Document:

Exhibit 10.54

                         Spectrum Organic Products, Inc.

                          STANDARDS OF BUSINESS ETHICS

INTRODUCTION
------------

Spectrum Organic Products, Inc. ("Spectrum" or the "Company") is a proven leader
in the natural products industry in several categories and has maintained a
long-term commitment to professional conduct and high ethical standards. The
integrity of our employees (hereinafter referred to as "associates") and the
intent of the Company that all its actions be based upon sound ethical
principles have been a cornerstone of the Company's philosophy. Because we are
comprised of diverse individuals and because we have associates working in
multiple locations, the Company has created the following Standards of Business
Ethics (the "Standards") to provide a clear understanding of the ethical
principles by which we will operate the Company:

1.   To comply in all material respects with all laws and regulations applicable
     to our business and to maintain the highest standards of ethical conduct in
     the operation of our business and in our dealings with associates,
     customers and competitors;

2.   To treat all applicants and associates with dignity and respect and to
     provide equal employment opportunities, based on bona fide job
     qualifications, without regard to race, color, religion, national origin,
     gender, sexual orientation, age, physical or mental disability, marital
     status, family care status, or veteran status; recognizing that the Company
     is made up of individuals - each of whom has different capabilities and
     potentials - all of which are necessary for the success of the Company;

3.   To take prompt action to address associate questions, concerns, or
     complaints regarding unsafe work conditions, discrimination, or any other
     matter involving the terms and conditions of their employment, and to
     provide associates with information relative to the process of voicing
     questions or concerns;

4.   To continually plan for the future so that we can shape our destiny instead
     of letting events overtake us; making all decisions in light of what is
     right for the good of the whole company, rather than what is expedient in a
     given situation;

5.   To recognize that our customers, suppliers, associates, shareholders and
     the communities that we serve are the reason for our existence and that we
     maintain a focus on all of our constituencies as we run our business in an
     ethical and forthright manner; and

6.   To use the highest ethical standards to guide our business dealings to
     ensure that we are always proud to represent the Company and to discharge
     the responsibilities of corporate and individual citizenship in a manner
     that earns the respect of our industry and the community.

As individuals and as a corporate entity, we must endeavor to uphold these
standards so that we are respected as individuals and as an organization. It is
important that these high standards be observed in all contacts made by our
associates with customers, suppliers and the general public, as well as with
fellow associates.

Associates of the Company have a responsibility to always act in the best
interests of the Company. Associates must maintain the highest degree of
integrity to ensure the Company's ability to conduct its business at the same
high level. Specifically, associates have an obligation to avoid any
involvements, where the possibility of some private or personal advantage or
gain could produce a conflict between self-interest and the interest of the
Company.

In an effort to inform all Spectrum associates of Company policy with regards to
business ethics, the Company has created the following guidelines to ensure a
full understanding of the Company's standards of business ethics. These
guidelines are not in lieu of any laws or regulations that pertain to certain
activities the Company is involved in. Spectrum requires compliance in all
material respects with all applicable laws and regulations everywhere that the
Company does business.

<PAGE>

I.   CONFLICTS OF INTEREST

     Associates of Spectrum should avoid situations where their personal
     interests may conflict with the interests of the Company. Conflicts of
     interest arise where an individual's position or responsibilities with the
     Company present an opportunity for personal gain apart from the normal
     rewards of employment. They also arise where an associate's personal
     interests are inconsistent with those of the Company and create conflicting
     loyalties. Such conflicting loyalties may cause an associate to compromise
     their responsibilities to the Company for personal gain.

     As it is not possible to detail every situation where conflicts of
     interests may arise, the Company has developed a specific policy with
     regard to Insider Trading, Gifts and Confidentiality.

     The following policies cover some of the areas that have a significant
     potential for conflict:

     A. Speculation in Spectrum Securities and Misuse of Inside Information

        1.      Associates who know of any material fact about the Company that
                has not been disclosed to the public (commonly known as "insider
                information"), are prohibited by law from taking advantage of
                any purchaser or seller of the Company's securities who is not
                privy to such information. Associates may not engage in any
                transaction in the Company's securities based upon such
                information until such information is disclosed to the public.
                In addition, associates may not provide insider information to
                others. Misuse of insider information may result in civil and
                criminal penalties.

                Generally a material fact is one that a prudent investor would
                consider important in reaching a decision to buy or sell the
                security involved. Examples of material facts are: knowledge of
                significant new products or discoveries, unexpected changes in
                sales or earnings figures, major contracts and plans for stock
                splits, acquisitions or mergers.

                Restrictions discussed in this Section also apply to insider
                information relating to the Company's customers and suppliers.

                Associates who have questions regarding the sale or purchase of
                the Company securities under circumstances where these laws and
                regulations might apply should consult with the Company's Chief
                Financial Officer.

                All associates will receive a separate document regarding the
                Company's insider trading policy.

        2.      Associates should not disclose data or information of a
                confidential nature concerning the Company or its products to
                anyone not employed by the Company, except where such
                information is disclosed in the course of an associate's normal
                business activities and the Company has obtained from the
                recipient a written undertaking to protect such confidential
                information from misuse or unauthorized disclosure. Disclosure
                of confidential information can be harmful to the Company and
                could be the basis for legal action against both the Company and
                the associate disclosing the information.

        3.      An associate should not acquire any interest in real estate or
                in any business, which he knows the Company to be interested in
                acquiring.

<PAGE>

        B. Personal Financial Interest

           Each associate should avoid any outside financial interest that might
           influence his decisions or actions as a Company employee. Such
           outside interest could include, among other things:

           1.         A personal or family interest in an enterprise that has
                      business relations with the Company, either as a customer
                      or a supplier, if such financial interest represents a
                      material part of the associate's net worth or income.

           2.         An investment in another business that competes with the
                      Company, if the investment represents a material part of
                      the income or net worth of the associate. Investment in a
                      mutual fund or similar passive investment entity, which in
                      turn maintains an investment in another business that
                      competes with the Company, is allowed so long as the
                      Associate has no management control over the passive
                      entity.

     C.   Outside Activities

          Associates should avoid outside employment or activities that would
          impair effective performance of their responsibilities to the Company,
          either because of excessive demands on their time or because of the
          nature of the employment or activity. Any Associate who desires to
          practice the trade or profession for which he was hired by the Company
          outside the scope of his Company employment must obtain prior written
          approval from the Company's Chief Executive Officer.

II.  COMPETITIVE PRACTICES

     The Company believes that fair competition is fundamental to the
     continuation of the free enterprise system.

     A.   Fair Competition

          Our policy is to provide the best possible products to our customers
          and to sell on the merits of our own products - not by disparaging
          competitors or their products.

          Disparaging remarks include not only false statements, but also
          information that is misleading or simply unfair. Even factually
          correct material can be disparaging, if it is derogatory and
          irrelevant to the particular sales situation. This includes casting
          doubt on a competitor's capabilities or making unfair comparisons, up
          to and including, the use of subtle hints or innuendoes in this
          regard.

     B.   Competitive Intelligence

          No associate may attempt, through improper means, to acquire a
          competitor's trade secrets or other proprietary or confidential
          information. This includes lists of customers or information about
          company facilities, capacities, technical developments or operations.
          Such improper means include, among other things, industrial espionage,
          hiring competitors' employees with the sole objective of obtaining
          confidential information, urging competitive personnel or customers to
          disclose confidential information or any other approach that is not
          open and above board.

          Confidential information may be obtained only if its owner clearly
          consents to its disclosure and if the Company's receipt of this
          information has been properly approved.

     C.   Competitive Agreements

          The Company will not enter into arrangements that restrict its ability
          to compete with other businesses or the ability of any other business
          organization to compete fairly with the Company.

          No associate may enter into or discuss any arrangement or
          understanding with a third party that restricts the Company's pricing
          policies, terms upon which its products may be sold to others, the
          number and type of products manufactured or sold, or that which might
          in any way be construed as dividing customers or sales territories
          with a competitor.

<PAGE>

III. CONFIDENTIALITY OF COMPANY MATERIAL

     Associates may, in the course of their employment, come into contact with
     customer lists, electronic data and other information regarding the
     Company's pricing, operations and business that is of a confidential and
     proprietary nature not readily available to competition, outside parties or
     the general public. Associates have an obligation to maintain such
     information in strict confidence both during and after employment with the
     Company. Likewise, all equipment, notebooks, documents, files, books and
     other materials, which the associate may prepare, use or possess during the
     course of his employment, are property of the Company and may not be taken
     or used after employment terminates.

IV.  DEALINGS WITH SUPPLIERS

     The Company is a valuable customer for many suppliers. People who want to
     do business or continue to do business with the Company must understand
     that all purchases by the Company will be made exclusively on the basis of
     price, quality, service and suitability to the Company's needs.

     A.   Reciprocity

          Reciprocity is a harmful practice and a hindrance to assuring purchase
          of the best available materials or services at the lowest possible
          prices. A supplier of goods or services to the Company will not be
          asked to buy goods and services from the Company in order to become or
          to continue as a supplier.

          Associates should not attempt to influence the Company's suppliers to
          purchase goods or services from the Company or from any customer of
          the Company in order to get its business. In arriving at purchasing
          decisions, associates should not favor firms who are customers of the
          Company.

     B.   "Kickbacks" and Rebates

          Company purchases of goods or services must not lead to the Company's
          associates or their families receiving personal kickbacks or rebates.
          Associates or their families must not accept any form of undisclosed
          payment or favor.

     C.   Receipt of Gifts and Entertainment

          Even when gifts and entertainment are exchanged out of the purest
          motives of personal friendship, they may be misunderstood. They may
          appear as attempts to bribe an associate to direct the Company's
          business to a particular supplier. To avoid both the reality and the
          appearance of improper relations with suppliers or potential
          suppliers, the following standards apply to the receipt of gifts or
          entertainment by Company associates:

          1.   Gifts

               Associates may not solicit gifts, gratuities or any other
               personal benefit or favor of any kind from any supplier or
               potential supplier. Gifts include not only merchandise and
               products, but they also include personal services, theater
               tickets and tickets to sporting events. Associates may not accept
               gifts of money.

<PAGE>

               Associates may accept unsolicited non-money gifts provided:

               (a)  they are items of nominal intrinsic value - $100 or less, or

               (b)  they are advertising or promotional materials, clearly
                    marked with company or brand names.

               The Chief Executive Officer or Chief Financial Officer should be
               consulted where gifts of more than $100 in value are offered to
               any associate by a company with which Spectrum does business.

          2.   Entertainment

               Associates should not encourage or solicit entertainment from any
               individual or company with which Spectrum does business.
               Entertainment includes, but is not limited to, activities such as
               dinner parties, theater parties, or sporting events.

               From time to time, associates may accept unsolicited
               entertainment, but only under the following conditions:

               (a)  The entertainment occurs infrequently;

               (b)  It involves reasonable, not lavish, expenditures; and

               (c)  The entertainment takes place in settings that are
                    appropriate and fitting to associates and their hosts.

          3.   "Reasonableness" of gifts and or entertainment shall be defined
               by the value of such gifts and/or entertainment. Gifts of more
               than $100 in value, entertainment that exceeds "usual"
               hospitality or common courtesies usually associated with accepted
               business practice, shall be considered unreasonable and therefore
               not acceptable.

V.   DEALINGS WITH CUSTOMERS, SUPPLIERS, POTENTIAL CUSTOMERS & SUPPLIERS

     Associates should deal with customers, suppliers, and potential customers
     or suppliers honestly and fairly. Bribes, kickbacks, under-the-table
     payments or other improper favors to customers, suppliers or their
     representatives are not to be given or accepted. There should be no strings
     attached to doing business with the Company.

VI.  DEALINGS WITH PUBLIC OFFICIALS

     Laws and regulations require certain associates to be in contact with
     public officials on a wide variety of matters. Associates with these
     contacts have a special responsibility to uphold the Company's reputation.
     No associate shall make any form of payment, direct or indirect, to any
     public official as inducement to having a law or regulation enacted or
     defeated.

     From time to time, associates may entertain public officials, but only
     under the following circumstances:

     1.   The entertainment is not solicited by the public official;

     2.   The entertainment occurs infrequently;

     3.   It does not involve lavish expenditures; and

     4.   The setting and type of entertainment is appropriate and fitting to
          our associates and the public official.

VII. APPLICATION OF THE FOREIGN CORRUPT PRACTICES ACT

     The Company requires full compliance with the Foreign Corrupt Practices Act
     (FCPA) by all of its associates, consultants, agents, distributors, and
     resellers. The anti-bribery and corrupt payment provisions of the FCPA make
     illegal any corrupt offer, payment, promise to pay, or authorization to pay
     any money, gift, or anything of value to any foreign official, or any
     foreign political party, candidate or official, for the purpose of:

<PAGE>

          1.   Influencing any act, or failure to act, in the official capacity
               of that foreign official or party

          2.   Inducing the foreign official or party to use influence to affect
               a decision of a foreign government or agency, in order to obtain
               or retain business for anyone, or direct business to anyone.

          All Spectrum associates are responsible for FCPA compliance and the
          procedures to ensure FCPA compliance. All managers and supervisory
          personnel are expected to monitor continued compliance with the FCPA
          to ensure compliance with the highest moral, ethical and professional
          standards of the Company.

VIII.     POLITICAL ACTIVITIES AND CONTRIBUTIONS

          No assets of the Company--including associate's work time, use of
          company premises, use of company equipment, or direct monetary
          payments--may be contributed to any political candidate, political
          actions committees (a.k.a. "PACs"), or political party without the
          express written permission of the Chairman of the Board or Chief
          Executive Officer. Of course, associates may participate in any
          political activities of their choice on an individual basis, with
          their own money and on their own time.

IX.       INTEGRITY OF RECORDS AND FINANCIAL REPORTS

          The integrity of the Company's record keeping and reporting systems
          shall be maintained at all times. Associates are forbidden to use,
          authorize, or condone the use of "off-the-books" bookkeeping, secret
          accounts, unrecorded bank accounts, slush funds, falsified books or
          any other devices that could be utilized to distort records or reports
          of the Company's true operating results and financial condition.

 X.       USE OF AGENTS AND NON-EMPLOYEES

          Associates shall not use agents or others to circumvent the law or to
          engage in practices that run contrary to the Company's Standards of
          Business Ethics.

XI.       CONTINUANCE OF EXISTING PERSONNEL POLICIES, RULES AND PERFORMANCE
          STANDARDS

          The Company has personnel policies, rules and standards for associate
          performance that continue in force. These Standards of Business Ethics
          are intended to supplement and amplify those established personnel
          policies, guidelines and standards. The Company is committed to
          building an environment of mutual respect that promotes teamwork
          through honesty, fairness and decency. Our workplace is highly
          challenging and demands a strong commitment to excellence.

          A.   The best team is also a diverse team. Recruitment and retention
               of a diverse associate workforce allows the Company to tap into
               the vast resources that all associates can offer. Our ability to
               manage our own diversity and to respond to a diverse marketplace
               is vital to the success and future of our business. Valuing the
               differences that each associate brings to our workplace allows
               associates to produce their best work for themselves, for our
               customers and for our shareholders.

               Spectrum fully supports equal opportunity in all facets of its
               business. Discrimination of any kind will not be tolerated. No
               associate, applicant for employment or customer will be treated
               in a discriminatory manner because of his or her race, color,
               religion, national origin, gender, sexual orientation, age,
               physical or mental disability, family care status, marital status
               or veteran status.

<PAGE>

          B.   The Company is committed to providing a workplace that is safe
               and healthy. Harassment of associates for any reason, including
               sexual harassment will not be tolerated. Not only is it against
               the law, but it also devalues its victims, decreases productivity
               and damages morale.

               Any Spectrum associate who feels he or she has been discriminated
               against or harassed, or feels he or she has witnessed such
               action, should promptly report the incident to his or her manager
               or the Human Resources Manager. Managers shall take immediate
               action once a complaint has been made known to them and shall
               work with the human resources department to investigate and
               address all complaints.

               Appropriate, prompt, corrective and disciplinary action will be
               taken, if improper conduct has occurred.

XII.      STANDARDS COMPLIANCE

          A.   Initial Distribution

               1.   Current associates designated to receive these Standards of
                    Business Ethics will receive their copies immediately after
                    publication.

               2.   Future associates designated to receive these Standards of
                    Business Ethics will receive their copies at the time of
                    hire.

          B.   Acknowledgement

               Each designated associate will:

               1.   Become thoroughly familiar with the Standards.

               2.   Resolve any doubts or questions about the Standards with his
                    or her manager.

               3.   Inform his or her manager of any existing holdings or
                    activities that might be or may appear to be at variance
                    with the Standards.

               4.   Prepare a written disclosure of such information upon
                    request of his or her manager.

               5.   Upon request of his or her manager, correct any variance
                    with these Standards to bring holdings and activities into
                    full compliance.

               6.   Sign the verification and turn it in to his or her manager,
                    who will make it a part of the associate's permanent
                    employment records.

          C.   Maintaining Compliance

               1.   Each associate shall read and develop an understanding of
                    the Standards and shall abide by them.

               2.   Managers will develop awareness on the part of their
                    associates of the importance of adhering to the Standards.

               3.   Designated associates will annually acknowledge in writing
                    their understanding of the Standards and their compliance
                    with them.

               4.   Associates will inform their managers of any situation or
                    activity that might be, or appears to be, at variance with
                    the Standards.

<PAGE>

          D.   Audit of Compliance

               Regular audits of the Company may include procedures to test
               compliance with the Standards of Business Ethics.

XIII.     SPECIAL ETHICS OBLIGATIONS FOR ASSOCIATES WITH FINANCIAL REPORTING
          RESPONSIBILITIES

          As a public company, it is of critical importance that Spectrum's
          filings with the Securities and Exchange Commission be accurate and
          timely. Depending on their position with the Company, associates may
          be called upon to provide information to assure that the Company's
          public reports are complete, fair and understandable. Spectrum expects
          all of its personnel to take this responsibility very seriously and to
          provide prompt and accurate answers to inquiries related to the
          Company's public disclosure requirements.

          The Finance Department bears a special responsibility for promoting
          integrity throughout the organization, with responsibilities to
          stakeholders both inside and outside of the Company. The Chief
          Executive Officer, Chief Financial Officer and the Finance Department
          personnel have a special role both to adhere to these principles
          themselves and also to ensure that a culture exists throughout the
          Company as a whole that ensures the fair and timely reporting of
          Spectrum's financial results and condition.

          Because of this special role, the Chief Executive Officer, Chief
          Financial Officer and all the members of Spectrum's Finance Department
          are bound by the following Financial Officer Code of Ethics, and by
          accepting the Code of Ethics, each agrees that he or she will:

          1.   Act with honesty and integrity, avoiding actual or apparent
               conflicts of interest in personal and professional relationships.

          2.   Provide information that is accurate, complete, objective,
               relevant, timely and understandable to ensure full, fair,
               accurate, timely, and understandable disclosure in reports and
               documents that Spectrum files with, or submits to, government
               agencies and in other public communications.

          3.   Comply with rules and regulations of federal, state, provincial
               and local governments, and other appropriate private and public
               regulatory agencies.

          4.   Act in good faith, responsibly, with due care, competence and
               diligence, without misrepresenting material facts or allowing
               one's independent judgment to be subordinated.

          5.   Respect the confidentiality of information acquired in the course
               of one's work except when authorized or otherwise legally
               obligated to disclose. Confidential information acquired in the
               course of one's work will not be used for personal advantage.

          6.   Share knowledge and maintain skills important and relevant to
               shareholder's needs.

          7.   Proactively promote and be an example of ethical behavior among
               peers in the work environment and the community.

          8.   Maintain responsible use of and control over all assets and
               resources employed or entrusted.

          9.   Promptly report to the Chairman of the Audit Committee any
               conduct that the individual believes to be a violation of law or
               business ethics or of any provision of the Code of Ethics,
               including any transaction or relationship that reasonably could
               be expected to give rise to such a conflict.

<PAGE>

XIV.      STANDARDS VIOLATIONS

          Associates should immediately report any suspected violation of the
          Standards to the Chief Executive Officer, Chief Financial Officer or
          Human Resources Manager. Such individuals receiving such reports
          should promptly and thoroughly investigate them and consult with the
          Chief Executive Officer or Chief Financial Officer. If a violation is
          discovered, appropriate corrective action shall be taken immediately.

          The Company also maintains a "whistleblower" feature for any associate
          to anonymously report any suspected violation of the Standards. The
          whistleblower feature consists of a voice-mail box on the Company
          phone system (extension 3252) that is accessible only by the Chairman
          of the Audit Committee of the Board of Directors. Any associate may
          confidentially leave a message in that mail box on any issue or
          concern whatsoever, which will trigger an internal investigation. If
          that investigation leads to the discovery of a Standards violation,
          appropriate corrective action will be taken immediately. There will
          never be any recrimination of any kind whatsoever against any
          associate who utilizes the Company's whistleblower feature.

XV.       UPDATING

          The Company will periodically review the Standards and make
          appropriate additions or changes. Associates will be fully informed of
          all changes to the Standards.<PAGE>

                                                                    EXHIBIT 10.2

                              RESTATED AND AMENDED
                           LOAN AND SECURITY AGREEMENT

                                      among

                           THE A CONSULTING TEAM, INC.

                                       and

                     INTERNATIONAL OBJECT TECHNOLOGY, INC.,

                                       and

                          KELTIC FINANCIAL PARTNERS, LP

                              Dated: March 23, 2004

<PAGE>

                                TABLE OF CONTENTS
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RECITALS ........................................................................................................1

AGREEMENT .......................................................................................................1

1.       DEFINITIONS.............................................................................................1

         1.1.     "Account Debtor"...............................................................................1

         1.2.     "Advance"......................................................................................1

         1.3.     "Affiliate.....................................................................................1

         1.4.     "Banking Day"..................................................................................2

         1.5.     "Blocked Account"..............................................................................2

         1.6.     "Borrower".....................................................................................2

         1.7.     "Borrowers"....................................................................................2

         1.8.     "Borrower's knowledge".........................................................................2

         1.9.     "Borrowing Base Certificate"...................................................................2

         1.10.    "Capital Expenditure"..........................................................................2

         1.11.    "Code".........................................................................................2

         1.12.    "Collateral"...................................................................................2

         1.13.    "Compliance Certificate".......................................................................2

         1.14.    THIS SECTION INTENTIONALLY OMITTED.............................................................3

         1.15.    "Core EBITDA"..................................................................................3

         1.16.    "Corporate/LLC Guarantor"......................................................................3

         1.17.    "Corporate/LLC Guaranty".......................................................................3

         1.18.    "Deposit Account"..............................................................................3

         1.19.    "Default"......................................................................................3

         1.20.    "Eligible Receivables".........................................................................4

         1.21.    "Environment"..................................................................................6

         1.22.    "Environmental Laws"...........................................................................6

         1.23.    "Equipment"....................................................................................6

         1.24.    "ERISA"........................................................................................6

         1.25.    "Events of Default"............................................................................6

         1.26.    "Fiscal Year"..................................................................................6

         1.27.    "General Intangibles"..........................................................................7
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         1.28.    "Generally Accepted Accounting Principles".....................................................7

         1.29.    "Governmental Rules"...........................................................................7

         1.30.    "Guarantors"...................................................................................7

         1.31.    "Guaranty".....................................................................................7

         1.32.    "Indebtedness".................................................................................7

         1.33.    "Individual Guarantor".........................................................................7

         1.34.    "Individual Guaranty"..........................................................................7

         1.35.    "Inventory"....................................................................................8

         1.36.    "Investment Property"..........................................................................8

         1.37.    "LIBOR"........................................................................................8

         1.38.    "Lien".........................................................................................8

         1.39.    "Loan Documents"...............................................................................8

         1.40.    "Loans"........................................................................................8

         1.41.    "Lockbox"......................................................................................8

         1.42.    "Material Adverse Effect"......................................................................8

         1.43.    "Maximum Facility".............................................................................8

         1.44.    "Notice of Borrowing"..........................................................................8

         1.45.    "Obligations"..................................................................................9

         1.46.    "Other Collateral".............................................................................9

         1.47.    "Permitted Zielczynski Debt"...................................................................9

         1.48.    "Permitted Seller Debt"........................................................................9

         1.49.    "Person".......................................................................................9

         1.50.    "Plan".........................................................................................9

         1.51.    "Prime Rate"...................................................................................9

         1.52.    "Property".....................................................................................9

         1.53.    "Receivables".................................................................................10

         1.54.    "Reconciliation Report".......................................................................10

         1.55.    "Reportable Event"............................................................................10

         1.56.    "Revolving Advances"..........................................................................10

         1.57.    "Revolving Loan"..............................................................................10

         1.58.    "Revolving Note"..............................................................................10

         1.59.    "Solvent".....................................................................................10

         1.60.    "Stock Purchase Agreement"....................................................................10
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         1.61.    "Subordination Agreements"....................................................................10

         1.62.    "Termination Date"............................................................................11

         1.63.    "This Agreement"..............................................................................11

         1.64.    "UCC".........................................................................................11

         1.65.    "Validity/Support Guarantor"..................................................................11

         1.66.    "Validity/Support Guaranty"...................................................................11

         1.67.    "Voting Stock"................................................................................11

2.       THE REVOLVING LOAN ....................................................................................12

         2.1.     Revolving Advances............................................................................12

         2.2.     Overline......................................................................................12

         2.3.     Reserves......................................................................................12

         2.4.     Manner of Borrowing...........................................................................12

         2.5.     Evidence of Borrower's Obligations............................................................13

         2.6.     Payments......................................................................................15

         2.7.     Collections/Balance/Statements/etc............................................................15

         2.8.     Payment on Termination Date...................................................................16

         2.9.     Borrowers' Absolute Guaranty Obligations......................................................16

3.       LENDER'S COMPENSATION..................................................................................19

         3.1.     Interest on Revolving Advances; Costs and Expenses............................................19

         3.2.     Commitment and Closing Fee....................................................................19

         3.3.     Facility Fee..................................................................................19

         3.4.     Collateral Management Fee.....................................................................19

         3.5.     Field Examination Fees........................................................................19

         3.6.     Prepayment Premium............................................................................20

         3.7.     Computation of Interest and Fees..............................................................20

         3.8.     Payment of Interest and Fees..................................................................20

4.       APPLICATION OF PROCEEDS................................................................................20

5.       SECURITY INTEREST IN COLLATERAL........................................................................20

6.       RECOURSE TO SECURITY...................................................................................21

7.       INDUCING REPRESENTATIONS...............................................................................21

         7.1.     Organization and Qualifications...............................................................21

         7.2.     Corporate Name and Address....................................................................22

         7.3.     Corporate Structure...........................................................................22

         7.4.     Legally Enforceable Agreement.................................................................22

         7.5.     Solvent Financial Condition...................................................................22
</TABLE>

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         7.6.     Financial Statements..........................................................................22

         7.7.     Joint Ventures................................................................................22

         7.8.     Real Estate...................................................................................22

         7.9.     Patents, Trademarks, Copyrights and Licenses..................................................23

         7.10.    Existing Business Relationship................................................................23

         7.11.    Investment Company Act: Federal Reserve Board Regulations.....................................23

         7.12.    Tax Returns...................................................................................24

         7.13.    Litigation....................................................................................24

         7.14.    Receivables Locations.........................................................................24

         7.15.    Inventory Locations...........................................................................24

         7.16.    Equipment List and Locations..................................................................24

         7.17.    Title Liens...................................................................................24

         7.18.    Existing Indebtedness.........................................................................25

         7.19.    ERISA Matters.................................................................................25

         7.20.    O.S.H.A.......................................................................................25

         7.21.    Environmental Matters.........................................................................25

         7.22.    Labor Disputes................................................................................25

         7.23.    Intellectual Property.........................................................................26

         7.24.    Location of Bank and Securities Accounts......................................................26

         7.25.    Compliance With Laws..........................................................................26

         7.26.    No Other Violations...........................................................................26

         7.27.    Survival of Representations and Warranties....................................................27

  8.     FINANCIAL STATEMENTS AND INFORMATION;CERTAIN NOTICES TO LENDER.........................................27

         8.1.     Borrowing Base Certificate....................................................................27

         8.2.     Monthly Reports...............................................................................27

         8.3.     Annual Financial Statements...................................................................27

         8.4.     Financial Statements..........................................................................28

         8.5.     Tax Returns...................................................................................28

         8.6.     Projections...................................................................................28

         8.7.     Customer Lists................................................................................28

         8.8.     Insurance.....................................................................................28

         8.9.     Notice of Event of Default and Adverse Business Developments..................................28
</TABLE>

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         8.10.    Other Information.............................................................................29

9.       ACCOUNTING.............................................................................................29

10.      RESTATEMENT AND REPLACEMENT OF 2002 LOAN AGREEMENT.....................................................30

11.      WARRANTIES WITH RESPECT TO RECEIVABLES.................................................................30

12.      SPECIAL PROVISIONS WITH RESPECT TO RECEIVABLES AND RELATED MATTERS.....................................31

         12.1.    Confirmatory Written Assignments..............................................................31

         12.2.    Notice of Certain Events......................................................................31

         12.3.    Communication with Account Debtors............................................................32

13.      SPECIAL PROVISIONS RELATING TO EQUIPMENT...............................................................32

         13.1.    Equipment List................................................................................32

         13.2.    Borrower's Obligations With Respect to Equipment..............................................32

14.      AFFIRMATIVE COVENANTS..................................................................................32

         14.1.    Business and Existence........................................................................32

         14.2.    Trade Names...................................................................................32

         14.3.    Transactions with Affiliates..................................................................32

         14.4.    Taxes.........................................................................................33

         14.5.    Compliance with Laws..........................................................................33

         14.6.    Maintain Properties: Insurance................................................................33

         14.7.    Business Records..............................................................................33

         14.8.    Litigation....................................................................................33

         14.9.    Damage or Destruction of Collateral...........................................................34

         14.10.   Name Change...................................................................................34

         14.11.   Access to Books and Records...................................................................34

         14.12.   Solvent.......................................................................................34

         14.13.   Compliance With Environmental Laws............................................................34

         14.14.   Compliance with ERISA and other Employment Laws...............................................34

         14.15.   Proceeds of Collateral........................................................................34

         14.16.   Delivery of Documents.........................................................................34

         14.17.   United States Contracts.......................................................................35

         14.18.   Accounting System.............................................................................35

         14.19.   Validity/Support Guaranty.....................................................................35

         14.20.   TACT Software.................................................................................35

15.      NEGATIVE COVENANTS.....................................................................................35

         15.1.    Indebtedness..................................................................................35
</TABLE>

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         15.2.    Mergers; Consolidations; Acquisitions.........................................................35

         15.3.    Sale or Disposition...........................................................................36

         15.4.    Defaults......................................................................................36

         15.5.    Limitations on Liens..........................................................................36

         15.6.    Dividends and Distributions...................................................................37

         15.7.    Borrowers' Names and Offices..................................................................37

         15.8.    Sales Terms...................................................................................37

         15.9.    Fiscal Year...................................................................................37

         15.10.   Intentionally omitted.........................................................................37

         15.11.   Intentionally omitted.........................................................................37

         15.12.   Guaranties; Contingent Liabilities............................................................37

         15.13.   Removal of Collateral.........................................................................38

         15.14.   Transfer of Notes or Accounts.................................................................38

         15.15.   Settlements...................................................................................38

         15.16.   Modification of Governing Documents...........................................................38

         15.17.   Change of Business............................................................................38

         15.18.   Change of Accounting Practices................................................................38

         15.19.   Inconsistent Agreement........................................................................38

         15.20.   Loan or Advances..............................................................................38

         15.21.   Investments...................................................................................39

         15.22.   Intentionally Omitted.........................................................................39

         15.23.   Core EBITDA...................................................................................39

         15.24.   Capital Expenditures..........................................................................39

         15.25.   T3 Media, Inc. Investments....................................................................40

         15.26.   Stock Purchase Agreement......................................................................40

         15.27.   Permitted Zielczynski Debt....................................................................40

16.      FURTHER RIGHTS OF LENDER...............................................................................40

         16.1.    Lender's Right to Take Certain Actions........................................................41

         16.2.    Lender's Right to Perform Either Borrower's Obligations.......................................41

         16.3.    Lender's Right of Set-Off.....................................................................41

17.      CONDITIONS PRECEDENT; CLOSING..........................................................................42

         17.1.    Conditions Precedent..........................................................................42

         17.2.    Conditions to All Extensions of Credit........................................................43
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18.      TERM...................................................................................................43

         18.1.    Revolving Loan Availability...................................................................43

         18.2.    Voluntary Termination.........................................................................43

19.      EVENTS OF DEFAULT......................................................................................43

         19.1.    Defaults......................................................................................43

         19.2.    Obligations Immediately Due...................................................................45

         19.3.    Continuation of Security Interests............................................................45

20.      REMEDIES OF LENDER.....................................................................................46

         20.1.    Rights Under UCC..............................................................................46

         20.2.    Collections; Modification of Terms............................................................47

         20.3.    Notification of Account Debtors...............................................................47

         20.4.    Insurance.....................................................................................47

         20.5.    Waiver of Rights by Borrowers.................................................................47

         20.6.    Lender's Rights...............................................................................47

21.      GENERAL PROVISIONS.....................................................................................48

         21.1.    Rights Cumulative.............................................................................48

         21.2.    Successors and Assigns........................................................................48

         21.3.    Notice........................................................................................48

         21.4.    Strict Performance............................................................................49

         21.5.    Amendments....................................................................................49

         21.6.    Waiver........................................................................................49

         21.7.    Conflict of Laws..............................................................................49

         21.8.    Expenses......................................................................................49

         21.9.    Reimbursements Charged to Revolving Loan......................................................50

         21.10.   Waiver of Right to Jury Trial.................................................................50

22.      INDEMNIFICATION BY BORROWER/WAIVER OF CLAIMS...........................................................51

         22.1.    Indemnification...............................................................................51

         22.2.    Savings Clause for Indemnification............................................................51

         22.3.    Waiver........................................................................................51

23.      MISCELLANEOUS..........................................................................................52

         23.1.    Entire Agreement; Amendments; Lender's Consent................................................52

         23.2.    Cross Default; Cross Collateral...............................................................52

         23.3.    Execution in Counterparts.....................................................................52

         23.4.    Severability of Provisions....................................................................52
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         23.5.    Table of Contents; Headings...................................................................52

         23.6.    Exhibits and Schedules........................................................................52

         23.7.    Consent to Jurisdiction.......................................................................53
</TABLE>

Exhibits:

Exhibit A                   Revolving Note
Exhibit B                   Notice of Borrowing
Exhibit C                   Borrowing Base Certificate
Exhibit D                   Compliance Certificate

Schedules:

Schedule 7.2                Tradenames
Schedule 7.3                Affiliates and Subsidiaries
Schedule 7.8                Real Estate
Schedule 7.9                Patents & Trademarks
Schedule 7.13               Litigation
Schedule 7.14               Receivables Locations
Schedule 7.15               Inventory Locations
Schedule 7.16               Equipment List and Locations
Schedule 7.17               Liens
Schedule 7.18               Indebtedness
Schedule 7.21               Environmental Matters
Schedule 7.24               List of Bank Accounts
Schedule 7.27               Excluded Matters
Schedule 10.4               List of Processors and Warehousemen
Schedule 15.2               Mergers, etc.

                                      viii
<PAGE>

                RESTATED AND AMENDED LOAN AND SECURITY AGREEMENT

         THIS RESTATED AND AMENDED LOAN AND SECURITY AGREEMENT made as of March
__, 2004, by and among

                  THE A CONSULTING TEAM, INC., a New York corporation with its
                  principal executive office and principal place of business at
                  200 Park Avenue South, Suite 901, New York, New York 10003
                  (hereinafter called "TACT") and INTERNATIONAL OBJECT
                  TECHNOLOGY, INC., a New Jersey corporation with its principal
                  executive office and principal place of business to be at 77
                  Brant Avenue, Clark, New Jersey 07066, Attn: Shmuel Ben Tov
                  (hereinafter called "IOT"), TACT and IOT being each
                  hereinafter individually referred to as "BORROWER" and
                  collectively referred to as "BORROWERS"

                                       and

                  KELTIC FINANCIAL PARTNERS, LP, a Delaware limited partnership,
                  with a place of business at 555 Theodore Fremd Avenue, Suite
                  C-207, Rye, New York 10580 ("Lender").

                                    RECITALS:

                           I. Borrowers have requested that Lender continue to
                  extend a FOUR MILLION AND NO/100($4,000,000.00) US DOLLARS
                  revolving credit facility heretofore extended by Lender to
                  Borrowers on a joint and several basis so as to continue to
                  provide Borrowers with working capital support.

                           II. Lender is willing to continue to so extend the
                  credit facility on the terms and subject to the conditions set
                  forth in this Agreement.

                                   AGREEMENT:

         1. DEFINITIONS. As used herein, the following terms shall have the
following meanings (terms defined in the singular shall have the same meaning
when used in the plural and vice versa):

                  1.1. "Account Debtor" shall mean any Person who is or may
         become obligated under or on account of any Receivable.

                  1.2. "Advance" shall mean any loan or advance by Lender with
         respect to the Revolving Loan.

                  1.3. "Affiliate" shall mean any Person: (i) which directly or
         indirectly through one or more intermediaries controls, or is
         controlled by, or is under common control with, either Borrower; (ii)
         which beneficially owns or holds 5% or more of any class of the Voting
         Stock of either Borrower; or (iii) 5% or more of the Voting Stock of
         which is beneficially owned or held by either Borrower; provided,
         however, that T3 Media, Inc., Always-On Software, Inc., and Methoda,
         Ltd. shall not be deemed to be Affiliates. For purposes hereof,
         "control" means the possession, directly or indirectly, of the power to
         direct or cause the direction of the management and policies of a
         Person, whether through the ownership of Voting Stock or other equity
         interests, by contract or otherwise.

                                       1
<PAGE>

                  1.4. "Banking Day" shall mean any day on which commercial
         banks are not authorized or required to close in New York State.

                  1.5. "Blocked Account" shall mean the account established by
         Borrowers at Fleet National Bank (or any other similar account
         established by Borrowers with the consent of Lender) opened and held
         pursuant to the blocked account agreement among Borrower, Lender and
         Fleet National Bank (or other financial institution chosen by Borrowers
         with the consent of Lender) into which payments of Receivables are
         deposited.

                  1.6. "Borrower" shall mean either TACT or IOT.

                  1.7. "Borrowers" is a collective term which means both TACT
         and IOT.

                  1.8. "Borrower's knowledge" shall mean the knowledge of each
         of either Borrower's directors, officers and key employees after due
         inquiry under the circumstances.

                  1.9. "Borrowing Base Certificate" shall mean a borrowing base
         certificate substantially in the form of Exhibit "A" attached hereto.

                  1.10. "Capital Expenditure" shall mean, as determined in
         accordance with Generally Accepted Accounting Principles, the dollar
         amount of gross expenditures (including obligations under capital
         leases) made or incurred for fixed assets, real property, plant and
         equipment, and all renewals, improvements and replacements thereto (but
         not repairs thereof) during any period.

                  1.11. "Code" shall mean the Internal Revenue Code of 1986, as
         from time to time amended.

                  1.12. "Collateral" shall mean all of the property and
         interests in property described in Article 5 hereof, except as set
         forth in Article 5(l), and all other personal Property of each Borrower
         and all interests of each Borrower in personal Property that now or
         hereafter secures the payment and performance of any of the Obligations
         pursuant to any of the Loan Documents or otherwise, including, without
         limitation, any proceeds and insurance proceeds of the foregoing."

                  1.13. "Compliance Certificate" shall mean the certificate
         substantially in the form of Exhibit "B" attached hereto and made a
         part hereof.

                                       2
<PAGE>

                  1.14. THIS SECTION INTENTIONALLY OMITTED

                  1.15. "Core EBITDA" shall mean Borrowers' consolidated total
         income and their subsidiaries (excluding, however, any non-cash
         income/loss attributable to Always-On Software, Inc., and Methoda,
         Ltd., whether by ownership or otherwise) after interest expense,
         Collateral Management Fee, Facility Fee, loan extension fee, taxes,
         depreciation, amortization and any non-cash writedowns of goodwill, all
         calculated in accordance with Generally Accepted Accounting Principles.

                  1.16. "Corporate/LLC Guarantor" is a collective term which
         means each and all of the following:

                  (a)      TACT (as it relates to TACT's guaranty of the
                           Obligations owed to Lender by IOT, as more fully set
                           forth in Section 2.9);

                  (b)      IOT (as it relates to IOT's guaranty of the
                           Obligations owed to Lender by TACT, as more fully set
                           forth in Section 2.9);

                  (c)      any other corporation, limited liability company,
                           partnership (whether general or limited) or other
                           entity which hereafter guarantees the payment of all
                           or a portion of the Obligations, it being understood
                           that on the date hereof, there is no other
                           Corporate/LLC Guarantor.

                  1.17. "Corporate/LLC Guaranty" is a collective term which
         means each and all of the following:

                  (a)      TACT's guaranty of the Obligations owed to Lender by
                           IOT, as more fully set forth in Section 2.9;

                  (b)      IOT's guaranty of the Obligations owed to Lender by
                           TACT, as more fully set forth in Section 2.9;

                  (c)      any other guaranty (other than a Validity/Support
                           Guaranty) of the payment of all or a portion of the
                           Obligations hereafter executed by any Corporate/LLC
                           Guarantor; and

                  (d)      all amendments, modifications or supplements of any
                           of the foregoing guaranties made from time to time
                           hereafter.

                  1.18. "Deposit Account" shall have the meaning given to such
         term in the UCC Uniform Commercial Code in effect from time to time in
         the State of New York.

                  1.19. "Default" shall mean an event or condition the
         occurrence of which would, with the lapse of time or the giving of
         notice, or both, become an Event of Default, whether or not Lender has
         declared an Event of Default to have occurred.

                                       3
<PAGE>

                  1.20. "Eligible Receivables" shall mean and include, only
         Receivables of each Borrower comprised of time and material invoices
         that are signed off on by the Account Debtor, the records and accounts
         of which are located in compliance with Section 7.14 hereof, that are
         otherwise acceptable to Lender in Lender's discretion, arise out of
         sales in the ordinary course of business made by either Borrower to a
         Person which is not an Affiliate of either Borrower nor an employee of
         either Borrower nor controlled by an Affiliate of either Borrower,
         which are not in dispute and which do not then violate any warranty
         with respect to Receivables set forth in Article 11 of this Agreement.
         No Receivable shall be an Eligible Receivable if it is more than ninety
         (90) days past original invoice date. While Eligible Receivables shall
         consist only of Receivables of Borrowers comprised of time and material
         invoices that are signed off on by the Account Debtor, Lender may treat
         any Receivable as ineligible if:

                  (a)      any Receivable arising out of an invoice for
                           software, training, maintenance, bill-in advance,
                           progress billing and fixed price projects, provided,
                           however, that notwithstanding the foregoing, a
                           Receivable arising out of a fixed price project may
                           be considered an Eligible Receivable if all other
                           criteria of eligibility set forth in this Section are
                           met and if, in addition, (1) Lender is given a true
                           and complete final contract for the applicable fixed
                           price project if it is in excess of $200,000 and (2)
                           all invoices have been accepted in writing by the
                           applicable Account Debtor and (3) if any previous
                           invoice under the applicable fixed price project has
                           not been paid, no subsequent invoice will be
                           considered eligible until all previous invoices have
                           been paid; or

                  (b)      any warranty contained in this Agreement with respect
                           to Eligible Receivables or any warranty with respect
                           to such Receivable contained in this Agreement has
                           been breached; or

                  (c)      the Account Debtor or any Affiliate of the Account
                           Debtor has disputed liability, or made any claim with
                           respect to any other Receivable due from such
                           customer or Account Debtor to either Borrower, with
                           respect to any Receivable which Lender, in its
                           discretion, deems material; or

                  (d)      the Account Debtor or any Affiliate of the Account
                           Debtor has filed a case for bankruptcy or
                           reorganization under the Bankruptcy Code, or if any
                           such case under the Bankruptcy Code has been filed
                           against the Account Debtor or any Affiliate of the
                           Account Debtor, or if the Account Debtor or any
                           Affiliate of the Account Debtor has assigned for the
                           benefit of creditors, or if the Account Debtor or any
                           Affiliate of the Account Debtor has failed, suspended
                           business operations, become insolvent, or had or
                           suffered a receiver or a trustee to be appointed for
                           all or a significant portion of its assets or
                           affairs; or

                                       4
<PAGE>

                  (e)      if the Account Debtor is also a supplier to or
                           creditor of either Borrower or if the Account Debtor
                           has or asserts any right of any offset with respect
                           to any Receivable or asserts any claim or
                           counterclaim against either Borrower with respect to
                           any Receivable or otherwise; or

                  (f)      the sale is to an Account Debtor outside the United
                           States or Canada, unless the sale is on letter of
                           credit, acceptance or other terms acceptable to
                           Lender; or

                  (g)      fifty percent (50%) or more of the accounts of any
                           Account Debtor and its Affiliates that would
                           otherwise be treated as Eligible Receivables
                           hereunder is ineligible by reason of being more than
                           ninety (90) days past original invoice date, then all
                           the accounts of such Account Debtor and its
                           Affiliates may be deemed ineligible by Lender
                           hereunder; or

                  (h)      the total unpaid Receivables of the Account Debtor
                           exceed: (i) twenty percent (20%) of the net amount of
                           all Receivables; or (ii) in the case of Receivables
                           due from Pfizer, Inc., in which case the total unpaid
                           Receivables shall not exceed thirty percent (30%) of
                           the net amount of all such Receivables; or (iii) in
                           the case of Receivables due from BMW, in which case
                           the total unpaid Receivables shall not exceed
                           thirty-five percent (35%) of the net amount of all
                           such Receivables; or (iv) as otherwise agreed from
                           time to time, in any case of (i) or (ii) or (iii), to
                           the extent of such excess; or

                  (i)      it relates to a sale of goods or services to the
                           United States of America or any agency or department
                           thereof, unless the applicable Borrower assigns its
                           right to payment of such Receivable to Lender, in
                           form and substance satisfactory to Lender, so as to
                           comply with the Assignment of Claim Act of 1940, as
                           amended; or

                  (j)      it relates to intercompany sales, employee sales or
                           any Receivable due from an Affiliate of either
                           Borrower; or

                  (k)      it consists of a sale to an Account Debtor on
                           consignment, bill and hold, guaranteed sale, sale or
                           return, sale on approval, payment plan, scheduled
                           installment plan, extended payment terms or any other
                           repurchase or return basis; or

                  (l)      the Account Debtor is located in a state in which the
                           applicable Borrower is deemed to be doing business
                           under the laws of such state and which denies
                           creditors access to its courts in the absence of
                           qualifications to transact business in such state or
                           of the filing of any reports with such state, unless
                           the applicable Borrower has qualified as a foreign
                           corporation authorized to do business in such state
                           or has filed all required reports; or

                                       5
<PAGE>

                  (m)      the Receivable is evidenced by chattel paper or an
                           instrument of any kind, or has been reduced to
                           judgment; or

                  (n)      the Receivable arises from a retail sale of goods to
                           a Person who is purchasing such goods primarily for
                           personal, family or household purposes; or

                  (o)      if Lender believes, in its reasonable judgment,
                           collection of such Receivable is insecure or that
                           such Receivable may not be paid by reason of the
                           Account Debtor's financial inability to pay.

                  1.21. "Environment" shall mean any water or water vapor, any
         land surface or subsurface, air, fish, wildlife, biota and all other
         natural resources.

                  1.22. "Environmental Laws" shall mean all federal, state and
         local environmental, land use, zoning, health, chemical use, safety and
         sanitation laws, statutes, ordinances and codes relating to the
         protection of the Environment and/or governing the use, storage,
         treatment, generation, G30 transportation, processing, handling,
         production or disposal of "hazardous substances" and the rules,
         regulations, policies, guidelines, interpretations, decisions, orders
         and directives of federal, state and local governmental agencies and
         authorities with respect thereto.

                  1.23. "Equipment" shall have the meaning given that term in
         the UCC and shall include therein all machinery, equipment, office
         machinery, furniture, fixtures, conveyors, tools, materials storage and
         handling equipment, molds, dies, stamps and other equipment of every
         kind and nature and wherever situated now or hereafter owned by either
         Borrower or in which either Borrower may have any interest (to the
         extent of such interest), together with all additions and accessions
         thereto, all replacements and all accessories and parts therefor, all
         manuals, blueprints, know-how, warranties and records in connection
         therewith, all rights against suppliers, warrantors, manufacturers,
         sellers or others in connection therewith, and together with all
         substitutes for any of the foregoing.

                  1.24. "ERISA" shall mean the Employee Retirement Income
         Security Act of 1974, as amended.

                  1.25. "Events of Default" shall have the meaning set forth in
         Article 19 of this Agreement.

                  1.26. "Fiscal Year" shall mean with respect to any Person, a
         year of 365 or 366 days, as the case may be, ending on the last day of
         December in any calendar year.

                                       6
<PAGE>

                  1.27. "General Intangibles" shall have the meaning given that
         term in the UCC and shall include therein all general intangibles,
         including, without limitation, all choses in action, causes of action,
         corporate or other business records, Deposit Accounts, inventions,
         blueprints, designs, patents, patent applications, trademarks,
         trademark applications, trade names, trade secrets, good will, brand
         names, copyrights, registrations, licenses, franchises, customer lists,
         tax refund claims, computer programs and software, operational manuals,
         capitalized finance costs, origination fees, all equipment
         formulations, manufacturing procedures, quality control procedures and
         product specifications relating to products sold under patents,
         trademarks or copyrights owned by either Borrower or in which either
         Borrower has an interest, the right to sue for all past, present and
         future infringements of such patents, trademarks and copyrights, all
         claims under guaranties, security interests or other security held by
         or granted to either Borrower to secure payment of any of the
         Receivables by an Account Debtor, all rights to indemnification and all
         other intangible property of every kind and nature (other than
         Receivables).

                  1.28. "Generally Accepted Accounting Principles" shall mean
         generally accepted accounting principles consistently applied and
         maintained throughout the period indicated and consistent with the
         prior financial practice of the Borrowers, except for changes mandated
         by the Financial Accounting Standards Board or any similar accounting
         authority of comparable standing. Whenever any accounting term is used
         herein which is not otherwise defined, it shall be interpreted in
         accordance with Generally Accepted Accounting Principles.

                  1.29. "Governmental Rules" shall have the meaning given to
         such term in Section 7.25 of this Agreement.

                  1.30. "Guarantors" is a collective term which means all
         Individual Guarantors and all Corporate/LLC Guarantors, it being
         understood that on the date hereof, there are no Individual Guarantors
         and no Corporate/LLC Guarantors except TACT and IOT.

                  1.31. "Guaranty" is a collective term which means any guaranty
         (other than a Validity/Support Guaranty) of the payment of all or a
         portion of the Obligations now or hereafter executed by any
         Corporate/LLC Guarantor or any Individual Guarantor and all amendments,
         modifications or supplements of any such guaranty made from time to
         time hereafter, it being understood that on the date hereof, the only
         Guaranty has been given by TACT and IOT in Section 2.9 hereof .

                  1.32. "Indebtedness" shall mean and include all obligations
         for borrowed money of any kind or nature, including funded debt and
         unfunded liabilities, contingent obligations under letters of credit or
         guaranties, and all obligations for the acquisition or use of any fixed
         asset, including capitalized leases, or improvements which are payable
         over a period longer than one year, regardless of the term thereof or
         the person or persons to whom the same is payable.

                  1.33. "Individual Guarantor" shall mean any individual who now
         or hereafter guarantees the payment of all or a portion of the
         Obligations, it being understood that on the date hereof, there is no
         Individual Guarantor.

                  1.34. "Individual Guaranty" is a collective term which means
         any guaranty (other than a Validity/Support Guaranty) of the payment of
         all or a portion of the Obligations now or hereafter executed by any
         Individual Guarantor and all amendments, modifications or supplements
         of any such guaranty made from time to time hereafter, it being
         understood that on the date hereof, there is no Individual Guaranty.

                                       7
<PAGE>

                  1.35. "Inventory" shall have the meaning given to such term in
         the UCC.

                  1.36. "Investment Property" shall have the meaning given that
         term in the UCC.

                  1.37. "LIBOR" shall mean the London Inter-Bank Offered Rate as
         quoted by CitiBank, N.A. in New York City at 11:00 a.m. (New York time)
         based upon CitiBank, N.A.'s or an affiliated agency's or branch's
         quotes to prime banks in the London Inter-Bank Euro-currency Market for
         Eurodollar deposits.

                  1.38. "Lien" shall mean any interest in Property securing an
         obligation owed to, or a claim by, a Person, whether such interest is
         based on the common law, statute or contract, and including, but not
         limited to, the security interest, security title or lien arising from
         a security agreement, mortgage, deed of trust, deed to secure debt,
         encumbrance, pledge, conditional sale or trust receipt or a lease,
         consignment or bailment for security purposes.

                  1.39. "Loan Documents" shall mean this Agreement, the
         Revolving Note, the Subordination Agreements, the Validity/Support
         Guaranty and all other documents and instruments to be delivered by
         either Borrower or any Guarantor or any Validity/Support Guarantor
         under this Agreement or in connection with the Loan or any other
         indebtedness or obligation of either Borrower to Lender or any
         Affiliate of Lender, as the same may be amended, modified or
         supplemented from time to time.

                  1.40. "Loans" shall mean the loans and advances made by Lender
         hereunder, including all Advances.

                  1.41. "Lockbox" shall mean the account or accounts established
         by either Borrower pursuant to the lockbox agreement among either
         Borrower, Lender and a financial institution with which such Borrower
         maintains a depository account into which the proceeds of all
         Collateral are to be deposited, it being understood that on the date
         hereof no Lockbox is required.

                  1.42. "Material Adverse Effect" shall mean any material
         adverse effect , as determined in Lender's discretion, on (a) the
         business, assets, operations, prospects or condition, financial or
         otherwise, of either Borrower or any Guarantor or any Validity/Support
         Guarantor; (b) the ability of either Borrower or any Guarantor or any
         Validity/Support Guarantor to pay or perform the obligations in
         accordance with their terms; (c) the value of the Collateral or the
         perfection or priority of Lender's liens; (d) the validity or
         enforceability of this Agreement or any of the Loan Documents; or (e)
         the practical realization of the benefits, rights and remedies inuring
         to Lender hereunder or under the Loan Documents.

                  1.43. "Maximum Facility" shall mean FOUR MILLION AND 00/100 US
         DOLLARS ($4,000,000.00).

                  1.44. "Notice of Borrowing" shall mean a written borrowing
         request substantially in the form of Exhibit "C" attached hereto.

                                       8
<PAGE>

                  1.45. "Obligations" shall mean and include all loans
         (including the Loans), advances, debts, liabilities, obligations,
         covenants and duties owing by either Borrower to Lender or any
         Affiliate of Lender of any kind or nature, present or future, whether
         or not evidenced by any note, guaranty or other instrument, whether
         arising under this Agreement, the Loan Documents or under any other
         agreement or by operation of law, whether or not for the payment of
         money, whether arising by reason of an extension of credit, opening,
         guaranteeing or confirming of a letter of credit, loan, guaranty,
         indemnification or in any other manner, whether direct or indirect
         (including those acquired by assignment), absolute or contingent, due
         or to become due, now due or hereafter arising and however acquired,
         including, without limitation, all interest, charges, expenses,
         commitment, facility, collateral management or other fees, attorneys'
         fees and expenses, and any other sum chargeable to either Borrower
         under this Agreement, the Loan Documents or any other agreement with
         Lender.

                  1.46. "Other Collateral" shall mean all Collateral other than
         Receivables.

                  1.47. "Permitted Zielczynski Debt" shall mean scheduled
         payments due on debt of $153,545.00 (original principal amount) owed by
         Borrower TACT to Piotr a/k/a/ Peter Zielczynski, payable at the rate of
         $5,000 per month (plus interest thereon).

                  1.48. "Permitted Seller Debt" shall mean scheduled payments
         (i.e., $100,000 due on April 1, 2004, and $200,000 due on January 1,
         2005) due on debt arising out of a certain stock purchase agreement
         dated as of June 28, 2002, among Borrower TACT, International Object
         Technology, Inc., and Piotr a/k/a Peter Zielczynski, Sanjeev Welling,
         Ilan Nachmany, William P. Miller, Robert E. Duncan and bCompliant,
         Inc., and owed by Borrower TACT to said Piotr a/k/a Peter Zielczynski,
         Sanjeev Welling, Ilan Nachmany, William P. Miller, Robert E. Duncan and
         bCompliant, Inc.

                  1.49. "Person" shall mean an individual, partnership, limited
         liability company, limited liability partnership, corporation, joint
         venture, joint stock company, land trust, business trust or
         unincorporated organization, or a government or agency or political
         subdivision thereof.

                  1.50. "Plan" shall mean an employee benefit plan or other plan
         now or hereafter maintained for employees of either Borrower and
         covered by Title IV of ERISA.

                  1.51. "Prime Rate" shall mean the greater of (a) the rate
         published in the "Money Rates" column of The Wall Street Journal from
         time to time or, in the event that The Wall Street Journal is not
         available at any time, such rate published in another publication as
         determined by Lender or (b) LIBOR plus two hundred and fifty (250)
         basis points per annum.

                  1.52. "Property" shall mean any interest in any kind of
         property or asset, whether real, personal or mixed, or tangible or
         intangible.

                                       9
<PAGE>

                  1.53. "Receivables" shall have the meaning given the term
         "Accounts" in the UCC and shall include therein all present and future
         accounts, contract rights, promissory notes, chattel paper (whether
         tangible or electronic), instruments, documents, letter of credit
         rights (whether or not the letter of credit is evidenced by a writing)
         all tax refunds and rights to receive tax refunds, bonds, certificates,
         rights to payment for the sale or lease of equipment and policies of
         insurance and insurance proceeds, investment securities, notes,
         instruments and Deposit Accounts, book accounts, credits and reserves
         and all forms of obligations whatsoever owing, together with all
         instruments, all documents of title representing any of the foregoing,
         and all rights in any merchandise or goods which any of the same may
         represent, all files and records with respect to any collateral or
         security given by either Borrower to Lender, together with all right,
         title, security and guaranties with respect to each Receivable,
         including any right of stoppage in transit, whether now owned or
         hereafter created or acquired by either Borrower or in which either
         Borrower now has or hereafter acquires any interest.

                  1.54. "Reconciliation Report" shall mean a report in form
         satisfactory to Lender, reconciling Borrowers' consolidated month-end
         Receivable agings and Payable agings to Borrowers' consolidated monthly
         financial statements, and including bank reconciliations.

                  1.55. "Reportable Event" shall have the meaning assigned to
         that term in Title IV of ERISA.

                  1.56. "Revolving Advances" shall mean the Advances to be made
         by Lender to either Borrower pursuant to Section 2.1 of this Agreement.

                  1.57. "Revolving Loan" shall mean the Advances to be made on a
         joint and several basis by Lender to Borrowers pursuant to Article 2 of
         this Agreement, and all interest thereon and all fees, costs and
         expenses payable by each Borrower in connection therewith.

                  1.58. "Revolving Note" shall mean Borrowers' promissory note
         dated on or about even date herewith and given on a joint and several
         basis by Borrowers to Lender to evidence the Revolving Advances, as the
         same may be amended, modified or supplemented from time to time.

                  1.59. "Solvent" shall mean when used with respect to any
         Person, such Person (i) owns property the fair value of which is
         greater than the amount required to pay all of such Person's
         Indebtedness (including contingent debts), (ii) owns property the
         present fair salable value of which is greater than the amount that
         will be required to pay the probable liabilities of such Person on its
         then existing Indebtedness as such become absolute and matured, (iii)
         is able to pay all of its Indebtedness as such Indebtedness matures,
         and (iv) has capital sufficient to carry on its then existing business.

                  1.60. "Stock Purchase Agreement" shall mean that certain Stock
         Purchase Agreement dated as of June 28, 2002 pursuant to which Borrower
         TACT acquired all of the issued and outstanding shares of stock of
         Borrower IOT.

                  1.61. "Subordination Agreements" is a collective term which
         means all of the following:

                                       10
<PAGE>

                  (a)      that certain instrument (relating to the Permitted
                           Zielczynski Debt) dated as of even date herewith and
                           entitled "Subordination and Pledge Agreement" given
                           to Lender by Piotr a/k/a Peter Zielczynski; and

                  (b)      that certain instrument (relating to the Permitted
                           Seller Debt) dated as of even date herewith and
                           entitled "Subordination and Pledge Agreement" given
                           to Lender by Piotr a/k/a Peter Zielczynski, Sanjeev
                           Welling, Ilan Nachmany, William P. Miller, Robert E.
                           Duncan and bCompliant, Inc.; and

                  (c)      any other similar instrument now or hereafter given
                           by any Validity/Support Guarantor; and

                  (d)      all amendments, modifications or supplements of any
                           such Subordination and Pledge Agreement made from
                           time to time hereafter.

                  1.62. "Termination Date" shall mean the earlier of June 27,
         2007 or the date on which Lender terminates this Agreement pursuant to
         Section 18.1 hereof or either Borrower terminates this Agreement
         pursuant to Section 18.2 hereof.

                  1.63. "This Agreement" shall include all written amendments,
         modifications and supplements and shall refer to this Agreement as the
         same may be in effect at the time such reference becomes operative.

                  1.64. "UCC" shall mean the Uniform Commercial Code in effect
         from time to time in the State of New York.

                  1.65. "Validity/Support Guarantor" shall mean any individual
         or entity who now or hereafter executes a Validity/Support Guaranty, it
         being understood that on the date hereof, the only Validity/Support
         Guarantor is Shmuel BenTov.

                  1.66. "Validity/Support Guaranty" is a collective term which
         means all of the following:

                  (a)      that certain instrument dated as of even date
                           herewith and entitled "Validity and Support
                           Agreement" given by Shmuel BenTov; and

                  (b)      any other similar instrument now or hereafter given
                           by any Validity/Support Guarantor; and

                  (c)      all amendments, modifications or supplements of any
                           such Validity and Support Agreement made from time to
                           time hereafter.

                  1.67. "Voting Stock" shall mean securities of any class or
         classes of a corporation the holders of which are ordinarily, in the
         absence of contingencies, entitled to elect a majority of the corporate
         directors (or Persons performing similar functions).

                                       11
<PAGE>

         2. THE REVOLVING LOAN.

                  2.1. Revolving Advances. Subject to the terms and conditions
         of this Agreement and relying upon the representations and warranties
         set forth in this Agreement, for so long as no Default or Event of
         Default exists, Lender shall lend to Borrowers on their request, a sum
         equal to the lesser of: (a) FOUR MILLION AND 00/100 ($4,000,000.00) US
         DOLLARS, and (b) up to seventy five percent (75%) of the net face
         amount of Borrowers' Eligible Receivables, provided, however, that as
         it relates to Borrowers' Eligible Receivables arising out of a fixed
         price project, the aforesaid percentage shall be 50% not 75%.

                  2.2. Overline. Each Borrower acknowledges that Lender has
         advised Borrowers that Lender does not intend to permit the Borrowers
         to incur Obligations at any time in an outstanding principal amount
         exceeding the Maximum Facility; however, it is agreed that should the
         Obligations of Borrowers to Lender incurred under the Revolving Loan or
         otherwise exceed that figure or any other limitation herein set forth,
         including without limitation, the borrowing formulas set forth in
         Section 2.1 above, all such obligations shall (a) constitute
         Obligations under this Agreement, (b) shall be entitled to the benefit
         of all security and protection under this Agreement and all Loan
         Documents and secured by the Collateral and (c) shall be payable
         immediately upon demand by Lender.

                  2.3. Reserves. The borrowing limits set forth in Section 2.1
         above and otherwise herein, shall be subject to such reserves as Lender
         shall reasonably deem necessary and proper in Lender's reasonable
         discretion. Reserves may be established by Lender from time to time and
         in such manner (including reduction of the rate of Revolving Advances)
         and for such reasons as Lender may determine from time to time in
         Lender's reasonable discretion. Payments, deposits, guaranties or
         indemnifications made by Lender under any reimbursement agreement,
         guaranty or similar instrument made in respect of any such instrument
         may be treated by Lender as Revolving Advances to Borrowers hereunder.

                  2.4. Manner of Borrowing.

                  (a) Borrowers have requested that, as a convenience to each of
         them, all requests for Revolving Advances and the extension of any
         other financial accommodations to either of them under this Agreement
         shall be made only by Borrower TACT, acting in its capacity as agent
         for both Borrowers.

                  (b) In furtherance of the foregoing, Borrowers hereby direct,
         and Lender hereby agrees, that the making of Revolving Advances and the
         extension of any other financial accommodations extended to either
         Borrower under this Agreement shall be made by Borrower TACT, acting in
         its capacity as agent as aforesaid.

                  (c) Borrowers further authorize Borrower TACT, acting in its
         capacity as agent as aforesaid, to designate any Revolving Advance
         received hereunder and any other financial accommodation extended
         hereunder as having been made, issued or extended for the account of
         the Borrower designated by Borrower TACT.

                                       12
<PAGE>

                  (d) In the absence of any such designation, the request will
         be deemed to have been made on behalf of Borrower TACT for itself.

                  (e) Notwithstanding Borrower TACT's designation (or lack of a
         designation) as it relates to any such Revolving Advance or any such
         other financial accommodation as having been made or extended for the
         account of a designated Borrower, Lender may in addition to charging a
         specific loan account of the designated Borrower also charge the joint
         and several Revolving Loan account of both Borrowers.

                  (f) The authority of Borrower TACT, acting in its capacity as
         agent as aforesaid, to so request Revolving Advances or other financial
         accommodations on behalf of, and to bind, Borrowers, shall continue
         unless and until Lender's actual receipt of written notice from both
         Borrowers as to the termination of such authority, which notice must be
         signed by the respective President of each Borrower, and which notice
         must be binding on both Borrowers and shall be effective only as to
         Revolving Advances made or financial accommodations extended more than
         sixty (60) days following Lender's receipt of such notice. Borrowers
         understand that Lender's receipt of any such written notice constitutes
         an Event of Default under the Loan Agreement.

                  (g) Notwithstanding the foregoing, it is the intent of this
         Agreement that each entity named as Borrower shall be considered
         individually and collectively as a "Borrower" hereunder regardless
         whether any such entity actually receives the proceeds of the Revolving
         Loan or any Revolving Advances made thereunder or any financial
         accommodation provided hereunder and regardless which entity is the
         source of any Collateral, it being further intended that each entity
         named as "Borrower" is and shall be jointly and severally liable as a
         "Borrower" for the payment of all Obligations.

                  (h) Each Revolving Advance shall be requested in writing via
         facsimile by a Notice of Borrowing executed by an authorized officer of
         Borrower TACT, not later than 11:00 a.m. Eastern Time on any Banking
         Day on which a Revolving Loan is requested. Provided that Borrowers
         shall have satisfied all conditions precedent set forth in this
         Agreement, including the reaffirmation of the representations and
         warranties and covenants as required under Section 17.2 hereof, and
         Borrowers shall have sufficient Collateral to permit a Revolving
         Advance hereunder in accordance with Section 2.1 hereof, Lender shall
         make the Advance in the amount requested in writing by Borrower TACT in
         immediately available funds for credit to any account of Borrowers
         (other than a payroll account) at a bank in the United States of
         America as Borrowers may specify (provided, however, that Borrowers
         shall pay Lender its usual and customary fees for such transfer).
         Lender shall not be responsible for any failure of any amount so
         transferred to be credited to any such account, unless such failure is
         due to Lender's gross negligence or willful misconduct.

                  2.5. Evidence of Borrower's Obligations.

                  (a) Borrowers' joint and several obligation to pay principal
         of, and interest on, the Revolving Advances made to Borrowers shall be
         evidenced by the Revolving Note executed by Borrowers on the date
         hereof and delivered to Lender, as such note may from time to time be
         extended, modified, refinanced, renewed, substituted, replaced and/or
         redated with the written consent of Lender.

                  (b) In addition to being evidenced by the Revolving Note, all
         Revolving Advances made by Lender under the Revolving Loan and all
         interest due on the Revolving Loan and all other amounts due under the
         Revolving Loan and this Agreement and all payments made on account of
         principal and/or interest and/or such other amounts may be entered by
         Lender on its records. The aggregate unpaid principal and/or interest
         and/or other amounts entered and shown on Lender's records shall
         further evidence the principal and/or interest and/or other amounts
         owing and unpaid on the Revolving Loan and this Agreement.

                                       13
<PAGE>

                  (c) The fact that only one Borrower's Revolving Loan account
         may be charged on Lender's books in no way alters or lessens the joint
         and several liability of both Borrowers under this Agreement for the
         performance and payment of all the Obligations, it being understood (as
         also set forth in Section 2.9 below) that EACH BORROWER IS JOINTLY AND
         SEVERALLY AND UNCONDITIONALLY LIABLE AS A GUARANTOR OF THE PAYMENT AND
         PERFORMANCE OF THE OBLIGATIONS OF THE OTHER BORROWER, SUCH "GUARANTY"
         LIABILITY BEING ONE OF PAYMENT, AND NOT MERELY ONE OF COLLECTION.

                  (d) Lender may from time to time render a statement of the
         aforementioned records. If Borrowers fail to object to the statement
         within thirty (30) days after it is received by Borrowers, it shall be
         deemed to be an account stated and binding upon Borrowers, absent
         manifest error. Notwithstanding the foregoing, Lender's failure to
         enter on such records the date and amount of any Revolving Advance or
         unpaid interest or other amounts shall not, however, limit or otherwise
         affect the obligations of Borrowers under this Agreement to repay the
         principal amount of the Revolving Advances made by Lender to Borrowers
         under the Revolving Loan, together with all interest accruing and other
         amounts due thereon.

                                       14
<PAGE>

                  2.6. Payments. All payments with respect to the Obligations
         shall either be charged by Lender to Borrowers' account, charged as an
         advance or made by Borrowers to Lender in U.S. currency and without any
         defense, offset or counterclaim of any kind, at 555 Theodore Fremd
         Avenue, Suite C-207, Rye, New York 10580, or to such other address as
         Lender shall specify, by 12:00 noon New York, New York time on the date
         when due. Whenever any payment to be made shall otherwise be due on a
         day that is not a Banking Day, such payment shall be made on the next
         succeeding Banking Day and such extension of time shall be included in
         computing interest in connection with any such payment. Lender may make
         an Advance to reimburse itself for any payments on the Obligations
         (including fees and expenses payable by Borrowers) which are not paid
         when due, without prior notice or demand to Borrowers, but which Lender
         agrees shall be reflected in the monthly statements set forth in
         Section 9 of this Agreement. Prior to the occurrence of an Event of
         Default, Lender shall give written notice to Borrowers of any legal,
         auditing, or accounting fees or expenses incurred by Lender (other than
         such fees and expenses which are attributable to periods prior to the
         closing hereof or which are attributable to the closing hereof, all of
         which fees and expenses are due and payable at the time of closing),
         whereupon Borrowers shall have thirty (30) days to make satisfactory
         payment of such fees and expenses. If Borrowers fail to pay such fees
         and expenses in full within such thirty (30) day period, then Lender
         may, without further notice or demand, make an Advance to reimburse
         itself for such fees and expenses; provided, however, that, Borrowers'
         right to review, object to and dispute such fees and expenses shall not
         be effected thereby; provided, further, however, that Borrowers' right
         to review, object and dispute such fees and expenses shall be exercised
         in accordance with Section 9 of this Agreement.

                  2.7. Collections/Balance/Statements/etc.

                  (a) Collection and Remittance.

                  Each Borrower covenants and agrees to open the Blocked Account
         over which Lender shall have the sole power of withdrawal. All proceeds
         of Receivables whether cash, checks, drafts, notes, acceptances or
         other forms of payment, if received by either Borrower, shall be
         received by each Borrower in trust for Lender, and each Borrower agrees
         to deliver or cause to be delivered, such payments forthwith, in the
         identical form in which received, to Lender or to the Blocked Account,
         as Lender shall require from time to time. Collected funds in the
         Blocked Account shall be swept daily and the proceeds deposited to an
         account of Lender or Borrowers as Lender shall elect.

                  (b) Determination of Balance of Revolving Loans.

                  In determining the outstanding balance of the Revolving Loans,
         (i) funds transferred from the Blocked Account to the Lender's account
         at Fleet Bank, Account Name: Keltic Financial Partners, LP; Account No.
         9428395438, ABA #011900571 (or such other account as Lender may direct
         from time to time), before 2 p.m. Eastern Time of a Business Day will
         be credited on the second (2nd) Banking Day after such Banking Day, and
         thereafter on the following Banking Day, as follows: (a) first, to the
         outstanding principal balance of the Revolving Loan, and (b) second, to
         all other Obligations in such order as Lender shall elect; (ii) any
         other form of funds received by Lender will be credited on the Banking
         Day when Lender has received notification that such funds are collected
         and available to Lender if before 2 p.m. (Eastern Time), and

                                       15
<PAGE>

         thereafter on the following Banking Day; (iii) all credits shall be
         conditional upon final payment to Lender in cash or solvent credits of
         the items giving rise to them and, if any item is not so paid, the
         amount of any credit given for it shall be charged to the balance of
         the Revolving Loans whether or not the item is returned; and (iv) for
         the purpose of computing interest on the Revolving Loans and other
         Obligations, interest shall continue to accrue on the amount of any
         payment credited to either Borrower's Revolving Loan balance by Lender
         for a period of two (2) calendar days after the date so credited.
         Subject to Lender's rights, as set forth in Section 16, as soon as
         available payment is received by Lender with respect to all credits, if
         there are no outstanding Obligations hereunder, then Lender in
         accordance with and subject to applicable law, will transfer upon
         Borrowers' written request the funds on deposit in the Blocked Account
         to Borrowers' operating account.

                  2.8. Payment on Termination Date. Notwithstanding anything
         herein to the contrary, the entire outstanding principal balance of the
         Loans, plus all accrued and unpaid interest thereon and all fees and
         other amounts payable under this Agreement and the Loan Documents,
         shall be due and payable, in full, on the Termination Date.

                  2.9. Borrowers' Absolute Guaranty Obligations.

                  (a) Guaranty of Payment. As it relates to each Borrower's
         Obligations owed to Lender, the other Borrower hereby absolutely,
         unconditionally and irrevocably guarantees to Lender as a primary
         obligor and not as a mere surety the punctual payment and performance
         of all those Obligations.

                  (b) Obligations Unconditional. The aforesaid guaranty
         obligations shall remain in full force and effect until all Obligations
         and all sums due hereunder are paid in full, irrespective of any
         interruptions in the business relationships of either Borrower with the
         Lender. Each Borrower's guaranty hereunder shall not be affected,
         modified or impaired by any state of facts or the happening from time
         to time of any event, including, without limitation, any of the
         following, whether or not with notice to or the consent of either
         Borrower:

                           (i)      the invalidity, irregularity, illegality or
                                    unenforceability of, or any defect in any
                                    Loan Document or any Collateral;.

                           (ii)     any present or future law or order of any
                                    government (de jure or de facto) or of any
                                    agency thereof purporting to reduce, amend
                                    or otherwise affect any Loan Document or any
                                    other obligation of either Borrower or any
                                    other Guarantor of the Obligations or any
                                    other terms of payment;

                           (iii)    the waiver, compromise, settlement, release
                                    or termination of any or all of the
                                    obligations, covenants or agreements of
                                    either Borrower under any Loan Document or
                                    of any other Guarantor of the Obligations or
                                    any part thereof, or of any other party who
                                    has given collateral as security for the
                                    payment of the Obligations or any part
                                    thereof;

                           (iv)     the failure to give notice to either
                                    Borrower of the occurrence of an event of
                                    default under any Loan Document;

                                       16
<PAGE>

                           (v)      the loss, impairment by Lender, release
                                    (whether with or without consideration),
                                    sale, exchange, surrender or other change in
                                    any Collateral;

                           (vi)     the extension of the time for payment of any
                                    principal of or interest on the Obligations
                                    or of the time for performance of any other
                                    obligations, covenants or agreements under
                                    or arising out of any Loan Document or the
                                    extension or the renewal of any thereof;

                           (vii)    the modification or amendment (whether
                                    material or otherwise) of any obligation,
                                    covenant or agreement set forth in any Loan
                                    Document;

                           (viii)   the performance of, or the omission to
                                    perform, any of the actions referred to in
                                    any Loan Document;

                           (ix)     any failure, omission or delay on the part
                                    of the Lender to enforce, assert or exercise
                                    any right, power or remedy conferred on the
                                    Lender in any Loan Document;

                           (x)      the voluntary or involuntary liquidation,
                                    dissolution, sale or other disposition of
                                    all or substantially all the assets,
                                    marshaling of assets and liabilities,
                                    receivership, insolvency, bankruptcy,
                                    assignment for the benefit of creditors,
                                    reorganization, arrangement, composition
                                    with creditors or readjustment of, or other
                                    similar proceedings affecting either of the
                                    Borrowers or any assets of either of them,
                                    or any allegation or contest of the validity
                                    of any Loan Document;

                           (xi)     the default or failure of either Borrower to
                                    fully perform any obligations set forth
                                    herein;

                           (xii)    any event or action that would, in the
                                    absence of this paragraph, result in the
                                    release or discharge of either Borrower from
                                    the performance or observance of any
                                    guaranty obligation, covenant or agreement
                                    contained herein (other than payment in full
                                    of the Obligations or a written release
                                    provided by Lender to the applicable
                                    Borrower); or

                           (xiii)   any other circumstances which might
                                    otherwise constitute a legal or equitable
                                    discharge or defense of a surety or a
                                    guarantor.

                  (c) Waiver by the Borrowers (as Guarantors). Each Borrower (in
         its capacity as a Guarantor) hereby waives:

                           (i)      notice of Lender's acceptance of this
                                    guaranty;

                           (ii)     diligence, presentment and demand for
                                    payment of any of the Obligations;

                                       17
<PAGE>

                           (iii)    protest and notice of protest, dishonor or
                                    default with respect to any sums due under
                                    any of the Obligations;

                           (iv)     any and all notices to which either Borrower
                                    (in its capacity as a Guarantor) might
                                    otherwise be entitled;

                           (v)      any demand for payment under this guaranty;

                           (vi)     any and all defenses to payment including,
                                    without limitations any defenses and
                                    counterclaims of either of the Borrowers or
                                    any other Guarantor of the Obligations based
                                    upon fraud, negligence or the failure of any
                                    condition precedent or claims of offset or
                                    defenses involving the invalidity,
                                    irregularity or unenforceability of all or
                                    any part of the liabilities herein
                                    guaranteed or any defense otherwise
                                    available to either of the Borrowers or any
                                    other Guarantor of the Obligations.

                  (d) Delay of Subrogation. Until such time as the Obligations
         are paid in full and the Lender has received all other sums due under
         the terms of the Loan Documents, any and all rights of subrogation,
         reimbursement, indemnity, exoneration, contribution or any other claim
         which either Borrower may now or hereafter have against the other
         Borrower or any other person directly or contingently liable for the
         Obligations guaranteed hereunder, or against or with respect to the
         property of either Borrower (including, without limitation, property
         collateralizing the Obligations), arising from the existence or
         performance of this guaranty and whether or not such claim, right or
         remedy arises in equity, under contract, by statute, under common law
         or otherwise.

                  (e) Nature of Guaranty. This guaranty is a guaranty of payment
         and not of collection and each Borrower hereby waives the right to
         require that any action be brought first against the other Borrower or
         any other person directly or contingently liable for the Obligations
         guaranteed hereunder, or to require that resort be made to any security
         or to any balance of any deposit account or credit on the books of the
         Lender in favor of either of the Borrowers or of any other person
         directly or contingently liable for the Obligations guaranteed
         hereunder.

                  (f) Continuation of Guaranty. Each Borrower further agrees
         that its guaranty obligations hereunder shall continue to be effective
         or reinstated, as the case may be, if at any time payment or any part
         thereof of any sums due under any of the Obligations is rescinded or
         must otherwise be restored by the Lender upon the bankruptcy or
         reorganization of either of the Borrowers, or any other person directly
         or contingently liable for the Obligations guaranteed hereunder, or
         otherwise.

                  (g) Subordination of Debt. Each Borrower hereby subordinates
         to the prior payment of the Obligations any and all indebtedness now or
         hereafter owed to it by the other Borrower. Each Borrower also agrees
         with Lender that, from and after the date whereon Lender notifies such
         Borrower that an Event of Default has occurred hereunder and is
         continuing, such Borrower shall not demand or accept any payment from
         the other Borrower of any such indebtedness, shall not claim any offset
         or other reduction of the guarantying Borrower's liabilities hereunder
         because of any such indebtedness and shall not take any action to
         obtain any interest in any of the Collateral; provided, however, that,
         if Lender so requests, such indebtedness shall be collected, enforced
         and received by the guarantying Borrower as trustee for Lender and paid
         over to Lender on account of the Obligations, but without reducing or
         affecting in any manner the guaranty liability of the guarantying
         Borrower under the other provisions of this guaranty except to the
         extent the Obligations shall have been reduced by such payment.

                                       18
<PAGE>

         3. LENDER'S COMPENSATION.

                  3.1. Interest on Revolving Advances; Costs and Expenses.
         Borrowers shall pay interest monthly, in arrears, on the first day of
         each month, commencing April 1, 2004, on the average daily unpaid
         principal amount of the Revolving Advances made to either Borrower at a
         fluctuating rate which is equal to the Prime Rate plus two percent
         (2.0%) per annum; provided, however, that so long as there is no Event
         of Default hereunder and Borrowers have had four (4) consecutive fiscal
         quarters of positive net income as determined in accordance with
         Generally Accepted Accounting Principles, then the average daily unpaid
         principal amount of the Revolving Advances made to either Borrower at a
         fluctuating rate which is equal to the Prime Rate plus one and
         three-quarters of one percent (1.75%). Notwithstanding the foregoing,
         on and after the occurrence of an Event of Default hereunder, Borrowers
         shall pay interest on all Revolving Advances at a rate which is three
         percent (3%) per annum above the interest rate which would otherwise be
         in effect under this Agreement with respect to the Revolving Advances;
         provided, however, in no event shall any interest to be paid hereunder
         or under any Loan Document exceed the maximum rate permitted by law.

                  3.2. Commitment and Closing Fee. Borrowers shall pay to Lender
         a $40,000 closing and extension fee.

                  3.3. Facility Fee. Borrowers shall pay to Lender monthly, in
         arrears, on the first day of each month a facility fee in an amount
         equal to one percent (1.0%) per annum of the Maximum Facility.

                  3.4. Collateral Management Fee. Borrowers shall pay to Lender
         monthly, in arrears, on the first day of each month, a collateral
         management fee in an amount of One Thousand Five Hundred and 00/100
         Dollars ($1,500.00). Notwithstanding the foregoing, on and after the
         occurrence of an Event of Default hereunder, the collateral management
         fee shall be increased by $1,000.00 per month over the otherwise
         applicable collateral management fee.

                  3.5. Field Examination Fees. Borrowers shall promptly
         reimburse Lender for all costs and expenses associated with periodic
         field examinations performed by Lender and its agents, as deemed
         reasonably necessary by Lender; provided, however, Lender agrees that
         so long as an Event of Default has not occurred and is not continuing,
         Borrowers shall not be required to reimburse Lender for the costs and
         expenses associated with more than four (4) such field examinations per
         calendar year. Lender shall use its best efforts to complete the on
         site portion such field examinations within two (2) man days per field
         examination.

                                       19
<PAGE>

                  3.6. Prepayment Premium. If Borrowers prepay all or
         substantially all of the principal of the Revolving Loans prior to the
         Termination Date other than from funds internally generated in the
         ordinary course of business, including, without limitation, by raising
         additional capital or any normal course payment on the Loans that do
         not have the effect of a permanent reduction in the Loans, Borrowers
         shall pay to Lender at the time of such prepayment, a prepayment
         premium in an amount equal to four percent (4.0%) of the Maximum
         Facility if the prepayment is made on or before June 27, 2005, three
         percent (3.0%) of the Maximum Facility if the prepayment is made after
         June 27, 2005 but on or prior to June 27, 2006, and one percent (1.0%)
         of the Maximum Facility if the prepayment is made after June 27, 2006,
         except that no prepayment premium shall be required in connection with
         any termination of this Agreement by Lender so long as there is no
         Event of Default hereunder.

                  3.7. Computation of Interest and Fees. All interest and fees
         hereunder shall be computed on the basis of a year consisting of three
         hundred sixty (360) days for the number of days actually elapsed.

                  3.8. Payment of Interest and Fees. Interest and fees shall be
         payable immediately when due, and shall be paid by Lender's making an
         Advance in the amount of the interest and/or fee due against the
         Revolving Loan, but any failure or delay by Lender in submitting any
         invoice for such interest or fee or in the making of an advance against
         the Revolving Loan shall not discharge or relieve Borrower of its
         obligation to make such interest or fee payment.

         4. APPLICATION OF PROCEEDS. The proceeds of the Revolving Advances
shall be used solely by Borrowers for working capital needed in the normal
operation of Borrowers' business.

         5. SECURITY INTEREST IN COLLATERAL. To secure the prompt payment and
performance of all of each Borrower's Obligations to Lender, each Borrower
transfers and assigns to Lender and grants to Lender a first priority Lien on
and first security interest in all of the following property and interests in
property of each such Borrower, whether now owned or existing or hereafter
created, acquired or arising and wheresoever located:

                  (a)      All Receivables, whether now owned or existing or
                           hereafter created, acquired or arising and
                           wheresoever located;

                  (b)      all Inventory, whether now owned or existing or
                           hereafter created, acquired or arising and
                           wheresoever located;

                  (c)      all Equipment, whether now owned or existing or
                           hereafter created, acquired or arising and
                           wheresoever located;

                  (d)      all General Intangibles, whether now owned or
                           existing or hereafter created, acquired or arising
                           and wheresoever located;

                  (e)      all Investment Property, whether now owned or
                           existing or hereafter created, acquired or arising
                           and wheresoever located;

                  (f)      all Deposit Accounts, whether now owned or existing
                           or hereafter created, acquired or arising and
                           wheresoever located;

                                       20
<PAGE>

                  (g)      Letter-of-Credit Rights, whether now owned or
                           existing or hereafter created, acquired or arising
                           and wheresoever located;

                  (h)      all monies or other Property of any kind, now or at
                           any time or times hereafter, in the possession or
                           under the control of Lender or any affiliate of
                           Lender or any representative, agent or correspondent
                           of Lender, whether now owned or existing or hereafter
                           created, acquired or arising and wheresoever located;

                  (i)      all other Business Assets of Debtor, whether now
                           owned or existing or hereafter created, acquired or
                           arising and wheresoever located;

                  (j)      all accessions to, substitutions for and all
                           replacements, products and cash and noncash proceeds
                           of (a), (b), (c), (d), (e) (f),(g) and (h) above,
                           including, without limitation, proceeds of and
                           unearned premiums with respect to insurance policies
                           insuring any of the Collateral and claims against any
                           Person for loss of, damage to, or destruction of any
                           or all of the Collateral; and

                  (k)      all books and records (including, without limitation,
                           customer lists, credit files, computer programs,
                           printouts and other computer materials and records)
                           of each Borrower pertaining to any of (a), (b), (c),
                           (d), (e), (f) (g), (h), (i) or (j) above.

                  (l)      "Collateral" shall not include any ownership interest
                           of Borrower TACT in T3 Media, Inc., Always-On
                           Software, Inc. or Methoda, Ltd.

         6. RECOURSE TO SECURITY. Borrowers specifically understand and agree
that Lender's recourse against and/or to any security or Collateral shall not be
required as a prior condition to Lender's exercise of any of its rights and
remedies hereunder.

         7. INDUCING REPRESENTATIONS. In order to induce Lender to make the
Loans, each Borrower makes the following representations and warranties to
Lender:

                  7.1. Organization and Qualifications.

                           (a) TACT is a corporation duly organized and existing
                  under the laws of the State of New York.

                           (b) IOT is a corporation duly organized and existing
                  under the laws of the State of New Jersey.

                           (c) Each Borrower is qualified to do business in
                  every jurisdiction where the nature of its business requires
                  it to be so qualified and where failure to so qualify might
                  have a Material Adverse Effect.

                                       21
<PAGE>

                  7.2. Corporate Name and Address.

                           (a) During the preceding five (5) years, neither
                  Borrower has been known as or used any corporate, fictitious
                  or trade names, except as set forth on Schedule 7.2 attached
                  hereto.

                           (b) Each Borrower's executive office is at the
                  addresses set forth above.

                  7.3. Corporate Structure. Neither Borrower has any
         subsidiaries or Affiliates, except as set forth on Schedule 7.3
         attached hereto.

                  7.4. Legally Enforceable Agreement. The execution, delivery
         and performance of this Agreement, and each and all of the other Loan
         Documents and all and any other instruments and documents to be
         delivered by each Borrower or its Affiliates hereunder and the creation
         of all Liens and security interests provided for herein are within each
         Borrower's corporate power, have been duly authorized by all necessary
         or proper corporate action (including the consent of shareholders where
         required), are not in contravention of any agreement or indenture to
         which either Borrower is a party or by which it is bound, or of the
         Certificate of Incorporation or By-Laws of either Borrower, and are
         not, to the best of each Borrower's knowledge, in contravention of any
         provision of law and the same do not, to the best of each Borrower's
         knowledge, require the consent or approval of any governmental body,
         agency, authority or any other person which has not been obtained and a
         copy thereof furnished to Lender. The execution, delivery and
         performance of the Guaranty to be delivered by the Guarantor is not, to
         the best of each Borrower's knowledge, in contravention of any
         provision of law and the same does not require the consent or approval
         of any governmental body, agency, authority or any other person which
         has not been obtained and a copy thereof furnished to the Lender.

                  7.5. Solvent Financial Condition. Borrowers and Guarantor are
         each Solvent, as defined in Section 1.59 hereof.

                  7.6. Financial Statements.

                           (a) Borrower TACT's filed SEC Form 10-K dated as of
                  December 31, 2002, a copy of which has been delivered to
                  Lender, fairly presents Borrower TACT's financial condition
                  and results of operations as relevant and as of such date and
                  there have been no material adverse changes since such date.

                           (b) Neither Borrower has any material contingent
                  liabilities, liabilities for taxes, unusual forward or
                  long-term commitments, or unrealized or unanticipated losses
                  from any unfavorable commitments which were not disclosed to
                  Lender in such Form 10-K.

                  7.7. Joint Ventures. Neither Borrower is engaged in any joint
         venture or partnership with any other Person.

                  7.8. Real Estate. Attached hereto as Schedule 7.8 is a list
         showing, to the best of each Borrower's knowledge, all real property
         owned or leased by each such Borrower.

                                       22
<PAGE>

                  7.9. Patents, Trademarks, Copyrights and Licenses. To the best
         of each Borrower's knowledge, each Borrower owns or has a valid license
         to use all the patents, trademarks, service marks, trade names,
         copyrights and licenses, if any, which are currently used by it in and
         are reasonably necessary for the present and planned future conduct of
         its business without conflict with the rights of others. To the best of
         each Borrower's knowledge, all such licenses and other similar rights
         (exclusive of licenses relating to normal office business software
         (e.g. licenses for computer programs such as Word and Excel) that are
         used by either Borrower in its normal operations) with a value to such
         Borrower in excess of $200,000.00 are listed on Schedule 7.9 attached
         hereto and made a part hereof, if any. Notwithstanding the foregoing,
         neither Borrower is aware of other users of the term "TACT" and
         combinations including "A Consulting", which users may be able to
         restrict Borrower TACT's ability to establish or protect Borrower
         TACT's right to use these terms. Borrower TACT has in the past been
         contacted by other users of the term "TACT" alleging rights to the
         term. Borrower TACT has completed filings with the U.S. Patent and
         Trademark Office in order to protect certain marks, including "TACT"
         and "The A Consulting Team".

                  7.10. Existing Business Relationship. There exists no actual
         or, to the best of either Borrower's knowledge, threatened termination,
         cancellation or limitation of, or any materially adverse modification
         or change in, the business relationship of either Borrower with any
         customer or group of customers whose purchases individually or in the
         aggregate are material to the operations of either Borrower, or with
         any supplier.

                  7.11. Investment Company Act: Federal Reserve Board
         Regulations. Neither Borrower is an "investment company", or an
         "affiliated person" of, or "promoter" or "principal underwriter" for,
         an "investment company", as such terms are defined in the Investment
         Company Act of 1940, as amended (15 U.S.C. ss.80(a)(1), et seq.). The
         makings of the Revolving Loans hereunder by Lender, the application of
         the proceeds and repayment thereof by Borrowers and the performance of
         the transactions contemplated by this Agreement will not violate any
         provision of said Act, or any rule, regulation or order issued by the
         Securities and Exchange Commission thereunder. Neither Borrower owns
         any margin security as that term is defined in Regulation U of the
         Board of Governors of the Federal Reserve System and the proceeds of
         the borrowings made pursuant to this Agreement will be used only for
         the purposes contemplated hereunder. None of the proceeds will be used,
         directly or indirectly, for the purpose of purchasing or carrying any
         margin security or for the purpose of reducing or retiring any
         indebtedness which was originally incurred to purchase or carry margin
         security or for any other purpose which might constitute any of the
         loans under this Agreement a "purpose credit" within the meaning of
         said Regulation U or Regulations T or X of the Federal Reserve Board.
         Neither Borrower will take, or permit any agent acting on its behalf to
         take, any action which might cause this Agreement or any document or
         instrument delivered pursuant hereto to violate any regulation of the
         Federal Reserve Board.

                                       23
<PAGE>

                  7.12. Tax Returns. Borrowers and the Guarantors have filed or
         timely extended the filing date of all tax returns (Federal, state or
         local) required to be filed and paid all taxes shown thereon to be due
         including interest and penalties or has provided adequate reserves
         therefor. To the best of each Borrower's knowledge, no assessments have
         been made against either Borrower or the Guarantors by any taxing
         authority nor has any penalty or deficiency been made by any such
         authority. To the best of each Borrower's knowledge, no Federal income
         tax return of either one of the Borrowers or any Guarantor is presently
         being examined by the Internal Revenue Service nor are the results of
         any prior examination by the Internal Revenue Service or any State or
         local tax authority being contested by Borrower.

                  7.13. Litigation. Except as disclosed in Schedule 7.13, no
         action or proceeding, is now pending or, to the best of each Borrower's
         knowledge, is threatened against either Borrower or any Guarantor at
         law, in equity or otherwise, before any court, board, commission,
         agency or instrumentality of the Federal or state government or of any
         municipal government or any agency or subdivision thereof, or before
         any arbitrator or panel of arbitrators, and neither one of the
         Borrowers nor any Guarantor has accepted liability for any such action
         or proceeding. Neither Borrower has received notice of and, to the best
         of each Borrower's knowledge, there is no proceeding pending before any
         governmental agency (Federal, state or local) and, to the best of
         Borrower's knowledge, no investigation has been commenced before any
         such government agency the effect of which, if adversely decided, would
         affect or impair Borrower's business or financial condition.

                  7.14. Receivables Locations. Annexed hereto as Schedule 7.14
         is a list showing all places at which each Borrower maintains, or will
         maintain, records relating to Receivables.

                  7.15. Inventory Locations. Annexed hereto as Schedule 7.15 is
         a list showing all places where each Borrower maintains, or will
         maintain, Inventory with, in the aggregate, book value in excess of
         $50,000.00. Such list indicates whether the premises are owned or
         leased by such Borrower or whether the premises are the premises of a
         warehouseman or other third party, and if owned by a third party, the
         name and address of such third party.

                  7.16. Equipment List and Locations. Annexed hereto as Schedule
         7.16 is a computer printout from Borrowers' books and records showing
         substantially all of each Borrower's Equipment (except for items of
         Equipment which in the aggregate do not have material value), and
         describing the places where the same is located. All Equipment is free
         and clear of all Liens and security interests voluntary created by
         either Borrower in favor of any Person other than Lender, except as set
         forth on Schedule 7.16, and to the best of each Borrower's knowledge,
         there are no other Liens or security interests encumbering any
         Equipment.

                  7.17. Title Liens. Each Borrower has good and marketable title
         to the Receivables and, to the best of each Borrower's knowledge, the
         Other Collateral, as sole owner thereof. There are no existing Liens
         voluntarily created by either Borrower on any property of either
         Borrower, except for Liens in favor of Lender and Liens described in
         Schedule 7.17 and, to the best of each Borrower's knowledge, there are
         no other Liens on any property of either Borrower. Except as set forth
         on Schedule 7.17, none of the Receivables and, to the best of each
         Borrower's knowledge, none of the Other Collateral is subject to any
         prohibition against encumbering, pledging, hypothecating or assigning
         the same or requires notice or consent in connection therewith.

                                       24
<PAGE>

                  7.18. Existing Indebtedness. Neither Borrower has existing
         Indebtedness except the Indebtedness described in Schedule 7.18.

                  7.19. ERISA Matters. Neither Borrower has any so-called
         "defined benefit" Plan and, with respect to either Borrower's so-called
         "defined contribution" Plan, neither Borrower has made any
         contributions thereunder, neither is obligated to make any
         contributions and neither has any outstanding obligations thereunder
         pursuant to the terms thereof. To the best of each Borrower's
         knowledge, neither Borrower has engaged in any transaction which would
         subject either Borrower to tax, penalty or liability for prohibited
         transactions imposed by ERISA or the Code.

                  7.20. O.S.H.A. To the best of each Borrower's knowledge, each
         Borrower has duly complied with, and its facilities, business,
         leaseholds, equipment and other property are in compliance in all
         respects with, the provisions of the federal Occupational Safety and
         Health Act and all rules and regulations thereunder and all similar
         state and local Governmental Rules. To the best of each Borrower's
         knowledge, there are no outstanding citations, notices or orders of
         non-compliance issued to either Borrower or relating to its facilities,
         business, leaseholds, equipment or other property under any such
         Governmental Rules.

                  7.21. Environmental Matters. Except as disclosed in Schedule
         7.21:

                  (a) To the best of each Borrower's knowledge, no property
         owned or used by either Borrower is or has been used for the
         generation, manufacture, refining, transportation, treatment, storage,
         handling or disposal of any "hazardous substances" or "hazardous
         wastes". The following are all of the Standard Industrial
         Classification Codes applicable to the properties and operations of
         both Borrowers: 541519; (b) to the best of each Borrower's knowledge,
         each Borrower is in compliance with all applicable Environmental Laws;
         (c) to the best of each Borrower's knowledge, there has been no
         contamination or release of hazardous substances at, upon, under or
         within any property owned or leased by either Borrower, and there has
         been no contamination (as defined in any applicable Environmental Law)
         or release of hazardous substances (as defined in any applicable
         Environmental Law) on any other property that has migrated or threatens
         to migrate to any property owned or leased by either Borrower; (d) to
         the best of each Borrower's knowledge, there are not now and never have
         been above-ground or underground storage tanks at any property owned or
         leased by either Borrower; (e) to the best of each Borrower's knowledge
         there are no transformers, capacitors or other items of Equipment
         containing polychlorinated biphenyls at levels in excess of 49 parts
         per million, violative of any applicable Environmental Law, at any
         property owned or leased by either Borrower; (f) to the best of each
         Borrower's knowledge, no hazardous substances are present at any
         property owned or leased by either Borrower, nor will any hazardous
         substances be present upon any such property or in the operation
         thereof by either Borrower, in proper storage containers; (g) to the
         best of each Borrower's knowledge, all permits and authorizations
         required under Environmental Laws for all operations of each Borrower
         have been duly issued and are in full force and effect, including but
         not limited to those for air emissions, water discharges and treatment,
         storage tanks and the generation, treatment, storage and disposal of
         hazardous substances; (h) to the best of each Borrower's knowledge,
         there are no past, pending or threatened environmental claims against
         either Borrower or any Property owned or leased by either Borrower; to
         the best of each Borrower's knowledge, and there is no condition or
         occurrence on any Property owned or leased by either Borrower that
         could be anticipated (1) to form the basis of an environmental claim
         against either Borrower or its properties or (2) to cause any property
         owned or leased by either Borrower to be subject to any restrictions on
         its ownership, occupancy or transferability under any Environmental
         Law; (i) the representations and warranties set forth in this Section
         shall survive repayment of the Obligations and the termination of this
         Agreement and the Loan Documents.

                                       25
<PAGE>

                  7.22. Labor Disputes. There are no pending or, to the best of
         each Borrower's knowledge, threatened labor disputes which could have a
         Material Adverse Effect.

                  7.23. Intellectual Property. To the best of each Borrower's
         knowledge, each Borrower owns or has a valid license to use all
         necessary patents, trademarks, service marks, copyrights and other
         intellectual property, if any, which are currently used by it in and
         are reasonably necessary or useful in the operation of its business, in
         each case free of any claims or infringements. Notwithstanding the
         foregoing, Borrowers are aware of other users of the term "TACT" and
         combinations including "A Consulting", which users may be able to
         restrict Borrower TACT's ability to establish or protect Borrower
         TACT's right to use these terms. Borrower TACT has in the past been
         contacted by other users of the term "TACT" alleging rights to the
         term. Borrower TACT has completed filings with the U.S. Patent and
         Trademark Office in order to protect certain marks, including "TACT"
         and "The A Consulting Team".

                  7.24. Location of Bank and Securities Accounts. Schedule 7.24
         hereto sets forth a complete and accurate list of all deposit, checking
         and other bank accounts, all securities and other accounts maintained
         with any broker dealer and all other similar accounts maintained by
         Borrowers, together with a description thereof.

                  7.25. Compliance With Laws. Each Borrower is in compliance
         with all federal, state and local governmental rules, ordinances and
         regulations ("Governmental Rules") applicable to its ownership or use
         of properties or the conduct of its business, except for violations or
         failures to comply, if any, which would not reasonably be expected to
         have a Material Adverse Effect. Neither Borrower has received any
         notice of violation of any of the foregoing.

                  7.26. No Other Violations. Neither Borrower is in violation of
         any term of its Certificate of Incorporation or By-laws and, to the
         best of each Borrower's knowledge, no event or condition has occurred
         and is continuing which constitutes or results in (or would constitute
         or result in, with the giving of notice, lapse of time or other
         condition) (a) a breach of, or a default under, any agreement,
         undertaking or instrument to which either Borrower is a party or by
         which it or any of its property may be affected, or (b) the imposition
         of any Lien on any property of either Borrower. To the best of each
         Borrower's knowledge, no Guarantor is in breach or default under any
         agreement, undertaking or instrument to which the Guarantor is a party
         or by which he/it or his/its property may be affected, nor does any
         condition exist which would constitute such a breach or default or
         result in the imposition of any Lien on any Property of any Guarantor.

                                       26
<PAGE>

                  7.27. Survival of Representations and Warranties. Each
         Borrower covenants, warrants and represents to Lender that all
         representations and warranties of each Borrower contained in this
         Agreement or any of the other Loan Documents shall be true at the time
         of each Borrower's execution of this Agreement and the other Loan
         Documents, and Lender's right to bring an action for breach of any such
         representation or warranty or to exercise any remedy hereunder based
         upon the breach of such representation or warranty shall survive the
         execution, delivery and acceptance hereof by Lender and the closing of
         the transactions described herein or related hereto until the
         Obligations are finally and irrevocably paid in full. Lender
         acknowledges and agrees that neither Borrower is making any
         representation or warranty to Lender with respect to those matters set
         forth on Schedule 7.27 hereto; provided, however, that each Borrower
         represents and warrants that it knows of no fact or circumstance, and
         it has not failed to disclose to Lender any fact or circumstance known
         to it, that would make any such matters false or materially misleading.

         8. FINANCIAL STATEMENTS AND INFORMATION; CERTAIN NOTICES TO LENDER. So
long as either Borrower shall have any Obligations to Lender under this
Agreement, each Borrower shall deliver to Lender, or shall cause to be delivered
to Lender:

                  8.1. Borrowing Base Certificate. Weekly (on or before
         Wednesday of each week as of the preceding week end), and monthly
         (within two (2) days after the end of each month) and contemporaneously
         with each request for an Advance, a satisfactorily completed and
         executed Borrowing Base Certificate.

                  8.2. Monthly Reports. Within twenty (20) days after the end of
         each month, an accounts receivable aging and accounts payable aging and
         Borrowers' consolidated Reconciliation Report for such month, all in
         form satisfactory to Lender, prepared by Borrowers and if Lender so
         requests, customer statements, sales journals, cash receipts journals
         and detailed sales credit reports.

                  8.3. Annual Financial Statements. Within ninety (90) days
         after the close of each Fiscal Year, (a) a copy of the annual
         consolidating and consolidated financial statements of Borrowers
         consisting of balance sheets, statements of operations and retained
         earnings and statements of cash flow audited by independent certified
         public accountants and certified by such accountants, and accompanied
         by such accountants' certification that, in the normal course of their
         review, such accountants have become aware of no presently existing
         state of facts constituting a Default or an Event of Default under this
         Agreement, (b) a copy of the annual consolidating financial statements
         of Borrowers in the same format as the annual consolidated financial
         statements except that such consolidating statements shall be prepared
         by management of Borrowers in accordance with Generally Accepted
         Accounting Principles and certified by the chief financial officer of
         Borrowers, and (c) the Compliance Certificate. In addition, Borrowers
         shall deliver, or cause to be delivered, to Lender, if and when issued,
         any management letters prepared by Borrowers' independent certified
         public accountants; provided that the consolidating financial
         statements will not contain footnotes.

                                       27
<PAGE>

                  8.4. Financial Statements. Within (a) forty-five (45) days
         after the end of each first, second and third quarter, and (b) ninety
         (90) days after the end of each fourth quarter of each Fiscal Year,
         consolidating and consolidated financial statements of Borrowers
         consisting of balance sheets, statements of operations and retained
         earnings and statements of cash flow, prepared by management of
         Borrowers in accordance with Generally Accepted Accounting Principles
         and certified by the chief financial officer of Borrowers, together
         with the Compliance Certificate; provided that the consolidating
         financial statements will not contain footnotes.

                  8.5. Tax Returns. A copy of each Borrower's federal income tax
         return, as and when filed with the Internal Revenue Service.

                  8.6. Projections. Within thirty (30) days prior to the end of
         each of Borrowers' fiscal years, financial projections for Borrowers in
         form satisfactory to Lender covering not less than a one (1) year
         period, commencing with the succeeding fiscal year. If such projections
         are for a one (1) year period, then such projections shall be prepared
         on a monthly basis. If such projections are for more than a one (1)
         year period, then such projections shall be prepared on a monthly basis
         with respect to first year thereof and on a quarterly basis thereafter.

                  8.7. Customer Lists. Semiannually, a list of all of Borrowers'
         customers and vendors, including the addresses, telephone and facsimile
         numbers which lists shall be delivered within thirty (30) days after
         each second fiscal quarter and within thirty (30) days after the each
         fiscal year end.

                  8.8. Insurance. Annually, within thirty (30) days of the
         renewal date of such insurance policy, evidence of insurance in form
         and content satisfactory to Lender and otherwise in compliance with
         Section 14.6 hereof, together with the original insurance policy.

                  8.9. Notice of Event of Default and Adverse Business
         Developments. Immediately after becoming aware of the existence of a
         Default or any Event of Default under this Agreement or after becoming
         aware of any developments or other information which is likely to (i)
         materially adversely affect either Borrower's business, prospects,
         profits or condition (financial or otherwise) or its ability to perform
         this Agreement, or (ii) adversely affect the properties of either
         Borrower, including, without limitation, the following:

                           (a) any substantial dispute that may arise between
                  either Borrower and any governmental regulatory body or law
                  enforcement authority, including any action relating to any
                  tax liability of either Borrower;

                           (b) all litigation against either Borrower where the
                  amount claimed in any one suit or action is $250,000 or more
                  and all litigation where the amount claimed in the aggregate
                  is $500,000 or more except when the same is fully covered by
                  insurance and the insurer accepts liability therefor;

                           (c) any labor controversy resulting in or threatening
                  to result in a strike or work stoppage against either
                  Borrower;

                           (d) any proposal by any public authority to acquire
                  the assets or business of either Borrower;

                                       28
<PAGE>

                           (e) the location of any Collateral other than at
                  either Borrower's place of business or as permitted under this
                  Agreement;

                           (f) any proposed or actual change of either
                  Borrower's name, identity or corporate structure; and

                           (g) any other matter which has resulted or may result
                  in a Material Adverse Effect.

         In each case, the applicable Borrower will provide Lender with
         telephonic or telegraphic notice specifying and describing the nature
         of such Default, Event of Default or development or information, and
         such anticipated effect, which telephonic or telegraphic notice shall
         be promptly confirmed in writing within three (3) Banking Days; and

                  8.10. Other Information. Such other information respecting the
         financial condition of either Borrower or any property of either
         Borrower in which Lender may have a Lien as Lender may, from time to
         time, reasonably request. Each Borrower authorizes Lender to
         communicate directly with each Borrower's independent certified public
         accountants and authorizes those accountants to disclose to Lender any
         and all financial statements and other information of any kind that
         they may have with respect to either Borrower and its business and
         financial and other affairs. Each Borrower shall deliver a letter
         addressed to such accountants instructing them to comply with the
         provisions of this Section. Lender shall treat all non-public documents
         and information marked "Confidential" ("Confidential Information") so
         obtained or provided by each Borrower or its agents, representatives or
         certified public accountants as confidential and will hold and will
         cause its respective employees, agents and representatives to hold in
         confidence all such Confidential Information concerning either
         Borrower, its Affiliates, Always-On Software, Inc., Methoda, Ltd., and
         T3 Media except: (i) when Lender is required to disclose pursuant to
         Governmental Rules, (ii) when Lender is compelled to disclose by
         judicial or administrative process, (iii) when deemed necessary by
         Lender in its discretion to enforce this Agreement or any of the other
         Loan Documents, and (iv) in connection with the sale of participations
         in or the assignment of all or any part of Lender's interest in the
         Loans. Lender will not release or disclose such Confidential
         Information to any other person, except its auditors, attorneys,
         financial advisors and other consultants, advisors, agents and
         representatives. If the transactions contemplated by this Agreement are
         not consummated, such confidence shall be maintained and, if requested
         by or on behalf of either Borrower, Lender will, and will use all
         reasonable efforts to cause its auditors, attorneys, financial advisors
         and other consultants, agents and representatives to, return to the
         applicable Borrower or destroy, at Borrowers' cost and expense, all
         copies of all such Confidential Information.

         9. ACCOUNTING. Lender shall account monthly to Borrowers. Each and
every account shall be deemed final, binding and conclusive upon Borrowers in
all respects, as to all matters reflected therein, unless Borrowers, within
thirty (30) days after the date the account was rendered, delivers to Lender
written notice of any objections which they may have to any such account and in
that event only those items expressly objected to in such notice shall be deemed
to be disputed by Borrowers. If either Borrower disputes the correctness of any
statement, such Borrower's notice shall specify in detail the particulars of its
basis for contending that such statement is incorrect.

                                       29
<PAGE>

         10. RESTATEMENT AND REPLACEMENT OF 2002 LOAN AGREEMENT.

                  10.1. This Agreement, the Revolving Note and the other Loan
         Documents are intended to restate and amend the obligations of
         Borrowers under that certain June 27, 2001 Loan and Security Agreement
         (as amended) and any "Loan Documents" defined therein (collectively the
         "2001 Loan Documents").

                  10.2. This Agreement, the Revolving Note and the other Loan
         Documents are intended to substitute for and replace in their entirety
         the 2001 Loan Documents.

                  10.3. Borrowers agree that the principal amount of $-0- is due
         on the 2001 Loan Documents as of the opening of business on the date
         hereof (all interest being current as of March 1, 2004).

                  10.4. The foregoing principal amount outstanding under the
         2001 Loan Documents on the date hereof shall be and hereby are restated
         and recast, without more, as a Revolving Advance under the Revolving
         Loan.

                  10.5. Borrowers acknowledge and agree that Borrowers'
         obligations under the 2001 Loan Documents are not subject to any
         defenses, recoupments, set-offs or counterclaims of any kind
         whatsoever. To the extent that any such defense, recoupment, set-off or
         counterclaim exists, it is hereby expressly waived by Borrowers.

                  10.6. Borrowers also agree that there exist no claims or
         charges against any actions or inactions of Lender in extending any
         financial accommodations under the 2001 Loan Documents or in making
         disbursements under thereunder or in otherwise administering the 2001
         Loan Documents or any of the other documents referred to therein.

         11. WARRANTIES WITH RESPECT TO RECEIVABLES. Each Borrower represents
and warrants to Lender that each Receivable created by it (i) will be free and
clear of liens and encumbrances in favor of any Person other than Lender, except
as otherwise permitted hereunder, (ii) will cover a bona fide sale and delivery
of merchandise usually dealt in by each such Borrower in the ordinary course of
its business or will cover the rendition of services by each such Borrower to
customers of a kind ordinarily rendered in the ordinary course of each such
Borrower's business, (iii) will be for a liquidated amount from a customer
competent to contract therefor, (iv) is not subject to renegotiation, except in
the ordinary course of each Borrower's business consistent with each such
Borrower's past practice, (v) is not subject to any prepayment or credit and
will not be subject to any deduction, offset, counterclaim, lien or other
condition other than in the ordinary course of each such Borrower's business,
and (vi) is generally enforceable in accordance with its terms. Each Borrower
further represents and warrants that all services to be performed by each such
Borrower in connection with each Receivable have been performed.

                                       30
<PAGE>

         12. SPECIAL PROVISIONS WITH RESPECT TO RECEIVABLES AND RELATED MATTERS.

                  12.1. Confirmatory Written Assignments. Promptly after the
         creation of any Receivable, if Lender shall so request, each Borrower
         shall execute and deliver confirmatory written assignments to Lender of
         Eligible Receivables, but the failure to execute or deliver any
         schedule or assignment shall not affect or limit any Lien or other
         right of Lender in and to any Receivable. Each Borrower shall cause all
         of its invoices to be printed and to bear consecutive numbers, and to
         issue its invoices in such consecutive numerical order. On Lender's
         request therefor, each Borrower shall also furnish to Lender copies of
         invoices to customers and employee timesheets. Each Borrower will also
         furnish Lender with such other documents and instruments as Lender may
         request in connection with any Receivables, including detailed monthly
         agings. Each Borrower shall deliver to Lender the originals of all
         letters of credit, notes, and instruments in its favor and such
         endorsements or assignments as Lender may request. If either Borrower
         shall fail to deliver to Lender any Receivables, financial or any other
         report with respect to the Collateral required to be delivered by
         Borrower pursuant to Section 8 and Section 9 of this Agreement within
         ten (10) days after the dates set forth therein, then Borrowers agree
         to pay to Lender a fee of fifty dollars ($50.00) per day, beginning on
         the date that next follows the date required for delivery of such
         report and continuing through the date that either Borrower delivers
         said report for each report and/or document that either such Borrower
         fails to deliver to Lender under this Agreement.

                  12.2. Notice of Certain Events. Each Borrower will notify
         Lender of all disputes, returns and of all claims asserted with respect
         to (i) any Receivables which disputes or claims exceed $50,000 per
         occurrence, and (ii) any Receivables (other than Eligible Receivables)
         which disputes or claims exceed $150,000 per occurrence. Each Borrower
         shall promptly report each such return, repossession or recovery of
         merchandise to Lender, advising it of the location thereof and
         providing it with a description of such goods and their location.
         Neither Borrower shall settle or adjust any dispute or claim, or grant
         any discount (except ordinary trade discounts and volume discounts),
         credit or allowance or accept any return of merchandise, without
         Lender's consent, except for credits, discounts or allowances on
         Receivables in an aggregate amount not to exceed (i) $150,000 per
         calendar month, and (ii) $400,000 per calendar quarter. Upon the
         occurrence of and during the continuance of an Event of Default for a
         period of in excess of two (2) months, Lender may settle or adjust
         disputes or claims directly with customers or Account Debtors of either
         Borrower for amounts and upon terms which it considers advisable. Where
         either Borrower receives Collateral of any kind or nature by reason of
         transactions between itself and its customers or Account Debtors, it
         will hold the same on Lender's behalf, subject to Lender's
         instructions, and as property forming part of the Receivables. Where
         either Borrower sells to a customer or Account Debtor which also sells
         to it or which may have other claims against it, such Borrower will so
         advise Lender, promptly upon being notified of such order.

                                       31
<PAGE>

                  12.3. Communication with Account Debtors. Each Borrower
         authorizes Lender, before an Event of Default, without the consent of
         either Borrower, to communicate directly only with Account Debtors or
         customer's accounts payable departments, by whatever means Lender shall
         elect, for the purpose of verifying the information supplied by each
         such Borrower to Lender with respect to Receivables only. Each Borrower
         authorizes Lender, upon the occurrence of an Event of Default, without
         the consent of either Borrower, to communicate directly with customers
         or Account Debtors of Borrower by whatever means Lender shall elect for
         the purpose of verifying the information supplied by either Borrower to
         Lender with respect to Receivables. Upon Lender's request, before or
         after the occurrence of an Event of Default, each Borrower shall
         provide Lender with a list of the addresses of each of their Account
         Debtors.

         13. SPECIAL PROVISIONS RELATING TO EQUIPMENT.

                  13.1. Equipment List. Annexed hereto as Schedule 7.16 is a
         computer printout from Borrowers' books and records showing
         substantially all of each Borrower's present Equipment. All Equipment
         hereafter acquired will be kept at the location or locations shown, if
         shown, on said Schedule or at the locations where located on the date
         hereof, unless the applicable Borrower shall have first advised Lender
         of its intention to maintain a plant or offices at some other location
         and obtained Lender's prior written consent thereto to keeping the
         Equipment at such other location; provided, however, Lender's prior
         written consent shall not be required with respect to (i) the
         relocation of Equipment from the locations set forth on Schedule 7.16
         to the residences of employees, provided that the type and amount of
         Equipment so relocated is consistent with a "home office" and provided
         that such relocation shall not cause a Material Adverse Effect; and
         (ii) the relocation of Equipment between the locations set forth on
         Schedule 7.16, provided that such relocation shall not cause a Material
         Adverse Effect.

                  13.2. Borrower's Obligations With Respect to Equipment. Each
         Borrower shall keep all of its Equipment in a good state of repair, and
         will make all repairs and replacements when and where necessary, will
         not waste or destroy Equipment or any part thereof, and will not be
         negligent in the care, or use, thereof. Each Borrower shall keep
         accurate lists and records reflecting its Equipment and shall retain
         copies of all warranties, manuals and manufacturers' or vendors'
         requirements with respect thereto. All Equipment shall be used in
         accordance with law and prudent business practice and the
         manufacturer's instructions and shall be kept separate from and shall
         not be annexed or affixed to or become part of the realty except where
         Lender first consents in writing thereto.

         14. AFFIRMATIVE COVENANTS. Each Borrower represents and warrants that,
         so long as it shall have any Obligations to Lender hereunder, each such
         Borrower will:

                  14.1. Business and Existence. Preserve and maintain each such
         Borrower's separate corporate existence and rights, privileges and
         franchises in connection herewith.

                  14.2. Trade Names. Transact business in each such Borrower's
         own name and invoice all of each such Borrower's Receivables in each
         such Borrower's own name.

                  14.3. Transactions with Affiliates. Whenever either Borrower
         engages in transactions with an Affiliate of either Borrower, conduct
         the same, with respect to the payment obligations thereof, on an
         arms-length basis or other basis more favorable to Borrowers.

                                       32
<PAGE>

                  14.4. Taxes. Pay and discharge all taxes, assessments,
         government charges and levies imposed upon either Borrower, each such
         Borrower's income or each such Borrower's profits or upon any property
         belonging to either such Borrower prior to the date on which penalties
         attach thereto, except where the same may be contested in good faith by
         appropriate proceedings.

                  14.5. Compliance with Laws. Substantially comply with all
         Governmental Rules applicable to either Borrower, including, without
         limitation, all laws and regulations regarding the collection, payment
         and deposit of employees' income, unemployment and Social Security
         taxes; provided, however, that Borrowers shall not be in default as a
         result of their failure to comply with a Governmental Rule if such
         failure would not reasonably be expected to result in a Material
         Adverse Effect.

                  14.6. Maintain Properties: Insurance. Safeguard and protect
         all property used in the conduct of each Borrower's business and keep
         all of each Borrower's property insured with insurance companies
         licensed to do business in the states where the property is located
         against loss or damage by fire or other risk usually insured against by
         other owners or users of such properties in similar businesses under
         extended coverage endorsement and against theft, burglary, and
         pilferage together with such other hazards as Lender may from time to
         time request, in amounts satisfactory to Lender. Each Borrower shall
         deliver the policy or policies of such insurance or certificates of
         insurance to Lender. All such insurance shall contain endorsements in
         form satisfactory to Lender naming Lender as lender loss payee and
         providing that the insurance shall not be canceled, amended or
         terminated except upon thirty (30) days' prior notice to Lender and
         showing Lender as an additional party insured as its interest may
         appear. All insurance proceeds received by Lender shall be retained by
         Lender for application to the payment of such portion of the
         Obligations as Lender may determine in Lender's discretion. Each
         Borrower shall promptly notify Lender of any event or occurrence
         causing a loss or decline in value of property insured or the existence
         of an event justifying a claim under any insurance and the estimated
         amount thereof if the amount of any such loss, decline in value or
         claim exceeds $250,000.00 in the aggregate.

                  14.7. Business Records. Keep adequate records and books of
         account with respect to each Borrower's business activities in which
         proper entries are made in accordance with sound bookkeeping practices
         reflecting all financial transactions of each such Borrower.

                  14.8. Litigation. Give Lender prompt notice of any suit at law
         or in equity against itself involving money or property valued in
         excess of Two Hundred Fifty Thousand Dollars ($250,000) except where
         the same is fully covered by insurance and the insurer accepts
         liability therefor, and of any investigation or proceeding before or by
         any administrative or governmental agency the effect of which would be
         to prohibit or materially limit or restrict the manner in which either
         Borrower presently conducts its respective business or to declare any
         substance contained in any product manufactured or distributed by
         either Borrower to be dangerous.

                                       33
<PAGE>

                  14.9. Damage or Destruction of Collateral. Maintain or cause
         to be maintained the Collateral and all its other assets and properties
         in good condition and repair at all times, preserve the Collateral and
         all its other assets and properties from loss, damage, or destruction
         of any nature whatsoever and provide Lender with prompt written notice
         of (i) any destruction or substantial damage to any Collateral
         evidencing or relating to Receivables and of the occurrence of any
         condition or event which has caused, or may cause, loss or depreciation
         in the value of any Receivables, and (ii) any material destruction or
         substantial damage to any Other Collateral and of the occurrence of any
         material condition or event which has caused, or may cause, loss or
         depreciation in the value of any Other Collateral.

                  14.10. Name Change. Provide Lender with (i) not fewer than
         thirty (30) days written notice prior to any proposed change of name,
         and (ii) contemporaneous written notice of the creation of any
         subsidiary.

                  14.11. Access to Books and Records. Provide Lender with such
         reports and with such access upon three (3) days prior written notice
         (unless an Event of Default has occurred, in which case no notice shall
         be required), during normal business hours, to each Borrower's books
         and records and permit Lender to copy and inspect such reports and
         books and records all as Lender reasonably deems necessary or desirable
         to enable Lender to monitor the credit facilities extended hereby;
         provided, however, that Lender shall use reasonable efforts to avoid
         disrupting either Borrower's ordinary business operations, particularly
         during periods when (i) either Borrower is preparing filings for
         submission to the U.S. Securities and Exchange Commission, and (ii)
         either Borrower's auditors are present and auditing either Borrower's
         books and records.

                  14.12. Solvent. Continue to be Solvent, as defined in Section
         1.59 hereof.

                  14.13. Compliance With Environmental Laws. Comply in all
         material respects with all applicable Environmental Laws.

                  14.14. Compliance with ERISA and other Employment Laws. Comply
         in all material respects with all: (a) applicable provisions of ERISA
         and the Code and (b) any other applicable laws, rules or regulations
         relating to the compensation of employees and funding of employee
         pension plans.

                  14.15. Proceeds of Collateral. Forthwith upon receipt, pay to
         Lender all proceeds of Collateral, whereupon such proceeds shall be
         applied to the Obligations in an order and manner as shall be
         determined in the discretion of Lender.

                  14.16. Delivery of Documents. Notify Lender if any proceeds of
         Receivables shall include, or any of the Receivables shall be evidenced
         by, notes, trade acceptances or instruments or documents, or if any
         Inventory is covered by documents of title or chattel paper, whether or
         not negotiable, and if required by Lender, immediately deliver them to
         Lender appropriately endorsed. Each Borrower waives protest regardless
         of the form of the endorsement. If either Borrower fails to endorse any
         instrument or document, Lender is authorized to endorse it on the
         applicable Borrower's behalf provided Lender has provided such Borrower
         with notice of such endorsement, except for checks and wire transfer
         authorizations for which Lender shall not be required to give such
         notice.

                                       34
<PAGE>

                  14.17. United States Contracts. If any of the Eligible
         Receivables arises out of a contract with the United States or any of
         its departments, agencies or instrumentalities, immediately notify
         Lender, and if required by Lender, execute any necessary instruments in
         order that all money due or to become due under such contract shall be
         assigned to Lender and proper notice of the assignment given under the
         Federal Assignment of Claims Act.

                  14.18. Accounting System. Maintain an accounting system
         whereby Receivables aging shall be formatted alphabetically by Account
         Debtor and coded to identify all invoices that are not for time and
         material, including, without limitation, fixed price, software,
         business solutions, training, employee placement and bill-in advance,
         the foregoing to Lender's satisfaction.

                  14.19. Validity/Support Guaranty. At all times during the term
         hereof, each Borrower shall cause an authorized officer of each such
         Borrower (e.g., president, chief executive officer, etc.), such
         officer's authority to be evidenced by appropriate corporate
         resolutions and otherwise acceptable to Lender in all respects, to be
         bound under a Validity and Support Agreement.

                  14.20. TACT Software. Borrower TACT shall cause TACT Software
         Inc. to refrain from conducting future business and to winddown the
         operations of TACT Software Inc. and Borrower TACT shall not permit
         TACT Software Inc. to hold any material assets.

         15. NEGATIVE COVENANTS. So long as either Borrower shall have any
         Obligations to Lender hereunder and unless Lender has first consented
         thereto in writing, Borrowers shall not:

                  15.1. Indebtedness. Create, incur, assume or suffer to exist,
         voluntarily or involuntarily, any Indebtedness, except (i) Obligations
         to Lender, (ii) trade debt incurred in the ordinary course of the
         applicable Borrower's business, (iii) purchase money financing and
         equipment leases not to exceed Seven Hundred Fifty Thousand Dollars
         ($750,000) in any fiscal year, (iv) existing Indebtedness described on
         Schedule 7.18; (v) the Permitted Zielczynski Debt but only so long as
         the repayment of such debt has been subordinated to the payment of the
         Obligations pursuant to the terms and conditions set forth in the
         Subordination Agreement executed in favor of Lender by Piotr a/k/a
         Peter Zielczynski, and (vi) the Permitted Seller Debt but only so long
         as the repayment of such debt has been subordinated to the payment of
         the Obligations pursuant to the terms and conditions set forth in the
         Subordination Agreement executed in favor of Lender by Piotr a/k/a
         Peter Zielczynski, Sanjeev Welling, Ilan Nachmany, William P. Miller,
         Robert E. Duncan and bCompliant, Inc.

                  15.2. Mergers; Consolidations; Acquisitions. Enter into any
         merger, consolidation, reorganization or recapitalization after the
         date hereof with any other Person except for such mergers,
         consolidations, reorganizations and recapitalizations that (i) have
         been disclosed to and consented to by Lender in writing, such consent
         not to be unreasonably withheld, and (ii) do not have a Material
         Adverse Effect; take any formal steps to dissolve or to liquidate all
         or substantially all of the assets of either Borrower except for such
         liquidations that have been disclosed to and consented to by Lender in
         writing; conduct any part of its business through any corporate
         subsidiary, unincorporated association or other entity not disclosed on
         Schedule 15.2; acquire the stock or assets of any Person, whether by
         merger, consolidation, purchase of stock or otherwise except for
         mergers, consolidations, purchases of stock or otherwise that have been
         disclosed to and consented to by Lender; or acquire all or any
         substantial part of the properties of any Person except for
         acquisitions that have been disclosed to and consented to by Lender.

                                       35
<PAGE>

                  15.3. Sale or Disposition. Sell or dispose of all or any
         portion of its assets (as that term is defined in accordance with
         Generally Accepted Accounting Principles) or grant any Person an option
         to acquire any such assets: provided, however, that the foregoing shall
         not prohibit (a) sales of Inventory in the ordinary course of business;
         (b) the sale of Equipment that is of de minimus value and of no further
         use in the operations of either Borrower's business; (c) as required by
         Governmental Rules; (d) in transactions relating to T3 Media, Inc.,
         subject to the provisions of Section 15.25 hereof, and (e) as required
         by contractual obligations existing on the date hereof in an amount not
         to exceed $500,000.00, or as otherwise provided for in this Agreement;
         so long as there are no Events of Default hereunder and the proceeds of
         any such sales are applied to any overline or overadvance, then to
         unpaid interest, fees and expenses, then to the outstandings under the
         Revolving Loan. The foregoing to the contrary notwithstanding, in no
         event shall either Borrower sell, assign or transfer its Receivables
         (except as it relates to the existing indebtedness of T3 Media, Inc. to
         Borrower TACT that has been disclosed to Lender as of the date hereof).

                  15.4. Defaults. Permit any landlord, mortgagee, trustee under
         deed of trust or lienholder to declare a default under any lease,
         mortgage, deed of trust or lien on real estate owned or leased by
         either Borrower, which default remains uncured for a period in excess
         of thirty (30) days from its occurrence, unless such default is being
         contested by the applicable Borrower in good faith by appropriate
         proceedings being diligently conducted.

                  15.5. Limitations on Liens. Suffer (i) any Lien, encumbrance,
         mortgage or security interest on any Receivables, or (ii) any Lien,
         encumbrance, mortgage or security interest on any other property of
         either Borrower which Lien, encumbrance, mortgage or security interest
         remains undischarged or unsatisfied for a period in excess of thirty
         (30) days after the applicable Borrower receives notification of its
         existence, except:

                           (a) Liens at any time granted in favor of Lender;

                           (b) Liens for taxes not yet due or being contested,
                  but only if such Lien does not have a Material Adverse Effect;

                           (c) Liens securing the claims or demands of
                  materialmen, mechanics, carriers, warehousemen, landlords and
                  other like Persons for labor, materials, supplies or rentals
                  incurred in the ordinary course of the applicable Borrower's
                  business, but only if the payment thereof is not at the time
                  required and only if such Liens are junior in priority to the
                  Liens in favor of Lender;

                           (d) Liens resulting from deposits made in the
                  ordinary course of business in connection with workmen's
                  compensation, unemployment insurance, social security and
                  other like laws;

                                       36
<PAGE>

                  (e) such other Liens as appear on Schedule 7.17 attached
         hereto, if any.

                  15.6. Dividends and Distributions. Pay any cash dividends
         (provided, however, that payment of cash dividends on TACT's Series A
         and Series B Preferred Stock is permitted so long as no Event of
         Default has occurred and is continuing hereunder), make any capital
         distribution in cash or other property or return of capital, or
         purchase or redeem any of its stock or other securities (provided,
         however, that annual repurchases of TACT's common stock up to $250,000
         in any one fiscal year is permitted so long as no Event of Default has
         occurred and is continuing hereunder), or retire any of its stock, or
         take any action which would have an effect equivalent to any of the
         foregoing, except that either Borrower may pay stock dividends and make
         non-cash stock splits.

                  15.7. Borrowers' Names and Offices. Transfer either Borrower's
         chief executive office or change its company name or office where it
         maintains records (including computer printouts and programs) with
         respect to Receivables, except upon not less than thirty (30) days
         advance written notice to Lender and after the delivery to Lender of
         financing statements in form and content satisfactory to Lender;
         provided, however, in no event shall such Transfer be permitted if it
         shall render unperfected or otherwise impair Lender's security interest
         in the Collateral.

                  15.8. Sales Terms. Sell merchandise on the basis of any of the
         following: a sale in which payment in full is not due within ninety
         (90) days of the original invoice date; a bill-and-hold sale; a
         consignment sale; a sale and return; "guaranteed sale" (i.e., one in
         which a vendor guarantees resale by vendee or agrees to accept return
         of the goods); or any other sale pursuant to which vendor agrees to
         accept the return of the goods, or to exchange the same upon the
         happening of any event other than failure to conform with quality
         specifications except where Lender has been first advised of such
         proposed transaction and consented thereto; provided, however, that (i)
         the foregoing restrictions shall apply only to Eligible Receivables,
         and (ii) Borrower shall notify Lender in writing if more than ten
         percent (10%) of Borrower's Receivables (excluding Eligible
         Receivables) arise from sales made on any of the foregoing bases.

                  15.9. Fiscal Year. Change its Fiscal Year.

                  15.10. Intentionally omitted.

                  15.11. Intentionally omitted.

                  15.12. Guaranties; Contingent Liabilities.

                           (a) Assume, guarantee, endorse, contingently agree to
                  purchase or otherwise become liable upon the obligation of any
                  Person, except by the endorsement of negotiable instruments
                  for deposit or collection or similar transactions in the
                  ordinary course of business, except for contractual
                  obligations existing on the date hereof and Borrowers
                  represent the maximum aggregate liability thereunder is not
                  more than $100,000.00 in the combined aggregate, and, except
                  for the indebtedness of T3 Media Inc. to Borrower TACT, in an
                  amount of up to $800,000.00, or

                                       37
<PAGE>

                           (b) Agree to maintain the working capital or net
                  worth of any Person or to make investments in any Person
                  (except for short-term investments of excess cash as herein
                  permitted, and except for the indebtedness of T3 Media, Inc.
                  to Borrower TACT existing at March 31, 2003 that has been
                  disclosed to Lender or as contemplated in Section 15.25
                  hereof).

                  15.13. Removal of Collateral. Remove, or cause or permit to be
         removed, any of the Collateral or other assets from the premises where
         such Collateral is currently located and set forth on Schedule 7.15
         hereof, except for sales of Inventory in the ordinary course of
         business or unless otherwise expressly permitted under the terms of
         this Agreement.

                  15.14. Transfer of Notes or Accounts. Sell, assign, transfer,
         discount or otherwise dispose of any Eligible Receivables or any
         promissory note or other instrument payable to it with or without
         recourse, except as it relates to the indebtedness of T3 Media, Inc. to
         Borrower TACT existing as of March 31, 2003 that has been disclosed to
         Lender and such additional indebtedness permitted pursuant to Section
         15.25 hereof.

                  15.15. Settlements. Compromise, settle or adjust any claim
         relating to any of the Collateral, except as it relates to the
         indebtedness of T3 Media, Inc. to Borrower TACT existing as of March
         31, 2003 that has been disclosed to Lender, and subject to the
         exceptions set forth in Section 15.25 hereof.

                  15.16. Modification of Governing Documents. Make or permit any
         change, alteration or modification of its Certificate of Incorporation
         or By-laws which would result in a Material Adverse Effect, or make any
         other change, alteration or modification thereto except upon prompt
         written notice to Lender.

                  15.17. Change of Business. Cause or permit a material change
         in the nature of its business as conducted on the date of this
         Agreement.

                  15.18. Change of Accounting Practices. Change its present
         accounting principles or practices in any respect, except as may be
         required by changes in Generally Accepted Accounting Principles.

                  15.19. Inconsistent Agreement. Enter into any agreement
         containing any provision that would be violated by the performance of
         the Obligations or either Borrower's obligations under any document
         delivered or to be delivered by it in connection with this Agreement or
         any Loan Document.

                  15.20. Loan or Advances. Make any loans or advances to any
         Person, except loans or advances to employees or shareholders of
         Borrowers in a combined aggregate amount of up to $25,000.00
         outstanding at anytime, except for the indebtedness of T3 Media, Inc.
         to Borrower TACT existing as of March 31, 2003 that has been disclosed
         to Lender or as contemplated in Section 15.25 hereof.

                                       38
<PAGE>

                  15.21. Investments. Make any investment in any person, firm or
         corporation, including, without limitation, in any Affiliates or from
         any Affiliates or subsidiaries not existing on the date hereof; except
         that Borrowers may make such investments to such persons, firms or
         corporations in the combined aggregate amount of up to $500,000
         provided that Borrowers are in compliance with the Core EBITDA covenant
         set forth in Section 15.23 for two (2) consecutive quarters, and except
         for the investments permitted pursuant to Section 15.25 hereof. The
         foregoing to the contrary notwithstanding, Borrowers shall not make any
         investment in or loan any money to TACT Software Inc., except loans of
         up to $25,000.00 outstanding at anytime.

                  15.22. Intentionally Omitted.

                  15.23. Core EBITDA. Shall maintain Core EBITDA of no less than
         the amounts set forth below, tested quarterly at the end of each
         calendar quarter during the periods set forth below:

                  Amount            Time Period
                  ------            -----------
                  $25,000.00        during any period commencing on January 1 of
                                    any calendar year and ending on March 31 of
                                    the same calendar year

                  $50,000.00        during any period commencing on January 1 of
                                    any calendar year and ending on June 30 of
                                    the same calendar year

                  $75,000.00        during any period commencing on January 1 of
                                    any calendar year and ending on September 30
                                    of the same calendar year

                  $100,000.00       during any period commencing on January 1 of
                                    any calendar year and ending on December 31
                                    of the same calendar year

                  15.24. Capital Expenditures.

                  (a) Capital Expenditures shall not exceed the combined
         aggregate levels set forth below, during the periods set forth below:

                  Amount            Time Period
                  ------            -----------
                  $800,000.00       during any calendar year, commencing with
                                    the calendar year beginning January 1, 2003

                  (b) No carry forward to subsequent calendar years shall be
         permitted in the event that Borrowers' Capital Expenditures for a given
         calendar year are less than the combined maximum amount set forth above
         for such period.

                                       39
<PAGE>

                  15.25. T3 Media, Inc. Investments.

                  (a) Make loans or cash advances to or otherwise make
         investments in T3 Media, Inc. (collectively, "T3 Media Investments") in
         excess of the levels set forth below, during the periods set forth
         below:

                  Amount            Time Period
                  ------            -----------

                  $50,000.00        during any calendar year, commencing with
                                    the calendar year beginning January 1, 2003

                  (b) No carryforward to subsequent periods shall be permitted
         in the event that Borrower TACT's T3 Media, Inc. Investments for a
         given period are less than the maximum amount set forth above for such
         period.

                  (c) The assumption by Borrower TACT of any obligations of T3
         Media, Inc. existing at March 31, 2003, and disclosed to Lender, shall
         not constitute T3 Media Investments for the purposes of this Section;
         provided, however, all such T3 Media Investments shall otherwise be
         subject to all of the terms and conditions of this Agreement.

                  (d) Borrowers shall not make any additional loans to or cash
         advances to or otherwise make investments in Always On or Methoda.

                  15.26. Stock Purchase Agreement. Shall not make any remaining
         payments under the Stock Purchase Agreement [i.e., two
         non-interest-bearing principal installments of $100,000 and $200,000 to
         be made, respectively, on April 1, 2004 and January 2, 2005] if (a) an
         Event of Default exists and is continuing at the time of any such
         payment (not including any technical or reporting defaults as to which
         any applicable cure period has not yet expired) or (b)after giving
         effect to any such payment, Borrowers would fail to have a positive
         borrowing base availability.

                  15.27. Permitted Zielczynski Debt. Shall not make any
         remaining payments under the Permitted Zielczynski Debt if (a) an Event
         of Default exists and is continuing at the time of any such payment
         (not including any technical or reporting defaults as to which any
         applicable cure period has not yet expired) or (b)after giving effect
         to any such payment, Borrowers would fail to have a positive borrowing
         base availability.

                                       40
<PAGE>

        16. FURTHER RIGHTS OF LENDER.

                  16.1. Lender's Right to Take Certain Actions. Each Borrower
         shall do all things and shall deliver all instruments requested by
         Lender to protect or perfect any security interest, mortgage or Lien
         given hereunder or in connection herewith including, without
         limitation, financing statements under the UCC and all documents and
         instruments necessary under the Federal Assignment of Claims Act. Upon
         the occurrence of an Event of Default and in the event that Lender
         requests, each Borrower shall instruct its Account Debtors to remit
         payments directly to Lender or to Lender's designee. Lender may
         examine, inspect and copy or make extracts from all property and all
         books and records of each Borrower at any time and all such property
         and all books and records shall be kept confidential in accordance with
         the requirements of Section 8.10 of this Agreement subject to the
         limitations set forth in Section 14.11. Each Borrower authorizes Lender
         to execute alone any financing statements or other documents or
         instruments that Lender may require to perfect, protect or establish
         any Lien or security interest granted to Lender by each Borrower and
         further authorizes Lender to sign each such Borrower's name on the
         same. Each Borrower appoints such person or persons as Lender may
         designate as each such Borrower's attorney-in-fact to endorse the name
         of each such Borrower on any checks, notes, drafts or other forms of
         payment or security that may come into the possession of Lender or any
         Affiliate of Lender, to sign each such Borrower's name on invoices or
         bills of lading, drafts against customers, notice of assignment,
         verifications and schedules and, generally, and all such property and
         all books and records shall be kept confidential in accordance with the
         requirements of Section 8.10 of this Agreement, to do all things
         necessary to carry out this Agreement. Such attorney-in-fact may notify
         the Post Office authorities to change the address of delivery of mail
         to an address designated by Lender, and open and dispose of mail
         addressed to either Borrower. The powers granted herein, being coupled
         with an interest, are irrevocable, and each Borrower approves and
         ratifies all acts of the attorney-in-fact, provided, however, that such
         powers shall automatically terminate upon the indefeasible repayment in
         full of the Indebtedness. Neither Lender nor the attorney-in-fact shall
         be liable for any act or omission, error in judgment or mistake of law
         so long as the same is not willful or grossly negligent. Lender agrees
         that it shall endeavor to give Borrowers prompt written notice of any
         such actions but Lender's failure to give any such notice shall not
         impair or restrict Lender's rights hereunder.

                  16.2. Lender's Right to Perform Either Borrower's Obligations.
         In the event that either Borrower shall fail to purchase or maintain
         insurance, or to pay any tax, assessment, government charge or levy,
         except as the same may be otherwise permitted hereunder, or in the
         event that any lien, encumbrance or security interest prohibited hereby
         shall not be paid in full or discharged pursuant to the terms of this
         Agreement, or in the event that either Borrower shall fail to perform
         or comply with any other covenant, promise or Obligation to Lender
         hereunder or under any Loan Document, Lender may, but shall not be
         required to, perform, pay, satisfy, discharge or bond the same for the
         joint and several account of Borrowers, and all monies so paid by
         Lender, including actual attorneys' fees and reasonable expenses, shall
         be treated as an Advance hereunder to Borrowers. Lender agrees that it
         shall endeavor to give Borrowers prompt written notice of any such
         actions but Lender's failure to give any such notice shall not impair
         or restrict Lender's rights hereunder.

                  16.3. Lender's Right of Set-Off. Lender may, at any time upon
         the occurrence of an Event of Default hereunder and without any further
         notice to either Borrower, set-off or apply any and all deposits
         (general or special, time or demand, provisional or final) at any time
         held by, or any other Indebtedness at any time owing by Lender or any
         Affiliate of Lender or any participant in Lender's loans, to Borrowers
         to or for the credit or the account of Borrowers against any Obligation
         irrespective of whether any demand has been made hereunder or whether
         such Obligation is mature. The rights given hereunder are cumulative
         with all of the other rights and remedies of Lender, including other
         rights of set-off, under this Agreement, any other agreement or by
         operation of law or otherwise and shall also constitute a security
         interest in such deposits. Lender agrees that it shall endeavor to give
         Borrowers prompt written notice of any such actions but Lender's
         failure to give any such notice shall not impair or restrict Lender's
         rights hereunder.

                                       41
<PAGE>

         17. CONDITIONS PRECEDENT; CLOSING.

                  17.1. Conditions Precedent. As conditions precedent to the
         making of any Advance hereunder, Borrowers shall deliver to Lender, or
         shall cause to be delivered to Lender the following documents duly
         executed and in form satisfactory to Lender and its counsel:

                  (a) the Revolving Note;

                  (b) appropriate company resolutions of each Borrower;

                  (c) the Subordination Agreements;

                  (d) the favorable written opinion of counsel to Borrowers,
         such opinion to be in form and substance satisfactory to Lender;

                  (e) certificates evidencing all insurance coverages required
         by this Agreement, (including, without limitation, credit insurance
         policies) together with loss payee endorsements for all such coverages
         naming Lender as lender loss payee;

                  (f) a copy of each Borrower's Certificate of Incorporation and
         By-laws and all amendments thereto;

                  (g) a Good Standing Certificate for Borrower TACT issued by
         the Secretary of State of the State of New York and each other
         jurisdiction where the conduct of such Borrower's business activities
         or the ownership of its Properties necessitates qualification;

                  (h) a Good Standing Certificate for Borrower IOT issued by the
         Secretary of State of the State of New Jersey and each other
         jurisdiction where the conduct of such Borrower's business activities
         or the ownership of its Properties necessitates qualification;

                  (i) evidence that Borrower TACT's franchise taxes payable to
         the New York State Department of Taxation have been paid;

                  (j) evidence that Borrower IOT's franchise taxes payable to
         the New Jersey State Department of Taxation have been paid;

                  (k) an initial Borrowing Base Certificate dated as of the date
         hereof;

                  (l) all UCC financing statements required by Lender, all of
         which Borrowers authorize Lender to record and file;

                  (m) a certificate, dated as of the date hereof and executed by
         an authorized officer of each Borrower, stating that, as of such date,
         no Event of Default or Default exists and to such further effect as
         Lender or its counsel may require;

                                       42
<PAGE>

                  (n) all UCC, tax lien and judgment searches deemed necessary
         by Lender in form and substance satisfactory to Lender, which searches
         shall be obtained by Lender;

                  (o) payment of all fees and expenses which are payable to
         Lender, its counsel, or to third-party providers of services related to
         the closing of this transaction;

                  (p) the Validity/Support Guaranty to be delivered by Shmuel
         BenTov; and

                  (q) such other documents, instruments, agreements, and
         information as Lender or its counsel shall reasonably request.

                  17.2. Conditions to All Extensions of Credit.

                  (a) Lender's obligations to advance any Loan is subject to the
         condition that, as of the date of the advancing of such Loan, no Event
         of Default or Default shall have occurred and be continuing and that
         the matters set forth in Section 7, Section 10, Section 11 and Section
         13 and the representations set forth in the Loan Documents continue to
         be true and complete.

                  (b) Each Borrower's acceptance of each Loan under this
         Agreement shall constitute a confirmation, as of the date of the
         advancing of such Loan, of the matters set forth in Section 7, Section
         10, Section 11 and Section 13 of the representations set forth in the
         Loan Documents, and that no Default or Event of Default then exists. If
         requested by Lender, each Borrower shall further confirm such matters
         by delivery of a certificate dated the day of the advancing of such
         Loan and signed by an authorized officer of the applicable Borrower.

         18. TERM.

                  18.1. Revolving Loan Availability. Unless sooner terminated by
         Lender pursuant to the terms of this Agreement, the period during which
         the Revolving Loan shall be available shall initially be a period
         commencing on the date hereof and concluding on the Termination Date.

                  18.2. Voluntary Termination. Borrowers shall give Lender at
         least fifteen (15) days' advance written notice ("Termination Notice")
         of Borrowers' election to terminate the availability of Revolving Loans
         hereunder prior to the Termination Date. The Termination Notice shall
         be irrevocable and shall specify the effective date of such
         termination, which effective date shall not be less than fifteen (15)
         days after the giving of the Termination Notice and shall be in no
         event later than the Termination Date.

         19. EVENTS OF DEFAULT.

                  19.1. Defaults. Upon the happening of any of the following
         events (collectively, "Events of Default"):

                  (a) if either Borrower shall fail to make payment when due of
         any Obligation under this Agreement or any Loan Document, provided,
         however, that, for purposes of each Borrower's obligation to make
         payment of any Obligations to Lender comprised of Obligations to
         reimburse Lender for or to pay field examination expenses and legal
         fees and expenses incurred by Lender after the date hereof, no Event of
         Default shall be deemed to have occurred, unless sixty (60) days have
         elapsed from the date of demand therefor by Lender; provided that,
         Lender's right hereunder to charge such fees and expenses to Borrowers
         shall not be effected by the foregoing and in the event Lender so
         charges Borrowers for such fees and expenses any such incipient Event
         of Default shall be deemed cured thereby; or

                                       43
<PAGE>

                  (b) if either Borrower shall fail to comply with any terms,
         conditions, covenant, warranty or representation contained in Article
         11 or Article 15 of this Agreement; or

                  (c) if either Borrower shall fail to comply with any term,
         condition, covenant or warranty of or in this Agreement, any other Loan
         Document or any other agreement between Lender and either Borrower,
         other than in Article 11 or Article 15 of this Agreement, and such
         failure continues for a period in excess of twenty (20) days after
         notice thereof is given by Lender to Borrowers; or

                  (d) if either Borrower shall cease to be Solvent, make an
         assignment for the benefit of its creditors, call a meeting of its
         creditors to obtain any general financial accommodation, suspend
         business or if any case under any provision of the Bankruptcy Code,
         including provisions for reorganizations, shall be commenced by or
         against either Borrower; or

                  (e) if any statement or representation contained in any
         financial statement or certificate delivered by either Borrower to
         Lender shall be false, in any material respect, when made; or

                  (f) if any federal tax lien is filed of record against either
         Borrower or any Guarantor and is not bonded or discharged within ten
         (10) days; or

                  (g) if either Borrower's independent public accountants shall
         refuse to deliver any financial statement required by this Agreement
         within ten (10) days after written demand by Lender for delivery of
         such financial statements; or

                  (h) if a receiver, trustee or equivalent officer shall be
         appointed for all or any of the assets of either Borrower; or

                  (i) if a judgment for more than One Hundred Thousand Dollars
         ($100,000) shall be entered against either Borrower in any action or
         proceeding and shall not be stayed, vacated, bonded, paid, discharged
         or applied in good faith within twenty (20) days, or in the case of a
         judgment against Borrower TACT relating to the T3 Permitted
         Indebtedness (as defined below) in which case five (5) days shall be
         allowed to stay, vacate, bond, pay, discharge or apply in good faith;
         provided, that, no Event of Default shall be deemed to have occurred in
         the case of any judgment where the claim is covered by insurance and
         the insurance company has accepted liability therefor; or

                  (j) if any obligation of either Borrower in respect of
         Indebtedness shall be declared to be or shall become due and payable
         prior to the stated maturity thereof or such obligation shall not be
         paid as and when the same becomes due and payable; or there shall occur
         any event or condition which constitutes an event of default under any
         mortgage, indenture, instrument, agreement or evidence of indebtedness
         relating to any obligation of either Borrower in respect of any such
         Indebtedness the effect of which is to permit the holder or the holders
         of such mortgage, indenture, instrument, agreement or evidence of
         Indebtedness, or a trustee, agent or other representative on behalf of
         such holder or holders, to cause the Indebtedness evidenced thereby to
         become due prior to its stated maturity; provided, that, the foregoing
         shall not include (a) Indebtedness to Lender; (b) Indebtedness
         aggregating up to $800,000.00 owing by T3 Media, Inc. and guaranteed by
         Borrower TACT ("T3 Permitted Indebtedness"), so long as, Borrower TACT
         gives Lender prompt notice of the acceleration thereof; or (c)
         Indebtedness arising in connection with any real property lease
         obligations up to $50,000.00, so long as no judgments are entered
         against either Borrower as a result of either Borrower's failure to pay
         such Indebtedness; provided, that, subsection c (except for real
         property lease obligations for real property located in New York) ; or

                                       44
<PAGE>

                  (k) upon the happening of any Reportable Event which Lender in
         its discretion determines could reasonably be expected to constitute
         grounds for the termination of any Plan, or if a trustee shall be
         appointed by an appropriate United States District Court or other court
         of administrative tribunal to administer any Plan, or if the Pension
         Benefit Guaranty Corporation shall institute proceedings to terminate
         any Plan or to appoint a trustee to administer any Plan; or

                  (l) upon the occurrence and continuance of any Material
         Adverse Effect, which in the sole and absolute opinion of Lender,
         impairs Lender's security or increases its risks; or

                  (m) if Shmuel BenTov ceases to own at least ten percent (10%)
         of the shares of voting stock of or other ownership interests in
         Borrower TACT; or

                  (n) if Borrowers make any payment under the Stock Purchase
         Agreement which violates or would cause a violation of Section 15.26.

                  (o) if Borrowers make any payment under the Permitted
         Zielczynski Debt which violates or would cause a violation of Section
         15.27.

                  (p) if Borrower TACT ceases to own 100% of the issued and
         outstanding shares of voting stock of or other ownership interests in
         Borrower IOT without the prior written consent of Lender; or

                  (q) upon the happening of any of the events described in
         Section 19.1(d), Section 19.1(e), Section 19.1(g), Section 19.1(h),
         Section 19.1(i) or Section 19.1(j) or if any Guarantor purports to
         terminate its guaranty or if any Validity/Support Guarantor purports to
         terminate his/its Validity/Support Guaranty or upon the death of any
         Guarantor or Validity/Support Guarantor that is a natural person;

         then and in any such event, Lender may terminate this Agreement without
         prior notice or demand to either Borrower or may demand payment of all
         Obligations (whether otherwise then payable on demand or not) without
         terminating this Agreement and shall, in any event, be under no further
         responsibility to extend any credit or afford any financial
         accommodation to either Borrower, whether under this Agreement or
         otherwise.

                  19.2. Obligations Immediately Due. Upon the effective date of
         termination for any reason, all of Borrowers' Obligations to Lender,
         including but not limited to the Loans, shall immediately become due
         and payable without further notice or demand.

                  19.3. Continuation of Security Interests. Notwithstanding any
         termination, until all Obligations of Borrowers shall have been fully
         paid and satisfied, Lender shall retain all security in and title to
         all existing and future Receivables, General Intangibles, Inventory,
         Equipment, Fixtures, Investment Property, and other Collateral held by
         Lender hereunder or under any other agreement and Borrowers shall
         continue to assign Receivables and consign Inventory to Lender and
         continue to turn over collections to Lender.

                                       45
<PAGE>

         20. REMEDIES OF LENDER.

                  20.1. Rights Under UCC. Upon the occurrence of any Event of
         Default or upon any termination of this Agreement following an Event of
         Default, then Lender shall have, in addition to all of its other rights
         under this Agreement or otherwise (which rights shall be cumulative),
         all of the rights and remedies of a secured party under the UCC and
         shall have the right to enter upon any premises where the Collateral is
         kept and peacefully retake possession thereof. Lender may, without
         demand, advertising or notice all of which each Borrower hereby waives
         (except as the same may be required by law), sell, lease, dispose of,
         deliver and grant options to a third party to purchase, lease or
         otherwise dispose of any and all Receivables, General Intangibles,
         Inventory, Equipment, Fixtures, Investment Property or other security
         or Collateral held by it or for its account at any time or times in one
         or more public or private sales or other dispositions, for cash, on
         credit or otherwise, as such prices and upon such terms as Lender, in
         its discretion, deems advisable. Notice of any public sale shall be
         sufficient if it describes the security or Collateral to be sold in
         general terms, stating the amounts thereof, the nature of the business
         in which such Collateral was created and the location and nature of the
         properties covered by the other security interests or mortgages and the
         prior liens thereon, and is published at least once in The Wall Street
         Journal not less than ten (10) business days prior to the date of sale.
         If The Wall Street Journal is not then being published, publication may
         be made in lieu thereof in any newspaper then being circulated in the
         City of New York which Lender may elect. Notice of any public sale
         shall be sufficient if it describes the security or Collateral to be
         sold in general terms, stating the amounts thereof, the nature of the
         business in which such Collateral was created and the location and
         nature of the properties covered by the other security interests or
         mortgages and the prior liens thereon. Without requiring notice to
         either Borrower, all requirements of reasonable notice under this
         Article shall be met if such notice is mailed, postage prepaid, to each
         Borrower at its address set forth above or such other address as it may
         have, in writing, provided to Lender, at least ten (10) days before the
         time of such sale or disposition. Lender may, if it deems it
         reasonable, postpone or adjourn any sale of any Collateral from time to
         time by an announcement at the time and place of the sale to be so
         postponed or adjourned without being required to give a new notice of
         sale, provided, however, that Lender shall provide each Borrower with
         written notice of the time and place of such postponed or adjourned
         sale. Lender may be the purchaser at any such sale if it is public, and
         payment may be made, in whole or in part, in respect of such purchase
         price by the application of Obligations due from either Borrower to
         Lender. Each Borrower shall be jointly and severally obligated for, and
         the proceeds of sale shall be applied first to, the costs of retaking,
         refurbishing, storing, guarding, insuring, preparing for sale, and
         selling the Collateral, including the fees and disbursements of
         attorneys, auctioneers, appraisers and accountants employed by Lender.
         Proceeds shall then be applied to the payment in whatever order Lender
         may elect, of all Obligations of either Borrower. Lender shall return
         any excess to Borrowers, as their interests may appear, and Borrowers
         shall remain jointly and severally liable for any deficiency.

                                       46
<PAGE>

                  20.2. Collections; Modification of Terms. Without limiting any
         rights Lender may have pursuant to Section 20.1 above, upon the
         occurrence and during the continuance of an Event of Default, Lender
         may demand, sue for, collect and give receipts for any money,
         instruments or property payable or receivable on account of or in
         exchange for any of the Collateral, or make any compromises it deems
         necessary or proper, including without limitation, extending the time
         of payment, permitting payment in installments, or otherwise modifying
         the terms or rights relating to any of the Collateral, all of which may
         be effected without notice to or consent by either Borrower and without
         otherwise discharging or affecting the Obligations, the Collateral or
         the security interest granted under this Agreement or any of the Loan
         Documents.

                  20.3. Notification of Account Debtors. Without limiting any
         rights of Lender pursuant to this Agreement or under applicable law,
         after a Default or Event of Default has occurred, (i) Borrower, at the
         request of Lender, shall notify the Account Debtors of Lender's
         security interest in either Borrower's Receivables; and (ii) Lender may
         notify the Account Debtors on any of the Receivables to make payment
         directly to Lender, and Lender may endorse all items of payment
         received by it that are payable to each Borrower.

                  20.4. Insurance. Without limiting any rights of Lender
         pursuant to this Agreement or under applicable law, after a Default or
         Event of Default has occurred, Lender may file proofs of loss and claim
         with respect to any of the Collateral with the appropriate insurer, and
         may endorse in its own and the applicable Borrower's name any checks or
         drafts constituting insurance proceeds. Lender agrees that it shall
         endeavor to give Borrowers prompt written notice of any such actions
         but Lender's failure to give any such notice shall not impair or
         restrict Lender's rights hereunder.

                  20.5. Waiver of Rights by Borrowers. Except as may be
         otherwise specifically provided herein or in any other agreement
         between Lender and either Borrower which may be applicable, each
         Borrower waives, to the extent permitted by law, any bonds, security or
         sureties required by any statute, rule or otherwise by law as an
         incident to any taking of possession by Lender of property subject to
         Lender's Lien. Each Borrower authorizes Lender, upon the occurrence of
         an Event of Default, to peacefully enter upon any premises owned by or
         leased to either Borrower without obligation to pay rent or for use and
         occupancy, through self help, without judicial process and without
         having first given notice to either Borrower or obtained an order of
         any court.

                  20.6. Lender's Rights. Each Borrower agrees that Lender shall
         not have any obligation to preserve rights to any Collateral against
         prior parties or to marshall any Collateral of any kind for the benefit
         of any other creditor of either Borrower or any other person. After the
         occurrence of an Event of Default, Lender is hereby granted a license
         or other right to use, without charge, each Borrower's labels, patents,
         copyrights, rights of use of any name, trade secrets, trade names,
         trademarks and advertising matter, or any property of a similar nature,
         as it pertains to the Collateral, in completing production of,
         advertising for sale, and selling any Collateral and each Borrower's
         rights under all licenses and any franchise, sales or distribution
         agreements shall inure to Lender's benefit for such purpose, subject to
         any limitations set forth in the relevant license(s), franchise(s),
         sales or distribution agreements, including, without limitation, limits
         on assignment rights.

                                       47
<PAGE>

         21. GENERAL PROVISIONS.

                  21.1. Rights Cumulative. Lender's rights and remedies under
         this Agreement shall be cumulative and non-exclusive of any other
         rights or remedies which it may have under any other agreement or
         instrument, by operation of law or otherwise.

                  21.2. Successors and Assigns. This Agreement is entered into
         for the benefit of the parties hereto and their successors and assigns.
         It shall be binding upon and shall inure to the, benefit of the said
         parties, their successors and assigns. Lender shall have the right,
         upon written notice to Borrowers, without the necessity of any further
         consent or authorization by Borrower, to sell, assign, securitize or
         grant participation in all, or a portion of, Lender's interest in the
         Loans, to other financial institutions of the Lender's choice and on
         such terms as are acceptable to Lender in its sole discretion, and
         Lender shall give Borrowers prompt written notice of any such
         assignments, securitizations or participations.

                  21.3. Notice. Wherever this Agreement provides for notice to
         any party (except as expressly provided to the contrary), it shall be
         given by messenger, telegram, certified U.S. mail with return receipt
         requested, or nationally recognized overnight courier with receipt
         requested, effective when received by the corporate party to whom
         addressed, and shall be addressed as follows, or to such other address
         as the party affected may hereafter designate:

                  If to Lender:     Keltic Financial Partners, LP
                                    Attn: Robert N. Laughlin, Managing Partner
                                    555 Theodore Fremd Avenue, Suite C-207
                                    Rye, New York  10580

                  With a copy to:   Meyner and Landis LLP
                                    Attn: John N. Malyska, Esq.
                                    Suite 2500
                                    One Gateway Center
                                    Newark, New Jersey 07102

                  If to TACT:       The A Consulting Team, Inc.
                                    200 Park Avenue South, Suite 1501
                                    New York, New York 10003
                                    Attn: Shmuel BenTov

                  If to IOT:        INTERNATIONAL OBJECT TECHNOLOGY, INC.
                                    77 Brant Avenue
                                    Clark, New Jersey 07066
                                    Attn: Shmuel Ben Tov

                  With a copy in
                  each case to:     Orrick, Herrington & Sutcliffe LLP
                                    666 Fifth Avenue
                                    New York, New York
                                    Attn: Joseph Maloney, Esq.

                                       48
<PAGE>

                  21.4. Strict Performance. The failure, at any time or times
         hereafter, to require strict performance by either Borrower of any
         provision of this Agreement shall not waive, affect or diminish any
         right of Lender thereafter to demand strict compliance and performance
         therewith. Any suspension or waiver by Lender of any Event of Default
         by either Borrower under this Agreement or any of the other Loan
         Documents shall not suspend, waive or affect any other Event of Default
         by either Borrower under this Agreement or any of the other Loan
         Documents, whether the same is prior or subsequent thereto and whether
         of the same or a different type.

                  21.5. Amendments. This Agreement and the other agreements to
         which it refers constitute the complete agreement between the parties
         with respect to the subject matter and may not be changed, modified,
         waived, amended or terminated orally, but only by a writing signed by
         the party to be charged.

                  21.6. Waiver. Each Borrower waives presentment, protest,
         notice of dishonor and notice of protest upon any instrument on which
         it may be liable to Lender as maker, endorser, guarantor or otherwise.

                  21.7. Conflict of Laws. This Agreement shall be governed by
         and construed in accordance with the internal laws of the State of New
         York; provided, however, that if any of the Collateral shall be located
         in any jurisdiction other than New York, the laws of such jurisdiction
         shall govern the method, manner and procedure for foreclosure of
         Lenders' lien upon such Collateral and the enforcement of Lenders'
         other remedies in respect of such Collateral to the extent that the
         laws of such jurisdiction are different from or inconsistent with the
         laws of New York.

                  21.8. Expenses.

                  (a) Each Borrower agrees to pay (i) the actual attorneys' fees
         and expenses of Lender's counsel arising from the negotiation and
         preparation of this Agreement and the other Loan Documents and all
         reasonable expenses, costs, charges and other fees of such counsel of
         Lender incurred in connection therewith, and (ii) Lender's
         out-of-pocket expenses in connection with periodic audits and
         appraisals performed by Lender.

                  (b) If, at any time prior to the occurrence of an Event of
         Default, Lender employs counsel for advice or other representation, or
         incurs legal expenses or other costs or out-of-pocket expenses in
         connection with: (1) the administration of this Agreement or any of the
         other Loan Documents and the transactions contemplated hereby and
         thereby; (2) any litigation, contest, dispute, suit, proceeding or
         action (whether instituted by Lender, each Borrower or any other
         Person) in any way relating to the Collateral, this Agreement or any of
         the other Loan Documents or either Borrower's affairs; (3) the
         perfection of any Lien on the Collateral; (4) any attempt to enforce
         any rights or remedies of Lender against either Borrower or any other
         Person which may be obligated to Lender by virtue of this Agreement or
         any of the other Loan Documents, including, without limitation, the
         Account Debtors; or (5) any attempt to inspect, verify, protect,
         preserve, restore, collect, sell, liquidate or otherwise dispose of or
         realize upon the Collateral; then, in any such event, the actual
         attorneys' fees and expenses arising from such services and all
         reasonable expenses, costs, charges and other fees of such counsel of
         Lender or relating to any of the events or actions described in this
         Section shall be payable on a joint and several basis by Borrowers to
         Lender, and shall be additional Obligations hereunder secured by the
         Collateral; provided, however, such fees and expenses shall in no event
         exceed $20,000.00 per annum.

                                       49
<PAGE>

                  (c) If, upon or after the occurrence of an Event of Default,
         Lender employs counsel for advice or other representation, or incurs
         legal expenses or other costs or out-of-pocket expenses in connection
         with any of the events or actions set forth in subparagraphs (a) or (b)
         of this Section; then, in any such event, the actual attorneys' fees
         and expenses arising from such services and all reasonable expenses,
         costs, charges and other fees of such counsel or of Lender relating to
         any of the events or actions described in subparagraphs (a) or (b) of
         this Section, including, without limitation, the reasonable cost and
         expense to Lender attributable to utilizing Lender's in-house staff for
         such purposes, shall be payable on a joint and several basis by
         Borrowers to Lender, and shall be additional Obligations hereunder
         secured by the Collateral.

                  (d) Additionally, if any taxes (excluding taxes imposed upon
         or measured by the net income of Lender, but including any intangibles
         tax, stamp tax or recording tax) shall be payable on account of the
         execution or delivery of this Agreement, or the execution, delivery,
         issuance or recording of any of the other Loan Documents, or the
         creation of any of the Obligations hereunder, by reason of any existing
         or hereafter enacted federal or state statute, Borrowers on a joint and
         several basis will pay (or will promptly reimburse Lender for the
         payment of) all such taxes, including, but not limited to, any interest
         and penalties thereon, and will indemnify and hold Lender harmless from
         and against liability in connection therewith.

                  (e) Each Borrower shall also reimburse Lender for all other
         expenses incurred by Lender in connection with the transactions
         contemplated under this Agreement or the other Loan Documents,
         including, without limitation, fees in connection with any bank
         account, the Blocked Account, wire charges, ACH Fees and other similar
         costs and expenses; provided, however, that Lender shall use
         commercially reasonable efforts to minimize the occurrence and amount
         of such fees and expenses.

                  21.9. Reimbursements Charged to Revolving Loan. With respect
         to any amount advanced by Lender and required to be reimbursed by
         either Borrower pursuant to the foregoing provisions of Section 21.8,
         it is hereby agreed that Lender may charge any such amount to
         Borrowers' Revolving Loan on the dates such reimbursement is made,
         subject to the provisions of Section 2.6 of this Agreement. Lender
         agrees to provide Borrowers notice of such charges in the monthly
         statement delivered to Borrowers pursuant to Section 9 of this
         Agreement. Borrowers' joint and several obligations under Section 21.8
         shall survive termination of the other provisions of this Agreement.

                  21.10. Waiver of Right to Jury Trial. Each Borrower waives the
         right to trial by jury in the event of any action, suit, proceeding,
         counterclaim or other litigation to which Lender and either Borrower
         are parties in respect of any matter arising under this Agreement or
         any other matter involving either Borrower and Lender, whether or not
         other persons are also parties thereto. Each Borrower acknowledges that
         the foregoing waiver is a material inducement to Lender's entering into
         this Agreement and that Lender is relying on the foregoing waiver in
         its future dealings with each Borrower. Each Borrower represents and
         warrants that it reviewed this jury waiver provision with its legal
         counsel, and has made this waiver knowingly and voluntarily.

                                       50
<PAGE>

         22. INDEMNIFICATION BY BORROWER/WAIVER OF CLAIMS.

                  22.1. Indemnification. Each Borrower hereby covenants and
         agrees on a joint and several basis to indemnify, defend and hold
         harmless Lender and its officers, partners, employees and agents from
         and against any and all claims, damages, liabilities, costs and
         expenses (including with limitation, the fees and expenses of counsel)
         which may be incurred by or asserted against Lender and/or its
         designated agents, and in respect of any claims, damages, liabilities,
         costs and expenses resulting from any breach by either Borrower of any
         representation or warranty made by it herein or in any other Loan
         Document or nonfulfillment of any agreement or covenant of either
         Borrower under this Agreement or in any other Loan Document, in
         connection with:

                  (a) any investigation, action or proceeding arising out of or
         in any way relating to this Agreement, any of the Loans, any of the
         Loan Documents, any other agreement relating to any of the Obligations,
         any of the Collateral, or any act or omission relating to any of the
         foregoing by either Borrower or its officers, directors, agents,
         consultants, advisors or employees; or

                  (b) any taxes, liabilities, claims or damages relating to the
         Collateral or Lender's liens thereon; or

                  (c) the correctness, validity of genuineness of any
         instruments or documents that may be released or endorsed to either
         Borrower by Lender (which shall automatically be deemed to be without
         recourse to Lender in any event), or the existence, character,
         quantity, quality, condition, value or delivery of any goods purporting
         to be represented by any such documents; or

                  (d) any broker's commission, finder's fee or similar charge or
         fee in connection with the Loans and the transactions contemplated in
         this Agreement, provided, however, it is understood that Lender has
         incurred no such fee or charge with respect to this transaction.

                  22.2. Savings Clause for Indemnification. To the extent that
         the undertaking to indemnify, pay and hold harmless set forth in
         Section 22.1 above may be unenforceable because it is violative of any
         law or public policy, each Borrower shall contribute the maximum
         portion which it is permitted to pay and satisfy under applicable law
         to the payment and satisfaction of all matters referred to under
         Section 22.1.

                  22.3. Waiver. To the extent permitted by applicable law, no
         claim may be made by either Borrower or any other Person against Lender
         or any of its Affiliates, partners, officers, employees, agents,
         attorneys or consultants for any special, indirect, consequential or
         punitive damages in respect of any claim for breach of contract, tort
         or any other theory of liability arising out of or related to the
         transactions contemplated by this Agreement or any act, omission or
         event occurring in connection therewith; and each Borrower hereby
         waives, releases and agrees not to sue upon any claim for any such
         special, indirect, consequential or punitive damages, whether or not
         accrued and whether or not known or suspected to exist in its favor.
         Neither Lender nor any of its Affiliates, partners, officers, employees
         or agents shall be liable for any action taken or omitted to be taken
         by it or them under or in connection with this Agreement or the
         transactions contemplated hereby, except for its or their own gross
         negligence or willful misconduct.

                                       51
<PAGE>

         23. MISCELLANEOUS.

                  23.1. Entire Agreement; Amendments; Lender's Consent. This
         Agreement (including the Exhibits and Schedules thereto) and the Loan
         Documents supersede, with respect to their subject matter, all prior
         and contemporaneous agreements, understandings, inducements or
         conditions between the respective parties, whether express or implied,
         oral or written. No amendment or waiver of any provision of this
         Agreement or any of the Loan Documents, nor consent to any departure by
         either Borrower therefrom, shall in any event be effective unless the
         same shall be in writing and signed by Lender, and then such waiver or
         consent shall be effective only in the specific instance and for the
         specific purpose for which given.

                  23.2. Cross Default; Cross Collateral. Each Borrower hereby
         agrees that (a) all other agreements between Borrowers or either
         Borrower and Lender or any of Lender's Affiliates are hereby amended so
         that a default under this Agreement is a default under all such other
         agreements and a default under any one of the other agreements is a
         default under this Agreement, and (b) the Collateral under this
         Agreement secures the Obligations now or hereafter outstanding under
         all other agreements between either Borrower and Lender or any of
         Lender's Affiliates and the Collateral pledged under any other
         agreement with Lender or any of its Affiliates secures the Obligations
         under this Agreement.

                  23.3. Execution in Counterparts. This Agreement may be
         executed in any number of counterparts, each of which when so executed
         shall be deemed to be an original and all of which taken together shall
         constitute but one and the same agreement.

                  23.4. Severability of Provisions. Any provision of this
         Agreement or any of the Loan Documents that is prohibited or
         unenforceable in any jurisdiction shall, as to such jurisdiction, be
         ineffective to the extent of such prohibition or unenforceability
         without invalidating the remaining provisions of this Agreement or the
         Loan Documents or affecting the validity or enforceability of such
         provision in any other jurisdiction.

                  23.5. Table of Contents; Headings. The table of contents and
         headings preceding the text of this Agreement are inserted solely for
         convenience of reference and shall not constitute a part of this
         Agreement or affect its meaning, construction or effect.

                  23.6. Exhibits and Schedules. All of the Exhibits and
         Schedules to this Agreement are hereby incorporated by reference herein
         and made a part hereof.

                                       52
<PAGE>

                  23.7. Consent to Jurisdiction. As part of the consideration
         for new value received, and regardless of any present or future
         domicile or principal place of business of either Borrower or Lender,
         each Borrower hereby consents and agrees that any federal or state
         court located in any county, in New York State, shall have jurisdiction
         to hear and determine any claims or disputes between either Borrower
         and Lender pertaining to this Agreement or to any matter arising out of
         or related to this Agreement; provided, however, Lender may, at its
         option, commence any action, suit or proceeding in any other
         appropriate forum or jurisdiction to obtain possession of or foreclose
         upon any Collateral, to obtain equitable relief or to enforce any
         judgment or order obtained by Lender against either Borrower or with
         respect to any Collateral, to enforce any other right or remedy under
         this Agreement or to obtain any other relief deemed appropriate by
         Lender. Each Borrower expressly submits and consents in advance to such
         jurisdiction in any action or suit commenced in any such court, and
         Borrower hereby waives any objection which either Borrower may have
         based upon lack of personal jurisdiction, improper venue or forum non
         conveniens and hereby consents to the granting of such legal or
         equitable relief as is deemed appropriate by such court. Each Borrower
         represents and warrants that it has reviewed this consent to
         jurisdiction provision with its legal counsel, and has made this waiver
         knowingly and voluntarily.

                                       53
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their officers thereunto duly authorized on the day
and year first above written.

                                    KELTIC FINANCIAL PARTNERS, LP
                                    By: KELTIC FINANCIAL SERVICES LLC,
                                        its general partner

                                        By: /s/ Robert N. Laughlin
                                            ----------------------
                                            Robert N. Laughlin, Managing Partner

                                    THE A CONSULTING TEAM, INC.

                                        By: /s/ Shmuel Ben Tov
                                            ------------------
                                            Shmuel BenTov
                                            Chief Executive Officer

                                    INTERNATIONAL OBJECT TECHNOLOGY, INC.

                                        By: /s/ Shmuel Ben Tov
                                            ------------------
                                            Shmuel Ben Tov
                                            Chief Executive Officer

                                       54

<PAGE>

                                   EXHIBIT "A"

                           BORROWING BASE CERTIFICATE

                            As of __________________

BORROWER:

PREVIOUS DAY A/R {  /  /  }                 $        -

                      Sales:                $        -
                      Credits:              $        -
                      Debits:               $        -
                      Collections:          $        -
                      Coll. Adj's:          $        -

ENDING A/R  {  /  /  }                      $        -

Ineligibles:          Past Due a/o__:       $        -
                      Ineligible a/o__:     $        -

ELIGIBLE A/R:                                                          $       -

A/R @ 75%:                                           /                 $       -

TOTAL AVAILABLE COLLATERAL:                          $                 -

OUTSTANDING LOAN BALANCE AS OF  /  /  :                                $       -
ADVANCE {  /  /  }:                                                    $       -
OUTSTANDING LOAN BALANCE AS OF  /  /  :                                $       -

NET AVAILABILITY:                                                      $       -

I hereby certify in connection with the Loan and Security Agreement, dated as of
March __, 2004, among The A Consulting Team, Inc. and International Object
Technology, Inc. and Keltic Financial Partners, LP, that the information and
each calculation set forth above is to the best of my knowledge, true, correct
and complete as of the date hereof and are calculated in accordance with the
Loan and Security Agreement. Unless otherwise defined herein, all terms used
herein shall have the meanings ascribed to them in the Loan and Security
Agreement.

Prepared By:      _______________________________________     Dated: ___________
                  (Authorized Signature)

<PAGE>

                                   EXHIBIT "B"

                             COMPLIANCE CERTIFICATE

                  The A Consulting Team, Inc. and International Object
Technology, Inc. ("Borrowers") hereby certifies to KELTIC FINANCIAL SERVICES, LP
in accordance with the provisions of a Loan and Security Agreement among
Borrowers and Lender dated March 22, 2004, as the same from time to time may be
amended, supplemented or otherwise modified ("Agreement") that:

                  (i) each Borrower has complied in all respects with all the
terms, covenants and conditions of the Agreement which are binding upon them;

                  (ii) there exists no Event of Default or Default as defined in
the Agreement;

                  (iii) the representations and warranties contained in the
Agreement are true in all respects with the same effect as though such
representations and warranties had been made on the date hereof; and

                  WITNESS the signature of the undersigned duly authorized
officers of Borrowers on _____________, 20__.

                           THE A CONSULTING TEAM, INC.

                           By:       ________________________________
                                     Name:
                                     Title:

                           INTERNATIONAL OBJECT TECHNOLOGY, INC.

                           By:       ________________________________
                                     Name:
                                     Title:

<PAGE>

                                   EXHIBIT "C"

                               NOTICE OF BORROWING

<PAGE>

                                  Schedule 7.2

                                   Tradenames
                                      TACT
                                American Catalyst
                     TACT Outsourcing India Private Limited

                                  Schedule 7.3

                                TACT Affiliates:

                               TACT Software, Inc.
                                 T3 Media, Inc.
                            Always-On Software, Inc.
                                  Methoda, Ltd.

                               TACT Subsidiaries:
                                       IOT

                        IOT Affiliates and Subsidiaries:
                                      None

                                  Schedule 7.8

                               Real Estate Owned:
                                      None

                               Real Estate Leased:
                              200 Park Avenue South
                            New York, New York 10003

                           77 Brant Avenue, Suite 320
                             Clark, New Jersey 07066

<PAGE>

                                  Schedule 7.9
                             Patents and Trademarks

                             Trademark Applications:
                     The A Consulting Team (No. 75/320,927)
                              TACT (No. 75/320,744)
                                   People Soft

                                   Trademarks:
                        TACT (Design) (Reg. No. 2244241)

                                  Schedule 7.13
                                   Litigation

                                      None

                                  Schedule 7.14
                              Receivables Locations

                                 77 Brant Avenue
                             Clark, New Jersey 07066

                                  Schedule 7.15
                               Inventory Locations

                                      None

                                  Schedule 7.16
                          Equipment List and Locations

                              200 Park Avenue South
                            New York, New York 10003

<PAGE>

                                  Schedule 7.17
                                      Liens

                                      None

                                  Schedule 7.18
                                  Indebtedness

                                                 Payments Due in
                                    Total        2004        2005        2006
                                  ----------  ----------  ----------  ---------
Long Term Obligations
Automobile Loan                   $  40,441   $  13,078   $  13,885   $ 13,478
Shareholder Loan                     78,062      57,985      20,077          -
Acquisition Note                    300,000     100,000     200,000          -
                                  ----------  ----------  ----------  ---------
Total                             $ 418,503   $ 171,063   $ 233,962   $ 13,478
                                  ==========  ==========  ==========  =========

                                  Schedule 7.21
                              Environmental Matters

                                      None

                                  Schedule 7.24
                              List of Bank Accounts

                                  See attached
                                  Schedule 7.27
                                Excluded Matters

                                      NONE

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