Document:

Exhibit 10.21

REGISTRATION RIGHTS AGREEMENT

          REGISTRATION
RIGHTS AGREEMENT, dated as of August 20, 2007, between INCENTRA SOLUTIONS,
INC., a Nevada corporation (the “Company”), and Pagemill Partners, LLC
(“Pagemill”).

W I T N E S S E T H:

          WHEREAS, pursuant to the terms of the
Engagement of Pagemill Partners, LLC dated as of July 19, 2006 (the “Fee
Agreement”) with the Company, the Company has agreed to issue to Pagemill a
warrant to purchase such number of shares of Common Stock, $.001 par value, of
the Company (the “Warrant”) as determined pursuant to the Fee Agreement; and

          WHEREAS, pursuant to the terms of the Fee
Agreement, the Company has agreed to provide certain registration rights
pursuant to the terms of this Agreement; 

          NOW, THEREFORE, in consideration of the
mutual covenants and obligations hereinafter set forth, the parties hereto,
intending to be legally bound, hereby agree as follows:

          1.
Definitions. For purposes of this Agreement, capitalized terms used herein
shall have the meanings set forth in the preambles hereto and in this Section
1.

                    1.1
“Commission” shall mean the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act.

                    1.2
“Common Stock” shall mean the common stock, par value $.001 per share,
of the Company or, in the case of a conversion, reclassification or exchange
of such shares of such Common Stock, shares of the stock issued or issuable in
respect of such shares of Common Stock, and all provisions of this Agreement
shall be applied appropriately thereto and to any stock resulting therefrom.

                    1.3
“Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended, or any similar federal statute enacted hereafter, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

                    1.4
“Existing Rights Agreements” shall mean (i) the Registration Rights
Agreement dated as of October 10, 2000 between the Company and Equity Pier LLC
(ii) the warrant agreement between the Company and Equity Pier LLC dated March
28, 2001, (iii) the Form S-1 Registration Statement filed on or about May 4,
2007, (iv) the Registration Rights Agreement between the Company and former
ManagedStorage International, Inc. shareholders dated August 18, 2004, (v) the
Registration Rights Agreement dated as of March 30, 2005 between the Company
and Barry R. Andersen and Gary L. Henderson, (vi) the Amended and

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Restated
Registration Rights Agreement dated as of January 6, 2006, between the Company
and Laurus Master Fund Ltd., (vii) the Registration Rights Agreement dated as
of March 31, 2006 by and between the Company and Laurus Master Fund Ltd. (viii)
the Registration Rights Agreement dated as of April 13, 2006 between the
Company and Joseph J. Graziano, (ix) the Registration Rights Agreement dated as
of April 13, 2006 between the Company and Transitional Management Consultants,
Inc., (x) the Registration Rights Agreement dated June 26, 2006 between the
Company, RAB American Opportunities Fund Limited, RAB North American Dynamic
Fund and others, (xi) the Registration Rights Agreement dated August 24, 2006
between the Company, Craig Armstrong and Amherst Holdings, LLC, (xii) the
Registration Rights Agreement dated as of July 31, 2007 between the Company and
Calliope Capital Corporation, and (xiii) the Registration Rights Agreements
dated as of August 14, 2007 between the Company and Paul Chopra, Dave Condensa,
Bert Condensa, Terri Marine, David Auerweck, and Kevin Hawkins.

                    1.5
“Holder” shall mean any holder of
Registrable Securities; provided, however, that any Person who acquires any of
the Registrable Securities in a distribution pursuant to a registration
statement filed by the Company under the Securities Act or pursuant to a public
sale under Rule 144 under the Securities Act or any similar or successor rule
shall not be considered a Holder.

                    1.6
“Initiating Holders” shall mean Holders representing (on a fully
diluted basis) at least sixty-six and 2/3 percent (66 2/3%) of the total number
of Registrable Securities. 

                    1.7
“Person” shall mean any individual, firm, corporation, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, government (or an agency or political subdivision thereof) or other
entity of any kind.

                    1.8
“Register”, “registered” and “registration” shall refer to
a registration effected by preparing and filing a registration statement with
the Commission in compliance with the Securities Act and applicable rules and
regulations thereunder, and the declaration or ordering of the effectiveness of
such registration statement by the Commission.

                    1.9
“Registrable Securities” shall mean the shares of Common Stock issuable
upon exercise of the Warrant issued to Pagemill; provided, however,
that such shares of Common Stock shall only be treated as Registrable
Securities hereunder if and so long as they have not been sold in a registered
public offering or have not been sold to the public pursuant to Rule 144 under
the Securities Act or any similar or successor rule.

                    1.10
“Registration Expenses” shall mean all expenses incurred by the Company
in compliance herewith, including, without limitation, all registration and
filing fees, printing expenses, fees and disbursements of counsel for the
Company, blue sky fees and expenses, the reasonable fees and expenses (subject
to documentation thereof) of one counsel for all Holders and Other Stockholders
that offer securities being sold pursuant to the Existing Rights Agreements,
and the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the
Company, which shall be paid in any event by the Company).

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                    1.11
“Securities Act” shall mean the Securities Act of 1933, as amended, or
any similar federal statute enacted hereafter, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect from time to
time.

                    1.12
“Selling Expenses” shall mean all underwriting discounts and
commissions applicable to the sale of Registrable Securities.

          2.
Requested Registration.

                    2.1
Request for Registration. At any time after August 20, 2009 (such date
being hereinafter referred to as the “Demand Date”), if the Company shall receive
from Initiating Holders a written request that the Company effect any registration
with respect to Registrable Securities the Company will:

	
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          (a)
 promptly give written notice of the proposed registration to all other
 Holders; and

	
 

	
 

	
 

	
 

	
          (b)
 as soon as practicable, use all reasonable efforts to effect such
 registration (including, without limitation, the execution of an undertaking
 to file post- effective amendments, appropriate qualification under the blue
 sky or other state securities laws requested by Initiating Holders and
 appropriate compliance with applicable regulations issued under the
 Securities Act) as may be so requested and as would permit or facilitate the
 sale and distribution of all or such portion of such Registrable Securities
 as are specified in such request, together with all or such portion of the
 Registrable Securities of any Holder or Holders joining in such request as
 are specified in a written request given within thirty (30) days after
 receipt of such written notice from the Company; provided, that the Company
 shall not be obligated to effect, or to take any action to effect, any such
 registration pursuant to this Section 2:

	
 

	
 

	
 

	
 

	
 

	
          (i)
 in any particular jurisdiction in which the Company would be required to
 execute a general consent to service of process in effecting such registration,
 qualification or compliance, unless the Company is already subject to
 service in such jurisdiction and except as may be required by the Securities
 Act or applicable rules or regulations thereunder;

	
 

	
 

	
 

	
 

	
 

	
          (ii)
 less than ninety (90) calendar days after the effective date of any
 registration declared or ordered effective other than a registration on Form
 S-3 or Form S-8; 

	
 

	
 

	
 

	
 

	
 

	
          (iii) if,
 while a registration request is pending pursuant to this Section 2, the
 Company determines, in the good faith judgment of the Board of Directors of
 the Company, with the advice of counsel, that the filing of a registration
 statement would require the disclosure of non-

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public
 material information the disclosure of which would have a material adverse
 effect on the Company or would otherwise materially adversely affect a
 financing, acquisition, disposition, merger or other significant transaction,
 the Company shall deliver a certificate to such effect signed by its
 President to the proposed selling Holders and the Company shall not be
 required to effect a registration pursuant to this Section 2 until the
 earlier of (A) three (3) days after the date upon which such material
 information is disclosed to the public or ceases to be material or (B) 90
 days after the Company makes such good faith determination; provided,
 however, that the Company shall not utilize this right more than once in any
 twelve month period; or

	
 

	
 

	
 

	
 

	
 

	
          (iv) except
 as set forth in Section 2.5, after the second such registration pursuant to
 this Section 2.1 has been declared or ordered effective. 

          Subject
to the foregoing clauses (i), (ii), (iii) and (iv), the Company shall file a
registration statement covering the Registrable Securities so requested to be
registered as soon as practicable after receipt of the request or requests of
the Initiating Holders.

                    2.2
Additional Shares to be Included. The registration statement filed
pursuant to the request of the Initiating Holders may, subject to the
provisions of Sections 2.4 and 3.3 below, include (a) other securities of the
Company (the “Additional Shares”) which are held by (i) officers or directors
of the Company who, by virtue of agreements with the Company, are entitled to
include their securities in any such registration or (ii) other persons who,
by virtue of agreements with the Company, including the Existing Rights
Agreements, are entitled to include their securities in any such registration
(the “Other Stockholders”), and (b) securities of the Company being sold for
the account of the Company.

                    2.3
Underwriting. 

                    (a)
If the Initiating Holders intend to distribute the Registrable Securities
covered by their request by means of an underwriting, they shall so advise the
Company as a part of their request made pursuant to this Section 2 and the
Company shall include such information in the written notice to other Holders
referred to in Section 2.1 above. The right of any Holder to registration
pursuant to this Section 2 shall be conditioned upon such Holder’s
participation in such underwriting and the inclusion of such Holder’s
Registrable Securities in the underwriting to the extent provided herein and
subject to the limitations provided herein. A Holder may elect to include in
such underwriting all or a part of the Registrable Securities he holds.

                    (b)
The Company shall (together with all Holders, officers, directors and Other
Stockholders proposing to distribute their securities through such
underwriting) negotiate and enter into an underwriting agreement in customary
form with the representative of the underwriter or underwriters selected for
such underwriting by a majority in interest of the Initiating Holders, which
underwriter(s) shall be reasonably acceptable to the Company; provided that no
Holder shall be required to make any representations or warranties to or
agreements (other than a

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lock-up
agreement pursuant to Section 12) with the Company or the underwriters, other
than representations, warranties or agreements regarding the Holder, its
Registrable Securities and its intended method of distribution and any other
representation required by law. 

                    2.4
Limitations on Shares to be Included. Notwithstanding any other
provision of this Section 2, if the representative of the underwriters of a
firm commitment underwriting advises the Initiating Holders in writing that
marketing factors require a limitation on the number of shares to be
underwritten, the number of shares of securities that are entitled to be
included in the registration and underwriting shall be allocated as follows:
first, among the Other Stockholders that offer securities being sold pursuant
to the Existing Rights Agreements, in proportion, as nearly as practicable, to
the respective amounts of Additional Shares which they had requested to be
included in such registration pursuant to the Existing Rights Agreements;
second, among the Holders, in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities which they had requested to be
included in such registration; third, to the Company for securities being sold
for its own account; and thereafter, the number of shares that may be included
in the registration statement and underwriting shall be allocated among all
officers or directors or remaining Other Stockholders, in each case in
proportion, as nearly as practicable, to the respective amounts of Additional
Shares which they had requested to be included in such registration at the time
of filing the registration statement. If the Company or any Holder, officer,
director or Other Stockholder who has requested inclusion in such registration
as provided above disapproves of the terms of any such underwriting, such
Person may elect to withdraw such Person’s Registrable Securities or Additional
Shares therefrom by written notice to the Company and the underwriter and the
Initiating Holders. Any Registrable Securities or other securities excluded
shall also be withdrawn from such registration. No Registrable Securities or
Additional Shares excluded from such registration by reason of such
underwriters’ marketing limitation shall be included in such registration. To
facilitate the allocation of shares in accordance with this Section 2.4, the
Company or underwriter or underwriters selected as provided above may round the
number of Registrable Securities of any Holder which may be included in such
registration to the nearest 100 shares.

                    2.5
Additional Demand Registration. If with respect to the last registration
permitted to be exercised by the Holders of Registrable Securities under
Section 2.1, the Holders are unable to register all of their Registrable
Securities because of the operation of Section 2.4 hereof, such Holders shall
be entitled to require the Company to effect one additional registration to
afford the Holders an opportunity to register all such Registrable Securities.
Such additional registration shall again be subject to the provisions of this
Section 2.

          3.
Company Registration.

                    3.1
At any time after August 20, 2009, if the Company shall determine to register
under the Securities Act any of its equity securities or securities convertible
into equity securities either for its own account or the account of a security
holder or holders exercising any demand registration rights, other than a
registration relating solely to employee benefit plans, or a registration
relating solely to a Commission Rule 145 transaction, or a registration on
Form S-4 or S-8, or the Form S-1 filed on or about May 8, 2007, (or any
successor forms thereto), the Company will:

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          (a)
 promptly give to each Holder written notice thereof (which shall include a
 list of the jurisdictions in which the Company intends to attempt to qualify
 such securities under the applicable blue sky or other state securities
 laws); and

	
 

	
 

	
 

	
          (b)
 include in such registration (and, subject to Section 2.1(b)(i), any related
 qualification under blue sky laws or other compliance), and in any
 underwriting involved therein, all the Registrable Securities specified in a
 written request or request, made by any Holder within thirty (30) days after
 receipt of the written notice from the Company described in clause (a)
 above, except as set forth in Section 3.3 below. Such written request may
 specify all or a part of a Holder’s Registrable Securities.

                    3.2
Underwriting. If the registration of which the Company gives notice is
for a registered public offering involving an underwriting, the Company shall
so advise the Holders as a part of the written notice given pursuant to Section
3.1(a). The right of any Holder to registration pursuant to this Section 3
shall be conditioned upon such Holder’s participation in such underwriting and
the inclusion of such Holder’s Registrable Securities in the underwriting to
the extent provided herein. All Holders proposing to distribute their
securities through such underwriting shall (together with the Company and any
officers, directors or Other Stockholders distributing their securities through
such underwriting) enter into an underwriting agreement in customary form with
the representative of the underwriter or underwriters selected by the Company;
provided that no Holder shall be required to make any representations or
warranties to or agreements (other than a lock-up agreement pursuant to Section
12) with the Company or the underwriters, other than representations,
warranties or agreements regarding the Holder, its Registrable Securities and
its intended method of distribution and any other representation required by
law.

                    3.3
Limitations on Shares to be Included. Notwithstanding any other
provision of this Section 3, if the representative of the underwriters of a
firm commitment underwriting advises the Company in writing that marketing
factors require a limitation or elimination on the number of shares to be
underwritten, the representative may (subject to the allocation priority set
forth below) limit the number of or eliminate the Registrable Securities to be
included in the registration and underwriting. The Company shall so advise
all holders of securities requesting registration, and the number of shares
of securities that are entitled to be included in the registration and underwriting
shall be allocated as follows: first, if such underwritten offering shall have
been initiated by the Company for the sale of securities for its own account,
to the Company for securities being sold for its own account; second, among the
Other Stockholders that offer securities being sold pursuant to the Existing
Rights Agreements, in proportion, as nearly as practicable, to the respective
amounts of Additional Shares which they had requested to be included in such
registration pursuant to the Existing Rights Agreements; third, among the
Holders, in proportion, as nearly as practicable, to the respective amounts of
Registrable Securities which they had requested to be included in such
registration; fourth, if such underwritten offering shall not have been
initiated by the Company, to the Company for securities being sold for its own
account; and thereafter, the number of shares that may be

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included in
the registration statement and underwriting shall be allocated among all
officers or directors or remaining Other Stockholders, in each case in
proportion, as nearly as practicable, to the respective amounts of Additional
Shares which they had requested to be included in such registration at the time
of filing the registration statement. If any Holder of Registrable Securities
or any officer, director or Other Stockholder disapproves of the terms of any
such underwriting, he may elect to withdraw therefrom by written notice to the
Company and the underwriter. Any Registrable Securities or other securities
excluded or withdrawn from such underwriting shall also be withdrawn from such
registration. The Company shall have the right to terminate or withdraw any
registration initiated by it under this Section 3 prior to the effectiveness of
such registration whether or not any Holder has elected to include securities
in such registration.

          4.
 Expenses of Registration. All
Registration Expenses incurred in connection with any registration, qualification
or compliance pursuant to Sections 2, 3 or 4 of this Agreement shall be borne
by the Company, except that Selling Expenses shall be borne pro rata by each
Holder in accordance with the number of shares sold.

          5.
Registration Procedures. 

                    5.1
In the case of each registration effected by the Company pursuant to this
Agreement, the Company will keep each Holder advised in writing as to the
initiation of each registration and as to the completion thereof and will, at
its expense:

	
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          (a)
 use all reasonable efforts to keep such registration effective for a period
 of 180 days or until the Holder or Holders have completed the distribution
 described in the registration statement relating thereto, whichever first
 occurs; provided, however, that the Company will keep such registration
 effective for longer than 180 days if the costs and expenses associated with
 such extended registration are borne by the selling Holders;

	
 

	
 

	
 

	
          (b)
 Prepare and file with the Commission such amendments and supplements to such
 registration statement and the prospectus used in connection with such
 registration statement as may be necessary to comply with the provisions of
 the Securities Act with respect to the disposition of all securities covered
 by such registration statement;

	
 

	
 

	
 

	
          (c)
 Furnish such number of prospectuses and other documents incident thereto, including
 any amendment of or supplement to the prospectus, as a Holder from time to
 time may reasonably request;

	
 

	
 

	
 

	
          (d)
 Notify each seller of Registrable Securities covered by such registration
 statement at any time when a prospectus relating thereto is required to be
 delivered under the Securities Act of the happening of any event as a result
 of which the prospectus included in such registration statement, as then in
 effect, includes an untrue statement of a material fact or omits to state a material
 fact required to be stated therein or necessary to make the statements
 therein not misleading or incomplete in the light of the circumstances then
 existing, and at

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the request of
 any such seller, prepare and furnish to such seller a reasonable number of
 copies of a supplement to or an amendment of such prospectus as may be
 necessary so that, as thereafter delivered to the purchasers of such shares,
 such prospectus shall not include an untrue statement of a material fact or
 omit to state a material fact required to be stated therein or necessary to
 make the statements therein not misleading or incomplete in the light of the
 circumstances then existing;

	
 

	
 

	
 

	
          (e)
 List all such Registrable Securities registered in such registration on each
 securities exchange or automated quotation system on which the Common Stock
 of the Company is then listed;

	
 

	
 

	
 

	
          (f)
 Provide a transfer agent and registrar for all Registrable Securities and a
 CUSIP number for all such Registrable Securities, in each case not later than
 the effective date of such registration;

	
 

	
 

	
 

	
          (g)
 Make available for inspection by any seller of Registrable Securities, any
 underwriter participating in any disposition pursuant to such registration
 statement, and any attorney or accountant retained by any such seller or
 underwriter, all financial and other records, pertinent corporate documents
 and properties of the Company, and cause the Company’s officers and directors
 to supply all information reasonably requested by any such seller,
 underwriter, attorney or accountant in connection with such registration
 statement;

	
 

	
 

	
 

	
          (h)
 Furnish to each selling Holder upon request a signed counterpart, addressed
 to each such selling Holder, of

	
 

	
 

	
 

	
 

	
          (i)
 an opinion of counsel for the Company, dated the effective date of the
 registration statement in form reasonably acceptable to the Company and such
 counsel, and

	
 

	
 

	
 

	
 

	
 

	
          (ii)
 “comfort” letters signed by the Company’s independent public accountants who
 have examined and reported on the Company’s financial statements included in
 the registration statement, to the extent permitted by the standards of the
 American Institute of Certified Public Accountants, covering such matters as
 are customarily covered in opinions of issuer’s counsel and accountants’
 “comfort” letters delivered to underwriters in underwritten public offerings
 of securities;

	
 

	
 

	
 

	
 

	
          (i)
 Furnish to each selling Holder upon request a copy of all documents filed
 with and all correspondence from or to the Commission in connection with any
 such offering; and

	
 

	
 

	
 

	
 

	
          (j)
 Make available to its security holders, as soon as reasonably practicable, an
 earnings statement covering the period of at least twelve months, but not
 more than eighteen months, beginning with the first month after the 

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effective
 date of the Registration Statement, which earnings statement shall satisfy
 the provisions of Section 11(a) of the Securities Act.

                    5.2
It shall be a condition precedent to the obligations of the Company to take any
action pursuant to this Agreement that the Holders proposing to register
Registrable Securities shall furnish to the Company such information regarding
themselves, the Registrable Securities held by them, and their intended method
of distribution of such Registrable Securities as the Company shall reasonably
request and as shall be required in connection with the action to be taken by
the Company; provided that no Holder shall be required to make any
representations or warranties to or agreements (other than a lock-up agreement
pursuant to Section 12) with the Company or the underwriters, other than
representations, warranties or agreements regarding the Holder, its Registrable
Securities and its intended method of distribution and any other representation
required by law.

                    5.3
In connection with the preparation and filing of each registration statement
under this Agreement, the Company will give the Holders on whose behalf such Registrable
Securities are to be registered and their underwriters, if any, and their
respective counsel and accountants, the opportunity to review such registration
statement, each prospectus included therein or filed with the Commission, and
each amendment thereof or supplement thereto, and will give each such Holder
such access to the Company’s books and records and such opportunities to
discuss the business of the Company with its officers, its counsel and the
independent public accountants who have certified the Company’s financial
statements, as shall be necessary, in the opinion of such Holders or such
underwriters or their respective counsel, in order to conduct a reasonable and
diligent investigation within the meaning of the Securities Act.

          6.
Indemnification.

                    6.1
Indemnification by the Company. The Company will indemnify each Holder,
each of its officers, directors and partners, and each person controlling such
Holder, with respect to which registration, qualification or compliance has
been effected pursuant to this Agreement, and each underwriter, if any, and
each Person who controls any underwriter, against all claims, losses, damages
and liabilities (or actions, proceedings or settlements in respect thereof)
arising out of or based on any untrue statement (or alleged untrue statement)
of a material fact contained in any prospectus, offering circular or other
document (including any related registration statement, notification or the
like) incident to any such registration, qualification or compliance, or based
on any omission (or alleged omission) to state therein a material fact required
to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any rule
or regulation there under applicable to the Company and relating to action or
inaction required of the Company in connection with any such registration,
qualification or compliance, and will reimburse each such Holder, each of its
officers, directors and partners, and each Person controlling such Holder, each
such underwriter and each Person who controls any such underwriter, for any
legal and any other expenses reasonably incurred in connection with
investigating and defending or settling any such claim, loss, damage, liability
or action, provided that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability or expense arises out of or
is based on any untrue statement or omission made in reliance upon and based
upon written information 

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furnished to
the Company by such Holder or underwriter and stated to be specifically for use
therein.

                    6.2
Indemnification by the Holders. Each Holder will, if Registrable
Securities held by him are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify the Company, each of
its directors and officers and each underwriter, if any, of the Company’s
securities covered by such a registration statement, each person who controls
the Company (other than such Holder) or such underwriter within the meaning of
the Securities Act and the rules and regulations thereunder, each other such
Holder and each of their officers, directors and partners, and each Person
controlling such Holder or other stockholder, against all claims, losses,
damages, expenses and liabilities (or actions in respect thereof) arising out
of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any such registration statement, prospectus, offering
circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company, each of its
directors and officers, each underwriter or control Person, each other Holder
and each of their officers, directors and partners and each Person controlling
such Holder or other stockholder for any legal or any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement) or omission
(or alleged omission) is made in such registration statement, prospectus,
offering circular or other document in reliance upon and in conformity with
written information furnished to the Company by such Holder and stated to be
specifically for use therein.

                    6.3
Notices of Claims, Procedures, etc. Each party entitled to
indemnification under this Section 6 (the “Indemnified Party”) shall give
notice to the party required to provide indemnification (the “Indemnifying
Party”) promptly after such Indemnified Party has actual knowledge of any
claim as to which indemnity may be sought, and shall permit the Indemnifying
Party to assume the defense of any such claim or any litigation resulting therefrom,
provided that counsel for the Indemnifying Party, who shall conduct the defense
of such claim or any litigation resulting therefrom, shall be approved by the
Indemnified Party (whose approval shall not be unreasonably withheld), and the
Indemnified Party may participate in such defense at the Indemnified Party’s
sole expense, and provided further that the failure of any Indemnified Party
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Section 7 unless such failure is prejudicial to the
ability of Indemnifying Party to defend such claim or action. Notwithstanding
the foregoing, such Indemnified Party shall have the right to employ its own
counsel in any such litigation, proceeding or other action if (i) the
employment of such counsel has been authorized by the Indemnifying Party, in
its sole and absolute discretion, or (ii) the named parties in any such claims
(including any impleaded parties) include any such Indemnified Party and the
Indemnified Party and the Indemnifying Party shall have been advised in writing
(in suitable detail) by counsel to the Indemnified Party either (A) that there
may be one or more legal defenses available to such Indemnified Party which are
different from or additional to those available to the Indemnifying Party, or
(B) that there is a conflict of interest by virtue of the Indemnified Party
and the Indemnifying Parties having common counsel, in any of which events,
the legal fees and expenses of a single counsel for all Indemnified Parties
with respect to each such claim, defense thereof, or counterclaims

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thereto shall
be borne by Indemnifying Party. No Indemnifying Party, in the defense of any
such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation. Each Indemnified Party shall cooperate to the
extent reasonably required and furnish such information regarding itself or the
claim in question as an Indemnifying Party may reasonably request in writing
and as shall be reasonably required in connection with defense of such claim
and litigation resulting therefrom.

          7.
Information by Holder. Each Holder of Registrable Securities shall
furnish to the Company such information regarding such Holder and the
distribution proposed by such Holder as the Company may reasonably request in
writing and as shall be reasonably required in connection with any registration,
qualification or compliance referred to in this Agreement; provided that no
Holder shall be required to make any representations or warranties to or
agreements (other than a lock-up agreement pursuant to Section 12) with the
Company or the underwriters, other than representations, warranties or
agreements regarding the Holder, its Registrable Securities and its intended
method of distribution and any other representation required by law.

          8.
Transfer or Assignment of Registration Rights. The rights to cause the
Company to register securities granted by the Company under this Agreement may
be transferred or assigned by a Holder to a transferee or assignee of any
Registrable Securities; provided that the Company is given written notice at or
prior to the time of said transfer or assignment, stating the name and address
of said transferee or assignee and identifying the securities with respect to
which such registration rights are being transferred or assigned; and provided
further that the transferee or assignee of such rights assumes in writing the
obligations of a Holder under this Agreement to the Company and other Holders
in effect at the time of transfer under all effective agreements. 

          9. Termination
of Registration Rights. No Holder shall be entitled to exercise any right
provided for in Section 2 or Section 3 above after the earlier of, as to each
Holder, the time at which such Holder (i) has sold all shares of Common Stock
to which this agreement applies, or (ii) can sell all shares of Common Stock
held by it and to which this agreement applies without restriction in
compliance with Rule 144(k).

          10.
Exchange Act Compliance. So long as the Company remains subject to the
reporting requirements of the Exchange Act, the Company shall file the reports
required to be filed by it under the Securities Act and the Exchange Act and
the rules and regulations adopted by the Commission thereunder, and will take
all actions reasonably necessary to enable holders of Registrable Securities to
sell such securities without registration under the Securities Act within the
limitation of the provisions of (a) Rule 144 under the Securities Act, as such
Rule may be amended from time to time, (b) Rule 144A under the Securities Act,
as such Rule may be amended from time to time, if applicable or (c) any similar
rules or regulations hereunder adopted by the Commission. Upon the request of
any Holder of Registrable Securities, the Company will deliver to such Holder a
written statement as to whether it has complied with such requirements.  After any sale of Registrable Securities
pursuant to the provisions of Rule 144 or

11

144A, the
Company will, to the extent allowed by law, cause any restrictive legends to be
removed and any transfer restrictions to be rescinded with respect to such
Registrable Securities. In order to permit a Holder to sell the same, if it so
desires, pursuant to Rule 144A promulgated by the Commission (or any successor
to such rule), the Company will comply with all rules and regulations of the
Commission applicable in connection with use of Rule 144A (or any successor
thereto). Prospective transferees of Registrable Securities that are Qualified
Institutional Buyers (as defined in Rule 144A) that would be purchasing such
Registrable Securities in reliance upon Rule 144A may request from the Company
information regarding the business, operations and assets of the Company.
Within five (5) business days of any such request, the Company shall deliver to
any such prospective transferee copies of annual audited and quarterly
unaudited financial statements of the Company and such other information as may
be required to be supplied by the Company for it to comply with Rule 144A.

          11.
No Conflict of Rights. The Company will not hereafter enter into any
agreement with respect to its securities which is inconsistent with the rights
granted to the Holders in this Agreement. Without limiting the generality of
the foregoing, the Company will not hereafter enter into any agreement with
respect to its securities which grants, or modifies any existing agreement with
respect to its securities to grant, to the holder of its securities equal or
higher priority to the rights granted to the Holders under Sections 2 and 3 of
this Agreement.

          12.
Lockup Agreement. In consideration for the Company agreeing to its
obligations hereunder, the Holders of Registrable Securities agree in
connection with any registration of the Company’s securities (which includes
Registrable Securities of at least $75,000 in value) pursuant to Section 3
hereof that, upon the request of the Company not to sell, make any short sale
of, loan, grant any option for the purchase of or otherwise dispose of any
Registrable Securities (other than those shares included in such registration)
without the prior written consent of the Company for such period of time (not
to exceed 180 days) from the effective date of such registration as the Company
may specify.

          13.
Benefits of Agreement; Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns, legal representatives and heirs. This Agreement
does not create, and shall not be construed as creating, any rights enforceable
by any other Person. 

          14.
Complete Agreement. This Agreement constitutes the complete
understanding among the parties with respect to its subject matter and
supersedes all existing agreements and understandings, whether oral or
written, among them. No alteration or modification of any provisions of this
Agreement shall be valid unless made in writing and signed, on the one hand, by
the Holders of a majority of the Registrable Securities then outstanding and,
on the other, by the Company.

          15.
Section Headings. The section headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

12

          16.
Notices. All notices, offers, acceptances and other communications
required or permitted to be given or to otherwise be made to any party to this
Agreement shall be deemed to be sufficient if contained in a written instrument
delivered by hand, first class mail (registered or certified, return receipt
requested), telecopier or overnight air courier guaranteeing next day delivery,
if to the Company, at 1140 Pearl Street, Boulder, Colorado 80302, Attention:
Chief Financial Officer, with a copy to Reed Guest, Esq., 94 Underhill Road,
Orinda, CA 94563, and if to Pagemill, to 2475 Hanover Street, Palo Alto, CA
94304, Attention: Chief Financial Officer, or at such other address or
addresses as may have been furnished the Company in writing.

          All
such notices and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; five business days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged,
if telecopied; and the next business day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery. Any party may
change the address to which each such notice or communication shall be sent by
giving written notice to the other parties of such new address in the manner
provided herein for giving notice.

          17.
Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware without giving
effect to the provisions, policies or principles thereof respecting conflict
or choice of laws.

          18.
Counterparts. This Agreement may be executed in one or more counterparts
each of which shall be deemed an original but all of which taken together shall
constitute one and the same agreement.

          19.
Severability. Any provision of this Agreement which is determined to be
illegal, prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such illegality, prohibition or
unenforceability without invalidating the remaining provisions hereof which
shall be severable and enforceable according to their terms and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

SIGNATURE PAGE FOLLOWS

13

          IN
WITNESS WHEREOF, the parties have signed this Agreement as of the date first
set forth above.

	
 >

	
 >

	
 >

	
 

	
INCENTRA SOLUTIONS, INC.

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:
 Matthew G. Richman

	
 

	
Title:   Chief
 Corporate Development Officer and Treasurer

	
 

	
 

	
 

	
 

	
PAGEMILL PARTNERS, LLC

	
 

	
 

	
 

	
 

	

	
 

	
Name: Bill
 Sunstrum

	
 

	
Chief
 Financial Officer

14exh10-1_note.htm

     

    
      

      

    

     

     

     

     

     

    EXHIBIT
      10.1

     

    SUBORDINATED
      UNSECURED PROMISSORY NOTE

    DATED
      AUGUST 22, 2007

     

    
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THIS
      SUBORDINATED UNSECURED PROMISSORY NOTE (THIS “NOTE”) AND THE
      INDEBTEDNESS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT
      SET FORTH IN THAT CERTAIN SUBORDINATION AGREEMENT DATED AS OF AUGUST 22, 2007
      (AS AMENDED, RESTATED SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME,
      THE
“SUBORDINATION AGREEMENT”) AMONG GALAXY ENERGY CORPORATION, THE
      SUBORDINATED CREDITORS NAMED THEREIN, THE LENDERS NAMED THEREIN, AND PROMETHEAN
      ASSET MANAGEMENT L.L.C., TO THE SENIOR INDEBTEDNESS (AS DEFINED IN THE
      SUBORDINATION AGREEMENT); AND EACH HOLDER OF THIS PROMISSORY NOTE (EACH A
“HOLDER”, AND COLLECTIVELY THE “HOLDERS”), BY
      ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE PROVISIONS OF THE SUBORDINATION
      AGREEMENT.

     

     

     

    This
      Security has not been registered under the Securities Act of 1933 (hereinafter
      the “1933 Act”) or under applicable state securities law (hereinafter the “State
      Acts”) and may not be sold, assigned, pledged, transferred or hypothecated,
      whether or not for consideration, by the holder except upon issuance to the
      Company of a favorable written opinion of Counsel for the Company or upon
      submission to the Company of such other evidence as may be satisfactory to
      counsel to the Company to the effect that any such sale, assignment, pledge,
      transfer or hypothecation will not be in violation of the 1933 Act or the State
      Acts.

    

    

    GALAXY
      ENERGY CORPORATION

     

    Subordinated
      Unsecured Promissory Note

    

    August
      22, 2007

    

    $125,000.00                                                                                                                                                                                                   
      Denver, Colorado

     

    FOR
      VALUE
      RECEIVED, Galaxy Energy Corporation, a Colorado corporation
      (hereinafter the “Company”) promises to pay to the order of Bruner
      Family Trust UTD March 28, 2005 (hereinafter the “Holder”), the
      principal sum of One Hundred Twenty Five Thousand Dollars ($125,000.00),
      together with interest at the rate of eight percent (8.0%) per annum
      (hereinafter “Interest”), such principal and Interest to be payable ON THE LATER
      OF, (i) the date upon which all of the Senior Indebtedness (as defined in the
      Subordination Agreement) has been indefeasibly paid in full, and (ii) one
      hundred twenty (120) days from the date hereof, in each case, in lawful money
      of
      the United States of America, subject, however, to the restrictions contained
      in
      the Subordination Agreement.  Holder shall advance the principal
      amount of this Note to the Company in one or more advances and interest shall
      accrue from the date of each such advance.

    

    

    
      
        Galaxy
          Energy Corporation Subordinated Promissory Note -
          Page 1 of 4

      

      
         

        
          

        

      

      
         

      

    

    1.
      EVENTS OF DEFAULT.

    

    If
      one or more of the following events
      (hereinafter “events of default”) shall occur:

    

    (a)
      default in the payment of any
      principal of or interest on this Note and the continuation of such default
      for a
      period of 10 days;

    

    (b)
      breach of any covenant contained in
      this Note and the continuation of such breach for a period of 30 days or more
      after written notice thereof;

     

    (c)
      the
      Company or any of its subsidiaries files or is served with any petition for
      relief under the Bankruptcy Code or any similar federal or state statute (the
      “Code”) or the entry by a court of competent jurisdiction of a decree or order
      adjudging the company or the subsidiary, as the case may be, a bankrupt or
      insolvent or approving as properly filed a petition seeking reorganization,
      arrangement, adjustment or composition of or in respect of the Company or the
      subsidiary under the Code or appointing a receiver, trustee or other similar
      official of the Company or the subsidiary or all or substantially all of its
      assets or the subsidiary’s assets, or ordering the winding up or liquidation of
      its affairs or the subsidiary’s affairs, and the continuation of such decree or
      order unstayed and in effect for a period of 60 consecutive days;

     

    (d)
      the
      institution by the Company or any of its subsidiaries or the consent to the
      institution by the Company or its subsidiary of proceedings to adjudicate the
      Company or its subsidiary a bankrupt or insolvent or the filing or consent
      by
      the Company or its subsidiary to the filing of a petition or answer seeking
      reorganization or relief under the Code, the consent by the Company or its
      subsidiary to the appointment of a receiver, trustee or other similar official
      of the Company or its subsidiary or of any substantial part of its property
      of
      its subsidiary’s property, an assignment by the Company or its subsidiary for
      the benefit of creditors or the admission by the Company or its subsidiary
      in
      writing of its inability to pay its debts generally as they become due;
      or

     

    (e)
      a
      default by the Company in any of its obligations under any other promissory
      note
      or any mortgage, credit agreement or other facility, indenture agreement,
      factoring agreement or other instrument under which there may be issued, or
      by
      which there may be secured or evidenced any indebtedness for borrowed money
      or
      money due under any long term leasing or factoring arrangement of the Company
      in
      an amount exceeding $50,000, whether such indebtedness now exists or shall
      hereafter be created and such default shall result in such indebtedness becoming
      or being declared due and payable prior to the date on which it would otherwise
      become due and payable;

    

    then,
      subject to the terms, provisions and restrictions contained in the Subordination
      Agreement, the Holder of this Note may, by written notice to the Company,
      declare the entire unpaid principal of and accrued and unpaid Interest on this
      Note to be due and payable and, upon such declaration, the same shall become
      due
      and payable forthwith without further demand or notice, the payment on such
      declaration, however, being subject to the subordination provisions of this
      Note.

     

     

    
 

    
      
        Galaxy
          Energy Corporation Subordinated Promissory Note -
          Page 2 of 4

      

      
         

        
          

        

      

      
         

      

    

    2.
      MISCELLANEOUS.

     

    2.1.
      All
      powers and remedies given by this Note to the Holder hereof shall, to the extent
      permitted by law, be deemed cumulative and not exclusive of any other power
      or
      remedy or of any other powers and remedies available to the Holder hereof,
      by
      judicial proceedings or otherwise, to enforce the performance or observance
      of
      the covenants and agreements contained in this Note.  No delay or
      omission of the Holder hereof to exercise any right or power accruing upon
      any
      default occurring and continuing as aforesaid shall impair any such right or
      power or shall be construed to be a waiver of any such default or any
      acquiescence therein.  Every power and remedy given by this Note or by
      law to the Holder hereof may be exercised from time to time, and as often as
      shall be deemed expedient, by the Holder hereof, all subject, as hereinabove
      provided, to the payment of the principal of and the interest on this Note
      being
      expressly subordinated in right of payment to the prior payment in full of
      all
      Senior Indebtedness.

    

    2.2.
      In addition to the payments
      provided for above, subject to the terms, provisions and restrictions contained
      in the Subordination Agreement, the Company agrees to pay all expenses incurred,
      including reasonable attorneys’ fees, if this Note is placed in the hands of an
      attorney for collection or if it is collected through bankruptcy or other
      judicial proceedings.

    

    2.3.
      The Company, to the extent
      permitted by law, waives notice, demand, presentment for payment, protest,
      the
      filing of suit or the taking of any other action by any Holder hereof for the
      purpose of fixing its liability hereon.

    

    2.4.
      This Note has been executed and
      delivered in and shall be governed by and construed in accordance with the
      laws
      of the State of Colorado.

    

    
      
        Galaxy
          Energy Corporation Subordinated Promissory Note -
          Page 3 of 4    

         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the Company has
      executed this Note under seal on the day and year first above
      written.

    

     

    
      	 	GALAXY
              ENERGY
              CORPORATION	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/    
              Christopher S. Hardesty	 
	 	 	Christopher
              S.
              Hardesty 	 
	 	 	Chief
              Financial
              Officer	 
	 	 	 	 

    

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Galaxy
      Energy Corporation Subordinated Promissory Note - Page
      4 of 4

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