Document:

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                                                                    Exhibit 10.7

            AMENDED AND RESTATED DIRECTOR INDEMNIFICATION AGREEMENT

     This Agreement is made as of the ___ day of __________, 2001, by and
between NaviSite, Inc., a Delaware corporation (the "Corporation"), and
________________ ("Indemnitee"), a director of the Corporation.

     WHEREAS, it is essential to the Corporation to retain and attract as
directors the most capable persons available; and

     WHEREAS, it is the express policy of the Corporation to indemnify its
directors so as to provide them with the maximum possible protection permitted
by law; and

     WHEREAS, Indemnitee does not regard the protection available under the
Corporation's Amended and Restated Certificate of Incorporation, insurance and
the Director Indemnification Agreement by and between the Corporation and
Indemnitee, dated as of _______________ (the "Original Agreement"), as adequate
in the present circumstances, and may not be willing to serve or remain as a
director without adequate protection; and

     WHEREAS, the Corporation desires Indemnitee to serve, or continue to serve,
as a director of the Corporation.

     NOW THEREFORE, the Corporation and Indemnitee do hereby agree as follows:

     1.   Agreement to Serve.  Indemnitee agrees to serve or continue to serve
          ------------------
as a director of the Corporation for so long as he is duly elected or appointed
or until such time as he tenders his resignation in writing.

     2.   Definitions.  As used in this Agreement:
          -----------

          (a)  The term "Proceeding" shall include any threatened, pending or
completed action, suit or proceeding, whether brought by or in the right of the
Corporation or otherwise and whether of a civil, criminal, administrative or
investigative nature, and any appeal therefrom.

          (b)  The term "Corporate Status" shall mean the status of a person who
is or was a director of the Corporation, or is or was serving, or has agreed to
serve, at the request of the Corporation, as a director, officer, partner,
trustee, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise.

          (c)  The term "Expenses" shall include, without limitation, attorneys'
fees, retainers, court costs, transcript costs, fees of experts, travel
expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees and other disbursements or expenses of the types
customarily incurred in connection with investigations, judicial or
administrative proceedings or appeals, but shall not include the

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amount of judgments, fines or penalties against Indemnitee or amounts paid in
settlement in connection with such matters.

          (d)  References to "other enterprise" shall include employee benefit
plans; references to "fines" shall include any excise tax assessed with respect
to any employee benefit plan; references to "serving at the request of the
Corporation" shall include any service as a director, officer, employee or agent
of the Corporation which imposes duties on, or involves services by, such
director, officer, employee or agent with respect to an employee benefit plan,
its participants or beneficiaries; and a person who acted in good faith and in a
manner he reasonably believed to be in the interests of the participants and
beneficiaries of an employee benefit plan shall be deemed to have acted in a
manner "not opposed to the best interests of the Corporation" as referred to in
this Agreement.

     3.   Indemnification in Third-Party Proceedings.  The Corporation shall
          ------------------------------------------
indemnify Indemnitee in accordance with the provisions of the Paragraph 3 if
Indemnitee was or is a party to or threatened to be made a party to or otherwise
involved in any Proceeding (other than a Proceeding by or in the right of the
Corporation to procure a judgment in its favor) by reason of Indemnitee's
Corporate Status or by reason of any action alleged to have been taken or
omitted in connection therewith, against all Expenses, judgments, fines,
penalties and amounts paid in settlement actually and reasonably incurred by
Indemnitee or on Indemnitee's behalf in connection with such Proceeding, if
Indemnitee acted in good faith and in a manner which Indemnitee reasonably
believed to be in, or not opposed to, the best interests of the Corporation and,
with respect to any criminal Proceeding, had no reasonable cause to believe that
Indemnitee's conduct was unlawful.  The termination of any Proceeding by
judgment, order, settlement, conviction or upon a plea of nolo contendere, or
                                                          ---- ----------
its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee reasonably believed to be
in, or not opposed to, the best interests of the Corporation and, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee's
conduct was unlawful.

     4.   Indemnification in Proceedings by or in the Right of the Corporation.
          --------------------------------------------------------------------
The Corporation shall indemnify Indemnitee in accordance with the provisions of
this Paragraph 4 if Indemnitee is a party to or threatened to be made a party to
or otherwise involved in any Proceeding by or in the right of the Corporation to
procure a judgment in its favor by reason of Indemnitee's Corporate Status or by
reason of any action alleged to have been taken or omitted in connection
therewith, against all Expenses and, to the extent permitted by law, judgment,
fines, penalties and amounts paid in settlement actually and reasonably incurred
by Indemnitee or on Indemnitee's behalf in connection with such Proceeding, if
Indemnitee acted in good faith and in a manner which Indemnitee reasonably
believed to be in, or not opposed to, the best interests or the Corporation,
except that no indemnification shall be made under this Paragraph 4 in respect
to any claim, issue or matter as to which Indemnitee shall have been adjudged to
be liable to the Corporation, unless and only to the extent that the Court of
Chancery of Delaware shall determine upon application that, despite the
adjudication of such liability but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnity for such Expenses as
the Court of Chancery shall deem proper.

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     5.   Exceptions to Right of Indemnification.  Notwithstanding anything to
          --------------------------------------
the contrary in this Agreement, except as set forth in Paragraph 10, the
Corporation shall not indemnify Indemnitee in connection with a Proceeding (or
part thereof) initiated by Indemnitee unless the initiation thereof was approved
by the Board of Directors of the Corporation.  Notwithstanding anything to the
contrary in this Agreement, the Corporation shall not indemnify Indemnitee to
the extent Indemnitee is reimbursed from the proceeds of insurance, and in the
event the Corporation makes any indemnification payments to Indemnitee and
Indemnitee is subsequently reimbursed from the proceeds of insurance, Indemnitee
shall promptly refund such indemnification payments to the Corporation to the
extent of such insurance reimbursement.

     6.   Indemnification of Expenses.  Notwithstanding any other provision of
          ---------------------------
this Agreement, to the extent that Indemnitee has been successful, on the merits
or otherwise, in defense of any Proceeding or in defense of any claim, issue or
matter therein, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee or on Indemnitee's behalf in connection therewith.  Without limiting
the foregoing, if any Proceeding or any claim, issue or matter therein is
disposed of, on the merits or otherwise (including a disposition without
prejudice), without (i) the disposition being adverse to the Indemnitee, (ii) an
adjudication that the Indemnitee was liable to the Corporation, (iii) a plea of
guilty or nolo contendere by the Indemnitee, (iv) an adjudication that the
          ---- ----------
Indemnitee did not act in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the Corporation, and (v) with
respect to any criminal proceeding, an adjudication that the Indemnitee had
reasonable cause to believe his conduct was unlawful, Indemnitee shall be
considered for the purposes hereof to have been wholly successful with respect
thereto.  In addition, notwithstanding any other provision contained in this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status,
a witness to any Proceeding to which Indemnitee is not a party, Indemnitee shall
be indemnified and held harmless from all Expenses actually and reasonable
incurred by Indemnitee in connection therewith.

     7.   Notification and Defense of Claim.  As a condition precedent to
          ---------------------------------
Indemnitee's right to be indemnified, Indemnitee agrees to notify the
Corporation in writing as soon as reasonably practicable of any Proceeding for
which indemnity will or could be sought by Indemnitee and provide the
Corporation with a copy of any summons, citation, subpoena, complaint,
indictment, information or other document relating to such Proceeding with which
Indemnitee is served; provided, however, that the failure to give such notice
shall not relieve the Corporation of its obligations to Indemnitee under this
Agreement, except to the extent, if any, that the Corporation is actually
prejudiced by the failure to give such notice.  With respect to any Proceeding
of which the Corporation is so notified, the Corporation will be entitled to
participate therein at its own expense and/or to assume the defense thereof at
its own expense, with legal counsel reasonably acceptable to Indemnitee.  After
notice from the Corporation to Indemnitee of its election so to assume such
defense, the Corporation shall not be liable to the Indemnitee for any legal or
other expenses subsequently incurred by the Indemnitee in connection with such
Proceeding, other than as provided below in this Paragraph 7.  Indemnitee shall
have the right to employ Indemnitee's own counsel in connection with such
Proceeding, but the fees and expenses of such counsel incurred after

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notice from the Corporation of its assumption of the defense thereof shall be at
the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has
been authorized by the Corporation, (ii) counsel to Indemnitee shall have
reasonably concluded that there may be a conflict of interest or position on any
significant issue between the Corporation and Indemnitee in the conduct of the
defense of such Proceeding or (iii) the Corporation shall not in fact have
employed counsel to assume the defense of such Proceeding, in each of which
cases the fees and expenses of counsel for Indemnitee shall be at the expense of
the Corporation, except as otherwise expressly provided by this Agreement. The
Corporation shall not be entitled, without the consent of Indemnitee, to assume
the defense of any claim brought by or in the right of the Corporation or as to
which counsel for Indemnitee shall have reasonably made the conclusion provided
for in clause (ii) above. The Corporation shall not be required to indemnify
Indemnitee under this Agreement for any amounts paid in settlement of any
Proceeding effected without its written consent. The Corporation shall not
settle any Proceeding in any manner which would impose any penalty or limitation
on Indemnitee without Indemnitee's written consent. Neither the Corporation nor
the Indemnitee will unreasonably withhold its consent to any proposed
settlement.

     8.   Advancement of Expenses.  Any Expenses incurred by Indemnitee in
          -----------------------
connection with any such Proceeding to which Indemnitee was or is a witness or a
party or is threatened to be a party by reason of his Corporate Status or by
reason of any action alleged to have been taken or omitted in connection
therewith shall be paid by the Corporation in advance of the final disposition
of such matter; provided, however, that the payment of such Expenses incurred by
                --------  -------
the Indemnitee in advance of the final disposition of such matter shall be made
only upon receipt of an undertaking by or on behalf of the Indemnitee to repay
all amounts so advanced in the event that it shall ultimately be determined that
the Indemnitee is not entitled to be indemnified by the Corporation as
authorized in this Agreement; and further provided that no such advancement of
                                  ------- --------
Expenses shall be made if it is determined that (i) Indemnitee did not act in
good faith and in a manner Indemnitee reasonably believes to be in, or not
opposed to, the best interests of the Corporation, or (ii) with respect to any
criminal action or proceeding, the Indemnitee had reasonable cause to believe
Indemnitee's conduct was unlawful.  Such undertaking shall be accepted without
reference to the financial ability of Indemnitee to make such repayment.  If,
pursuant to the terms of this Agreement, Indemnitee is not entitled to be
indemnified with respect to such Proceeding, then such Expenses shall be paid
within 60 days after the receipt by Indemnitee of the written request by the
Corporation for the Indemnitee to make payments to the Corporation.

     9.   Procedure for Indemnification.  In order to obtain indemnification
          -----------------------------
pursuant to Paragraphs 3, 4 or 6 of this Agreement, Indemnitee shall submit to
the Corporation a written request, including in such request such documentation
and information as is reasonably available to Indemnitee and is reasonably
necessary to determine whether and to what extent Indemnitee is entitled to
indemnification or advancement of Expenses.  Any such indemnification or
advancement of Expenses shall be made promptly, and in any event within 60 days
after receipt by the Corporation of the written request of the Indemnitee,
unless with respect to requests under Paragraphs 3 or 4 the Corporation
determines within such 60-day period that such Indemnitee did not meet the
applicable standard of conduct set forth in Paragraphs 3 or 4, as the case may
be.  Such determination, and any determination

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pursuant to Section 8 that advanced Expenses must be repaid to the Corporation,
shall be made in each instance (a) by a majority vote of the directors of the
Corporation consisting of persons who are not at that time parties to the
Proceeding ("Disinterested Directors"), whether or not a quorum, (b) by a
committee of Disinterested Directors designated by majority vote of
Disinterested Directors, whether or not a quorum, (c) if there are no
Disinterested Directors, or if Disinterested Directors so direct, by independent
legal counsel (who may, to the extent permitted by applicable law, be regular
legal counsel to the Corporation ) in a written opinion or (d) by the
stockholders.

     10.  Remedies.  The right to indemnification and immediate advancement of
          --------
Expenses as provided by this Agreement shall be enforceable by the Indemnitee in
any court of competent jurisdiction.  Unless otherwise required by law, the
burden of proving that indemnification is not appropriate shall be on the
Corporation.  Neither the failure of the Corporation to have made a
determination prior to the commencement of such action that indemnification is
proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Corporation pursuant to Paragraph
9 that Indemnitee has not met such applicable standard of conduct, shall be a
defense to the action or create a presumption that Indemnitee has not met the
applicable standard of conduct.  Indemnitee's expenses (of the type described in
the definition of "Expenses" in Paragraph 2 (c)) reasonably incurred in
connection with successfully establishing Indemnitee's right to indemnification,
in whole or in part, in any such Proceeding also shall be indemnified by the
Corporation.

     11.  Partial Indemnification.  If Indemnitee is entitled under any
          -----------------------
provision of this Agreement to indemnification by the Corporation for some or a
portion of the Expenses, judgments, fines penalties or amounts paid in
settlement actually and reasonably incurred by Indemnitee or on Indemnitee's
behalf in connection with any Proceeding but not, however, for the total amount
thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion
of such Expenses, judgments, fines, penalties or amounts paid in settlement to
which Indemnitee is entitled.

     12.  Subrogation.  In the event of any payment under this Agreement, the
          -----------
Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all papers required and take
all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Corporation to bring suit to enforce
such rights.

     13.  Term of Agreement.  This Agreement shall continue until and terminate
          -----------------
upon the later of (a) six years after the date that Indemnitee shall have ceased
to serve as a director of the Corporation or, at the request of the Corporation,
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise; (b) the expiration of all applicable
statute of limitations periods for any claim which may be brought against
Indemnitee in a Proceeding as a result of his Corporate Status; or (c) the final
termination of all Proceedings pending on the date set forth in clauses (a) or
(b) in respect of which Indemnitee is granted rights of indemnification or
advancement of Expenses

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hereunder and of any proceeding commenced by Indemnitee pursuant to Paragraph 10
of this Agreement relating thereto.

     14.  Indemnification Hereunder Not Exclusive.  The indemnification and
          ---------------------------------------
advancement of Expenses provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may be entitled under the Certification
of Incorporation, the By-Laws, any agreement, any vote of stockholders or
disinterested directors, the General Corporation law of the State of Delaware,
any other law (common or statutory) or otherwise, both as to action in
Indemnitee's official corporate capacity and as to action in another capacity
while holding office for the Corporation.  Nothing contained in this Agreement
shall be deemed to prohibit the Corporation from purchasing and maintaining
insurance, at its expense, to protect itself or the Indemnitee against any
expense, liability or loss incurred by it or Indemnitee in any such capacity, or
arising out of Indemnitee's status as such, whether or not Indemnitee would be
indemnified against such expense, liability or loss under this Agreement;
provided that the Corporation shall not be liable under this Agreement to make
any payment of amounts otherwise indemnifiable hereunder if and to the extent
that Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement or otherwise, including as provided in Section 5
hereof.

     15.  No Special Rights.  Nothing herein shall confer upon Indemnitee any
          -----------------
right to continue to serve as a director of the Corporation for any period of
time or, except as expressly provided herein, at any particular rate of
compensation.

     16.  Savings Clause.  If this Agreement or any portion thereof shall be
          --------------
invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments,
fines, penalties and amounts paid in settlement with respect to any Proceeding
to the full extent permitted by any applicable portion of this Agreement that
shall not have been invalidated and to the fullest extent permitted by
applicable law.

     17.  Counterparts; Facsimile Signatures.  This Agreement maybe executed in
          ----------------------------------
two counterparts, both of which together shall constitute the original
instrument.  This Agreement may be executed by facsimile signatures.

     18.  Successors and Assigns.  This Agreement shall be binding upon the
          ----------------------
Corporation and its successors and assigns and shall inure to the benefit of the
estate, heirs, executors, administrators and personal representatives of
Indemnitee.

     19.  Headings.  The headings of the paragraphs of this Agreement are
          --------
inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof.

     20.  Modification and Waiver.  This Agreement amends and restates in its
          -----------------------
entirety the Original Agreement.  This Agreement may be amended from time to
time to reflect changes in Delaware law or for other reasons.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto.

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No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof nor shall any such waiver
constitute a continuing waiver.

     21.  Notices.  All notices, requests, demands and other communications
          -------
hereunder shall be in writing and shall be deemed to have been given (i) when
delivered by hand or (ii) if mailed by certified or registered mail with postage
prepaid, on the third day after the date on which it is so mailed:

          (a)  if to the Indemnitee, to:

                    Name of Indemnitee
                    Address of Indemnitee

          (b)  if to the Corporation, to:

                    NaviSite, Inc.
                    400 Minuteman Road
                    Andover, Massachusetts 01810
                    Attn:  Joel B. Rosen, Chief Executive Officer

or to such other address as may have been furnished to Indemnitee by the
Corporation or to the Corporation by Indemnitee, as the case may be.

     22.  Applicable Law.  This Agreement shall be governed by and constructed
          --------------
in accordance with the laws of the State of Delaware.

     23.  Enforcement.  The Corporation expressly confirms and agrees that it
          -----------
has entered into this Agreement in order to induce Indemnitee to continue to
serve as a director of the Corporation and acknowledges that Indemnitee is
relying upon this Agreement in continuing in such capacity.

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

                              NAVISITE, INC.

                              By______________________
                              Name: Joel B. Rosen
                              Title: Chief Executive Officer

                              ________________________
                              (Director Name)

                                       8<PAGE>

                                                                    Exhibit 10.8

NSO1- X                                                        ((Shares)) Shares

                                NAVISITE, INC.
                Amended and Restated 1998 Equity Incentive Plan
                Executive Non-Statutory Stock Option Agreement

     NaviSite, Inc. (the "Company"), a Delaware corporation, hereby grants
to the person named below (the "Optionholder") an option to purchase shares of
common stock, $0.01 par value per share (the "Common Stock"), of the Company
(the "Option") in consideration for, and subject to, the Optionholder's
agreement to the terms and conditions of this Agreement:

     Name of Optionholder:    ((First)) ((Last))

     Address:                 ((Address))
                              ((City)), ((State)) ((Zip))

     Social Security No.:     ((Social))

     Option Price per Share:  ((Price))

     Number of Shares:        ((Shares))

     Date of Grant:           ((Date))

     Vesting Date:            Eight equal quarterly cumulative installments of
                              1/8/th/ of the Number of Shares commencing with
                              the quarter ending June 30, 2001.

     Expiration Date:         ((Expires))

     1.   Key Definitions.
          ---------------

     As used herein, the following terms shall have the following respective
meanings:

          1.1  "Change in Control" means an event or occurrence set forth in
                -----------------
any one or more of subsections (a) through (e) below (including an event or
occurrence that constitutes a Change in Control under one of such subsections
but is specifically exempted from another such subsection):

               (a)  the acquisition by an individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) (a "Person") of beneficial ownership of
any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) 25% or more of either (i) the then-outstanding shares of
<PAGE>

common stock of the Company (the "Outstanding Company Common Stock") or (ii) the
combined voting power of the then-outstanding securities of the Company entitled
to vote generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that for purposes of this subsection (a), the
              --------  -------
following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company (excluding an acquisition pursuant to the
exercise, conversion or exchange of any security exercisable for, convertible
into or exchangeable for common stock or voting securities of the Company,
unless the Person exercising, converting or exchanging such security acquired
such security directly from the Company or an underwriter or agent of the
Company), (ii) any acquisition by the Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (iv) any acquisition by any
corporation pursuant to a transaction which complies with clauses (i) and (ii)
of subsection (c) of this Section 1.1; or

          (b)  such time as the Continuing Directors (as defined below) do not
constitute a majority of the Board of Directors (the "Board") (or, if
applicable, the Board of Directors of a successor corporation to the Company),
where the term "Continuing Director" means at any date a member of the Board (i)
who was a member of the Board on the date of the execution of this Agreement or
(ii) who was nominated or elected subsequent to such date by at least a majority
of the directors who were Continuing Directors at the time of such nomination or
election or whose election to the Board was recommended or endorsed by at least
a majority of the directors who were Continuing Directors at the time of such
nomination or election; provided, however, that there shall be excluded from
                        --------  -------
this clause (ii) any individual whose initial assumption of office occurred as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents, by or on behalf of a person other than the Board; or

          (c)  the consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company or a sale or
other disposition of all or substantially all of the assets of the Company in
one or a series of transactions (a "Business Combination"), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and entities who were
the beneficial owners of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding
shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors,
respectively, of the resulting or acquiring corporation in such Business
Combination (which shall include, without limitation, a corporation which as a
result of such transaction owns the Company or substantially all of the
Company's assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the "Acquiring
Corporation") in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively; and (ii)
no Person (excluding the Acquiring Corporation or any employee benefit plan (or
related trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 25% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the
combined voting power of the then-outstanding securities of such corporation
entitled to vote

                                      -2-
<PAGE>

generally in the election of directors (except to the extent that such ownership
existed prior to the Business Combination); or

               (d)  the Company ceases to have a class of securities that is
registered pursuant to Section 12(b) or 12(g) of the Exchange Act; or

               (e)  the Company ceases to have at least 50 holders of a class of
securities that is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act.

          1.2  "Change in Control Date" means the first date on which a
                ----------------------
Change in Control occurs.  Anything in this Agreement to the contrary
notwithstanding, if (a) a Change in Control occurs, (b) the Optionholder's
employment with the Company is terminated prior to the date on which the Change
in Control occurs, and (c) it is reasonably demonstrated by the Optionholder
that such termination of employment (i) was at the request of a third party who
has taken steps reasonably calculated to effect a Change in Control or (ii)
otherwise arose in connection with or in anticipation of a Change in Control,
then for all purposes of this Agreement the "Change in Control Date" shall mean
the date immediately prior to the date of such termination of employment.

          1.3  "Cause" means:
                -----

               (a)  the Optionholder's willful and continued failure to
substantially perform her reasonable assigned duties as an executive of the
Company (other than any such failure resulting from incapacity due to physical
or mental illness or any failure after the Optionholder gives notice of
termination for Good Reason), which failure is not cured within 30 days after a
written demand for substantial performance is received by the Optionholder from
the Board of the Company which specifically identifies the manner in which the
Board believes the Optionholder has not substantially performed the
Optionholder's duties; or

               (b)  the Optionholder's willful engagement in illegal conduct or
gross misconduct which is materially and demonstrably injurious to the Company.

     For purposes of this Section 1.3, no act or failure to act by the
Optionholder shall be considered "willful" unless it is done, or omitted to be
done, in bad faith and without reasonable belief that the Optionholder's action
or omission was in the best interests of the Company.

          1.4  "Good Reason" means the occurrence, without the Optionholder's
                -----------
written consent, of any of the events or circumstances set forth in clauses (a)
through (f) below.  Notwithstanding the occurrence of any such event or
circumstance, such occurrence shall not be deemed to constitute Good Reason if,
prior to the Date of Termination specified in the Notice of Termination (each as
defined in Section 1.6) given by the Optionholder in respect thereof, such event
or circumstance has been fully corrected and the Optionholder has been
reasonably compensated for any losses or damages resulting therefrom (provided
that such right of correction by the Company shall only apply to the first
Notice of Termination for Good Reason given by the Optionholder).

               (a)  the assignment to the Optionholder of duties inconsistent in
any material respect with the Optionholder's position (including status,
offices, titles and reporting

                                      -3-
<PAGE>

requirements), authority or responsibilities in effect immediately prior to the
earliest to occur of (i) the Change in Control Date, (ii) the date of the
execution by the Company of the initial written agreement or instrument
providing for the Change in Control or (iii) the date of the adoption by the
Board of Directors of a resolution providing for the Change in Control (with the
earliest to occur of such dates referred to in the preceding three clauses (i),
(ii) and (iii) as the "Measurement Date"), or any other action or omission by
the Company which results in a material diminution in such position, authority
or responsibilities;

               (b)  a reduction in the Optionholder's annual base salary as in
effect on the Measurement Date or as the same was or may be increased thereafter
from time to time;

               (c)  the failure by the Company to (i) continue in effect any
material compensation or benefit plan or program (including without limitation
any life insurance, medical, health and accident or disability plan and any
vacation or automobile program or policy) (a "Benefit Plan") in which the
Optionholder participates or which is applicable to the Optionholder immediately
prior to the Measurement Date, unless an equitable arrangement (embodied in an
ongoing comparable substitute or alternative plan) has been made with respect to
such plan or program, (ii) continue the Optionholder's participation therein (or
in such substitute or alternative plan) on a basis not materially less
favorable, both in terms of the amount of benefits provided and the level of the
Optionholder's participation relative to other participants, than the basis
existing immediately prior to the Measurement Date or (iii) award cash bonuses
to the Optionholder in amounts and in a manner substantially consistent with
past practice in light of the Company's financial performance;

               (d)  a change by the Company in the location at which the
Optionholder performs her principal duties for the Company to a new location
that is both (i) outside a radius of 35 miles from the Optionholder's principal
residence immediately prior to the Measurement Date and (ii) more than 20 miles
from the location at which the Optionholder performed her principal duties for
the Company immediately prior to the Measurement Date; or a requirement by the
Company that the Optionholder travel on Company business to a substantially
greater extent than required immediately prior to the Measurement Date;

               (e)  a purported termination of the Optionholder's employment
which is not effected pursuant to a Notice of Termination satisfying the
requirements of Section 1.6; or

               (f)  any failure of the Company to pay or provide to the
Optionholder any portion of the Optionholder's compensation or benefits due
under any Benefit Plan within 20 days of the date such compensation or benefits
are due, or any material breach by the Company of this Agreement or any
employment agreement with the Optionholder.

          The Optionholder's right to terminate her employment for Good Reason
shall not be affected by her incapacity due to physical or mental illness.

          1.5  "Fair Market Value" means
                -----------------

               (a)  with respect to property other than Common Stock, the fair
market value of such property as determined by the Committee (as defined in
Section 2) in good faith or in the manner established by the Committee from time
to time, and

                                      -4-
<PAGE>

               (b) with respect to Common Stock, the value determined by the
Board in good faith, provided that if the Common Stock is then quoted on the
Nasdaq National Market ("Nasdaq") or traded on any national securities exchange
or other interdealer quotation system, then the fair market value of a share of
Common Stock shall be the closing price for the Common Stock as reported by
Nasdaq, or the principal exchange on which the Common Stock is then traded, on
the last preceding trading day.

          1.6  "Notice of Termination" means the required written notice of any
                ---------------------
termination of the Optionholder's employment by the Company or by the
Optionholder (other than due to the death of the Optionholder) communicated to
the other party hereto.  Any Notice of Termination shall: (i) indicate the
specific termination provision (if any) of this Agreement relied upon by the
party giving such notice, (ii) to the extent applicable, set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Optionholder's employment under the provision so indicated and (iii) specify
the Date of Termination (as defined below).  The effective date of an employment
termination (the "Date of Termination") shall be the close of business on the
date specified in the Notice of Termination (which date may not be less than ten
days or more than 120 days after the date of delivery of such Notice of
Termination), in the case of a termination other than one due to the
Optionholder's death, or the date of the Optionholder's death, as the case may
be.  In the event the Company fails to satisfy the requirements of Section 1.6
regarding a Notice of Termination, the purported termination of the
Optionholder's employment pursuant to such Notice of Termination shall not be
effective for purposes of this Agreement.

     2.   Non-Statutory Option; Plan Incorporated by Reference.  This Option is
          ----------------------------------------------------
a non-qualified stock option and shall not be treated as an Incentive Stock
                                       ---
Option under Section 422 of the Internal Revenue Code, as amended (the "Code").
This Option is issued pursuant to the terms of the Company's Amended and
Restated 1998 Equity Incentive Plan (the "Plan") and may be amended as provided
in the Plan. Capitalized terms used and not otherwise defined in this Agreement
have the meanings given to them in the Plan.  This Agreement does not set forth
all of the terms and conditions of the Plan, which are incorporated herein by
reference.  The Board may appoint one or more committees each comprised of at
least two members of the Board to administer the Plan (the "Committee").  The
Committee's determinations regarding the operation of the Plan are final and
binding.  If the Board does not appoint a Committee to administer the Plan, all
references herein to the Committee shall mean the Board.  The Optionholder
hereby acknowledges receipt of a copy of the Plan.

     3.   Non-Competition Agreement.  The Optionholder agrees that during
          -------------------------
Optionholder's employment with the Company and for 12 months thereafter, the
Optionholder will not (i) as an individual, proprietor, partner, stockholder,
officer, employee, director, consultant, joint venturer, investor, lender, or in
any other capacity whatsoever (except as the passive holder of not more than one
percent of the total outstanding stock of a publicly-held company), engage
anywhere in the world in the business of developing, producing, marketing or
selling products or services competitive with any kind or type of products or
services which were developed or were being (or were planned to be) developed,
produced, marketed or sold by the Company while the Optionholder was employed
by, or under a consulting relationship with, the Company; or (ii) recruit,
solicit or induce, or attempt to induce, any employee of or consultant to the
Company to terminate his or her employment with, or otherwise cease any
relationship with,

                                      -5-
<PAGE>

the Company; or (iii) solicit, divert or take away, or attempt to divert or take
away, any business of any of the clients, customers or accounts of the Company
which were contacted, solicited or served by the Company at any time during the
12 month period preceding the termination of the Optionholder's employment or
consulting relationship. If any restriction set forth in this Section 3 is found
by any court to be unenforceable because it extends for too long a period of
time, or over too great a range of activities, or over too broad a geographic
area, the restriction shall be interpreted to extend only over the maximum
period of time, range of activities or geographic area which the court finds to
be enforceable. The Optionholder acknowledges that the restrictions contained in
this Section 3 are appropriate for the protection of the business and goodwill
of the Company and are considered by the Optionholder to be reasonable for such
purpose.

     4.   Option Price.  The price to be paid for each share of Common Stock
          ------------
issued upon exercise of the whole or any part of this Option is the Option Price
per Share as set forth above.

     5.   Exercisability Schedule.  This Option will become exercisable in eight
          ------------------------
equal quarterly cumulative installments of 1/8/th/ of the Number of Shares
commencing with the quarter ending June 30, 2001.  In the event of a Change in
Control, this Option shall become exercisable for an additional 50% of the
Number of Shares as to which such Option was not yet exercisable as of the
Change in Control Date.  This Option shall expire on the Expiration Date as set
forth above.  This Option shall not be exercisable with respect to any
fractional share, nor as to any shares after the Expiration Date.

     6.   Method of Exercise.  To exercise this Option, the Optionholder shall
          ------------------
deliver written notice of exercise to the Company specifying the number of
shares with respect to which the Option is being exercised accompanied by
payment of the Option Price per Share for such shares in cash, by certified
check or in such other form, including shares of Common Stock of the Company
valued at their Fair Market Value on the date of delivery or a payment
commitment of a financial or brokerage institution, as the Committee may
approve.  Promptly following such notice, the Company will deliver to the
Optionholder a certificate representing the number of shares with respect to
which this Option is being exercised.

     7.   Rights as a Stockholder, Employee or Consultant.  The Optionholder
          -----------------------------------------------
shall not have any rights in respect of shares as to which this Option shall not
have been exercised and payment made as provided above.  The Optionholder shall
not have any rights to continued employment or consulting with the Company or
any business entity in which the Company owns directly or indirectly 50% or more
of the total voting power or has a significant financial interest as determined
by the Committee (an "Affiliate") by virtue of the grant of this Option.

     8.   Recapitalization, Mergers, Etc.  As provided in the Plan, in the event
          -------------------------------
of corporate transactions affecting the Company's outstanding Common Stock, the
Committee shall equitably adjust the number and kind of shares subject to this
Option and the exercise price hereunder or make provision for a cash payment.
If such transaction involves a consolidation or merger of the Company with
another entity, the sale or exchange of all or substantially all of the assets
of the Company or a reorganization or liquidation of the Company, then in lieu
of the foregoing, the Committee may upon written notice to the Optionholder
provide that this Option shall terminate on a date not less than 20 days after
the date of such notice unless theretofore exercised.

                                      -6-
<PAGE>

     9.   Option Not Transferable.  This Option is not transferable by the
          -----------------------
Optionholder otherwise than by will or the laws of descent and distribution, and
is exercisable, during the Optionholder's lifetime, only by the Optionholder.
The naming of a Designated Beneficiary (as defined below) does not constitute a
transfer.  "Designated Beneficiary" means the beneficiary designated by the
Optionholder, in a manner determined by the Committee, to receive amounts due or
exercise rights of the Optionholder in the event of the Optionholder's death.
In the absence of an effective designation by the Optionholder, "Designated
Beneficiary" shall mean the Optionholder's estate.

     10.  Exercise of Option After Termination of Employment.  If the
          --------------------------------------------------
Optionholder's status as an employee of or consultant to (a) the Company, (b) an
Affiliate, or (c) a corporation (or parent or subsidiary corporation of such
corporation) issuing or assuming a stock option in a transaction to which
Section 424(a) of the Code applies, is terminated for any reason other than (a)
as a result of a disability (within the meaning of Section 22(e)(3) of the
Code), (b) death, (c) by the Company whether for Cause or not for Cause, or (d)
by the Optionholder for Good Reason, the Optionholder may exercise the rights
which were available to the Optionholder at the time of such termination only
within one month following the date of termination.  If such status is
terminated (a) as a result of a disability, (b) by the Company not for Cause, or
(c) by the Optionholder for Good Reason, the Optionholder may exercise the
rights which were available to the Optionholder at the time of such termination
within six months following the date of termination.  Upon the death of the
Optionholder, his or her Designated Beneficiary shall have the right, at any
time within 12 months after the date of death, to exercise in whole or in part
any rights that were available to the Optionholder at the time of death.  If an
Optionholder's employment or consulting relationship with the Company or any
Affiliate is terminated for Cause, all such Optionholder's options shall
terminate immediately and be of no further force or effect.  Notwithstanding the
foregoing, no rights under this Option may be exercised after the Expiration
Date.  The aforesaid one month, six month and 12 month periods may be extended
by the Committee in its sole discretion up to the Expiration Date of the option.
Whether authorized leaves of absence or absence on military or governmental
service may constitute termination for purposes of the Plan shall be
conclusively determined by the Committee.  Nothing in the Plan or in any option
granted thereunder shall be deemed to give the Optionholder the right to
continue his or her employment or consulting with the Company or any of its
Affiliates or shall be deemed to interfere in any way with the right of the
Company to terminate any Optionholder's employment or consulting relationship at
any time and for any reason.  Options granted under the Plan shall not be
affected by any change of employment or consulting among the Company and its
Affiliates so long as the Optionholder continues to have an employment or
consulting relationship with the Company or one of its Affiliates.

     11.  Compliance with Securities Laws.  It shall be a condition to the
          -------------------------------
Optionholder's right to purchase shares of Common Stock hereunder that the
Company may, in its discretion, require (a) that the shares of Common Stock
reserved for issue upon the exercise of this Option shall have been duly listed,
upon official notice of issuance, upon any national securities exchange or
automated quotation system on which the Company's Common Stock may then be
listed or quoted, (b) that either (i) a registration statement under the
Securities Act of 1933, as amended (the "Securities Act"), with respect to the
shares shall be in effect, or (ii) in the opinion of counsel for the Company,
the proposed purchase shall be exempt from registration under the Securities Act
and the Optionholder shall have made such undertakings and agreements with the

                                      -7-
<PAGE>

Company as the Company may reasonably require, and (c) that such other steps, if
any, as counsel for the Company shall consider necessary to comply with any law
applicable to the issue of such shares by the Company shall have been taken by
the Company or the Optionholder, or both. The certificates representing the
shares purchased under this Option may contain such legends as counsel for the
Company shall consider necessary to comply with any applicable law.

     12.  Payment of Taxes.  The Optionholder shall pay to the Company, or make
          ----------------
provision satisfactory to the Company for payment of, any taxes required by law
to be withheld with respect to the exercise of this Option.  The Committee may,
in its discretion, require or permit any other Federal or state taxes imposed on
the exercise of this Option or the sale of the shares to be paid by the
Optionholder.  In the Committee's discretion, such tax obligations may be paid
in whole or in part in shares of Common Stock, including shares retained from
the exercise of this Option, valued at their Fair Market Value on the date of
delivery.  The Company and its Affiliates may, to the extent permitted by law,
deduct any such tax obligations from any payment of any kind otherwise due to
the Optionholder.

NAVISITE, INC.                          OPTIONHOLDER

By:___________________________          By:__________________________
   Name:  Joel B. Rosen                    Name:
   Title: Chief Executive Officer
          and President

                                      -8-

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