shall be made in lawful money
of the United States of America.  All payments  shall be made at such address as
the Holder  shall  hereafter  give to the  Borrower  by written  notice  made in
accordance with the provisions of this Note.

The following terms shall apply to this Note:

                                    ARTICLE I

                                  NO PREPAYMENT

     1.1  PREPAYMENT.  This  Note is not  subject  to  prepayment.  This Note is
subject to optional conversion in accordance with Section 2.7 below.

                                   ARTICLE II

            CONVERSION AND PURCHASE RIGHTS; PAYMENT OF EXERCISE PRICE

     2.1  CONVERSION  RIGHT.  The Holder  shall have the right (the  "Conversion
Right") at any time on or prior to the day this Note is paid in full, to convert
at any time all or from  time to time any  part of the  outstanding  and  unpaid
principal  amount of this Note of at least  $50,000,  or such  lesser  amount as
shall remain unpaid at the time of the conversion,  into, at Holder's  election,
(i) fully paid and  non-assessable  shares of common  stock,  par value $.01 per
share, of the Borrower ("Common  Stock"),  at the conversion price determined by
Section  2.2(a)  hereof;  (ii) if Artera  (UK)  Limited  ("Artera")  has made an

<PAGE>

initial public  offering of its common stock,  par value  (pound)1.00 per share,
fully paid and non-assessable  shares of such stock owned by the Borrower,  at a
conversion price equal to the initial public offering price of such stock; (iii)
if  Distributed  Media  Corporation  International  Limited  ("DMCI") has made a
public offering of its common stock, par value (pound)1.00 per share, fully paid
and non-assessable  shares of such stock owned by the Borrower,  at a conversion
price equal to the initial public offering price of such stock;  and (iv) if any
other subsidiary of the Borrower (other than Pro Tech Communications,  Inc.) has
made a public offering of its common stock, fully paid and non-assessable shares
of such stock owned by the Borrower,  at a conversion price equal to the initial
public  offering  price  of  such  stock.  Upon  the  surrender  of  this  Note,
accompanied  by a Notice of Conversion of Secured  Convertible  Note in the form
attached hereto as Exhibit 1, properly completed and duly executed by the Holder
(a "Conversion Notice"),  the Borrower shall issue and, within five (5) business
days after such surrender of this Note with the Conversion Notice, deliver to or
upon the order of the Holder (x) that  number of shares of common  stock for the
portion of the Note converted as shall be determined in accordance  herewith and
(y) a new  Note in the form  hereof  for the  balance  of the  principal  amount
hereof, if any.

     The number of shares of common stock to be issued upon each  conversion  of
this Note shall be determined by dividing (i) the sum of (A) that portion of the
principal  amount  of the Note to be  converted  plus (B) the  "Conversion  Date
Interest" (as defined below), by (ii) the Conversion Price (as defined below) in
effect on the date the  Conversion  Notice is  delivered  to the Borrower by the
Holder.  Conversion Date Interest means the product of (i) the principal  amount
of the Note to be converted,  multiplied by (ii) a fraction (A) the numerator of
which is the number of days elapsed  since the date of issuance of this Note and
(B) the  denominator of which is 365,  multiplied by the Ordinary  Interest Rate
(iii) or, a  fraction  (A) the  numerator  of which is the number of days in the
period  of  time  after  the  occurrence  of an  Event  of  Default  and (B) the
denominator of which is 365, multiplied by the Default Interest Rate.

     2.2 CONVERSION PRICE.

     (a) The per share  "Conversion  Price" for conversion of this Note into the
Borrower's  Common  Stock shall be equal to the greater of: (i) the closing sale
price of the Common  Stock on the  Trading Day (as  defined  below)  immediately
preceding the date of this Note; provided, however, that if, on the date of this
Note and the three Trading Days thereafter  (the  "Window"),  neither the Holder
nor any  Related  Party (as  defined  below)  sells or,  whether  in  writing or
otherwise,  agrees to sell any shares of Common  Stock or any  option,  warrant,
instrument or right to convert into,  exchange for or acquire Common Stock, then
such price shall be reduced to a price equal to the lowest  closing  sale price,
if lower than the price  specified  above in this sentence,  of the Common Stock
during the Window on the  principal  securities  exchange or market on which the
Common Stock is then traded as reported on Bloomberg Financial Markets; and (ii)
the par value of the Common Stock on the date the Conversion Notice is delivered
to the  Borrower by the Holder.  If any closing  sale price of the Common  Stock
during the Window is lower than the price  specified  at the  beginning  of this
Section 2.2(a),  the Holder shall give the Borrower prompt written notice of any
sale of or agreement to sell any Common Stock or option, warrant,  instrument or
right to convert into,  exchange for or acquire  Common Stock made by the Holder
or a Related Party during the Window.  "Trading Day" shall mean any day on which
the Common Stock is traded for any period on the NASDAQ National  Market,  or on
the principal securities exchange or other securities market on which the Common
Stock is then being traded.  "Related Party" shall mean a member of the Holder's
immediate  family,  including spouse (even if separated or not residing with the
Holder) and adult children (even if not residing with the Holder),  or an entity
(other  than the  Borrower)  of which the  Holder or any such  immediate  family
member is an officer,  director or beneficial shareholder (determined under Rule
13d-3 under the  Securities  Exchange Act of 1934, as amended (the "1934 Act")).
The Conversion  Price shall also be subject to equitable  adjustments  for stock
splits, stock dividends, combinations,  recapitalization,  reclassifications and
similar  events.  The Artera and DMCI  "Conversion

                                       2
<PAGE>

Price"  shall be equal to the initial  public  offering  price of such stock and
shall be subject to adjustment as provided in Section 2.2(b) hereof.

     (b) The Conversion  Price for NCT, Artera and DMCI shall also be subject to
equitable   adjustments  for  stock  splits,   stock  dividends,   combinations,
reclassifications and similar events.

     (c) Borrower shall promptly notify each Holder of any adjustment (and event
that  requires  adjustment)  to the  Conversion  Price of NCT,  Artera  and DMCI
pursuant to this Section 2.2.

     2.3 AUTHORIZED  SHARES.  The Borrower  covenants that during the period the
Conversion Right exists,  the Borrower will use its best efforts to reserve from
its  authorized  and  unissued  Common  Stock a  sufficient  number of shares to
provide for the issuance of Common Stock upon the full  conversion of this Note.
The Borrower represents that upon issuance, such shares will be duly and validly
issued,  fully paid and  non-assessable.  The Borrower (i) acknowledges  that it
will  irrevocably  instruct its transfer  agent as soon as  practicable to issue
certificates for the Common Stock issuable upon conversion of this Note and (ii)
agrees that its  issuance of this Note shall  constitute  full  authority to its
officers  and  agents,  who  are  charged  with  the  duty  of  executing  stock
certificates,  to execute  and issue the  necessary  certificates  for shares of
Common Stock upon the  conversion  of this Note.  In the event that a sufficient
number of shares cannot be reserved,  Borrower agrees to use its best efforts to
call an annual meeting of the Borrower's  shareholders  and seek approval for an
increase in the authorized  shares of the Borrower's Common Stock to a number of
shares sufficient to provide for the full conversion of this Note.

     2.4 METHOD OF  CONVERSION.  Except as  otherwise  provided  in this Note or
agreed to by the Holder,  this Note may be  converted  by the Holder in whole at
any time or in part (provided such partial  conversion is at least $50,000) from
time to time by (i) submitting to the Borrower a Conversion Notice (by facsimile
dispatched on the  Conversion  Date and confirmed by U.S. mail or overnight mail
service sent within two Trading Days thereafter) and (ii) surrendering this Note
with the mailed confirmation of the Conversion Notice at the principal office of
the Borrower.  Upon partial exercise of the conversion rights provided hereby, a
new Note containing the same date and provisions as this Note shall be issued by
the  Borrower to the Holder for the  principal  balance of this Note which shall
not have been converted.  This Note has been issued by the Borrower  pursuant to
the exemption from  registration  provided either by Section 4.2 or Regulation D
under the Securities Act of 1933, as amended (the "Act").

     2.5  RESTRICTIONS  ON SHARES.  The  shares of common  stock  issuable  upon
conversion  of this Note may not be sold or  transferred  unless  (i) they first
shall have been registered  under the Act and applicable  state securities laws,
(ii) the Borrower shall have been furnished with an opinion of legal counsel (in
form, substance and scope reasonably  acceptable to Borrower) to the effect that
such sale or transfer is exempt from the registration requirements of the Act or
(iii) they are sold  pursuant to Rule 144 under the Act.  Each  certificate  for
shares of common stock issuable upon  conversion of this Note that have not been
so registered  and that have not been sold pursuant to an exemption that permits
removal of the legend,  shall bear a legend substantially in the following form,
as appropriate:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE
         SECURITIES  HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
         SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION   STATEMENT  FOR  THE   SECURITIES   UNDER  THE
         SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL
         IN FORM,  SUBSTANCE AND SCOPE  REASONABLY  ACCEPTABLE TO THE
         BORROWER THAT REGISTRATION IS NOT REQUIRED UNDER SAID

                                       3
<PAGE>

         ACT OR UNLESS SOLD  PURSUANT TO RULE 144 UNDER SAID ACT. ANY
         SUCH SALE,  ASSIGNMENT  OR  TRANSFER  MUST ALSO  COMPLY WITH
         APPLICABLE STATE SECURITIES LAWS.

     Upon the request of a holder of a  certificate  representing  any shares of
common stock  issuable upon  conversion of this Note,  the Borrower shall remove
the  foregoing  legend  from  the  certificate  or  issue  to such  holder a new
certificate  therefor free of any transfer legend, if (i) with such request, the
Borrower  shall  have  received   either  an  opinion  of  counsel,   reasonably
satisfactory  to the Borrower in form,  substance and scope,  to the effect that
any such legend may be removed  from such  certificate,  or (ii) a  registration
statement under the Act covering such  securities is in effect.  Nothing in this
Note shall affect in any way the Holder's  obligations to comply with applicable
securities laws upon the resale of the securities referred to herein.

     Borrower agrees to use its best efforts to register with the Securities and
Exchange  Commission,  no later  than the end of the term of this  Note  (unless
legally  prohibited  from doing so), a number of shares of Common Stock equal to
the  principal  amount  of this  Note  outstanding  at the time of  registration
divided by the  Conversion  Price with  respect to  Borrower.  Such Common Stock
shall not be used, without permission from the Holder, for any other purposes.

     2.6 EFFECT OF MERGER, CONSOLIDATION,  ETC. If at any time when this Note is
issued and outstanding,  there shall be any merger,  consolidation,  exchange of
shares, recapitalization, reorganization, or other similar event, as a result of
which shares of Common Stock of the Borrower shall be changed into the same or a
different number of shares of another class or classes of stock or securities of
the Borrower or another  entity,  or in case of any sale or conveyance of all or
substantially  all of the assets of the Borrower other than in connection with a
plan of complete liquidation of the Borrower, then the Holder of this Note shall
thereafter  have the right to receive  upon  conversion  of this Note,  upon the
bases and upon the  terms and  conditions  specified  herein  and in lieu of the
shares of Common Stock then issuable upon  conversion of this Note (assuming the
occurrence of the Amendments whether or not that has then occurred), such stock,
securities  or assets  which the Holder  would have been  entitled to receive in
such  transaction  had  this  Note  been  converted  immediately  prior  to such
transaction,  and in any such  case  appropriate  provisions  shall be made with
respect to the rights and  interests  of the Holder of this Note to the end that
the provisions hereof (including, without limitation,  provisions for adjustment
of the Conversion  Price and of the number of shares issuable upon conversion of
this Note) shall  thereafter be  applicable,  as nearly as may be practicable in
relation to any securities or assets  thereafter  deliverable  upon the exercise
hereof. The Borrower shall not effect any transaction  described in this Section
2.6 unless the  resulting  successor or acquiring  entity (if not the  Borrower)
assumes by written  instrument  the  obligations of this Section 2.6. The Holder
will have the right if a merger or consolidation  occurs to force the payment in
full of this Note.

     2.7 CONVERSION  AFTER EVENT OF DEFAULT.  The Holder's right to convert this
Note into stock as  described  above shall apply even if an Event of Default (as
defined in Article III below) shall have occurred.

                                   ARTICLE III

                                EVENTS OF DEFAULT

     If of any of the following  events of default (each, an "Event of Default")
shall occur:

     3.1 FAILURE TO PAY PRINCIPAL OR INTEREST. The Borrower fails (i) to pay the
principal hereof when due, whether at maturity or upon acceleration or otherwise
or (ii) to pay any

                                       4
<PAGE>

installment  of  interest  hereon  when due and, in the case of this clause (ii)
only,  such failure  continues  for a period of five (5) days after the due date
thereof;

     3.2  CONVERSION.  The Borrower fails to issue shares of common stock to the
Holder  upon  exercise by the Holder of the  conversion  rights of the Holder in
accordance  with the terms of this Note,  and any such  failure  shall  continue
uncured for five (5) business  days after the Borrower  shall have been notified
thereof in writing by the Holder;

     3.3 BREACH OF  COVENANT.  The Borrower  breaches  any material  covenant or
other  material  term or  condition  of this Note  (other  than as  specifically
provided in Sections 3.1 and 3.2 hereof), and such breach continues for a period
of ten (10) business days after written  notice thereof to the Borrower from the
Holder;

     3.4  BREACH  OF  REPRESENTATIONS  AND  WARRANTIES.  Any  representation  or
warranty  of  the  Borrower  made  herein  or in  any  agreement,  statement  or
certificate given in writing pursuant hereto or in connection  herewith shall be
false or  misleading  in any material  respect when made and the breach of which
would have a material  adverse  effect on the  Borrower or the  prospects of the
Borrower or a material  adverse effect on the Holder or the rights of the Holder
with respect to this Note or the shares of common stock issuable upon conversion
of this Note;

     3.5  RECEIVER OR TRUSTEE.  The Borrower or any  subsidiary  of the Borrower
shall make an assignment  for the benefit of creditors,  or apply for or consent
to the appointment of a receiver or trustee for it or for a substantial  part of
its  property or  business;  or such a receiver or trustee  shall  otherwise  be
appointed;

     3.6 JUDGMENTS. Any money judgment, writ or similar process shall be entered
or filed  against the Borrower or any  subsidiary  of the Borrower or any of its
property or other assets for more than  $250,000,  and shall  remain  unvacated,
unbonded or unstayed for a period of twenty (20) days unless otherwise consented
to by the Holder;

     3.7  BANKRUPTCY.  Bankruptcy,  insolvency,  reorganization  or  liquidation
proceedings or other  proceedings for relief under any bankruptcy law or any law
for the relief of debtors  shall be instituted by or against the Borrower or any
subsidiary of the Borrower;

     3.8 MATERIAL LOSS OR THEFT.  Material loss or theft,  substantial damage or
destruction or unauthorized  sale or encumbrance of any material  portion of the
Collateral  (as defined in Article IV hereof) in excess of  reasonably  expected
recoveries under insurance policies, or the making of any levy on, or seizure or
attachment  of or  entry  of a  judgment  against  a  material  portion  of  the
Collateral; or

     3.9 REPORTS.  A material  omission or misstatement in any of the Borrower's
previously or hereafter filed reports  pursuant to the  requirements of the 1934
Act or the rules and regulations promulgated thereunder.

     Then,  upon the  occurrence  and  during the  continuation  of any Event of
Default specified in Sections 3.1, 3.2, 3.3, 3.4, 3.6, 3.8 or 3.9 hereof, at the
option of the Holder  hereof,  and upon the  occurrence  of any event of default
specified in Sections 3.5 or 3.7 hereof,  the Borrower  shall pay to the Holder,
in  satisfaction of its obligation to pay the  outstanding  principal  amount of
this Note and accrued and unpaid interest thereon, an amount equal to the sum of
(i) the  product  of (x) the then  outstanding  principal  amount  of this  Note
multiplied  by (y) 110% plus (ii)  accrued  and  unpaid  interest  on the unpaid
principal amount of this Note to the date of payment (the "Default  Amount") and
such Default Amount, together with all other ancillary amounts payable hereunder
shall  immediately  become due and payable,

                                       5
<PAGE>

all without  demand,  presentment  or notice,  all of which hereby are expressly
waived, together with all costs, including,  without limitation,  legal fees and
expenses of  collection,  and the Holder shall be entitled to exercise all other
rights and remedies available at law or in equity.

     If the Borrower  fails to pay the Default  Amount  within five (5) business
days of written  notice  that such  amount is due and  payable,  then the Holder
shall have the right at any time, so long as the Borrower remains in default, to
require the Borrower,  upon written notice,  to immediately issue (in accordance
with the terms of Article II hereof),  in lieu of the Default Amount, the number
of shares of Common Stock of the Borrower equal to the Default Amount divided by
the Conversion Price then in effect.

                                   ARTICLE IV

                                   COLLATERAL

     Borrower  hereby  grants to Holder a security  interest  in all  inventory,
machinery,  equipment,  stocks, bonds, notes, accounts receivable, any rights or
claims that they may have against any other  person,  firm, or  corporation  for
monies, choses in action, any bank accounts, checking accounts,  certificates of
deposit or any financial instrument, patents and intellectual property rights or
any  other  assets  owned  by  Borrower  as of the  date of this  agreement,  or
hereafter acquired.

     Borrower hereby represents that none of the collateral encumbered hereunder
has been sold or  assigned  since the  original  promissory  note of Borrower to
Holder  of  January  26,  1999 and that the lien of the  holder  of this note is
uninterrupted  from January 26, 1999 and shall  continue until this note is paid
or otherwise disposed of in accordance with its terms and conditions.

     All  collateral  rights in  intellectual  property is  subordinated  to the
Borrower's current licenses and future licenses  provided,  that with respect to
future  licenses,  the consent of the Holder must be obtained,  but such consent
will not be unreasonably  withheld.  The patents and intellectual property which
are licensed under the cross license  agreement dated September 27, 1997,  among
NXT plc, New Transducers Limited, being related companies,  the Borrower and NCT
Audio Products,  Inc. (or any successor  agreements) are  specifically  excluded
from the collateral.  There are approximately 20 pieces of intellectual property
in which,  under the cross license  agreement,  Borrower may not, and hence does
not herein, grant a security interest.  In addition,  all agreements between NCT
Audio  Products,  Inc. and the Borrower that relate to such  agreement,  and the
stock of NCT Audio  Products,  Inc.  owned by the Borrower,  shall  similarly be
excluded from the security interest granted in this Note.

     If Borrower does not pay the debt or other obligations under this Note when
due, the  collateral may be sold in order to pay such debt and  obligations,  or
same may be transferred  to the name of the Holder,  as Holder in her discretion
decides.  Holder may inspect the  collateral at all reasonable  times.  Borrower
further agrees that it will do anything reasonably  requested by Holder in order
to make Holder's security interest in the collateral legally effective including
the execution of a UCC-1.

                                    ARTICLE V

                                  MISCELLANEOUS

5.1    FAILURE OR INDULGENCY NOT WAIVER.  No failure or delay on the part of the
Holder in the exercise of any power, right or privilege  hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege  preclude other or further  exercise  thereof or

                                       6
<PAGE>

of any other  right,  power or  privilege.  All  rights  and  remedies  existing
hereunder  are  cumulative  to, and not  exclusive  of,  any rights or  remedies
otherwise available.

5.2   NOTICES.  Notices, demands and other communications  given under this Note
shall be in writing  and shall be deemed to have been given when  delivered  (if
personally  delivered),  on the  scheduled  date of delivery (if  delivered  via
commercial  courier),  three  days  after  mailed  (if  mailed by  certified  or
registered mail, return receipt requested) or when sent by facsimile (if sent by
facsimile  with  evidence of  successful  transmission  retained by the sender);
provided, however, that failure to give proper and timely notice as set forth in
the "with a copy to" provisions below shall not invalidate a notice properly and
timely given to the associated party. Unless another address or facsimile number
is specified by notice hereunder, all notices shall be sent as follows:

If to the Holder:                                    with a copy to:
----------------                                     --------------

--------------------------------------------------------------------------------
Ms. Carole Salkind                                 Peter Rosen, Esq.
18911 Collins Ave., Apt. 2403                      Rosen & Avigliano
Sunny Isles Beach, FL 33160                        431 Route 10 East
                                                   Randolph, NJ  07689
--------------------------------------------------------------------------------
Facsimile:  305-932-2425                           Facsimile:  973-361-1644
--------------------------------------------------------------------------------

If to the Borrower:                                  with a copy to:
------------------                                   --------------

--------------------------------------------------------------------------------
NCT Group, Inc.                                    NCT Group, Inc.
20 Ketchum Street                                  20 Ketchum Street
Westport, CT  06880                                Westport, CT  06880
Attention:  Chief Financial Officer                Attention:  General Counsel
--------------------------------------------------------------------------------
Facsimile:  203-226-4338                               Facsimile:  203-226-4338
--------------------------------------------------------------------------------

     5.3 AMENDMENT  PROVISION.  This Note and any  provision  hereof may only be
amended by an instrument in writing  signed by the Borrower and the Holder.  The
term "Note" and all references  thereto,  as used  throughout  this  instrument,
shall  mean this  instrument  as  originally  executed,  or if later  amended or
supplemented, then as so amended or supplemented.

     5.4  ASSIGNABILITY.  This Note shall be binding  upon the  Borrower and its
successors  and  assigns and shall inure to be the benefit of the Holder and its
successors and assigns;  PROVIDED,  HOWEVER, that so long as no Event of Default
has occurred,  this Note shall only be transferable in whole or in increments of
$100,000 to "Accredited Investors" (as defined in Rule 501(a) under the Act).

     5.5 COST OF COLLECTION. If default is made in the payment of this Note, the
Borrower shall pay the Holder hereof costs of collection,  including  reasonable
attorneys' fees.

     5.6  GOVERNING  LAW AND  JURISDICTION.  This Note shall be  governed by the
internal  laws of the State of  Delaware,  without  regard to  conflicts of laws
principles.  The parties hereto hereby submit to the exclusive  jurisdiction  of
the United States Federal Courts located in the state of New Jersey with respect
to any dispute arising under this Note.

     5.7 DAMAGES SHARES.  The shares of Common Stock that may be issuable to the
Holder  pursuant to Article III hereof  ("Damages  Shares")  shall be treated as
Common Stock issuable upon  conversion of this Note for all purposes  hereof and
shall be subject to all of the limitations and afforded all of the rights of the
other shares of Common Stock  issuable  hereunder.  For purposes of  calculating

                                       7
<PAGE>

interest payable on the outstanding principal amount hereof, amounts convertible
into Damages  Shares  ("Damages  Amounts")  shall not bear  interest but must be
converted  prior to the conversion of any outstanding  principal  amount hereof,
until the outstanding  Damages Amount is zero. Damaged Shares can only be issued
after Borrower has received the written notice that the Holder wishes to receive
such shares.

     5.8  DENOMINATIONS.  At the request of the Holder,  upon  surrender of this
Note, the Borrower  shall promptly issue new Notes in the aggregate  outstanding
principal amount hereof, in the form hereof,  in such  denominations of at least
$50,000 as the Holder shall request.

     IN WITNESS WHEREOF,  Borrower has caused this Note to be signed in its name
by its duly authorized officer as of the date first written above.

                                       NCT GROUP, INC.

                                       By:  /s/  Michael J. Parrella
                                            ------------------------------------
                                            Michael J. Parrella
                                            Chairman and Chief Financial Officer

                                       8
<PAGE>

                                                                       EXHIBIT 1
                                                                       ---------

                NOTICE OF CONVERSION OF SECURED CONVERTIBLE NOTE

TO:  NCT Group, Inc.

         (1) Pursuant to the terms of the attached Secured Convertible Note (the
"Note"), the undersigned  hereby elects to convert $________ principal amount of
the Note into shares of common stock of:

    _____  NCT Group, Inc., a Delaware corporation

    _____  Distributed Media Corporation International Limited, a UK corporation

    _____  Artera (UK) Limited, a UK corporation

    _____  Other public subsidiary (identify: ______________________________)(1)

Capitalized terms used herein and not otherwise defined herein have the
respective meanings provided in the Note.

     (2) Please issue a certificate or certificates  for the number of shares of
common stock into which such principal  amount of the Note is convertible in the
name(s) specified immediately below or, if additional space is necessary,  on an
attachment hereto:

Name:                Carole Salkind       Name:
                     ----------------                          -----------------

Address:                                  Address:
                     ----------------                          -----------------

SS or Tax ID Number:                      SS or Tax ID Number:
                     ----------------                          -----------------

     (3) In the event of partial  exercise,  please reissue an appropriate  Note
for the principal balance which shall not have been converted.

     (4) If the shares of common stock issuable upon conversion of the Note have
not been  registered  under the  Securities Act of 1933, as amended (the "Act"),
the undersigned represents and warrants that (i) such shares of common stock are
being acquired for the account of the undersigned for investment, and not with a
present view to, or for resale in connection with, the distribution thereof, and
that the undersigned has no present  intention of distributing or reselling such
securities,  in each case, other than pursuant to a registration statement under
the Act and (ii) the  undersigned  is an  "Accredited  Investor"  as  defined in
Regulation  D under  the  Act.  The  undersigned  further  agrees  that (A) such
securities  shall not be sold or transferred  unless either (i) they first shall
have been registered  under the Act and applicable state securities laws or (ii)
the Borrower first shall have been furnished with either (x) an opinion of legal
counsel (in form,  substance and scope  reasonably  satisfactory to Borrower) to
the  effect  that  such  sale  or  transfer  is  exempt  from  the  registration
requirements of the Act or (y) satisfactory representations from the undersigned
that the undersigned may immediately  sell all of such securities (to the extent
such  securities  are deemed to have been acquired on the same date) pursuant to
Rule 144 under the Act (or a successor thereto) and (B) the Borrower may place a
legend on the certificate(s) for such securities to that effect and place a stop
transfer restriction in its records relating to such securities.

Date   ___________________              ________________________________________
                                        Signature of  Registered  Holder
                                        (must be signed  exactly as name appears
                                        in  the  Note.  The  signature  mus t be
                                        guaranteed by a member  firm of the  New
                                        York  Stock  Exchange  or  the  National
                                        Association  of Securities Dealers or by
                                        a commercial  bank  or  trust  having an
                                        office in the United States)

--------
(1) May not be Pro Tech Communications, Inc.

                                       9

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