Document:

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                                                                EXHIBIT 10(o)(3)

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THIS DEBENTURE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED ("ACT"), OR APPLICABLE STATE SECURITIES LAWS ("STATE ACTS"), AND SHALL
NOT BE SOLD, HYPOTHECATED, OR OTHERWISE TRANSFERRED, UNLESS SUCH TRANSFER IS
MADE IN COMPLIANCE WITH THE ACT AND THE STATE ACTS.
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                           COVER-ALL TECHNOLOGIES INC.

                           8.00% CONVERTIBLE DEBENTURE

$350,000                                                                  NO. __

                         DATE OF ISSUE: AUGUST 21, 2002

      COVER-ALL TECHNOLOGIES INC., a Delaware corporation (the "Company" or
"Borrower"), for value received, promises to pay to:

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

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

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

or to its order, (together with any assignee, jointly or severally, the "Holder"
or "Lender") on or before September 1, 2009 (the "Due Date") (unless this
Debenture shall have been sooner called for redemption or presented for
conversion as herein provided), the sum of Three Hundred Fifty Thousand Dollars
($350,000) (the "Principal Amount") and to pay interest on the unpaid Principal
Amount at the rate of 8.00% per annum. All payments of both principal and
interest shall be made at the address of the Holder hereof as it appears in the
books and records of the Borrower, or at such other place as may be designated
by the Holder hereof. This Debenture is one of the 8.00% Convertible Debentures
of the Company in the aggregate principal amount of Two Million One Hundred
Thousand Dollars ($2,100,000) issued under, and pursuant to, the terms and
provisions of the Convertible Loan Agreement, dated as of June 28, 2001, by and
among Cover-All Technologies Inc. as Borrower and Renaissance US Growth & Income
Trust PLC and BFSUS Special Opportunities Trust PLC as Lender and Renaissance
Capital Group, Inc. as Agent for the Lender (together with any amendments
thereto, the "Loan Agreement").

      1.    INTEREST. Interest on the Principal Amount outstanding from time to
time shall be payable in monthly installments commencing October 1, 2002, and
subsequent payments shall be made on the first day of each month thereafter
until the Principal Amount and all accrued and unpaid interest shall have been
paid in full. Overdue principal and interest on the Debenture shall bear
interest at the rate of 18% per annum.

      2.    MATURITY. If not sooner paid, redeemed or converted, this Debenture
shall mature on September 1, 2009 at which time the remaining unpaid Principal
Amount, and all accrued and unpaid interest and any other charges then due under
the Loan Agreement, shall be due and

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payable in full. This Debenture shall be prepaid PRO RATA with any prepayments
of Indebtedness. This Debenture shall be senior in right of payment to all other
Indebtedness of the Company.

      3.    MANDATORY PRINCIPAL INSTALLMENTS. If this Debenture is not sooner
redeemed or converted as provided hereunder, Borrower shall pay to Holder,
commencing on September 1, 2005 and continuing on the first day of each
successive month thereafter prior to maturity, mandatory principal redemption
installments, each of such installments to be in the amount of Ten Dollars ($10)
per Thousand Dollars ($1,000) of the then remaining Principal Amount, and
further, at maturity, Borrower shall pay to Holder a final installment of the
remaining unpaid Principal Amount, and all accrued and unpaid interest and any
other charges then due under the Loan Agreement.

      4.    OPTIONAL REDEMPTION BY HOLDER.

            (a)   If at any time after the date hereof (i) a "person" or "group"
      within the meaning of Sections 13(d) and 14(d)(2) of the Securities
      Exchange Act of 1934, as amended, acquires more than 35% of the Company's
      voting securities, (ii) John W. Roblin resigns as CEO of the Borrower,
      prior to the expiration of his current employment term pursuant to his
      then-current employment agreement, (iii) all or substantially all of the
      assets or capital stock of the Company or its Subsidiaries are sold, or
      (iv) the Company or its Subsidiaries are merged or consolidated with or
      into unaffiliated entities, in any case without the written consent of
      Holder, the Holder shall have the right to require this Debenture to be
      redeemed by the Company at the sum equal to the Principal Amount, together
      with an amount equal to an 18% annual yield from the date hereof on the
      Principal Amount (calculated after giving effect to any and all payments
      made by Borrower to Lender under the Debenture) through the date of
      redemption (the "Redemption Date").

            (b)   The Holder may exercise its right to require that the Company
      redeem this Debenture pursuant to Section 4(a) prior to maturity by giving
      written notice thereof to the Company, which notice shall specify the
      terms of redemption (including the place at which the Holder may obtain
      payment), the total redemption payment and the Redemption Date, which
      Redemption Date shall be within thirty (30) days of the date of such
      notice.

      5.    OPTIONAL REDEMPTION BY COMPANY.

            (a)   On any interest payment date, and after receipt of irrevocable
      notice from the Borrower as provided for below, this Debenture is
      redeemable, in whole but not in part, at 101% of the Principal Amount,
      together with accrued and unpaid interest through the Redemption Date, by
      the Company, if all of the following conditions are satisfied: (i) the
      average closing bid price for the Common Stock for the 20 consecutive
      trading days prior to the date of notice exceeds an amount equal to three
      times the Conversion Price then in effect, and the Common Stock is listed
      or quoted on the Nasdaq, the Nasdaq SmallCap System, American Stock
      Exchange or New York Stock Exchange; (ii) the average daily trading volume
      for the Common Stock for the 20 consecutive trading days prior to the date
      of the irrevocable notice shall be no less than 50,000 shares; (iii) the
      market price for

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      the Common Stock at the time of notice reflects a price-to-earnings ratio
      of no greater than 25 times fully diluted earnings per share, excluding
      any extraordinary gains; and (iv) the shares of Common Stock issuable upon
      conversion of this Debenture shall have been fully registered under
      applicable U.S. securities laws. The Company's right of redemption is
      subject to the Holder's prior right of conversion of the Debenture.

            (b)   Upon the Holder's notification to the Company in writing of
      its intent to sell, assign or transfer the Debenture pursuant to Section
      14 hereof, this Debenture is redeemable at the Borrower's option, in whole
      but not in part, at 101% of the Principal Amount, together with accrued
      and unpaid interest through the Redemption Date, by the Company for a
      period of up to 30 days after the date of notice.

            (c)   The Company may exercise its right to redeem this Debenture
      pursuant to Sections 5(a) and (b) prior to maturity by giving notice
      thereof to the Holder of this Debenture as such name appears on the books
      of the Borrower, which notice shall specify the terms of redemption
      (including the place at which the Holder may obtain payment), the total
      redemption payment and the Redemption Date.

      6.    CONVERSION RIGHT.

            (a)   The Holder of this Debenture shall have the right, at Holder's
      option, at any time, to convert all, or, in multiples of $100,000, any
      part of this Debenture into such number of fully paid and nonassessable
      shares of Common Stock as provided herein. The Holder of this Debenture
      may exercise the conversion right by giving written notice (the
      "Conversion Notice") to Borrower of the exercise of such right and stating
      the name or names in which the stock certificate or stock certificates for
      the shares of Common Stock are to be issued and the address to which such
      certificates shall be delivered. The Conversion Notice shall be
      accompanied by the Debenture. The number of shares of Common Stock that
      shall be issuable upon conversion of the Debenture shall equal the
      outstanding Principal Amount of the Debenture divided by the Conversion
      Price (as defined below) and in effect on the date the Conversion Notice
      is given; provided, however, that in the event that this Debenture shall
      have been partially redeemed, shares of Common Stock shall be issued pro
      rata, rounded to the nearest whole share. Conversion shall be deemed to
      have been effected on the date the Conversion Notice is received (the
      "Conversion Date"). In the case of any Debenture called for redemption,
      the conversion rights will expire at the close of business on the
      Redemption Date. Within 20 business days after receipt of the Conversion
      Notice, Borrower shall issue and deliver by hand against a signed receipt
      therefor or by United States registered mail, return receipt requested, to
      the address designated in the Conversion Notice, a stock certificate or
      stock certificates of Borrower representing the number of shares of Common
      Stock to which Holder is entitled and a check or cash in payment of all
      interest accrued and unpaid on the Debenture up to and including the
      Conversion Date. The conversion rights will be governed by the following
      provisions:

            (b)   CONVERSION PRICE. On the issue date hereof and until such time
      as an adjustment shall occur, the Conversion Price shall be $0.30 per
      share; provided, however,

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      that the Conversion Price shall be subject to adjustment at the times and
      in accordance with the provisions set forth below.

                  (i)      ADJUSTMENT FOR ISSUANCE OF SHARES AT LESS THAN THE
            CONVERSION PRICE. If and whenever any Additional Common Stock (as
            defined below) shall be issued by Borrower (the "Stock Issue Date")
            for a consideration per share less than the Conversion Price, then
            in each such case the initial Conversion Price shall be reduced to a
            new Conversion Price in an amount equal to the price per share for
            the Additional Common Stock then issued, if issued in connection
            with a sale of shares, or the value of the Additional Common Stock
            then issued, as determined in accordance with generally accepted
            accounting principles, if issued other than for cash, and the number
            of shares issuable to Holder upon conversion shall be
            proportionately increased; and, in the case of Additional Common
            Stock issued without consideration, the initial Conversion Price
            shall be reduced in amount and the number of shares issued upon
            conversion shall be increased in an amount so as to maintain for the
            Holder the right to convert the Debenture into shares equal in
            amount to the same percentage interest in the Common Stock of the
            Company as existed for the Holder immediately preceding the Stock
            Issue Date.

                  (ii)     SALE OF SHARES. In case of the issuance of Additional
            Common Stock for a consideration part or all of which shall be cash,
            the amount of the cash consideration therefor shall be deemed to be
            the gross amount of the cash paid to Borrower for such shares,
            before deducting any underwriting compensation or discount in the
            sale, underwriting or purchase thereof by underwriters or dealers or
            others performing similar services or for any expenses incurred in
            connection therewith. In case of the issuance of any shares of
            Additional Common Stock for a consideration part or all of which
            shall be other than cash, the amount of the consideration therefor,
            other than cash, shall be deemed to be the then fair market value of
            the property received.

                  (iii)    STOCK SPLITS, SUBDIVISIONS OR COMBINATIONS. In the
            event of a stock split or subdivision of shares of Common Stock into
            a greater number of shares, the Conversion Price shall be
            proportionately decreased and the number of shares of Common Stock
            which shall be issued upon such conversion shall be proportionally
            increased, and in the event of a combination of shares of Common
            Stock into a smaller number of shares, the Conversion Price shall be
            proportionately increased and the number of shares of Common Stock
            which shall be issued upon such conversion shall be proportionally
            decreased, such increase or decrease, as the case may be, becoming
            effective at the record date.

                  (iv)     STOCK DIVIDENDS. Shares of Common Stock issued as a
            dividend or other distribution on any class of capital stock of
            Borrower shall be deemed to have been issued without consideration.

                  (v)      EXCEPTIONS. The term "Additional Common Stock" herein
            shall mean all shares of Common Stock or securities convertible or
            exercisable

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            into shares of Common Stock hereafter issued by Borrower (including
            Common Stock held in the treasury of Borrower), except (A) Common
            Stock issued upon the conversion of any of the Debentures; (B)
            Common Stock issuable upon exercise of presently outstanding
            warrants or employee or director stock options; or (C) Common Stock
            issuable upon exercise of stock options to be granted in the future
            to employees or directors pursuant to its existing stock option
            plans.

            (c)   ADJUSTMENT FOR MERGERS AND CONSOLIDATIONS. In the event of any
      consolidation or merger of the Company with or into, or the sale of all or
      substantially all of the properties and assets of the Company, to any
      person, and in connection therewith, consideration is payable to holders
      of Common Stock in cash, securities or other property, then as a condition
      of such consolidation, merger or sale, lawful provision shall be made, and
      duly executed documents evidencing the same shall be delivered to the
      Holder, so that the Holder shall have the right at any time prior to the
      maturity of this Debenture to purchase, at a total price equal to the
      Conversion Price immediately prior to such event, the kind and amount of
      cash, securities or other property receivable in connection with such
      consolidation, merger or sale, by a holder of the same number of shares of
      Common Stock as were convertible by the Holder immediately prior to such
      consolidation, merger or sale. In any such case, appropriate provisions
      shall be made with respect to the rights and interest of the Holder so
      that the provisions hereof shall thereafter be applicable with respect to
      any cash, securities or property deliverable upon exercise hereof.
      Notwithstanding the foregoing, (i) if the Company merges or consolidates
      with, or sells all or substantially all of its property and assets to, any
      other person, and consideration is payable to holders of Common Stock in
      exchange for their Common Stock in connection with such merger,
      consolidation or sale which consists solely of cash, or (ii) in the event
      of the dissolution, liquidation or winding up of the Company, then the
      Holder shall be entitled to receive distributions on the date of such
      event on the same basis with holders of Common Stock as if this Debenture
      had been converted immediately prior to such event, less the Conversion
      Price. Upon receipt of such payment, if any, the rights of the Holder
      shall terminate and cease and this Debenture shall expire. In case of any
      such merger, consolidation or sale of assets, the surviving or acquiring
      person and, in the event of any dissolution, liquidation or winding up of
      the Company, the Company shall promptly, after receipt of this surrendered
      Debenture, make payment by delivering a check in such amount as is
      appropriate (or, in the case of consideration other than cash, such other
      consideration as is appropriate) to such person as it may be directed in
      writing by the Holder surrendering this Debenture.

            (d)   DISTRIBUTIONS. In the event of distribution to all Common
      Stock holders of any securities, cash or properties or assets or other
      rights to purchase securities or assets, then, after such event, this
      debenture will also be convertible into the kind and amount of securities,
      cash and other property which the Holder would have been entitled to
      receive if the Holder owned the Common Stock issuable upon conversion of
      the Debenture immediately prior to the occurrence of such event.

            (e)   CAPITAL REORGANIZATION AND RECLASSIFICATION. In case of any
      capital reorganization or reclassification of the Common Stock of Borrower
      (other than a change in par value or as a result of a stock dividend,
      subdivision, split up or combination of

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      shares), this Debenture shall be convertible into the kind and number of
      shares of stock or other securities or property of Borrower to which the
      Holder of the Debenture would have been entitled to receive if the Holder
      owned the Common Stock issuable upon conversion of the Debenture
      immediately prior to the occurrence of such event. The provisions of the
      immediately foregoing sentence shall similarly apply to successive
      reorganizations, reclassifications, consolidations, exchanges, leases,
      transfers or other dispositions or other share exchanges.

            (f)   NOTICE. In the event Borrower shall propose to take any action
      which shall result in an adjustment in the Conversion Price, Borrower
      shall give notice to the Holder of this Debenture, which notice shall
      specify the record date, if any, with respect to such action and the date
      on which such action is to take place. Such notice shall be given on or
      before the earlier of 10 days before the record date or the date which
      such action shall be taken. Such notice shall also set forth all facts (to
      the extent known) material to the effect of such action on the Conversion
      Price and the number, kind or class of shares or other securities or
      property which shall be deliverable or purchasable upon the occurrence of
      such action or deliverable upon conversion of this Debenture.

            (g)   CERTIFICATE. Following completion of an event which results in
      an adjustment to the Conversion Price, Borrower shall furnish to the
      Holder of this Debenture a statement, signed by the Chief Financial
      Officer and the Secretary of the Borrower, of the facts creating such
      adjustment and specifying the resultant adjusted Conversion Price then in
      effect, which statement shall constitute an amendment to this Debenture.

            (h)   AUTHORIZATION OF ADJUSTMENT. In the event of an adjustment to
      the Conversion Price due to a sale of securities by the Borrower below the
      Conversion Price which would result in the holders of all debentures
      evidencing the Loan having the right to acquire more than 20% of the then
      outstanding shares of Common Stock, on a fully-diluted basis, the Borrower
      agrees to hold a vote of the shareholders within 150 days to authorize
      such an adjustment; provided such approval is required by Nasdaq. In the
      event the shareholders reject the authorization, the Holder shall have the
      right to cause the Company to redeem the Debenture in accordance with the
      provisions of Section 4.

      7.    [Intentionally Omitted.]

      8.    RESERVATION OF SHARES. Borrower warrants and agrees that it shall at
all times reserve and keep available, free from preemptive rights, sufficient
authorized and unissued shares of Common Stock or treasury shares of Common
Stock necessary to effect conversion of this Debenture.

      9.    TAXES. The Company shall pay any documentary or other transactional
taxes attributable to the issuance or delivery of this Debenture or the shares
of Common Stock issued upon conversion by the Holder (excluding any federal,
state or local income taxes and any franchise taxes or taxes imposed upon the
Holder by the jurisdiction, or any political subdivision thereof, under which
such Holder is organized or is qualified to do business).

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      10.   DEFAULT.

            (a)   EVENT OF DEFAULT. An "Event of Default" shall exist if an
      "Event of Default" (as defined in the Loan Agreement) shall occur and be
      continuing.

            (b)   REMEDIES UPON EVENT OF DEFAULT. If an Event of Default shall
      have occurred and be continuing, then the Holder may exercise any one or
      more of the rights and remedies provided in the Loan Documents, as the
      Holder, in its sole discretion, may deem necessary or appropriate.

            (c)   REMEDIES NONEXCLUSIVE. Each right, power or remedy of the
      Holder hereof upon the occurrence of any Event of Default as provided for
      in this Debenture or now or hereafter existing at law or in equity or by
      statute shall be cumulative and concurrent and shall be in addition to
      every other right, power or remedy provided for in this Debenture or now
      or hereafter existing at law or in equity or by statute, and the exercise
      or beginning of the exercise by the Holder or transferee hereof of any one
      or more of such rights, powers or remedies shall not preclude the
      simultaneous or later exercise by the Holder of any or all such other
      rights, powers or remedies.

            (d)   EXPENSES. Upon the occurrence of a Default or an Event of
      Default, which occurrence is not cured within the notice provisions, if
      any provided therefore, Borrower agrees to pay and shall pay all
      reasonable costs and expenses (including attorneys' fees and expenses)
      incurred by the Holder in connection with the preservation and enforcement
      of Holder's rights under the Loan Agreement, the Debenture, or any other
      Loan Document.

      11.   FAILURE TO ACT AND WAIVER. No failure or delay by the Holder hereof
to require the performance of any term or terms of this Debenture or not to
exercise any right or any remedy shall constitute a waiver of any such term or
of any right or of any default, nor shall such delay or failure preclude the
Holder hereof from exercising any such right, power or remedy at any later time
or times. By accepting payment after the due date of any amount payable under
this Debenture, the Holder hereof shall not be deemed to waive the right either
to require payment when due of all other amounts payable, or to later declare a
default for failure to effect such payment of any such other amount. The failure
of the Holder of this Debenture to give notice of any failure or breach of the
Borrower under this Debenture shall not constitute a waiver of any right or
remedy in respect of such continuing failure or breach or any subsequent failure
or breach.

      12.   CONSENT TO JURISDICTION. The Company hereby agrees and consents that
any action, suit or proceeding arising out of this Debenture may be brought in
any state or federal court in the State of Texas, including the United States
District Court for the Northern District of Texas, or in any other court having
jurisdiction over the subject matter, all at the sole election of the Holder
hereof, and by the issuance and execution of this Debenture, the Borrower
irrevocably consents to the jurisdiction of each such court. The Company hereby
irrevocably appoints CT Corporation System, Dallas, Texas, as agent for the
Borrower to accept service of process for and on behalf of the Borrower in any
action, suit or proceeding arising out of this Debenture. Except for default in
payment of interest or principal when and as they become due, and except

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as otherwise specifically set forth herein or otherwise agreed to in writing by
the parties, any action, dispute, claim or controversy (all such herein called
"Dispute") between or among the parties as to the facts or the interpretation of
the Debenture shall be resolved by arbitration as set forth in the Loan
Agreement.

      13.   HOLDER'S RIGHT TO REQUEST MULTIPLE DEBENTURES. The Holder shall,
upon written request and presentation of the Debenture, have the right, at any
interest payment date, to request division of this Debenture into two or more
instruments, each of such to be in such amounts as shall be requested; provided
however, that no Debenture shall be issued in denominations of face amount less
than $100,000.

      14.   TRANSFER. Subject to Section 12.07 of the Loan Agreement, this
Debenture may be transferred on the books of the Borrower by the registered
Holder hereof, or by Holder's attorney duly authorized in writing, in multiples
of $100,000 only upon (i) delivery to the Borrower of a duly executed assignment
of the Debenture, or part thereof, to the proposed new Holder, as well as an
executed investor representation letter signed by the proposed transferee and
such other transfer documents and instruments as the Company may reasonably
request, along with a current notation of the amount of payments received and
net Principal Amount yet unfunded, and presentment of such Debenture to the
Borrower for issue of a replacement Debenture, or Debentures, in the name of the
new Holder, (ii) the designation by the new Holder of the Lender's agent for
notice, such agent to be the sole party to whom Borrower shall be required to
provide notice when notice to Holder is required hereunder and who shall be the
sole party authorized to represent Lender in regard to modification or waivers
under the Debenture, the Loan Agreement, or other Loan Documents; and any
action, consent or waiver (other than a compromise of principal and interest)
when given or taken by Lender's agent for notice, shall be deemed to be the
action of the holders of a majority in amount of the Principal Amount of the
Debenture, as such holders are recorded on the books of the Borrower, and (iii)
in compliance with the legend to read as follows:

      "This Debenture has not been registered under the Securities Act of 1933,
      as amended ("Act"), or applicable state securities laws ("State Acts"),
      and shall not be offered, sold, pledged, hypothecated, or otherwise
      transferred, unless such transfer is made in compliance with the Act and
      the State Acts."

      Holder shall notify the Company in writing of its intent to sell, assign
or transfer the Debenture prior to any such sale, assignment or transfer.

      The Company shall be entitled to treat any holder of record of the
Debenture as the Holder in fact thereof and of the Debenture and shall not be
bound to recognize any equitable or other claim to or interest in this Debenture
in the name of any other person, whether or not it shall have express or other
notice thereof, except as otherwise provided by applicable law.

      15.   NOTICES. All notices and communications under this Debenture shall
be in writing and shall be either delivered in person or by overnight service,
such as FedEx, and accompanied by a signed receipt therefor; or mailed
first-class United States certified mail, return receipt requested, postage
prepaid, and addressed as follows: (i) if to the Borrower at its address for
notice as stated in the Loan Agreement; and (ii) if to the Holder of this
Debenture, to the address

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(a) of such Holder as it appears on the books of the Borrower or (b) in the case
of a partial assignment to one or more Holders, to the Lender's agent for
notice, as the case may be. Any notice of communication shall be deemed given
and received as of the date of such delivery if delivered; or if mailed, then
three days after the date of mailing.

      16.   MAXIMUM INTEREST RATE.

            (a)   Regardless of any provision contained in this Debenture,
      Lender shall never be entitled to receive, collect or apply as interest on
      the Debenture any amount in excess of interest calculated at the Maximum
      Rate (as defined below), and, in the event that Lender ever receives,
      collects or applies as interest any such excess, the amount which would be
      excessive interest shall be deemed to be a partial prepayment of principal
      and treated hereunder as such; and, if the principal amount of the
      Debenture is paid in full, any remaining excess shall forthwith be paid to
      Borrower. In determining whether or not the interest paid or payable under
      any specific contingency exceeds interest calculated at the Maximum Rate,
      Borrower and Lender shall, to the maximum extent permitted under
      applicable law, (i) characterize any non principal payment as an expense,
      fee or premium rather than as interest, (ii) exclude voluntary prepayments
      and the effects thereof, and (iii) amortize, pro rate, allocate and
      spread, in equal parts, the total amount of interest throughout the entire
      contemplated term of the Debenture; provided that, if the Debenture is
      paid and performed in full prior to the end of the full contemplated term
      thereof, and if the interest received for the actual period of existence
      thereof exceeds interest calculated at the Maximum Rate, Lender shall
      refund to Borrower the amount of such excess or credit the amount of such
      excess against the principal amount of the Debenture and, in such event,
      Lender shall not be subject to any penalties provided by any laws for
      contracting for, charging, taking, reserving or receiving interest in
      excess of interest calculated at the Maximum Rate.

            (b)   "Maximum Rate" shall mean, on any day, the highest nonusurious
      rate of interest (if any) permitted by applicable law on such day that, at
      any time or from time to time, may be contracted for, taken, reserved,
      charged or received on the Indebtedness evidenced by the Debenture under
      the laws which are presently in effect of the United States of America or
      by the laws of any other jurisdiction which are or may be applicable to
      the Holders of the Debenture and such Indebtedness or, to the extent
      permitted by law, under such applicable laws of the United States of
      America or by the laws of any other jurisdiction which are or may be
      applicable to the Holder of the Debenture and which may hereafter be in
      effect and which allow a higher maximum nonusurious interest rate than
      applicable laws now allow.

      17.   LOAN AGREEMENT, GUARANTY AND SECURITY AND PLEDGE AGREEMENTS. This
Debenture is issued pursuant to the Loan Agreement dated June 28, 2001 among the
Company and the other parties thereto, and the Holder is entitled to all the
rights and benefits thereunder. Both Borrower and the Holder have participated
in the negotiation and preparation of the Convertible Loan Agreement and of this
Debenture. Borrower agrees that a copy of the Loan Agreement with all
amendments, additions and substitutions therefor shall be available to the
Holder at the offices of Borrower. The indebtedness evidenced by this Debenture
is secured pursuant to the Security and Pledge Agreements dated June 28, 2001
among the Company, its subsidiaries and the Holder,

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and the Holder is entitled to all rights and benefits of a secured party
thereunder. The payment and performance of this Debenture is guaranteed by the
Company's subsidiaries pursuant to their Guaranty dated as of June 28, 2001 and
the Acknowledgment, Agreement and Reaffirmation of Guarantors dated as of even
date herewith.

      18.   DEFINED TERMS. Capitalized terms used but not defined herein shall
have the meaning given them in the Loan Agreement.

      19.   GOVERNING LAW. This Debenture shall be governed by and construed and
enforced in accordance with the substantive laws of the State of Texas, without
regard to the conflicts of laws provisions thereof, and the applicable laws of
the United States. Venue and jurisdiction shall lie in the federal or state
courts of Dallas County, Texas.

                            [SIGNATURE PAGE FOLLOWS.]

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      IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
issued, executed and delivered on the date and year above stated.

                                       COVER-ALL TECHNOLOGIES INC.

                                       By:
                                          --------------------------------------
                                          John W. Roblin, Chairman and CEO

                                       11<PAGE>

            ACKNOWLEDGMENT, AGREEMENT AND REAFFIRMATION OF GUARANTORS

      WHEREAS, the undersigned are parties to that certain Subsidiary Guaranty,
dated as of June 28, 2001 (the "Subsidiary Guaranty"), in favor of RENAISSANCE
US GROWTH & INCOME TRUST PLC and BFSUS SPECIAL OPPORTUNITIES TRUST PLC
(collectively, the "Holders") pursuant to the 8.00% Convertible Debentures dated
as of June 28, 2001 (as amended, supplemented or otherwise modified from time to
time, the "Debentures"), from COVER-ALL TECHNOLOGIES INC., a Delaware
corporation (the "Borrower") in favor of Holders; and

      WHEREAS, the Borrower and Holders are parties to that certain Convertible
Loan Agreement, dated as of June 28, 2001 (the "Loan Agreement"), pursuant to
which the Holders purchased 8.00% Convertible Debentures for an aggregate
principal amount of One Million Four Hundred Thousand Dollars ($1,400,000); and

      WHEREAS, on even date herewith the Borrower and Holders have entered into
the Second Amendment to the Loan Agreement to provide for the issuance and
purchase of additional 8.00% Convertible Debentures from the Borrower for an
aggregate principal amount of Seven Hundred Thousand Dollars ($700,000) (the
"Additional Debentures").

      NOW, THEREFORE, in consideration of the promises and to induce the Holder
to accept delivery of the Additional Debentures, the undersigned acknowledges
and agrees that the Additional Debentures shall be a part of its Obligations
under the Subsidiary Guaranty. The undersigned hereby acknowledges and affirms
its Obligations under the Subsidiary Guaranty, Debentures, the other Loan
Documents and any amendments thereto. The undersigned reaffirms that the
Subsidiary Guaranty is and shall remain in full force and effect in accordance
with the terms thereof. All terms used but not defined herein shall have the
meaning given them in that certain Subsidiary Guaranty.

      In witness whereof, the undersigned has executed this agreement as of
August 21, 2002.

                                       COVER-ALL SYSTEMS, INC.

                                       By: /s/ John Roblin
                                          ----------------------------------
                                          Name: John Roblin
                                          Title: Chairman of the Board of
                                                 Directors, President and Chief
                                                 Executive Officer

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