Document:

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                                                                    Exhibit 10.4

                     ACCOUNTS RECEIVABLE FINANCING AGREEMENT

         This ACCOUNTS RECEIVABLE FINANCING AGREEMENT (the "Agreement") is
entered into this 27th day of May, 2003 by and between SILICON VALLEY BANK, a
California-chartered bank, with its principal place of business at 3003 Tasman
Drive, Santa Clara, California 95054 and with a loan production office located
at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton,
Massachusetts 02462, doing business under the name "Silicon Valley East" (FAX
617-969-5965) ("Bank") and NAVISITE, INC., a Delaware corporation, CLEARBLUE
TECHNOLOGIES MANAGEMENT, INC., a Delaware corporation, AVASTA, INC., a
California corporation, CONXION CORPORATION, a California corporation, INTREPID
ACQUISITION CORP., a Delaware corporation, each with its principal place of
business at 400 Minuteman Road, Andover, Massachusetts 01810 (FAX
______________) (each are herein collectively, the "Borrower") and provides the
terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The
parties agree as follows:

1.       DEFINITIONS. In this Agreement:

         "ACCOUNTS" are all existing and later arising accounts, contract
rights, and other obligations owed Borrower in connection with its sale or lease
of goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

         "ACCOUNT BALANCE" is the aggregate outstanding Advances made hereunder.

         "ACCOUNT DEBTOR" is as defined in the Code and shall include, without
limitation, any person liable on any Financed Receivable, such as, a guarantor
of the Financed Receivable and any issuer of a letter of credit or banker's
acceptance.

         "ADJUSTMENTS" are all discounts, allowances, returns, disputes,
counterclaims, offsets, defenses, rights of recoupment, rights of return,
warranty claims, or short payments, asserted by or on behalf of any Account
Debtor for any Financed Receivable.

         "ADVANCE" is defined in Section 2.2.

         "ADVANCE RATE" is eighty percent (80% ), net of Deferred Revenue and
offsets related to each specific Account Debtor, or such other percentage as
Bank establishes under Section 2.2.

         "APPLICABLE RATE" is a per annum rate equal to the "Prime Rate" plus
four percent (4.0%).

         "BORROWER'S BOOKS" are all Borrower's books and records including
ledgers, records regarding Borrower's assets or liabilities, the Collateral,
business operations or financial condition and all computer programs or discs or
any equipment containing the information.

         "CLOSING DATE" is the date of the execution of this Agreement.

         "CODE" is the Uniform Commercial Code as adopted by The Commonwealth of
Massachusetts (presently, Mass. Gen. Laws, Ch. 106), as may be amended and in
effect from time to time.

         "COLLATERAL" is attached as EXHIBIT A, as each term listed thereon is
defined in the Code.

         "COLLATERAL HANDLING FEE" is defined in Section 3.4.

         "COLLECTIONS" are all funds received by Bank from or on behalf of an
Account Debtor for Financed Receivables.

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         "COMPLIANCE CERTIFICATE" is attached as EXHIBIT "B".

         "CONTINGENT OBLIGATION" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

         "DEFERRED REVENUE" is all amounts received in advance of performance
under contracts and not yet recognized as revenue.

         "EARLY TERMINATION FEE" is defined in Section 4.3.

         "EBITDA" means earnings before interest, taxes, depreciation and
amortization in accordance with GAAP and excludes acquisition-related costs and
one-time extraordinary charges.

         "EVENT OF DEFAULT" is defined in Section 9.

         "FACILITY AMOUNT" is Twelve Million Five Hundred Thousand Dollars
($12,500 ,000.00).

         "FACILITY FEE" is defined in Section 3.3.

         "FACILITY PERIOD" is the period beginning on this date and continuing
until May 27, 2004, unless the period is terminated sooner (i) by Bank at any
time with notice to Borrower after the occurrence of an Event of Default, (ii)
by Borrower pursuant to Section 4.3, or (iii) upon an Event of Default.

         "FINANCE CHARGES" is defined in Section 3.2.

         "FINANCED RECEIVABLES" are all those accounts, receivables, chattel
paper, instruments, contract rights, documents, general intangibles, letters of
credit, drafts, bankers acceptances, and rights to payment, and all proceeds,
including their proceeds (collectively "receivables"), which Bank finances and
makes an Advance. A Financed Receivable stops being a Financed Receivable (but
remains Collateral) when the Advance made for the Financed Receivable has been
finally paid.

         "FINANCED RECEIVABLE BALANCE" is the total outstanding amount, at any
time, of all Financed Receivables.

         "GAAP" is generally accepted accounting principles as adopted by the
Financial Accounting Standards Board.

         "GOOD FAITH DEPOSIT" is described in Section 3.8.

         "INDEBTEDNESS" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations.

         "INELIGIBLE RECEIVABLE" is any accounts receivable:

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                  (a)      that is unpaid ninety (90) calendar days after the
                           invoice date; or

                  (b)      that is owed by an Account Debtor that has filed, or
                           has had filed against it, any bankruptcy case,
                           assignment for the benefit of creditors,
                           receivership, or Insolvency Proceeding or who has
                           become insolvent (as defined in the United States
                           Bankruptcy Code) or who is generally not paying its
                           debts as they become due; or

                  (c)      for which there has been any breach of warranty or
                           representation in Section 6 or any breach of any
                           covenant in this Agreement; or

                  (d)      for which the Account Debtor asserts any discount,
                           allowance, return, dispute, counterclaim, offset,
                           defense, right of recoupment, right of return,
                           warranty claim, or short payment, to the extent of
                           such assertion.

         "INSOLVENCY PROCEEDING" are proceedings by or against any person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

         "INVOICE TRANSMITTAL" shows accounts receivable which Bank may finance
and, for each receivable, includes the Account Debtor's, name, address, invoice
amount, invoice date and invoice number and is signed by Borrower's authorized
representative.

         "LOCKBOX" is described in Section 6.3(J).

         "MINIMUM FINANCE CHARGE" is a minimum monthly Finance Charge of
$10,000.00 payable to the Bank.

         "OBLIGATIONS" are all advances, liabilities, obligations, covenants and
duties owing, arising, due or payable by Borrower to Bank now or later under
this Agreement or any other document, instrument or agreement, account
(including those acquired by assignment) primary or secondary, such as all
Advances, Finance Charges, Facility Fee, Early Termination Fee, Collateral
Handling Fee, interest, fees, expenses, professional fees and attorneys' fees,
or other amounts now or hereafter owing by Borrower to Bank.

         "PERMITTED INDEBTEDNESS" is:

         (a)      Borrower's indebtedness to Bank under this Agreement or the
                  Loan Documents;

         (b)      Indebtedness existing on the Closing Date and shown on the
                  Perfection Certificate;

         (c)      Subordinated Debt;

         (d)      Indebtedness to trade creditors incurred in the ordinary
                  course of business; and

         (e)      Indebtedness secured by Permitted Liens.

         "PERMITTED INVESTMENTS" are:

         (a)      investments in short term United States government treasury
                  bills, certificates of deposit, repurchase agreements,
                  commercial paper and mutual funds or money market funds that
                  invest substantially all of their assets in instruments
                  described above in this definition;

         (b)      travel and other advances to directors and employees of
                  Borrower made in the ordinary course of business; and

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         (c)      investments in marketable securities listed on SCHEDULE B
                  hereto.

         "PERMITTED LIENS" are liens, claims, and encumbrances that:

         (a)      arise or exist pursuant to this Agreement;

         (b)      exist on the date hereof and are listed on SCHEDULE A hereto
                  and any renewals or extensions thereof, provided such liens
                  secure the purchase money for specific equipment and such
                  liens are limited solely to such specific equipment and the
                  proceeds thereof;

         (c)      In addition to the items listed on SCHEDULE A, capital leases
                  or purchase money liens in the aggregate of $1,500,000.00
                  outstanding at any time (i) on equipment acquired or held by
                  Borrower incurred for financing the acquisition of the
                  equipment, or (ii) existing on equipment when acquired, if the
                  lien is confined to the property and improvements and the
                  proceeds of the equipment;

         (d)      are for taxes not yet due or which are being contested in good
                  faith and by appropriate proceedings diligently conducted;

         (e)      are carriers', warehousemen's, mechanics', material men's,
                  repairmen's, or other similar liens, claims, or encumbrances
                  arising in the ordinary course of business which are not
                  overdue for a period of more than ninety (90) days or which
                  are being contested in good faith by appropriate proceedings
                  diligently conducted;

         (f)      are pledges or deposits in the ordinary course of business in
                  connection with workers' compensation, unemployment insurance,
                  and other Social Security legislation;

         (g)      are deposits to secure the performance of bids, contracts and
                  leases, statutory obligations, surety bonds, performance
                  bonds, and other obligations similarly incurred in the
                  ordinary course of business;

         (h)      secure judgments for the payment of money not constituting an
                  Event of Default or secure appeal or other surety bonds
                  related to such judgments; and

         (i)      secure Permitted Indebtedness.

         "PERSON" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or government agency.

         "PRIME RATE" is Bank's most recently announced "Prime Rate," even if it
is not Bank's lowest rate, except that at no time under this Agreement shall the
Prime Rate be less than four and one-quarter percent (4.25%).

         "RECONCILIATION DAY" is the last calendar day of each month.

         "RECONCILIATION PERIOD" is each calendar month.

         "SUBORDINATED DEBT" is debt incurred by Borrower subordinated to
Borrower's debt to Bank (and identified as subordinated by Borrower and Bank,
pursuant to a subordination agreement entered into between the Bank, the
Borrower and the subordinated creditor), on terms acceptable to Bank.

         "SUBSIDIARY" is for any Person, joint venture, or any other business
entity of which more than 50% of the voting stock or other equity interests is
owned or controlled, directly or indirectly, by the Person.

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         2.       FINANCING OF ACCOUNTS RECEIVABLE.

                  2.1. REQUEST FOR ADVANCES. During the Facility Period,
Borrower may offer accounts receivable to Bank and request that the Bank finance
such accounts receivables, if there is not an Event of Default. Borrower will
deliver an Invoice Transmittal for each accounts receivable it offers. Bank may
rely on information on or with the Invoice Transmittal.

                  2.2. ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated
to finance any accounts receivable. Bank may approve any Account Debtor's
credit before agreeing to finance any accounts receivable. When Bank agrees to
finance a receivable, it will extend credit to Borrower in an amount up to the
result of the Advance Rate multiplied by the face amount of the receivable (the
"Advance"). Bank may, in its reasonable discretion, change the percentage of the
Advance Rate for a particular receivable on a case by case basis. When Bank
makes an Advance, the receivable becomes a "Financed Receivable." All
representations and warranties in Section 6 must be true as of the date of the
Invoice Transmittal and of the Advance and no Event of Default exists or would
occur as a result of the Advance. The aggregate face amount of all Financed
Receivables outstanding at any time may not exceed the Facility Amount. Although
Bank's obligation to make an Advance is discretionary in each instance, Bank
acknowledges that (subject to verifications and other terms and conditions
provided herein with respect to Account Debtors generally), it is the usual
practice of Bank to finance accounts receivable due and owing from those Account
Debtors that are Fortune 1000 type companies.

         3.       COLLECTIONS, FINANCE CHARGES, REMITTANCES AND FEES. The
Obligations shall be subject to the following fees and Finance Charges. Fees and
Finance Charges may, in Bank's discretion, be charged as an Advance, and shall
thereafter accrue fees and Finance Charges as described below. Bank may, in its
discretion, charge fees and Finance Charges to Borrower's deposit account
maintained with Bank.

                  3.1. COLLECTIONS. Collections will be credited to the Financed
Receivables Balance, but if there is an Event of Default, Bank may apply
Collections to the Obligations in any order it chooses. If Bank receives a
payment for both a Financed Receivable and a non Financed Receivable, the funds
will first be applied to the Financed Receivable and, if there is not an Event
of Default, the excess will be remitted to the Borrower, subject to Section 3.7.

                  3.2. FINANCE CHARGES. In computing Finance Charges on the
Financed Receivables Balance, all Collections received by Bank shall be deemed
applied by Bank on account of the Obligations three (3) Business Days after
receipt of the Collections. On each Reconciliation Day, Borrower will pay a
finance charge (the "Finance Charge"), which is equal to the greater of (i) the
Applicable Rate divided by 360 multiplied by the number of days in the
Reconciliation Period multiplied by the outstanding average daily Financed
Receivable Balance for that Reconciliation Period, or (ii) the Minimum Finance
Charge.

                  3.3. FACILITY FEE. A fully earned, non-refundable facility
fee of Eighty Thousand Dollars ($80,000.00 ) is due upon execution of this
Agreement.

                  3.4. COLLATERAL HANDLING FEE. On each Reconciliation Day,
Borrower will pay to Bank a collateral handling fee, equal to 0.25% per month of
the average daily Financed Receivable Balance outstanding during the applicable
Reconciliation Period. After an Event of Default, the Collateral Handling Fee
will increase an additional 0.25% effective immediately before the Event of
Default.

                  3.5. ACCOUNTING. After each Reconciliation Period, Bank will
provide an accounting of the transactions for that Reconciliation Period,
including the amount of all Financed Receivables, all Collections, Adjustments,
Finance Charges, Collateral Handling Fee and the Facility Fee. If Borrower does
not object to the accounting in writing within thirty (30) days it is considered
correct. All Finance Charges and other interest and fees are calculated on the
basis of a 360 day year and actual days elapsed.

                  3.6. DEDUCTIONS. Bank may deduct fees, Finance Charges and
other amounts due pursuant to this Agreement from any Advances made or
Collections received by Bank.

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                  3.7. ACCOUNT COLLECTION SERVICES. All Borrower's receivables
are to be paid to the same address/or party and Borrower and Bank must agree
on such address. If Bank collects all receivables and there is not an Event of
Default or an event that with notice or lapse of time will be an Event of
Default, within three (3) days of receipt of those collections, Bank will give
Borrower the receivables collections it receives for receivables other than
Financed Receivables and/or amount in excess of the amount for which Bank has
made an Advance to Borrower, less any amount due to Bank, such as the Finance
Charge, the Facility Fee, other fees and expenses, or otherwise. This Section
does not impose any affirmative duty on Bank to do any act other than to turn
over amounts. All receivables and collections are Collateral and if an Event of
Default occurs, Bank need not remit collections of Collateral and may apply them
to the Obligations.

                  3.8. GOOD FAITH DEPOSIT. Borrower has paid to Bank a Good
Faith Deposit of $20,000.00 to initiate Bank's due diligence review process.
Any portion of the deposit not utilized to pay expenses will be applied to the
Facility Fee.

         4.       REPAYMENT OF OBLIGATIONS.

                  4.1. REPAYMENT ON MATURITY. Borrower will repay each Advance
on the earliest of: (a) payment of the Financed Receivable in respect which the
Advance was made, (b) the Financed Receivable becomes an Ineligible Receivable,
(c) when any Adjustment is made to the Financed Receivable (but only to the
extent of the Adjustment if the Financed Receivable is not otherwise an
Ineligible Receivable), or (d) the last day of the Facility Period (including
any early termination). Each payment will also include all accrued Finance
Charges on the Advance and all other amounts due hereunder.

                  4.2. REPAYMENT ON EVENT OF DEFAULT. When there is an Event of
Default, Borrower will, if Bank demands (or, in an Event of Default under
Section 9(B), immediately without notice or demand from Bank) repay all of the
Advances. The demand may, at Bank's option, include the Advance for each
Financed Receivable then outstanding and all accrued Finance Charges, the Early
Termination Fee, Collateral Handling Fee, attorneys and professional fees, court
costs and expenses, and any other Obligations.

                  4.3. EARLY TERMINATION OF AGREEMENT. This Agreement may be
terminated prior to the last day of the Facility Period as follows: (i) by
Borrower, effective three Business Days after written notice of termination is
given to Bank; or (ii) by Bank at any time with notice to Borrower after the
occurrence of an Event of Default, effective immediately. If this Agreement is
terminated (A) by Bank in accordance with clause (ii) in the foregoing sentence
or (B) by Borrower for any reason, Borrower shall pay to Bank a termination fee
in an amount equal to Eighty Thousand Dollars ($80,000.00) (the "Early
Termination Fee"). The Early Termination Fee shall be due and payable on the
effective date of such termination and thereafter shall bear interest at a rate
equal to the highest rate applicable to any of the Obligations. Notwithstanding
the foregoing, Bank agrees to waive the Early Termination Fee if: (i) Bank
agrees to refinance and redocument this Agreement under another division of the
Bank (in its sole and exclusive discretion) prior to the last day of the
Facility Period, or (ii) Borrower terminates this Agreement within thirty (30)
days of the Closing Date, as a result of the Bank's failure to finance invoices
requested by Borrower, or (iii) Borrower terminates this Agreement as a result
of Bank's failure to consent to a transaction pursuant to Section 6.4(D).

         5.       POWER OF ATTORNEY. Borrower irrevocably appoints Bank and its
successors and assigns it attorney-in-fact and authorizes Bank:

                  (I) during an Event of Default, to:

                                    (A) sell, assign, transfer, pledge,
                           compromise, or discharge all or any part of the
                           Financed Receivables;

                                    (B) demand, collect, sue, and give releases
                           to any Account Debtor for monies due and compromise,
                           prosecute, or defend any action, claim, case or
                           proceeding about the Financed

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                           Receivables, including filing a claim or voting a
                           claim in any bankruptcy case in Bank's or Borrower's
                           name, as Bank chooses; and

                                    (C) prepare, file and sign Borrower's name
                           on any notice, claim, assignment, demand, draft, or
                           notice of or satisfaction of lien or mechanics'
                           lien or similar document in connection with
                           exercising the Bank's rights as contemplated by this
                           Agreement;

                  (II) regardless of whether there has been an Event of Default,
to:

                                    (A) notify all Account Debtors to pay Bank
                           directly;

                                    (B) receive, open, and dispose of mail
                           addressed to Borrower;

                                    (C) endorse Borrower's name on check or
                           other instruments (to the extent necessary to pay
                           amounts owed pursuant to this Agreement); and

                                    (D) execute on Borrower's behalf any
                           instruments, documents, financing statements to
                           perfect Bank's interests in the Financed Receivables
                           and Collateral and do all acts and things necessary
                           to protect, preserve, and otherwise enforce the
                           Bank's rights and remedies under this Agreement, as
                           directed by the Bank.

         6.       REPRESENTATIONS, WARRANTIES AND COVENANTS.

                  6.1. REPRESENTATIONS AND WARRANTIES. Borrower represents and
warrants for each Financed Receivable at the time of submission:

                                    (A) Borrower is the owner with legal right
                           to sell, transfer and assign it;

                                    (B) The correct amount is on the Invoice
                           Transmittal and is not disputed;

                                    (C) Payment is not contingent on any
                           obligation or contract and it has fulfilled all its
                           obligations as of the Invoice Transmittal date;

                                    (D) It is based on an actual sale and
                           delivery of goods and/or services rendered, due to
                           Borrower, it is not past due or in default, has not
                           been previously sold, assigned, transferred, or
                           pledged and is free of any liens, security interests
                           and encumbrances;

                                    (E) There are no defenses, offsets,
                           counterclaims or agreements for which the Account
                           Debtor may claim any deduction or discount;

                                    (F) Borrower has not filed or had filed
                           against it Insolvency Proceedings and does not
                           anticipate any filing;

                                    (G) Bank has the right to endorse and/ or
                           require Borrower to endorse all payments received on
                           Financed Receivables and all proceeds of Collateral;
                           and

                                    (H) No representation, warranty or other
                           statement of Borrower in any certificate or written
                           statement given to Bank contains any untrue statement
                           of a material fact.

                  6.2. ADDITIONAL REPRESENTATIONS AND WARRANTIES. Borrower
represents and warrants as follows:

                                    (A) Borrower is duly existing and in good
                           standing in its state of formation and qualified and
                           licensed to do business in, and in good standing in,
                           any state in which the conduct of its business or its
                           ownership of property requires that it be qualified.
                           The execution, delivery and performance of

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                           this Agreement has been duly authorized, and does not
                           conflict with Borrower's organizational documents or
                           constitute an Event of Default under any material
                           agreement by which Borrower is bound. Borrower is not
                           in default under any agreement to which or by which
                           it is bound.

                                    (B) Borrower has good title to the
                           Collateral.

                                    (C) Except as listed on SCHEDULE C attached
                           hereto, there are no actions or proceedings pending
                           or, to Borrower's knowledge, threatened by or against
                           Borrower or any Subsidiary of Borrower, in excess of
                           $150,000 in the aggregate.

                                    (D) All consolidated financial statements
                           for Borrower and any Subsidiary of Borrower delivered
                           to Bank fairly present in all material respects
                           Borrower's consolidated financial condition and
                           Borrower's consolidated results of operations. There
                           has not been any material deterioration in Borrower's
                           consolidated financial condition since the date of
                           the most recent financial statements submitted to
                           Bank.

                                    (E) Borrower is able to pay its debts
                           (including trade debts) as they mature.

                                    (F) No representation, warranty or other
                           statement of Borrower in this Agreement or any
                           certificate or written statement given to Bank
                           contains any untrue statement of a material fact.

                                    (G) To the best of Borrower's knowledge,
                           Borrower is not an "investment company" or a company
                           "controlled" by an "investment company" under the
                           Investment Company Act. Borrower is not engaged as
                           one of its important activities in extending credit
                           for margin stock (under Regulations X, T and U of the
                           Federal Reserve Board of Governors). Borrower has
                           complied with the Federal Fair Labor Standards Act.
                           To its knowledge, Borrower has not violated any laws,
                           ordinances or rules. None of Borrower's properties or
                           assets has been used by Borrower, to the best of
                           Borrower's knowledge, by previous persons, in
                           disposing, producing, storing, treating, or
                           transporting any hazardous substance other than
                           legally. Borrower has timely filed all required tax
                           returns and paid, or made adequate provision to pay,
                           all taxes. To its knowledge, Borrower has obtained
                           all consents, approvals and authorizations of, made
                           all declarations or filings with, and given all
                           notices to, all government authorities that are
                           necessary to continue its business as currently
                           conducted.

         6.3.     AFFIRMATIVE COVENANTS. Borrower will do all of the following:

                                    (A) Maintain its corporate existence and
                           good standing in its jurisdictions of incorporation
                           and maintain its qualification in each jurisdiction
                           necessary to Borrower's business or operations.

                                    (B) Pay all its taxes including gross
                           payroll, withholding and sales taxes when due (other
                           than taxes and assessments which Borrower is
                           contesting in good faith, with adequate reserves
                           maintained in accordance with GAAP) and will deliver
                           satisfactory evidence of payment if requested.

                                    (C) Provide a written report within sixty
                           (60) days after the invoice date respecting any
                           Financed Receivable (or as and when otherwise
                           directed by the Bank), if payment of any Financed
                           Receivable does not occur by its due date and include
                           the reasons for the delay.

                                    (D) Borrower shall deliver to Bank: (i) as
                           soon as available, but no later than thirty (30)
                           days after the last day of each month, a company
                           prepared consolidated balance sheet and income
                           statement, prepared under GAAP, consistently applied,
                           covering Borrower's consolidated operations during
                           the period, in a form and substance acceptable to
                           Bank, certified by Borrower; and (ii) budgets, sales
                           projections, operating plans or other financial
                           information Bank reasonably requests in a form of
                           presentation previously delivered by Borrower to
                           Bank.

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                                    (E) Borrower shall keep its business and the
                           Collateral insured for risks and in amounts, as
                           provided on the certificate of insurance delivered to
                           the Bank. All property policies shall have a lender's
                           loss payable endorsement showing Bank as an
                           additional loss payee and all liability policies
                           shall show the Bank as an additional insured and all
                           policies shall provide that the insurer must give
                           Bank at least twenty (20) days notice before
                           canceling its policy. At Bank's request, Borrower
                           shall deliver certified copies of policies and
                           evidence of all premium payments. Proceeds payable
                           under any policy shall, at Bank's option, be payable
                           to Bank on account of the Obligations.
                           Notwithstanding the foregoing, so long as no Event of
                           Default has occurred and is continuing, Borrower
                           shall have the option of applying the proceeds of
                           any casualty policy up to $200,000.00, in the
                           aggregate, toward the replacement or repair of
                           destroyed or damaged property; provided that (i) any
                           such replaced or repaired property (a) shall be of
                           equal or like value as the replaced or repaired
                           Collateral and (b) shall be deemed Collateral in
                           which Bank has been granted a first priority security
                           interest and (ii) after the occurrence and during the
                           continuation of an Event of Default all proceeds
                           payable under such casualty policy shall, at the
                           option of the Bank, be payable to Bank on account of
                           the Obligations. If Borrower fails to obtain
                           insurance as required under this Section or to pay
                           any amount or furnish any required proof of payment
                           to third persons and the Bank, Bank may make all or
                           part of such payment or obtain such insurance
                           policies required in this Section, and take any
                           action under the policies Bank deems prudent.

                                    (F) Execute any further instruments and take
                           further action as Bank reasonably requests to perfect
                           or continue Bank's security interest in the
                           Collateral or to effect the purposes of this
                           Agreement.

                                    (G) Provide Bank with a Compliance
                           Certificate along with monthly and annual financial
                           statements, or as requested by Bank.

                                    (H) Provide Bank with, as soon as available,
                           but no later than twenty (20) days following each
                           Reconciliation Period an aged listing of accounts
                           receivables and accounts payable, along with a
                           Deferred Revenue report. All of the foregoing shall
                           be in form and substance satisfactory to the Bank.

                                    (I) Immediately notify, transfer and deliver
                           to Bank all collections Borrower receives for
                           Financed Receivables (and, as and when required
                           hereunder, for all receivables).

                                    (J) Borrower shall direct each Account
                           Debtor (and each depository institution where
                           proceeds of accounts receivable are on deposit) to
                           make payments with respect to all receivables to a
                           lockbox account established with the Bank ("Lockbox")
                           or to wire transfer payments to a cash collateral
                           account that Bank controls, as and when directed by
                           the Bank from time to time, at its option and at the
                           sole and exclusive discretion of the Bank. Until such
                           Lockbox can be established, the Borrower shall remit
                           all receivable cash payments and remittances to the
                           Bank at least weekly (at the close of business on
                           each Friday) along with a detailed cash receipts
                           journal. It will be considered an immediate Event of
                           Default if the Lockbox is not set-up and operational
                           within 45 days from the date of this Agreement.

                                    (K) Borrower will allow Bank to audit
                           Borrower's Collateral, including, but not limited to,
                           Borrower's Accounts and accounts receivable, at
                           Borrower's expense, no later than ninety (90) days
                           after the execution of this Agreement and annually
                           thereafter, upon reasonable notice and during Bank's
                           normal business hours. Provided, however, if an Event
                           of Default has occurred and is continuing, Bank may
                           audit Borrower's Collateral, including, but not
                           limited to, Borrower's Accounts and accounts
                           receivable at Bank's sole and exclusive discretion
                           and without notification and authorization from
                           Borrower.

                                    (L) Borrower shall maintain, to be tested by
                           Bank on a quarterly basis: (i) an EBITDA no less

                                       -9-

<PAGE>

                           than ($1,000,000.00) for the quarter ending July 31,
                           2003, and (ii) an EBITDA of at least $1.00 for the
                           quarter ending October 31, 2003 and for each quarter
                           thereafter.

                                    (M) Maintain (together with Borrower's
                           Subsidiaries) all of Borrower's and Borrower's
                           Subsidiaries' primary operating, depository,
                           investment and securities accounts with Bank (or
                           Bank's affiliate with respect to securities
                           accounts), which accounts shall represent at least
                           80% of the dollar value of the Borrower's and such
                           Subsidiaries accounts at all financial institutions.

                  6.4. NEGATIVE COVENANTS. Borrower will not do any of the
following without Bank's prior written consent which shall not be unreasonably
withheld or delayed:

                                    (A) Assign, lease, transfer, sell or grant,
                           or permit any lien or security interest in the
                           Collateral, except for transfers (i) of inventory or
                           fixed assets in the ordinary course of business and
                           (ii) of worn-out or obsolete equipment, and (iii)
                           Permitted Liens.

                                    (B) Create, incur, assume, or be liable for
                           any Indebtedness, except for Permitted Indebtedness
                           and except as provided in 6.4(C) and (D) below.

                                    (C) Directly or indirectly enter into or
                           permit to exist any material transaction with any
                           affiliate or Subsidiary of Borrower or make any
                           distributions to any affiliate or Subsidiary, except
                           for the repayment and re-borrowing of up to $3,000
                           ,000.00 with Atlantic Investors, LLC pursuant to a
                           Loan and Security Agreement dated January 29, 2003
                           and pursuant to the terms of a certain Subordination
                           Agreement between the Bank, the Borrower and Atlantic
                           Investors, LLC, and transactions that are in the
                           ordinary course of Borrower's business, upon fair and
                           reasonable terms that are no less favorable to
                           Borrower than would be obtained in an arm's length
                           transaction with a nonaffiliated person, and except
                           for those transactions listed and summarized on
                           EXHIBIT 6.4(c).

                                    (D) Merge or consolidate, or permit any of
                           its Subsidiaries to merge or consolidate, with any
                           other Person, or acquire, or permit any of its
                           Subsidiaries to acquire, all or substantially all of
                           the capital stock or property of another Person.
                           Notwithstanding the foregoing, Borrower, or any of
                           its Subsidiaries may merge or consolidate with any
                           other Person, provided that (i) such other Person is
                           in the same, or a similar, line of business; (ii) no
                           Event of Default has occurred and is continuing or
                           would exist after giving effect to the transactions;
                           and (iii) the Borrower is the surviving legal entity.
                           In the event that the Bank's consent is required for
                           any merger or consolidation hereunder, the Bank will
                           respond promptly to any request for such consent, but
                           no later than within seven (7) business days of
                           being provided with a formal term sheet. After seven
                           (7) days the transaction will be deemed approved
                           unless a written denial of consent is provided to
                           Borrower.

                                    (E) Become an "investment company" or a
                           company controlled by an " investment company," under
                           the Investment Company Act of 1940 or undertake as
                           one of its important activities extending credit to
                           purchase or carry margin stock, or use the proceeds
                           of any Advance for that purpose; fail to meet the
                           minimum funding requirements of ERISA, permit a
                           Reportable Event or Prohibited Transaction, as
                           defined in ERISA, to occur; fail to comply with the
                           Federal Fair Labor Standards Act or violate any other
                           law or regulation, or permit any of its subsidiaries
                           to do so.

                                    (F) Relocate its principal executive office
                           or add any new offices or business locations or keep
                           any Collateral in any additional locations, or (ii)
                           change its state of formation, or (iii) change its
                           organizational structure except for mergers,
                           acquisitions and consolidations with affiliates,
                           provided that the Borrower is the surviving legal
                           entity or (iv) change its legal name, or (v) change
                           any organizational number (if any) assigned by its
                           state of formation.

                                    (G) Keep any Collateral in the possession of
                           any third party bailee (such as at a warehouse),
                           except for back-up tapes stored with any third party
                           bailee in the ordinary course of business. In the
                           event that Borrower, after the date hereof, intends
                           to store or otherwise deliver any Collateral

                                      -10-

<PAGE>

                           to such a bailee, then Borrower shall receive the
                           prior written consent of Bank and such bailee must
                           acknowledge in writing that the bailee is holding
                           such Collateral for the benefit of Bank.

                                    (H) Create, incur, or allow any lien on any
                           of its property, other than Permitted Liens, assign
                           or convey any right to receive income, including the
                           sale of any Accounts, or permit any Collateral not to
                           be subject to the first priority security interest
                           granted herein.

                                    (I) Except as provided in Section 6.4 (C)
                           and (D) above, directly or indirectly acquire or own
                           any Person, or make any investment in any Person,
                           other than Permitted Investments, or permit any of
                           its Subsidiaries to do so; or pay any dividends or
                           make any distribution or payment or redeem, retire or
                           purchase any capital stock.

                                    (J) Make or permit any payment on any
                           Subordinated Debt, except under the terms of the
                           Subordinated Debt, or amend any provision in any
                           document relating to the Subordinated Debt, without
                           Bank's prior written consent.

         7.       ADJUSTMENTS. If any Account Debtor asserts a discount,
allowance, return, offset, defense, warranty claim, or the like on a Financed
Receivable (an "Adjustment") or if Borrower breaches any of the
representations, warranties or covenants set forth in Section 6, Borrower will
promptly advise Bank.

         8.       SECURITY INTEREST. Borrower grants Bank a continuing security
interest in all presently existing and later acquired Collateral to secure all
Obligations and performance of each of Borrower's duties under this Agreement.
Any security interest shall be a first priority security interest in the
Collateral. The Collateral may also be subject to Permitted Liens. Bank may
place a "hold" on any deposit account pledged as Collateral. Except as
disclosed to Bank on SCHEDULE 8, Borrower is not a party to, nor is bound by,
any material license or other material agreement with respect to which the
Borrower is the licensee that prohibits or otherwise restricts Borrower from
granting a security interest in Borrower's interest in such license or agreement
or any other property. Without prior consent from Bank, Borrower shall not enter
into, or become bound by, any such license or agreement which is reasonably
likely to have a material impact on Borrower's business or financial condition.
Borrower shall take such reasonable steps as Bank reasonably requests to obtain
the consent of, or waiver by, any person whose consent or waiver is necessary
for all such licenses or contract rights to be deemed "Collateral" and for Bank
to have a security interest in it that might otherwise be restricted or
prohibited by law or by the terms of any such license or agreement, whether now
existing or entered into in the future.

                  Borrower agrees that any disposition of the Collateral in
violation of this Agreement, by either the Borrower or any other Person, shall
be deemed to violate the rights of the Bank under the Massachusetts Uniform
Commercial Code. If the Agreement is terminated, Bank's lien and security
interest in the Collateral shall continue until Borrower fully satisfies its
Obligations. Upon repayment of all Obligations and the termination of Bank's
commitment to finance receivables hereunder, Bank shall promptly deliver to
Borrower all appropriate termination statements and releases to evidence the
termination of the Agreement and the security interest granted herein. If
Borrower shall at any time during the term of this Agreement, acquire a
commercial tort claim, Borrower shall promptly notify Bank in a writing signed
by Borrower of the brief details thereof and grant to Bank in such writing a
security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, with such writing to be in form and substance satisfactory to
Bank.

         9.       EVENTS OF DEFAULT. Any one or more of the following is an
Event of Default.

                                    (A) Borrower fails to pay any amount owed
                           to Bank when due under this Agreement;

                                    (B) Borrower files, or has filed against it,
                           any Insolvency Proceedings or any assignment for the
                           benefit of creditors, or appointment of a receiver or
                           custodian for any of its assets, and, to the extent
                           such filing is in connection with proceedings by or
                           against any person under the United States Bankruptcy
                           Code or any other bankruptcy law, is not removed or
                           dismissed within ten (10 business days;

                                      -11-

<PAGE>

                                    (C) Borrower becomes insolvent or is
                           generally not paying its debts as they become due;

                                    (D) Any involuntary lien, garnishment,
                           attachment (other than Permitted Liens) attaches to
                           the Financed Receivables or any Collateral or the
                           service of process upon Bank seeking to attach, by
                           mesne or trustee process any funds of Borrower on
                           deposit with Bank;

                                    (E) Borrower breaches any material covenant,
                           agreement, warranty, or representation set forth in
                           this Agreement and such breach is not cured within
                           ten(10) days of the occurrence thereof;

                                    (F) A judgment or judgments for the payment
                           of money in an amount, individually or in the
                           aggregate, of at least Two Hundred Thousand Dollars
                           ($200,000) shall be rendered against Borrower and
                           shall remain unsatisfied and unstayed for a period of
                           twenty-five (25) days;

                                    (G) Borrower is in default under any
                           document, instrument or agreement evidencing any
                           debt, obligation or liability in favor of Bank its
                           affiliates, or vendors in excess of $250,000 in the
                           aggregate, regardless of whether the debt, obligation
                           or liability is direct or indirect, primary or
                           secondary, or fixed or contingent;

                                    (H) An event of default occurs under any
                           guaranty of the Obligations or any material provision
                           of any such guaranty is not valid or enforceable or
                           such guaranty is repudiated or terminated;

                                    (I) A material default or Event of Default
                           occurs under any agreement between Borrower and any
                           creditor of Borrower that signed a subordination
                           agreement with Bank;

                                    (J) Any creditor of Borrower that has signed
                           a subordination agreement with Bank breaches any
                           terms of the subordination agreement; or

                                    (K) Any of the following occurs: (i) a
                           material impairment in the perfection or priority of
                           Bank's security interest in the Collateral or in the
                           value of such Collateral; or (ii) a material adverse
                           change in the business, operations, or condition
                           (financial or otherwise) of the Borrower occurs; or
                           (iii) a material impairment of the ability of
                           Borrower to repay any portion of the Obligations; or
                           (iv) Bank determines, based upon information provided
                           by Borrower and in its reasonable judgment, that
                           there is a substantial likelihood that Borrower shall
                           fail to comply with one or more of the financial
                           covenants in Section 6.3 during the next succeeding
                           financial reporting period.

         10.      REMEDIES.

                  10.1.    REMEDIES UPON DEFAULT. When an Event of Default
occurs, (1) Bank may stop financing receivables or extending credit to Borrower;
(2) at Bank's option and on demand, all or a portion of the Obligations (or, for
an Event of Default described in Section 9(B), automatically and without demand)
are due and payable in full; (3) the Bank may apply to the Obligations any (i)
balances and deposits of Borrower it holds, or (ii) any amount held by Bank
owing to or for the credit or the account of Borrower; (4) Bank may exercise all
rights and remedies under this Agreement and applicable law, including those of
a secured party under the Code, power of attorney rights in Section 5 for the
Collateral, and the right to ship, reclaim, recover, store, finish, maintain,
repair, prepare for sale, advertise for sale, collect, dispose of, sell, lease,
use, and realize upon all Financed Receivables and Collateral in any commercial
manner; and (5) Bank may make any payments and do any acts it considers
necessary or reasonable to protect its security interest in the Collateral.
Borrower shall assemble the Collateral if Bank requests and make it available as
Bank designates. Bank may enter premises where the Collateral is located, take
and maintain possession of any part of the Collateral, and pay, purchase,
contest, or compromise any lien which appears to be prior or superior to its
security interest and pay all expenses incurred. Borrower grants Bank a license
to enter and occupy any of its premises, without charge, to exercise any of
Bank's rights or remedies. Borrower agrees that any notice of

                                      -12-

<PAGE>

sale required to be given to Borrower is deemed given if at least ten (10) days
before the sale may be held.

                  10.2.    DEMAND WAIVER. Borrower waives demand, notice of
default or dishonor, notice of payment and nonpayment, notice of any default,
nonpayment at maturity, release, compromise, settlement, extension, or renewal
of accounts, documents, instruments, chattel paper, and guaranties held by Bank
on which Borrower is liable.

                  10.3.    DEFAULT RATE. After the occurrence of an Event of
Default, all Obligations shall accrue interest at the Applicable Rate plus three
percent (3.0%) per annum.

         11.      FEES, COSTS AND EXPENSES. The Borrower will pay on demand all
fees, costs and expenses (including attorneys' and professionals fees with costs
and expenses) that Bank incurs from: (a) preparing, negotiating, and enforcing
this Agreement or related agreement, including any amendments, waivers or
consents, (b) any litigation or dispute except as provided in Section 14.2,
below, relating to the Financed Receivables, the Collateral, this Agreement or
any other agreement, (c) enforcing any rights against Borrower or any guarantor,
or any Account Debtor, (d) protecting or enforcing its interest in the Financed
Receivables or other Collateral, (e) collecting the Financed Receivables and the
Obligations, and (f) any bankruptcy case or insolvency proceeding involving
Borrower, any Financed Receivable, the Collateral, any Account Debtor.

         12.      CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER. This Agreement
shall be construed, governed, and enforced pursuant to the laws (without regard
to conflict of law principles) of The Commonwealth of Massachusetts. Borrower
and Bank each submits to the exclusive jurisdiction of the State and Federal
courts in Suffolk County, Massachusetts.

         BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR ANY
CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL
OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER
INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

         13.      NOTICES. Notices or demands by either party about this
Agreement must be in writing and personally delivered or sent by an overnight
delivery service, by certified mail postage prepaid return receipt requested, or
by FAX to the addresses listed at the beginning of this Agreement. A party may
change notice address by written notice to the other party.

         14.      GENERAL PROVISIONS.

                  14.1.    SUCCESSORS AND ASSIGNS. This Agreement binds and is
for the benefit of successors and permitted assigns of each party. Borrower may
not assign this Agreement or any rights under it without Bank's prior written
consent which may be granted or withheld in Bank's discretion. Bank may,
without the consent of or notice to Borrower, sell, transfer, or grant
participation in any part of Bank's obligations, rights or benefits under this
Agreement, provided such successor or assignee is a financial institution.

                  14.2.    INDEMNIFICATION. Borrower will indemnify, defend and
hold harmless Bank and its officers, employees, and agents against: (a)
obligations, demands, claims, and liabilities asserted by any other party in
connection with the transactions contemplated by this Agreement; and (b) losses
or expenses incurred, or paid by Bank from or consequential to transactions
between Bank and Borrower (including reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

                  14.3.    RIGHT OF SET-OFF. Borrower and any guarantor hereby
grant to Bank, a lien, security interest and right of setoff as security for all
Obligations to Bank, whether now existing or hereafter arising upon and against
all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of Bank or any entity under the
control of Silicon Valley Bank or in transit to any of them. At any time after
the occurrence and during the continuance of an Event of Default, without demand
or notice, Bank may set off the same or any part thereof and apply the same to
any liability or obligation of Borrower and any guarantor even though unmatured
and

                                      -13-

<PAGE>

regardless of the adequacy of any other collateral securing the Obligations. ANY
AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT
TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING
ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF
THE BORROWER OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
WAIVED.

                  14.4.    TIME OF ESSENCE. Time is of the essence for
performance of all obligations in this Agreement.

                  14.5.    APPLICATION OF FUNDS. Borrower agrees that any
disposition of the Collateral in violation of this Agreement, by either the
Borrower or any other Person, shall be deemed to violate the rights of the Bank
under the Code.

                  14.6.    SEVERABILITY OF PROVISION. Each provision of this
Agreement is severable from every other provision in determining the
enforceability of any provision.

                  14.7.    AMENDMENTS IN WRITING, INTEGRATION. All amendments to
this Agreement must be in writing. This Agreement is the entire agreement about
this subject matter and supersedes prior negotiations or agreements.

                  14.8.    COUNTERPARTS. This Agreement may be executed in any
number of counterparts and by different parties on separate counterparts and
when executed and delivered are one Agreement.

                  14.9.    REMEDIES CUMULATIVE. Bank's rights and remedies under
this Agreement, or any other documents, instruments and agreement by and between
Borrower and Bank are cumulative. Bank has all rights and remedies provided
under the Code, by law, or in equity. Bank's exercise of one right or remedy is
not an election, and Bank's waiver of any Event of Default is not a continuing
waiver. Bank's delay is not a waiver, election, or acquiescence. No waiver
hereunder shall be effective unless signed by Bank and then is only effective
for the specific instance and purpose for which it was given.

                  14.10.   SURVIVAL. All covenants, representations and
warranties made in this Agreement continue in force while any Financed
Receivable amount remains outstanding. Borrower's indemnification obligations
survive until all statutes of limitations for actions that may be brought
against Bank have run.

                  14.11.   CONFIDENTIALITY. Bank will use the same degree of
care handling Borrower's confidential information that it uses for its own
confidential information and in no less than all reasonable efforts, but may
disclose information; (i) to its subsidiaries or affiliates in connection with
their business with Borrower, (ii) to prospective transferees or purchasers of
any interest in the Agreement, (iii) as required by law, regulation, subpoena,
or other order, (iv) as required in connection with an examination or audit
and (v) as it considers appropriate exercising the remedies under this
Agreement. Confidential information does not include information that is either:
(a) in the public domain or in Bank's possession when disclosed, or becomes part
of the public domain after disclosure to Bank through no act or omission by
Bank or its employees representatives or agents; or (b) disclosed to Bank by a
third party, if Bank does not know that the third party is prohibited from
disclosing the information.

                  14.12.   BORROWER LIABILITY. Any Borrower may request Advances
hereunder. Each Borrower hereby appoints the others as such Borrower's agent for
all purposes hereunder, except with respect to requesting Advances hereunder.
Each Borrower hereunder shall be obligated to repay all Advances made hereunder,
regardless of which Borrower actually receives said Advance, as if each Borrower
hereunder directly received all Advances.

                  14.13.   SUBROGATION AND SIMILAR RIGHTS. Notwithstanding any
other provision of this Agreement or other related document, each Borrower
irrevocably subordinates all rights that it may have at law or in equity
(including, without limitation, any law subrogating such Borrower to the rights
of Bank under the Loan Documents) to seek contribution, indemnification or any
other form of reimbursement from any other Borrower, or any other Person now or
hereafter primarily or secondarily liable for any of the Obligations, for any
payment made by such Borrower with respect to the Obligations in connection with
the Loan Documents or otherwise and all rights that it might have to benefit
from, or to participate in, any security for the Obligations as a result of any
payment made by

                                      -14-

<PAGE>

the Borrowers with respect to the Obligations in connection with the Loan
Documents or otherwise. Any agreement providing for indemnification,
reimbursement or any other arrangement prohibited under this Section shall not
be enforced while this Agreement is in force. If any payment is made to a
Borrower in contravention of this Section, such Borrower shall hold such payment
in trust for Bank and such payment shall be promptly delivered to Bank for
application to the Obligations, whether matured or unmatured.

                  14.14.   ACCOUNTING AND OTHER TERMS. Accounting terms not
defined in this Agreement shall be construed following GAAP. Calculations and
determinations must be made following GAAP. The term "financial statements"
includes the notes and schedules. The terms "including" and "includes" always
mean "including (or includes) without limitation," in this or any document
executed in connection herewith. All terms contained in this Agreement, unless
otherwise indicated or defined herein, shall have the meanings provided by the
Code, to the extent such terms are defined there in.

                  14.15.   OTHER AGREEMENTS. This Agreement may not adversely
affect Banks rights under any other document or agreement. If there is a
conflict between this Agreement and any agreement between Borrower and Bank,
Bank may determine in its sole discretion which provision applies. Borrower
acknowledges that any security agreements, liens and /or security interests
securing payment of Borrower's Obligations also secure Borrower's Obligations
under this Agreement and are not adversely affected by this Agreement.

                                      -15-

<PAGE>

         EXECUTED under seal as of the date first written above.

"BORROWER"

NAVISITE, INC.

By /s/ Jim Pluntze
  -------------------------------------

Title Chief Financial Officer
     ----------------------------------

CLEARBLUE TECHNOLOGIES MANAGEMENT, INC.

By /s/ Jim Pluntze
  -------------------------------------

Title Chief Financial Officer
     ----------------------------------

AVASTA, INC.

By /s/ Jim Pluntze
  -------------------------------------

Title Chief Financial Officer
     ----------------------------------

CONXION CORPORATION

By /s/ Jim Pluntze
  -------------------------------------

Title Chief Financial Officer
     ----------------------------------

INTREPID ACQUISITION CORP.

By /s/ Jim Pluntze
  -------------------------------------

Title Chief Financial Officer
     ----------------------------------

"BANK"

SILICON VALLEY BANK

By /s/ David Reich
  -------------------------------------

Title Vice President
     ----------------------------------

                                      -16-

<PAGE>

                                   EXHIBIT A

         The Collateral consists of all of Borrower's right, title and interest
in and to the following:

                  All goods, equipment, inventory, contract rights or rights to
payment of money, leases, license agreements, franchise agreements, general
intangibles (including payment intangibles), accounts (including health-care
receivables), documents, instruments (including any promissory notes), chattel
paper (whether tangible or electronic), cash, deposit accounts, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a
writing), commercial tort claims, securities, and all other investment property
supporting obligations, and financial assets, whether now owned or hereafter
acquired, wherever located; and

                  Any copyright rights, copyright applications, copyright
registrations and like protections in each work of authorship and derivative
work, whether published or unpublished, now owned or later acquired; any
patents, trademarks, service marks and applications therefor; trade styles,
trade names, any trade secret rights, including any rights to unpatented
inventions, know-how, operating manuals, license rights and agreements and
confidential information, now owned or hereafter acquired; or any claims for
damages by way of any past, present and future infringement of any of the
foregoing; and

                  All Borrower's Books relating to the foregoing and any and all
claims, rights and interests in any of the above and all substitutions for,
additions, attachments, accessories, accessions and improvements to and
replacements, products, proceeds and insurance proceeds of any or all of the
foregoing.

                                      -17-

<PAGE>

                                   EXHIBIT "B"

                                     (LOGO)

                               SILICON VALLEY BANK
                           SPECIALTY FINANCE DIVISION

                             Compliance Certificate

I, as authorized officer of NAVISITE, INC. ("Borrower") certify under the
Accounts Receivable Financing Agreement (the "Agreement") between Borrower and
Silicon Valley Bank ("Bank") as follows.

BORROWER REPRESENTS AND WARRANTS FOR EACH FINANCED RECEIVABLE:

         It is the owner with legal right to sell, transfer and assign it;

         The correct amount is on the Invoice Transmittal and is not disputed;

         Payment is not contingent on any obligation or contract and it has
fulfilled all its obligations as of the Invoice Transmittal date;

         It is based on an actual sale and delivery of goods and/or services
rendered, due to Borrower, it is not past due or in default, has not been
previously sold, assigned, transferred, or pledged and is free of any liens,
security interests and encumbrances;

         There are no defenses, offsets, counterclaims or agreements for which
the Account Debtor may claim any deduction or discount;

         It reasonably believes no Account Debtor is insolvent or subject to
any Insolvency Proceedings;

         It has not filed or had filed against it proceedings and does not
anticipate any filing;

         Bank has the right to endorse and/ or require Borrower to endorse all
payments received on Financed Receivables and all proceeds of Collateral.

         No representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank contains any untrue statement of
a material fact or omits to state a material fact necessary to make the
statement contained in the certificates or statement not misleading.

         ADDITIONALLY, BORROWER REPRESENTS AND WARRANTS AS FOLLOWS:

         Borrower is duly existing and in good standing in its state of
formation and qualified and licensed to do business in, and in good standing in,
any state in which the conduct of its business or its ownership of property
requires that it be qualified. The execution, delivery and performance of this
Agreement has been duly authorized, and do not conflict with Borrower's
formations documents, nor constitute an Event of Default under any material
agreement by which Borrower is bound. Borrower is not in default under any
agreement to which or by which it is bound.

         Borrower has good title to the Collateral. All inventory is in all
material respects of good and marketable quality, free from material defects.

         Borrower is not an "investment company" or a company "controlled" by
an "investment company" under the

                                      -18-

<PAGE>

Investment Company Act. Borrower is not engaged as one of its important
activities in extending credit for margin stock (under Regulations X, T and U of
the Federal Reserve Board of Governors). Borrower has complied with the Federal
Fair Labor Standards Act. Borrower has not violated any laws, ordinances or
rules. None of Borrower's properties or assets has been used by Borrower, to the
best of Borrower's knowledge, by previous persons, in disposing, producing,
storing, treating, or transporting any hazardous substance other than legally.
Borrower has timely filed all required tax returns and paid, or made adequate
provision to pay, all taxes. Borrower has obtained all consents, approvals and
authorizations of, made all declarations or filings with, and given all notices
to, all government authorities that are necessary to continue its business as
currently conducted.

         All representations and warranties in the Agreement are true and
correct in all material respects on this date.

Sincerely,

_______________________________________

SIGNATURE

_______________________________________
TITLE

_______________________________________
DATE

                                      -19-<PAGE>
                                                                    Exhibit 10.5

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT is entered into as of May 27, 2003
by and between Silicon Valley Bank ("Purchaser") and NaviSite, Inc., a Delaware
corporation (the "Company").

                                    RECITALS

         A.       Concurrently with the execution of this Agreement, Purchaser
is acquiring from the Company a Warrant to Purchase Stock (the "Warrant")
pursuant to which Purchaser has rights to acquire from the Company the Shares
(as defined in the Warrant).

         B.       By this Agreement, Purchaser and the Company desire to set
forth the registration rights of the Shares.

                  NOW, THEREFORE, in consideration of the premises and the
mutual promises, covenants and conditions hereinafter set forth, the parties
hereto mutually agree as follows:

         1.       Registration Rights. The Company covenants and agrees as
follows:

                  1.1      Definitions. For purposes of this Section 1:

                           (a)      The term "register," "registered," and
"registration" refer to a registration effected by preparing and filing a
registration statement or similar document in compliance with the Securities Act
of 1933, as amended, and the rules and regulations thereunder (the "Securities
Act"), and the declaration or ordering of effectiveness of such registration
statement or document;

                           (b)      The term "Registrable Securities" means (i)
the Shares, and (ii) any Common Stock or other securities of the Company issued
as (or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect to,
or in exchange for or in replacement of, the Shares; provided, that shares of
Common Stock which are Registrable Securities shall cease to be Registrable
Securities upon any public sale pursuant to an effective registration statement
or Rule 144 under the Securities Act.

                           (c)      The terms "Holder" or "Holders" means
Purchaser and its qualifying transferees under subsection 1.8 hereof who hold
Registrable Securities.

                           (d)      The term "SEC" means the Securities and
Exchange Commission.

                           (e)      The terms "Form S-1," "Form S-3" etc. shall
mean those forms with such designations as are required by the SEC and any
successor or replacement forms adopted by the SEC.

                  1.2      Company Registration.

                           (a)      Registration. If at any time or from time to
time, the Company shall determine to register any of its securities, for its own
account or the account of any of its shareholders, other than a registration on
Form S-8 relating solely to employee stock option or purchase plans or on Form
S-4 relating solely to an SEC Rule 145 transaction, the Company will:

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

<PAGE>

                                    (ii)     include in such registration (and
qualifications), and in any underwriting involved therein, all the Registrable
Securities specified in a written request or requests, made within 15 days after
receipt of such written notice from the Company, by any Holder or Holders,
except as set forth in subsection 1.2(c) below.

                           (b)      Underwriting. If the registration of which
the Company gives notice is for a registered public offering involving a
firm-commitment underwriting, the Company shall so advise the Holders as a part
of the written notice given pursuant to subsection 1.2(a)(i). In such event the
right of any Holder to registration pursuant to this subsection 1.2 shall be
conditioned upon such Holder's participation in such underwriting and the
inclusion of such Holder's Registrable Securities in the underwriting to the
extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company and the other
shareholders distributing their securities through such underwriting) enter into
an underwriting agreement in customary form (and not inconsistent with the terms
hereof) with the underwriter or underwriters selected for such underwriting by
the Company.

                           (c)      In the case of any registration of Common
Stock by the Company in a firm-commitment underwriting, if the managing
underwriters give written advice to the Company that marketing factors require a
limitation on the number of shares of Common Stock (or other securities
convertible into or exercisable or exchangeable for Common Stock) to be offered
and sold by stockholders of Company in such offering, there shall be included in
the offering: (i) first, all securities proposed by Company to be sold for its
account; and (ii) second, that number of shares of Common Stock, if any,
requested to be included in such registration statement by Holders and by other
stockholders of the Company having contractual rights to include shares in such
registration, on a pro rata basis based upon the number of shares of Common
Stock each Holder and each such other stockholder beneficially owns.

                  1.3      Expenses of Registration. All expenses incurred in
connection with any registration, qualification or compliance pursuant to this
Section , including without limitation, all registration, filing and
qualification fees, printing expenses, fees and disbursements of counsel for the
Company and expenses of any special audits incidental to or required by such
registration (but excluding underwriting fees, discounts and commissions
attributable to Registrable Securities included in such registration and the
fees and expenses of separate legal counsel for the Holders, if any), shall be
borne by the Company. All expenses of any registered offering not otherwise
borne by the Company will be borne pro rata among the Holders, any other
shareholders of the Company participating in such offering and the Company.

                  1.4      Registration Procedures. In the case of each
registration, qualification or compliance effected by the Company pursuant to
this Registration Rights Agreement, the Company will, at its expense:

                           (a)      Prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use its best efforts
to cause such registration statement to become effective, and, upon the request
of the Holders of a majority of the Registrable Securities registered
thereunder, keep such registration statement effective for up to 120 days (the
"Effective Period"); provided, that the Company shall have the right to postpone
or withdraw any registration initiated pursuant to this Section 1.4 without
liability to any Holder if the Company's Board of Directors determines that such
postponement or withdrawal is in the best interests of the Company.

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

                           (c)      Furnish to the Holders such numbers of
copies of a prospectus, including a preliminary prospectus, in conformity with
the requirements of the Securities Act, and such other

                                       -2-

<PAGE>

documents as they may reasonably request in order to facilitate the disposition
of Registrable Securities owned by them.

                           (d)      Use its best efforts to register and qualify
the securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions.

                           (e)      In the event of any underwritten public
offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter of such
offering. Each Holder participating in such underwriting shall also enter into
and perform its obligations under such an agreement provided that all other
shareholders of the Company participating in such offering do the same.

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

                  1.5      Indemnification.

                           (a)      The Company will indemnify each Holder of
Registrable Securities and each of its officers, directors and partners, and
each person controlling such Holder within the meaning of Section 15 of the
Securities Act ("controlling person"), and each underwriter, if any, and each
controlling person of such underwriter, with respect to which registration,
qualification or compliance of Registrable Securities has been effected pursuant
to this Registration Rights Agreement, against all claims, losses, expenses,
damages and liabilities (or actions in respect thereto) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any prospectus, offering circular or other document (including any
related registration statement, notification or the like) incident to any such
registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statement therein not misleading, or any violation or
alleged violation by the Company of the Securities Act, the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder ("Exchange
Act") or any state securities law applicable to the Company or any rule or
regulation promulgated any such state law and relating to action or inaction
required of the Company in connection with any such registration, qualification
or compliance, and will reimburse each such Holder, each of its officers,
directors and partners, and each person controlling such Holder, each such
underwriter and each person who controls any such underwriter, within a
reasonable amount of time after incurred for any reasonable legal and any other
reasonable expenses incurred in connection with investigating, defending or
settling any such claim, loss, damage, liability or action; provided, however,
that the indemnity agreement contained in this subsection 1.5(a) shall not apply
to amounts paid in settlement of any such claim, loss, damage, liability, or
action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld or delayed); and provided further,
that the Company will not be liable in any such case to the extent that any such
claim, loss, damage or liability arises out of or is based on any untrue
statement or omission made in reliance upon and conformity with written
information furnished to the Company specifically for use therein by an
instrument duly executed by such Holder.

                           (b)      Each Holder will, if Registrable Securities
held by or issuable to such Holder are included in the securities as to which
such registration, qualification or compliance is being effected,

                                       -3-

<PAGE>

indemnify the Company, each of its directors, officers and controlling persons,
each underwriter, if any, of the Company's securities covered by such a
registration statement, and each controlling person of such underwriter, and
each other Holder, each of its officers, directors, partners and controlling
persons, against all claims, losses, expenses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, partners, persons or
underwriters for any reasonable legal or any other reasonable expenses incurred
in connection with investigating, defending or settling any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company specifically for use therein by an instrument duly
executed by such Holder; provided, however, that the indemnity agreement
contained in this subsection 1.5(b) shall not apply to amounts paid in
settlement of any such claim, loss, damage, liability or action if such
settlement is effected without the consent of the Holder, (which consent shall
not be unreasonably withheld or delayed); and provided further, that the total
amount for which any Holder shall be liable under this subsection 1.5(b) shall
not in any event exceed the aggregate net proceeds received by such Holder from
the sale of Registrable Securities held by such Holder in such registration.

                           (c)      Each party entitled to indemnification under
this subsection 1.5 (the "Indemnified Party") shall give notice to the party
required to provide indemnification (the "Indemnifying Party") promptly after
such Indemnified Party has actual knowledge of any claim as to which indemnity
may be sought, and shall permit the Indemnifying Party to assume the defense of
any such claim or any litigation resulting therefrom; provided that counsel for
the Indemnifying Party, who shall conduct the defense of such claim or
litigation, shall be approved by the Indemnified Party (whose approval shall not
be unreasonably withheld), and the Indemnified Party may participate in such
defense at such party's expense; and provided further, that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations hereunder, unless such failure resulted in
prejudice to the Indemnifying Party; and provided further, that an Indemnified
Party (together with all other Indemnified Parties which may be represented
without conflict by one counsel) shall have the right to retain one separate
counsel, with the fees and expenses to be paid by the Indemnifying Party, if
representation of such Indemnified Party by the counsel retained by the
Indemnifying Party would be inappropriate due to actual or potential differing
interests between such Indemnified Party and any other party represented by such
counsel in such proceeding. No Indemnifying Party, in the defense of any such
claim or litigation, shall, except with the consent of each Indemnified Party,
consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party of a release from all liability in respect to such
claim or litigation.

                           (d)      In order to provide for just and equitable
contribution in circumstances in which the indemnification provided for in this
Section 1.5 is due in accordance with its terms but for any reason is judicially
determined to be unenforceable against the Indemnifying Party or otherwise
unavailable to the Indemnified Party in respect to any losses, claims, damages
and liabilities referred to herein, then the Indemnifying Party shall, in lieu
of indemnifying such Indemnified Party, contribute to the amount paid or payable
by such Indemnified party as a result of such losses, claims, damages or
liabilities to which such party may be subject in such proportion as is
appropriate to reflect the relative fault of the Company, on the one hand, and
the selling Holders, on the other hand, in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Company and such selling Holders shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement, or omission or
alleged omission, of material fact related to the information supplied by the
Company or such selling Holders and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The

                                       -4-

<PAGE>

Company and Holders agree that it would not be just and equitable if
contribution pursuant to this Section 1.5(d) were determined by pro rata
allocation or any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this Section 1.5(d), (i) in no case shall any Holder be liable or responsible
for any amount in excess of the net proceeds received by such Holder from the
sale of Registrable Securities pursuant to such registration; and (ii) no person
adjudged guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not adjudged guilty of such fraudulent misrepresentation. Any party
entitled to contribution shall, promptly after receipt of notice of commencement
of any action, suit or proceeding against such party in respect of which a claim
for contribution may be made against another party or parties under this Section
1.5(d), notify such party or parties from whom contribution may be sought, but
the omission so to notify such party or parties from whom contribution may be
sought shall not, in the absence of actual prejudice to such party or parties,
relieve it or them from such contribution obligation. No party shall be liable
for contribution with respect to any action, suit, proceeding or claim settled
without its written consent.

                           (e)      Notwithstanding the other provisions of
Section 1.5 of this Agreement, in the event of a firm-commitment underwriting in
which any Holder participates, the indemnification provisions of the executed
underwriting agreement shall govern as among such Holder and the other parties
thereto in lieu of the indemnification provisions of this Section.

                  1.6      Information by Holder. Any Holder or Holders of
Registrable Securities included in any registration shall promptly furnish to
the Company such information regarding such Holder or Holders and the
distribution proposed by such Holder or Holders as the Company may request in
writing and as shall be required in connection with any registration,
qualification or compliance referred to herein.

                  1.7      Rule 144 Reporting. With a view to making available
to Holders the benefits of certain rules and regulations of the SEC which may
permit the sale of the Registrable Securities to the public without
registration, the Company agrees at all times to:

                           (a)      make and keep public information available,
as those terms are understood and defined in SEC Rule 144, after 90 days after
the effective date of the first registration filed by the Company for an
offering of its securities to the general public;

                           (b)      file with the SEC in a timely manner all
reports and other documents required of the Company under the Securities Act and
the Exchange Act (at any time after it has become subject to such reporting
requirements); and

                           (c)      so long as a Holder owns any Registrable
Securities, to furnish to such Holder forthwith upon request a written statement
by the Company as to its compliance with the reporting requirements of said Rule
144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), a copy of the most
recent annual or quarterly report of the Company, and such other reports and
documents so filed by the Company as the Holder may reasonably request in
complying with any rule or regulation of the SEC allowing the Holder to sell any
such securities without registration.

                  1.8      Transfer of Registration Rights. Holders' rights to
cause the Company to register their securities and keep information available,
granted to them by the Company under subsections 1.2 and 1.7 may be assigned to
a transferee or assignee of a Holder's Registrable Securities not sold to the
public, provided, that the Company is given written notice by such Holder at the
time of or within a reasonable time after said transfer, stating the name and
address of said transferee or assignee and identifying the securities with
respect to which such registration rights are being assigned.

                                       -5-

<PAGE>

                  1.9      Market "Stand-Off." At all times prior to the
termination fo the Company's registration obligations with respect to
Registrable Securities pursuant to Section 2.9 below, each Holder agrees, if
requested in writing by the Company and the managing underwriter, not to sell,
assign, donate, pledge, encumber, hypothecate, grant an option to, or otherwise
transfer or dispose of, whether in privately negotiated or open market
transactions, any Common Stock or other securities of the Company held by it
during a period not to exceed one hundred eighty (180) days following the
effective date of any registration statement (except to the extent of such
Holder's participation in such registration) effected in connection with an
underwritten offering and sale by the Company of Common Stock or other
securities for its own account, provided that all officers, directors and key
employees of the Company, and all holders of contractual registration rights
with the Company, shall also enter into similar agreements. Such agreement shall
be in writing in form and substance reasonably satisfactory to the Company and
such managing underwriter. The Company may impose stop-transfer instructions
with respect to the shares subject to the foregoing restrictions until the end
of said 180-day period.

         2.       General.

                  2.1      Waivers and Amendments. With the written consent of
the record or beneficial holders of at least a majority of the Registrable
Securities, the obligations of the Company and the rights of the Holders of the
Registrable Securities under this agreement may be waived (either generally or
in a particular instance, either retroactively or prospectively, and either for
a specified period of time or indefinitely), and with the same consent the
Company, when authorized by resolution of its Board of Directors, may enter into
a supplementary agreement for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement;
provided, however, that no such modification, amendment or waiver shall reduce
the aforesaid percentage of Registrable Securities without the consent of all of
the Holders of the Registrable Securities. Upon the effectuation of each such
waiver, consent, agreement of amendment or modification, the Company shall
promptly give written notice thereof to the record holders of the Registrable
Securities who have not previously consented thereto in writing. This Agreement
or any provision hereof may be changed, waived, discharged or terminated only by
a statement in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought, except to the extent
provided in this subsection 2.1.

                  2.2      Governing Law. This Agreement shall be governed in
all respects by the laws of the Commonwealth of Massachusetts as such laws are
applied to agreements between Massachusetts residents entered into and to be
performed entirely within Massachusetts.

                  2.3      Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
the parties hereto.

                  2.4      Entire Agreement. Except as set forth below, this
Agreement and the other documents delivered pursuant hereto constitute the full
and entire understanding and agreement between the parties with regard to the
subjects hereof and thereof.

                  2.5      Notices, etc. All notices and other communications
required or permitted hereunder shall be in writing and shall be mailed by first
class mail, postage prepaid, certified or registered mail, return receipt
requested, addressed (a) if to Holder, at such Holder's address(es) as set forth
below, or at such other address(es) as such Holder shall have furnished to the
Company in writing, or (b) if to the Company, at the Company's address set forth
below, or at such other address as the Company shall have furnished to the
Holder in writing.

                                       -6-

<PAGE>

                  2.6      Severability. In case any provision of this Agreement
shall be invalid, illegal, or unenforceable, the validity, legality and
enforceability of the remaining provisions of this Agreement or any provision of
the other Agreement s shall not in any way be affected or impaired thereby.

                  2.7      Titles and Subtitles. The titles of the sections and
subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

                  2.8      Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

                  2.9      Termination of Rights. The Company's obligations
herein to register Registrable Securities shall terminate on the earlier to
occur of (i) the date on which all Registrable Securities held by all Holders in
the aggregate may be publicly re-sold without restriction in any three-month
period pursuant to Rule 144 under the Securities Act, or (ii) May 26, 2008.

                  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

                                      -7-

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be executed by their duly authorized representatives as of the date
first above written.

PURCHASER                                        COMPANY

SILICON VALLEY BANK                              NAVISITE, INC.

By:  /s/ David Reich                             By:  /s/ Jim Pluntze
    -------------------------------                  ---------------------------
Name:  David Reich                               Name:  Jim Pluntze
      -----------------------------                    -------------------------
            (print)                                         (print)
Title:  Vice President                           Title:  Chief Financial Officer
       ----------------------------                     ------------------------
Address: __________________________              Address: ______________________
        ___________________________                      _______________________
        ___________________________                      _______________________

copy to:  Silicon Valley Bank
          Treasury Department
          3003 Tasman Drive, HA 200
          Santa Clara, CA 95054

                                      -8-

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