Document:

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                                                                    Exhibit 10.2

                               SECURITY AGREEMENT

DATE:    October 29, 2002

DEBTOR:  International Travel CD's Inc., a  Colorado corporation

DEBTOR'S MAILING ADDRESS:  One Belmont Ave, GSB Building,
                           Suite 417 Bala Cynwyd, PA 19004

SECURED PARTY: Gemini Growth Fund, L.P.

SECURED PARTY'S MAILING ADDRESS:  700 Gemini, Houston, TX 77058

CLASSIFICATION OF COLLATERAL: Accounts, contract rights, property, equipment,
inventory, general intangibles, instruments, deposit accounts, chattel paper,
leases, mineral rights and all other assets.

COLLATERAL (INCLUDING ALL ACCESSIONS): Accounts, contract rights, property,
equipment, inventory, general intangibles, instruments, deposit accounts,
chattel paper, leases, mineral rights and all other assets.

         a) All attachments, accessions accessories, tools, parts supplies,
            increases, and additions to and all replacements of and
            substitutions for any property described above.

         b) All products and produce of any of the property described in this
            Collateral section.

         c) All accounts, contracts rights, general intangibles, intellectual
            property, instruments, rents, monies, payments, and all other
            rights, arising out of a sale, lease, or other disposition of any of
            the property described in this Collateral section.

         d) All proceeds (including insurance proceeds) from the sale,
            destruction, loss, or other deposition of any of the property
            described in this Collateral section.

OBLIGATION: Convertible Note and any and all other indebtedness, liabilities and
obligations of the Debtor to the Secured Party now owing or hereinafter
incurred.

         DATE:             October 29, 2002

         AMOUNT:           $400,000

         MAKER:            As provided therein

         PAYEE:            As provided therein

         FINAL MATURITY DATE:         As provided therein

         TERMS OF PAYMENT (OPTIONAL):        As provided therein

Debtor grants to Secured Party a security interest in the Collateral and all its
proceeds to secure payment and performance of Debtor's obligation and all
renewals and extensions of any of the obligation.

DEBTOR'S WARRANTIES:

1.       Ownership. Debtor owns the collateral and has the authority to grant
         this security interest.

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2.       Fixtures and Accessions. None of the collateral is affixed to real
         estate, is an accession to any goods, is commingled with other goods,
         or will become a fixture, accession, or part of a product or mass with
         other goods except as expressly provided in this agreement.

3.       Financial Statements. All information about Debtor's financial
         condition provided to Secured Party was accurate when submitted, as
         will be any information subsequently provided.

DEBTOR'S COVENANTS:

1.       Protection of Collateral. Debtor will defend the collateral against all
         claims and demands adverse to Secured Party's interest in it and will
         keep it free from all liens except those for taxes not yet due and from
         all security interests except this one. The collateral will remain in
         Debtor's possession or control at all times, except as otherwise
         provided in this agreement. Debtor will maintain the collateral in good
         condition and protect it against misuse, abuse, waste and deterioration
         except for ordinary wear and tear resulting from its intended use.

4.       Secured Party's Costs. Debtor will pay all expenses incurred by Secured
         Party in obtaining, preserving, perfecting, defending and enforcing
         this security interest or the collateral and in collecting or enforcing
         the Obligation. Expenses for which Debtor is liable include, but are
         not limited to, taxes, assessments, reasonable attorney's fees, and
         other legal expenses. These expenses will bear interest from the dates
         of payments at the highest rate stated in notes that are part of the
         obligation, and Debtor will pay Secured Party this interest on demand
         at a time and place reasonably specified by Secured Party. These
         expenses and interest will be part of the obligation and will be
         recovered as such in all respects.

5.       Additional Documents. Debtor will sign any papers that Secured Party
         considers necessary to obtain, maintain, and perfect this security
         interest or to comply with any relevant law.

6.       Notice of Changes. Debtor will immediately notify Secured Party of any
         material change in the collateral other than in the ordinary course of
         business; change in Debtor's name, address, or location; change in any
         matter warranted or represented in this agreement; change that may
         affect this security interest; and any event of default.

7.       Use and Removal of Collateral. Debtor will use the collateral primarily
         according to the stated classification unless Secured Party consents
         otherwise in writing. Debtor will not permit the collateral to be
         affixed to any real estate, to become an accession to any goods, to be
         commingled with other goods, or to become a fixture, accession, or part
         of a product or mass with other goods except as expressly provided in
         this agreement or in the ordinary course of business.

8.       Sale. Debtor will not sell, transfer, or encumber any of the collateral
         without the prior written consent of Secured Party other than in the
         ordinary course of business.

9.       If requested by Secured Party, debtor will receive and use reasonable
         diligence to collect all accounts, accounts receivable, chattel paper,
         instruments, documents and general intangibles, deposit accounts, in
         trust, and to be held as property of the Secured Party, and to
         immediately endorse as appropriate and deliver such rights to payment
         and proceeds to Secured Party daily in the exact form in which they are
         received together with a collection report in a form satisfactory to
         Secured Party.

10.      Debtor agrees not to commingle the rights to payment, proceeds or
         collections thereunder with other property.

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

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11.      Debtor agrees, with regard to the collateral and proceeds, from time to
         time when reasonably requested by Secured Party, to prepare and deliver
         a schedule of all collateral and proceeds subject to this agreement and
         to assign in writing and deliver to secured party all accounts,
         contracts, leases and other chattel paper, instruments, documents and
         other evidences thereof.

12.      Debtor agrees with regard to the collateral and proceeds in the event
         secured party elects to receive payments of rights to payment or
         proceeds hereunder, to pay all reasonable expenses incurred by secured
         party in connection therewith, including reasonable expenses of
         accounting, correspondence, collection efforts, reporting to account or
         contract debtors, filing, recording, record keeping and expenses
         incidental thereto.

RIGHTS AND REMEDIES OF SECURED PARTY:

1.       Generally. Secured Party may exercise the following rights and remedies
         after default:

         a) take control of any proceeds of the collateral;

         b) release any collateral in Secured Party's possession to any debtor,
            temporarily or otherwise;

         c) take control of any funds generated by the collateral, such as
            refunds from and proceeds of insurance, and reduce any part of the
            obligation accordingly or permit Debtor to use such funds to repair
            or replace damaged or destroyed collateral covered by insurance; and

         d) demand, collect, convert, redeem, settle, compromise, receipt for,
            realize on, adjust, sue for, and foreclose on the collateral either
            in Secured Party's Debtor's name, as Secured Party desires.

EVENTS OF DEFAULT: Each of the following conditions is an Event of Default if
not cured within an applicable cure or grace period under any Loan Document by
and between Secured Party and Debtor:

1.       if Debtor defaults in timely payment or performance of any obligation,
         covenant, or liability in any written agreement between Debtor and
         Secured Party or in any other transaction secured by this agreement;

2.       if any warranty, covenant or representation made to Secured Party by or
         on behalf of Debtor proves to have been false in any material respect
         when made;

3.       if a receiver is appointed for Debtor or any of the collateral;

4.       if the collateral is assigned for the benefit of creditors or, to the
         extent permitted by law, if bankruptcy or insolvency proceedings
         commence against or by any of these parties: Debtor; any partnership of
         which Debtor is a general partner; and any maker, drawer, acceptor,
         endorser, guarantor, surety, accommodation party, or other person
         liable on or for any part of the obligation;

5.       if any financing statement regarding the collateral but not related to
         this security and not favoring Secured Party is filed;

6.       if any lien attaches to any of the collateral;

7.       if any material amount of the collateral is lost, stolen, damaged, or
         destroyed, unless it is promptly replaced with collateral of like
         quality or restored to its former condition.

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8.       Secured party reasonably by and in good faith, believes that any or all
         of the collateral and/or proceeds to be danger of misuse, dissipation,
         commingling, loss, theft, damage or destruction, or otherwise in
         jeopardy or unsatisfactory in character or value.

REMEDIES OF SECURED PARTY ON DEFAULT:

1.       During the existence of any event of default, Secured Party may declare
         the unpaid principal and earned interest of the obligation immediately
         due in whole or part, enforce the obligation, and exercise any rights
         and remedies granted by the Uniform Commercial Code or by this
         agreement, including the following:

         a) require Debtor to deliver to Secured Party all books and records
            relating to the collateral;

         b) require Debtor to assemble the collateral and make it available to
            Secured Party at a place reasonably convenient to both parties;

         c) take possession of any of the collateral and for this purpose enter
            any premises where it is located if this can be done without breach
            of the peace;

         d) sell, lease, or otherwise dispose of any of the collateral in accord
            with the rights, remedies, and duties of a secured party under
            chapters 2 and 9 of the Texas Uniform Commercial Code after notice
            as required by those chapters; unless the collateral threatens to
            decline speedily in value, is perishable, or would typically be sold
            on a recognized market, Secured Party will give Debtor reasonable
            notice of any public sale of the collateral or of a time after which
            it may be otherwise disposed of without further notice to Debtor; in
            this event, notice will be deemed reasonable if it is mailed,
            postage prepaid, to Debtor at the address specified in this
            agreement at least ten days before any public sale or ten days
            before the time when the collateral may be otherwise disposed of
            without further notice to Debtor; in this event, notice will be
            deemed reasonable if it is mailed, postage prepaid, to Debtor at the
            address specified in this agreement at least ten days before any
            private sale or ten days before any public sale or ten days before
            time when the collateral may be otherwise disposed of without
            further notice to Debtor;

         e) surrender any insurance policies covering the collateral and receive
            the unearned premium;

         f) apply any proceeds from disposition of the collateral after default
            in the manner specified in chapter 9 of the Uniform Commercial Code,
            including payment of Secured Party's reasonable attorney's fees and
            court expenses; and

         g) if disposition of the collateral leaves the obligation unsatisfied,
            collect the deficiency from Debtor. GENERAL PROVISIONS

1.       Parties Bound. Secured Party's rights under this agreement shall inure
         to the benefit of its successors and assigns. Assignment of any part of
         the obligation and delivery by Secured Party of any part of the
         collateral will fully discharge Secured Party from responsibility for
         that part of the collateral. If Debtor is more than one, all their
         representations, warranties, and agreements are joint and several.
         Debtor's obligations under this agreement shall bind Debtor's personal
         representatives, successors, and assigns.

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

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2.       Waiver. Neither delay in exercise nor partial exercise of any Secured
         Party's remedies or rights shall waive further exercise of those
         remedies or rights. Secured Party's failure to exercise remedies or
         rights does not waive subsequent exercise of those remedies or rights.
         Secured Party's waiver of any default does not waive further default.
         Secured Party's waiver of any right in this agreement or of any default
         is binding only if it is in writing. Secured Party may remedy any
         default without waiving it.

3.       Reimbursement. If Debtor fails to perform any of Debtor's obligations,
         Secured Party may perform those obligations and be reimbursed by Debtor
         on demand at the place where the note is payable for any sums so paid,
         including attorney's fees and other legal expenses, plus interest on
         those sums from the dates of payment at the rate stated in the note for
         matured, unpaid amounts. The sum to be reimbursed shall be secured by
         this security agreement.

4.       Interest Rate. Interest included in the obligation shall not exceed the
         maximum amount of nonusers interest that may be contracted for, taken,
         reserved, charged, or received under law; any interest in excess of
         that maximum amount shall be credited to the principal of the
         obligation or, if that has been paid, refunded. On any acceleration or
         required or permitted prepayment of the obligation, any such excess
         shall be canceled automatically as of the acceleration or prepayment
         or, if already paid, credited on the principal amount of the obligation
         or, if the principal amount has been paid or refunded. This provision
         overrides other provisions in this and all other instruments concerning
         the obligation.

5.       Modifications. No provisions of this agreement shall be modified or
         limited except by written agreement.

6.       Severability. The unenforceability of any provision of this agreement
         will not effect the enforceability or validity of any other provision.

7.       After-Acquired Consumer Goods. This security interest shall attach to
         after-acquired consumer goods only to the extent permitted by law.

8.       Applicable Law. This agreement will be construed according to Texas
         laws.

9.       Place of Performance. This agreement is to be performed in the county
         of Secured Party's mailing address.

10.      Financing Statement. A carbon, photographic, or other reproduction of
         this agreement or any financing statement covering the collateral is
         sufficient as a financing statement.

11.      Presumption of Truth and Validity. If the collateral is sold after
         default, recitals in the bill of sale or transfer will be prima facie
         evidence of their truth, and all prerequisites to the sale specified by
         this agreement and by the Texas Uniform Commercial Code will be
         presumed satisfied.

12.      Singular and Plural. When the context requires, singular nouns and
         pronouns include the plural.

13.      Priority of Security Interest. Neither extensions of any of the
         obligation nor releases of any of the collateral will affect the
         priority of validity of this security interest with reference to any
         third person.

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14.      Cumulative Remedies. Foreclosure of this security interest by suit does
         not limit secured Party's remedies, including the right to sell the
         collateral under the terms of this agreement. All remedies of Secured
         Party may be exercised at the same or different times, and no remedy
         shall be a defense to any other. Secured Party's rights and remedies
         include all those granted by law or otherwise, in addition to those
         specified in this agreement.

15.      Agency. Debtor's appointment of Secured Party as Debtor's agent is
         coupled with an interest and will survive any disability of Debtor.

16.      Attachments Incorporated. The addendum indicated below is attached to
         this agreement and incorporated into it for all purposes:

         a) ( ) addendum relating to accounts, inventory, documents, chattel
            paper, and general intangibles

         b) ( ) addendum relating to instruments

Secured Party

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By:

Debtor:

International Travel CD's Inc.

By:
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    Title:

By:
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     Title:

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<PAGE><PAGE>
                                                                    Exhibit 10.3

                                 LOAN AGREEMENT

     THIS AGREEMENT (the  "Agreement") is made and entered into this 16th day of
January,  2003,  by and between  International  Travel  CD's,  Inc.,  a Colorado
corporation  (the  "Borrower")  and Trident Growth Fund, LP, a Delaware  limited
partnership (the "Lender").

                                   WITNESSETH:

     WHEREAS,  the Borrower  (f/k/a Gemini Growth Fund,  LP) and Lender  entered
into a previous  lending  relationship  which is governed by various  agreements
executed  by and  between  Borrower  and Lender.  Other than  certain  agreement
regarding. security for the loans, the documents governing this advance shall be
governed by these  agreements  and the  previous  advance  governed by the prior
agreements.

     WHEREAS,  the Borrower has requested that Lender make a loan to Borrower of
up to $400,000 (the "Loan"); and

     WHEREAS,  Lender has agreed to make such a loan  available to Borrower upon
the terms and conditions hereinafter set forth.

     NOW, THEREFORE, it is agreed as follows:

     SECTION 1.  DEFINITIONS.  All of the terms defined in this Agreement  shall
have such defined meanings when used in the other Loan Documents (as hereinafter
defined) and any certificates,  reports or other documents or instruments issued
under or delivered  pursuant to this Agreement  unless the context shall require
otherwise.  For purposes of this  Agreement,  the following terms shall have the
following meanings:

     1.1  "Affiliate"  shall  mean an entity  that is a member of a  "controlled
group of  corporations"  (within the meaning of Section  414(b) of the  Internal
Revenue  Code),  an  "affiliated  service  group" (within the meaning of Section
414(m) of the Internal  Revenue  Code),  or a group of trades or business  under
common  control  (within the meaning of Section  414(c) of the Internal  Revenue
Code) that also includes the Borrower as a member.

     1.2  "Agreement"  shall  include  this  Agreement  as amended,  modified or
supplemented from time to time.

     1.3  "Authorized  Officer"  shall mean the Chief  Executive  Officer or the
President  of the  Borrower or such other  person  designated  in writing to the
Lender, who is authorized to act on behalf of the Borrower hereunder.

     1.4  "Business  Day"  means  a day  upon  which  banks  are  open  for  the
transaction of business of the nature required by this Agreement in Texas.

     1.5 "Capital Expenditure" means any payment made directly or indirectly for
the  purpose of  acquiring  or  constructing  fixed  assets,  real  property  or
equipment which in

<PAGE>

accordance with GAAP would be added as a debit to the fixed asset account of the
Person making such expenditure,  including, without limitation,  amounts paid or
payable under any conditional  sale or other title retention  agreement or under
any lease or other periodic payment  arrangement  which is of such a nature that
payment  obligations  of the lessee or obligor  thereunder  would be required by
generally  accepted  accounting  principles  to  be  capitalized  and  shown  as
liabilities on the balance sheet of such lessee or obligor.

     1.6 "Cash Flow"  means an amount  equal to (i) the  Borrower'  Consolidated
EBITDA,   minus   (ii)  the   Borrower's   Consolidated   non-financed   Capital
Expenditures.

     1.7 "Capital Lease" means any lease of property  (real,  personal or mixed)
which, in accordance with GAAP,.  should be capitalized on the lessee's  balance
sheet or for which the  amount of the asset and  liability  thereunder  as if so
capitalized should be disclosed in a note to such balance sheet.

     1.8 "Change of  Control"  means (a) a Change of  Ownership;  (b) during any
period of twelve consecutive  calendar months,  individuals who at the beginning
of such period constituted the board of directors of the Borrower (together with
any new  directors  whose  election by the board of directors of the Borrower or
whose  nomination for election by the shareholders of Borrower was approved by a
vote of at least  two-thirds  of the  directors  then in office who either  were
directors at the beginning of such period or whose  elections or nomination  for
election was  previously  so approved)  cease for any reason other than death or
disability to constitute a majority of the directors then in office.

     1.9 "Change of Ownership"  means any person or group of persons (other than
the Lender  and/or the  shareholders  of the Borrower on the Closing Date) shall
have acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated
by the Securities and Exchange  Commission under the Securities  Exchange Act of
1934, as amended) of forty  percent  (40%) or more  (computed on a fully diluted
basis) of the issued and outstanding  shares of capital stock of Borrower having
the right to vote for the  election  of  directors  of Borrower  under  ordinary
circumstances.

     1.10 "Closing Date" means the date first set forth above.

     1.11 "Committed Amount" means the principal amount of $400,000 which Lender
has agreed to lend to Borrower as evidenced by the Convertible Note.

     1.12 "Common Stock" shall have the meaning as defined in Section 3.3.

     1.13 DELETED.

     1.14 "Consolidated EBITDA" means, for any Person for any period:

          (i) the  consolidated  net income of such Person and its  Consolidated
     Subsidiaries for such period (after Income Taxes), but excluding:

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     (a) any gain arising from the sale of capital assets,

     (b) any gain arising from any write-up of assets,

     (c) earnings of any other Person,  substantially all of the assets of which
have been  acquired  by such  Person  or its  Consolidated  Subsidiaries  in any
manner,  to the extent that such  earnings  were  realized by such other  Person
prior to the date of such acquisition.

     (d)  earnings  of any  Person  in  which  the  Person  or its  Consolidated
Subsidiaries has an ownership  interest (other than wholly owned Subsidiaries of
such Person ), unless such earnings have actually been received by the Person or
its Consolidated Subsidiaries in the form of cash distributions,

     (e)  earnings  of  any  Person  to  which  assets  of  the  Person  or  its
Consolidated  Subsidiaries shall have been sold,  transferred or disposed of, or
into which the Person shall have merged,  to the extent that such earnings arise
prior to the date of such transaction,

     (f) any gain arising from the  acquisition of any securities of such Person
or any of its Consolidated Subsidiaries, and

     (g)  any  extraordinary  gain  realized  by  such  Person  or  any  of  its
Consolidated Subsidiaries during such period.

          (ii) plus the following,  but only in each case to the extent incurred
     by the Borrower and its  Consolidated  Subsidiaries  during such period and
     deducted in the calculation above for such period,

                           (a) all income and franchise taxes,

                           (b) all Interest Expense,

                           (c) all depreciation expense, and

                           (d) all amortization expense.

     1.15 "Consolidated  Subsidiary" or "Consolidated  Subsidiaries"  means, for
any  Person,  any  Subsidiary  or other  entity the  accounts  of which would be
consolidated with those of such Person in its consolidated  financial statements
as of such date in accordance with GAAP.

     1.16 "Current  Assets" means, at any particular time, all amounts which, in
conformity  with GAAP,  would be  included as current  assets on a  consolidated
balance  sheet of the Borrower and its  Subsidiaries;  provided  however,  there
shall be excluded  therefrom (a) all prepaid  expenses of every type and nature,
(b) all amounts due from partners,  officers,  stockholders or other Affiliates,
and all loans due from employees, and (c) all deferred charges.

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     1.17 "Current  Liabilities"  means,  at any  particular  time,  all amounts
(including  deferred taxes) which, in conformity with GAAP, would be included as
current  liabilities  on a  consolidated  balance  sheet of the Borrower and its
Subsidiaries.

     1.18  "Current  Ratio"  means  the  ratio  of  Current  Assets  to  Current
Liabilities.

     1.19 "Debt" means,  with respect to any Person on any date of determination
(without  duplication),  (i)  all  obligations  for  borrowed  money,  (ii)  all
obligations evidenced by bonds, debentures, notes or similar instruments,  (iii)
all  obligations  to pay the  deferred  purchase  price of  property or services
except trade accounts  payable  arising in the ordinary course of business which
are paid when due in accordance  with  ordinary-course  payment terms,  (iv) all
obligations  arising under acceptance  facilities or facilities for the discount
or sale of accounts  receivable,  (v) all direct or  contingent  obligations  in
respect  of  letters  of  credit,  (vi)  lease  obligations  (other  than  lease
obligations  with  respect to  operating  leases)  that have been (or under GAAP
should be)  capitalized  for financial  reporting  purposes,  (vii)  liabilities
secured  (or for  which the  holder of any  obligations  or  liabilities  has an
existing right, contingent or otherwise, to _be so secured) by any Lien existing
on  property  owned or  acquired  by that  Person  and  (viii)  all  guaranties,
endorsements and other contingent  obligations for liabilities or obligations or
the  maintenance  of financial  condition of others,  including  obligations  to
repurchase  or purchase  properties  or to  maintain  or cause to  maintain  any
financial condition.

     1.20  "Default" or "Event of Default" means the occurrence of all or any of
the events  specified in Section 7 and/or set forth in the Convertible  Note (as
defined below).

     1.21  "Indebtedness"  means with respect to any Person, all indebtedness of
such  Person  for  borrowed  money,  all  indebtedness  of such  Person  for the
acquisition of property other than purchases of products and  merchandise in the
ordinary  course of business,  indebtedness  secured by a lien,  pledge or other
encumbrance on the property of such Person whether or not such  indebtedness  is
assumed,  all  liability of such Person by way of  endorsements  (other than for
collection  or deposit in the ordinary  course of business);  all  guarantees of
Indebtedness  of any  other  Person by such  Person  (including  any  agreement,
contingent  or  otherwise,   to  purchase  any  obligation   representing   such
Indebtedness or property constituting security therefor, or to advance or supply
funds for such purpose or to maintain  working capital or other balance sheet or
income statement condition,  or any other arrangement in substance effecting any
of the foregoing); all leases and other items which in accordance with Generally
Accepted Accounting Principles are classified as liabilities on a balance sheet.

     1.22  "Interest  Expense"  means,  with  respect  to any Person and for any
period (without  duplication),  all interest on that Person's Debt, whether paid
in cash or accrued as a  liability  and  payable in cash  during any  subsequent
period  (including,  without  limitation,  the  interest  component  of  Capital
Leases), as determined by GAAP.

     1.23  "Liabilities"  mean all liabilities,  obligations and indebtedness of
any and every kind and nature (including, without limitation, lease obligations,
accrued interest, charges, expenses,  attorneys' fees and other sums) chargeable
to the Borrower and made to or for the benefit of the Borrower,  whether arising
under this Agreement or arising under the Note or any

<PAGE>

of the Loan  Documents of the  Borrower,  whether  heretofore,  now or hereafter
owing,  arising,  due or  payable  from  Borrower  to  the  Lender  and  however
evidenced,  credited,  incurred,  acquired or owing, whether primary, secondary,
direct, contingent, fixed, or otherwise, including obligation of performance.

     1.24 "Liens" shall have the meaning set forth in Section 3.9.

     1.25 "Loan  Amount"  means the  principal  amount of up to  $400,000  which
Lender has agreed to lend Borrower at Lender's sole option.

     1.26 "Loan  Documents"  means this  Agreement,  the  Convertible  Note, the
Pledge  Agreement,  the Warrant,  the  Security  Agreement,  and all  documents,
instruments,  certificates,  reports  and  all  other  written  matters  whether
heretofore,  now, or hereafter  executed by or on behalf of the Borrower  and/or
delivered to Lender in connection herewith.

     1.27  "Convertible  Note"  or  "Note"  means  one or  more  Senior  Secured
Promissory  Notes,  to be  executed  by the  Borrower  in favor  of the  Lender,
substantially in the form of Exhibit 1 attached hereto.

     1.28 "Material  Adverse Effect" shall have the meaning set forth in Section
3.1.

     1.29 "Net Income" or "Net Loss"  means,  with respect to any Person for any
period,  the net income or net loss of such Person determined in accordance with
GAAP,  after  payment  of  income  Taxes  but  excluding  any  extraordinary  or
non-recurring items.

     1.30  "Obligation"  shall mean the principal  amount of the Loan, plus nine
percent (9%) interest per annum (subject to adjustment) together with such costs
and reimbursements as may be due under the Loan Agreement and the Note.

     1.31 "Pledge Agreement",  if any, means the pledge agreement of approximate
even date herewith executed by pledgor in favor of the Lender.

     1.32  "Registrable  Securities" shall mean (i) the Common Stock issued upon
conversion of the  Convertible  Notes,  or (ii) any Common Stock issued upon the
exercise of the Warrant,  right or other security which is issued in conjunction
with this transaction (i) above by way of stock dividend; any other distribution
with respect to or in exchange for, or in  replacement  of Common  Stock;  stock
split; or in connection with a combination of shares, recapitalization,  merger,
consolidation or other reorganization.

     1.33  "Person"  means an  individual,  partnership,  corporation,  business
trust, joint stock company,  trust,  unincorporated  organization,  association,
joint venture or a government or agency or political subdivision thereof.

     1.34  "Security   Agreement"  means  that  certain  Security  Agreement  of
approximate even date herewith executed by the Borrower in favor of the Lender.

<PAGE>

     1.35  "Subsidiary"  means any corporation or limited  liability  company of
which at least a 50% of the outstanding securities having ordinary voting powers
for the election of Board of Directors  (or similar  governing  body) are at the
time owned by Borrower.  As used herein,  the term "Borrower" shall be deemed to
include all of Borrower's Subsidiaries, if any.

     1.36 "Termination Date" means the earlier of: (a) January 31, 2004; (b) the
date of the  occurrence and  continuance of an Event of Default (as  hereinafter
defined);  (c) the date of repayment  of the Loan Amount plus accrued  interest;
(d) the date of the  closing of a  secondary  public  offering  by the  Borrower
and/or  its  shareholders;  or (e) the  date of the  Change  of  Control  of the
Borrower.

     1.37 "Warrant",  if any means that certain warrant of approximate even date
herewith executed by the Borrower in favor of the Lender.

     SECTION 2. LOAN.

     2.1  COMMITTED  LOAN AMOUNT.  Subject to the terms and  conditions  of this
Agreement,  the Lender agrees to loan to the Borrower  $400,000  pursuant to the
terms of the Convertible Note and the other Loan Documents upon the execution of
this Agreement. The Lender shall provide such funds (via check or wire transfer)
to the Borrower  within five (5) business  days of receipt by the Lender of such
Loan  Documents  duly  executed by Borrower,  or within such  shorter  period as
Borrower and Lender mutually agree.  Nothing set forth herein shall prohibit the
Borrower from making  prepayments  without  penalty at any time and from time to
time (subject to prior  conversion  rights).  All provisions of the  Convertible
Note are incorporated herein by reference. Any conflicts between the Convertible
Note and this Loan Agreement  shall be resolved by reference to the  Convertible
Note. Upon execution of this Agreement,  contemporaneous with the funding of the
Loan, Borrower shall promptly pay to the order of the Lender a commitment fee in
the amount of 1 % and an origination fee of 4%. Such fees shall be applicable to
any further lending from Lender to Borrower.

     2.2 PAYMENTS OF INTEREST AND  PRINCIPAL.  Interest on the Loan Amount shall
accrue at the rate of nine  percent  (9%) per annum  from the date of receipt of
funds by Lender,  and shall be payable via wire transfer in cash. Unless earlier
repaid in accordance  with payment  provisions  set forth in the Note,  Borrower
shall pay to Lender on the Termination  Date the entire  principal amount of the
outstanding Convertible Notes, via wire transfer, together with accrued interest
thereon and any fees then owed.

     2.3 USE OF PROCEEDS. The proceeds of the Loan shall be used by the Borrower
in accordance with the provisions of Schedule 2.3 hereof.

     2.4 CONVERSION. Terms found in the Convertible Note.

     SECTION 3. REPRESENTATIONS AND WARRANTIES. In order to induce the Lender to
enter  into  this  Agreement  and to  make  the  Loan  available,  the  Borrower
represents   and   warrants  to  the  Lender  as  of  the  Closing  Date  (which
representations  and  warranties  shall  survive the  delivery of the  documents
mentioned herein, and the termination of this Agreement) as follows:

<PAGE>

     3.1 ORGANIZATION.

     (a) The  Borrower  and  each  Subsidiary,  if any,  is a  corporation  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction  of its respective  formation,  has the power to own its respective
properties and to carry on its respective  businesses as now being conducted and
is duly qualified to do business in every  jurisdiction  in the United States of
America for which the failure to so qualify would have a material  impact on the
financial  condition,   operations,   business  or  prospects  of  the  Borrower
("Material Adverse Effect").

     (b)  SCHEDULE  3.1 sets forth true and  complete  copies of the Articles of
Incorporation  and Bylaws,  as in effect on the date hereof, of the Borrower and
all  other  corporate   formation  and  governing   documents  of  each  of  the
Subsidiaries.  Except as set forth in Schedule 3.l(b), the Borrower does not own
or control,  directly or  indirectly,  any equity  interest in any  corporation,
company,   limited  liability   company,   association,   partnership,   limited
partnership, joint venture or other entity.

     3.2  POWER  AND  AUTHORITY.  The  Borrower  is duly  authorized  under  all
applicable  provisions of law, its Articles of Incorporation,  and its Bylaws to
execute,  deliver and perform this Agreement, the Convertible Note and the other
Loan  Documents to which it is a party,  and all other action on the part of the
Borrower  required for the lawful  execution,  delivery and performance  thereof
have been duly taken. This Agreement and the other Loan Documents,  if any, upon
the due execution and delivery thereof,  are valid and enforceable  instruments,
obligations or agreements of the parties,  in accordance  with their  respective
terms,  except as to  enforcement  of creditors  rights  generally.  Neither the
execution of this Agreement and the Loan  Documents,  nor the  fulfillment of or
compliance  with their  provisions  and terms,  conflicts  with,  or has or will
result in a breach of the terms,  conditions or  provisions  of, or constitute a
violation of or default under: (a) any applicable law,  regulation,  order, writ
or decree;  or (b) any agreement or instrument to which the Borrower is a party,
or create any lien,  charge or encumbrance upon any of the property or assets of
any of them pursuant to the terms of any agreement or instrument to which any of
them is a party or by which any of them are bound  except  those in favor of the
Lender expressly created hereunder.

     3.3  CAPITALIZATION.  As of the date hereof, the total number of authorized
shares of common stock of the Borrower  (the "Common  Stock") is of which shares
are  issued  and  outstanding  and the  total  number  of  authorized  shares of
preferred stock of the Borrower (the "Preferred  Stock") is shares, of which are
issued  and  outstanding.  Borrower  does  not  have any  authorized  shares  of
preferred stock. The outstanding  capitalization  of the Borrower as of the date
hereof  is set  forth in  Schedule  3.3  annexed  hereto.  Except  as  otherwise
disclosed in Schedule 3.3, there are no warrants,  options or preemptive  rights
authorized or outstanding  with respect to any of the Borrower's  capital stock.
The  Borrower  shall not issue any  derivative  securities  without  the express
written consent of the Lender.

     3.4 STOCK OWNERSHIP. The stockholders, which are reflected on Schedule 3.3,
are holders of all of the issued and  outstanding  Common  Stock and,  except as
contemplated by the

<PAGE>

Loan  Documents  and  Schedule  3.3,  there are no  commitments,  agreements  or
undertakings  with respect to the issuance of any equity or debt  securities  of
the Borrower.

     3.5 MATERIAL LIABILITIES.  The sole outstanding material liabilities of the
Borrower are set forth on Schedule 3.5 annexed hereof.

     3.6 PROCEEDS OF  CONVERTIBLE  NOTE.  The Borrower shall use the proceeds of
the Convertible Note solely for those purposes set forth on Schedule 2.3 hereof.

     3.7 REGISTRATION RIGHTS.  Except as set forth in Schedule 3.7, there are no
registration  rights  agreements  with respect to any of the Borrower's  capital
stock.

     3.8 MATERIAL AGREEMENTS.  Except for those agreements set forth on Schedule
3.8 hereof,  there are no other  material  agreements to which the Borrower is a
party.

     3.9 TITLE TO  ASSETS.  Except  as set forth on  Schedule  3.9  hereof,  the
Borrower has good and marketable title to all of its properties and assets,  all
of  which  are  free  and  clear  of any  and  all  liens,  mortgages,  pledges,
encumbrances  or  charges  of  any  kind  or  nature  whatsoever  (collectively,
"Liens").

     3.10 LITIGATION.  There are no pending or threatened actions or proceedings
before any court,  any state,  provincial  or federal  regulatory  body,  or any
self-regulatory  organization  arbitrator or governmental or administrative body
or agency which would have a Material  Adverse  Effect or in any way  materially
affect or call into  question  the power and  authority of the Borrower to enter
into or perform this Agreement and the Loan Documents.

     3.11 TAXES. The Borrower has filed all income tax returns (if any) required
to be filed by it and all taxes due thereon have been paid,  and no  controversy
in respect of  additional  income  taxes,  municipal,  state or federal,  of the
Borrower is pending or threatened.

     3.12 AGREEMENTS OR RESTRICTIONS AFFECTING THE BORROWER. The Borrower is not
a party to or  otherwise  bound by any  contract or  agreement or subject to any
restrictions   which  would  have  Material  Adverse  Effect  or  restricts  the
Borrower's  ability to enter into this Agreement or any of the other of the Loan
Documents  or the  Borrower's  ability to effect the  transactions  contemplated
therein and herein.

     3.13 GOVERNMENTAL APPROVAL. No approval of any federal, state, municipal or
other local governmental authorities is necessary to carry out the terms of this
Agreement and the Loan  Documents,  and no consents or approvals are required in
the making or performance of this Agreement and the Loan Documents.

     3.14 BOARD OF DIRECTORS. The Board of Directors of the Borrower consists of
Gerald  Harrington.  The Board of  Directors  will be expanded  to include  such
number of directors  required by the rules  promulgated  by the  Securities  and
Exchange  Commission.  Such  directors  shall  be  elected  by  shareholders  or
appointed by the Board of Directors.

<PAGE>

     3.15 NO UNTRUE STATEMENTS. None of this Agreement or the Loan Documents nor
any other agreements, reports, schedules, certificates or instruments heretofore
or  simultaneously  with the  execution of this  Agreement  delivered to Lender,
contains any misrepresentation or untrue statement of fact or omits to state any
fact necessary to make any of such agreements, reports, schedules,  certificates
or instruments not misleading.

     3.16 EMPLOYEE BENEFIT PLANS.

     (a) Borrower has  disclosed to Lender in writing  prior to the execution of
the  Agreement  and has listed on  Schedule  3.16 all  Borrower  Benefit  Plans.
Attached to Schedule 3.16 are correct and complete  copies,  in each case of all
Borrower Benefit Plans. For purposes of this Agreement, "Borrower Benefit Plans"
means all pension,  retirement,  profit-sharing,  deferred  compensation,  stock
option,  employee stock  ownership,  severance pay,  vacation,  bonus,  or other
incentive plan, all other written employee agreements or programs,  all medical,
vision,  dental,  or other health plans, all life insurance plans, and all other
employee benefit plans or fringe benefit plans,  including,  without limitation,
"employee  benefit  plans"  as that term is  defined  in  Section  3(3) of ERISA
maintained  by,  sponsored  in whole or in part by, or  contributed  to by,  the
Borrower  or any  of its  Affiliates  for  the  benefit  of  managers,  members,
employees, retirees, dependents, spouses, directors, independent contractors, or
other  beneficiaries  and under which managers,  members,  employees,  retirees,
dependents, spouses, directors,  independent contractors, or other beneficiaries
are  eligible to  participate.  Any of the  Borrower  Benefit  Plans which is an
"employee  welfare  benefit  plan," as that term is defined  in Section  3(1) of
ERISA, or an "employee pension benefit plan," as that term is defined in Section
3(2) of ERISA,  is referred to herein as a "Borrower  ERISA  Plan." Any Borrower
ERISA Plan which is also a "defined  benefit plan" (as defined in Section 4l4(j)
of the Internal Revenue Code or Section 3(35) of ERISA) is referred to herein as
a "Borrower Pension Plan." Neither Borrower nor any Affiliate has an "obligation
to contribute" (as defined in ERISA Section 4212) to a "multiemployer  plan" (as
defined in ERISA  Sections  400l(a)(3) and  3(37)(A)).  Each  "employee  pension
benefit  plan," as defined  in Section  3(2) of ERISA,  ever  maintained  by the
Borrower or any Affiliate that was intended to qualify under Section 40 1 (a) of
the  Internal  Revenue  Code and with  respect  to which any  Affiliate  has any
liability, is disclosed as such in Schedule 3.16.

     (b) Borrower has attached to Schedule  3.16 correct and complete  copies of
the following documents:  (i) all trust agreements or other funding arrangements
for  such  Borrower  Benefit  Plans  (including  insurance  contracts),  and all
amendments  thereto;  (ii) with respect to any such  Borrower  Benefit  Plans or
amendments,  all determination letters,  rulings,  opinion letters,  information
letters,  or material  advisory opinions issued by the Internal Revenue Service,
the  United  States  Department  of  Labor,  or  the  Pension  Benefit  Guaranty
Corporation after December 31, 1994; (iii) annual reports or returns, audited or
unaudited financial  statements,  actuarial  valuations and reports, and summary
annual reports  prepared for any Borrower  Benefit Plan with respect to the most
recent plan year;  and (iv) the most recent  summary plan  descriptions  and any
material modifications thereto.

     (c)  All  Borrower  Benefit  Plans  are in  material  compliance  with  the
applicable  terms of ERISA,  the Internal Revenue Code, and any other applicable
laws,  the  breach  or  violation  of  which  is  reasonably   likely  to  have,
individually  or in the  aggregate,  a Material

<PAGE>

Adverse Effect on the Borrower. Each Borrower ERISA Plan currently maintained by
Borrower which is intended to be qualified  under Section 40l(a) of the Internal
Revenue  Code has  received a favorable  determination  letter from the Internal
Revenue Service,  and Borrower is not aware of any  circumstances  which will or
could  reasonably  result  in  revocation  of any such  favorable  determination
letter.  Each trust created under any Borrower ERISA Plan, which is an "employee
pension  benefit plan" as defined in Section 3(2) of ERISA,  has been determined
to be exempt from tax under  Section 501 (a) of the  Internal  Revenue  Code and
Borrower is not aware of any circumstance  which will or could reasonably result
in revocation of such exemption.  With respect to each Borrower  Benefit Plan to
the best  knowledge  of  Borrower,  no event has  occurred  which  will or could
reasonably  give  rise to a loss of any  intended  tax  consequences  under  the
Internal  Revenue Code or to any tax under  Section 511 of the Internal  Revenue
Code that is reasonably  likely,  individually  or in the  aggregate,  to have a
Material  Adverse  Effect on Borrower.  There is no material  pending or, to the
best knowledge of the Borrower,  threatened  litigation relating to any Borrower
ERISA Plan.

     (d) No Affiliate has engaged in a transaction  with respect to any Borrower
Benefit Plan that, assuming the taxable period of such transaction expired as of
the date of this  Agreement,  would  subject any  Affiliate to a material tax or
penalty  imposed by either Section 4975 of the Internal  Revenue Code or Section
502(i) of ERISA in amounts which are reasonably likely to have,  individually or
in the aggregate,  a Material Adverse Effect on Borrower.  Neither Borrower nor,
to the best of  Borrower's  knowledge,  any  administrator  or  fiduciary of any
Borrower  Benefit Plan (or any agent of any of the foregoing) has engaged in any
transaction,  or  acted or  failed  to act in any  manner  which  could  subject
Borrower to any direct or indirect  liability (by  indemnity or  otherwise)  for
breach of any  fiduciary,  co-fiduciary,  or other duty under ERISA,  where such
liability,  individually  or in the  aggregate,  is reasonably  likely to have a
Material  Adverse  Effect on the  Borrower.  To its best  knowledge,  no oral or
written  representation  or  communication  with  respect  to any  aspect of the
Borrower  Benefit  Plans  has been  made to  employees  of the  Borrower  or any
Affiliate which is not in accordance  with the written or otherwise  preexisting
terms and  provisions of such plans,  where any  liability  with respect to such
representation  or disclosure is  reasonably  likely to have a Material  Adverse
Effect on Borrower.

     (e) Since the date of the most recent actuarial  valuation,  there has been
(i) no  material  change  in the  financial  position  or  funded  status of any
Borrower Pension Plan, (ii) no change in the actuarial  assumptions with respect
to any  Borrower  Pension  Plan,  and (iii) no increase  in  benefits  under any
Borrower  Pension Plan as a result of plan  amendments  or changes in applicable
Law,  any  of  which  is  reasonably  likely  to  have,  individually  or in the
aggregate,  a Material Adverse Effect on Borrower.  No Borrower Pension Plan has
an  "accumulated  funding  deficiency"  within the meaning of Section 412 of the
Internal Revenue Code or Section 302 of ERISA. All contributions with respect to
a  Borrower  Pension  Plan have or will be  timely  made and there is no lien or
expected  to be a lien  under  Internal  Revenue  Code  Section  412(n) or ERISA
Section  302(f) or tax under  Internal  Revenue Code Section  4971.  Neither the
Borrower nor any Affiliate has provided, or is required to provide,  security to
a Borrower  Pension Plan pursuant to Section  401(a)(29) of the Internal Revenue
Code. All premiums required to be paid under ERISA Section 4006 have been timely
paid by  Borrower,  except to the extent any  failure  would not have a Material
Adverse Effect on Borrower.

<PAGE>

     (f) No  liability  under  Title IV of ERISA has been or is  expected  to be
incurred by the Borrower or any  Affiliate  with respect to any defined  benefit
plan currently or formerly maintained by any of them that has not been satisfied
in full (other than liability for Pension Benefit Guaranty Corporation premiums,
which have been paid when due),  except to the extent any failure would not have
a Material Adverse Effect on Borrower.

     (g) The Borrower and any Affiliate have no  obligations  for retiree health
and retiree life  benefits  under any of the Borrower  Benefit  Plans other than
with respect to benefit coverage mandated by applicable Law.

     (h) Except as disclosed  in Schedule 3 .16(h),  neither the  execution  and
delivery of this Agreement nor the consummation of the transactions contemplated
hereby  will,  by  themselves,  (1) result in any  payment  (including,  without
limitation,   severance,   unemployment   compensation,   golden  parachute,  or
otherwise) becoming due to any manager, director or any employee of the Borrower
or Affiliate  under any Borrower  Benefit  Plan or  otherwise,  (2) increase any
benefits otherwise payable under any Borrower Benefit Plan, or (3) result in any
acceleration of the time of payment or vesting of any such benefit.

         (i)  Except as set forth in the  Schedule  3.16(i),  Borrower  does not
maintain or otherwise  pay for life  insurance  policies  (other than group term
life policies on employees)  with respect to any manager,  director,  officer or
employee.  Schedule 3.16(i) lists each such insurance policy and includes a copy
of each  agreement  with a party  other  than the  insurer  with  respect to the
payment,  funding  or  assignment  of such  policy.  To the  best of  Borrower's
knowledge,  neither  Borrower nor any Borrower  Pension Plan or Borrower Benefit
Plan owns any individual or group insurance  policies issued by an insurer which
has been  found to be  insolvent  or is in  rehabilitation  pursuant  to a state
proceeding.

         SECTION 4. CONDITIONS PRECEDENT TO MAKING LOAN.

         The  Lender  shall not be  obligated  to make the Loan until all of the
following  conditions have been satisfied by proper  evidence,  execution and/or
delivery  to the  Lender of the  following  items,  all in form,  and  substance
reasonably satisfactory to the Lender:

                  (a) The Convertible Note;

                  (b) This Agreement;

                  (c) Guaranty by 1025 Investments, Inc.

                  (d) A Security  Agreement  and UCC-I for the  Borrower and any
                      Subsidiary;

                  (e)  Unanimous  consent  of  the  Board  of  Directors  of the
Borrower and all Subsidiaries,  certified by the Secretary of the Borrower as of
the Closing Date, approving or otherwise ratifying the transactions contemplated
by this  Agreement,  and  approving  the  form of this  Agreement  and the  Loan
Documents, and authorizing execution, delivery, and performance thereof;

<PAGE>

                  (f)  Specimen  signatures  of the officer of the  Borrower and
Subsidiary  executing  this  Agreement and the Loan  Documents,  and the officer
authorized to borrow under the Loan Documents, certified by the Secretary of the
Borrower or Subsidiary;

                  (g) A copy of the Articles of  Incorporation,  certified by an
official of the  Borrower's  jurisdiction  of  formation  or  incorporation  and
further  certified  by the  Secretary  of Borrower  not to have been  altered or
amended since  certification  by such official;  and a copy of the Bylaws of the
Borrower, certified as true and correct by the Secretary of the Borrower;

                  (h) Such other  instruments,  documents or items as the Lender
may reasonably request;

                  (i) No Event of Default  shall have occurred and be continuing
under this Agreement, the Convertible Note or any other Loan Document, nor shall
the Borrower be in default under any other  document or agreement to which it is
a party or by which it or any of its properties or assets are bound; and

                  (j) Payment of the  origination and commitment fees referenced
in Section 2.1 hereof.

     SECTION 5. AFFIRMATIVE  COVENANTS.  The Borrower covenants that, so long as
any portion of the  Liabilities  remains unpaid and unless the Lender  otherwise
consents in writing, it will:

     5.1  TAXES  AND  LIENS.  Promptly  pay,  or cause to be  paid,  all  taxes,
assessments  and other  governmental  charges  which may  lawfully  be levied or
assessed upon the income or profits of the Borrower, or upon any property, real,
personal or mixed, belonging to the Borrower, or upon any part thereof, and also
any lawful claims for labor, material and supplies which if unpaid, might become
a lien or charge  against any such  property;  provided,  however,  the Borrower
shall not be required to pay any such tax, assessment,  charge, levy or claim so
long as the validity thereof shall be actively contested in good faith by proper
proceedings; but provided further that any such tax, assessment, charge, levy or
claim shall be paid or bonded in a manner  satisfactory to the Lender  forthwith
upon the commencement of proceedings to foreclose any lien securing the same.

     5.2 BUSINESS AND EXISTENCE.  Do or cause to be done all things necessary to
preserve  and to keep in full  force and effect any  licenses  necessary  to the
business of the Borrower,  its corporate existence and rights of its franchises,
trade names,  trademarks,  and permits  which are  reasonably  necessary for the
continuance of its business;  and continue to engage principally in the business
currently operated by the Borrower.

     5.3 INSURANCE AND PROPERTIES.  Keep its business and properties  insured at
all times with responsible  insurance companies and carry such types and amounts
of insurance as are required by all federal,  state and local governments in the
areas  which  Borrower  does  business  and as are  usually  carried by entities
engaged  in the  same or  similar  business  similarly  situated.

<PAGE>

In  addition,  Borrower  shall  maintain  in full force and effect  policies  of
liability insurance in amounts at least equal to that currently in effect.

     5.4 MAINTAIN PROPERTY.  Maintain its property in good order and repair and,
from time to time, make all needed and proper repairs,  renewals,  replacements,
additions  and  improvements  thereto,  so that the  business  carried on may be
properly and  advantageously  conducted at all times in accordance  with prudent
business  management,  and maintain  annually  adequate reserves for maintenance
thereof.

     5.5 TRUE BOOKS.  Keep true books of record and account in which full,  true
and correct  entries will be made of all of its dealings and  transactions,  and
set aside on its books such  reserves as may be required by  Generally  Accepted
Accounting  Principles,   consistently  applied,  with  respect  to  all  taxes,
assessments,  charges,  levies and claims referred to in Section 5.1 hereof, and
with respect to its business in general, and include such reserves in interim as
well as year-end financial statements.

     5.6 PAY INDEBTEDNESS TO LENDER AND PERFORM OTHER  COVENANTS.  (a) Make full
and timely payment of the principal of and interest on the Convertible  Note and
all other  indebtedness  of the Borrower to the Lender,  whether now existing or
hereafter  arising,  including the payment of fees; and (b) duly comply with all
terms and covenants contained in this Agreement, the Convertible Note, the other
Loan  Documents  and any other  instruments  and  documents  given to the Lender
pursuant to this Agreement.

     5.7 Right of Inspection. Permit any person designated by the Lender, at the
Lender's  expense,  to  visit  and  inspect  any of the  properties,  books  and
financial  reports  of  the  :Borrower,   all  at  such  reasonable  times  upon
forty-eight (48) hours prior notice to Borrower,  and as often as the Lender may
reasonably  request,  provided  the  Lender  does not  interfere  with the daily
operations of the Borrower.

     5.8 OBSERVANCE OF LAWS.  Conform to and duly observe all laws,  regulations
and other valid  requirements  of any  regulatory  authority with respect to the
conduct of its business.

     5.9  BORROWER'S  KNOWLEDGE  OF DEFAULT.  Upon an officer or director of the
Borrower  obtaining  knowledge of, or threat of, an Event of Default  hereunder,
cause such  officer to  promptly,  within no more than ten (10)  business  days,
deliver to the Lender notice thereof  specifying the nature thereof,  the period
of existence thereof, and what action the Borrower proposes to take with respect
thereto.

     5.10 NOTICE OF PROCEEDINGS. Upon an officer or director of the Borrower
obtaining  knowledge of any material  litigation,  dispute or proceedings  being
instituted  or  threatened  against  the  Borrower,  or  any  attachment,  levy,
execution or other process being instituted  against any assets of the Borrower,
cause such officer to promptly, within no more than ten (10) business days, give
the  Lender  written  notice  of such  litigation,  dispute,  proceeding,  levy,
execution or other process.

     5.11  PAYMENT  OF  LENDER'S  EXPENSES.  If at any time or times  hereafter,
Lender employs

<PAGE>

counsel in connection with the execution and  consummation  of the  transactions
contemplated  by this  Agreement or to  commence,  defend or  intervene,  file a
petition,  complaint, answer, motion or other pleading, or to take any action in
or with respect to any suit or proceeding  (bankruptcy or otherwise) relating to
this Agreement or any other Loan  Document,  or any other  agreement,  guaranty,
Convertible Note, instrument or document heretofore, now or at any time or times
hereafter executed by Borrower and delivered to Lender, or to enforce any rights
of Lender  hereunder  whether  before or after  the  occurrence  of any Event of
Default,  or to collect any of the Liabilities,  then in any of such events, all
of the reasonable attorneys' fees arising from such services,  and any expenses,
costs and charges relating thereto, shall be part of the Liabilities, payable on
demand.  In connection the initial loan  documentation,  counsel fees shall fees
shall not exceed $5,000.

     5.12 LENDER'S REPRESENTATIVE. Borrower hereby grants to a representative of
the Lender the right to attend and observe all Meetings of the Borrower's  Board
of Directors  held during the period  commencing  on the Closing Date and for so
long as any Liabilities are due and owing to Lender, provided that said designee
is reasonably acceptable to the Board of Directors of the Borrower. The Borrower
shall  cause  such  designee  to  receive  written  notice  of all  meetings  of
Borrower's  Board of  Directors as if such  designee was a member of  Borrower's
Board of Directors. Lender's designee shall be reimbursed for all reasonable and
customary out of pocket expenses relating to his service on the Board and or any
Committee thereof, and shall receive such compensation,  if any, all as shall be
commensurate with  reimbursements  and payments  received by other  non-employee
directors.  Borrower hereby agrees to provide  Lender's  designee with a copy of
all written  consents of Borrower's  Board of Directors within ten business days
after the date of any such consent.

     5.13  FINANCIAL  REPORTING.  The Borrower  shall provide to Lender  audited
annual  financial  statements,  audited  by  mutually  agreed  upon  independent
certified public accounting firm. Said financial statements shall be prepared in
accordance with Generally Accepted Accounting Principles,  consistently applied,
and shall be delivered to Lender  within ninety (90) days after the close of the
Borrower's fiscal year. The report of the auditor that accompanies the financial
statements shall not contain any  qualifications or limitations.  The Borrower's
fiscal  year ends on  December  31, and shall not be changed  without  the prior
written  consent of the Lender.  The Borrower shall provide to Lender  unaudited
monthly financial statements (including month to date and year to date actual to
prior  periods)  and a report  in the  form of  Exhibit  2,  both  presented  in
accordance with Generally Accepted Accounting Principles ("GAAP"),  consistently
applied, and shall be delivered to Lender within twenty-five (25) days after the
close of the  Borrower's  month.  Borrower  shall also deliver any other reports
reasonably  requested by Lender. If the reports are not delivered within 25 days
of the month or request date,  whichever is  applicable,  then the Borrower will
pay a late fee of $250 per day until the report is delivered.

     5.14 FINANCIAL  COVENANTS.  As of the date hereof and until the Termination
Date, the Borrower must maintain the following ratios:

                  (a) Cash Interest  Coverage.  Until the Termination  Date, the
Borrower  shall  maintain  a  Consolidated  EBITDA  ratio,  based  on any of the
Borrower's quarterly financial statements (as determined on the last day of each
fiscal quarter for the immediately  preceding

<PAGE>

quarter),  of 2.0 or  greater.  The  Consolidated  EBITDA  ratio is  defined  as
Consolidated EBITDA divided by Interest Expense  (Consolidated EBITDA / Interest
Expense).

                  (b) Cash Flow Coverage Ratio.  The ratio of (a) the Borrower's
Cash Flow to (b) the sum of (i) the  Borrower's  consolidated  Interest  Expense
plus  (ii)  the  Borrower's  scheduled  payments  of  principal  (including  the
principal component of Capital Leases) to be paid during the 12 months following
any date of determination  shall at all times exceed 1.5 to 1.0. Compliance with
the ratio  will be tested as of the last day of each  month,  with Cash Flow and
Interest Expense being calculated for the twelve months then ended.

                  (c) Current  Ratio.  The Borrower will at all times maintain a
Current Ratio of not less than 1.5 to 1.0. The Current Ratio shall be calculated
and tested quarterly as of the last day of each fiscal quarter of the Borrower.

                  (d) Actual versus  Budget.  The Borrower  shall on a quarterly
basis  achieve 75 percent of its  budgeted  revenue and income.  Budget  numbers
shall be those  delivered  to Lender  contemporaneously  herewith and then on an
annual calendar basis.

     5.15  CERTIFICATE  OF  COVENANT  COMPLIANCE  On the last day of each March,
June,  October and December,  the Borrower will issue a Certificate  of Covenant
Compliance,  executed by either the Chief  Executive  Officer or Chief Financial
Officer in a form  acceptable  to Lender.  If the Borrower is not in  compliance
with the  covenants  specified  in Sections 5 and 6 herein,  the  Borrower  will
modify the  Certificate  of Covenant  Compliance  by stating the  exception  and
providing a detailed explanation of the non-compliance.

     SECTION 6. NEGATIVE  COVENANTS.  The Borrower covenants and agrees that, so
long as any  portion  of the  Liabilities  remains  unpaid and unless the Lender
otherwise gives its prior written consent, it will not, directly or indirectly:

     6.1 MORTGAGES,  LIENS, ETC. Incur, create, assume or permit to exist, other
than existing liens as disclosed in Schedule 3.5, any mortgage, pledge, security
interest, encumbrance, lien or charge of any kind, including liens arising under
conditional sales or other title retention  agreements upon any of its assets or
properties  of any  character  other than in the  ordinary  course of  business,
without the prior written  consent of the Lender.  Lender shall  subordinate its
security position to a senior lender under documentation and terms acceptable to
Lender.

     6.2 CAPITAL  EXPENDITURES.  Make or become  committed to make,  directly or
indirectly, any capital expenditures (including written limitation,  capitalized
leases)  amounting to in excess of $50,000 in the  aggregate,  without the prior
written consent of the Lender.

     6.3 LOANS AND INVESTMENTS. Lend or advance money, credit or property to any
Person,  or invest in (by capital  contribution  or  otherwise),  or purchase or
repurchase the stock or indebtedness  or assets or properties of any Person,  or
agree to do any of the foregoing, other than in the ordinary course of business,
without the prior written consent of the Lender.

<PAGE>

     6.4  GUARANTEES.  Assume,  endorse or otherwise  become or remain liable in
connection  with the  obligations  (including  accounts  payable)  of any  other
Person, other than in the ordinary course of business.

     6.5 SALE OF ASSETS,  DISSOLUTION,  ETC. Transfer,  sell,  assign,  lease or
otherwise  dispose  of  any of its  properties  or  assets,  or  any  assets  or
properties  necessary or desirable for the proper  conduct of its  business,  or
transfer,  sell,  assign or otherwise  dispose of any of its  Convertible  Note,
accounts,  or  contract  rights  to any  Person,  or  change  the  nature of its
business,  wind-up,  liquidate  or dissolve,  or agree to any of the  foregoing,
other than in the ordinary course of business, without the prior written consent
of the Lender.

     6.6  ACQUISITION  OF ASSETS.  Permit the purchase,  acquisition or lease of
assets of any Person or Persons,  other than in the ordinary course of business,
without the prior written consent of Lender.

     6.7 COMPENSATION. The Borrower must not increase the compensation of any of
its  officers  or  consultants  making  more than  $100,000  per year,  hire any
relative of any officer, director or shareholder of the Borrower, or pay a bonus
to any such person.

         6.8  INDEBTEDNESS.  Incur,  create,  assume or  permit  to  exist,  any
indebtedness  or  obligation  or enter  into or  extend  or amend  any  material
agreement or lease in excess of $100,000,  without the prior written  consent of
Lender.

     6.9 SUBSIDIARIES. Establish or form a partially or wholly owned subsidiary.

     SECTION 7. EVENTS OF DEFAULT.

     7.1 DEFAULTS.  Each of the following  shall  constitute an Event of Default
(an "Event of Default") hereunder: (a) the failure to pay when due any principal
or interest  hereunder or under the Convertible Note and the continuance of such
failure  for a period  of ten  (10)  business  days  thereafter;  (b) any  other
violation  by the Borrower of any recital,  funding  condition,  representation,
warranty,  covenant or agreement  contained  in this  Agreement or in any of the
Loan  Documents;  or any  violation  by the  Borrower  of any  recital,  funding
condition,  representation,  warranty,  covenant or  agreement  contained in any
other  document or  agreement  to which the Borrower and the Lender are parties;
(c) any change in the majority of the Board of Directors or of the management or
in the control of the Borrower which is not  contemplated in Section 5.12 herein
or  previously  approved  by the  advance  written  consent of the  Lender;  (d)
execution of any  agreement,  letter,  memorandum  of  understanding  or similar
document  relating to the transfer,  disposition or sale of all or substantially
all of the assets of the Borrower to anyone  without the approval of the Lender;
(e)  an  assignment  for  the  benefit  of  creditors  by the  Borrower;  (f) an
application  for the appointment of a receiver or liquidator for the Borrower or
any of its material  assets;  (g) an issuance of an attachment or the entry of a
judgment  against  the  Borrower  in excess  of  $50,000;  (h) a default  by the
Borrower with respect to any other  indebtedness in excess of $50,000 due to the
Lender;  (i) the  making or  sending  of a notice of  intended  bulk sale by the
Borrower;  (1)  the  issuance  of  a  determination  by  a  court  of  competent
jurisdiction that one or more Loan Documents or one or more material  provisions
of any Loan Document is unenforceable,  or the issuance of an injunction against
the  enforcement of any such

<PAGE>

Loan Document or material  provision;  (m) upon the reasonable  determination by
the Lender that there has been a Material Adverse Effect; and (n) the occurrence
of an Activity  Event of Default (as  defined in Section 8.6  herein).  Upon the
occurrence of any of the foregoing  Events of Default,  the Convertible Note and
the Loan will be considered to be in default and the entire unpaid principal sum
hereof, together with accrued interest, will at the option of the holder thereof
become  immediately  due and payable in full. Upon the occurrence of an Event of
Default,  the Borrower agrees to pay reasonable  collection  costs and expenses,
including reasonable  attorneys' fees and interest (cash only, not stock) at the
lesser of: (i) 18% per annum  (cash only,  not stock) or (ii) the  maximum  rate
allowed under  applicable  law, from the date of the default at the maximum rate
permitted by law computed on the unpaid principal balance.

     SECTION 8. SBIC PROVISIONS.  The Borrower acknowledges that the Lender is a
small business  investment  company licensed by the United States Small Business
Administration,   and  makes  the  following  representations,   warranties  and
covenants to Lender:

     8.1 SMALL  BUSINESS  CONCERN.  The Borrower  represents and warrants to the
Lender that the Borrower,  taken together with its "affiliates" (as that term is
defined  in 13 C.F.R.  ss.121.103),  is a "Small  Business  Concern"  within the
meaning of 15 U.S.C.  ss.662(5),  that is Section  103(5) of the Small  Business
Investment Act of 1958, as amended (the "Act"), and the regulations  thereunder,
including 13 C.F.R. ss. 107, and meets the applicable size eligibility  criteria
set forth in 13 C.F.R. ss.  121.30l(c)(1) or the industry  standard covering the
industry in which the  Borrower is  primarily  engaged as set forth in 13 C.F.R.
ss.121.30l(c)(2).  Neither the  Borrower nor any of its  subsidiaries  presently
engages  in any  activities  for which a small  business  investment  company is
prohibited from providing funds by the SBIC Act, including 13 C.F.R. ss.107.

     8.2 SMALL BUSINESS ADMINISTRATION  DOCUMENTATION.  On or before the Closing
Date, Lende r shall have received SBA Form 480 (Size Status Declaration) and SBA
Form 652 (Assurance of Compliance) which have been completed and executed by the
Borrower,  and SBA Form 1031 (Portfolio Finance Report),  Parts A and B of which
have been completed by the Borrower (the "SBA Documents").

     8.3 INSPECTION. The Borrower will permit the Lender or its representatives,
at  Borrower's  expense,  and  examiners  of the SBA to visit  and  inspect  the
properties  and  assets of the  Borrower,  to examine  its books of account  and
records,  and to discuss the Borrower's affairs,  finances and accounts with the
Borrower's officers,  senior management and accountants,  all at such reasonable
times as may be requested by the Lender or SBA.

     8.4  INFORMATIONAL  COVENANT.  Within  sixty (60) days after the end of the
fiscal year of the Borrower,  the Borrower will furnish or cause to be furnished
to Lender information  required by the SBA concerning the economic impact of the
Lender's  investment,  for (or as of the end of) each fiscal year, including but
not limited to,  board  minutes,  information  concerning  full-time  equivalent
employees;  Federal, state and local income taxes paid; gross revenue; source of
revenue growth;  after-tax profit and loss; and Federal,  state and local income
tax  withholding.  Such  information  shall be  forwarded  by Borrower on a form
provided by the Lender.  The Borrower also will furnish or cause to be furnished
to the  Lender  such other  information

<PAGE>

regarding the business,  affairs and condition of the Borrower as the Lender may
from time to time reasonably request.

     8.5 USE OF PROCEEDS. Subject to Section 2.3, the Borrower certifies that it
will use the  proceeds  from the Loan for the  purposes  and in the  amounts set
forth on Schedule 2.3. The Borrower will deliver to the Lender from time to time
promptly following the Lender's request, a written report,  certified as correct
by an officer,  verifying  the purposes and amounts for which  proceeds from the
Loan have been  disbursed.  Subject to Section 2.3, the Borrower  will supply to
the Lender such additional  information  and documents as the Lender  reasonably
requests with respect to its use of proceeds, and will permit the Lender to have
access to any and all  Borrower  records and  information  and  personnel as the
Lender deems  necessary to verify how such proceeds have been or are being used,
and to assure that the  proceeds  have been used for the  purposes  specified on
Schedule 2.3.

     8.6 ACTIVITIES AND PROCEEDS.

                  (a) Neither the Borrower nor any of its affiliates (as defined
in above) will  engage in any  activities  or use  directly  or  indirectly  the
proceeds  from the Loan for any  purpose for which a small  business  investment
company is prohibited from providing funds by the SBIC Act,  including 13 C.F.R.
ss. 107.

                  (b)  Without  obtaining  the  prior  written  approval  of the
Lender, the Borrower will not change within one (1) year of the Closing Date the
Borrower's  business  activity from that described on Schedule 8.6 to a business
activity which a small business  investment company is prohibited from providing
funds by the SBIC Act. The Borrower agrees that any such changes in its business
activity  without  such prior  written  consent of the Lender will  constitute a
material  breach of the obligations of the Borrower under this Agreement and the
Loan Documents (an "Activity Event of Default").

SECTION 9. MISCELLANEOUS.

     9.1 REGISTRATION RIGHTS.

                  (a)  Registrable  Securities  shall  be fully  registered  and
freely  tradeable  within 180 days from the closing of the Loan. If the Borrower
for any reason fails to have the Registrable  Securities fully registered within
180 days from closing of the Loan, then, at the option of Lender,  for each full
calendar  month  that  the  Registrable  Securities  are not  fully  registered,
Borrower shall issue 0.1 % of its common shares then  outstanding  computed on a
fully diluted basis per day until the shares are registered.

                  (b) If at any time after the date hereof,  the Borrower  shall
file a registration statement relating to any of its securities,  it will notify
the Holder in writing and, upon the Holder's request, will include the offer and
sale of Registrable Securities in such registration statement. In the event that
the Borrower fails include  Registrable  Securities in a piggy back statement as
required herein, the Borrower shall give notice demanding a registration and 105
days  after the  notice  the  Borrower  shall  prepare  and file a  registration
statement  with the SEC

<PAGE>

with  respect to such  Registrable  Securities.  If the  Borrower  fails to file
within said time period,  then, at the option of Lender,  for each full calendar
month that the Registrable  Securities are not fully registered,  Borrower shall
Borrower shall issue 0.1 % of its common shares then  outstanding  computed on a
fully diluted basis per day until the shares are registered.

                  (c) Whenever required to include Registrable Securities in any
registration  or to  effect  the  registration  of  any  Registrable  Securities
pursuant to this Agreement,  the Borrower shall, as  expeditiously as reasonably
possible prepare and file with the SEC a registration  statement with respect to
such  Registrable  Securities  and use its absolute best lawful efforts to cause
such  registration  statement to become  effective,  and use its  absolute  best
efforts to keep such registration statement effective until all such Registrable
Securities have been distributed.  In addition,  the Borrower shall use its best
lawful  efforts  to  register  and  qualify  the  securities   covered  by  such
registration  statement  under  such other  securities  or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders, provided that the
Borrower shall not be required in connection therewith or as a condition thereto
to qualify as a broker-dealer  in any states or  jurisdictions or to do business
or to file a  general  consent  to  service  of  process  in any such  states or
jurisdictions.

                  (d)  All  expenses,  other  than  underwriting  discounts  and
commissions  incurred  in  connection  the  registrations  contemplated  herein,
including, without limitation, all registration,  filing and qualification fees,
printers'  and  accounting  fees,  fees and  disbursements  of  counsel  for the
Borrower,  and the  reasonable  fees and  disbursements  of one  counsel for the
selling Holders, shall be borne by the Borrower.

                  (e) Subject to the terms and  conditions of this Agreement and
the Convertible  Notes, the right to cause the Borrower to register  Registrable
Securities  pursuant  to  this  Agreement  may  be  assigned  by  Holder  to any
transferee  or assignee of such  securities;  provided  that said  transferee or
assignee  is a  transferee  or  assignee  of at least five  percent  (5%) of the
Registrable Securities.

     9.2  COMPUTATION  OF  INTEREST  AND PAYMENT AND  PREPAYMENT  OF  PRINCIPAL.
Interest on the Convertible Note shall be computed on the basis of a year of 365
days. If any principal amount under the Convertible Note becomes due and payable
on other than a Business Day, the maturity thereof shall be extended to the next
succeeding  Business Day and interest on such principal  shall be payable at the
then applicable rate during such extension period.

     9.3 WAIVER OF DEFAULT.  The Lender may, by written  notice to the Borrower,
at any time and from  time to time,  waive any  default  in the  performance  or
observance  of any  condition,  covenant  or other  term  hereof or any Event of
Default  which shall have  occurred  hereunder  and its  consequences.  Any such
waiver  shall be for such  period  and  subject to such  conditions  as shall be
specified in any such notice.  In the case of any such waiver,  the Borrower and
the Lender shall be restored to their former  position and rights  hereunder and
under the other Loan  Documents,  and any Event of  Default  so waived  shall be
deemed to be cured and not  continuing;  but no such waiver  shall extend to any
subsequent or other Event of Default, or impair any right consequent thereon.
<PAGE>

     9.4 AMENDMENTS AND WAIVERS. The Lender and the Borrower may, subject to the
provisions of this  section,  from time to time,  enter into written  agreements
supplemental  hereto for the purpose of adding any  provisions to this Agreement
or the other Loan  Documents  or changing or waiving in any manner the rights or
requirements  of the  Lender  or of the  Borrower  hereunder.  Any such  written
supplemental agreement or waiver shall be binding upon the Borrower and Lender.

     9.5 NOTICES.  Except in cases where it is expressly  herein  provided  that
such notice,  request or demand is not effective  until received by the party to
whom  it is  addressed,  all  notices,  requests  and  demands  to or  upon  the
respective  parties  hereto under this  Agreement  and all other Loan  Documents
shall be deemed to have been given or made when  deposited in the mail,  postage
prepaid by registered or certified mail, return receipt requested,  addressed as
follows or to such other  address as may be hereafter  designated  in writing by
the respective parties.

            The Borrower:             International Travel CD's, Inc.
                                      111 Presidential Boulevard, Suite 158
                                      Bala Cynwyd, P A 19004
                                      Attention: Gerald Harrington
                                      Phone: (610) 771 0233
                                      Fax (610) 771-0238

            The Lender:               Trident Growth Fund, LP
                                      700 Gemini
                                      Houston, Texas 77058
                                      Attention: Larry St. Martin
                                      Phone: (281) 488-8484
                                      Fax: (281) 488-8404

     9.6 NO WAIVER: Cumulative Remedies. No waiver of any provision hereof shall
be deemed to operate  as a waiver of any other  provision  hereof.  In the event
that the  Borrower  shall be deemed to have waived any  provision  hereof at any
time,  such waiver shall not be deemed to have  extended to any other  provision
hereof at the time such waiver was deemed to have occurred or at any other time.
No failure to exercise and no delay in  exercising,  on the part of Lender,  any
right,  power or privilege  hereunder,  shall operate as a waiver  thereof;  nor
shall any single or partial exercise of any right, power or privilege  hereunder
preclude  any other or further  exercise  thereof or the  exercise  of any other
right, power or privilege.  The rights and remedies herein and in the other Loan
Documents  provided are  cumulative  and not exclusive of any rights or remedies
provided by law.

     9.7 SURVIVAL OF AGREEMENTS. All agreements,  representations and warranties
made herein shall survive the  execution and delivery of this  Agreement and the
other  Loan  Documents  and the making and  renewal of loans  hereunder  and the
termination of this Agreement and the other Loan Documents.

     9.8 GOVERNING LAW. This Agreement and the legal relations among the parties
hereto  shall be governed by and  construed in  accordance  with the laws of the
State of Texas withou

<PAGE>

regard to its conflicts of law doctrine.  Each of the parties hereto irrevocably
consents to the  jurisdiction  of the federal and state courts located in Dallas
County, the State of Texas.

     9.9 ENFORCEABILITY OF AGREEMENT. Should anyone or more of the provisions of
this Agreement be determined to be illegal or unenforceable as to one or more of
the  parties,  all other  provisions  nevertheless  shall remain  effective  and
binding on the parties hereto, up to the full amount permitted by law.

     9.10 USURY SAVINGS CLAUSE.  Notwithstanding  any other provision herein, in
the event that the aggregate  interest  rate charged  under the Loan  Documents,
including  all charges or fees in connection  therewith  deemed in the nature of
interest,  exceeds the maximum legal rate,  then the Lender shall have the right
to make such adjustments as are necessary to reduce the aggregate  interest rate
to the maximum legal rate. The Borrower waives any right to prior notice of such
adjustment  and further  agrees that such  adjustment  may be made by the Lender
subsequent to notification from the Borrower that the aggregate interest charged
exceeds the maximum legal rate.  There are no unwritten oral  agreement  between
Borrower and Lender.

     9.11  Execution  of  Counterparts.  This  Agreement  may be executed in any
number of  counterparts,  each of which  shall be deemed  to be an  original  as
against  any party  whose  signature  appears  thereon,  and all of which  shall
together constitute one and the same instrument.

     9.12  STAMP  OR  OTHER  TAXES.  The  Borrower  agrees  to pay  any  and all
documentary,  intangible  stamp or excise  taxes  now or  hereafter  payable  in
respect to this  Agreement  and the other  Loan  Documents  or any  modification
thereof,  and shall hold the Lender harmless with respect thereto.  The Borrower
further  agrees  that Lender may deduct  from any  account of the  Borrower  the
amount of any such documentary or intangible stamp or tax payable,  the decision
of the Lender as to the amount thereof to be conclusive, absent manifest error.

     9.13 INTENTIONALLY DELETED

     9.14 FEES AND  EXPENSES.  The Borrower  shall  reimburse the Lender for all
reasonable  past and future fees and expenses  (including but not limited to the
origination and commitment fee, reasonable  out-of-pocket  costs, legal expenses
(as detailed above),  offering fees,  advisory and consulting  fees,  travel and
communication  expenses, and reproduction costs) incurred in connection with the
Loan Documents  ("Fees and Expenses").  Fees and Expenses  incurred  through the
Closing  Date by the  Borrower  will be  netted  against  the  initial  proceeds
received under this Agreement. Fees and Expenses incurred after the Closing Date
shall  promptly be paid by the  Borrower  upon receipt from Lender of an invoice
itemizing  such  Fees and  Expenses.  Fees and  Expenses  incurred  hereof to an
affiliate of the Lender shall be included with the Borrower's Liabilities.

     9.15  ASSIGNABILITY.  This  Agreement  shall  inure to the  benefit  and be
binding upon the parties  hereto and their  respective  successors and permitted
assigns.  This Agreement and the  Convertible  Note will not be  assignable,  in
whole or in part,  by the  Borrower,  without the prior  written  consent of the
Lender.  This Agreement may be assigned or transferred,  in whole or in part, by
the Lender upon written  notice to the  Borrower.  A change in control of either
party shall

<PAGE>

be deemed to be an assignment.  Any purported  assignment  effected without such
consent shall be null and void.

     9.16 COMPLETE  AGREEMENT.  This Agreement  constitutes the entire agreement
between the parties and supersedes all agreements, representations,  warranties,
statements, promises and understanding, whether oral or written, with respect to
the subject matter hereof.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

         IN WITNESS  WHEREOF,  the  Borrower  and the Lender  have  caused  this
Agreement to be duly executed by their duly authorized  officers,  all as of the
day and year first above written.

WITNESS:                                    TRIDENT GROWTH FUND, LP
                                            By: GEMINI MANAGEMENT, LLC, its
                                            GENERAL PARTNER

_______________________________     By: _______________________________
Name:                                   Scott Cook, Authorized Member

WITNESS:                                    INTERNATIONAL TRAVEL CD'S, INC.

_______________________________     By: _______________________________
Name:                                       Gerald Harrington
                                            President

<PAGE>

                                   ATTACHMENTS

Exhibit 1                  Form of Convertible Note
Exhibit 2                  Financial Summary

Schedule 2.3               Use of Proceeds
Schedule 3.1               Organization
Schedule 3.1(b)            Subsidiaries
Schedule 3.3               Outstanding Equity Rights
Schedule 3.5               Material Liabilities
Schedule 3.8               Material Agreements
Schedule 3.16              Employee Benefit Plans
Schedule 5.15              Certificate of Covenant Compliance
Schedule 8.6               Business Activity

<PAGE>

                                    EXHIBIT 2
<TABLE>
<CAPTION>

                                                QTD
                           06/30/31     09/30/01     12/31/01     3/31/02
                  ---------------------------------------------------------
<S>                      <C>            <C>          <C>          <C>
Revenue
Gross Margin
Operating Expense ---------------------------------------------------------
EBITDA
Depreciation
Loan Fees
Interest          ---------------------------------------------------------
Net Income (Loss)
                  =========================================================
</TABLE>

<TABLE>
<CAPTION>

                                             MTD
                  2002     2001      Diff     &    Budget    Actual    Diff  %
                  -------------------------------------------------------------
<S>               <C>     <C>        <C>      <C>   <C>      <C>      <C>   <C>
Revenue
Gross Margin
Operating Expense --------------------------------------------------------------
EBITDA
Depreciation
Loan Fees
Interest          --------------------------------------------------------------
Net Income (Loss)
                  ==============================================================
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                                                                       YTD
                                    2000     2001     2002             2002     2001     Diff       %
                           -----------------------------------         ---------------------------------------
<S>                       <C>               <C>       <C>              <C>      <C>      <C>       <C>
Revenue
Gross Margin
Operating Expense          -----------------------------------         ---------------------------------------
EBITDA
Depreciation
Loan Fees
Interest                   -----------------------------------         ---------------------------------------

Net Income (Loss)
                           ===================================         =======================================
</TABLE>

<TABLE>
<CAPTION>

                           Budget      Actual      Diff      %
                           -----------------------------------
<S>                        <C>         <C>         <C>      <C>
Revenue
Gross Margin
Operating Expense          -----------------------------------
EBITDA
Depreciation
Loan Fees
Interest                   -----------------------------------

Net Income (Loss)
                           ===================================
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                    As of            As of              As of           Variance
Balance Sheet                                        12/31/01            Diff          Explanation
--------------------------------------------------------------------------------------------------
<S>                                 <C>             <C>                 <C>            <C>
Cash & AIR
Other Current Assets                _________        _________         _________
         Current Assets:
Other Assets                        _________        _________         _________
         TOTAL ASSETS:
                                    =========        ========
Total Current Liabilities
Debt                                _________        _________         _________
         Total LIT Liabilities      _________        _________         _________
         TOTAL LIABILITIES:
EQUITY                              _________        _________         _________
TOTAL LIAB. & EQUITY:               =========        ========

                                                                   CURRENT RATIO:
EBITDA

Less: Non-Financed
Capital Expenditures                _________                      Current Liabilities:  _________
                  Cash Flow                                                  RATIO:
                                                                                         ========

Interest Expense
Principal Payments                  _________
         Debt Service               _________

CASH FLOW COVERAGE
RATIO:                              ========

CASH FLOW COVERAGE
EBITDA
Interest Expense                    _________

CASH FLOW COVERAGE
RATIO:                              ========

</TABLE>

<PAGE>

                                  Schedule 5.15

         I, the undersigned hereby represent that International Travel CD's Inc.
is in compliance with all of its covenants  specified in Sections 5 and 6 of the
LOAN  AGREEMENT   originally  dated  as  of  January  ___,  2003,   executed  by
International Travel CD's Inc, with its principal place of business at ________,
in favor of Trident  Growth Fund,  LP., with its principal  place of business at
700 Gemini, Suite 100, Houston, Texas 77058.

                                            By: _______________________________

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]