Document:

Exhibit 10.2

THIS NOTE HAS NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY  STATE  SECURITIES  LAWS.  THIS NOTE MAY NOT BE SOLD,  OFFERED  FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS
TO THIS NOTE  UNDER  SAID ACT AND ANY  APPLICABLE  STATE  SECURITIES  LAWS OR AN
OPINION OF COUNSEL REASONABLY  SATISFACTORY TO INCENTRA  SOLUTIONS,  INC. (F/K/A
FRONT PORCH DIGITAL INC.) THAT SUCH REGISTRATION IS NOT REQUIRED.

                             SECURED REVOLVING NOTE

                FOR VALUE RECEIVED,  each of INCENTRA SOLUTIONS,  INC., a Nevada
Corporation (the "PARENT"), and the other companies listed on EXHIBIT A attached
hereto (such other  companies  together  with the Parent,  each a "COMPANY"  and
collectively, the "COMPANIES"), jointly and severally, promises to pay to LAURUS
MASTER FUND, LTD., c/o M&C Corporate  Services Limited,  P.O. Box 309 GT, Ugland
House,  South Church Street,  George Town,  Grand Cayman,  Cayman Islands,  Fax:
345-949-8080 (the "HOLDER") or its registered assigns or successors in interest,
the sum of Ten Million Dollars  ($10,000,000),  or, if different,  the aggregate
principal amount of all Loans (as defined in the Security  Agreement referred to
below, together with any accrued and unpaid interest hereon, on February 6, 2009
(the "MATURITY DATE") if not sooner indefeasibly paid in full.

                Capitalized terms used herein without  definition shall have the
meanings  ascribed to such terms in the Security  Agreement  among the Companies
and the  Holder  dated  as of the  date  hereof  (as  amended,  modified  and/or
supplemented from time to time, the "SECURITY AGREEMENT").

                The following  terms shall apply to this Secured  Revolving Note
(this "NOTE"):

                                    ARTICLE I
                                  CONTRACT RATE

                1.1     CONTRACT  RATE.   Subject  to  Sections  3.2  and  4.10,
interest  payable  on  the  outstanding  principal  amount  of  this  Note  (the
"PRINCIPAL  AMOUNT")  shall accrue at a rate per annum equal to the "prime rate"
published in THE WALL STREET JOURNAL from time to time (the "PRIME RATE"),  plus
one percent (1.0%) (the "CONTRACT  RATE").  The Contract Rate shall be increased
or decreased as the case may be for each  increase or decrease in the Prime Rate
in an amount equal to such  increase or decrease in the Prime Rate;  each change
to be effective as of the day of the change in the Prime Rate. The Contract Rate
shall not at any time be less than seven percent  (7.0%).  Interest shall be (i)
calculated on the basis of a 360 day year, and (ii) payable monthly, in arrears,
commencing  on March  1,  2006 on the  first  business  day of each  consecutive
calendar  month  thereafter  through and including the Maturity Date, and on the
Maturity Date, whether by acceleration or otherwise.
<PAGE>

                                   ARTICLE II
                             [INTENTIONALLY OMITTED]

                                   ARTICLE III
                EVENTS OF DEFAULT AND DEFAULT RELATED PROVISIONS

                3.1     EVENTS OF DEFAULT. The occurrence of an Event of Default
under the Security  Agreement  shall  constitute an event of default  ("EVENT OF
DEFAULT") hereunder.

                3.2     DEFAULT  INTEREST.  Following the  occurrence and during
the continuance of an Event of Default beyond any applicable  grace period,  the
Companies  shall,  jointly  and  severally,   pay  additional  interest  on  the
outstanding  principal  balance  of this Note in an amount  equal to one and one
half percent (1.5%) per month, and all outstanding Obligations, including unpaid
interest,  shall continue to accrue  interest at such  additional  interest rate
from the date of such Event of  Default  until the date such Event of Default is
cured or waived.

                3.3     DEFAULT PAYMENT. Following the occurrence and during the
continuance  of an Event of Default  beyond any  applicable  grace  period,  the
Holder, at its option,  within five (5) days after written notice from Holder to
Borrower,  may elect, in addition to all rights and remedies of the Holder under
the Security  Agreement and the other  Ancillary  Agreements and all obligations
and  liabilities  of each  Company  under the Security  Agreement  and the other
Ancillary Agreements, to require the Companies, jointly and severally, to make a
Default Payment  ("DEFAULT  PAYMENT").  The Default Payment shall be one hundred
twenty five percent (125%) of the outstanding principal amount of the Note, plus
accrued but unpaid interest, all other fees then remaining unpaid, and all other
amounts  payable  hereunder.  The Default  Payment shall be applied first to any
fees due and payable to the Holder pursuant to the Notes, the Security Agreement
and/or the Ancillary Agreements,  then to accrued and unpaid interest due on the
Notes and then to the outstanding  principal  balance of the Notes.  The Default
Payment  shall be due and  payable  immediately  on the date that the Holder has
exercised its rights pursuant to this Section 3.3.

                                   ARTICLE IV
                                  MISCELLANEOUS

                4.1     INTENTIONALLY OMITTED.

                4.2     CUMULATIVE REMEDIES.  The remedies under this Note shall
be cumulative.

                4.3     FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on
the part of the Holder  hereof in the exercise of any power,  right or privilege
hereunder  shall  operate as a waiver  thereof,  nor shall any single or partial
exercise  of any  such  power,  right or  privilege  preclude  other or  further
exercise  thereof  or of any other  right,  power or  privilege.  All rights and
remedies existing  hereunder are cumulative to, and not exclusive of, any rights
or remedies otherwise available.

                4.4     NOTICES.  Any notice herein  required or permitted to be
given shall be in writing and shall be deemed  effective given (a) upon personal
delivery to the party notified, (b)

                                       2
<PAGE>

when sent by confirmed  telex or facsimile if sent during normal  business hours
of the  recipient,  if not,  then on the next  business day, (c) five days after
having been sent by  registered or certified  mail,  return  receipt  requested,
postage  prepaid,  or (d) one day after  deposit  with a  nationally  recognized
overnight courier,  specifying next day delivery,  with written  verification of
receipt.  All  communications  shall be sent to the  respective  Company  at the
address  provided  for  such  Company  in the  Security  Agreement  executed  in
connection  herewith,  and to the Holder at the address provided in the Security
Agreement for the Holder, with a copy to John E. Tucker, Esq., 825 Third Avenue,
14th Floor,  New York, New York 10022,  facsimile  number (212) 541-4434,  or at
such other address as the respective  Company or the Holder may designate by ten
days advance written notice to the other parties hereto.

                4.5     AMENDMENT PROVISION.  The term "Note" and all references
thereto,  as used  throughout  this  instrument,  shall mean this  instrument as
originally executed, or if later amended or supplemented,  then as so amended or
supplemented,  and any successor  instrument as such successor instrument may be
amended or supplemented.

                4.6     ASSIGNABILITY.  This  Note  shall be  binding  upon each
Company and its  successors  and assigns,  and shall inure to the benefit of the
Holder and its  successors  and  assigns,  and may be  assigned by the Holder in
accordance  with the  requirements  of the  Security  Agreement.  No Company may
assign any of its obligations  under this Note without the prior written consent
of the Holder, any such purported assignment without such consent being null and
void.

                4.7     COST OF  COLLECTION.  In case of any  Event  of  Default
under this Note, the Companies shall, jointly and severally,  pay the Holder the
Holder's reasonable costs of collection,  including reasonable  attorneys' fees.

                4.8     GOVERNING LAW, JURISDICTION AND WAIVER OF JURY TRIAL.

                        (a)     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

                        (b)     EACH COMPANY HEREBY CONSENTS AND AGREES THAT THE
STATE OR FEDERAL  COURTS  LOCATED  IN THE COUNTY OF NEW YORK,  STATE OF NEW YORK
SHALL HAVE EXCLUSIVE  JURISDICTION  TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES
BETWEEN  ANY  COMPANY,  ON THE ONE HAND,  AND THE  HOLDER,  ON THE  OTHER  HAND,
PERTAINING TO THIS NOTE,  THE SECURITY  AGREEMENT OR ANY OF THE OTHER  ANCILLARY
AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE, THE SECURITY
AGREEMENT OR ANY OF THE OTHER ANCILLARY AGREEMENTS  PROVIDED,  THAT EACH COMPANY
ACKNOWLEDGES  THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED  OUTSIDE  OF THE  COUNTY OF NEW YORK,  STATE OF NEW  YORK;  AND  FURTHER
PROVIDED,  THAT  NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE
HOLDER FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION
TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY

                                       3
<PAGE>

OTHER  SECURITY  FOR THE  OBLIGATIONS,  OR TO ENFORCE A JUDGMENT  OR OTHER COURT
ORDER IN FAVOR OF THE HOLDER.  EACH  COMPANY  EXPRESSLY  SUBMITS AND CONSENTS IN
ADVANCE TO SUCH  JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND EACH COMPANY  HEREBY WAIVES ANY OBJECTION  WHICH IT MAY HAVE BASED UPON LACK
OF PERSONAL JURISDICTION,  IMPROPER VENUE OR FORUM NON CONVENIENS.  EACH COMPANY
HEREBY  WAIVES  PERSONAL  SERVICE OF THE SUMMONS,  COMPLAINT  AND OTHER  PROCESS
ISSUED IN ANY SUCH  ACTION OR SUIT AND  AGREES  THAT  SERVICE  OF SUCH  SUMMONS,
COMPLAINT  AND  OTHER  PROCESS  MAY BE  MADE BY  REGISTERED  OR  CERTIFIED  MAIL
ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE SECURITY  AGREEMENT AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY'S
ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
POSTAGE PREPAID

                        (c)     EACH  COMPANY   DESIRES  THAT  ITS  DISPUTES  BE
RESOLVED BY A JUDGE APPLYING SUCH  APPLICABLE  LAWS.  THEREFORE,  TO ACHIEVE THE
BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH
COMPANY  HERETO  WAIVES  ALL  RIGHTS TO TRIAL BY JURY IN ANY  ACTION,  SUIT,  OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR
OTHERWISE BETWEEN THE HOLDER, AND/OR ANY COMPANY ARISING OUT OF, CONNECTED WITH,
RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION
WITH THIS NOTE, THE SECURITY  AGREEMENT,  ANY OTHER  ANCILLARY  AGREEMENT OR THE
TRANSACTIONS RELATED HERETO OR THERETO.

                4.9     SEVERABILITY.  In the event that any  provision  of this
Note is invalid or  unenforceable  under any applicable  statute or rule of law,
then  such  provision  shall be deemed  inoperative  to the  extent  that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or  unenforceable  under
any law shall not affect the validity or  enforceability  of any other provision
of this Note.

                4.10    MAXIMUM  PAYMENTS.  Nothing  contained  herein  shall be
deemed to  establish  or  require  the  payment of a rate of  interest  or other
charges in excess of the maximum  permitted by applicable law. In the event that
the rate of interest  required to be paid or other charges  hereunder exceed the
maximum rate  permitted by such law, any payments in excess of such maximum rate
shall be credited  against  amounts owed by the Companies to the Holder and thus
refunded to the Companies.

                4.11    SECURITY  INTEREST  AND  GUARANTEE.  The Holder has been
granted a security interest (i) in certain assets of the Companies as more fully
described  in the  Security  Agreement  and (ii)  pursuant  to the Stock  Pledge
Agreement  dated as of the date hereof.  The  obligations of the Companies under
this Note are guaranteed by certain  Subsidiaries  of the Companies  pursuant to
the Subsidiary Guaranty dated as of the date hereof.

                                       4
<PAGE>

                4.12    CONSTRUCTION.  Each  party  acknowledges  that its legal
counsel participated in the preparation of this Note and, therefore,  stipulates
that the rule of construction  that  ambiguities are to be resolved  against the
drafting party shall not be applied in the  interpretation of this Note to favor
any party against the other.

       [Balance of page intentionally left blank; signature page follows]

                                       5
<PAGE>

                IN  WITNESS  WHEREOF,  each  Company  has  caused  this  Secured
Revolving Note to be signed in its name effective as of this 6th day of February
2006.

                                        INCENTRA SOLUTIONS, INC.
                                        (F/K/A FRONT PORCH DIGITAL, INC.)

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

WITNESS:

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

                                        PWI TECHNOLOGIES, INC.

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

WITNESS:

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

                                        INCENTRA SOLUTIONS OF CALIFORNIA, INC.

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

WITNESS:

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

                                       6
<PAGE>

                                        MANAGEDSTORAGE INTERNATIONAL, INC.

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

WITNESS:

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

                                        INCENTRA SOLUTIONS INTERNATIONAL, INC.

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

WITNESS:

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

6
<PAGE>

                                    EXHIBIT A

                                 OTHER COMPANIES

PWI Technologies, Inc., a Washington corporation

Incentra Solutions of California, Inc., a Delaware corporation

ManagedStorage International, Inc, a Delaware corporation

Incentra Solutions International, Inc.Exhibit 10.3

                             STOCK PLEDGE AGREEMENT

        This Stock Pledge Agreement (this "AGREEMENT"),  dated as of February 6,
2006, among Laurus Master Fund, Ltd. (the "PLEDGEE"),  Incentra Solutions,  Inc.
(f/k/a Front Porch Digital,  Inc.), a Nevada  corporation (the  "COMPANY"),  and
each of the other undersigned  parties (other than the Pledgee) (the Company and
each  such  other  undersigned   party,  a  "PLEDGOR"  and   collectively,   the
"PLEDGORS").

                                   BACKGROUND

        The Company has entered into a Securities Purchase  Agreement,  dated as
of May 13, 2004 as amended,  modified,  restated  or  supplemented  from time to
time, the "SECURITIES PURCHASE AGREEMENT"), and a Security Agreement dated as of
February 6, 2006 (as amended,  modified,  restated or supplemented  from time to
time,  the  "SECURITY  AGREEMENT"),  pursuant to which the Pledgee has provided,
provides or will provide  certain  financial  accommodations  to the Company and
certain subsidiaries of the Company.

        In order to induce the  Pledgee to provide or  continue  to provide  the
financial  accommodations described in the Securities Purchase Agreement and the
Security  Agreement,  each  Pledgor  has  agreed to pledge  and grant a security
interest  in the  collateral  described  herein to the  Pledgee on the terms and
conditions set forth herein.

        NOW, THEREFORE,  in consideration of the premises and for other good and
valuable consideration the receipt of which is hereby acknowledged,  the parties
hereto agree as follows:

        1.      DEFINED TERMS.  All capitalized  terms used herein which are not
defined  shall  have  the  meanings  given  to them in the  Securities  Purchase
Agreement and the Security Agreement, as applicable.

        2.      PLEDGE AND GRANT OF  SECURITY  INTEREST.  To secure the full and
punctual  payment  and  performance  of (the  following  clauses  (a)  and  (b),
collectively,  the  "OBLIGATIONS")  (a) the  obligations  under  the  Securities
Purchase  Agreement  and the Related  Agreements  referred to in the  Securities
Purchase Agreement, the Security Agreement and the Ancillary Agreements referred
to in the Security Agreement (the Securities  Purchase Agreement and the Related
Agreements the Security Agreement and the Ancillary  Agreements,  as each may be
amended, restated, modified and/or supplemented from time to time, collectively,
the "DOCUMENTS")  and (b) all other  obligations and liabilities of each Pledgor
to the Pledgee  whether now existing or hereafter  arising,  direct or indirect,
liquidated or unliquidated,  absolute or contingent,  due or not due and whether
under,  pursuant to or evidenced by a note, agreement,  guaranty,  instrument or
otherwise (in each case, irrespective of the genuineness,  validity,  regularity
or enforceability of such  Obligations,  or of any instrument  evidencing any of
the  Obligations or of any collateral  therefor or of the existence or extent of
such collateral, and irrespective of the allowability, allowance or disallowance
of any or all of such in any case  commenced  by or against  any  Pledgor  under
Title 11, United States Code, including, without limitation, obligations of each
Pledgor for  post-petition  interest,  fees,  costs and charges  that would have
accrued or been added

<PAGE>

to the Obligations but for the  commencement of such case),  each Pledgor hereby
pledges,  assigns,  hypothecates,  transfers  and grants a security  interest to
Pledgee in all of the following (the "COLLATERAL"):

                (a)     the  shares  of stock set  forth on  SCHEDULE  A annexed
hereto and expressly made a part hereof (together with any additional  shares of
stock or other equity interests  acquired by any Pledgor,  the "PLEDGED STOCK"),
the  certificates  representing  the  Pledged  Stock  and all  dividends,  cash,
instruments  and  other  property  or  proceeds  from  time  to  time  received,
receivable or otherwise  distributed in respect of or in exchange for any or all
of the Pledged Stock;

                (b)     all additional  shares of stock of any issuer (each,  an
"ISSUER") of the Pledged  Stock from time to time acquired by any Pledgor in any
manner,  including,  without  limitation,  stock  dividends or a distribution in
connection with any increase or reduction of capital, reclassification,  merger,
consolidation,  sale of assets,  combination of shares, stock split, spin-off or
split-off (which shares shall be deemed to be part of the  Collateral),  and the
certificates  representing  such  additional  shares,  and all dividends,  cash,
instruments  and  other  property  or  proceeds  from  time  to  time  received,
receivable or otherwise  distributed in respect of or in exchange for any or all
of such shares; and

                (c)     all options and  rights,  whether as an addition  to, in
substitution  of or in  exchange  for any  shares of any  Pledged  Stock and all
dividends,  cash,  instruments  and other property or proceeds from time to time
received,  receivable or otherwise  distributed in respect of or in exchange for
any or all such options and rights.

        3.      DELIVERY  OF  COLLATERAL.   All  certificates   representing  or
evidencing  the Pledged  Stock shall be delivered to and held by or on behalf of
Pledgee pursuant hereto and shall be accompanied by duly executed instruments of
transfer or  assignments  in blank,  all in form and substance  satisfactory  to
Pledgee. Each Pledgor hereby authorizes the Issuer upon demand by the Pledgee to
deliver  any  certificates,   instruments  or  other  distributions   issued  in
connection with the Collateral  directly to the Pledgee, in each case to be held
by the Pledgee,  subject to the terms hereof. Upon the occurrence and during the
continuance  of an Event of Default (as defined  below),  the Pledgee shall have
the right, during such time in its discretion and without notice to the Pledgor,
to transfer to or to register in the name of the Pledgee or any of its  nominees
any or all of the Pledged Stock.  In addition,  the Pledgee shall have the right
at such time to exchange certificates or instruments  representing or evidencing
Pledged   Stock  for   certificates   or   instruments   of  smaller  or  larger
denominations.

        4.      REPRESENTATIONS  AND  WARRANTIES OF EACH  PLEDGOR.  Each Pledgor
jointly  and   severally   represents   and  warrants  to  the  Pledgee   (which
representations  and warranties shall be deemed to continue to be made until all
of the  Obligations  have been paid in full and each Document and each agreement
and  instrument  entered  into in  connection  therewith  has  been  irrevocably
terminated) that:

                (a)     the execution,  delivery and performance by each Pledgor
of this Agreement and the pledge of the Collateral hereunder do not and will not
result in any violation

                                       2
<PAGE>

of any agreement, indenture,  instrument, license, judgment, decree, order, law,
statute,  ordinance or other  governmental rule or regulation  applicable to any
Pledgor;

                (b)     this Agreement constitutes the legal, valid, and binding
obligation of each Pledgor  enforceable  against each Pledgor in accordance with
its terms;

                (c)     all Pledged  Stock owned by each Pledgor is set forth on
SCHEDULE A hereto and (ii) each  Pledgor is the direct and  beneficial  owner of
each share of the Pledged Stock;

                (d)     all of the  shares of the  Pledged  Stock have been duly
authorized, validly issued and are fully paid and nonassessable;

                (e)     no  consent  or  approval  of any  person,  corporation,
governmental body, regulatory authority or other entity, is or will be necessary
for (i) the  execution,  delivery and  performance of this  Agreement,  (ii) the
exercise by the Pledgee of any rights with  respect to the  Collateral  or (iii)
the pledge and  assignment  of,  and the grant of a  security  interest  in, the
Collateral hereunder;

                (f)     there  are no  pending  or,  to the  best  of  Pledgor's
knowledge,  threatened actions or proceedings  before any court,  judicial body,
administrative  agency or arbitrator  which may materially  adversely affect the
Collateral;

                (g)     each Pledgor has the  requisite  power and  authority to
enter into this Agreement and to pledge and assign the Collateral to the Pledgee
in accordance with the terms of this Agreement;

                (h)     each  Pledgor  owns  each  item of the  Collateral  and,
except for the pledge and security  interest granted to Pledgee  hereunder,  the
Collateral  shall be,  immediately  following  the  closing of the  transactions
contemplated  by the Documents,  free and clear of any other security  interest,
mortgage,  pledge,  claim, lien, charge,  hypothecation,  assignment,  offset or
encumbrance whatsoever (collectively, "LIENS");

                (i)     there are no  restrictions  on  transfer  of the Pledged
Stock  contained in the certificate of  incorporation  or by-laws (or equivalent
organizational  documents)  of the Issuer or otherwise  which have not otherwise
been enforceably and legally waived by the necessary parties;

                (j)     none of the Pledged Stock has been issued or transferred
in violation of the securities  registration,  securities  disclosure or similar
laws of any jurisdiction to which such issuance or transfer may be subject;

                (k)     the  pledge and  assignment  of the  Collateral  and the
grant of a security interest under this Agreement vest in the Pledgee all rights
of each Pledgor in the Collateral as contemplated by this Agreement; and

                (l)     The Pledged Stock constitutes one hundred percent (100%)
of the issued and outstanding shares of capital stock of each Issuer.

                                       3
<PAGE>

        5.      COVENANTS.  Each Pledgor  jointly and severally  covenants that,
until the Obligations shall be indefeasibly  satisfied in full and each Document
and each  agreement  and  instrument  entered  into in  connection  therewith is
irrevocably terminated:

                (a)     No  Pledgor  will sell,  assign,  transfer,  convey,  or
otherwise dispose of its rights in or to the Collateral or any interest therein;
nor will any Pledgor  create,  incur or permit to exist any Lien whatsoever with
respect to any of the Collateral or the proceeds thereof other than that created
hereby.

                (b)     Each  Pledgor  will,  at its expense,  defend  Pledgee's
right,  title and security interest in and to the Collateral  against the claims
of any other party.

                (c)     Each Pledgor  shall at any time,  and from time to time,
upon the written request of Pledgee,  execute and deliver such further documents
and do such further acts and things as Pledgee may  reasonably  request in order
to effectuate the purposes of this Agreement including,  but without limitation,
delivering to Pledgee,  upon the occurrence of an Event of Default,  irrevocable
proxies in respect of the  Collateral  in form  satisfactory  to Pledgee.  Until
receipt  thereof,  upon an Event of Default that has occurred and is  continuing
beyond any applicable grace period,  this Agreement shall  constitute  Pledgor's
proxy to Pledgee or its nominee to vote all shares of Collateral then registered
in each Pledgor's name.

                (d)     No Pledgor  will  consent to or approve the  issuance of
(i) any  additional  shares  of any  class of  capital  stock  or  other  equity
interests of the Issuer; or (ii) any securities  convertible  either voluntarily
by the holder thereof or  automatically  upon the occurrence or nonoccurrence of
any event or  condition  into,  or any  securities  exchangeable  for,  any such
shares,  unless, in either case, such shares are pledged as Collateral  pursuant
to this Agreement.

        6.      VOTING RIGHTS AND DIVIDENDS. In addition to the Pledgee's rights
and  remedies set forth in Section 8 hereof,  in case an Event of Default  shall
have occurred and be continuing,  beyond any applicable cure period, the Pledgee
shall (i) be entitled to vote the Collateral, (ii) be entitled to give consents,
waivers and  ratifications  in respect of the  Collateral  (each Pledgor  hereby
irrevocably  constituting  and  appointing  the  Pledgee,  with  full  power  of
substitution,  the proxy and attorney-in-fact of each Pledgor for such purposes)
and (iii) be entitled to collect and receive for its own use cash dividends paid
on the  Collateral.  No Pledgor  shall be  permitted to exercise or refrain from
exercising any voting rights or other powers if, in the  reasonable  judgment of
the Pledgee,  such action would have a material  adverse  effect on the value of
the Collateral or any part thereof;  and, PROVIDED,  FURTHER,  that each Pledgor
shall  give at least five (5) days'  written  notice of the manner in which such
Pledgor intends to exercise, or the reasons for refraining from exercising,  any
voting  rights or other  powers  other  than with  respect  to any  election  of
directors  and voting with  respect to any  incidental  matters.  Following  the
occurrence of an Event of Default,  all dividends and all other distributions in
respect of any of the  Collateral,  shall be delivered to the Pledgee to hold as
Collateral and shall,  if received by any Pledgor,  be received in trust for the
benefit of the Pledgee,  be segregated  from the other  property or funds of any
other  Pledgor,  and be forthwith  delivered to the Pledgee as Collateral in the
same form as so received (with any necessary endorsement).

                                       4
<PAGE>

        7.      EVENT OF  DEFAULT.  An "Event of Default"  under this  Agreement
shall occur upon the happening of any of the following events:

                (a)     An  "Event  of  Default"   under  any  Document  or  any
agreement or note related to any Document  shall have occurred and be continuing
beyond any applicable cure period;

                (b)     Any Pledgor shall default in the  performance  of any of
its  obligations  under  any  Document,   including,  without  limitation,  this
Agreement, and such default shall not be cured during the cure period applicable
thereto;

                (c)     Any  representation  or  warranty  of any  Pledgor  made
herein,  in any Document or in any agreement,  statement or certificate given in
writing pursuant hereto or thereto or in connection  herewith or therewith shall
be false or misleading in any material respect;

                (d)     Any portion of the  Collateral is subjected to a levy of
execution, attachment, distraint or other judicial process or any portion of the
Collateral  is the  subject of a claim  (other  than by the  Pledgee) of a Lien,
other than the Permitted Liens as defined in the Securities  Purchase  Agreement
and/or  the  Security  Agreement,  or  other  right  or  interest  in or to  the
Collateral and such levy or claim shall not be cured,  disputed or stayed within
a period of fifteen (15) business days after the occurrence thereof; or

                (e)     Any Pledgor  shall (i) apply for,  consent to, or suffer
to exist  the  appointment  of,  or the  taking of  possession  by, a  receiver,
custodian,  trustee,  liquidator  or other  fiduciary  of  itself or of all or a
substantial part of its property, (ii) make a general assignment for the benefit
of  creditors,  (iii)  commence  a  voluntary  case  under any state or  federal
bankruptcy laws (as now or hereafter in effect),  (iv) be adjudicated a bankrupt
or  insolvent,  (v) file a petition  seeking to take  advantage of any other law
providing  for  the  relief  of  debtors,  (vi)  acquiesce  to,  or fail to have
dismissed,  within  thirty  (30)  days,  any  petition  filed  against it in any
involuntary  case under such  bankruptcy  laws, or (vii) take any action for the
purpose of effecting  any of the  foregoing.

        8.      REMEDIES. In case an Event of Default shall have occurred and is
continuing, the Pledgee may:

                (a)     Transfer any or all of the Collateral  into its name, or
into the name of its nominee or nominees;

                (b)     Exercise  all  corporate  rights  with  respect  to  the
Collateral including,  without limitation,  all rights of conversion,  exchange,
subscription or any other rights, privileges or options pertaining to any shares
of the  Collateral  as if it were the absolute  owner  thereof,  including,  but
without limitation,  the right to exchange, at its discretion, any or all of the
Collateral upon the merger, consolidation,  reorganization,  recapitalization or
other readjustment of the Issuer thereof,  or upon the exercise by the Issuer of
any right,  privilege or option  pertaining  to any of the  Collateral,  and, in
connection therewith,  to deposit and deliver any and all of the Collateral with
any committee, depository, transfer agent, registrar or other designated

                                       5
<PAGE>

agent upon such terms and conditions as it may determine,  all without liability
except to account for property actually received by it; and

                (c)     Subject to any  requirement  of  applicable  law,  sell,
assign and deliver the whole or, from time to time,  any part of the  Collateral
at the time held by the Pledgee, at any private sale or at public auction,  with
or  without  demand,  advertisement  or  notice  of the time or place of sale or
adjournment  thereof or otherwise (all of which are hereby  waived,  except such
notice as is  required  by  applicable  law and cannot be  waived),  for cash or
credit or for other  property  for  immediate or future  delivery,  and for such
price or prices and on such  terms as the  Pledgee  in its sole  discretion  may
determine, or as may be required by applicable law.

                Each  Pledgor  hereby  waives and  releases any and all right or
equity of redemption,  whether before or after sale hereunder. At any such sale,
unless  prohibited by  applicable  law, the Pledgee may bid for and purchase the
whole or any part of the  Collateral  so sold free from any such right or equity
of redemption.  All moneys received by the Pledgee hereunder,  whether upon sale
of the Collateral or any part thereof or otherwise, shall be held by the Pledgee
and applied by it as  provided in Section 10 hereof.  No failure or delay on the
part of the Pledgee in exercising any rights hereunder shall operate as a waiver
of any such  rights nor shall any single or partial  exercise of any such rights
preclude  any other or future  exercise  thereof  or the  exercise  of any other
rights  hereunder.  The  Pledgee  shall  have no duty  as to the  collection  or
protection  of  the  Collateral  or  any  income  thereon  nor  any  duty  as to
preservation  of any  rights  pertaining  thereto,  except to apply the funds in
accordance with the requirements of Section 10 hereof.  The Pledgee may exercise
its rights  with  respect to property  held  hereunder  without  resort to other
security for or sources of reimbursement for the Obligations. In addition to the
foregoing,  Pledgee shall have all of the rights,  remedies and  privileges of a
secured  party  under  the  Uniform  Commercial  Code of New  York  (the  "UCC")
regardless of the jurisdiction in which enforcement hereof is sought.

        9.      PRIVATE SALE.  Each Pledgor  recognizes  that the Pledgee may be
unable to effect (or to do so only after delay which would adversely  affect the
value that might be realized  from the  Collateral) a public sale of all or part
of the Collateral by reason of certain prohibitions  contained in the Securities
Act, and may be compelled to resort to one or more private sales to a restricted
group of purchasers who will be obliged to agree, among other things, to acquire
such Collateral for their own account, for investment and not with a view to the
distribution or resale  thereof.  Each Pledgor agrees that any such private sale
may be at prices  and on terms  less  favorable  to the  seller  than if sold at
public sales and that such private  sales shall be deemed to have been made in a
commercially  reasonable  manner.  Each  Pledgor  agrees that the Pledgee has no
obligation to delay sale of any  Collateral  for the period of time necessary to
permit  the  Issuer  to  register  the  Collateral  for  public  sale  under the
Securities Act.

        10.     PROCEEDS  OF SALE.  The  proceeds of any  collection,  recovery,
receipt,  appropriation,  realization or sale of the Collateral shall be applied
by the Pledgee as follows:

                (a)     First, to the payment of all costs,  reasonable expenses
and charges of the Pledgee and to the reimbursement of the Pledgee for the prior
payment of such costs,  reasonable  expenses and charges  incurred in connection
with the care and safekeeping of the Collateral (including,  without limitation,
the reasonable expenses of any sale or any other disposition of any

                                       6
<PAGE>

of the Collateral),  attorneys' fees and reasonable  expenses,  court costs, any
other fees or expenses  incurred or  expenditures or advances made by Pledgee in
the  protection,  enforcement  or  exercise  of its  rights,  powers or remedies
hereunder;

                (b)     Second,  to the payment of the Obligations,  in whole or
in part, in such order as the Pledgee may elect, whether or not such Obligations
are then due;

                (c)     Third,  to such persons,  firms,  corporations  or other
entities as required by applicable law including,  without  limitation,  Section
9-615(a)(3) of the UCC; and

                (d)     Fourth,  to the extent of any surplus to the Pledgors or
as a court of competent jurisdiction may direct.

                In the event  that the  proceeds  of any  collection,  recovery,
receipt,  appropriation,  realization  or sale are  insufficient  to satisfy the
Obligations,  each  Pledgor  shall  be  jointly  and  severally  liable  for the
deficiency  plus the costs and fees of any  attorneys  employed  by  Pledgee  to
collect such deficiency.

        11.     WAIVER OF  MARSHALING.  Each Pledgor  hereby waives any right to
compel any marshaling of any of the Collateral.

        12.     NO WAIVER.  Any and all of the Pledgee's  rights with respect to
the Liens granted under this Agreement  shall continue  unimpaired,  and Pledgor
shall  be  and  remain   obligated  in   accordance   with  the  terms   hereof,
notwithstanding (a) the bankruptcy, insolvency or reorganization of any Pledgor,
(b) the release or substitution of any item of the Collateral at any time, or of
any rights or interests therein,  or (c) any delay,  extension of time, renewal,
compromise or other indulgence granted by the Pledgee in reference to any of the
Obligations. Each Pledgor hereby waives all notice of any such delay, extension,
release,  substitution,  renewal,  compromise  or other  indulgence,  and hereby
consents  to be bound  hereby as fully and  effectively  as if such  Pledgor had
expressly  agreed  thereto  in  advance.  No delay or  extension  of time by the
Pledgee  in  exercising  any  power of sale,  option  or other  right or  remedy
hereunder,  and no failure by the Pledgee to give notice or make  demand,  shall
constitute a waiver thereof,  or limit,  impair or prejudice the Pledgee's right
to take any action  against any Pledgor or to exercise  any other power of sale,
option or any other right or remedy.

        13.     EXPENSES.  The Collateral  shall secure,  and each Pledgor shall
pay to Pledgee on demand,  from time to time, all reasonable costs and expenses,
(including but not limited to, reasonable  attorneys' fees and costs, taxes, and
all transfer,  recording,  filing and other  charges) of, or incidental  to, the
custody,  care,  transfer,   administration  of  the  Collateral  or  any  other
collateral,   or  in  any  way  relating  to  the  enforcement,   protection  or
preservation  of the rights or remedies of the Pledgee  under this  Agreement or
with respect to any of the Obligations.

        14.     THE PLEDGEE  APPOINTED  ATTORNEY-IN-FACT  AND PERFORMANCE BY THE
PLEDGEE.  Upon the  occurrence  of an  Event of  Default,  each  Pledgor  hereby
irrevocably  constitutes  and  appoints the Pledgee as such  Pledgor's  true and
lawful   attorney-in-fact,   with  full  power  of  substitution,   to  execute,
acknowledge and deliver any instruments and to do in such Pledgor's name,  place
and stead, all such acts,  things and deeds for and on behalf of and in the name
of such Pledgor, which

                                       7
<PAGE>

such  Pledgor  could  or  might  do or which  the  Pledgee  may deem  necessary,
desirable or convenient to accomplish the purposes of this Agreement, including,
without  limitation,  to execute such  instruments  of assignment or transfer or
orders and to register,  convey or otherwise  transfer  title to the  Collateral
into the Pledgee's name. Each Pledgor hereby ratifies and confirms all that said
attorney-in-fact  may so do and hereby  declares  this power of  attorney  to be
coupled with an interest and  irrevocable.  If any Pledgor  fails to perform any
agreement herein contained,  the Pledgee may itself perform or cause performance
thereof,  and any costs and  expenses  of the  Pledgee  incurred  in  connection
therewith shall be paid by the Pledgors as provided in Section 10 hereof.

        15.     WAIVERS.  THE  PARTIES  HERETO  DESIRE  THAT THEIR  DISPUTES  BE
RESOLVED BY A JUDGE APPLYING SUCH  APPLICABLE  LAWS.  THEREFORE,  TO ACHIEVE THE
BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION,  THE
PARTIES  HERETO  WAIVE  ALL  RIGHTS  TO TRIAL BY JURY IN ANY  ACTION,  SUIT,  OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR
OTHERWISE  BETWEEN LAURUS,  AND/OR ANY COMPANY  ARISING OUT OF,  CONNECTED WITH,
RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION
WITH THIS AGREEMENT,  ANY OTHER DOCUMENT OR THE  TRANSACTIONS  RELATED HERETO OR
THERETO.

        16.     RECAPTURE.  Notwithstanding  anything  to the  contrary  in this
Agreement,  if the  Pledgee  receives  any payment or payments on account of the
Obligations,  which  payment or  payments or any part  thereof are  subsequently
invalidated,  declared  to be  fraudulent  or  preferential,  set  aside  and/or
required  to be repaid to a  trustee,  receiver,  or any other  party  under the
United  States  Bankruptcy  Code,  as  amended,  or any other  federal  or state
bankruptcy,  reorganization,   moratorium  or  insolvency  law  relating  to  or
affecting  the  enforcement  of  creditors'  rights  generally,  common  law  or
equitable  doctrine,  then to the extent of any sum not finally  retained by the
Pledgee,  each Pledgor's obligations to the Pledgee shall be reinstated and this
Agreement shall remain in full force and effect (or be reinstated) until payment
shall have been made to Pledgee, which payment shall be due on demand.

        17.     CAPTIONS. All captions in this Agreement are included herein for
convenience of reference  only and shall not  constitute  part of this Agreement
for any other purpose.

        18.     MISCELLANEOUS.

                (a)     This   Agreement   constitutes   the  entire  and  final
agreement  among the parties with respect to the subject  matter  hereof and may
not be changed, terminated or otherwise varied except by a writing duly executed
by the parties hereto.

                (b)     No waiver of any term or  condition  of this  Agreement,
whether by delay,  omission or otherwise,  shall be effective  unless in writing
and signed by the party  sought to be  charged,  and then such  waiver  shall be
effective only in the specific instance and for the purpose for which given.

                                       8
<PAGE>

                (c)     In the event that any provision of this Agreement or the
application  thereof to any  Pledgor  or any  circumstance  in any  jurisdiction
governing this Agreement shall, to any extent, be invalid or unenforceable under
any applicable  statute,  regulation,  or rule of law, such  provision  shall be
deemed  inoperative  to the extent that it may conflict  therewith  and shall be
deemed  modified to conform to such statute,  regulation or rule of law, and the
remainder  of  this  Agreement  and  the  application  of any  such  invalid  or
unenforceable provision to parties,  jurisdictions,  or circumstances other than
to whom or to which it is held  invalid or  unenforceable  shall not be affected
thereby,  nor shall same  affect the  validity  or  enforceability  of any other
provision of this Agreement.

                (d)     This Agreement  shall be binding upon each Pledgor,  and
each  Pledgor's  successors  and assigns,  and shall inure to the benefit of the
Pledgee and its successors and assigns.

                (e)     Any notice or other communication  required or permitted
pursuant  to this  Agreement  shall  be given in  accordance  with the  Security
Agreement.

                (f)     THIS AGREEMENT AND THE OTHER DOCUMENTS SHALL BE GOVERNED
BY AND CONSTRUED  AND ENFORCED IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

                (g)     EACH PLEDGOR  HEREBY  CONSENTS AND AGREES THAT THE STATE
OR FEDERAL  COURTS  LOCATED  IN THE COUNTY OF NEW YORK,  STATE OF NEW YORK SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
ANY PLEDGOR, ON THE ONE HAND, AND THE PLEDGEE, ON THE OTHER HAND,  PERTAINING TO
THIS AGREEMENT OR ANY OF THE OTHER  DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR
RELATED TO THIS  AGREEMENT OR ANY OF THE OTHER  DOCUMENTS,  PROVIDED,  THAT EACH
PLEDGOR  ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY
A COURT  LOCATED  OUTSIDE  OF THE  COUNTY  OF NEW YORK,  STATE OF NEW YORK;  AND
FURTHER  PROVIDED,  THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO
PRECLUDE  THE PLEDGEE  FROM  BRINGING  SUIT OR TAKING  OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION TO COLLECT THE INDEBTEDNESS,  TO REALIZE ON THE COLLATERAL OR
ANY OTHER SECURITY FOR THE INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT
ORDER IN FAVOR OF THE PLEDGEE.  EACH PLEDGOR  EXPRESSLY  SUBMITS AND CONSENTS IN
ADVANCE TO SUCH  JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND EACH PLEDGOR  HEREBY WAIVES ANY OBJECTION  WHICH IT MAY HAVE BASED UPON LACK
OF PERSONAL JURISDICTION,  IMPROPER VENUE OR FORUM NON CONVENIENS.  EACH PLEDGOR
HEREBY  WAIVES  PERSONAL  SERVICE OF THE SUMMONS,  COMPLAINT  AND OTHER  PROCESS
ISSUED IN ANY SUCH  ACTION OR SUIT AND  AGREES  THAT  SERVICE  OF SUCH  SUMMONS,
COMPLAINT  AND  OTHER  PROCESS  MAY BE  MADE BY  REGISTERED  OR  CERTIFIED  MAIL
ADDRESSED TO SUCH PLEDGOR AT THE ADDRESS SET FORTH IN THE THE SECURITY AGREEMENT

                                       9
<PAGE>

AND THAT SERVICE SO MADE SHALL BE DEEMED  COMPLETED UPON THE EARLIER OF THE SUCH
PLEDGOR'S  ACTUAL  RECEIPT  THEREOF OR THREE (3) DAYS AFTER  DEPOSIT IN THE U.S.
MAILS, PROPER POSTAGE PREPAID.

                (h)     It is  understood  and agreed  that any person or entity
that  desires  to  become a  Pledgor  hereunder,  or is  required  to  execute a
counterpart of this Agreement after the date hereof pursuant to the requirements
of any  Document,  shall become a Pledgor  hereunder by (x)  executing a Joinder
Agreement in form and  substance  satisfactory  to the Pledgee,  (y)  delivering
supplements  to such exhibits and annexes to such Documents as the Pledgee shall
reasonably request and/or set forth in such joinder agreement and (z) taking all
actions as specified in this  Agreement as would have been taken by such Pledgor
had it been an original party to this Agreement, in each case with all documents
required above to be delivered to the Pledgee and with all documents and actions
required above to be taken to the reasonable  satisfaction  of the Pledgee.

                (i)     This   Agreement   may  be   executed  in  one  or  more
counterparts,  each of which shall be deemed an  original  and all of which when
taken  together  shall  constitute  one and the same  agreement.  Any  signature
delivered  by a party by  facsimile  transmission  shall be deemed  an  original
signature hereto.

                  [Remainder of Page Intentionally Left Blank]

                                       10
<PAGE>

        IN WITNESS WHEREOF,  the parties have duly executed this Agreement as of
the day and year first written above.

                                        INCENTRA SOLUTIONS, INC.

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

                                        MANAGEDSTORAGE INTERNATIONAL, INC.

                                        By:  /s/ Thomas P. Sweeney, III
                                            ------------------------------------
                                        Name:  Thomas P. Sweeney, III
                                        Title: Chairman and CEO

                                        LAURUS MASTER FUND, LTD.

                                        By:  /s/ David Grin
                                            ------------------------------------
                                        Name:  David Grin
                                        Title: Managing Partner

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]