Document:

EXHIBIT 10.2

THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF THIS NOTE HAVE NOT
BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED,  OR ANY STATE
SECURITIES  LAWS.  THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF
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 Nine  Million  Dollars  ($9,000,000),  less any amounts  owing by the
Companies  to the Holder  under the Minimum  Borrowing  Notes (as defined in the
Security Agreement referred to below), or, if different, the aggregate principal
amount of all Loans (as defined in the  Security  Agreement  referred to below),
less  any  amounts  owing by the  Companies  to the  Holder  under  the  Minimum
Borrowing  Notes  (as  defined  in the  Security  Agreement  referred  to below)
together  with any accrued  and unpaid  interest  hereon,  on June 30, 2008 (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 AND MINIMUM BORROWING NOTE

                  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. Subject to Section 1.2,
the  Contract  Rate  shall not at

<PAGE>

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
August 1, 2005 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.

                  1.2 CONTRACT RATE ADJUSTMENTS AND PAYMENTS.  The Contract Rate
shall be calculated on the last  business day of each calendar  month  hereafter
(other  than for  increases  or  decreases  in the  Prime  Rate  which  shall be
calculated  and become  effective in  accordance  with the terms of Section 1.1)
until the Maturity  Date (each a  "DETERMINATION  DATE") and shall be subject to
adjustment  as set forth  herein.  If (i) the Parent shall have  registered  the
shares of the Common Stock  underlying the conversion of each Minimum  Borrowing
Note and each  Warrant on a  registration  statement  declared  effective by the
Securities and Exchange  Commission (the "SEC"),  and (ii) the market price (the
"MARKET  PRICE") of the Common  Stock as  reported  by  Bloomberg,  L.P.  on the
Principal  Market  for  the  five  (5)  trading  days  immediately  preceding  a
Determination  Date exceeds the then  applicable  Fixed  Conversion  Price by at
least twenty-five  percent (25%), the Contract Rate for the succeeding  calendar
month  shall  automatically  be reduced by 200 basis  points (200 b.p.) (2%) for
each incremental  twenty-five  percent (25%) increase in the Market Price of the
Common Stock above the then applicable Fixed Conversion Price. If (i) the Parent
shall  not have  registered  the  shares  of the  Common  Stock  underlying  the
conversion  of each Minimum  Borrowing  Note and each Warrant on a  registration
statement declared  effective by the SEC and which remains  effective,  and (ii)
the Market  Price of the Common  Stock as  reported  by  Bloomberg,  L.P. on the
principal  market  for  the  five  (5)  trading  days  immediately  preceding  a
Determination  Date exceeds the then  applicable  Fixed  Conversion  Price by at
least twenty-five  percent (25%), the Contract Rate for the succeeding  calendar
month shall  automatically  be decreased by 100 basis points (100 b.p.) (1%) for
each incremental  twenty-five  percent (25%) increase in the Market Price of the
Common Stock above the then applicable Fixed Conversion  Price.  Notwithstanding
the foregoing (and anything to the contrary contained herein), in no event shall
the Contract Rate at any time be less than zero percent (0%).

                  1.3  ALLOCATION  OF  PRINCIPAL  TO  MINIMUM   BORROWING  NOTE.
Notwithstanding  anything  herein to the contrary,  whenever during the Term the
outstanding balance on the Minimum Borrowing Note shall be less than the Minimum
Borrowing  Amount  (such amount  being  referred to herein as the  "TRANSFERABLE
AMOUNT") to the extent that the outstanding balance on the Revolving Note should
equal or exceed  $1,000,000,  that portion of the balance of the Revolving  Note
that exceeds $1,000,000,  but does not exceed the Transferable  Amount, shall be
segregated from the  outstanding  balance under the Revolving Note and allocated
to and aggregated with the then existing balance of the next unissued serialized
Minimum  Borrowing Note (the  "UNISSUED  SERIALIZED  NOTE");  provided that such
segregated  balance  shall remain  subject to the terms and  conditions  of such
Revolving  Note until a new serialized  Minimum  Borrowing Note is issued as set
forth below.  The next Unissued  Serialized Note shall remain in book entry form
until the balance  thereunder shall equal the Minimum Borrowing Amount, at which
time a new  serialized  Minimum  Borrowing  Note in the face amount equal to the
Minimum  Borrowing  Amount  will be issued  and  registered  as set forth in the
Registration  Rights Agreement (and the outstanding  balance under the Revolving
Note shall at such time be  correspondingly  reduced in the amount  equal to the
Minimum  Borrowing  Amount as a result of the  issuance  of such new  serialized
Minimum Borrowing Note).

                                       2
<PAGE>

                                   ARTICLE II
                  CONVERSION RIGHTS AND FIXED CONVERSION PRICE

                  2.1 OPTIONAL CONVERSION.  Subject to the terms of this Article
II, the Holder shall have the right,  but not the obligation,  at any time until
the Maturity  Date,  or during an Event of Default (as defined in Article  III),
and, subject to the limitations set forth in Section 2.2 hereof,  to convert all
or any portion of the outstanding  Principal  Amount and/or accrued interest and
fees due and payable into fully paid and nonassessable  restricted shares of the
Common Stock at the Fixed Conversion Price (defined below). For purposes hereof,
subject to Section 2.6 hereof, the initial "FIXED CONVERSION PRICE" with respect
to the first Three  Million  Dollars  ($3,000,000)  aggregate  principal  amount
converted  hereunder  means $2.56;  and with  respect to the next Three  Million
Dollars  ($3,000,000)  aggregate  principal  amount  converted  hereunder,   and
thereafter  $2.99.  The shares of Common Stock to be issued upon such conversion
are herein referred to as the "CONVERSION SHARES."

                  2.2 CONVERSION LIMITATION.  Notwithstanding anything contained
herein to the contrary,  the Holder shall not be entitled to convert pursuant to
the terms of this Note an amount that would be  convertible  into that number of
Conversion  Shares  which would exceed the  difference  between (i) 4.99% of the
issued and  outstanding  shares of Common Stock and (ii) the number of shares of
Common Stock  beneficially  owned by the Holder. For purposes of the immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section  13(d)  of  the  Exchange  Act  and  Regulation  13d-3  thereunder.  The
Conversion Shares limitation  described in this Section 2.2 shall  automatically
become null and void  following  notice to any Company upon the  occurrence  and
during the  continuance of an Event of Default,  or upon 75 days prior notice to
the Parent.  Notwithstanding  anything  contained  herein to the  contrary,  the
provisions  of this  Section  2.2 are  irrevocable  and may not be waived by the
Holder or any Company.

                  2.3  MECHANICS OF HOLDER'S  CONVERSION.  In the event that the
Holder  elects to convert  this Note into Common  Stock,  the Holder  shall give
notice of such  election by  delivering  an  executed  and  completed  notice of
conversion  in  substantially  the  form  of  Exhibit  B  hereto  (appropriately
completed)  ("NOTICE OF CONVERSION") to the Parent and such Notice of Conversion
shall provide a breakdown in reasonable detail of the Principal Amount,  accrued
interest  and  fees  that  are  being  converted.  On each  Conversion  Date (as
hereinafter defined) and in accordance with its Notice of Conversion, the Holder
shall make the appropriate  reduction to the Principal Amount,  accrued interest
and fees as entered in its records and shall provide  written  notice thereof to
the Parent within two (2) Business Days after the Conversion  Date. Each date on
which a Notice  of  Conversion  is  delivered  or  telecopied  to the  Parent in
accordance  with the  provisions  hereof shall be deemed a Conversion  Date (the
"CONVERSION  DATE").  Pursuant  to the terms of the  Notice of  Conversion,  the
Parent will issue  instructions to the transfer agent  accompanied by an opinion
of counsel within two (2) Business Day of the date of the delivery to the Parent
of the Notice of Conversion  and shall cause the transfer  agent to transmit the
certificates  representing the Conversion  Shares to the Holder by crediting the
account of the Holder's  designated broker with the Depository Trust Corporation
("DTC") through its Deposit  Withdrawal Agent Commission  ("DWAC") system within
three (3) Business  Days after receipt by the Parent of the Notice of Conversion
(the "DELIVERY  DATE"). In the case of the exercise of

                                       3
<PAGE>

the conversion rights set forth herein the conversion  privilege shall be deemed
to have been exercised and the Conversion  Shares  issuable upon such conversion
shall be deemed to have been  issued  upon the date of  receipt by the Parent of
the Notice of  Conversion.  The Holder  shall be treated for all purposes as the
record holder of the Conversion  Shares,  unless the Holder  provides the Parent
written  instructions  to  the  contrary.

                  2.4 LATE PAYMENTS.  Each Company  understands  that a delay in
the  delivery of the  Conversion  Shares in the form  required  pursuant to this
Article beyond the Delivery Date could result in economic loss to the Holder. As
compensation  to the Holder for such loss,  in addition to all other  rights and
remedies which the Holder may have under this Note, applicable law or otherwise,
the Companies shall, jointly and severally,  pay late payments to the Holder for
any late  issuance of Conversion  Shares in the form  required  pursuant to this
Article  II upon  conversion  of this  Note,  in the  amount  equal  to $150 per
Business  Day  after  the  Delivery  Date.  The  Companies  shall,  jointly  and
severally,  make  any  payments  incurred  under  this  Section  in  immediately
available funds upon demand.

                  2.5 CONVERSION MECHANICS. The number of shares of Common Stock
to be issued upon each  conversion  of this Note shall be determined by dividing
that portion of the principal and interest and fees to be converted,  if any, by
the then applicable Fixed Conversion Price.

                  2.6  ADJUSTMENT  PROVISIONS.  The Fixed  Conversion  Price and
number  and kind of shares or other  securities  to be  issued  upon  conversion
determined  pursuant to Section 2.1 shall be subject to adjustment  from time to
time  upon the  occurrence  of  certain  events  during  the  period  that  this
conversion right remains outstanding, as follows:

                           (a)  RECLASSIFICATION.  If the  Parent  at  any  time
shall, by reclassification  or otherwise,  change the Common Stock into the same
or a different  number of securities  of any class or classes,  this Note, as to
the unpaid Principal Amount and accrued  interest  thereon,  shall thereafter be
deemed to evidence the right to purchase an adjusted  number of such  securities
and kind of  securities as would have been issuable as the result of such change
with respect to the Common Stock (i)  immediately  prior to or (ii)  immediately
after, such reclassification or other change at the sole election of the Holder.

                           (b) STOCK SPLITS,  COMBINATIONS AND DIVIDENDS. If the
shares of Common  Stock are  subdivided  or  combined  into a greater or smaller
number of shares of Common  Stock,  or if a dividend is paid on the Common Stock
or any preferred stock issued by the Parent in shares of Common Stock, the Fixed
Conversion  Price shall be  proportionately  reduced in case of  subdivision  of
shares or stock dividend or proportionately increased in the case of combination
of shares,  in each such case by the ratio  which the total  number of shares of
Common Stock outstanding  immediately after such event bears to the total number
of shares of Common Stock outstanding immediately prior to such event.

                           (c) SHARE  ISSUANCES.  Subject to the  provisions  of
this  Section 2.6, if the Parent  shall at any time prior to the  conversion  or
repayment  in full of the  Principal  Amount issue any shares of Common Stock or
securities  convertible  into  Common  Stock to a Person  other  than the Holder
(except (i) pursuant to Sections 2.6(a) or (b) above;  (ii) pursuant to options,

                                       4
<PAGE>

warrants, or other obligations to issue shares outstanding on the date hereof as
disclosed  to the Holder in writing;  or (iii)  pursuant to options  that may be
issued under any employee  incentive  stock option  and/or any  qualified  stock
option plan  adopted by the Parent)  for a  consideration  per share (the "OFFER
PRICE")  less  than the  Fixed  Conversion  Price in  effect at the time of such
issuance,  then the Fixed  Conversion  Price shall be immediately  reset to such
lower Offer  Price.  For  purposes  hereof,  the issuance of any security of the
Parent  convertible  into or exercisable or exchangeable  for Common Stock shall
result in an adjustment to the Fixed  Conversion Price upon the issuance of such
securities.

                           (d) COMPUTATION OF CONSIDERATION. For purposes of any
computation respecting  consideration received pursuant to Section 2.6(c) above,
the following shall apply:

                                    (i) in the case of the issuance of shares of
         Common Stock for cash,  the  consideration  shall be the amount of such
         cash,  provided  that in no case  shall any  deduction  be made for any
         commissions, discounts or other expenses incurred by the Parent for any
         underwriting of the issue or otherwise in connection therewith;

                                    (ii) in the case of the  issuance  of shares
         of Common  Stock for a  consideration  in whole or in part  other  than
         cash, the consideration  other than cash shall be deemed to be the fair
         market  value  thereof  as  determined  in good  faith by the  Board of
         Directors  of the  Parent  (irrespective  of the  accounting  treatment
         thereof); and

                                    (iii) upon any such exercise,  the aggregate
         consideration  received for such  securities  shall be deemed to be the
         consideration   received  by  the  Parent  for  the  issuance  of  such
         securities  plus the additional  minimum  consideration,  if any, to be
         received by the Parent upon the  conversion  or exchange  thereof  (the
         consideration  in each  case to be  determined  in the same  manner  as
         provided in subsections (i) and (ii) of this Section 2.6(d)).

                  2.7  RESERVATION  OF SHARES.  During the period the conversion
right exists,  the Parent will reserve from its authorized  and unissued  Common
Stock a sufficient  number of shares to provide for the  issuance of  Conversion
Shares  upon the  full  conversion  of this  Note and the  Warrant.  The  Parent
represents  that upon issuance,  the Conversion  Shares will be duly and validly
issued,  fully paid and  non-assessable.  The Parent agrees that its issuance of
this Note shall constitute full authority to its officers,  agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary  certificates for the Conversion  Shares upon
the conversion of this Note.

                                  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.

                                       5
<PAGE>

                  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  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 CONVERSION PRIVILEGES. The conversion privileges set forth
in Article II shall  remain in full force and effect  immediately  from the date
hereof  until the date this Note is  indefeasibly  paid in full and  irrevocably
terminated.

                  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) 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,

                                       6
<PAGE>

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.  A
Notice of Conversion  shall be deemed given when made to the Parent  pursuant to
the Purchase Agreement.

                  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 not
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  AGREEMENTSPROVIDED,  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 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

                                       7
<PAGE>

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.

                  4.12  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]

                                       8
<PAGE>

                  IN WITNESS  WHEREOF,  each  Company  has caused  this  Secured
Revolving  Note to be signed in its name  effective  as of this 30th day of June
2005.

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

                                       By: /s/ Matthew Richman
                                           -------------------------------------
                                           Name: Matthew Richman
                                           Title: Sr. Vice President & Treasurer

WITNESS:

/s/ Mindy Boatright
------------------------------

                                       PWI TECHNOLOGIES, INC.

                                       By: /s/ Matthew Richman
                                           -------------------------------------
                                           Name: Matthew Richman
                                           Title: Secretary & Treasurer

WITNESS:

/s/ Mindy Boatright
------------------------------

                                       STAR SOLUTIONS OF DELAWARE, INC.

                                       By: /s/ Matthew Richman
                                           -------------------------------------
                                           Name: Matthew Richman
                                           Title: Secretary & Treasurer

WITNESS:

/s/ Mindy Boatright
------------------------------

                                       9
<PAGE>

                                    EXHIBIT A

                                 OTHER COMPANIES

PWI Technologies, Inc., a Washington corporation

Star Solutions of Delaware, Inc., a Delaware corporation

<PAGE>

                                    EXHIBIT B

                              NOTICE OF CONVERSION

  (To be executed by the Holder in order to convert the Secured Revolving Note)

                  The  undersigned  hereby  elects to convert  $_________ of the
principal and $_________ of the interest due on the Secured Revolving Note dated
as of _________ __, 200__ (the "NOTE")  issued by Incentra  Solutions,  Inc.(the
"PARENT") and the other  Companies  named and as defined  therein into shares of
Common Stock of the Parent ("Shares) in accordance with the terms and conditions
set forth in the Note, as of the date written below.

Date of Conversion:        _____________________________________________________

Conversion Price:          _____________________________________________________

Shares To Be Delivered:    _____________________________________________________

Signature:                 _____________________________________________________

Print Name:                _____________________________________________________

Address:                   _____________________________________________________

Holder DWAC instructions   _____________________________________________________EXHIBIT 10.3

THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF THIS NOTE HAVE NOT
BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED,  OR ANY STATE
SECURITIES  LAWS.  THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF
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 CONVERTIBLE MINIMUM BORROWING NOTE

                  FOR VALUE RECEIVED,  each of INCENTRA  SOLUTIONS,  INC. (f/k/a
Front Porch Digital,  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 Three Million Dollars
($3,000,000),  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 June 30, 2008 (the "MATURITY DATE") if not sooner
paid.

                  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 Minimum Borrowing Note
(this "NOTE"):

                                   ARTICLE I
                                  CONTRACT RATE

                  1.1 CONTRACT RATE. Subject to Sections 4.2 and 5.10,  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. Subject to Section 1.2,
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 August 1, 2005 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>

                  1.2 CONTRACT RATE ADJUSTMENTS AND PAYMENTS.  The Contract Rate
shall be calculated on the last  business day of each calendar  month  hereafter
(other  than for  increases  or  decreases  in the  Prime  Rate  which  shall be
calculated  and become  effective in  accordance  with the terms of Section 1.1)
until the Maturity  Date (each a  "DETERMINATION  DATE") and shall be subject to
adjustment  as set forth  herein.  If (i) the Parent shall have  registered  the
shares of the Common Stock  underlying the conversion of each Minimum  Borrowing
Note and each  Warrant on a  registration  statement  declared  effective by the
Securities and Exchange  Commission (the "SEC"),  and (ii) the market price (the
"MARKET  PRICE") of the Common  Stock as  reported  by  Bloomberg,  L.P.  on the
Principal  Market  for  the  five  (5)  trading  days  immediately  preceding  a
Determination  Date exceeds the then  applicable  Fixed  Conversion  Price by at
least twenty-five  percent (25%), the Contract Rate for the succeeding  calendar
month  shall  automatically  be reduced by 200 basis  points (200 b.p.) (2%) for
each incremental  twenty-five  percent (25%) increase in the Market Price of the
Common Stock above the then applicable Fixed Conversion Price. If (i) the Parent
shall  not have  registered  the  shares  of the  Common  Stock  underlying  the
conversion  of each Minimum  Borrowing  Note and each Warrant on a  registration
statement declared  effective by the SEC and which remains  effective,  and (ii)
the Market  Price of the Common  Stock as  reported  by  Bloomberg,  L.P. on the
principal  market  for  the  five  (5)  trading  days  immediately  preceding  a
Determination  Date exceeds the then  applicable  Fixed  Conversion  Price by at
least twenty-five  percent (25%), the Contract Rate for the succeeding  calendar
month shall  automatically  be decreased by 100 basis points (100 b.p.) (1%) for
each incremental  twenty-five  percent (25%) increase in the Market Price of the
Common Stock above the then applicable Fixed Conversion  Price.  Notwithstanding
the foregoing (and anything to the contrary contained herein), in no event shall
the Contract Rate at any time be less than zero percent (0%).

                                   ARTICLE II
                         LOANS; PAYMENTS UNDER THIS NOTE

                  2.1 LOANS.  All Loans  evidenced by this Note shall be made in
accordance with the terms and provisions of the Security Agreement.

                  2.2 NO EFFECTIVE REGISTRATION. Notwithstanding anything to the
contrary  herein,  the Holder  shall not be required to accept  shares of Common
Stock as payment following a conversion by the Holder if there fails to exist an
effective current Registration  Statement (as defined in the Registration Rights
Agreement)  covering the shares of Common Stock to be issued,  or if an Event of
Default hereunder exists and is continuing, unless such requirement is otherwise
waived in writing by the Holder in whole or in part at the Holder's option.

                  2.3 OPTIONAL  REDEMPTION IN CASH.  The Companies will have the
option of prepaying this Note ("OPTIONAL  REDEMPTION") by paying to the Holder a
sum of money equal to one hundred  twenty five percent  (125%) of the  principal
amount of this Note  together with accrued but unpaid  interest  thereon and any
and all other sums due,  accrued or  payable  to the Holder  arising  under this
Note, the Security Agreement,  or any other Ancillary Agreement (the "REDEMPTION
AMOUNT")  outstanding on the  Redemption  Payment Date (as defined  below).  The
Company shall deliver to the Holder a written notice of redemption  (the "NOTICE
OF  REDEMPTION")   specifying  the  date  for  such  Optional   Redemption  (the
"REDEMPTION PAYMENT DATE"),  which date shall be ten (10) days after the date of
the Notice of Redemption (the "REDEMPTION PERIOD"). A Notice of Redemption shall
not be  effective  with respect to any

                                       2
<PAGE>

portion of this Note for which the Holder has  previously  delivered a Notice of
Conversion  (defined below) pursuant to Section 3.1, or for conversions  elected
to be made by the Holder  pursuant to Section 3.1 during the Redemption  Period.
The  Redemption  Amount  shall  be  determined  as if such  Holder's  conversion
elections  had been  completed  immediately  prior to the date of the  Notice of
Redemption.  On the Redemption  Payment Date,  the  Redemption  Amount (plus any
additional interest and fees accruing on the Notes during the Redemption Period)
must be irrevocably  paid in full in immediately  available funds to the Holder.
In the event the Companies fail to pay the  Redemption  Amount on the Redemption
Payment Date, then such Redemption Notice shall be null and void.

                                  ARTICLE III
                  CONVERSION RIGHTS AND FIXED CONVERSION PRICE

                  3.1 (a)  OPTIONAL  CONVERSION.  Subject  to the  terms of this
Article  III, the Holder shall have the right,  but not the  obligation,  at any
time  until the  Maturity  Date,  or during an Event of Default  (as  defined in
Article IV), and, subject to the limitations set forth in Section 3.2 hereof, to
convert all or any portion of the  outstanding  Principal  Amount and/or accrued
interest  and fees due and payable into fully paid and  nonassessable  shares of
the Common Stock at the Fixed Conversion Price. For purposes hereof,  subject to
Section 3.6 hereof,  the initial "FIXED  CONVERSION PRICE" means $2.05 which has
been  determined  on the date of this  Note as an  amount  equal to one  hundred
twenty percent  (120%) of the average  closing price of the Common Stock for the
ten (10)  trading  days  immediately  prior to the date of this Note;  but in no
event shall the initial Fixed  Conversion  Price exceed one hundred  twenty five
percent (125%) of the closing price of the Common Stock on the date hereof.  The
shares of Common Stock to be issued upon such  conversion are herein referred to
as the "CONVERSION SHARES."

                  3.1(b) CONVERSION  Priority.  Before any Conversion Shares are
issued pursuant hereto,  if the provisions  contained in Section 2.1 of the Term
Note dated as of May 13, 2004 issued by Company to the Holder, shall require the
Holder to make  conversions  as set forth  therein,  the Holder  shall  convert,
subject to all of the terms and conditions thereof,  such outstanding  principal
amount and/or accrued  interest and fees due and payable in connection  with the
Term Note (as defined in the Purchase Agreement).  Otherwise the Holder may make
conversions  under  this  Minimum  Borrowing  Note,  subject  to the  terms  and
conditions    otherwise    contained   herein.

                  3.2 CONVERSION LIMITATION.  Notwithstanding anything contained
herein to the contrary,  the Holder shall not be entitled to convert pursuant to
the terms of this Note an amount that would be  convertible  into that number of
Conversion  Shares  which would exceed the  difference  between (i) 4.99% of the
issued and  outstanding  shares of Common Stock and (ii) the number of shares of
Common Stock  beneficially  owned by the Holder. For purposes of the immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section  13(d)  of  the  Exchange  Act  and  Regulation  13d-3  thereunder.  The
Conversion Shares limitation  described in this Section 3.2 shall  automatically
become null and void  following  notice to any Company upon the  occurrence  and
during the  continuance of an Event of Default,  or upon 75 days prior notice to
the Parent.  Notwithstanding  anything  contained  herein to the  contrary,  the
provisions  of this  Section  3.2 are  irrevocable  and may not be waived by the
Holder or any Company.

                                       3
<PAGE>

                  3.3  MECHANICS OF HOLDER'S  CONVERSION.  In the event that the
Holder  elects to convert  this Note into Common  Stock,  the Holder  shall give
notice of such  election by  delivering  an  executed  and  completed  notice of
conversion  in  substantially  the  form  of  Exhibit  A  hereto  (appropriately
completed)  ("NOTICE OF CONVERSION") to the Parent and such Notice of Conversion
shall provide a breakdown in reasonable detail of the Principal Amount,  accrued
interest  and  fees  that  are  being  converted.  On each  Conversion  Date (as
hereinafter defined) and in accordance with its Notice of Conversion, the Holder
shall make the appropriate  reduction to the Principal Amount,  accrued interest
and fees as entered in its records and shall provide  written  notice thereof to
the Parent within two (2) Business Days after the Conversion  Date. Each date on
which a Notice  of  Conversion  is  delivered  or  telecopied  to the  Parent in
accordance  with the  provisions  hereof shall be deemed a Conversion  Date (the
"CONVERSION  DATE").  Pursuant  to the terms of the  Notice of  Conversion,  the
Parent will issue  instructions to the transfer agent  accompanied by an opinion
of counsel within two (2) Business Day of the date of the delivery to the Parent
of the Notice of Conversion  and shall cause the transfer  agent to transmit the
certificates  representing the Conversion  Shares to the Holder by crediting the
account of the Holder's  designated broker with the Depository Trust Corporation
("DTC") through its Deposit  Withdrawal Agent Commission  ("DWAC") system within
three (3) Business  Days after receipt by the Parent of the Notice of Conversion
(the "DELIVERY  DATE"). In the case of the exercise of the conversion rights set
forth herein the conversion privilege shall be deemed to have been exercised and
the Conversion Shares issuable upon such conversion shall be deemed to have been
issued upon the date of receipt by the Parent of the Notice of  Conversion.  The
Holder shall be treated for all purposes as the record holder of the  Conversion
Shares,  unless  the Holder  provides  the Parent  written  instructions  to the
contrary.

                  3.4 LATE PAYMENTS.  Each Company  understands  that a delay in
the  delivery of the  Conversion  Shares in the form  required  pursuant to this
Article beyond the Delivery Date could result in economic loss to the Holder. As
compensation  to the Holder for such loss,  in addition to all other  rights and
remedies which the Holder may have under this Note, applicable law or otherwise,
the Companies shall, jointly and severally,  pay late payments to the Holder for
any late  issuance of Conversion  Shares in the form  required  pursuant to this
Article  III upon  conversion  of this  Note,  in the  amount  equal to $150 per
Business  Day  after  the  Delivery  Date.  The  Companies  shall,  jointly  and
severally,  make  any  payments  incurred  under  this  Section  in  immediately
available funds upon demand.

                  3.5 CONVERSION MECHANICS. The number of shares of Common Stock
to be issued upon each  conversion  of this Note shall be determined by dividing
that portion of the principal and interest and fees to be converted,  if any, by
the then applicable Fixed Conversion Price.

                  3.6  ADJUSTMENT  PROVISIONS.  The Fixed  Conversion  Price and
number  and kind of shares or other  securities  to be  issued  upon  conversion
determined  pursuant to Section 3.1 shall be subject to adjustment  from time to
time  upon the  occurrence  of  certain  events  during  the  period  that  this
conversion right remains outstanding, as follows:

                           (a)  RECLASSIFICATION.  If the  Parent  at  any  time
shall, by reclassification  or otherwise,  change the Common Stock into the same
or a different  number of securities  of any class or classes,  this Note, as to
the unpaid Principal Amount and accrued  interest  thereon,  shall

                                       4
<PAGE>

thereafter  be deemed to evidence  the right to  purchase an adjusted  number of
such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock (i) immediately prior to or (ii)
immediately after such  reclassification or other change at the sole election of
the Holder.

                           (b) STOCK SPLITS,  COMBINATIONS AND DIVIDENDS. If the
shares of Common  Stock are  subdivided  or  combined  into a greater or smaller
number of shares of Common  Stock,  or if a dividend is paid on the Common Stock
or any preferred stock issued by the Parent in shares of Common Stock, the Fixed
Conversion  Price shall be  proportionately  reduced in case of  subdivision  of
shares or stock dividend or proportionately increased in the case of combination
of shares,  in each such case by the ratio  which the total  number of shares of
Common Stock outstanding  immediately after such event bears to the total number
of shares of Common Stock outstanding immediately prior to such event.

                           (c) SHARE  ISSUANCES.  Subject to the  provisions  of
this  Section 3.6, if the Parent  shall at any time prior to the  conversion  or
repayment  in full of the  Principal  Amount issue any shares of Common Stock or
securities  convertible  into  Common  Stock to a person  other  than the Holder
(except (i) pursuant to Sections 3.6(a) or (b) above;  (ii) pursuant to options,
warrants, or other obligations to issue shares outstanding on the date hereof as
disclosed  to the Holder in writing;  or (iii)  pursuant to options  that may be
issued under any employee  incentive  stock option  and/or any  qualified  stock
option plan  adopted by the Parent)  for a  consideration  per share (the "OFFER
PRICE")  less  than the  Fixed  Conversion  Price in  effect at the time of such
issuance,  then the Fixed  Conversion  Price shall be immediately  reset to such
lower Offer  Price.  For  purposes  hereof,  the issuance of any security of the
Parent  convertible  into or exercisable or exchangeable  for Common Stock shall
result in an adjustment to the Fixed  Conversion Price upon the issuance of such
securities.

                           (d) COMPUTATION OF CONSIDERATION. For purposes of any
computation respecting  consideration received pursuant to Section 3.6(c) above,
the following  shall apply:

                                    (i) in the case of the issuance of shares of
         Common Stock for cash,  the  consideration  shall be the amount of such
         cash,  provided  that in no case  shall any  deduction  be made for any
         commissions, discounts or other expenses incurred by the Parent for any
         underwriting of the issue or otherwise in connection therewith;

                                    (ii) in the case of the  issuance  of shares
         of Common  Stock for a  consideration  in whole or in part  other  than
         cash, the consideration  other than cash shall be deemed to be the fair
         market  value  thereof  as  determined  in good  faith by the  Board of
         Directors  of the  Parent  (irrespective  of the  accounting  treatment
         thereof); and

                                    (iii) upon any such exercise,  the aggregate
         consideration  received for such  securities  shall be deemed to be the
         consideration   received  by  the  Parent  for  the  issuance  of  such
         securities  plus the additional  minimum  consideration,  if any, to be
         received by the Parent upon the  conversion  or exchange  thereof  (the
         consideration  in each  case to be  determined  in the same  manner  as
         provided in subsections (i) and (ii) of this Section 2.5).

                                       5
<PAGE>

                  3.7  RESERVATION  OF SHARES.  During the period the conversion
right exists,  the Parent will reserve from its authorized  and unissued  Common
Stock a sufficient  number of shares to provide for the  issuance of  Conversion
Shares  upon the  full  conversion  of this  Note and the  warrant.  The  Parent
represents  that upon issuance,  the Conversion  Shares will be duly and validly
issued,  fully paid and  non-assessable.  The Parent agrees that its issuance of
this Note shall constitute full authority to its officers,  agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary  certificates for the Conversion  Shares upon
the conversion of this Note.

                  3.8   REGISTRATION   RIGHTS.   The  Holder  has  been  granted
registration  rights  with  respect to the  Conversion  Shares as set forth in a
Registration Rights Agreement.

                  3.9 ISSUANCE OF NEW NOTE. Upon any partial  conversion of this
Note, a new Note  containing the same date and provisions of this Note shall, at
the  request  of the  Holder,  be issued by the  Parent  to the  Holder  for the
principal  balance of this Note and interest which shall not have been converted
or paid.  Subject to the provisions of Article IV of this Note, the Parent shall
not pay any  costs,  fees  or any  other  consideration  to the  Holder  for the
production and issuance of a new Note.

                  3.10  SUBSEQUENT  MINIMUM  BORROWING  NOTE Pricing.  The fixed
conversion  price of each Unissued  Serialized  Note shall be set at one hundred
fifteen  percent (115%) of the average closing price of the Common Stock for the
ten (10)  trading  days  immediately  prior to the date of  issuance of such new
Serialized Minimum Borrowing Note.

                                   ARTICLE IV
                EVENTS OF DEFAULT AND DEFAULT RELATED PROVISIONS

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

                  4.2 DEFAULT INTEREST.  Following the occurrence and during the
continuance of an Event of Default,  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.

                  4.3 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  elect,  in addition to all rights and remedies of the Holder under the
Security  Agreement and the Ancillary  Agreements  and all  obligations  of each
Company under the Security  Agreement and the 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%)
or,  if  after  June  __,  2007,  one  hundred  fifteen  percent  (115%)  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

                                       6
<PAGE>

the Notes and/or the Ancillary  Agreements,  then to accrued and unpaid interest
due on the Notes, the Security  Agreement 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
4.3.

                                   ARTICLE V
                                  MISCELLANEOUS

                  5.1 CONVERSION PRIVILEGES. The conversion privileges set forth
in Article III shall remain in full force and effect  immediately  from the date
hereof  until the date this Note is  indefeasibly  paid in full and  irrevocably
terminated.

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

                  5.3 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.

                  5.4  NOTICES.  Any notice  herein  required or permitted to be
given  shall be in  writing  and shall be  deemed  effectively  given:  (a) upon
personal  delivery to the party  notified,  (b) 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  addresses  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 such 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.

                  5.5 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.

                  5.6  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.

                                       7
<PAGE>

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

                  5.8 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 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

                                       8
<PAGE>

CONNECTION WITH THIS NOTE, THE SECURITY AGREEMENT, ANY OTHER ANCILLARY AGREEMENT
OR THE TRANSACTIONS  RELATED HERETO OR THERETO.

                  5.9 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.

                  5.10  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.

                  5.11  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.

                  5.12  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]

                                       9
<PAGE>

                  IN WITNESS  WHEREOF,  each  Company  has caused  this  Secured
Convertible Minimum Borrowing Note to be signed in its name effective as of this
30th day of June 2005.

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

                                       By: /s/ Matthew Richman
                                           -------------------------------------
                                           Name: Matthew Richman
                                           Title: Sr. Vice President & Treasurer

WITNESS:

/s/ Mindy Boatright
------------------------------

                                       PWI TECHNOLOGIES, INC.

                                       By: /s/ Matthew Richman
                                           -------------------------------------
                                           Name: Matthew Richman
                                           Title: Secretary & Treasurer

WITNESS:

/s/ Mindy Boatright
------------------------------

                                       STAR SOLUTIONS OF DELAWARE, INC.

                                       By: /s/ Matthew Richman
                                           -------------------------------------
                                           Name: Matthew Richman
                                           Title: Secretary & Treasurer

WITNESS:

/s/ Mindy Boatright
------------------------------

                                       10
<PAGE>

                                    EXHIBIT A

                                 OTHER COMPANIES

PWI Technologies, Inc. a Washington corporation

Star Solutions of Delaware, Inc., a Delaware corporation

                                       11
<PAGE>

                                    EXHIBIT B

                              NOTICE OF CONVERSION

              (To be executed by the Holder in order to convert the
                   Secured Convertible Minimum Borrowing Note)

                  The  undersigned  hereby  elects to convert  $_________ of the
principal and $_________ of the interest due on the Secured  Convertible Minimum
Borrowing  Note dated as of  _________,  200__ (the  "NOTE")  issued by Incentra
Solutions,  Inc. (f/k/a Front Porch Digital,  Inc.) (the "PARENT") and the other
Companies named and as defined therein into shares of Common Stock of the Parent
in  accordance  with the terms and  conditions  set forth in the Note, as of the
date written below.

Date of Conversion:        _____________________________________________________

Conversion Price:          _____________________________________________________

Shares To Be Delivered:    _____________________________________________________

Signature:                 _____________________________________________________

Print Name:                _____________________________________________________

Address:                   _____________________________________________________

Holder DWAC instructions   _____________________________________________________

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]