Document:

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                                                                   Exhibit 10.1

                              Dated 20 April 2001
                              -------------------

                  THE PRUDENTIAL ASSURANCE COMPANY LIMITED (1)

                                       and

                          MERCATOR SOFTWARE LIMITED        (2)

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

                                   Underlease
                                       of
                            Levels 1 and 2 City Tower
                     40 Basinghall Street, London, EC2V 5DE

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

                     Term      :  l5 Years
                     From      :  24 June 2000 (inclusive)
                     Expiring  :  23 June 2015 (inclusive)
                     Rent      :  (pound)798,980 (subject to review)

                                   Norton Rose
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                                    Contents

Clause                                                                      Page

(A)  Definitions ..............................................................1

(B)  Construction .............................................................2

1    Demise, Term and Rent ....................................................3

2    Tenant's Covenants .......................................................3

3    Landlord's Covenants ....................................................11

4    Provisos ................................................................12

5    Notices .................................................................14

6    Court Order .............................................................14

7    Determination ...........................................................15

8    Miscellaneous ...........................................................15

9    Proper Law ..............................................................15

Schedule 1 The Premises ......................................................16

Schedule 2 Rights Granted ....................................................17

Schedule 3 Rights Reserved ...................................................18

Schedule 4 Rent Review; Insurance Contribution; Service Charge ...............18

Schedule 5 Costs to be included in the Service Charge ........................22

Schedule 6 Services which the Landlord covenants to provide ..................24

Schedule 7 Car Park ..........................................................25

Annexures

Plans (Premises)
Car Park Plan
Specification
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THIS UNDERLEASE made the 20 day of April 2001 BETWEEN:

(1)   THE PRUDENTIAL ASSURANCE COMPANY LIMITED (Company number 15454) whose
      registered office is at 142 Holborn Bars London EC1N 2NH (the "Landlord")

(2)   MERCATOR SOFTWARE LIMITED (Company No 1293378) whose registered office is
      at 114 Rochester Row London SW1P 1JQ (the "Tenant")

WHEREAS:

(A)   Definitions

      In this Lease unless the context otherwise requires:

      "Access Roads" means the roadways ramps access and other vehicular ways
      within the Car Park;

      "the Building" means City Tower 40 Basinghall Street London EC2;

      "Car Park" means the car park situate in the basement and sub-basement
      levels of the Building and the ramp leading thereto from Basinghall
      Avenue;

      "Car Park Plan" means the attached plan that is marked as such;

      "Car Park Spaces" means the car park space referred to in Part 2 of
      Schedule 2;

      "Conducting Media" means sewers drains pipes wires aerials cables ducts
      and any other type of conducting media from time to time used for the
      passage of soil water gas electricity or other services and any meters or
      other fixtures and fittings connected to or forming part of any Conducting
      Media;

      "Connected Person" means any person, firm or company which may be
      connected with the Tenant for the purposes of section 839 Income and
      Corporation Taxes Act 1988;

      "the Common Parts" means the entrances main reception area halls lifts
      staircases landings passages kitchens toilets service areas and other
      parts of the Building enjoyed or used by the Tenant in common with others;

      "the Energy Charge" means such proportion properly attributable to the
      Premises (having regard where appropriate to the readings of the meter on
      Levels 1 and 2 of the Building) of the cost directly incurred by the
      Landlord of supplying air conditioning electricity or other forms of
      energy or power to the Level on which the Premises are situate which cost
      shall be separately metered or recorded by the Landlord and the proportion
      shall be paid by the Tenant to the Landlord on demand but not more
      frequently than monthly in arrear;

      "the Freeholder" means the party owning the freehold interest in the
      Building;

      "Group Company" means any company of which the Tenant may be a Subsidiary
      or which may have the same Holding Company as the Tenant (where Subsidiary
      and Holding Company have the meanings given to them by section 736 of the
      Companies Act 1985);

      "the Insurance Contribution" means the insurance contribution payable by
      the Tenant on the basis set out in Part 2 of Schedule 4;

      "the Insured Risks" means risks of fire storm lightning explosion riot
      civil commotion malicious damage impact flood burst pipes aircraft and
      other aerial devices or articles dropped therefrom subterranean fire
      earthquake terrorist attack and such other risks as the Landlord or any
      Superior Landlord may from time to time require to be covered in its
      reasonable discretion subject to such exclusions and limitations as are
      imposed by the insurers;

                                       1
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                       CITY TOWER "BASEMENT ACCOMMODATION"

                            [Draft of Lower Basement]
Lower Basement

                            [Draft of Upper Basement]
Upper Basement
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                                   CITY TOWER
                                   LONDON EC2

                           BASE BUILDING SPECIFICATION

                                       FOR

                                 FITTING OUT OF

                      OFFICE AREAS AND TOILET ACCOMMODATION

                                ON LEVELS 1 AND 2

Ref: 1772/Report/001/May 2000
Date: May 2000
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CITY TOWER, LONDON EC2
Base Building Specification                                     May 2000
--------------------------------------------------------------------------------

1.0   GENERALLY

      1.1   The fitting out of the office areas and toilet accommodation at
            levels 1 and 2 to Category A standard shall be as generally set out
            in this document.

      1.2   The layout, designs and areas are subject to accommodating all
            relevant Authority requirements and detailed design development
            requirements.

      1.3   The fitting out will be designed, and materials selected (within the
            parameter dictated by the existing building) to be in accordance
            with the latest relevant edition (as defined in the Building
            Contract) of British Standards, Codes of Practice, Statutory and
            Local Authority legislation, IEE Regulations, CIBSE Regulations, HSE
            Regulations, CDM Regulations and all other appropriate legislation,
            statutes and recognised standards as indicated herein.

                                  Page 2 of 6
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CITY TOWER, LONDON EC2
Base Building Specification                                     May 2000
--------------------------------------------------------------------------------

2.0   OUTLINE SPECIFICATION

      2.1   Curtain Walling and Windows

            Full height curtain walling to London Wall elevation, comprising
            structurally glazed units, double glazed, frames to be thermally
            broken with openable smoke vents and colour coated.

            Double glazed window units colour coated to Girdler's Hall
            elevation, single glazed units to lightwell.

      2.2   Staircases

            Internal accommodation stair between levels 1 and 2.

      2.3   Internal Doors

            Full height doors to lobbies and toilets, paint finish with softwood
            painted frames to office areas. Stainless steel ironmongery. Access
            doors to service risers.

            Full height hardwood veneer doors to toilet cubicles.

      2.4   Floor Finishes

            Sealer to existing concrete structure below raised floors. Fully
            accessible, medium grade raised flooring system with 600 x 600 mm
            tiles generally, with all necessary ramps and steps, bright
            finished, for a minimum overall flooring zone of 85 mm, including
            fire barriers within the void to Building Regulation requirements
            for open plan office. Grade four carpet tiles, floor outlet boxes at
            one per 10m(2) of net lettable floor area.

            Softwood or MDF painted skirtings.

            Ceramic floor tiling and coved skirtings to toilet areas.

      2.5   Wall Finishes

            Plaster finish generally, with plasterboard column casings. Paint
            decoration.

            Ceramic wall tiling to toilet areas with feature glass mosaic
            panel, laminated back panels to urinals and WC cubicles.

      2.6   Ceiling Finishes

                                   Page 3 of 6
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CITY TOWER, LONDON EC2
Base Building Specification                                     May 2000
--------------------------------------------------------------------------------

            Suspended ceilings, comprising concealed grid and 600 x 600 mm
            perforated metal tiles with integrated sound attenuation, slimline
            luminaries and grilles, plasterboard margins and fire barriers
            within the void to Building Regulation requirements for open plan
            office.

            Suspended ceilings to toilet areas as offices but plain tile with
            plasterboard margin.

      2.7   Fittings

            Glass balustrade with stainless steel handrail around void at level
            2.

            Statutory signage.

      2.8   Sanitary Appliances

            White ceramic sanitary-ware, provision for disabled facility, full
            height mirrors over limestone vanity units with inset bowls,
            stainless steel/chrome taps and towel dispenser.

      2.9   Mechanical and Electrical Services Installation

            Occupancy Levels:           Generally one person per 10m(2) of nett
                                        lettable office floor area

            Fresh Air Requirements:     10 litres per second per occupant for
                                        office areas

            Heat Gains:

            Office Areas: lighting      15 W/m(2) of nett office area

            Office Equipment:           20 watts per sq m nett office area on
            (general office areas)      fan coil unit

            External Design Conditions:

            Winter                      -4(degree)C saturated
            Summer                      28(degree)C db/20(degree)C wb

            Internal Air Temperatures:

            Offices - Summer            22(degree)C +/- 1(degree)C db
                    - Winter            21(degree)C +/- 1(degree)C

            Noise Level:

            Office Areas Nr 38 generally.

                                  Page 4 of 6
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CITY TOWER, LONDON EC2
Base Building Specification                                     May 2000
--------------------------------------------------------------------------------

            Office Lighting:

            Category 2 to general office areas, flush fittings. High Frequency
            Control Gear together with lighting control system provision to
            enable retrofit of local control.

            Designed Maintenance levels of illuminance for the building: Based
            on average surface reflectance of 70% ceiling, 30% walls, 20% floor.

            Office areas:                    400 LUX Open Plan

            Maximum level of glare:          19 (Offices)

            Service illuminances quoted are horizontal on the working plane with
            an uniformity better than 0.7.

            Design Capacity for Tenants Small Power:

            General office areas 35 watts/sq m nett office area.

            Fire Alarms:

            Analogue addressable system P2/L3 to BS5839 to the fire authorities
            requirements. Limited smoke detection to protect means of escape.
            Wiring provision to enable Tenant provision of detectors to L1
            coverage of Tenanted areas. Electronic sounders.

Mechanical Services Installations

Four pipe ceiling mounted air side control fan coil air conditioning systems
within office areas from connections on services risers in central core ducts
inclusive of all controls, primary fresh air supply, wiring, ductwork, heating
and chilled water pipework, insulation, fan coils with controllers, drip trays,
ceiling grilles, testing, balancing and commissioning.

Control systems on floor shall provide individual floor and zone control and
operation of fan coils.

Fan coil unit designated for 1 unit per 15m(2) average.

On floor horizontal runs of dedicated condensate drains to connect into vertical
dedicated condensate stacks.

Hand held fire fighting appliances to Fire Officers requirements.

Electrical Installations

                                  Page 5 of 6
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CITY TOWER, LONDON EC2
Base Building Specification                                     May 2000
--------------------------------------------------------------------------------

      Office lighting installation complete back to distribution boards in riser
      duct. Luminaires Category 2 low brightness to general office areas. Flush
      fittings providing a designed maintenance level of 400 lux in open plan
      with uniformity better than 0.7 at desk top level. High Frequency Control
      Gear together with lighting control systems provision to enable retrofit
      of local control. Controlled group switching locations from each office
      floor and facility to enable local switching to be installed by Tenant.

      Emergency lighting to office areas designed to comply with the
      requirements of BS5266: 1988 for open plan office configuration.

      Small power to office areas allowances for under floor outlet boxes
      provision. 1 per 10m(2) each providing double power and communications
      outlets. Dedicated circuits from Tenants distribution boards in services
      risers ducts to power ceiling mounted fan coil units.

      Earthing and bonding to appropriate elements of Category A Works.

      Fire alarm installation from central core services risers to serve all
      office areas inclusive of sounders.

      Services Generally

      Provision of record drawings. Operating and maintenance manuals for office
      area systems.

                                  Page 6 of 6
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      "the Landlord" includes the person for the time being entitled to the
      reversion immediately expectant on the determination of the Term;

      "the Plans" means the plans of Levels 1 and 2 of the Building annexed
      hereto which unless otherwise stated shall be for identification purposes
      only;

      "the Planning Acts" means the Town and Country Planning Act 1990 the
      Planning (Listed Buildings and Conservation Areas) Act 1990 the Planning
      (Hazardous Substances) Act 1990 the Planning (Consequential Provisions)
      Act 1990 the Planning and Compensation Act 1991 and any subsequent
      legislation of a similar nature;

      "the Premises" means the property on Levels 1 and 2 of the Building which
      are for the purpose of identification only shown edged pink on the Plans
      and the Landlord's fixtures and fittings therein the boundaries of which
      are more particularly described in Schedule 1;

      "the Prescribed Rate" means four per centum above the base rate from time
      to time of HSBC Bank Plc and wherever interest is payable at the
      Prescribed Rate the same shall be calculated on a day to day basis and
      compounded quarterly (and proportionately for any fraction of a quarter)
      on each usual quarter day;

      "the Service Charge" means the service charge payable by the Tenant on the
      basis set out in Part 3 of Schedule 4 and in respect of the matters set
      out or referred to in Schedule 5;

      "the Specification" means the annexed specification marked "Base Building
      Specification May 2000";

      "the Staircase" means the staircase in the approximate location shown
      tinted blue on the Plans;

      "the Tenant" includes its successors in title and assigns in whom this
      Lease shall for the time being be vested;

      "the Tenant's Proportion" means a fair and reasonable proportion decided
      by the Landlord's surveyor which (except where there are special
      circumstances) will be based on the proportion which the net internal area
      of the Premises bears to the aggregate net internal area of all parts of
      the Building (including the Premises) which are either let or if unlet are
      from time to time constructed or intended for separate letting (in each
      case measured in accordance with the Code of Measuring Practice issued by
      the Royal Institution of Chartered Surveyors and the Incorporated Society
      of Valuers and Auctioneers as amended from time to time);

      "the Term" means the term hereby granted and shall include any statutory
      or other continuation thereof;

      "Working Day" means a day when banks are open for business in the City of
      London;

(B)   Construction

      If there are two or more persons included in the expressions `the
      Landlord" or "the Tenant" or any other guarantors of the Tenant's
      obligations in this Lease from time to time the covenants agreements and
      obligations on the part of that party shall be construed as joint and
      several;

      Words importing the masculine gender shall where appropriate include the
      feminine gender and the neuter gender or vice versa as the case may be and
      words importing the singular number shall where appropriate include the
      plural number and vice versa.

      The headings to the clauses, schedules and paragraphs shall not affect the
      interpretation.

      This Lease shall be construed as an underlease and "the Superior Lease"
      means the lease under which the Landlord holds the Building and "the
      Superior Landlord" shall be deemed to include all reversioners (whether
      immediate or mediate) in respect of that lease and all

                                       2
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      exceptions and reservations and rights (including those by way of
      covenant) in favour of the Landlord shall also be for the benefit of the
      Superior Landlord to the intent that the Superior Landlord shall be
      entitled to exercise the same in addition to the Landlord.

WITNESSES as follows:

1           Demise, Term and Rent

            IN consideration of the rents hereinafter reserved and the covenants
            on the part of the Tenant hereinafter contained the Landlord HEREBY
            DEMISES unto the Tenant the Premises TOGETHER WITH the rights set
            out in Schedule 2 BUT EXCEPT AND RESERVING the rights set out in
            Schedule 3 AND SUBJECT to all subsisting easements and
            quasi-easements affecting the same or any part or parts thereof TO
            HOLD the same unto the Tenant for a term of FIFTEEN years commencing
            on (and including) 24 June 2000 PAYING during the Term and so in
            proportion for any less time than a year the yearly rent of (pound)1
            per annum from (and including) 24 June 2000 until (but excluding) 14
            August 2000, Six thousand pounds ((pound)6,000) per annum from (and
            including) 14 August 2000 until (but excluding) 29 November 2001,
            Four hundred and seventy three thousand six hundred and forty two
            pounds ((pound)473,642) per annum from (and including) 29 November
            2001 until (but excluding) 4 March 2002 and thereafter seven hundred
            and ninety-eight thousand nine hundred and eighty pounds
            ((pound)798,980) per annum (subject to review as mentioned in Part I
            of Schedule 4) and by way of further rent from the date of this
            Lease the Insurance Contribution the Energy Charge and the Service
            Charge such rents (save as may otherwise be provided in Schedule 4)
            to be paid in advance without any set-off or deduction whatsoever by
            equal quarterly payments on the four usual quarter days in each year
            the first such (proportionate) payment to be made on the date of
            this Lease in respect of the period from the commencement of the
            Term to the quarter day next following the date of this Lease.

2           Tenant's Covenants

            THE Tenant HEREBY COVENANTS with the Landlord to observe and perform
            throughout the Term the following covenants agreements and
            obligations:

2.1         To pay Rent and Outgoings

            To pay the yearly rent the Insurance Contribution the Service Charge
            the Energy Charge and other moneys reserved by or made payable under
            this Lease at the times and in manner respectively provided by this
            Lease and also to pay and discharge all rates taxes charges duties
            assessments impositions and outgoings whatsoever whether
            parliamentary parochial local or of any other description which now
            are or which may at any time during the Term be payable either by
            the owner or occupier in respect of the Premises and whether the
            same are existing at the date hereof or are imposed during the Term
            other than any taxes (save for value added tax or any similar tax in
            respect of payments by the Tenant under this Lease) imposed upon the
            Landlord by virtue of its receipt of the yearly rent hereunder or
            any dealing with its reversionary interest in the Premises PROVIDED
            that if and so long as the Premises are not separately assessed for
            any of the foregoing the Tenant shall pay to the Landlord on demand
            from time to time a fair proportion of the assessment on the
            Building such fair proportion to be determined by the Landlord's
            Surveyor or Agent whose decision shall be final and binding upon the
            parties;

2.2         Repair

            At all times during the Term to keep the Premises including all
            fixtures fittings (other than tenant's and trade fixtures) additions
            alterations and improvements from time to time affixed or made
            thereto and the appurtenances thereof clean and in good and
            substantial repair condition and decoration (damage by any of the
            Insured Risks only excepted unless payment of any moneys payable
            under any policy of insurance shall be refused either in whole or in
            part by reason of any act neglect or default of the Tenant any
            sub-tenant or their respective servants agents licensees or
            invitees) PROVIDED THAT in case any of the Landlord's fixtures and

                                        3
<PAGE>

            fittings shall need to be replaced the Tenant shall within a
            reasonable period replace them with others of a similar quality and
            value;

2.3         Yielding Up

            On determination to yield up the Premises to the Landlord with
            vacant possession in a state of repair condition and decoration
            which is consistent with the proper performance of the Tenant's
            covenants in this Lease and in accordance with the Specification and
            if on determination the Tenant leaves any fixtures fittings or other
            items in the Premises and fails to remove these within 14 days of
            the Landlord serving written notice requiring this then the Landlord
            may treat them as having been abandoned and may remove destroy or
            dispose of them as the Landlord wishes and the Tenant shall pay to
            the Landlord within 7 days of written demand the cost of this and
            before determination the Tenant shall if required by the Landlord
            reinstate all alterations additions or improvements made to the
            Premises whether by the Landlord or the Tenant and if required by
            the Landlord carry out and complete any work necessary to put the
            Premises into an open plan form and where this involves the
            disconnection of any plant equipment machinery or other installation
            or any Conducting Media the Tenant shall ensure that the
            disconnection is carried out properly and safely and that such plant
            equipment machinery and other installation or Conducting Media are
            suitably sealed off or capped and left in a safe condition so as not
            to interfere with the continued function of the plant equipment
            machinery and other installation or the use of the Conducting Media
            elsewhere in the Building and the Tenant shall make good any damage
            caused in complying with this clause and shall carry out all
            relevant works (including the making good of damage) to the
            reasonable satisfaction of the Landlord;

2.4         Decoration

            In every fifth year of the Term and also in the last year thereof
            (howsoever the same may come to an end) to paint with two coats at
            least of good quality paint of a colour to be on the last occasion
            previously approved of in writing by the Landlord (such approval not
            to be unreasonably withheld or delayed) or otherwise treat as the
            case may be in a proper and workmanlike manner all the internal wood
            iron and other work in or upon the Premises previously or usually
            painted or otherwise treated as aforesaid and to carry out all work
            required by this clause with good quality materials and in a good
            and workmanlike manner;

2.5         Rights of Entry

            To permit the Landlord or his agents or surveyors and all other
            persons authorised by him or otherwise entitled thereto with or
            without workmen and others by appointment and on giving at least two
            working day's written notice to the Tenant (or at any time and
            without appointment in an emergency) to enter into and upon the
            Premises for the purpose of exercising the rights excepted and
            reserved in Schedule 3 and to examine the state and condition of the
            Premises and to prepare schedules of the Landlord's fixtures and
            fittings and any dilapidations and to ascertain the use and
            occupation and the current value for insurance or otherwise and for
            any other reasonable purpose;

2.6         Notice of wants of repair

            To commence and diligently continue to repair and make good in
            accordance with sub-clauses 2.2 and 2.4 of this clause all defects
            and wants of repair or decoration for which the Tenant is liable of
            which notice in writing shall have been given to the Tenant within
            two calendar months after service on the Tenant of such notice or
            sooner if requisite;

2.7         Costs incurred by the Landlord

            To pay all proper costs and expenses (including Solicitors' costs
            and Surveyors' fees) incurred by the Landlord for the purpose of or
            incidental to (i) the preparation and service of any notice under
            section 146 of the Law of Property Act 1925 notwithstanding that
            forfeiture may be avoided otherwise than by relief granted by the
            Court (ii) the preparation and service of any notice under this
            Lease relating to the repair or decoration of the Premises given
            under subclause 2.6 hereof or any schedule of dilapidations which
            the Landlord may serve during or at or

                                       4
<PAGE>

            within three months of the end of the Term and (iii) procuring the
            recovery of arrears of rent the Insurance Contribution the Service
            Charge or the Energy Charge or the remedy of any breach of any
            Tenant's covenant under this Lease;

2.8         Rights of Entry to repair

            That if the Tenant shall at any time make default in the performance
            of any of the covenants herein contained for or relating to the
            repair or decoration or the yielding up in good and substantial
            repair and decoration of the Premises it shall be lawful for (but
            not obligatory upon) the Landlord (but without prejudice to the
            right of re-entry in this Lease and to any other rights of the
            Landlord with regard thereto) after the Tenant has failed to comply
            with the notice served in accordance with sub-clause 2.6 hereof to
            enter upon the Premises and repair and decorate the same at the
            expense of the Tenant in accordance with the covenants and
            provisions of this Lease and the expense of such repairs and
            decorations shall be repaid by the Tenant to the Landlord within 7
            days of written demand notwithstanding the fact that the Term may
            have expired or determined and the certificate of the Landlord's
            surveyor certifying the cost to the Landlord shall be final and
            binding on the Tenant and if such repairs and decorations have not
            been carried out by the Landlord before the determination of the
            Term the Tenant shall pay mesne profits at the rate of the rent
            payable hereunder immediately prior to the expiry or determination
            of the term during the period reasonably required for carrying out
            such work and the amount of such mesne profits shall be added to the
            cost of carrying out such work as aforesaid;

2.9         Legal Obligations

            At all times during the Term to observe and perform all the
            requirements of all Acts of Parliament local Acts or bye-laws
            regulations orders directions notices and of any consents or
            licences issued thereunder and to do and execute or cause to be done
            and executed all such works or things as under or by virtue of any
            Act of Parliament local Act or bye-law already or thereafter to be
            passed shall or may be directed or required by any local or public
            or other authority to be done or executed upon the Premises or any
            part thereof or relating to the Tenant's user thereof and if
            required to produce to the Landlord all plans and documents and
            other evidence which may reasonably be required to show that the
            provisions of this clause have been performed and to indemnify and
            keep indemnified the Landlord from and against all claims and
            liability in respect of all matters the subject of this sub-clause;

2.10        Cost of Works

            To pay to the Landlord within 7 days of demand the cost of all works
            which the Landlord may be required to do under the Office Shops and
            Railway Premises Act 1963 and/or the Fire Precautions Act 1971
            and/or the Health and Safety at Work etc Act 1974 in respect of the
            Premises or in the case of works required to be done in respect of
            or for the benefit of the Premises and other premises the proportion
            of such costs attributable to the Premises such proportion to be
            properly determined by the Landlord's Surveyor whose decision shall
            be final (save in the case of manifest error);

2.11        Alterations

            Not to cut maim or alter any part of the Premises nor make any
            addition improvement or alteration to the Premises either external
            or internal whether structural or otherwise PROVIDED THAT on
            obtaining the Landlord's prior written consent such consent not to
            be unreasonably withheld or delayed the Tenant may make alterations
            to the interior of the Premises which are not of a structural nature
            PROVIDED FURTHER THAT the Tenant may without the Landlord's consent
            install alter and remove internal demountable partitioning together
            with associated minor mechanical and electrical works so long as
            there is no material detrimental effect on the mechanical and
            electrical services of the Building and such works comply with all
            statutory requirements and the then current standard fit-out guide
            for tenants of the Building;

                                        5
<PAGE>

2.12        Planning Acts

            At all times during the Term at the expense of the Tenant to comply
            in all respects with the Planning Acts and all licences consents
            permissions and conditions (if any) granted or imposed thereunder or
            under any enactment repealed thereby so far as the same respectively
            relate to or affect the Premises or any part thereof or any
            operations works acts or things already or hereafter to be carried
            out executed done or omitted thereon or the use thereof for any
            purpose PROVIDED that the Tenant shall not carry out any operations
            for which planning permission is necessary but has not been obtained
            nor apply for or implement any planning permission with the
            Landlord's prior written consent which consent may not be
            unreasonably withheld or delayed;

2.13        Use

            Not at any time during the Term to use the Premises otherwise than
            as high class offices within purpose (a) of Class BI of the Town and
            Country Planning (Use Classes) Order 1987 and not being such at
            which services are provided principally to visiting members of the
            public;

2.14        Floor Loading

            Not at any time during the Term to overload the floors of the
            Premises or any Conducting Media;

2.15        Storage of inflammable matter

            Not to bring store or place in or upon the Premises any inflammable
            combustible radioactive toxic corrosive or explosive matter;

2.16        Nuisance

            Not to do on the Premises or the Common Parts anything whatsoever
            which may be or tend to become in the reasonable opinion of the
            Landlord noisy or offensive or an annoyance nuisance damage
            disturbance or inconvenience to the Landlord or its tenants or which
            may render the Landlord or the Tenant liable to any notice under any
            Public Health Act for the time being in force or which would
            constitute a breach of any of the provisions of any private or
            public Act of Parliament for the time being in force or any
            regulations or bye-laws made by any competent public or local
            authority and not to permit any sale by auction or public exhibition
            or public show or spectacle or political meeting to take place on
            the Premises;

2.17        Offer-Back and Assignment

2.17.1      If the Tenant at any time desires to assign or transfer or underlet
            the whole of the Premises the Tenant shall by an irrevocable
            unconditional written notice ("the Tenant's Notice") served upon the
            Landlord offer to surrender or assign this Lease to the Landlord in
            accordance with this sub-clause:

2.17.2      If the Landlord wishes to accept such surrender or assignment it
            shall within fourteen days of receipt of the Tenant's Notice serve a
            Counternotice (the "Counternotice") upon the Tenant stating as much;

2.17.3      The price to be paid for the surrender or assignment shall be the
            open market value (which may be a negative value) of this Lease at
            the date of the Tenant's Notice and if the open market value is not
            agreed within fourteen days following the service of the
            Counternotice it shall be referred to a valuer experienced in
            valuing high class office accommodation in the City of London who
            shall act as an expert and not as an arbitrator and who shall be
            agreed upon by the Landlord and the Tenant within fourteen days
            after the service of the Counternotice falling which he shall be
            appointed on the application of either party by the President for
            the time being of The Royal Institution of Chartered Surveyors and
            who shall determine the open market value within fourteen days of
            being requested to do so and whose decision shall be binding on the
            parties hereto and whose costs shall be shared equally by the
            Landlord and the Tenant;

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2.17.4      For the purposes of valuing the Tenant's fixtures in clause 2.17.3
            above it shall be assumed (whether or not it is the case) that the
            Tenant's fixtures and fittings are improvements

2.17.5      Within seven days of the open market value being agreed or
            determined the Landlord and the Tenant may serve upon each other
            written notice ("Acceptance Notice") that they wish to proceed with
            the surrender or assignment at the open market value and if both
            parties serve such notice within that period (but not otherwise) the
            Tenant shall surrender or assign this Lease (the Landlord having the
            right to decide whether a surrender or an assignment shall be
            appropriate) with vacant possession subject only to such derivative
            interests as may with the Landlord's consent as hereinafter provided
            have been created out of the Term but otherwise free from
            encumbrances on the day being not less than fourteen days nor more
            than three months after the Tenant's Notice but otherwise on a date
            specified by the Tenant in its Acceptance Notice (provided that if
            such day is not a Working Day then the next Working Day thereafter)
            and on which day the Landlord shall pay to the Tenant (or the Tenant
            shall pay to the Landlord) the open market value and the Landlord
            shall give the Tenant a release under seal in respect of any further
            liability of the Tenant hereunder;

2.17.6      Time shall be of the essence for the serving of the Counternotice
            and the Acceptance Notice and if the Landlord does not serve the
            Counternotice or its Acceptance Notice within the times stated above
            then the Tenant may within six months of the date of the Tenant's
            Notice either (a) after obtaining the previous written consent of
            the Landlord (which may be withheld unless the conditions set out in
            sub-clause 2.17.7 are satisfied) assign the whole of the Premises or
            (b) sublet the whole of the Premises in accordance with sub-clause
            2.18.4;

2.17.7      The conditions referred to in sub-clause 2.17.6 are:

            (a)   in relation to either the prospective assignee or any
                  prospective guarantor or guarantors:

                  (i)   the prospective assignee is not a Group Company or a
                        Connected Person; and

                  (ii)  the prospective assignee or any prospective guarantor is
                        in the Landlord's reasonable opinion of sufficient
                        financial standing to enable it to comply with the
                        covenants in the Lease for the remainder of the Term;
                        and

                  (iii) the prospective assignee covenants with the Landlord
                        that from the date of the assignment of this Lease to it
                        until it assigns this Lease pursuant to the terms of
                        this Lease it will pay all rents reserved under this
                        Lease and observe and perform all the Tenant's covenants
                        and obligations in this Lease; and

                  (iv)  the Tenant enters into an authorised guarantee agreement
                        within the meaning of the Landlord and Tenant
                        (Covenants) Act 1995 with the Landlord in such terms as
                        the Landlord may reasonably require; and

            (b)   if the Landlord reasonably requires a guarantor or some other
                  form of security for the Tenant's obligations under the
                  authorised guarantee agreement is provided to the Landlord

            (c)   any sum properly due from the Tenant to the Landlord under
                  this Lease which is outstanding is paid

2.18        Dealings with the Premises

2.18.1      Except as expressly permitted by the subsequent paragraphs in this
            sub-clause 2.18 or sub-clause 2.17 not to assign underlet charge
            part with or share possession or occupation of the Premises or any
            part thereof;

2.18.2      The Tenant may (after serving written notice to the Landlord) share
            occupation of the Premises with a Group Company on condition that
            the sharing shall not create the relationship of landlord and tenant
            and that on any such company ceasing to be a Group Company the
            occupation shall immediately cease;

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<PAGE>

2.18.3      Any consent granted under this sub-clause 2.18 shall (unless it
            expressly states otherwise) only be valid if the dealing to which it
            relates is completed within two months after the date of the
            consent;

2.18.4      The Tenant may underlet the whole or part of the Premises with the
            prior written consent of the Landlord (not to be unreasonably
            withheld or delayed) so long as:

            (a)   the prospective undertenant has covenanted with the Landlord
                  to observe and perform until it assigns the underlease with
                  consent as required by the underlease the Tenant's covenants
                  in this Lease (except the covenant to pay the rent Insurance
                  Contribution Service Charge and Energy Charge);

            (b)   if the Landlord reasonably requires a guarantor or guarantors
                  reasonably acceptable to the Landlord has guaranteed the due
                  performance by the undertenant of its above covenant in such
                  terms as the Landlord may reasonably require; and

            (c)   no fine or premium is taken for the grant of the underlease;
                  and

            (d)   the rent payable shall not be less than the open market rent
                  reasonably obtainable for the Premises; and

            (e)   the form of the underlease has been approved in writing by the
                  Landlord (such approval not to be unreasonably withheld or
                  delayed); and

            (f)   in the case of an underletting of part of the Premises the
                  conditions set out in clause 2.18.6 are satisfied.

2.18.5      The conditions referred to in clause 2.18.5(f) are:

2.18.6.1    the total number of such underleases which may subsist at any time
            during the Term shall not exceed two per floor of the Premises; and

2.18.8.2    any such underlease shall contain provisions enabling the Tenant (as
            lessor) to recover from the undertenant a due proportion of the
            Insurance Contribution the Service Charge the Energy Charge and of
            the cost to the Tenant of repairing decorating and operating the
            Premises; and

2.18.6.3    any such underlease shall preclude further underletting of all or
            part of the underlet premises; and

2.18.6.4    any such underlease shall be excluded from the operation of sections
            24-28 Landlord and Tenant Act 1954.

2.19        Registration of dealings

            The Tenant will within one month next after the making thereof
            without any demand by the Freeholder or the Landlord deliver for
            registration at the office of the Freeholder and also to the
            Landlord or as it may direct a certified copy of all assignments
            underleases (or the counterparts thereof) tenancy agreements
            occupational licences deeds of variation mortgages charges by way of
            legal mortgage probates of wills letters of administration and other
            dispositions or deeds affecting the interests terms or conditions of
            occupancy of the Premises or any part thereof which shall at any
            time during the Term be made of the Premises or of any part thereof
            and leave the same with them for that purpose and pay the reasonable
            costs of the Freeholder and of the Landlord for the registration of
            every such document;

2.20        Registration covenant in Underlease

            The Tenant will insert in every underlease tenancy agreement or
            occupational licence of the Premises or of any part thereof granted
            by the Tenant a covenant by the underlessee tenant or occupational
            licensee with the Tenant to produce within one month next after the
            making thereof (without any demand by any person) for registration
            at the office of the Freeholders a certified

                                        8
<PAGE>

            copy of every assignment of the sub-demised premises or any part
            thereof and every sub-demise (including by way of tenancy agreement
            or occupational licence save as aforesaid) of the same or any part
            thereof made by any permitted underlessee or the persons deriving
            title under him and to leave every such copy of such assignment
            sub-demise agreement and licence (save as aforesaid) with the
            Freeholders for the purpose of such registration and to pay the
            reasonable costs of the Freeholders for the registration of every
            such assignment sub-demise agreement or licence (save as aforesaid);

2.21        Waiver by Tenant

            The Tenant will not at any time accept a surrender of any
            underleases (in whole or part) or release or waive or vary any
            underlessee's covenant and will by use all reasonable endeavours to
            enforce the performance thereof by every such underlessee tenant or
            occupational licensee (save as aforesaid) and the persons deriving
            title under him PROVIDED THAT the Tenant shall be permitted to
            surrender any underlease in part so long as no more than two
            occupancies are created;

2.22        Vitiation of Insurance

            Not to do or bring on to the Premises any act deed matter or thing
            which shall or may cause any policy for insurance of the Premises or
            the Building or any adjoining or neighbouring premises to become
            void or voidable or whereby the premium or premiums payable in
            respect thereof shall or may be increased above the ordinary or
            common rate payable and to comply in all respects with the terms and
            conditions of all policies for insurance of the Premises or the
            Building and the requirements of the insurers notified to the Tenant
            and further not without the previous written consent of the Landlord
            to arrange any additional insurances against any of the Insured
            Risks upon or in respect of the Premises;

2.23        Signs

            Not to place fix or exhibit in or on the Premises so that they can
            be viewed from outside the Premises any hoarding showcase aerial
            sign signboard bill plate board fascia placard poster advertisement
            or other notification of any kind whatsoever PROVIDED THAT:

2.23.1      the Tenant and any permitted undertenant or occupier shall be
            entitled to have its name shown on the common signboard in the main
            entrance hall and the lift lobby in Level 1 of the Building;

2.23.2      the Tenant and any permitted undertenant shall be permitted to
            display a sign on or near the entrance doors to the Premises showing
            its name and logo but in a style consistent with the house style of
            the Building; and

2.23.3      notwithstanding the foregoing if in the opinion of the Landlord any
            such sign or other matter as aforesaid which may be placed affixed
            or exhibited shall be or become offensive or unsightly the same
            shall be removed or resited immediately on receipt of written
            request from the Landlord;

2.24        Not to obstruct Common Parts

            Not to do any act or thing whereby any of the Common Parts or any
            road parking area forecourt path or passage in or enjoyed with the
            Building may be damaged or obstructed or the fair use thereof by
            others may be impeded or hindered in any manner whatsoever or
            whereby any right of prescription shall arise against the Landlord
            nor to park or allow to be perked on the rear service road any
            vehicle except for the minimum time necessary for the loading and
            unloading of goods;

2.25        Sewers drains and watercourses

            Not to cause (or allow those under its control) to pass into the
            sewers drains or watercourses serving the Premises or the Building
            or any adjoining or neighbouring premises any noxious or deleterious
            effluent or any other substance which may cause an obstruction in or
            injure the

                                        9
<PAGE>

            same and in the event of any such obstruction or injury forthwith to
            remove such obstruction and to make good all damage to the
            reasonable satisfaction of the Landlord;

2.26        Fire Prevention Apparatus

            To maintain to the reasonable satisfaction of the Landlord adequate
            fire prevention apparatus upon the Premises and from time to time to
            remove as speedily as possible from the Premises all waste and
            inflammable material;

2.27        Costs

            To pay on demand all legal costs Surveyor's fees and other expenses
            of any kind incurred or expended by the Landlord in respect of all
            applications made by or on behalf of the Tenant or any occupier or
            undertenant (whether actual or prospective) for the consent or
            approval of the Landlord to or in respect of any act matter or thing
            for which consent or approval is required under the terms of this
            Lease and whether or not consent or approval is refused or the
            application is withdrawn or not proceeded with for any reason;

2.28        VAT

            In addition to the rents and any other sums which shall or may
            become payable by the Tenant under the terms of this Lease to pay on
            an indemnity basis all Value Added Tax in respect thereof at the
            rate of such tax from time to time applicable thereto;

2.29        Superior Lease

            To observe and perform the lessee's covenants in the Superior Lease
            (other than the covenants to pay rent and to insure the Building and
            the covenants as to repair and decoration) insofar as such covenants
            relate to the Premises;

2.30        Indemnity

            To keep the Landlord fully and effectively indemnified against (i)
            all damage to the Premises or the Building occasioned by any act
            default or negligence of the Tenant its servants agents licensees or
            undertenants and (ii) all costs claims liabilities actions and
            expenses (by whomsoever alleged or demanded and whether in respect
            of death sickness personal injury damage to property or otherwise)
            arising through the use or occupation by the Tenant or any of its
            servants agents licensees or undertenants of the Premises or any
            part thereof or the existence of any articles in or about the same
            or the execution of any works upon the Premises or the state or
            condition of or the existence of any defect in the Premises (insofar
            as the Tenant is liable hereunder to repair the same) or any
            interference or alleged interference or destruction of any right or
            alleged right (whether of drainage light air way or otherwise)
            existing for the benefit of any adjoining or neighbouring property;

2.31        Regulations

            To comply with such rules and regulations for the better management
            and control of the Building as the Landlord may from time to time
            prescribe and notify to the Tenant

2.32        Third Party Rights

            At the request of the Landlord and at the joint expense of the
            Landlord and the Tenant to take all steps which may be reasonably
            required by the Landlord to prevent any encroachment on or
            acquisition of any easement against the Premises or the loss of any
            easement enjoyed by the Premises (or any other part of the Building)
            and to join with the Landlord to take such action or proceedings as
            the Landlord may reasonably require against any owner or occupier of
            any nearby land to prevent any such encroachment acquisition or
            loss;

2.33        Car Park Covenants

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<PAGE>

            In relation to the Car Park Space the Tenant shall observe the Car
            Park covenants set out in part 1 of schedule 7.

3           Landlord's Covenants

            THE Landlord HEREBY COVENANTS with the Tenant that the Tenant paying
            the rents hereby reserved and performing the covenants agreements
            and obligations set out in clause 2 the Landlord will observe and
            perform the following covenants:

3.1         Quiet Enjoyment

            That the Tenant may peaceably hold and enjoy the Premises during the
            Term without any lawful interruption or disturbance from or by the
            Landlord or any person lawfully claiming through under or in trust
            for it;

3.2         Insurance

3.2.1       To use its best endeavours to procure that the Freeholder shall
            insure and (unless the insurance so effected shall become void or
            voidable through or by reason of any act neglect or default of the
            Tenant or any servant agent licensee or invitee of the Tenant) keep
            insured the Building (including any plate glass) against the Insured
            Risks at all times during the Term in some insurance office or with
            underwriters of repute in the full reinstatement value thereof
            including Architects' and Surveyors' fees and shall request that the
            Tenant's interest be noted on the policy if requested to do so by
            the Tenant and in case of destruction or damage by the Insured Risks
            that subject to the Landlord or the Freeholders obtaining all
            necessary permissions permits consents authorities and approvals
            which the Landlord or the Freeholder shall use their best endeavours
            to obtain as quickly as possible the Freeholder or the Superior
            Landlord shall forthwith apply all policy moneys received under or
            by virtue of any such insurance as aforesaid (except those in
            respect of loss of rent) in reinstating the Building with reasonable
            speed;

3.2.2       To insure against five years loss of the rents reserved under this
            Lease and referred to in Part 2 of Schedule 4 of this Lease;

3.3         Copy Insurance Policy

            To provide the Tenant on request with a copy of the insurance policy
            or policies applicable to the Building (or a certificate of such
            insurances) as are then currently maintained together with details
            of the sum insured and provide the Tenant with details of all
            changes to such insurance policy or policies as soon as reasonably
            possible after receipt from the Superior Landlord;

3.4         Services

            Except where the Building (or any part of it) has been damaged
            otherwise than by an Insured Risk to provide the services specified
            in Schedule 6 and the Car Park Services set out in part 3 of
            schedule 7 PROVIDED THAT the Landlord shall not be responsible or
            liable in any way whatever for any failure to provide the same or
            any of them if such failure shall be due either wholly or in part to
            any act neglect or default of the Tenant or the Tenant's servants
            agents licensees or invitees or to any strike lock-out shortage of
            labour or materials power cuts failure in delivery of supplies or to
            any other cause whatsoever beyond the Landlord's control so long as
            the Landlord has taken all reasonable steps to remedy such failure
            PROVIDED FURTHER that the Landlord will endeavour to maintain the
            Service Charge at a reasonable figure consistent with due
            performance and observance of its obligations but the Tenant shall
            not be entitled to object to any item comprised therein by reason
            only that the materials work or service in question might have been
            provided or performed at a lower cost and in particular the Landlord
            Shall be entitled itself to provide any materials and by its own
            agents servants and workmen to perform any particular work or
            service;

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<PAGE>

3.5         Superior Lease

            To pay the rent reserved by the Superior Lease and to observe and
            perform the lessee's covenants therein contained insofar as such
            covenants do not fall to be observed by the Tenant hereunder and to
            use reasonable endeavours to procure that the Superior Landlord
            observes and performs the Landlord's covenants therein contained.

4           Provisos

            PROVIDED ALWAYS AND IT IS HEREBY AGREED:

4.1         Forfeiture

            Without prejudice to any other remedies and powers contained in this
            Lease or otherwise available to the Landlord if:

4.1.1       the whole or part of the rents shall be unpaid for twenty-one days
            after becoming due (whether demanded or not); or

4.1.2       any of the Tenant's covenants in this Lease are not performed or
            observed; or

4.1.3       the Tenant or any guarantor of the Tenant's obligations (or if more
            than one person any one of them):

            (a)   proposes or enters into any composition or arrangement with or
                  a notice is issued convening a meeting of its creditors
                  generally or any class of its creditors; or

            (b)   is the subject of any judgment or order made against it which
                  is not complied with within seven days or is the subject of
                  any execution sequestration or other process levied upon or
                  enforced against any part of its undertaking property assets
                  or revenue; or

            (c)   being a company:

                  (i)   is the subject of a petition presented (save where it is
                        being contested in good faith) or an order made or a
                        resolution passed or analogous proceedings taken for
                        appointing, an administrator of or winding up such
                        company or is the subject of a notice issued convening a
                        meeting for the purpose of passing any such resolution
                        (save for the purpose of and followed by an amalgamation
                        or reconstruction not involving or arising out of
                        insolvency or giving rise to a reduction in capital) and
                        is on terms previously approved in writing by the
                        Landlord; or

                  (ii)  an encumbrancer takes possession or exercises any power
                        of sale or a receiver is appointed of the whole or any
                        part of the undertaking property assets or revenues of
                        such company; or

                  (iii) stops payment or agrees to declare a moratorium or
                        becomes or is deemed to be insolvent or unable to pay
                        its debts within the meaning of section 123 of the
                        Insolvency Act 1988; or

                  (iv)  without the prior consent in writing of the Landlord
                        ceases or threatens to cease to carry on its business in
                        the normal course; or

            (d)   being an individual:

                  (i)   is the subject of a bankruptcy order; or

                  (ii)  is the subject of an application or order or appointment
                        under section 253 or section 273 or section 286 of the
                        Insolvency Act 1986; or

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<PAGE>

                  (iii) is unable to pay or has no reasonable prospect of being
                        able to pay his debts within the meaning of sections 267
                        and 268 of the Insolvency Act 1986;

                  then and in any of the said cases the Landlord may at any time
                  thereafter (and notwithstanding the waiver of any previous
                  right of re-entry) re-enter the Premises (or any part of the
                  Premises in the name of the whole) whereupon this Lease shall
                  absolutely determine but without prejudice to any right of
                  action of the Landlord in respect of any antecedent breach of
                  the Tenant's covenants in this Lease.

4.2         Rent Suspension

            That in the event of the Premises or any part thereof or the means
            of access thereto at any time during the Term being damaged or
            destroyed by any of the Insured Risks so as to be unfit for
            occupation and use then (so long as the Landlord's policy of
            insurance shall not have been vitiated or payment of the policy
            moneys withheld or refused in whole or in part in consequence of any
            act neglect or default of the Tenant or of any servant agent
            licensee or invitee of the Tenant) the yearly rent hereby reserved,
            the Energy Charge and the Service Charge or a fair proportion
            thereof according to the nature and extent of the damage sustained
            shall be suspended until the expiration of five years from the date
            of such damage or destruction or until the Premises shall again be
            rendered fit for habitation and use (whichever shall be the sooner)
            and a proportionate part of any yearly rent Energy Charge or Service
            Charge paid in advance by the Tenant shall be refunded by the
            Landlord to the Tenant and in case of difference touching this
            proviso the same shall be determined by a single arbitrator to be
            agreed upon between the parties or in default of agreement to be
            nominated at the request of either party by the President for the
            time being of The Royal Institution of Chartered Surveyors and in
            either case in accordance with the provisions of the Arbitration Act
            1996;

4.3         Vitiation of Insurance

            In the event of the Building or any part thereof being destroyed or
            damaged by any of the Insured Risks and the insurance money under
            any insurance against the same effected by the Superior Landlord or
            the Landlord being wholly or partly irrecoverable by reason of any
            act or default of the Tenant or any servant agent licensee or
            invitee of the Tenant then the Tenant will upon demand (in addition
            to the rents hereinbefore reserved) pay to the Landlord the whole or
            (as the case may require) a fair proportion of the cost (including
            professional fees) of rebuilding or reinstating the same with
            interest at the Prescribed Rate on all payments made by the Landlord
            or the Superior Landlord in or in connection with such rebuilding or
            reinstatement for the period from the time of expenditure until
            repayment by the Tenant;

4.4         Compensation

            Save to the extent that the same may be payable by law
            notwithstanding any agreement to the contrary neither the Tenant nor
            any assignee of the Tenant or any underlessee or any occupier for
            the time being of the Premises or any part thereof shall upon
            quitting or giving up the Premises be entitled to any compensation
            under any enactment;

4.5         Landlord's Liability

            Save to the extent that the Landlord may be liable by law
            notwithstanding any agreement or disclaimer to the contrary the
            Landlord shall not be liable in any way whatsoever to the Tenant or
            any servant agent licensee or invitee of the Tenant by reason of any
            act neglect default or omission on the part of any of the tenants or
            owners or occupiers of any adjoining or neighbouring premises or of
            any representative or employee of the Landlord (unless acting within
            the scope of the express authority of the Landlord) or by reason of
            the defective working stoppage or breakage of any of the Conducting
            Media or other plant apparatus or machinery of any kind whatsoever;

                                       13
<PAGE>

4.6         Interest

            If any part of the rents hereby reserved or any other sum of any
            kind whatsoever which shall or may from time to time become payable
            to the Landlord under this Lease shall remain unpaid after the same
            shall have become due (whether or not demanded except where a demand
            therefor is prescribed by the terms of this Lease when the due date
            shall be deemed to be the date of demand) the same shall carry
            interest for the period from the date on which the same became due
            until the date of actual payment at the Prescribed Rate and such
            interest shall be paid by the Tenant on demand;

4.7         Other Property owned by the Landlord

            In consideration of the grant of this Lease the Tenant agrees that
            the Tenant and all persons deriving title under the Tenant to the
            Premises as lessee or occupier of the said Premises or any part
            thereof will not raise any objection under the London Building Acts
            or the London County Council (General Powers) Act 1954 or otherwise
            to the erection of a building of a height in excess of that
            ordinarily permitted by such Acts or otherwise on any premises in
            the ownership of the Landlord within a radius of One hundred yards
            of the nearest point thereto of the Building nor require any
            compensation to be paid in respect of any loss of light or air to
            the Premises caused by the erection of any such building within the
            said radius;

4.8         Easements

            The Tenant shall not be or become entitled to any easement right
            quasi-easement or quasi-right save as expressly set out in the
            Second Schedule;

4.9         Cleaning Contractor

            If the Tenant wishes to appoint a third party to clean the Premises
            it may only appoint a cleaning contractor nominated by the Landlord
            at the request of the Tenant and the Landlord shall be entitled to
            refuse to allow any other cleaning contractor access to the Building
            but this provision shall not render the Landlord liable for the fees
            of the nominated cleaning contractor or for its actions or
            omissions;

4.10        Acts of the Tenant

            Where in this Lease the Tenant covenants not to do any act the
            Tenant shall neither do such act and shall use all reasonable
            endeavours not to permit or suffer the same to be done.

4.11        Termination if Premises not Reinstated

            Whenever the Premises or any part thereof or the means of access
            thereto are damaged or destroyed by any of the Insured Risks so as
            to be unfit for use and occupation and if the Premises are still not
            fit for use and occupation by the Tenant at the end of a five year
            period starting on the date of the damage or destruction then either
            the Landlord or the Tenant may at any time within 3 months of the
            end of the period serve notice in writing on the other whereupon the
            Term is to cease absolutely but without prejudice to any rights or
            remedies that may have accrued on either party

5           Notices

            SECTION 196 of the Law of Property Act 1925 (as amended by the
            Recorded Delivery Service Act 1962) shall apply to all notices which
            may be served under the terms of this Lease.

6           Court Order

            HAVING been authorised so to do by an Order of The Mayor's and City
            of London Court dated 1st February 2001 (Application Number MYIG0856
            pursuant to Section 38(4) Landlord and Tenant Act 1954, the parties
            hereto agree that if a Tenant's Notice is served under

                                       14
<PAGE>

            sub-clause 2.17 or a notice is served by the Tenant under clause 7.1
            then the provisions of sections 24 to 28 (inclusive) of the Landlord
            and Tenant Act 1954 shall be excluded in relation to this Lease.

7           Determination

7.1         The Tenant may determine this Lease on 24 June 2012 by serving on
            the Landlord not less than nine months written notice specifying the
            proposed date of Determination.

7.2         This Lease shall only determine as a result of notice served by the
            Tenant under clause 7.1 if:

7.2.1       that notice has been served strictly in accordance with that clause
            and

7.2.2       on or before the intended date of Determination the Tenant:

            (a)   gives vacant possession of the Premises and the Car Park
                  Spaces to the Landlord; and

            (b)   is not in breach of its covenant to pay the yearly rents and
                  pay the other rents reserved by clause 1 properly demanded at
                  least one month before the intended date of Determination; and

            (c)   delivers to the Landlord the original of this Lease and any
                  other title documents to the Premises or a statutory
                  declaration as their destruction if the originals have been
                  lost or destroyed.

7.3         The Landlord may in its absolute discretion waive compliance with
            all or any of the conditions set out in clause 7.2.

7.4         If the provisions of this clause 7 are complied with then upon the
            expiry of the notice of Determination this Lease shall determine but
            without prejudice to any right of action of either party in respect
            of any previous breach by the other of any covenant or obligation in
            this Lease.

7.5         Time is of the essence in respect of this clause 7.

7.6         Any notice of Determination served under this clause 7 shall be
            irrevocable.

8           Miscellaneous

8.1         This Lease is a new tenancy within the definition given in section
            1(3) of the Landlord and Tenant (Covenants) Act 1995.

8.2         This Lease does not pass to the Tenant the benefit of or the right
            to enforce any covenants which now benefit or which may in the
            future benefit the reversion to this Lease and the Landlord shall be
            entitled in its sole discretion to waive, vary or release any such
            covenants.

8.3         If the Landlord and the Tenant agree in writing that the Tenant may
            defer payment of any sums due under this Lease then for the purposes
            of this Lease (and of section 17 of the Landlord and Tenant
            (Covenants) Act 1995) those sums shall be deemed to be due for
            payment on the deferred date so agreed and not on the earlier date
            on which they would, but for that agreement, have fallen due.

8.4         The provisions of the Contracts (Rights of Third Parties) Act 1999
            are excluded from this Lease.

9           Proper Law

            This Lease shall be governed by English law and the Tenant
            irrevocably submits to the non-exclusive jurisdiction of the English
            Courts.

IN WITNESS whereof each party hereto has executed this Deed the day and year
first above written.

                                       15
<PAGE>

                                   Schedule 1
                                  The Premises

The Premises shall (for the purposes of obligation as well as grant) include:

(i)   the internal wood concrete plaster tiles carpets or other coverings and
      plaster work of the floors walls and the ceiling tiles in the false
      ceilings bounding the Premises and the doors door-frames internal windows
      and window-frames and the glass therein;

(ii)  all Conducting Media which are laid inside the area bounded by the
      internal faces of the said floors walls and false ceilings and which serve
      the Premises exclusively;

(iii) the main lights and light fittings recessed into the false ceiling;

(iv)  the false floor and the supports thereof and the space underneath the
      false floor down to but not including the floor slab;

(v)   the Staircase;

(vi)  the items listed or referred to in the Specification.

BUT shall exclude

(i)   all structural parts of the Building and any part or parts of the Building
      lying above outside or below the surfaces of the floors walls and false
      ceilings hereinbefore expressly included;

(ii)  external double glazing and windows window-frames and the glass therein;

(iii) any Conducting Media which do not serve exclusively the Premises;

(iv)  all parts of the air conditioning and heating system (other than that
      referred to in the Specification);

(v)   the concrete floor slab.

                                       16
<PAGE>

                                   Schedule 2
                                 Rights Granted

                        Part 1 - Rights Granted in Common

The rights in common with the Landlord and all others for the time being
authorised by the Landlord or otherwise entitled thereto:

(1)   At all times to pass and repass on foot only over along and across the
      Common Parts as a means of access to and egress from the Premises and on
      foot and using vehicles over along and across the Access Roads as a means
      of access to and egress from the Car Park Spaces but for no other purpose
      whatsoever and the right to use the service areas of the Building for the
      loading and unloading of vehicles;

(2)   To the passage of services through the Conducting Media under over through
      or about the Building or any part thereof which from time to time serve
      the Premises;

(3)   To store refuse in such part of the Building as may from time to time be
      nominated by the Landlord.

(4)   The support and protection for the Premises from other parts of the
      Building.

(5)   To connect to and use the hot and cold water services (capped off)
      provided to and available from within the Premises.

                            Part 2 - Exclusive Rights

1     At all times the exclusive right to park two motor cars in the Car Park
      the initial spaces being shown edged red on the Car Park Plan or in such
      other space within the Car Park as the Landlord may nominate in writing to
      the Tenant Provided that:

      (1)   The Landlord will exercise the right to nominate alternative Car
            Park Spaces reasonably and only if this is reasonably required in
            the interests of good estate management; and

      (2)   Such alternative Car Park Spaces will so far as practicable be no
            smaller and no less convenient to use than the former Car Park
            Spaces; and

      (3)   Unless the Landlord requires the Car Park Spaces for uses associated
            with the management and running of the Building the Landlord will as
            soon as practicable restore to the Tenant the Car Park Spaces in
            which the Tenant had the exclusive right to park immediately before
            such nomination.

2     The exclusive right to use the toilets on levels 1 and 2 subject to the
      Landlord having the right for itself and those authorised by it for
      maintenance purposes having access on reasonable prior notice (except in
      emergency) where no notice need be given.

3     The exclusive right to connect to the Conducting Media for the purposes of
      installing air conditioning equipment so long as Landlord's prior written
      consent (if required) under clause 2.11 has been obtained

                                       17
<PAGE>

                                   Schedule 3
                                 Rights Reserved

To the Landlord and the Superior Landlord such rights as are reserved by the
Superior Lease and further the rights for the Landlord and all others for the
time being authorised by the Landlord or otherwise entitled thereto:

1     To build or rebuild upon any adjoining or adjacent land or to alter any
      building or erection from time to time thereon (including without
      prejudice to the generality thereof the Building) and the right to consent
      on behalf of the Tenant to any person doing the same on any adjoining or
      adjacent land to such height and in such manner and otherwise as the
      Landlord may desire or permit and to use the same in whatever manner may
      be desired and whether or not the access of light and air to the Premises
      or any other amenity from time to time appertaining to the Premises shall
      be affected in any way;

2     The passage of services through and the use of all Conducting Media in
      under over through or about the Premises or any part thereof to and from
      any other Premises from time to time served thereby;

3     To enter and remain upon the Premises with tools appliances and materials
      for the purposes of inspecting testing repairing renewing relaying
      cleaning maintaining connecting up to or altering the Building or any
      Conducting Media whether or not serving the Premises exclusively and the
      toilets or adjoining or contiguous premises or any other things used in
      common and for the purpose of doing any other things comprised in the
      Landlord's obligations contained in this Lease or in respect of which the
      Service Charge is payable and of ensuring the proper security of the
      Building and its occupiers and of performing any of the covenants in the
      Superior Lease or doing anything which may be necessary or desirable to
      prevent or avoid a forfeiture thereof or the marketing of any part of the
      Building PROVIDED THAT the exercise of this right shall not (except in
      emergency) prevent or substantially impede the Tenant's use of the
      Premises and that the Landlord shall make good or cause to be made good
      any damage caused to the Premises or the Tenant's fixtures within them
      occasioned by such entry at the Premises;

4     The support and protection from the Premises enjoyed by other parts of the
      Building now or hereafter to be erected

                                   Schedule 4
               Rent Review; Insurance Contribution; Service Charge

                              Part 1 - Rent Review

(1)   On 24 June 2005 and 24 June 2010 (in each case the "review date") the
      yearly rent payable hereunder shall be reviewed and thereafter there shall
      be payable (in addition to the rents reserved by Parts 2 and 3 of this
      Schedule) a yearly rent equal to the higher of the yearly rent payable
      immediately prior to the review date and an amount which shall represent
      the market rent on the review date.

(2)   In this schedule "market rent" means the rack rent at which the Premises
      might reasonably be expected to be let as a whole in the open market with
      vacant possession by a willing landlord to a willing tenant without taking
      any fine or premium for a term equal to 10 years commencing on the
      relevant review date and for the use permitted under this Lease (or for
      the actual use if attracting a higher value) and upon the terms of this
      Lease (other than as to the amount of the rent reserved but including the
      provisions for rent review) and upon the assumptions that:

                                       18
<PAGE>

      (i)   the Landlord and the Tenant have complied with all of the covenants
            agreements and obligations on their (respective) parts in this
            Lease; and

      (ii)  in case the Premises have been destroyed or damaged by an Insured
            Risk they have been fully restored; and

      (iii) the Premises have been finished to the Specification and are ready
            and fit for immediate use or occupation by the willing tenant (so
            that no rent-free period or allowance need be made in respect of any
            fitting out work); and

      (iv)  the Tenant is to receive whatever inducements or other concessions
            would be given in the market to the willing tenant on the relevant
            review date (ignoring any concessionary rent period or other
            inducement required for fitting out the Premises).

      BUT disregarding (if appropriate):

      (i)   the fact that the Tenant has been in occupation of the whole or any
            part of the Premises;

      (ii)  any goodwill attached to the Premises by reason of the carrying on
            at the Premises of the business of the Tenant or any permitted
            undertenant;

      (iii) any permitted improvement to the Premises carried out by and at the
            expense of the Tenant or any undertenant otherwise than in pursuance
            of an obligation to the Landlord;

      (iv)  any restraint or restriction on the right to recover or increase
            rent imposed by or by virtue of any Act of Parliament.

(3)   In the first instance the Landlord and the Tenant shall endeavour to agree
      the amount of the market rent to be paid on and from the review date but
      if (for whatever reason) they shall not have agreed the same by such date
      as shall be one month before the review date then at any time thereafter
      either party may refer the matter to be determined by a valuer experienced
      in valuing high class office accommodation in the City of London (who
      shall act as an expert and not as an arbitrator but who shall afford to
      each of the Landlord and the Tenant a reasonable opportunity to make
      representations to him) previously agreed upon between the Landlord and
      the Tenant or in the absence of such agreement to be nominated on the
      application of the Landlord or the Tenant by the President for the time
      being of The Royal Institution of Chartered Surveyors and the decision of
      any such valuer shall be binding on the parties hereto and the cost of the
      reference to him and his determination shall lie in his award in the event
      that any such valuer shall die or become unwilling to act or become
      incapable of acting or if for any other reason the President aforesaid
      shall in his absolute discretion think fit the said President may by
      writing discharge him and appoint another valuer in his place.

(4)   If (for whatever reason) the market rent is not agreed or determined until
      after the review date the Tenant shall continue to pay the yearly rent at
      the rate applicable immediately before such date and on the date on which
      the market rent shall have been agreed or determined as aforesaid there
      shall be due as arrears of rent and the Tenant shall pay the amount of any
      increase for the period on and from the review date up to the quarter day
      next after such agreement or determination together with interest thereon
      (at four per centum below the Prescribed Rate) for the period on and from
      the review date up to the date of actual payment.

(5)   If the market rent is higher than the rent previously payable then within
      twenty-eight days of the market rent being agreed or determined as
      aforesaid the parties shall for evidence purposes execute a memorandum
      recording the market rent and each party shall bear its own cost in
      respect thereof.

(6)   It is hereby declared that time shall not be of the essence in this Part
      of this Schedule except as regards the review date.

                                       19
<PAGE>

                         Part 2 - Insurance Contribution

A proportion to be properly determined by the Landlord of the amount which the
Landlord or the Superior Landlord shall from time to time expend in or in
respect of effecting or maintaining insurance of the Building against the
Insured Risks in the full reinstatement value thereof for the time being and all
Architects' and Surveyors' and other fees and incidental expenses consequent
upon reinstating the Building rent payable under this Part of this Schedule to
be paid on demand together with (1) the full amount of any additional or
increased premiums which may be demanded by the insurers an account of the
nature of the occupation or business of the Tenant or any undertenant and (ii)
the full amount of all insurance premiums in respect of five years' loss of rent
hereunder at a rate which takes into account potential increases of rent in
accordance with the rent review provisions referred to above or following the
expiry or determination of the Term.

                             Part 3 - Service Charge

(1)   By way of Service Charge at the times and in the manner hereinafter
      provided the Tenant's Proportion of the expenditure from time to time
      incurred by or on behalf of the Landlord in connection with the matters
      set out or referred to in Schedules 5 and 6 Provided always that the
      Tenant's contribution by way of Service Charge towards the cost and
      expense of replacing the external cladding at the Building incurred by the
      Landlord in any one service charge year shall be capped at (pound)100,000
      (the "Initial Figure") as reviewed in accordance with Paragraph (2) below.

(2)   The Initial Figure shall be reviewed on the expiry of each service charge
      year and the capped amount for the purposes of Paragraph 1 shall become
      the Initial Figure plus the amount that bears the same proportion to the
      Initial Figure as the amount, if any, by which the "all items" index
      figure of the Index of Retail Prices published by the Department of
      Employment (or any successor, Ministry or department or any substitution
      therefor) for the month preceding the expiry of the relevant service
      charge year exceeds the index figure for the month preceding the date of
      this Lease.

(3)   The expenditure shall be ascertained and certified by the Landlord's
      surveyor for each successive period of twelve months expiring on the
      twenty-third day of June in each year (or such date as the Landlord may
      from time to time select and notify) as soon as may be practicable
      thereafter (hereinafter referred to as the "relevant year") and the Tenant
      shall pay to the Landlord in respect of each relevant year the Tenant's
      Proportion of the amount so certified apportioned if necessary for the
      commencement and the expiration or sooner determination of the Term.

(4)   The Tenant shall pay to the Landlord on account of the Service Charge such
      annual sum as the Landlord's surveyor shall notify to the Tenant as a fair
      estimate of the Tenant's likely Service Charge for the relevant year
      (hereinafter called the "Initial Contribution") such annual sum to be paid
      by equal quarterly payments in advance on the four usual quarter days the
      first proportionate payment in respect of the period from the date of
      commencement of the Term to the quarter day next following the date hereof
      to be made on the date hereof.

(5)   After the expenditure for each relevant year shall have been ascertained
      and certified by the Landlord's surveyor the Tenant shall pay to the
      Landlord on demand or the Landlord shall allow to the Tenant (as the case
      may require) the difference between the Initial Contribution paid by the
      Tenant for the relevant year and the actual amount of the Service Charge
      for that relevant year.

(6)   Every certificate of the Landlord's surveyor as to the expenditure or any
      sum payable by the Tenant hereunder shall be in writing and save in the
      case of manifest error be final and binding on the Landlord and the
      Tenant.

                                       20
<PAGE>

(7)   Any omission by the Landlord or his surveyor to include in any relevant
      year a sum expended or a liability incurred in that relevant year shall
      not preclude the Landlord from including such sum or the amount of such
      liability in any subsequent relevant year as the Landlord shall deem fit.

                                       21
<PAGE>

                                   Schedule 5
                   Costs to be included in the Service Charge

(i)     The costs of and incidental to compliance by the Landlord with every
        notice regulation or order of any competent local or other authority
        affecting the Building (save insofar as such costs are the
        responsibility of an individual occupational tenant).

(ii)    All proper fees charges expenses and commissions of any person or
        persons the Landlord may from time to time employ in connection with the
        management including rent collection and maintenance of the Building
        including the cost of administering the Service Charge and the Energy
        Charge (but excluding for the purposes of this clause any such fees
        charges expenses and commission in connection with the actual letting or
        reletting of the Building or any part or parts thereof) PROVIDED THAT if
        the Landlord shall itself perform such services it shall be entitled to
        an annual management fee equivalent to the reasonable fee which would
        have been payable to a managing agent had one been employed.

(iii)   All fees charges and expenses payable to any person who the Landlord may
        at any time employ in connection with the security of the Building or to
        inspect repair and keep in running order the lifts air conditioning
        plant and the hot water systems and such other plant as is necessary to
        provide the Landlord's services including the Landlord's costs incurred
        from time to time in entering into a contract or contracts with any such
        persons and also the cost from time to time of carrying out such repairs
        and any replacements.

(iv)    The cost of taking out and maintaining in force such engineering third
        party employers or public liability insurances or such other insurances
        as the Landlord shall from time to time in its absolute discretion deem
        necessary and the cost of valuing the Building for insurance purposes
        from time to time.

(v)     The cost of employing staff for the performance of any of the duties and
        services referred to in this Schedule and Schedule 6 and all other
        incidental expenditure in relation to such employment including but
        without limiting the generality of such provision such insurance health
        pension welfare and other payments contributions and premiums and such
        compensation for redundancy or unfair dismissal as the landlord may in
        its absolute discretion deem desirable or necessary and the provision of
        uniforms working clothes tools appliances cleaning and other materials
        bins receptacles and other equipment for the proper performance of their
        duties.

(vi)    Such sum or sums from time to time as the Landlord's surveyor shall
        certify as desirable to be retained by the Landlord by way of a reserve
        fund against depreciation of plant and fixed equipment.

(vii)   All rates outgoings insurance premiums service charge and rental and
        service charge values and other incidental expenses of any accommodation
        provided in the Building or elsewhere for occupation by a resident
        caretaker or other persons employed in connection with the provision of
        the said services.

(viii)  The cost of maintaining repairing servicing renewing and replacing all
        heating air-conditioning ventilation and drainage plant installations
        hot and cold water and sanitary systems lifts equipment standby
        generator security fire alarm and fire prevention apparatus and
        sprinkler units (if any) (including electrical wiring gas oil and other
        necessary pipes) and all machinery and apparatus used in connection
        therewith as may from time to time be in the Building and any
        maintenance contracts in respect thereof (including all charges for
        water gas electricity motor fuel or power and all other costs of
        operating and running the said equipment plant and apparatus).

(ix)    The cost of providing security and hall porterage facilities for the
        Building.

                                       22
<PAGE>

(x)     The cost of cleaning the exterior of the windows of the Building and
        the interior and exterior of all windows and glass in the Common Parts.

(xi)    The cost of cleaning maintaining redecorating and lighting the Common
        Parts and the car parking areas of the Building and providing hot and
        cold water towels and toilet and other requisites in all the lavatories
        in the Building.

(xii)   save to the extent already provided for in this Schedule the costs to
        the Landlords of complying with its obligations under this Lease.

(xiii)  The cost of repairing renewing maintaining decorating amending altering
        cleaning and when necessary rebuilding the Common Parts main walls roof
        structure foundations columns pillars beams slabs external double
        glazing and windows window-frames and the glass therein and exterior of
        the Building (which expression in this particular context shall without
        prejudice to the generality thereof be deemed to include all parts of
        the Building and Conducting Media excluded from the demise as set out in
        the first schedule) and any land including any car park and accessways
        areas passages staircases landings walls fences drains pipes wires
        cables water and sanitary apparatus and all other conveniences and
        things for the time being used or capable of being used in connection
        therewith or belonging thereto and for which the Tenant is not herein
        made expressly liable.

(xiv)   The cost of carrying out any other works or services of any kind
        whatsoever which the landlord may from time to time consider desirable
        for the purpose of maintaining or improving services in or for the
        Building for the common benefit of the tenants and other occupiers of
        the Building.

(xv)    The removal of waste paper refuse and garbage from the refuse disposal
        area.

(xvi)   The payment of any rates (including water rates) charges assessments or
        outgoings in respect of the Common Parts or the plantrooms liftroom and
        other accommodation in respect of equipment plant and apparatus referred
        to in this schedule.

(xvii)  The provision tending and maintenance of such plants and other
        landscaping or decorative features within the Common Parts as the
        landlord may from time to time deem fit.

(xviii) Any value added tax or other similar tax payable by the Landlord in
        respect of any of the matters in this schedule insofar as the same is
        not recoverable by the Landlord as an input.

(xix)   The provision of the Car Park Services.

                                       23
<PAGE>

                                   Schedule 6
                Services which the Landlord covenants to provide

(i)   Between the hours of 8 a.m. and 6 p.m. Mondays to Fridays (bank and other
      public holidays excepted) and at such other times as the Tenant may
      request to provide a reasonable supply of air-conditioning and (during the
      winter months) central heating to the Premises and the Common Parts.

(ii)  To provide a reasonable supply of hot and cold water to the Common Parts.

(iii) To provide reasonable security caretaking and porterage facilities for the
      Building and to decorate the Common Parts.

(iv)  To maintain repair amend renew cleanse repaint and redecorate and
      otherwise keep in good and tenantable condition:

      (a)   the structure of the Building and in particular the roofs
            foundations columns pillars beams floor slabs main walls and
            external surfaces of the Building;

      (b)   the Common Parts;

      (c)   the Conducting Media in under or upon the Building which shall serve
            the same (excluding nevertheless any which exclusively serve the
            Premises);

      (d)   the plantrooms lift motor rooms and other accommodation in respect
            of the equipment plant and apparatus referred to in paragraph (viii)
            of Schedule 5;

(v)   To maintain repair service renew and replace all lighting in the Common
      Parts and all heating air-conditioning ventilation and drainage plant
      installations hot and cold water and sanitary systems lifts equipment
      standby generator security fire alarm and fire prevention apparatus and
      sprinkler units (if any) (including electrical wiring gas oil and other
      necessary pipes) and all machinery and apparatus used in connection
      therewith as may from time to time be in the Building.

(vi)  The provision tending and maintenance of such plants and other landscaping
      or decorative features within the Common Parts as the Landlord may from
      time to time deem fit.

                                       24
<PAGE>

                                   Schedule 7
                                    Car Park

                           Part 1 - Car Park Covenants

In respect of the Car Park Spaces the Tenant covenants as follows:

1     To pay Uniform Business Rates

1.1   To pay and discharge all Uniform Business Rates relating to the Car Park
      Spaces at the times when they become due.

1.2   Not without Consent (which shall not be unreasonably withheld or delayed)
      to make any claim for relief in respect of Uniform Business Rates for the
      Car Park Spaces.

2     Yielding up on Determination

      On Determination of the Term the Tenant to yield up the Car Park Spaces
      with vacant possession.

3     Insurance

      The Tenant shall:

3.1.1 not knowingly do anything which shall or may cause any of the insurance
      policies for the Building to be void or voidable or increase the premiums
      payable under them;

3.1.2 not knowingly do anything which shall or may cause the insurance of any
      adjoining or neighbouring property for the time being owned by the
      Superior Landlord to be void or voidable;

3.1.3 not insure or maintain insurance of the Car Park Spaces against any of the
      Insured Risks.

4     Use

4.1   The Tenant shall not use either Car Park Spaces other than for the purpose
      of parking one private motor vehicle belonging to or hired by the Tenant
      or any authorised subtenant or employee of the Tenant.

4.2   The Tenant shall not use the Car Park Spaces for any purpose or activity
      which is illegal immoral noisy noxious dangerous or offensive or which may
      be or become a nuisance to or cause damage to the Landlord or the Superior
      Landlord or any other person or which might be harmful to the Car Park
      Spaces or the Building.

4.3   The Tenant shall not use the Car Park Spaces for the purpose of carrying
      out any washing polishing repairing (save in emergency) or overhauling of
      any motor vehicle.

4.4   The Tenant shall not store any inflammable or dangerous liquid or
      substance on the Car Park Spaces (other than in the oil reservoirs and
      petrol tanks of any motor vehicle).

5     Alterations

      The Tenant shall not make any alteration addition or improvement to the
      Car Park Spaces whether structural or otherwise.

                                       25
<PAGE>

6     Legal Obligations

      The Tenant shall not breach any Legal Obligations relating to the Car Park
      Spaces (in so far as they relate to or affect the Car Park Spaces or the
      Tenant's use of them).

7     Rights and Easements

7.1   The Tenant shall not grant to any third party any rights of any nature
      over the Car Park Space.

7.2   The Tenant shall not do anything to jeopardise all easements and rights
      currently enjoyed by the Car Park Spaces.

8     Car Park Regulations

      The Tenant shall comply with the Car Park Regulations set out in part 2 of
      this schedule.

                          Part 2 - Car Park Regulations

1     Not to cause any unnecessary noise vibration or exhaust fumes within the
      Car Park

2     Not to do anything in the use of the Car Park which may be or become a
      nuisance or annoyance or inconvenience or cause damage to the Landlord or
      any other user of the Car Park

3     Not to obstruct the Access Roads and not to park any motor vehicle
      anywhere in the Car Park or elsewhere in the Building except in the Car
      Park Spaces

4     Not to deposit in the Car Park any rubbish litter or refuse of any kind
      other than in any proper receptacles provided for the purpose

5     To use care and diligence when driving motor vehicles into the Car Park
      Spaces and when parking motor vehicles in the Car Park Spaces to do so in
      such manner that such motor vehicles do not in any way obstruct the
      ingress or egress of any motor vehicle into or out of any adjoining
      parking space and so that they do not prevent access to any adjoining
      motor vehicle

6     To comply with all reasonable directions made by the Landlord relating to
      security or fire precautions in respect of the Car Park

7     To comply with all reasonable directions and requests of the Landlord for
      regulating and controlling traffic within the Car Park including without
      limitation directions relating to the speed at which traffic within the
      Car Park may travel

                                       26
<PAGE>

                                     Part 3

                                Car Park Services

1     The cleaning and maintenance of the Car Park.

2     The provision and operation in the Car Park of such fire prevention fire
      fighting and fire alarm equipment and signs as may be required by any
      authority or by the insurers.

3     Keeping lit at appropriate times all appropriate parts of the Car Park.

4     So far as reasonably practicable keeping open and unobstructed the Access
      Roads (subject to any temporary closure from time to time).

5     The provision of security services and personnel for the purposes of
      surveillance and supervision of users of the Car Park (both vehicular and
      pedestrian).

6     The provision of all necessary signs or notices in the Car Park.

THE COMMON SEAL of PRUDENTIAL            )
PROPERTY INVESTMENT MANAGERS             )
LIMITED acting as attorney for THE       )
PRUDENTIAL ASSURANCE COMPANY             )
LIMITED was affixed in the presence of:  )

[Name of sealing officer] /s/ S.C. KING

           /s/ S.C. King
Signature: ------------------------

Duly appointed and authorised sealing          [SEAL]
officer of Prudential Property Investment
Managers Limited

                                       27
<PAGE>

THIS DEED OF AGREEMENT is made the 20 day of April 2001 BETWEEN:

(1)   Foremans Limited whose registered office is at 17 Grosvenor Gardens,
      London, SW1W 0BD ('the Consultant'); and

(2)   Mercator Software Limited whose registered office is at 114 Rochester Row,
      London, SWiP 1JQ ('the Company')

WHEREAS:

      A.    The Company has entered into an agreement for lease with City Tower
            Limited (the 'Employer') in respect levels 1 and 2, City Tower, 40
            Basinghall Street, London, EC2V 5DE (the 'Premises')

      B.    By a contract ('the Appointment') dated 6th June, 2000 the Employer
            has appointed the Consultant as mechanical and engineering
            consultants in connection with renovation works at the Premises (the
            'Works')

      C.    The Employer is the employer under a building contract ('the
            Building Contract') which it has entered into with Blenheim House
            Construction Limited for the execution of the Works

NOW IT IS HEREBY AGREED as follows:

      1.    The Consultant warrants that it has exercised and will continue to
            exercise all the professional skill, care and diligence required by
            the Appointment in the performance of its duties under the
            Appointment and all other services and duties performed and
            undertaken, provided that the Consultant shall have no greater
            liability to the Company by virtue of this Agreement than it would
            have had if the Company had been named as a joint 'Employer' under
            the Appointment.

      2.    The Consultant further warrants that it has complied or will comply
            with its obligations in relation to the use or specification for use
            of goods, materials substances or products referred to in paragraph
            8 of the Appointment.

      3.    The Company and its appointee shall have a license to copy and use
            and to reproduce documentation on the same terms as paragraph 12 of
            the Appointment.

      4.    The Consultant shall maintain professional indemnity insurance in
            the amount stated in and in accordance with the requirements of the
            Appointment. As and when it is reasonably requested to do so by the
            Company, the Consultant shall produce for inspection documentary
            evidence that its professional indemnity insurance has been
            maintained.
<PAGE>

                                       2

      5.    For the avoidance of doubt the Consultant's liability under this
            Deed shall cease twelve years from the Practical Completion date.

IN WITNESS whereof the parties hereto have caused their respective common seals
to be affixed hereunder the day and year first before written.

The COMMON SEAL of              )
FOREMANS LIMITED was            )
hereto affixed in the presence  )
of:                             )

                    Director          /s/ [ILLEGIBLE]         [SEAL]

                    Director          /s/ [ILLEGIBLE]

Signed as a deed by          )
MERCATOR SOFTWARE            )
LIMITED acting by a          )
director and its Secretary   )
(or two directors)           )

                    Director          /s/ [ILLEGIBLE]         [SEAL]

                    Secretary         /s/ [ILLEGIBLE]
<PAGE>

THIS DEED OF AGREEMENT is made the 20 day of April 2001 BETWEEN:

(1)   John Shreeves & Partners Limited whose registered office is situate at 66
      Turnmill Street, London, EC1M 5RR ('the Consultant'); and

(2)   Mercator Software Limited whose registered office is at 104 Rochester Row,
      London, SW1P 1JQ ('the Company')

WHEREAS:

      A.    The Company has entered into an agreement for lease ('the
            Agreement') with City Tower Limited (the 'Employer') in respect of
            levels 1 and 2, City Tower, 40 Basinghall Street, London, EC2V 5DE
            (the 'Premises')

      B.    By a contract ('the Appointment') dated 6th June, 2000 the Employer
            has appointed the Consultant as quantity surveyors and project
            managers in connection with renovation works at the Premises (the
            'Works')

      C.    The Employer is the employer under a building contract ('the
            Building Contract') which it has entered into with Blenheim House
            Construction Limited for the execution of the Works

NOW IT IS HEREBY AGREED as follows:

      1.    The Consultant warrants that it has exercised and will continue to
            exercise all the professional skill, care and diligence required by
            the Appointment in the performance of its duties under the
            Appointment and all other services and duties performed and
            undertaken, provided that the Consultant shall have no greater
            liability to the Company by virtue of this Agreement than it would
            have had if the Company had been named as a joint 'Employer' under
            the Appointment.

      2.    The Consultant further warrants that it has complied or will comply
            with its obligations in relation to the use or specification for use
            of goods, materials substances or products referred to in paragraph
            8 of the Appointment.

      3.    The Company and its appointee shall have a licence to copy and use
            and to reproduce documentation on the same terms as paragraph 12 of
            the Appointment.
<PAGE>

                                       2

      4.    The Consultant shall maintain professional indemnity insurance in
            the amount stated in and in accordance with the requirements of the
            Appointment. As and when it is reasonably requested to do so by the
            Company, the Consultant shall produce for inspection documentary
            evidence that its professional indemnity insurance has been
            maintained.

      5.    For the avoidance of doubt the Consultant's liability under this
            Deed shall cease fifteen years from the Practical Completion date.

IN WITNESS whereof the parties hereto have caused their respective common seals
to be affixed hereunto the day and year first before written.

The COMMON SEAL of            )
JOHN SHREEVES &               )
PARTNERS was hereto           )
affixed in the presence of:   )

                         Director  /s/ [ILLEGIBLE]
                                   --------------------
                                                                [SEAL]
                         Director  /s/ [ILLEGIBLE]
                                   -------------------
<PAGE>

THIS DEED OF AGREEMENT is made the 20 day of April 2001 BETWEEN:

(1)   Bunyan Meyer & Partners Limited whose registered office is situate at
      Stanhope House, 475 Kingston Road, Ewell, Epsom, Surrey, KTl9 OEE ('the
      Consultant'); and

(2)   Mercator Software Limited whose registered office is at 114 Rochester Row,
      London, SW1P lJQ ('the Company')

WHEREAS:

      A.    The Company has entered into an agreement for lease with City Tower
            Limited (the 'Employer') in respect of levels 1 and 2, City Tower,
            40 Basinghall Street, London, EC2V 5DE (the 'Premises')

      B.    By a contract ('the Appointment') dated 16th June, 2000 the Employer
            has appointed the Consultant as structural engineering consultants
            in connection with renovation works at the Premises (the 'Works')

      C.    The Employer is the employer under a building contract ('the
            Building Contract') which it has entered into with Blenheim House
            Construction Limited for the execution of the Works

NOW IT IS HEREBY AGREED as follows:

      1.    The Consultant warrants that it has exercised and will continue to
            exercise all the professional skill, care and diligence required by
            the Appointment in the performance of its duties under the
            Appointment and all other services and duties performed and
            undertaken, provided that the Consultant shall have no greater
            liability to the Company by virtue of this Agreement than it would
            have had if the Company had been named as a joint 'Employer' under
            the Appointment.

      2.    The Consultant further warrants that it has complied or will comply
            with its obligations in relation to the use or specification for use
            of goods, materials substances or products referred to in paragraph
            8 of the Appointment.

      3.    The Company and its appointee shall have a license to copy and use
            and to reproduce documentation on the same terms as paragraph 12 of
            the Appointment.

      4.    The Consultant shall maintain professional indemnity insurance in
            the amount stated in and in accordance with the requirements of the
            Appointment. As and when it is reasonably requested to do so by the
            Company, the Consultant shall produce for inspection documentary
            evidence that its professional indemnity insurance has been
            maintained.
<PAGE>

                                        2

      5.    For the avoidance of doubt the Consultant's liability under this
            Deed shall cease fifteen years from the Practical Completion date.

IN WITNESS whereof the parties hereto have caused their respective common seals
to be affixed hereunto the day and year first before written.

The COMMON SEAL of                  )              [SEAL]
BUNYAN MEYER AND                    )
PARTNERS LIMITED was                )
hereto affixed in the presence of:  )

/s/ [ILLEGIBLE]  Director

/s/ [ILLEGIBLE]  Secretary

Signed as a deed by          )                      [SEAL]
MERCATOR SOFTWARE            )
LIMITED acting by a          )
director and its Secretary   )
(or two directors)           )

                    Director          /s/ [ILLEGIBLE]

                    Secretary         /s/ [ILLEGIBLE]

                                       28
<PAGE>

THIS DEED OF AGREEMENT is made the 20 day of April 2001 BETWEEN:

(1)   Swanke Hayden Connell International Limited whose registered office is
      situate at 25 Christopher Street, London, EC2A 2BS ('the Consultant'); and

(2)   Mercator Software Limited whose registered office is at 104 Rochester Row,
      London, SW1P 1JQ ('the Company')

WHEREAS:

      A.    The Company has entered into an agreement for lease with City Tower
            Limited (the 'Employer') in respect of levels 1 and 2, City Tower,
            40 Basinghall Street, London, EC2V 5DE (the 'Premises')

      B.    By a contract ('the Appointment') dated 16th June, 2000 the Employer
            has appointed the Consultant as architects in connection with
            renovation works at the Premises (the 'Works')

      C.    The Employer is the employer under a building contract ('the
            Building Contract') which it has entered into with Blenheim House
            Construction Limited for the execution of the Works

NOW IT IS HEREBY AGREED as follows:

      1.    The Consultant warrants that it has exercised and undertakes that it
            will continue to exercise all the professional skill, care and
            diligence required by the Appointment in the performance of its
            duties under the Appointment, provided that the Consultant shall
            have no greater liability to the Company by virtue of this Agreement
            than it would have had if the Company had been named as a joint
            'Employer' under the Appointment.

      2.    The Consultant further warrants that it has complied or will comply
            with its obligations in relation to the specification for use of
            goods, materials substances or products referred to in paragraph 8
            of the Appointment.

      3.    The Company and its appointee shall have a license to copy and use
            and to reproduce documentation on the same terms as paragraph 12 of
            the Appointment.

      4.    The Consultant shall maintain professional indemnity insurance in
            the amount stated in and in accordance with the requirements of the
            Appointment. As and when it is reasonably requested to do so by the
            Company, the Consultant shall produce for inspection documentary
            evidence that its professional indemnity insurance has been
            maintained.

      5.    For the avoidance of doubt the Consultant's liability under this
            Deed shall cease twelve years from the Practical Completion date.
<PAGE>

IN WITNESS whereof the parties hereto have caused their respective common seals
to be affixed hereunto the day and year first before written.

The COMMON SEAL of          )
SWANKE HAYDEN               )
CONNELL                     )
INTERNATIONAL LIMITED       )
was hereto affixed in the   )
presence of:                )

                      Director      /s/ [ILLEGIBLE]         [SEAL]

                      Secretary     /s/ [ILLEGIBLE]

Signed as a deed by          )
MERCATOR SOFTWARE            )
LIMITED acting by a          )
director and its Secretary   )
(or two directors)           )

                      Director      /s/ [ILLEGIBLE]         [SEAL]

                      Secretary     /s/ [ILLEGIBLE]

                                       2
<PAGE>

                              Dated 20 April 2001
                              -------------------

                           MERCATOR SOFTWARE, INC          (1)

                                       and

                  THE PRUDENTIAL ASSURANCE COMPANY LIMITED (2)

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

                                  Counterpart/
                                    GUARANTEE
               relating to a Lease of Levels 1 and 2, City Tower,
                      40 Basinghall Street, London EC2V 5DE

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

                                   Norton Rose
<PAGE>

                                    Contents

Clause                                                                      Page

1   Definitions and Interpretation ............................................1

2   Undertaking ...............................................................2

3   Terminating Event .........................................................2

4   Enforcement ...............................................................2

5   Security taken by Guarantor ...............................................3

6   Set-off and Deductions ....................................................3

7   Interest ..................................................................3

8   Settlement and Discharge ..................................................3

9   Notices ...................................................................4

10  Severable Nature of Obligations ...........................................4

11  Continuance of Tenant's Obligations .......................................4

12  Execution in Counterpart ..................................................4

13  Applicable law, submission to jurisdiction and address for service ........4
<PAGE>

THIS DEED made on 20 April 2001 BETWEEN:

(1)         MERCATOR SOFTWARE, INC whose corporate headquarters is at 45 Danbury
            Road Wilton Connecticut 06897 (the "Guarantor")

(2)         THE PRUDENTIAL ASSURANCE COMPANY LIMITED whose registered office is
            at 142 Holborn Bars London EC1N 2NH (the "Landlord")

WHEREAS this Deed is entered into by the Guarantor in consideration of the
Landlord granting the Lease to the Tenant.

THIS DEED WITNESSES as follows:

1           Definitions and Interpretation

            In this Deed, unless the context otherwise requires:

            "AGA" means any authorised guarantee agreement which the Tenant may
            from time to time enter into in respect of the Lease;

            "Landlord" includes the immediate reversioner from time to time to
            the Lease, or the party who would be that reversioner if the Lease
            still subsisted;

            "Lease" means a lease of the Premises dated 20 April 2001 made
            between the Landlord (1) and the Tenant (2) and includes:

            (a)   any continuation of the Lease pursuant to the Landlord and
                  Tenant Act 1954;

            (b)   any overriding lease granted to the Tenant pursuant to the
                  Landlord and Tenant (Covenants) Act 1995;

            (c)   any lease granted to the Tenant pursuant to an AGA;

            (d)   any deed of variation, licence, consent, or other document
                  supplemental or collateral to, or otherwise associated with,
                  the Lease to which the Tenant is a party, whether presently
                  existing or not;

            "Premises" means Levels 1 and 2, City Tower, 40 Basinghall Street,
            London EC2V 5DE;

            "Tenant's Obligations" means the obligation to pay all sums from
            time to time due or expressed to be due, and to perform all other
            obligations which are from time to time owed, or expressed to be
            owed, to the Landlord by the Tenant under:

            (a)   the Lease or any AGA;

            (b)   any compromise or arrangement agreed to by the Landlord and
                  the Tenant, under which the Landlord agrees not to seek to
                  exercise any of its rights or powers under the Lease or any
                  AGA, or to compromise, abandon or waive any such rights,
                  powers, or any claim against the Tenant;

            (c)   any order of the Court made in respect of the Lease or any
                  AGA, or any claim arising under them, including, without
                  limitation, an order granting relief against forfeiture;

            and includes the obligation to pay all sums from time to time
            payable by, or on behalf of, the Tenant to the Landlord in
            connection with, or arising out of the termination of the Lease or
            any AGA;

            "Tenant" means Mercator Software Limited;

                                       1
<PAGE>

            "Terminating Event" means the disclaimer or repudiation of the Lease
            by or on behalf of the Tenant, or the forfeiture of the Lease, or
            the Tenant ceasing to exist so that the Lease becomes bona vacantia.

1.1         In this Deed unless the context otherwise requires:

1.1.1       words importing any gender include every gender;

1.1.2       references to numbered clauses are to the relevant numbered clauses
            of this Deed;

i.1.3       words importing the plural shall include the singular and vice
            versa;

1.1.4       references in this Deed to the Lease, any AGA or any other document,
            are to the Lease, AGA or that other document as varied or amended
            from time to time.

2           Undertaking

2.1         The Guarantor covenants that the Tenant shall observe and perform
            the Tenant's Obligations, and that if it does not, then the
            Guarantor shall do so.

2.2         The Guarantor's obligation under clause 2.1 is a primary obligation,
            and it shall be liable for the fulfilment of all the Tenant's
            Obligations as though it were named as the Tenant in the Lease or as
            guarantor under any relevant AGA.

2.3         If requested by the Landlord, the Guarantor shall enter into any
            deed of variation, licence, consent or other document supplemental
            to the Lease or any AGA to which the Tenant is party, to acknowledge
            that its liabilities under this Deed include the Tenant's
            liabilities under that document.

3           Terminating Event

3.1         The Guarantor shall, if required by the Landlord in writing within
            the period beginning on the day of a Terminating Event and expiring
            three months after the Landlord has been notified in writing by the
            Guarantor or the Tenant of that Terminating Event, within one month
            of the Landlord's notice, accept (and execute and deliver to the
            Landlord a counterpart of) a new lease of the Premises, and the
            Guarantor shall also pay all legal charges and stamp duties incurred
            by the Landlord in respect of that new lease.

3.2         The new lease referred to in clause 3.1 shall:

3.2.1       be for a term commencing on the date of the Terminating Event and
            expiring on the date on which the contractual term granted by the
            Lease would have expired by effluxion of time;

3.2.2       be at the rent which would have been payable under the Lease
            (ignoring any period of rent cesser or rent reduction then current)
            if it still existed; if, at the date of the Terminating Event, there
            is a rent review due under the Lease which has not been agreed or
            determined, then the new lease shall be granted at the rent due
            under the Lease before that review, and the second day of the term
            of the new lease shall be a rent review date (in addition to any
            other rent review dates) under the new lease;

3.2.3       be otherwise on the same terms as the Lease, save that any rights or
            obligations which arise at a particular date (whether or not
            calculated by reference to the start of the term of the Lease) shall
            arise on the same dates under the new lease; and

3.2.4       take effect from the date of the Terminating Event.

4           Enforcement

4.1         The Landlord may enforce this Deed without first:

                                       2
<PAGE>

4.1.1       making demand on, or taking proceedings against the Tenant; or

4.1.2       having recourse to any other security which may from time to time be
            held by the Landlord in respect of the Tenant's Obligations.

5           Security taken by Guarantor

5.1         Until the Tenant's Obligations have been paid and discharged in
            full, the Guarantor shall not, without the Landlord's written
            consent, exercise its rights:

5.1.1       of subrogation or indemnity in respect of the Tenant's Obligations;

5.1.2       to take the benefit of, or share in, or enforce any security or
            other guarantee or indemnity for the Tenant's Obligations; or

5.1.3       to prove in the bankruptcy or liquidation of the Tenant in
            competition with the Landlord.

5.2         The Guarantor warrants that it has not taken any security from the
            Tenant and agrees not to do so.

5.3         Any security taken by the Guarantor in breach of clause 5.2, and all
            moneys received from it, and all moneys received by the Guarantor in
            breach of clause 5.1, shall be held in trust for the Landlord to the
            extent necessary for the discharge of the liabilities of the
            Guarantor under this Deed.

6           Set-off and Deductions

6.1         All payments made by the Guarantor under this Deed shall be made
            without set-off or deduction (whether legal or equitable).

6.2         If the Guarantor is required by law to make any deduction or
            withholding from a payment under this Deed (save for deduction of
            tax which the Landlord can reclaim from the Inland Revenue, or which
            the Landlord would have been obliged to pay), the sum due from the
            Guarantor in respect of such payment shall be increased to the
            extent necessary to ensure that after that deduction or withholding
            the Landlord receives and retains a net sum equal to the sum which
            it would have received had no such deduction or withholding been
            required to be made.

7           Interest

7.1         Any sum payable by the Guarantor under this Deed which is not paid
            on the date that it is due shall bear interest at the Interest Rate
            defined in the Lease, and that interest shall be paid on demand.

7.2         Clause 7.1 shall not operate to charge interest twice on the same
            amount for the same period, so that if any sum payable by the
            Guarantor includes interest payable under the Lease, it shall not,
            to that extent, bear interest under this Deed.

8           Settlement and Discharge

8.1         Any release or discharge of, or settlement between, the Guarantor
            and the Landlord, shall be conditional upon any security disposition
            or payment to the Landlord by the Tenant, the Guarantor, any
            co-guarantor, or any other person not being void, set aside or
            ordered to be refunded pursuant to any law or enactment relating to
            bankruptcy, liquidation or insolvency or for any other reason
            whatever. If such condition shall not be fulfilled the Landlord
            shall be entitled to enforce this Deed subsequently as if any such
            release discharge or settlement had not occurred.

8.2         Any money received in connection with this Deed (whether before or
            after the liquidation or bankruptcy of the Tenant or the Guarantor)
            may be placed to the credit of a suspense account

                                       3
<PAGE>

            with a view to preserving claims against the Tenant or the
            Guarantor, or may be applied by the Landlord in or towards
            satisfaction of such of the Tenant's Obligations as the Landlord in
            its absolute discretion may from time to time conclusively and
            reasonably determine.

9           Notices

            Any notice, demand or legal process to be served on the Guarantor
            under this Deed shall be in writing, and, (in addition to any other
            valid method of service) shall be sufficiently served if delivered
            to, or if sent by registered or recorded delivery post to, the
            address for service given in clause 13.

10          Severable Nature of Obligations

            Each of the provisions of this Deed is severable from the others. If
            at any time one or more of such provisions becomes illegal, invalid
            or unenforceable, then the validity and enforceability of the
            remaining provisions of this Deed shall not affected.

11          Continuance of Tenant's Obligations

11.1        The liability of the Guarantor, as the primary obligor, shall
            continue notwithstanding any, or any combination of, the following:

11.1.1      any forbearance by the Landlord to the Tenant in enforcing any of
            the Tenant's Obligations;

11.1.2      any forbearance by the Landlord to the Guarantor in enforcing any of
            the rights granted by this Deed;

11.1.3      any extension of time, or any other concessions, given by the
            Landlord to the Tenant or the Guarantor;

11.1.4      any legal limitation or incapacity relating to the Tenant or the
            Guarantor;

11.1.5      the Tenant being dissolved, wound up or ceasing to exist;

11.1.6      the giving and subsequent withdrawal of any notice to determine or
            rescind the Lease;

11.1.7      any variation of the demise or in the other terms of the Lease;

11.1.8      the disclaimer or termination of the Lease (other than termination
            by way of surrender or effluxion of time);

11.1.9      the taking, holding, varying, releasing or not enforcing any other
            security for the liabilities of the Tenant or the Guarantor;

11.1.10     the release of the Guarantor otherwise than by a deed executed by
            the Landlord;

11.1.11     any other act, omission or matter whatsoever, which but for this
            provision would serve to release the Guarantor, either wholly or
            partly.

12          Execution in Counterpart

            This Deed may be entered into in any number of counterparts, and by
            the parties to it on separate counterparts, each of which when
            executed and delivered shall be an original, but all the
            counterparts shall together constitute one and the same instrument

13          Applicable law, submission to jurisdiction and address for service

13.1        This Deed shall be governed by, and construed in accordance with,
            English Law.

                                       4
<PAGE>

13.2        Any dispute incidental upon this Deed shall be referred to the High
            Court of Justice in England, to the jurisdiction of which each of
            the parties hereto irrevocably submits. The jurisdiction of the High
            Court of Justice in England shall be an exclusive jurisdiction and
            no courts outside England shall have jurisdiction to hear or
            determine any such claim.

13.3        The Guarantor irrevocably authorises and appoints Pettman Smith of
            79 Knightsbridge London SW1X 7RB (or such other firm of solicitors
            resident in England or Wales as it may from time to time by written
            notice to the Landlord substitute) to accept service of all legal
            process arising out of or connected with this Deed and service on
            the said Pettman Smith (or such substitute) shall be deemed to be
            service on the Guarantor

IN WITNESS of which each party has duly executed this Agreement as a Deed the
date first above written

THE COMMON SEAL of PRUDENTIAL
PROPERTY INVESTMENT MANAGERS
LIMITED acting as attomey for THE
PRUDENTIAL ASSURANCE COMPANY
LIMITED was affixed in the presence of:         [SEAL]

[Name of sealing officer] S.C. King

Signature: /s/ S.C. King
          ......................

Duly appointed and authorised sealing
officer of Prudential Property Investment
Managers Limited

                                       5
<PAGE>

                               Dated 20 April 2001

                    RUSHMOOR MECHANICAL SERVICES LIMITED (1)

                                [Sub-Contractor]

                                     - and -

                          MERCATOR SOFTWARE LIMITED (2)

                                    [Tenant]

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

                              - DEED OF WARRANTY -

                         Relating to a refurbishment at

                                   City Tower
                            Podium and Levels 1 and 2

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

                                     Page 1
<PAGE>

DOMESTIC SUB-CONTRACTOR'S COLLATERAL WARRANTY TO TENANT

THIS DEED is made the   day of               2000

BETWEEN:-

(1)   RUSHMOOR MECHANICAL SERVICES LIMITED (Company Number 1307680) whose
      registered office is situated at 82 High Street, Sandhurst, Berkshire GU47
      8EE ("the Sub-Contractor")

(2)   MERCATOR SOFTWARE LIMITED (Company Number 1293378) whose registered office
      is situated at 114 Rochester Row, London SW1P-1JQ ("the Tenant" which
      expression shall where the context so admits include its successors in
      title)

WHEREAS:-

A.    BLENHEIM HOUSE CONSTRUCTION LIMITED ("the Contractor") has entered into an
      agreement dated the 22nd September 2000 ("the Building Contract") with
      City Tower Limited, 40 Basinghall Street, London, EC2V 5DE ("the
      Employer") to carry out the Works as defined therein at City Tower, 40
      Basinghall Street, London, EC2V 5DE ("the Development").

B.    The Contractor has entered into an agreement with the Sub-Contractor dated
      the 6th April 2000 ("the Sub-Contract") to carry out the Works as defined
      therein in execution of part of the Works and it is a term of the
      Sub-Contract that the Sub-Contractor enters into these presents.

C.    The Tenant intends to enter into or has entered into an agreement to
      occupy the whole or part of the Works when completed.

D.    The Tenant and the Sub-Contractor wish by this Agreement to provide a
      direct contractual relationship between the Tenant and the Sub-Contractor
      as set out in Clause 1 hereof.

                                     Page 2
<PAGE>

NOW IT IS HEREBY AGREED as follows:-

1.    In consideration of the Tenant paying to the Sub-Contractor the sum of ,1
      (one pound) the Sub-Contractor hereby covenants with the Tenant that is
      has performed and will perform each and all of its duties and obligations
      under the Sub-Contract strictly in accordance with its terms whether
      express or implied.

2.    The Sub-Contractor shall not knowingly specify, authorise or cause to be
      used the following:

      any goods, materials, substances, products or equipment which are:-

      (i)   in themselves stated in the Specification to be prohibited.

      (ii)  not in accordance with relevant British or European Standards and
            Codes of Practice.

      (iii) generally known within the construction or engineering industries at
            the time of use or specification (as appropriate) to be deleterious
            to (a) health and safety in humans or (b) the durability of the
            Building by reference to its likely design life based on the
            Specification.

      (iv)  not in accordance with "Good Practice in the Selection of
            Construction Materials" published 1997 by the BCO.

      (v)   or might in themselves or as a result of their use pose a hazard to
            health and in particular to the health of the personnel involved in
            the construction or maintenance of the Works or the eventual
            occupants thereof.

      (vi)  other materials which at the time the Works is being carried out
            generally accepted as or reasonably suspected of:-

                                     Page 3
<PAGE>

            (a)   being deleterious in themselves;

            (b)   becoming deleterious when used in a particular situation or in
                  combination with other materials;

            (c)   becoming deleterious with passage of time

            (d)   becoming deleterious without a level of maintenance which is
                  higher than that which would normally be expected in a
                  building of the type under construction; or

            (e)   being damaged by or causing damage to the structure in which
                  they are incorporated or to which they are affixed

            "deleterious" meaning and including any use of materials or
            combination of materials that would or might have the effect of
            reducing the normal life expectancy of the materials themselves, any
            materials to which they are affixed, the structure in which they are
            incorporated or to which they are affixed, of the Works or any part
            thereof, to a period less than that which has been specified or
            would normally be expected.

      vii)  Inter alia:-

      a)    High alumina cement in structural elements

      b)    Woodwool slabs in permanent formwork to concrete or in structural
            elements

      c)    Calcium Chloride admixtures for use in reinforced concrete

      d)    Asbestos products (save where natural elements thereof are used in
            products which comply with relevant British Standards
            Specifications)

                                     Page 4
<PAGE>

      e)    Aggregates for use in reinforced concrete which do not comply with
            British Standards Specification 882:1983 and aggregates for use in
            concrete which do not comply with British Standard Specification
            8100:1985; and

      f)    Lead or any products containing lead in a form likely to be ingested
            or inhaled by humans (but so that copper alloy products containing
            lead may nonetheless be used in drinking water pipework); and

      g)    Urea formaldehyde foam in a form that releases formaldehyde so that
            it is likely to be ingested or inhaled by humans in harmful
            quantities; and

      h)    Any other material generally known at the date of its use to be
            deleterious (in the form quantity and application actually used) to
            (a) human health and safety or (b) the durability of the Works in
            which it is used (unless the presence of the material is integral to
            and essential for such Works) and/or not in accordance with good
            building practice at the date when specified and/or not in
            accordance with good building practice at the date when specified

3.    The Sub-Contractor acknowledges that the Tenant shall be deemed to have
      relied upon the Sub-Contractor's reasonable skill and judgement in the
      performance of its duties to the Contractor under the Sub-Contract. The
      liability of the Sub-Contractor shall not be released, diminished or in
      any other way affected by any independent enquiry into any relevant matter
      which may be made or carried out by or on behalf of the Tenant nor by any
      act or omission of any firm, company or party carrying out such enquiry,
      whether or not such act or omission might give rise to an independent
      liability of such firm, company or party to the Tenant.

4.    The Sub-Contractor shall be liable to the Tenant in respect of any and all
      expenses liabilities costs damages losses claims or proceedings which
      arise by reason of any breach of its obligations hereunder save that it
      shall have no

                                     Page 5
<PAGE>

      greater liability and for no longer period than that which would have been
      owed to the Tenant if the Tenant had been named as joint Contractor with
      the Contractor under the Sub-Contract.

5.    The provisions of this Agreement shall be without prejudice to any rights
      or remedies which the Tenant may have against the Sub-Contractor whether
      in tort or otherwise and shall not be deemed or construed so as to limit
      or exclude any such rights or remedies.

6.    The copyright in all documents and drawings provided by the Sub-Contractor
      in connection with the Works shall remain vested in the Sub-Contractor but
      the Tenant shall have a licence to copy and use, though the Sub-Contractor
      shall not be liable for any misuse of, such documents and drawings and to
      reproduce the designs contained in them for any purpose related to the
      Works including, but without limitation, the construction, completion,
      maintenance, extension, alteration, letting, promotion, advertisement,
      reinstatement and repair of the Works.

7.    The benefit of all or any of the Sub-Contractor's obligations under this
      Deed and/or any benefit arising under or out of this Deed may be assigned
      by the Tenant without the consent of the Sub-Contractor on two occasions
      only and thereafter with due Sub-Contractor's consent which consent may
      not be unreasonably withheld or delayed.

8.    This Agreement shall be governed by and construed in accordance with the
      Laws of England. If any dispute or difference arises between the Tenant
      and the Sub-Contractor in connection with this Agreement which cannot be
      resolved by mutual agreement, it shall be referred to the non-exclusive
      jurisdiction of the English Courts.

IN WITNESS whereof the Parties have caused these presents to be executed as a
deed and delivered the day and year first before written.

                                     Page 6
<PAGE>

THE COMMON SEAL of        )                                            [SEAL]
RUSHMOOR MECHANICAL       )
SERVICES LIMITED          )
was hereunto affixed in   )
the presence of:-         )

           Director           )   /s/ [ILLEGIBLE]
                              )
           Director/Secretary )   /s/ [ILLEGIBLE]

Signed as a deed by       )
MERCATOR SOFTWARE         )
LIMITED acting by a       )
director and its secretary)
(or two directors)        )

           Director           )   /s/ [ILLEGIBLE]
                              )
           Director/Secretary )   /s/ [ILLEGIBLE]

                                     Page 7
<PAGE>

                               Dated 20 April 2001

                         GRANFLEX (ROOFING) LIMITED (1)

                                [Sub-Contractor]

                                     - and -

                          MERCATOR SOFTWARE LIMITED (2)

                                    [Tenant]

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

                              - DEED OF WARRANTY -

                         Relating to a refurbishment at

                                   City Tower
                            Podium and Levels 1 and 2

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

                                     Page 1
<PAGE>

DOMESTIC SUB-CONTRACTOR'S COLLATERAL WARRANTY TO TENANT

THIS DEED is made the       day of                      2000

BETWEEN:-

(1)   GRANFLEX (ROOFING) LIMITED (Company Number 1234422) whose registered
      office is situated at Brick Kiln Lane, Basford, Stoke-On-Trent ST4 7BT
      ("the Sub-Contractor")

(2)   MERCATOR SOFTWARE LIMITED (Company Number 1293378) whose registered office
      is situated at 114 Rochester Row, London SW1P 1JQ ("the Tenant" which
      expression shall where the context so admits include its successors in
      title)

WHEREAS:-

A.    BLENHEIM HOUSE CONSTRUCTION LIMITED ("the Contractor") has entered into an
      agreement dated the 22nd September 2000 ("the Building Contract") with
      City Tower Limited, 40 Basinghall Street, London, EC2V 5DE ("the
      Employer") to carry out the Works as defined therein at City Tower, 40
      Basinghall Street, London, EC2V 5DE ("the Development").

B.    The Contractor has entered into an agreement with the Sub-Contractor dated
      the 28th March 2000 ("the Sub-Contract") to carry out the Works as defined
      therein in execution of part of the Works and it is a term of the
      Sub-Contract that the Sub-Contractor enters into these presents.

C.    The Tenant intends to enter into or has entered into an agreement to
      occupy the whole or part of the Works when completed.

D.    The Tenant and the Sub-Contractor wish by this Agreement to provide a
      direct contractual relationship between the Tenant and the Sub-Contractor
      as set out in Clause 1 hereof.

                                     Page 2
<PAGE>

NOW IT IS HEREBY AGREED as follows:-

1.    In consideration of the Tenant paying to the Sub-Contractor the sum of ,1
      (one pound) the Sub-Contractor hereby covenants with the Tenant that is
      has performed and will perform each and all of its duties and obligations
      under the Sub-Contract strictly in accordance with its terms whether
      express or implied.

2.    The Sub-Contractor shall not knowingly specify, authorise or cause to be
      used the following:

      any goods, materials, substances, products or equipment which are:-

      (i)   in themselves stated in the Specification to be prohibited.

      (ii)  not in accordance with relevant British or European Standards and
            Codes of Practice.

      (iii) generally known within the construction or engineering industries at
            the time of use or specification (as appropriate) to be deleterious
            to (a) health and safety in humans or (b) the durability of the
            Building by reference to its likely design life based on the
            Specification.

      (iv)  not in accordance with "Good Practice in the Selection of
            Construction Materials" published 1997 by the BCO.

      (v)   or might in themselves or as a result of their use pose a hazard to
            health and in particular to the health of the personnel involved in
            the construction or maintenance of the Works or the eventual
            occupants thereof.

      (vi)  other materials which at the time the Works is being carried out
            generally accepted as or reasonably suspected of:-

                                     Page 3
<PAGE>

            (a)   being deleterious in themselves;

            (b)   becoming deleterious when used in a particular situation or in
                  combination with other materials;

            (c)   becoming deleterious with passage of time

            (d)   becoming deleterious without a level of maintenance which is
                  higher than that which would normally be expected in a
                  building of the type under construction; or

            (e)   being damaged by or causing damage to the structure in which
                  they are incorporated or to which they are affixed

            "deleterious" meaning and including any use of materials or
            combination of materials that would or might have the effect of
            reducing the normal life expectancy of the materials themselves, any
            materials to which they are affixed, the structure in which they are
            incorporated or to which they are affixed, of the Works or any part
            thereof, to a period less than that which has been specified or
            would normally be expected.

      vii)  Inter alia:-

      a)    High alumina cement in structural elements

      b)    Woodwool slabs in permanent formwork to concrete or in structural
            elements

      c)    Calcium Chloride admixtures for use in reinforced concrete

      d)    Asbestos products (save where natural elements thereof are used in
            products which comply with relevant British Standards
            Specifications)

                                     Page 4
<PAGE>

      e)    Aggregates for use in reinforced concrete which do not comply with
            British Standards Specification 882:1983 and aggregates for use in
            concrete which do not comply with British Standard Specification
            8100:1985; and

      f)    Lead or any products containing lead in a form likely to be ingested
            or inhaled by humans (but so that copper alloy products containing
            lead may nonetheless be used in drinking water pipework); and

      g)    Urea formaldehyde foam in a form that releases formaldehyde so that
            it is likely to be ingested or inhaled by humans in harmful
            quantities; and

      h)    Any other material generally known at the date of its use to be
            deleterious (in the form quantity and application actually used) to
            (a) human health and safety or (b) the durability of the Works in
            which it is used (unless the presence of the material is integral to
            and essential for such Works) and/or not in accordance with good
            building practice at the date when specified and/or not in
            accordance with good building practice at the date when specified

3.    The Sub-Contractor acknowledges that the Tenant shall be deemed to have
      relied upon the Sub-Contractor's reasonable skill and judgement in the
      performance of its duties to the Contractor under the Sub-Contract. The
      liability of the Sub-Contractor shall not be released, diminished or in
      any other way affected by any independent enquiry into any relevant matter
      which may be made or carried out by or on behalf of the Tenant nor by any
      act or omission of any firm, company or party carrying out such enquiry,
      whether or not such act or omission might give rise to an independent
      liability of such firm, company or party to the Tenant.

4.    The Sub-Contractor shall be liable to the Tenant in respect of any and all
      expenses liabilities costs damages losses claims or proceedings which
      arise by reason of any breach of its obligations hereunder save that it
      shall have no

                                     Page 5
<PAGE>

      greater liability and for no longer period than that which would have been
      owed to the Tenant if the Tenant had been named as joint Contractor with
      the Contractor under the Sub-Contract.

5.    The provisions of this Agreement shall be without prejudice to any rights
      or remedies which the Tenant may have against the Sub-Contractor whether
      in tort or otherwise and shall not be deemed or construed so as to limit
      or exclude any such rights or remedies.

6.    The copyright in all documents and drawings provided by the Sub-Contractor
      in connection with the Works shall remain vested in the Sub-Contractor but
      the Tenant shall have a licence to copy and use, though the Sub-Contractor
      shall not be liable for any misuse of, such documents and drawings and to
      reproduce the designs contained in them for any purpose related to the
      Works including, but without limitation, the construction, completion,
      maintenance, extension, alteration, letting, promotion, advertisement,
      reinstatement and repair of the Works.

7.    This Agreement shall be governed by and construed in accordance with the
      Laws of England. If any dispute or difference arises between the Tenant
      and the Sub-Contractor in connection with this Agreement which cannot be
      resolved by mutual agreement, it shall be referred to the non-exclusive
      jurisdiction of the English Courts.

IN WITNESS whereof the Parties have caused these presents to be executed as a
deed and delivered the day and year first before written.

                                     Page 6
<PAGE>

THE COMMON SEAL of        )
GRANFLEX (ROOFING) LIMITED)
was hereunto affixed in   )
the presence of:-         )

           Director           )  /s/ [ILLEGIBLE]
                              )
           Director/Secretary )  /s/ [ILLEGIBLE]

Signed as a deed by       )
MERCATOR SOFTWARE         )
LIMITED acting by a       )
director and its secretary)
(or two directors)        )

           Director           )  /s/ [ILLEGIBLE]
                              )
           Director/Secretary )  /s/ [ILLEGIBLE]

                                     Page 7
<PAGE>

                               Dated 20 April 2001

                           SCHMIDLIN (UK) LIMITED (1)

                                [Sub-Contractor]

                                     - and -

                          MERCATOR SOFTWARE LIMITED (2)

                                    [Tenant]

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

                              - DEED OF WARRANTY -

                         Relating to a refurbishment at

                                   City Tower
                            Podium and Levels 1 and 2

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

                                     Page 1
<PAGE>

DOMESTIC SUB-CONTRACTOR'S COLLATERAL WARRANTY TO TENANT

THIS DEED is made the       day of                      2000

BETWEEN:-

(1)   SCHMIDLIN (UK) LIMITED (Company Number 1418100) whose registered office is
      situated at White Lion Court, Swan Street, Old Isleworth, Middlesex TW7
      6RN ("the Sub-Contractor")

(2)   MERCATOR SOFTWARE LIMITED (Company Number 1293378) whose registered office
      is situated at 114 Rochester Row, London SW1P 1JQ ("the Tenant" which
      expression shall where the context so admits include its successors in
      title)

WHEREAS:-

A.    BLENHEIM HOUSE CONSTRUCTION LIMITED ("the Contractor") has entered into an
      agreement dated the 22nd September 2000 ("the Building Contract") with
      City Tower Limited, 40 Basinghall Street, London, EC2V 5DE ("the
      Employer") to carry out the Works as defined therein at City Tower, 40
      Basinghall Street, London, EC2V 5DE ("the Development").

B.    The Contractor has entered into an agreement with the Sub-Contractor dated
      the 6th April 2000 ("the Sub-Contract") to carry out the Works as defined
      therein in execution of part of the Works and it is a term of the
      Sub-Contract that the Sub-Contractor enters into these presents.

C.    The Tenant intends to enter into or has entered into an agreement to
      occupy the whole or part of the Works when completed.

D.    The Tenant and the Sub-Contractor wish by this Agreement to provide a
      direct contractual relationship between the Tenant and the Sub-Contractor
      as set out in Clause 1 hereof.

                                     Page 2
<PAGE>

NOW IT IS HEREBY AGREED as follows:-

1.    In consideration of the Tenant paying to the Sub-Contractor the sum of ,1
      (one pound) the Sub-Contractor hereby covenants with the Tenant that is
      has performed and will perform each and all of its duties and obligations
      under the Sub-Contract strictly in accordance with its terms whether
      express or implied.

2.    The Sub-Contractor shall not knowingly specify, authorise or cause to be
      used the following:

      any goods, materials, substances, products or equipment which are:-

      (i)   in themselves stated in the Specification to be prohibited.

      (ii)  not in accordance with relevant British or European Standards and
            Codes of Practice.

      (iii) generally known within the construction or engineering industries at
            the time of use or specification (as appropriate) to be deleterious
            to (a) health and safety in humans or (b) the durability of the
            Building by reference to its likely design life based on the
            Specification.

      (iv)  not in accordance with "Good Practice in the Selection of
            Construction Materials" published 1997 by the BCO.

      (v)   or might in themselves or as a result of their use pose a hazard to
            health and in particular to the health of the personnel involved in
            the construction or maintenance of the Works or the eventual
            occupants thereof.

      (vi)  other materials which at the time the Works is being carried out
            generally accepted as or reasonably suspected of:-

                                     Page 3
<PAGE>

            (a)   being deleterious in themselves;

            (b)   becoming deleterious when used in a particular situation or in
                  combination with other materials;

            (c)   becoming deleterious with passage of time

            (d)   becoming deleterious without a level of maintenance which is
                  higher than that which would normally be expected in a
                  building of the type under construction; or

            (e)   being damaged by or causing damage to the structure in which
                  they are incorporated or to which they are affixed

            "deleterious" meaning and including any use of materials or
            combination of materials that would or might have the effect of
            reducing the normal life expectancy of the materials themselves, any
            materials to which they are affixed, the structure in which they are
            incorporated or to which they are affixed, of the Works or any part
            thereof, to a period less than that which has been specified or
            would normally be expected.

      vii)  Inter alia:-

      a)    High alumina cement in structural elements

      b)    Woodwool slabs in permanent formwork to concrete or in structural
            elements

      c)    Calcium Chloride admixtures for use in reinforced concrete

      d)    Asbestos products (save where natural elements thereof are used in
            products which comply with relevant British Standards
            Specifications)

                                     Page 4
<PAGE>

      e)    Aggregates for use in reinforced concrete which do not comply with
            British Standards Specification 882:1983 and aggregates for use in
            concrete which do not comply with British Standard Specification
            8100:1985; and

      f)    Lead or any products containing lead in a form likely to be ingested
            or inhaled by humans (but so that copper alloy products containing
            lead may nonetheless be used in drinking water pipework); and

      g)    Urea formaldehyde foam in a form that releases formaldehyde so that
            it is likely to be ingested or inhaled by humans in harmful
            quantities; and

      h)    Any other material generally known at the date of its use to be
            deleterious (in the form quantity and application actually used) to
            (a) human health and safety or (b) the durability of the Works in
            which it is used (unless the presence of the material is integral to
            and essential for such Works) and/or not in accordance with good
            building practice at the date when specified and/or not in
            accordance with good building practice at the date when specified

3.    The Sub-Contractor acknowledges that the Tenant shall be deemed to have
      relied upon the Sub-Contractor's reasonable skill and judgement in the
      performance of its duties to the Contractor under the Sub-Contract. The
      liability of the Sub-Contractor shall not be released, diminished or in
      any other way affected by any independent enquiry into any relevant matter
      which may be made or carried out by or on behalf of the Tenant nor by any
      act or omission of any firm, company or party carrying out such enquiry,
      whether or not such act or omission might give rise to an independent
      liability of such firm, company or party to the Tenant.

4.    The Sub-Contractor shall be liable to the Tenant in respect of any and all
      expenses liabilities costs damages losses claims or proceedings which
      arise by reason of any breach of its obligations hereunder save that it
      shall have no

                                     Page 5
<PAGE>

      greater liability and for no longer period than it would have had to the
      Contractor under the Sub-Contract.

5.    The provisions of this Agreement shall be without prejudice to any rights
      or remedies which the Tenant may have against the Sub-Contractor whether
      in tort or otherwise and shall not be deemed or construed so as to limit
      or exclude any such rights or remedies.

6.    The copyright in all documents and drawings provided by the Sub-Contractor
      in connection with the Works shall remain vested in the Sub-Contractor but
      the Tenant shall have a licence to copy and use, though the Sub-Contractor
      shall not be liable for any misuse of, such documents and drawings and to
      reproduce the designs contained in them for any purpose related to the
      Works including, but without limitation, the construction, completion,
      maintenance, alteration, letting, promotion, advertisement, reinstatement
      and repair of the Works.

7.    This Agreement shall be governed by and construed in accordance with the
      Laws of England. If any dispute or difference arises between the Tenant
      and the Sub-Contractor in connection with this Agreement which cannot be
      resolved by mutual agreement, it shall be referred to the non-exclusive
      jurisdiction of the English Courts.

IN WITNESS whereof the Parties have caused these presents to be executed as a
deed and delivered the day and year first before written.

                                     Page 6
<PAGE>

THE COMMON SEAL of        )
SCHMIDLIN (UK) LIMITED    )
was hereunto affixed in   )
the presence of:-         )

           Director           )  /s/ [ILLEGIBLE]
                              )
           Director/Secretary )  /s/ [ILLEGIBLE]

THE COMMON SEAL of        )
MERCATOR SOFTWARE         )
LIMITED                   )
was hereunto affixed in   )
the presence of:-         )

           Director           )  /s/ [ILLEGIBLE]
                              )
           Director/Secretary )  /s/ [ILLEGIBLE]

                                     Page 7
<PAGE>

                              Dated 20 April 2001

                     BLENHEIM HOUSE CONSTRUCTION LIMITED (1)

                                  (Contractor)

                                     - and -

                          MERCATOR SOFTWARE LIMITED (2)

                                    (Tenant)

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

                              - DEED OF WARRANTY -

                         Relating to a refurbishment at

                                   City Tower
                            Podium and Levels 1 and 2

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

                                     Page 1
<PAGE>

THIS DEED is made the                                           day of
     2000

BETWEEN:-

(1)   BLENHEIM HOUSE CONSTRUCTION LIMITED (Company Number 3259020) whose
      registered office is situate at Unit 2 Church Walk, Beales Lane,
      Weybridge, Surrey, KT13 8JS("the Contractor")

(2)   MERCATOR SOFTWARE LIMITED (Company Number 1293378) whose registered office
      is situate at 114 Rochester Row, London SW1P 1JQ ("the Tenant" which
      expression shall include its successors in title transferees and assigns)

WHEREAS:

(A)   CITY TOWER LIMITED (Company Number 1824826) whose registered office is
      situate at 142 Holborn Bars, London EC1 n 2NH ("the Developer") has
      entered into a contract ("the Contract") dated 22nd September 2000 with
      the Contractor to complete the design and the refurbishment of the Podium,
      Levels 1 and 2 and the cladding to the London Wall elevation upon the
      terms and conditions therein mentioned at a building known as City Tower,
      Basinghall Street, London EC2V 5DE

(B)   By an agreement dated 18th August 2000 made between the Developer (1) and
      the Tenant (2) the Tenant has agreed on or following practical completion
      of the Works to take a full repairing lease of certain parts of the Works
      as more particularly described in the agreement

(C)   The Contractor has agreed to enter into this Deed in favour of the Tenant

NOW THIS DEED W1TNESSETH in consideration of the sum, 10 (ten pounds) receipt
of which the Contractor hereby acknowledges AS FOLLOWS:-

1. Warranties/Undertakings

The Contractor hereby WARRANTS and UNDERTAKES to the Tenant that it has carried
out and will continue to carry out the construction and completion of the Works
in a good and workmanlike manner and in compliance with the terms of the
Contract and all associated drawings and specifications (as amended from time to
time) and without prejudice to the generality of the foregoing the Contractor
WARRANTS and UNDERTAKES to the Tenant as follows:

(a)   that the Contractor has exercised and will continue to exercise all
      reasonable skill and care in:

                                     Page 2
<PAGE>

      (i)   the design of the Works insofar as the Works has been or will be
            designed by the Contractor its servants agents sub-contractors or
            suppliers and

      (ii)  the selection of materials and goods for the Works insofar as such
            materials and goods have been or will be selected by the Contractor
            its servants agents sub-contractors or suppliers

(b)   that the Works will when completed satisfy any performance specification
      or requirement included or referred to in the Contract

(c)   that the Works and the materials and goods used therein will correspond as
      to description quality and condition with the requirements of the Contract
      and be of sound manufacture and workmanship

(d)   that it has performed and shall continue properly and diligently to
      perform all of its obligations under the Contract and will owe the same
      contractual duties (including without limitation duties of care) to the
      Tenant as those owed by the Contractor to the Developer

(e)   that it shall not knowingly specify, authorise or cause to be used the
      following:

      any goods, materials, substances, products or equipment which are:-

      (i)   in themselves stated in the Specification to be prohibited.

      (ii)  not in accordance with relevant British or European Standards and
            Codes of Practice.

      (iii) generally known within the construction or engineering industries at
            the time of use or specification (as appropriate) to be deleterious
            to (a) health and safety in humans or (b) the durability of the
            Building by reference to its likely design life based on the
            Specification.

      (iv)  not in accordance with "Good Practice in the Selection of
            Construction Materials" published 1997 by the BCO.

      (v)   or might in themselves or as a result of their use pose a hazard to
            health and in particular to the health of the personnel involved in
            the construction or maintenance of the Works or the eventual
            occupants thereof.

      (vi)  other materials which at the time the Works is being carried out
            generally accepted as or reasonably suspected of:-

            (a)   being deleterious in themselves;

            (b)   becoming deleterious when used in a particular situation or in
                  combination with other materials;

            (c)   becoming deleterious with passage of time

                                     Page 3
<PAGE>

            (d)   becoming deleterious without a level of maintenance which is
                  higher than that which would normally be expected in a
                  building of the type under construction; or

            (e)   being damaged by or causing damage to the structure in which
                  they are incorporated or to which they are affixed

            "deleterious" meaning and including any use of materials or
            combination of materials that would or might have the effect of
            reducing the normal life expectancy of the materials themselves,
            any materials to which they are affixed, the structure in which
            they are incorporated or to which they are affixed, of the Works or
            any part thereof, to a period less than that which has been
            specified or would normally be expected.

      (vii) Inter alia:-

            a)    High alumina cement in structural elements

            b)    Woodwool slabs in permanent formwork to concrete or in
                  structural elements

            c)    Calcium Chloride admixtures for use in reinforced concrete

            d)    Asbestos products (save where natural elements thereof are
                  used in products which comply with relevant British Standards
                  Specifications)

            e)    Aggregates for use in reinforced concrete which do not comply
                  with British Standards Specification 882:1983 and aggregates
                  for use in concrete which do not comply with British Standard
                  Specification 8100:1985; and

            f)    Lead or any products containing lead in a form likely to be
                  ingested or inhaled by humans (but so that copper alloy
                  products containing lead may nonetheless be used in drinking
                  water pipework); and

            g)    Urea formaldehyde foam in a form that releases formaldehyde so
                  that it is likely to be ingested or inhaled by humans in
                  harmful quantities; and

            h)    Any other material generally known at the date of its use to
                  be deleterious (in the form quantity and application actually
                  used) to (a) human health and safety or (b) the durability of
                  the works in which it is used (unless the presence of the
                  material is integral to and essential for such works) and/or
                  not in accordance with good building practice at the date when
                  specified and/or not in accordance with good building practice
                  at the date when specified

                                     Page 4
<PAGE>

2. Liability of Contractor

The obligations of the Contractor under or pursuant to clause 1 hereof shall be
in addition to and without prejudice to any other present or future liability of
the Contractor to the Tenant (including without prejudice to the generality of
the foregoing any liability in negligence) and shall not be released diminished
or in any other way affected by any independent enquiry into any relevant matter
which may be made or carried out by or on behalf of the Tenant by any person nor
by any action or omission of any person whether or not such action or omission
might give rise to an independent liability of such person to the Tenant

3. Professional Indemnity Insurance

Without prejudice to its obligations under this Deed or otherwise at law the
Contractor shall effect and use its best endeavour to maintain the appropriate
cover provided such cover is available at commercially viable rates for the
duration of the Contract and for a period of twelve years from the date of issue
of the Certificate of Practical Completion of the Works has been achieved (with
a well established insurance office or underwriter of repute carrying on
business in the United Kingdom) insurance with a limit of indemnity of not less
than FIVE MILLION POUNDS ((pound)5,OOO,0O0.OO) for any one occurrence or a
series of occurrences arising out of any one event in respect of any negligence
(which for the avoidance of doubt shall include any negligent act error omission
or default) on the part of the Contractor in the performance of its duties under
this Deed and in relation to the duty of care owed to the Tenant hereunder and
shall produce to the Tenant on demand from time to time such evidence as the
Tenant may reasonably require to satisfy itself that the terms of this clause
have been complied with.

4. Licence

The Contractor as beneficial owner hereby GRANTS to the Tenant an irrevocable
royalty-free non-exclusive licence to use and reproduce, though shall not be
liable for any misuse of, all drawings details plans specifications schedules
report calculations and other work and designs contained in them which have been
or are hereafter written originated or made by or on behalf of the Contractor
for any purpose whatsoever connected with the Works including but without
limitation the execution completion maintenance letting management sale
advertisement extension alteration, reinstatement and repair thereof. Such
licence shall carry the right to grant sub-licences and shall be transferable
to third parties.

5. Assignment

The benefit of all or any of the Contractor's obligations under this Deed and/or
any benefit arising under or out of this Deed may be assigned by the Tenant
without the consent of the Contractor on two occasions only and thereafter with
due Contractor's consent which consent may not be unreasonably withheld or
delayed.

                                     Page 5
<PAGE>

6. The Contract

The Contractor UNDERTAKES to the Tenant not to vary or depart from the terms and
conditions of the Contract without the prior written consent of the Tenant and
agrees that any variation or departure made without such consent shall not be
binding on the Tenant or affect or prejudice the Tenant's rights hereunder or
under the Contract or in any other way

7. Continuing Effect

Notwithstanding the completion of the Works or any part thereof this Deed shall
continue to have effect

8. Law

This Deed shall be governed by and construed in accordance with the laws of
England and Wales

IN WITNESS whereof this Deed has been executed by the Contractor and the Tenant
and is intended to be and is hereby delivered on the day and year first above
written

                                     Page 6
<PAGE>

THE COMMON SEAL of           )
BLENHEIM HOUSE                 )
CONSTRUCTION LIMITED         )
was hereunto affixed in      )
the presence of:-            )

                    Director: /s/ [ILLEGIBLE]

                    Director/Secretary: /s/ J. B. [ILLEGIBLE]

Signed as a deed by          )
MERCATOR SOFTWARE            )
LIMITED acting by a          )
director and its Secretary   )
(or two directors)           )

                         Director: /s/ [ILLEGIBLE]

                         Director/Secretary: /s/ [ILLEGIBLE]

                                     Page 7<PAGE>

                                                                   Exhibit 10.2

                     ACCOUNTS RECEIVABLE FINANCING AGREEMENT

       This ACCOUNTS RECEIVABLE FINANCING AGREEMENT is entered into this 22nd
day of June, 2001 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 MERCATOR SOFTWARE, INC., a Delaware corporation with its principal place of
business at 45 Danbury Road, Wilton, Connecticut 06897 (FAX 203-762-9677)
("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, accounts
receivable, 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 to 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.

       "Accounts Receivable" are all Borrower's accounts receivable, chattel
paper, instruments, contract rights, documents, general intangibles, letters of
credit, drafts, bankers acceptances, and rights to payment, and all proceeds
therefrom.

       "Adjusted Quick Ratio" is the ratio of (i) Quick Assets to (ii) Current
Liabilities minus Deferred Revenue.

       "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 any offsets related to
each specific Account Debtor, or such other percentage as Bank establishes under
Section 2.2; provided however, if the Borrower is unable to maintain a Adjusted
Quick Ratio of at least 1.75 to 1.0, then the Advance Rate will be 80% net of
Deferred Revenue and offsets related to each specific Account Debtor.

       "Applicable Rate" is a per annum rate equal to the "Prime Rate" plus one
(1.0) percentage point.

       "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.

       "Capitalization Event" is the issuance by Borrower of equity, or
Subordinated Debt with a lender and subject to terms reasonably acceptable to
Bank, resulting in the net proceeds to Borrower of at least Five Million Dollars
($5,000,000.00) in cash.
<PAGE>

       "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, including, if adopted and in effect, the revised
Article 9 of the Uniform Commercial Code in the form or substantially in the
form approved by the American Law Institute and the National Conference of
Commissioners on Uniform State Law and contained in the 1999 Official Text of
the Uniform Commercial Code.

       "Collateral" is attached as Exhibit "A".

       "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.

       "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.

       "Current Liabilities" are the aggregate amount of Borrower's Total
Liabilities which mature within one (1) year.

       "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.

       "Event of Default" is defined in Section 9.

       "Facility" is an extension of credit by Bank to Borrower in order to
finance Accounts Receivable with an aggregate Account Balance not exceeding the
Facility Amount.

       "Facility Amount" is Ten Million Dollars ($10,000,000.00); provided,
however, the Facility Amount shall be increased to Fifteen Million Dollars
($15,000,000.00) for any period after the occurrence of a Funding Event.

       "Facility Fee" is defined in Section 3.3.

       "Facility Period" is the period beginning on this date and continuing
until one year from the date of this Agreement, unless the period is terminated
sooner by Bank with notice to Borrower or by Borrower pursuant to Section 4.3.

       "Finance Charges" is defined in Section 3.2.

                                      -2-
<PAGE>

       "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.

       "Funding Event" means the occurrence of a fiscal quarter which the
Borrower maintains a minimum EBITDA of $1.00.

       "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:

              (a)    that is unpaid (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.

              (e)    for which Bank determines, in its reasonable business
                     discretion, that collection may be doubtful.

       "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(I).

       "Minimum Finance Charge" is a minimum monthly Finance Charge of
$20,000.00 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

                                      -3-
<PAGE>

(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: (i) Borrower's indebtedness to Bank under
this Agreement; (ii) indebtedness existing on the Closing Date and shown on the
Schedule entitled "permitted indebtedness"; and (iii) indebtedness to trade
creditors incurred in the ordinary course of business.

       "Permitted Liens" are: (i) Liens existing on the Closing Date and shown
on the Schedule entitled "permitted liens" or arising under this Agreement; and
(ii) Liens for taxes, fees, assessments or other government charges or levies,
either not delinquent or being contested in good faith and for which Borrower
maintains adequate reserves on its Books in accordance with GAAP if they have no
priority over Bank's security interest.

       "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.

       "Quick Assets" is, on any date, the Borrower's consolidated, unrestricted
cash, cash equivalents, net Accounts Receivable and investments with maturities
of fewer than 12 months determined according to GAAP.

       "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).

       "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 or one or more
Affiliates of the Person.

       "Total Liabilities" is on any day, obligations that should, under GAAP,
be classified as liabilities on Borrower's consolidated balance sheet, including
all Indebtedness, and current portion Subordinated Debt allowed to be paid, but
excluding all other Subordinated Debt.

    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
Receivable, 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. Except as otherwise provided
herein, Bank is obligated to finance any Accounts Receivable which is not an
Ineligible Receivable. Bank may (but is not obligated to) finance any other
Accounts Receivable and as to such other Accounts Receivable, Bank may, in its
discretion, change the percentage of the Advance Rate. Bank may approve any
Account Debtor's credit before agreeing to finance any Accounts Receivable and
shall complete such credit approvals within a reasonable period after the date
of the Invoice Transmittal. When Bank finances an Accounts 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"). 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 would occur as a
result of the Advance. The aggregate amount of all Financed Receivables
outstanding at any time may not exceed the Facility Amount.

                                      -4-
<PAGE>

    3. Collections, Finance Charges, Remittances and Fees. The Obligations shall
be subject to the following fees and Finance Charges. Fees 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 Obligations,
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.
Borrower will pay a finance charge (the "Finance Charge"), which is equal to the
greater of (i) the Applicable Rate 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, as and when same may be applicable. After an Event of Default,
Obligations accrue interest at two percent (2.0%) above the Applicable Rate
effective immediately before the Event of Default.

       3.3. Facility Fee. A fully earned, non-refundable facility fee of
Seventy-Five Thousand Dollars ($75,000.00) 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 0.375% per month of the average
daily Financed Receivable Balance outstanding during the applicable
Reconciliation Period.

       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 ninety (90) 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.

       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 3.8 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 $25,000.00 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

                                      -5-
<PAGE>

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, reasonable 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 after the occurrence of an Event of Default,
without notice, effective immediately. If this Agreement is so terminated by
Borrower or by Bank, Borrower shall pay to Bank a termination fee in an amount
equal to Three Hundred Thousand Dollars ($300,000.00) (the "Early Termination
Fee"). The termination fee shall be due and payable on the effective date of
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 Bank agrees to refinance the
Obligations (in its sole and exclusive discretion) prior to the last day of the
Facility Period.

    5. Power of Attorney. Borrower irrevocably appoints Bank and its successors
and assigns its attorney-in-fact and authorizes Bank to:

                     (A) following the occurrence of an Event of Default, sell,
              assign, transfer, pledge, compromise, or discharge all or any part
              of the Financed Receivables:

                     (B) following the occurrence of an Event of Default,
              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 Receivables, including
              filing a claim or voting a claim in any bankruptcy case in Bank's
              or Borrower's name, as Bank chooses:

                     (C) following the occurrence of an Event of Default,
              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;

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

                     (E) receive, open, and dispose of mail addressed to
              Borrower, provided; however, prior to the occurrence of an Event
              of Default, Bank will retain all checks and other drafts (as
              appropriate in connection with Financed Receivables) and agrees to
              forward all other correspondence to Borrower;

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

                     (G) 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 or expedient, as determined solely and exclusively by
              the Bank, to protect, preserve, and otherwise enforce the Bank's
              rights and remedies under this Agreement, as directed by the Bank;

                                      -6-
<PAGE>

    6. Representations, Warranties and Covenants.

       6.1. Representations and Warranties. Borrower represents and warrants for
each Financed Receivable:

                     (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 unfulfilled obligation
              or contract;

                     (D) It is based on an actual sale, lease, license, and/or
              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 giving rise to a deduction or discount by the Account
              Debtor;

                     (F) Borrower reasonably believes no Account Debtor is
              insolvent or subject to any Insolvency Proceedings;

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

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

                     (I) 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.

       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 and where failure to so qualify would have a material
              adverse effect on the Borrower or any Financed Receivable.
              Borrower as of the date hereof is qualified to do business in or
              has filed for qualification in or is correcting any prior such
              filings in each state as set forth on Schedule 6.2(A) hereto. The
              execution, delivery and performance of 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 in any material respect under any agreement to which or
              by which it is bound however Borrower refers to the breach of
              contract action pending against Borrower in Carpet Co-op of
              America Association, Inc. and FloorLINK, L.L.C. v. TSI
              International Software, Ltd., referred to in Schedule 6.2(C).

                     (B) Borrower has good title to remaining Collateral,
              subject to Permitted Liens. All material inventory is in all
              material respects of good and marketable quality, free from
              material defects.

                     (C) There are no actions or proceedings pending or, to
              Borrower's knowledge, threatened by or against Borrower or any
              Subsidiary except as set forth in Schedule 6.2(c).

                     (D) All consolidated financial statements for Borrower and
              any Subsidiary

                                      -7-
<PAGE>

              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 adverse change in Borrower's consolidated financial
              condition since the date of the most recent financial statements
              submitted to Bank.

                     (E) Borrower, considering all financing available to it is
              not insolvent and is able to pay its debts (including trade debts)
              as they mature.

                     (F) 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 statements contained in the
              certificates or statements not misleading.

                     (G) 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
              T, U and X of the Federal Reserve Board of Governors). Borrower
              has complied with the Federal Fair Labor Standards Act in all
              material respects. To the best of Borrower's knowledge, Borrower
              has not violated any laws, ordinances or rules applicable to it.
              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 except
              where the failure of which would not have a material adverse
              effect on Borrower or on any Financed Receivable.

       6.3. Affirmative Covenants. Borrower will do all of the following:

                     (A) Maintain its corporate existence and good standing in
              its jurisdiction 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 (except those taxes which are being
              contested in good faith by appropriate proceedings and with
              respect to which adequate reserves have been set aside in
              accordance with GAAP) and will deliver satisfactory evidence of
              payment if requested.

                     (C) Provide a written report within ninety (90) 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) Give Bank copies of all Forms 10-K, 10-Q and 8-K (or
              equivalents) within five (5) days of filing with the Securities
              and Exchange Commission, while any Financed Receivable is
              outstanding. Within one hundred twenty (120) days after the end of
              each fiscal year of Borrower, Borrower shall deliver to Bank the
              annual audited financial statements of the Borrower certified by
              independent public accountants of recognized standing; which
              requirement shall be satisfied by delivery to Bank of Borrower's
              annual report on Form 10-K as filed with the Securities and
              Exchange Commission.

                     (E) Borrower shall keep its business and the Collateral
              insured for risks and

                                      -8-
<PAGE>

              in amounts, and with financially sound and reputable insurance
              companies in such amounts and covering such risks as are
              consistent with sound business practice. 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 to Borrower under any policy shall, at Bank's
              option, be payable to Bank on account of the Obligations;
              provided, however, that any insurance proceeds paid for the
              purpose of reimbursement of Borrower's legal fees on account of
              legal services rendered in connection with a claim shall be
              payable to the person rendering such services. Bank hereby
              acknowledges that Borrower is not required to maintain accounts
              receivable insurance and that the insurance policies (or evidences
              thereof) delivered to Bank are, as of the date hereof, acceptable
              to Bank.

                     (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 no later
              than 30 days following each quarter end or as reasonably requested
              by Bank.

                     (H) Provide Bank with, as soon as available, but no later
              than thirty (30) days following each Reconciliation Period, a
              company prepared balance sheet and income statement, prepared
              under GAAP, consistently applied, covering Borrower's operations
              during the period together with an aged listing of Accounts
              Receivable and accounts payable, along with a deferred revenue
              report. All of the foregoing shall be in form reasonably
              satisfactory to the Bank.

                     (I) Within three (3) business days 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 sixty (60) days from the date of this Agreement unless due
              to the fault of Bank.

                     (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. Provided, however, if an Event
              of Default has occurred, 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) Maintain at all times an Adjusted Quick Ratio of at
              least: 1.25 to 1.0 for May, 2001, 1.50 to 1.0 for June, 2001, 1.30
              to 1.0 for July, 2001, 1.20 to 1.0 for

                                      -9-
<PAGE>

              August, 2001, 1.50 to 1.0 for September, 2001 and thereafter,
              which Adjusted Quick Ratio will be tested by Bank on a monthly
              basis.

                     (M) Cause the occurrence of a Capitalization Event on or
              before September 30, 2001.

                     (N) Maintain its primary operating and depository accounts
              with Bank.

       6.4. Negative Covenants, Borrower will not do any of the following
without Bank's prior written consent:

                     (A) Assign, transfer, sell or grant, or permit any lien or
              security interest in (i) any Financed Receivable or (ii) the
              remaining Collateral, except for Permitted Liens and except as
              permitted in Section 6.4 (B).

                     (B) Convey, sell, lease, transfer or otherwise dispose of
              the Collateral, other than (i) of inventory in the ordinary course
              of business; (ii) of non-exclusive licenses and similar
              arrangements for the use of the property of Borrower in the
              ordinary course of business; or (iii) of worn-out or obsolete
              Equipment, up to a maximum aggregate amount of $500,000.00.
              Nothing contained in this section is intended to restrict
              Borrower's ability to pay trade payable, payroll and other
              ordinary and necessary expenses of Borrower, consistent with
              Borrower's current practice, all in the ordinary course of
              business, and subject to the other terms and conditions of this
              Agreement.

                     (C) Create, incur, assume, or be liable for any
              indebtedness, except for Permitted Indebtedness.

                     (D) 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 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.

                     (E) 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, except
              that in all cases intercompany mergers or consolidations shall be
              permitted, provided, that if such merger or consolidation involves
              Borrower, Borrower is the surviving entity.

                     (F) 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.

                     (G) 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, (iv) change its legal
              name, or (v) change any organizational number (if any) assigned by
              its state of formation, provided, however, no such consent is
              required if Borrower gives Bank five (5) days notice after the
              occurrence of any of the foregoing.

                                      -10-
<PAGE>

                     (H) Keep any material Collateral in the possession of any
              third party bailee (such as at a warehouse) provided, however, no
              such consent is required if Borrower gives Bank prior written
              notice of such event. In the event that Borrower, after the date
              hereof, intends to store or otherwise deliver any Collateral 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.

    7. Adjustments. If any Account Debtor asserts a discount, allowance, return,
offset, defense, warranty claim, or the like on a Financed Receivable in excess
of 15% of the amount of the such 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. Borrower will resell any
rejected, returned, or recovered personal property for Bank, at Borrower's
expense, and pay proceeds to Bank. While Borrower has returned goods that are
Borrower property, Borrower will segregate and mark them "property of Silicon
Valley Bank." Bank has a security interest in the Financed Receivables and until
receipt of payment, has the right to take possession of any rejected, returned,
or recovered personal property.

    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.

    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;

                     (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;

                     (C) Borrower, considering all financing available to it
              becomes insolvent and not able to pay its debts (including trade
              debts) as they mature;

                     (D) Any involuntary lien, garnishment, attachment attaches
              to the Financed Receivables or any material portion of the
              remaining 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 covenant, agreement, warranty, or
              representation is an immediate Event of Default;

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

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

                     (H) 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;

                     (I) Any creditor that has signed a subordination agreement
              with Bank

                                      -11-
<PAGE>

              breaches any terms of the subordination agreement; or

                     (J) Any of the following occurs: (i) A material impairment
              in the perfection or priority of Bank's security interest in the
              Collateral located in the United States and not caused by fault of
              Bank; (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 prospect of repayment of any
              portion of the Obligations; or (iv) Bank determines, based upon
              information available to it and in its reasonable judgment, that
              there is a strong 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 to 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 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. If any amount is not paid when due, the amount bears
interest at the Applicable Rate plus two percent until the earlier of (a)
payment in good funds or (b) entry of a final judgment when the principal amount
of any money judgment will accrue interest at the highest rate allowed by law.

    11. Fees, Costs and Expenses. The Borrower will pay on demand all fees,
costs and expenses (including reasonable attorneys' and professionals fees with
costs and expenses) that Bank incurs from: (a) preparing, negotiating,
administering, and enforcing this Agreement or related agreement, including any
amendments, waivers or consents, (b) any litigation or dispute 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 except that any costs, fees, and
expenses relating to the preparation and negotiation of this Agreement shall not
exceed $28,250.00.

    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

                                      -12-
<PAGE>

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
evidenced by receipt of delivery, 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.

       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, 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 regardless of the adequacy of any other
collateral securing the loan. Bank agrees to provide to Borrower prompt notice
after any such setoff. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS
OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOAN, 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. Severability of Provision. Each provision of this Agreement is
severable from every other provision in determining the enforceability of any
provision.

       14.6. 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.

       14.7. 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.

       14.8. 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.

                                      -13-
<PAGE>

       14.9. 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. Bank's
obligations under Section 14.12 shall survive termination of this Agreement.

       14.10. Confidentiality. Bank will use the same degree of care handling
Borrower's confidential information that it uses for its own confidential
information, 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; provided, however, Bank shall
use commercially reasonable efforts to obtain from such transferee or purchaser
an agreement to be bound by the terms of this provision, (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;
or (b) disclosed to Bank by a third party, if Bank does not know that the third
party is prohibited from disclosing the information.

       14.11. Other Agreements. This Agreement may not adversely affect Banks
rights under any other document or agreement between Bank and Borrower. 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. Additionally, (a) any Collateral under other agreements or documents
between Borrower and Bank secures Borrowers Obligations under this Agreement and
(b) a default by Borrower under this Agreement is a default under agreements
between Borrower and Bank.

       14.12. Termination of this Agreement. Upon the termination of this
Agreement and provided that no Financed Receivable remains outstanding and
Borrower has completely satisfied all Obligations hereunder, Bank, at Borrower's
expense, shall execute and deliver to Borrower all releases and terminations as
may be necessary or proper to evidence same, including, UCC-3 Termination
Statements.

       14.13. Foreign Accounts Receivable. Notwithstanding anything to the
contrary contained herein, Bank agrees that if Borrower enters into a financing
arrangement with a lender to finance Borrower's Accounts Receivable which are
billed to an entity operating outside of the United States or in foreign
currency ("Foreign Accounts Receivable"), Bank will subordinate its security
interest in the Foreign Accounts Receivable to the security interest of such
lender, provided such Foreign Accounts Receivable are not Financed Receivables.

                                      -14-
<PAGE>

       EXECUTED under seal as of the date first written above.

MERCATOR SOFTWARE, INC.

By /s/ [ILLEGIBLE]
   ------------------------------------------

Title     CHAIRMAN OF THE BOARD, CHIEF
      ---------------------------------------
          EXECUTIVE OFFICER AND PRESIDENT

SILICON VALLEY BANK

By
   ------------------------------------------

Title
      ---------------------------------------

                                      -15-
<PAGE>

       EXECUTED under seal as of the date first written above.

MERCATOR SOFTWARE, INC.

By
   ------------------------------------------

Title
      ---------------------------------------

SILICON VALLEY BANK

By /s/ [ILLEGIBLE]
   ------------------------------------------

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

                                      -15-
<PAGE>

                                    EXHIBIT A

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

       All goods and equipment now owned or hereafter acquired, including,
without limitation, all machinery, fixtures, vehicles (including motor vehicles
and trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

       All inventory, now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrower's custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above;

       All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, trademarks, service marks,
trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

       All now existing and hereafter arising accounts, contract rights,
royalties, license rights and all other forms of obligations owing to Borrower
arising out of the sale or lease of goods, the licensing of technology or the
rendering of services by Borrower, whether or not earned by performance, and any
and all credit insurance, guaranties, and other security therefor, as well as
all merchandise returned to or reclaimed by Borrower;

       All documents, cash, deposit accounts, securities, securities
entitlements, securities accounts, investment property, financial assets,
letters of credit, certificates of deposit, instruments and chattel paper now
owned or hereafter acquired and Borrower's Books relating to the foregoing;

       All copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work thereof, whether
published or unpublished, now owned or hereafter acquired; all trade secret
rights, including all rights to unpatented inventions, know-how, operating
manuals, license rights and agreements and confidential information, now owned
or hereafter acquired; all mask work or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired; all 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
and accessions to and proceeds thereof.

                                      -16-
<PAGE>

                                   Exhibit "B"

                                     [LOGO]

                               SILICON VALLEY BANK
                           SPECIALTY FINANCE DIVISION

                             Compliance Certificate

I, as authorized officer of Mercator Software, 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 unfulfilled obligation or contract;

       It is based on an actual sale, lease, license, and/or 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 giving rise
to a deduction or discount by the Account Debtor;

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

       It has not filed or had filed against it Insolvency 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 and where failure to so qualify would have a material adverse
effect on the Borrower or any Financed Receivable, except as may be set forth on
Schedule 6.2(a) to the Agreement. The execution, delivery and performance of
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 in any material
respect under any agreement to which or by which it is bound.

       Borrower has good title to the Collateral, except for Permitted Liens.
All material 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

                                      -17-
<PAGE>

Investment Company Act. Borrower is not engaged as one of its important
activities in extending credit for margin stock (under Regulations T, U and X of
the Federal Reserve Board of Governors). Borrower has complied with the Federal
Fair Labor Standards Act in all material respects. To the best of Borrower's
knowledge, Borrower has not violated any laws, ordinances or rules applicable to
it. 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 except where the failure of which would not have a material
adverse effect on Borrower or on any Financed Receivable.

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

Sincerely,

----------------------------------
SIGNATURE

----------------------------------
TITLE

----------------------------------
DATE

                                      -18-
<PAGE>

                        SCHEDULE PERMITTED INDEBTEDENESS

       All Indebtedness set forth in Borrower's consolidated financial
statements contained in its Quarterly Report to the Securities and Exchange
Commission for the quarterly period ended March 31, 2001 except as may be noted
below as of June 18, 2001:

<TABLE>
<CAPTION>
Division         Liability Type   Payee                 Date of Occurrence   Full Liability
--------         --------------   -----                 ------------------   --------------
<S>              <C>              <C>                   <C>                  <C>
Mercator US      Severance        Saydean Zeldin        Apr 2001             $  300,000
Mercator US      Severance        Karen Harris          May 2001                 39,933
Mercator US      Severance        Jim Schadt            Jun 2001                180,000
All Divisions    Severance        21% of Workforce      April 2001            1,758,198
All Divisions    Outplacement     21% of Workforce      April 2001               80,180
Mercator US      Commission       Realtor on Sublease   April 2001              846,203
</TABLE>

       Note: A restructuring charge will be taken in the quarter ending 6/3/01
for approximately $5,700,000 of which $1,758,198, $80,180, and $846,203 are
itemized above in severance, outplacement costs, and realtor's commissions. The
balance of $2,982,586 is comprised of the write-off of leases of which the lease
exposure was footnoted in our 10Q under: Rent Commitments.
<PAGE>

                            Schedule Permitted Liens

1.     $3.0 million restricted collateral deposit with Fleet Bank as security
       for an outstanding letter of credit.

2.     Liens or encumbrances securing indebtedness of up to $375,000.00 in the
       aggregate, on any Collateral (other than Financed Receivables) located
       outside of the United States.

3.     Any lien or encumbrance as permitted under Section 14.13.

4.     Purchase money liens securing indebtedness not to exceed $500,000.00 in
       the aggregate (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 the
       improvements and the proceeds of the equipment.
<PAGE>

                                 Schedule 6.2 A

       Borrower is qualified to do business in the following states:

                                 Connecticut
                                 Florida
                                 Missouri
                                 North Carolina
                                 Virginia
                                 Washington
                                 Wisconsin
                                 California
                                 South Carolina
                                 Georgia

       Borrower has made (or is about to make) application to be qualified to do
business in the following states or is resolving administrative issues which may
have resulted in a lapse/revocation of such qualification:

                                 Arizona
                                 Illinois
                                 Texas
                                 New York
                                 Massachusetts
<PAGE>

                                 Schedule 6.2 C

       Those proceedings set forth in Item 3 of Borrower's Annual Report, on
Form 10-K, for the fiscal year ended December 31, 2000 and in Item 1 of
Borrower's Quarterly Report on Form 10-Q for the quarterly period ended March
31,2001 and the following, as of May 31, 2001:

1.     Caption:        James Lees v. Mercator Software, Inc.
                       Cause No. 4:01CV00092 RWS

       Court:          United States District Court
                       Eastern District of Missouri
                       Eastern Division

2.     Issue:          Alleged age discrimination

       Caption:        Tina R. Dube v. Mercator Software, Inc.
                       Case #: 0120268

       Administrative
       Proceeding:     State of Connecticut
                       Commission of Human Rights and Opportunities

       Issue:          Alleged sex discrimination

3.     Captions:       Opposition #121,006 before the Trademark Trial and
                       Appeal Board of the US Patent and Trademark Office
                       Mercator Software v. Mercata, Inc.

                       Opposition #120,739 before the Trademark Trial and
                       Appeal Board of the US Patent and Trademark Office
                       Mercator Software v. Mercata, Inc. and Design.

                       *Opposition to CTM (European) Application 1193515 for
                       MERCATA before the Office of Harmonization in the
                       Internal Market ("OHIM"), which is a European Community
                       body which Registers Community trademarks and design
                       rights within the European Union. *Mercator is currently
                       in negotiations for a worldwide settlement agreement and
                       wishes to keep the opposition in place until the matter
                       can be resolved on a worldwide basis.

                                        1
<PAGE>

                                 Schedule 6.2 C
                                   (Continued)

       Issue: All of the above deal with Mercator's opposition to the use by
              Mercata, Inc. of the mark MERCATA for goods and/or services that
              are similar to those of Mercator Software, Inc.

4.     Several collection matters (by way of collection agencies,
       non-litigation) whereby Borrower is seeking payment from customers.

5.     Other: Any future action or proceeding, or threatened action or
       proceeding, which, if held adversely to Borrower would not (i) have an
       effect on, or relate to, any Financed Receivable or (ii) result in
       estimated damages in excess of $100,000.00; however, Borrower shall give
       prompt notice to Bank of any such action or proceeding.

                                        2
<PAGE>

                      LOCKBOX SERVICE SUBSCRIBER AGREEMENT

SILICON VALLEY BANK ("Bank") and the undersigned company ("Subscriber") agree as
follows:

1.     Remittance Banking Service. Commencing June 22, 2001, MERCATOR SOFTWARE,
       INC. ("Subscriber") has requested that Silicon Valley Bank ("Bank")
       provide Subscriber with the Bank's Lockbox/Remittance Banking Service
       facilities (the "Service"), This Service will be provided by the Bank or
       its agent ("Agent"), for the deposit of its clients' remittance items.

2.     Client Remittances. Clients of Subscriber will be directed to forward
       their remittances to Subscriber at a post office address assigned by Bank
       or its agent. Bank, or its Agent, shall have unrestricted and exclusive
       access to the mail directed to this address. Subscriber agrees it will
       not furnish "business reply" mail envelopes to its clients for their
       remittances, and any such envelopes mailed to the Bank-designated address
       may be refused or returned to sender. Subscriber agrees to notify Bank 30
       days in advance of any change in Subscriber's remittance statement and/or
       mailing schedule. Bank agrees to forward to Subscriber all mail other
       than payments and remittances.

3.     Collection of Mail. Bank, or its Agent, will collect mail from the post
       office at multiple times each business day.

4.     Endorsement of Items. Bank, or its Agent, will endorse, on behalf of
       Subscriber, checks and other deposited items that appear to be for
       deposit to the credit of Subscriber. Subscriber shall indemnify Bank and
       its Agent from any liability that may arise by virtue of Bank's, or its
       Agent's, endorsement and negotiation of such checks, except for liability
       arising out of Bank's gross negligence or willful misconduct.

5.     Subscriber's Account. Bank, or its Agent, will process the checks and
       other deposited items and the Bank shall credit the total amount to the
       account described below (the "Account"). During the term of this
       Agreement, all collected funds held in the Account shall be deemed to be
       Subscribers funds for all legal purposes (e.g., attachment, execution and
       other forms of legal process). The crediting and collection of items will
       be handled under the same terms and conditions as apply to other
       commercial deposits. Subscriber acknowledges receipt of a copy of Bank's
       account rules and regulations. Subscriber will have access to funds
       collected by Service when credited to Subscribers account with Bank.

6.     Processing of Items. The processing of checks and other deposited items
       will be accomplished in accordance with the various services and options
       recited in the attached End-User Set-up Form.

7.     Record of Deposited Items. All checks and other deposited items will be
       microfilmed by Bank, or its Agent, and the film will be retained by Bank,
       or its Agent, for a period not less than one (1) year and a copy of such
       records will be forwarded to Subscriber.

8.     Restrictive Endorsements. Although Bank, or its Agent, normally forwards,
       without processing, checks discovered bearing the typed or handwritten
       notation "PAYMENT IN FULL" or other notations ("restrictive
       endorsements"), Bank or its Agent, assumes no responsibility for its
       failure to do so. Bank, or its Agent, will process in the usual manner
       any checks bearing restrictive endorsements where the wording is
       imprinted as part of the check or voucher, indicating a general business
       practice of the payor. Subscriber will instruct their clients to send all
       payments with restrictions such as "paid in full" to a separate location
       or person other than the LOCKBOX address or regular payment location so
       that the payee can decide whether or not to accept or reject the check,
       rather that have the check possibly processed without thought to the
       issue.

9.     Stock Certificates. Bank, or its Agent, will not be held liable in the
       event a stock certificate, bond and/or stock power is received by Bank,
       or its Agent, in error; however, Bank, or its Agent, will endeavor to
       identify such items and to forward them to Subscriber.
<PAGE>

10.    Returned Merchandise. Subscriber agrees to instruct its clients not to
       send any returned merchandise to the post office address assigned by
       Bank, and Subscriber hereby holds Bank, or its Agent, free of liability
       in the event such merchandise is received at the address. Bank, or its
       Agent, will make all reasonable attempts to forward merchandise received
       to Subscriber, at the risk and expense of Subscriber.

11.    Commingling. The Bank hereby acknowledges that, of operational necessity,
       payments to a given LOCKBOX under the Service must be commingled with
       other funds in one or more accounts during the course of processing.
       Therefore, no payments that, by virtue of a statutory, regulatory,
       contractual or similar restriction, cannot be commingled with other
       payments or funds will be accepted under the Service. Subscriber hereby
       understands that it will not request the Service if commingling of funds
       is not permitted due to regulatory, contractual, or similar restrictions.
       Bank, or its Agent will not be responsible for the identification of
       these items nor will they accept any responsibility or liability which
       may occur as a result of processing such an item in the LOCKBOX.

12.    Third Party Secured Creditor. The Subscriber hereby acknowledges that
       Bank shall not be obligated to, and Bank shall not, enter into a third
       party secured creditor agreement with any creditor of a LOCKBOX
       Subscriber with respect to any payments or funds processed through the
       LOCKBOX system as part of the Service. Subscriber agrees not to
       participate in the Service if required to enter into a third party
       secured creditor agreement by another party.

13.    Confidentiality. Bank, or its Agent, agrees that all information
       concerning the clients of the Subscriber which comes into Bank's, or its
       Agent's, possession pursuant to this Agreement will be treated in the
       same confidential manner as is information relating to the accounts of
       Bank's depositors.

14.    Fees. Unless otherwise agreed by Bank. Subscriber shall pay Bank the fees
       set forth for this service in Bank's most current Fee Schedule, plus
       additional fees for the performance of services beyond the terms of this
       Agreement, or resulting from increased expenses incurred by the failure
       of Subscriber to furnish, on demand, data in a form acceptable to Bank.

15.    Limitations on Bank Liability. In addition to the limitations set forth
       in paragraph 8, above, Bank's, or its Agent's, liability will be limited
       only to acts resulting from Bank's, or its Agent's, gross negligence or
       willful misconduct and shall not exceed Bank's fees and charges to
       Subscriber in connection with the Service for the month in which damages
       are suffered. Under no circumstances will Bank, or its Agent, be held
       liable for any general or consequential damages or damages caused, in
       whole or in part, by the action or inaction of Subscriber or any agent or
       employee of Subscriber. Bank, or its Agent, will not be liable for any
       damage, loss, liability or delay caused by accidents, strikes, fire,
       flood, war, riot, equipment breakdown, electrical or mechanical failure,
       acts of God, or any cause which is reasonably unavoidable or beyond its
       reasonable control. Subscriber agrees that the fees charged by Bank for
       the performance of this service shall be deemed to have been established
       in contemplation of these limitations on Bank's, or its Agent's,
       liability.

16.    Indemnification. Subscriber agrees to indemnify Bank, its parent Company,
       affiliates, subsidiaries, or its Agent, against any and all damages,
       losses or liabilities, including without limitation reasonable attorneys'
       fees and court costs, which results, directly or indirectly, in whole or
       in part, from any negligence or fraud of Subscriber, its Agent, or any
       employee of Subscriber or from any performance by Bank, or its Agent, of
       Bank's obligations under this Agreement, except for Bank's gross
       negligence or willful misconduct.

17.    Subscriber's Records. This Agreement and the performance by Bank, or its
       Agent, or its services hereunder shall not relieve Subscriber of any
       obligation imposed by law or contract regarding the maintenance of
       records or from employing adequate audit, account and review practices as
       are customarily followed by similar businesses.

18.    Amendment and Termination. Bank may amend the terms of this Agreement
       from time to time by giving written notice to Subscriber at the address
       set forth below or by sending Subscriber a copy of
<PAGE>

       the amended Agreement. If Bank raises any fee(s) or deletes any
       service(s), it agrees to give Subscriber 30 days' prior notice. Bank may
       immediately terminate this Agreement in the event that Subscriber or any
       third party disputes the ownership of the Account or of the funds on
       deposit in the Account. Otherwise, either party may terminate this
       Agreement on 30 days' written notice to the other.

19.    Governing Law. This Agreement shall be governed by the laws of the State
       of California. Any dispute between the parties to this contract shall be
       filed in the Court having the appropriate jurisdiction in the County of
       Santa Clara, California.

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

Depository Account Number:
                          -------------------

Dated 6/22/01                    Dated
      -------                          -------

MERCATOR SOFTWARE, INC.          SILICON VALLEY BANK

45 DANBURY RD.                   3003 Tasman Drive, NC431
---------------------------
WILTON, CT 06897                 Santa Clara, CA 95054
---------------------------

By /s/ Gerald E. Klein           By
   ------------------------         ------------------------
(authorized signature)              (authorized signature)

Title SECRETARY                  Title
      ---------------------            ---------------------
<PAGE>

18.    Amendment and Termination. Bank may amend the terms of this Agreement
       from time to time by giving written notice to Subscriber at the address
       set forth below or by sending Subscriber a copy of the amended Agreement.
       If Bank raises any fee(s) or deletes any service(s), it agrees to give
       Subscriber 30 days' prior notice. Bank may immediately terminate this
       Agreement in the event that Subscriber or any third party disputes the
       ownership of the Account or of the funds on deposit in the Account.
       Otherwise, either party may terminate this Agreement on 30 days' written
       notice to the other.

19.    Governing Law. This Agreement shall be governed by the laws of the State
       of California. Any dispute between the parties to this contract shall be
       filed in the Court having the appropriate jurisdiction in the County of
       Santa Clara, California.

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

Depository Account Number:
                          -------------------

Dated                            Dated 6/25/01
      -------                          -------

MERCATOR SOFTWARE, INC.          SILICON VALLEY BANK

                                 3003 Tasman Drive, NC431
---------------------------
                                 Santa Clara, CA 95054
---------------------------

By                               By /s/ David Reich
   ------------------------         ------------------------
(authorized signature)              (authorized signature)

Title                            Title SVP
      ---------------------            ---------------------
<PAGE>

                       AMENDMENT TO MAIN LOCKBOX AGREEMENT

MERCATOR SOFTWARE, INC. ("Subscriber") shall hold all payments on, and proceeds
of, Receivables in trust for Silicon Valley Bank ("Bank"), and Subscriber shall
Immediately deliver all such payments and proceeds to Bank in their original
form, duly endorsed in blank, to be applied to the Obligations in such order as
Bank shall determine.

Subscriber hereby agrees to accept a change in the disposition of its lockbox
_______________ proceeds from the current account #_________________ to the Bank
Cash Collateral Account #____________________ beginning immediately. We
understand that Bank may, in its discretion, require that all proceeds of
Collateral be deposited by Subscriber into a lockbox account, or such other
"blocked account" as Bank may specify. Bank or its designee may, at any time,
notify Account Debtors that Receivables have been assigned to Bank

This Amendment Is subject to the terms and conditions of the Lockbox Service
Subscriber Agreement between Subscriber and Bank of even date herewith.

DATED:                 , 2001
      -----------------

Subscriber:                      Bank:

MERCATOR SOFTWARE, INC.          SILICON VALLEY BANK

45 DANBURY RD.                   3003 Tasman Drive, NC431
---------------------------
WILTON, CT 06897                 Santa Clara, CA 95054
---------------------------

By /s/ Gerald E. Klein           By /s/ David Reich
   ------------------------         ------------------------
(authorized signature)              (authorized signature)

Title SECRETARY                  Title SVP
      ---------------------            ---------------------
<PAGE>

                             ANTIDILUTION AGREEMENT

       THIS ANTIDILUTION AGREEMENT is entered into as of June 22, 2001, by and
between Silicon Valley Bank ("Purchaser") and Mercator Software, Inc., a
Delaware corporation (the "Company").

                                    RECITALS

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

       B. By this Antidilution Agreement, the Purchaser and the Company desire
to set forth the adjustment in the number of Shares issuable upon exercise of
the Warrant as a result of a Diluting Issuance (as defined in the Warrant).

       C. Capitalized terms used herein shall have the same meaning as set forth
in the Warrant.

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

              1. Definitions. As used in this Antidilution Agreement, the
following terms have the following respective meanings:

                     (a) "Option" means any right, option, or warrant to
subscribe for, purchase, or otherwise acquire common stock or Convertible
Securities.

                     (b) "Convertible Securities" means any evidences of
indebtedness, shares of stock, or other securities directly or indirectly
convertible into or exchangeable for Common Stock.

                     (c) "Issue" means to grant, issue, sell, or assume,
whichever of the foregoing is the first to occur.

                     (d) "Additional Common Shares" means all Common Stock
(including reissued shares) Issued (or deemed to be issued pursuant to Section
2) after the date of the Warrant. Additional Common Shares does not include,
however, any Common Stock Issued in a transaction described in Sections 2.1 and
2.2 of the Warrant; any Common Stock Issued upon conversion of Options and
Convertible Securities outstanding as of the date of the Warrant; the Shares; or
Common Stock Issued pursuant to a stock option plan which was approved by the
Board of Directors of the Company as an incentive to, or in a nonfinancing
transaction to employees, officers, directors, or consultants to the Company.

       2. Deemed Issuance of Additional Common Shares. The shares of Common
Stock ultimately issuable upon exercise of an Option (including the shares of
Common Stock ultimately issuable upon conversion or exercise of a Convertible
Security issuable pursuant to an Option) are deemed to be Issued when the Option
is Issued. The shares of Common Stock ultimately issuable upon conversion or
exercise of a Convertible Security (other than a Convertible Security Issued
pursuant to an Option) shall be deemed Issued upon Issuance of the Convertible
Security. The maximum amount of Common Stock issuable is determined without
regard to any future adjustments permitted under the instrument creating the
Options or Convertible Securities.
<PAGE>

       3. Adjustment of Warrant Price for Diluting Issuances.

              3.1 Weighted Average Adjustment. If the Company issues Additional
Common Shares after the date of the Warrant and the consideration per Additional
Common Share (determined pursuant to Section 4) is less than the Warrant Price
in effect immediately before such Issue, the Warrant Price shall be reduced,
concurrently with such Issue, to a price (calculated to the nearest hundredth of
a cent) determined by multiplying the Warrant Price by a fraction:

              (a) the numerator of which is the amount of such Common Stock
outstanding immediately before such Issue (or deemed to be outstanding) plus the
amount of Common Stock that the aggregate consideration received by the Company
for the Additional Common Shares would purchase at the Warrant Price in effect
immediately before such Issue, and

              (b) the denominator of which is the amount of Common Stock
outstanding immediately before such Issue (or deemed to be outstanding) plus the
number of such Additional Common Shares.

              3.2 Adjustment of Number of Shares. Upon each adjustment of the
Warrant Price, the number of Shares issuable upon exercise of the Warrant shall
be increased to equal the quotient obtained by dividing (a) the product
resulting from multiplying (i) the number of Shares issuable upon exercise of
the Warrant and (ii) the Warrant Price, in each case as in effect immediately
before such adjustment, by (b) the adjusted Warrant Price.

              3.3 Securities Deemed Outstanding. For the purpose of this Section
3, all securities issuable upon exercise of any outstanding Convertible
Securities or Options, warrants, or other rights to acquire securities of the
Company shall be deemed to be outstanding.

       4. Computation of Consideration. The consideration received by the
Company for the Issue of any Additional Common Shares shall be computed as
follows:

              (a) Cash shall be valued at the amount of cash received by the
Corporation, excluding amounts paid or payable for accrued interest or accrued
dividends.

              (b) Property. Property other than cash shall be computed at the
fair market value thereof at the time of the Issue as determined in good faith
by the Board of Directors of the Company.

              (c) Mixed Consideration. The consideration for Additional Common
Shares Issued together with other property of the Company for consideration that
covers both shall be determined in good faith by the Board of Directors.

              (d) Options and Convertible Securities. The consideration per
Additional Common Share for Options and Convertible Securities shall be
determined by dividing:

                     (i) the total amount, if any, received or receivable by the
Company for the Issue of the Options or Convertible Securities, plus the minimum
amount of additional consideration (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent
adjustment of such consideration) payable to the Company upon exercise of the
Options or conversion of the Convertible Securities, by

                     (ii) the maximum amount of Common Stock (as set forth in
the instruments relating thereto, without regard to any provision contained
therein for a subsequent adjustment of such number) ultimately issuable upon the
exercise of such Options or the conversion of such Convertible Securities.

                                       2
<PAGE>

       5. General.

              5.1 Governing Law. This Antidilution 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.

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

              5.3 Entire Agreement. Except as set forth below, this Antidilution
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.

              5.4 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, or by
personal delivery (subject to evidence of receipt) or by overnight courier
(subject to evidence of receipt) addressed (a) if to Purchaser at Purchaser's
address as set forth below, or at such other address as Purchaser 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 Purchaser in writing.

              5.5 Waiver. This Antidilution Agreement and any term hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge
or termination is sought.

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

              5.7 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 Antidilution Agreement.

                                       3
<PAGE>

              5.8 Counterparts. This Antidilution 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.

PURCHASER:                            COMPANY:

SILICON VALLEY BANK                   MERCATOR SOFTWARE, INC.

By:                                   By: /s/ Gerald E. Klein
    -------------------------------       -------------------------------
Name:                                 Name: GERALD E. KLEIN
Title:                                Title: SECRETARY

Address:                              Address: 45 Danbury Road
         --------------------------            Wilton, Connecticut 06897
         3003 Tasman Drive
         --------------------------
         Santa Clara, CA 95954
         --------------------------

                                       4
<PAGE>

              5.8 Counterparts. This Antidilution 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.

PURCHASER:                            COMPANY:

SILICON VALLEY BANK                   MERCATOR SOFTWARE, INC.

By: /s/ David Reich                   By:
    -------------------------------       -------------------------------
Name: David Reich                     Name:
Title: SVP                            Title:

Address:                              Address: 45 Danbury Road
         --------------------------            Wilton, Connecticut 06897

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

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

                                       4
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

       THIS REGISTRATION RIGHTS AGREEMENT is entered into as of June 22, 2001,
by and between Silicon Valley Bank ("Purchaser") and Mercator Software, 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 "Warrants") pursuant
to which Purchaser has rights to acquire from the Company the Shares (as defined
in the Warrant), which Shares when issued shall be shares of the Company's
common stock, $.01 par value per share ("Common Stock").

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

              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,
at any time when the Shares are shares of Common Stock, 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. Shares shall cease to be Registrable Securities when
they are eligible to be sold pursuant to Rule 144(k) of the Securities Act.

                     (c) The terms "Holder" or "Holders" means Purchaser and its
qualifying transferees under subsection 1.9 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. For a period of two (2) years after the
Shares are so acquired, 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 or on Form S-4 or on Form S-3 relating solely to
an SEC Rule 145 transaction or relating solely to a merger, recapitalization,
share exchange, consolidation, acquisition or similar transaction, the Company
will:
<PAGE>

                            (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

                            (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 30 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 l.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 all
or any part of 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 the 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, except that
where such a registration is solely for another shareholder, such shareholder
shall be considered before Holder.

              1.3 Intentionally Omitted.

              1.4 Expenses of Registration. All expenses incurred in connection
with any registration, qualification or compliance pursuant to this Section 1
including without limitation, all registration, filing and qualification fees,
printing expenses, underwriting fees, discounts and commissions, fees and
disbursements of counsel for the Company and expenses of any special audits
incidental to or required by such registration, shall be borne by the Company,
provided however that the Holders shall pay the fees and expenses of their
respective counsel and accountants and underwriting discounts and commissions
and transfer taxes in respect of any such registration or compliance being
registered. 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.

              1.5 Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to this
Registration Rights Agreement, the Company will keep each Holder participating
therein advised in writing as to the initiation of each registration,
qualification and compliance and as to the completion thereof. At its expense
the Company will:

                     (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 90 days (the "Effective
Period"),provided, however, that if, at any

                                        2
<PAGE>

time after giving notice pursuant to Section 1.2(a) hereof and prior to the
effective date of any such registration statement, the Company shall determine
for any reason not to register or to delay registration of its securities, the
Company may give written notice of such determination to each Holder who has
requested inclusion of Registrable Securities in such registration statement
and, thereupon the Company (i) in the case of a determination not to register,
shall be relieved of its obligation to register any Registrable Securities and
(ii) in the case of a determination to delay registration, shall be permitted to
delay registering any Registrable Securities for the same period as the delay in
registering other securities included in such registration statement.

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

                     (d) If required by law, 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, and each Holder shall thereupon forthwith discontinue use of such
prospectus until receipt of notice from the Company that use of such prospectus
may be resumed or receipt of prospectus supplement or amendment so that such
prospectus will not contain such untrue statement or omission.

              1.6 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"), 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

                                       3
<PAGE>

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,
within a reasonable amount of time after incurred for any reasonable legal and
any other 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 1.6(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 by an instrument duly executed by or on
behalf of such Holder specifically for use therein, and provided further that
the indemnity agreement contained in this subsection 1.6(a) shall not apply to
the extent that any such claim, loss, damage or liability arises out of or is
based on the Holder's use of a prospectus after the Company has notified the
Holder under Section 1.4(f).

                     (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, 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 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 by an instrument duly executed by or on behalf of such
Holder specifically for use therein; provided, however, that the indemnity
agreement contained in this subsection 1.6(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 1.6(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 1.6 (the "Indemnified Party") shall give notice to the party required
to provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom; provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or 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 in the unqualified written opinion of counsel to the

                                        4
<PAGE>

Holder, 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 1.6 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 Company and
Holders agree that it would not be just and equitable if contribution pursuant
to this Section 1.6(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 1.6(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 1.6(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.

              1.7 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.

              1.8 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 for a two (2) year period after the Shares are issued to:

                     (a) make and keep public information available, as those
terms are understood and defined in SEC Rule 144;

                     (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

                                        5
<PAGE>

                     (c) upon the request of the Holder, so long as a Holder
owns any Registrable Securities, to furnish to such Holder within a reasonable
period of time (but in no event to exceed more than five (5) business days) a
written statement by the Company as to its compliance with the reporting
requirements of said Rule 144, and of the Securities Act and the Exchange Act
(at any time after it has become subject to such reporting requirements), 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.

              1.9 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, 1.3 and 1.8 may be assigned to a
transferee or assignee of all of a Holder's Registrable Securities as a block
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.

       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, or by
personal delivery (subject to evidence of receipt) or by overnight courier
(subject to evidence of receipt) 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
Agreements 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.

       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                        MERCATOR SOFTWARE, INC.

By:                                        By: /s/ Gerald E. Klein
    ---------------------------------          ---------------------------------
Name:                                      Name: GERALD E. KLEIN
      -------------------------------            -------------------------------
Title:                                     Title: SECRETARY
       ------------------------------             ------------------------------
Address:                                   Address: 45 Danbury Rd.
         ----------------------------               ----------------------------
                                                    WILTON, CONN. 06897

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

                                        7
<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
Agreements 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.

       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                        MERCATOR SOFTWARE, INC.

By: /s/ David Reich                        By:
    ---------------------------------          ---------------------------------
Name: David Reich                          Name:
      -------------------------------            -------------------------------
Title: SVP                                 Title:
       ------------------------------             ------------------------------
Address:                                   Address:
         ----------------------------               ----------------------------

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

                                        7
<PAGE>

                                                                   Exhibit 10.23
                                                                   (continued)

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY
NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
THEREOF UNDER SUCH ACT AND LAWS OR PURSUANT TO RULE 144 AND EXEMPTIONS UNDER
APPLICABLE STATE SECURITIES LAWS, OR SUBJECT TO SECTIONS 4.3 HEREOF, AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED.

                            WARRANT TO PURCHASE STOCK

Issuer:            Mercator Software, Inc., a Delaware corporation
Number of Shares:  220,000, subject to adjustment
Class of Stock:    Common Stock, $.0l par value per share
Exercise Price:    $4.00 per share, subject to adjustment
Issue Date:        June 22, 2001
Expiration Date:   As set forth below

      THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for
other good and valuable consideration, this Warrant is issued to SILICON VALLEY
BANK (together with its successors and permitted assigns, the "Holder") by
MERCATOR SOFTWARE, INC., a Delaware corporation (the "Company").

      Subject to the terms and conditions hereinafter set forth, the Holder is
entitled upon surrender of this Warrant and the duly executed subscription form
annexed hereto as Appendix 1, at the office of the Company, 45 Danbury Road,
Wilton, Connecticut 06897, or such other office as the Company shall notify the
Holder of in writing, to purchase from the Company Two Hundred Twenty Thousand
(220,000) fully paid and non-assessable shares (the "Shares") of the Company's
Common Stock, $.01 par value per share (the "Class"), at a purchase price per
Share of Four Dollars ($4.00) (the "Exercise Price"). Until such time as this
Warrant is exercised in full or expires, the Exercise Price and the number
Shares are subject to adjustment from time to time as hereinafter provided. This
Warrant may be exercised in whole or in part at any time and from time to time
until 5:00 PM, Eastern time June 22, 2008 (the "Expiration Date").

ARTICLE 1. EXERCISE.

            1.1 Method of Exercise. Holder may exercise this Warrant by
delivering a duly executed Notice of Exercise in substantially the form attached
as Appendix 1 to the principal office of the Company. Unless Holder is
exercising the conversion right set forth in Section 1.2, Holder shall also
deliver to the Company a check for the aggregate Exercise Price for the Shares
being purchased.
<PAGE>

            1.2 Conversion Right. In lieu of exercising this Warrant as
specified in Section 1.1, Holder may from time to time convert this Warrant, in
whole or in part, into a number of Shares determined by dividing (a) the
aggregate fair market value of the Shares or other securities otherwise issuable
upon exercise of this Warrant minus the aggregate Exercise Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares
shall be determined pursuant to Section 1.4.

            1.3 Fair Market Value.

                1.3.1 If shares of the Class are traded on a nationally
recognized securities exchange or over the counter market, the fair market value
of a Share shall be the price of the last sale of a share of the Class reported
for the business day immediately before Holder delivers its Notice of Exercise
to the Company.

                1.3.2 If shares of the Class are not traded on a nationally
recognized securities exchange or over the counter market, the Board of
Directors of the Company shall determine fair market value in its reasonable
good faith judgment. The foregoing notwithstanding, if Holder advises the Board
of Directors in writing that Holder disagrees with such determination, then the
Company and Holder shall promptly agree upon a reputable investment banking firm
to undertake such valuation. If the valuation of such investment banking firm
is greater than that determined by the Board of Directors, then all fees and
expenses of such investment banking firm shall be paid by the Company. In all
other circumstances, such fees and expenses shall be paid by Holder. The
valuation determined by such investment banking firm shall be conclusive in any
event.

            1.4 Delivery of Certificate and New Warrant. Promptly after Holder
exercises or converts this Warrant, the Company at its sole expense shall
promptly deliver to Holder (i) certificates for the Shares acquired upon such
exercise, and (ii) if this Warrant has not been fully exercised or converted and
has not expired, a new warrant of like tenor representing the Shares for which
this Warrant is still exercisable.

            1.5 Replacement of Warrants. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and amount to the Company
or, in the case of mutilation, on surrender and cancellation of this Warrant,
the Company at its expense shall execute and deliver, in lieu of this Warrant, a
new warrant of like tenor.

            1.6 Repurchase on Sale, Merger, or Consolidation of the Company.

                1.6.1. "Acquisition". For the purpose of this Warrant,
"Acquisition" means any sale, assignment, transfer, exclusive license, or other
disposition of all or substantially all of the assets of the Company, or any
acquisition, reorganization, consolidation, or merger of the Company where the
holders of the Company's outstanding voting equity securities immediately prior
to the transaction beneficially own less than 50.1% of the outstanding voting
equity securities of the surviving or successor entity immediately following the
transaction.

                                       -2-
<PAGE>

                1.6.2. Assumption of Warrant. Upon the closing of any
Acquisition the successor or surviving entity shall assume the obligations of
this Warrant, and this Warrant shall be exercisable for the same securities,
cash, and property as would be payable for the Shares issuable upon exercise of
the unexercised portion of this Warrant as if such Shares were outstanding on
the record date for the Acquisition and subsequent closing. The Exercise Price
shall be adjusted accordingly, and the Exercise Price and number and class of
Shares shall continue to be subject to adjustment from time to time in
accordance with the provisions hereof.

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

            2.1 Dividends, Splits, Etc. If the Company declares or pays a
dividend on the outstanding shares of the Common Stock (as defined below),
payable in Common Stock, other securities or any type of property (other than
cash dividends), or subdivides the outstanding Common Stock into a greater
amount of Common Stock of the outstanding shares, then upon exercise of this
Warrant, for each Share acquired, Holder shall receive, without cost to Holder,
the total number and kind of securities or property to which Holder would have
been entitled had Holder owned the Shares of record as of the date the dividend
or subdivision occurred.

            2.2 Reclassification, Exchange or Substitution. Upon any
reclassification, exchange, substitution, reorganization or other event that
results in a change of the number and/or class of the securities issuable upon
exercise or conversion of this Warrant, Holder shall be entitled to receive,
upon exercise or conversion of this Warrant, the number and kind of securities
and property that Holder would have received for the Shares if this Warrant had
been exercised immediately before such reclassification, exchange, substitution,
reorganization or other event. The Company or its successor shall promptly issue
to Holder a new warrant of like tenor for such new securities or other property.
The new warrant shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article
2 including, without limitation, adjustments to the Exercise Price and to the
number of securities or property issuable upon exercise of the new warrant. The
provisions of this Section 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, reorganizations or other events.

            2.3 Adjustments for Combinations, Etc. If the outstanding shares of
the Class are combined or consolidated, by reclassification or otherwise, into a
lesser number of shares, the Exercise Price shall be proportionately increased
and the number of Shares issuable upon exercise or conversion of this Warrant is
exercisable shall be proportionately decreased.

            2.4 No Impairment. The Company shall not, by amendment of the
Certificate of Incorporation (the "Certificate") or its by-laws or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue,
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed under
this Warrant by the Company, but shall at all times in good faith assist in
carrying out all of the provisions of this Article 2 and in taking all such
action as may be necessary or appropriate to protect Holder's rights under this
Article against impairment.

                                       -3-
<PAGE>

            2.5 Adjustments for Dilutive Issuances. In the event of the issuance
(a "Diluting Issuance") by the Company, after the Issue Date of this Warrant, of
Common Stock at a price per share less than the Exercise Price or securities
convertible into Common Stock at a conversion price per share less than the
Exercise Price, then the number of Shares issuable upon exercise of this
Warrant, shall be adjusted as a result of Diluting Issuances in accordance with
that certain Antidilution Agreement dated as of the date of this Warrant, by and
between Holder and the Company. Under no circumstances shall the aggregate
Exercise Price payable by Holder upon exercise of this Warrant increase as a
result of any adjustment arising from a Diluting Issuance.

            2.6 Fractional Shares. No fractional Shares shall be issuable upon
exercise or conversion of the Warrant and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional Share interest
arises upon any exercise or conversion of this Warrant, the Company shall
eliminate such fractional Share interest by paying Holder an amount computed by
multiplying such fractional interest by the Fair Market Value (determined in
accordance with Section 1.3 above) of one Share.

            2.7 Certificate as to Adjustments. Upon each adjustment of the
Exercise Price, number of class of Shares or number of shares of Common Stock or
other securities for which the Shares are convertible or exchangeable, the
Company at its expense shall promptly compute such adjustment, and furnish
Holder with a certificate of its chief financial officer setting forth such
adjustment and the facts upon which such adjustment is based. The Company shall
at any time and from time to time (but in no event more than once every six
months), upon written request, furnish Holder with a certificate setting forth
the Exercise Price, number and class of Shares and conversion ratio in effect
upon the date thereof and the series of adjustments leading to such Exercise
Price, number and class of Shares and conversion ratio.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

            3.1 Representations and Warranties. The Company hereby represents
and warrants to the Holder as follows:

                (a) All Shares which maybe issued upon the due exercise of this
Warrant, and all Common Stock or other securities, if any, issuable upon due
conversion of the Shares, shall, upon issuance, be duly authorized, validly
issued, fully paid and non-assessable, and free of any liens and encumbrances
except for restrictions on transfer provided for herein or under applicable
federal and state securities laws.

                (b) The execution and delivery by the Company of this Warrant
and the performance of all obligations of the Company hereunder, including the
issuance to Holder of the right to acquire the Shares, have been duly authorized
by all necessary corporate action on the part of the Company, and this Warrant
Agreement is not inconsistent with the Certificate and/or the Company's by-laws,
does not, to the best of the Company's knowledge, contravene any law or
governmental rule, regulation or order applicable to it, does not and will not
contravene any provision of, or constitute a default under, any material
indenture, mortgage, contract or other instrument to which it is a party or by
which it is bound, and constitutes a legal, valid and binding

                                       -4-
<PAGE>

agreement of the Company, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, moratorium,
reorganization or other laws, judicial decisions or principles of equity
relating to or affecting the enforcement of creditors' rights generally
(regardless of whether enforceability is considered in a proceeding in equity or
at law).

                (c) The authorized capital stock of the Company consists of
195,000,000 shares, consisting of 190,000,000 shares of common stock, $.0l par
value per share ("Common Stock"), and 5,000,000 shares of preferred stock, $.01
par value per share, of which 5,000,000 shares have been designated Convertible
Preferred Stock. Schedule 3.1(c) sets forth all of the outstanding shares of
common stock and preferred stock and outstanding options, warrants, convertible
securities, convertible debentures, and rights to acquire, subscribe for, and/or
purchase any Common Stock, preferred stock and/or other capital stock of the
Company or any securities or debentures convertible into or exchangeable for
Common Stock, preferred stock and/or other capital stock of the Company.

                (d) The Company covenants that it shall at all times cause to be
reserved and kept available out of its authorized and unissued shares such
number of shares of its Common Stock and other securities as will be sufficient
to permit the exercise in full of this Warrant.

            3.2 Notice of Certain Events. If the Company proposes at any time
(a) to declare any dividend or distribution upon any of its capital stock,
whether in cash, property, stock, or other securities and whether or not a
regular cash dividend; (b) to offer for subscription pro rata to the holders of
any class or series of its stock any additional shares of stock of any class or
series or other rights; (c) to effect any reclassification or recapitalization
of any of its securities; (d) to merge or consolidate with or into any other
corporation, or sell, lease, license, or convey all or substantially all of its
assets, or to liquidate, dissolve or wind up, then, in connection with each such
event, the Company shall give Holder (1) at least 20 days prior written notice
of the date on which a record will be taken for such dividend, distribution, or
subscription rights (and specifying the date on which the holders of securities
of the Company shall be entitled to receive such dividend, distribution or
rights) or for determining rights to vote, if any, in respect of the matters
referred to in (c) and (d) above; (2) in the case of the matters referred to in
(c) and (d) above at least 20 days prior written notice of the date when the
same will take place (and specifying the date on which the holders of securities
of the Company will be entitled to exchange their securities of the Company for
securities or other property deliverable upon the occurrence of such event).

            3.3 Information Rights. So long as the Holder holds this Warrant
and/or any of the Shares, the Company shall deliver to the Holder (a) promptly
after mailing, copies of all notices or other written communications to the
shareholders of the Company, (b) within one-hundred and twenty (120) days after
the end of each fiscal year of the Company, the annual audited financial
statements of the Company certified by independent public accountants of
recognized standing and (c) such other financial statements required under and
in accordance with any loan documents between Holder and the Company or if there
are no such requirements (or if the subject loan(s) no longer are outstanding),
then within forty-five (45) days after the end of each of the first three
quarters of each fiscal year, the Company's quarterly, unaudited financial
statements. Subclauses

                                       -5-
<PAGE>

(b) and (c) shall be satisfied by delivery to Holder of the Company's Annual
Report on Form 10-K and Quarterly Reports on Form l0-Q.

            3.4 Registration Under Securities Act of 1933, as amended. The
shares of Common Stock issuable upon conversion of the Shares shall have certain
registration rights as set forth in that certain Registration Rights Agreement
of even date herewith between Holder and the Company (the "Registration Rights
Agreement"). The Company represents and warrants to Holder that the Company's
execution, delivery and performance of the Registration Rights Agreement (a) has
been duly authorized by all necessary corporate action of the Company's Board of
Directors and shareholders, (b) will not violate the Certificate or the
Company's by-laws, each as amended, (c) will not violate or cause a breach or
default (or an event which with the passage of time or the giving of notice or
both, would constitute a breach or default) under any material agreement,
instrument, mortgage, deed of trust or other arrangement to which the Company is
a party or by which it or any of its assets is subject or bound, and (d) does
not require the approval, consent or waiver of or by any shareholder,
registration rights holder or other third party which approval, consent or
waiver has not been obtained as of the date of issuance of this Warrant.

ARTICLE 4. MISCELLANEOUS.

            4.1 Automatic Conversion upon Expiration. In the event that, upon
the Expiration Date, the fair market value of one Share (or other security
issuable upon the exercise hereof) as determined in accordance with Section 1.4
above is greater than the Exercise Price in effect on such date, then this
Warrant shall automatically be deemed on and as of such date to be converted
pursuant to Section 1.2 above as to all Shares (or such other securities) for
which it shall not previously have been exercised or converted, and the Company
shall promptly deliver a certificate representing the Shares (or such other
securities) issued upon such conversion to the Holder.

            4.2 Legends. This Warrant and the Shares (and the securities
issuable, directly or indirectly, upon conversion of the Shares, if any) shall
be imprinted with a legend in substantially the following form:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
      PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
      THEREOF UNDER SUCH ACT AND LAWS, OR PURSUANT TO RULE 144 AND
      EXEMPTIONS UNDER APPLICABLE STATE SECURITIES LAWS, OR, SUBJECT TO
      SECTION 4.3 OF THAT CERTAIN WARRANT ISSUED ON JUNE 22, 2001, BY THE
      CORPORATION TO SILICON VALLEY BANK, AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH
      REGISTRATION IS NOT REQUIRED.

      The Holder represents to the Corporation that it is acquiring the Warrant
and will acquire the Shares for its own account and not as a nominee for any
other party and not with a view to any public distribution thereof, subject to
any requirement of law that the disposition of such securities

                                       -6-
<PAGE>

shall at all times be within the control of the owner thereof. The acquisition
of any Shares, upon exercise of a Warrant shall constitute the Holder's
reaffirmation of such representation. The Holder further represents to the
Corporation that it is an "accredited investor" as defined in Regulation D of
The Securities Act of 1933. The Holder understands that the Warrants and the
Shares have not been registered under said Securities Act and may only be sold
or otherwise disposed of in compliance with said Securities Act. The Holder by
its acceptance of such security further understands that such security may bear
a legend as contemplated by this Section 4.2.

            4.3 Compliance with Securities Laws on Transfer. This Warrant and
the Shares (and the securities, if any, issued and issuable upon conversion of
the Shares) may not be transferred or assigned in whole or in part without
compliance with applicable federal and state securities laws by the transferor
and the transferee (including, without limitation, the delivery of investment
representation letters and legal opinions reasonably satisfactory to the
Company, as reasonably requested by the Company). The Company shall not require
Holder to provide an opinion of counsel if the transfer is to Silicon Valley
Bancshares (Holder's parent company) or any other affiliate of Holder or if (a)
there is no material question as to the availability of current information as
referenced in Rule 144(c), (b) Holder represents that it has complied with Rule
144(d) and (e) in reasonable detail, (c) the selling broker represents that it
has complied with Rule 144(f), and (d) the Company is provided with a copy of
Holder's notice of proposed sale.

            4.4 Transfer Procedure. Following its receipt of this executed
Warrant, Silicon Valley Bank will transfer same in whole or in part to its
parent corporation, Silicon Valley Bancshares, and thereafter Holder and/or
Silicon Valley Bancshares may, subject to Section 4.3 above, transfer all or
part of this Warrant and/or the Shares (or the securities, if any, issued and
issuable upon conversion of the Shares) at any time and from time to time to The
Silicon Valley Bank Foundation or any other transferee by giving the Company
notice of the portion of the Warrant being transferred setting forth the name,
address and taxpayer identification number of the transferee and surrendering
this Warrant to the Company for reissuance to the transferee(s) (and Holder if
applicable); provided, that at all times, Holder shall not, without the prior
written consent of the Company, transfer this Warrant (or any part hereof), any
Shares, or any securities issued or issuable upon conversion of the Shares, to
any person who directly competes with the Company, unless such transfer is in
connection with an Acquisition of the Company by any such person.

            4.5 Notices. All notices and other communications from the Company
to the Holder, or vice versa, shall be deemed delivered and effective when given
personally (subject to evidence of receipt) or mailed by first-class registered
or certified mail, postage prepaid, return receipt, or sent via reputable
overnight courier service, fee prepaid (subject to evidence of receipt), at such
address as may have been furnished to the Company or the Holder, as the case may
be, in writing by the Company or such holder from time to time, but in all
cases, unless instructed in writing otherwise, the Company shall deliver a copy
of all notices to Holder to Silicon Valley Bank, Treasury Department, 3003
Tasman Drive, HA-200, Santa Clara, California 95054.

            4.6 Waiver. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is
sought.

                                       -7-
<PAGE>

            4.7 Attorneys Fees. In the event of any dispute between the parties
concerning the terms and provisions of this Warrant, the party prevailing in
such dispute shall be entitled to collect from the other party all costs
incurred in such dispute, including reasonable attorneys' fees.

            4.8 Survival of Representations, Warranties and Agreements. All
representations and warranties of the Company contained herein shall survive the
date of this Warrant, the exercise or conversion of this Warrant (or any part
hereof) and/or the termination or expiration of rights hereunder. All agreements
of the Company and the Holder contained herein shall survive indefinitely until,
by their respective terms, they are no longer operative.

                                       -8-
<PAGE>

            4.9 Governing Law. This Warrant shall be governed by and construed
in accordance with the laws of the Commonwealth of Massachusetts, without giving
effect to its principles regarding conflicts of law.

                                    "COMPANY"

                                    MERCATOR SOFTWARE, INC.

                                    By: /s/ Roy C. King
                                       -----------------------------------------

                                    Name: Roy C. King
                                         ---------------------------------------
                                          (Print)
                                    Title: Chairman of the Board, President
                                           and Chief Executive Officer

                                    By: /s/ Gerald Klein
                                       -----------------------------------------

                                    Name: /s/ GERALD KLEIN
                                         ---------------------------------------
                                          (Print)
                                    Title: Secretary
<PAGE>

                                   APPENDIX 1

                               NOTICE OF EXERCISE

      1. The undersigned hereby elects to purchase ________ shares of the
__________________stock of ________________ pursuant to Section 1.1 of the
attached Warrant, and tenders herewith payment of the Exercise Price of such
shares in full.

      1. The undersigned hereby elects to convert the attached Warrant into
Shares in the manner specified in Section 1.2 of the attached Warrant. This
conversion is exercised with respect to _________ of shares of
the _______________________ Stock of __________________.

      [Strike paragraph that does not apply.]

      2. Please issue a certificate or certificates representing said shares in
the name of the undersigned or in such other name as is specified below:

               --------------------------------------------------
                    (Name)

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

               --------------------------------------------------
                    (Address)

      3. The undersigned represents to Mercator Software, Inc. ("Company") that
it is acquiring the Shares for its own account and not as a nominee for any
other party and not with a view to any public distribution thereof, subject to
any requirement of law that the disposition of such securities shall at all
times be within the control of the owner thereof. The undersigned further
represents to the Company that it is an "accredited investor" as defined in
Regulation D of The Securities Act of 1933. The undersigned understands that the
Shares have not been registered under said Securities Act and may only be sold
or otherwise disposed of in compliance with said Securities Act. The undersigned
by its acceptance of such security further understands that such security may
bear a legend as contemplated by Section 4.2 of that certain Warrant issued on
_______, 2001, by the Company to Silicon Valley Bank.

                                                  ------------------------------
                                                      (Signature)

--------------------------
        (Date)
<PAGE>

                        Schedule 3.1(c) - Capitalization

Outstanding Capital Stock as of June 14, 2001:

30,379,092 common shares, $0.01 par

No convertible preferred, $0.01 par

Outstanding options, warrants, convertible securities, convertible debentures,
and rights to acquire, subscribe for, and/or purchase any Common Stock,
preferred stock and/or other capital stock of the Borrower or any securities or
debentures convertible into or exchangeable for Common Stock, preferred stock
and/or other capital stock of the Borrower:

As of 6/14/01:

      _ Four warrants remaining which are exercisable into 63,810 shares, and
        expire in June 2002

      _ 10,410,697 options available and/or granted under Employee & Director
        Stock Purchase Plans (Note: These have not been excercised.)
<PAGE>

                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

      This Intellectual Property Security Agreement (this "IP Agreement") is
made as of the 22nd day of June, 2001 by and between MERCATOR SOFTWARE, INC., a
Delaware corporation with its principal place of business at 45 Danbury Road,
Wilton, Connecticut 06897 ("Grantor"), and SILICON VALLEY BANK, a California
banking corporation ("Lender").

                                    RECITALS

      A. Lender has agreed to make advances of money and to extend certain
financial accommodations to Grantor (the "Loan") pursuant to a certain Accounts
Receivable Financing Agreement of even date herewith, between Grantor and
Lender, as amended from time to time (as amended, the "Loan Agreement"). The
Loan is secured pursuant to the terms of the Loan Agreement. Lender is willing
to enter into certain financial accommodations with Borrower, but only upon the
condition, among others, that Grantor shall grant to Lender a security interest
in certain Copyrights, Trademarks, Patents, and Mask Works to secure the
obligations of Grantor under the Loan Agreement. Defined terms used but not
defined herein shall have the same meanings as in the Loan Agreement.

      B. Pursuant to the terms of the Loan Agreement, Grantor has granted to
Lender a security interest in all of Grantor's right title and interest, whether
presently existing or hereafter acquired in, to and under all of the Collateral
(as defined therein).

      NOW, THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged and intending to be legally bound, as collateral security
for the prompt and complete payment when due of Grantor's Indebtedness (as
defined below), Grantor hereby represents, warrants, covenants and agrees as
follows:

      1. Grant of Security Interest. As collateral security for the prompt and
complete payment and performance of all of Grantor's present or future
indebtedness, obligations and liabilities to Lender (hereinafter, the
"Indebtedness"), including, without limitation, under the Loan Agreement,
Grantor hereby grants a security interest in all of Grantor's right, title and
interest in, to and under its intellectual property collateral (all of which
shall collectively be called the "Intellectual Property Collateral"), including,
without limitation, the following:

         (a) Any and all copyright rights, copyright applications, copyright
      registrations and like protections in each work or authorship and
      derivative work thereof, whether published or unpublished and whether or
      not the same also constitutes a trade secret, now or hereafter existing,
      created, acquired or held, including without limitation those set forth on
      EXHIBIT A attached hereto (collectively, the "Copyrights");

         (b) Any and all trade secrets, and any and all intellectual property
      rights in computer software and computer software products now or
      hereafter existing, created, acquired or held;

         (c) Any and all design rights which may be available to Grantor now or
      hereafter existing, created, acquired or held;

         (d) All patents, patent applications and like protections including,
      without limitation, improvements, divisions, continuations, renewals,
      reissues, extensions and continuations-in-part of the same, including
      without limitation the patents and patent applications set forth on
      EXHIBIT B attached hereto (collectively, the "Patents");

         (e) Any trademark and servicemark rights, whether registered or not,
      applications to register and registrations of the same and like
      protections, and the entire goodwill of the business of Grantor connected
      with and symbolized by such trademarks, including without limitation those
      set forth on EXHIBIT C attached hereto (collectively, the "Trademarks");

         (f) All mask works or similar rights available for the protection of
      semiconductor chips, now owned or hereafter acquired, including, without
      limitation those set forth on EXHIBIT D attached hereto (collectively, the
      "Mask Works");
<PAGE>

         (g) Any and all claims for damages by way of past, present and future
      infringements of any of the rights included above, with the right, but not
      the obligation, to sue for and collect such damages for said use or
      infringement of the intellectual property rights identified above;

         (h) All licenses or other rights to use any of the Copyrights, Patents,
      Trademarks, or Mask Works and all license fees and royalties arising from
      such use to the extent permitted by such license or rights; and

         (i) All amendments, extensions, renewals and extensions of any of the
      Copyrights, Trademarks, Patents, or Mask Works; and

         (j) All proceeds and products of the foregoing, including without
      limitation all payments under insurance or any indemnity or warranty
      payable in respect of any of the foregoing.

      2. Authorization and Request. Grantor authorizes and requests that the
Register of Copyrights and the Commissioner of Patents and Trademarks record
this IP Agreement.

      3. Covenants and Warranties. Grantor represents, warrants, covenants and
agrees as follows:

         (a) Other than with respect to components on portions of software which
      Grantor has licensed from third parties, Grantor is now the sole owner of
      the Intellectual Property Collateral, except for non-exclusive licenses
      granted by Grantor to its customers in the ordinary course of business.

         (b) Performance of this IP Agreement does not conflict with or result
      in a breach of any intellectual property agreement to which Grantor is
      bound, except to the extent that certain intellectual property agreements
      prohibit the assignment of the rights thereunder to a third party without
      the licensor's or other party's consent and this IP Agreement constitutes
      a security interest.

         (c) During the term of this IP Agreement, Grantor will not transfer or
      otherwise encumber any interest in the Intellectual Property Collateral,
      except for non-exclusive licenses granted by Grantor in the ordinary
      course of business or as set forth in this IP Agreement;

         (d) To its knowledge, each of the Patents is valid and enforceable, and
      no part of the Intellectual Property Collateral has been judged invalid or
      unenforceable, in whole or in part, and no claim has been made that any
      part of the Intellectual Property Collateral violates the rights of any
      third party;

         (e) Grantor shall promptly advise Lender of any material adverse change
      in the composition of the Collateral, including but not limited to any
      subsequent ownership right of the Grantor in or to any Trademark, Patent,
      Copyright, or Mask Work specified in this IP Agreement;

         (f) Grantor shall (i) protect, defend and maintain the validity and
      enforceability of the Trademarks, Patents, Copyrights, and Mask Works,
      (ii) use reasonable efforts to detect infringements of the Trademarks,
      Patents, Copyrights, and Mask Works and promptly advise Lender in writing
      of material infringements detected and (iii) not allow any Trademarks,
      Patents, Copyrights, or Mask Works to be abandoned, forfeited or dedicated
      to the public without the written consent of Lender, which shall not be
      unreasonably withheld, unless Grantor determines that reasonable business
      practices suggest that abandonment is appropriate.

         (g) Grantor shall promptly register the most recent version of any of
      Grantor's Copyrights, if not so already registered, and shall, from time
      to time, execute and file such other instruments, and take such further
      actions as Lender may reasonably request from time to time to perfect or
      continue the perfection of Lender's interest in the Intellectual Property
      Collateral;

         (h) This IP Agreement creates, and in the case of after acquired
      Intellectual Property Collateral, this IP Agreement will create at the
      time Grantor first has rights in such after acquired Intellectual Property
      Collateral, in favor of Lender a valid and perfected first priority
      security interest in the Intellectual Property

                                       -2-
<PAGE>

      Collateral in the United States securing the payment and performance of
      the obligations evidenced by the Loan Agreement upon making the filings
      referred to in clause (i) below;

         (i) To its knowledge, except for, and upon, the filing with the United
      States Patent and Trademark office with respect to the Patents and
      Trademarks and the Register of Copyrights with respect to the Copyrights
      and Mask Works necessary to perfect the security interests created
      hereunder and except as has been already made or obtained, no
      authorization, approval or other action by, and no notice to or filing
      with, any U.S. governmental authority or U.S. regulatory body is required
      either (i) for the grant by Grantor of the security interest granted
      hereby or for the execution, delivery or performance of this IP Agreement
      by Grantor in the U.S. or (ii) for the perfection in the United States or
      the exercise by Lender of its rights and remedies thereunder;

         (j) All information heretofore, herein or hereafter supplied to Lender
      by or on behalf of Grantor with respect to the Intellectual Property
      Collateral is accurate and complete in all material respects.

         (k) Grantor shall not enter into any agreement that would materially
      impair or conflict with Grantor's obligations hereunder without Lender's
      prior written consent, which consent shall not be unreasonably withheld.
      Grantor shall not permit the inclusion in any material contract to which
      it becomes a party of any provisions that could or might in any way
      prevent the creation of a security interest in Grantor's rights and
      interest in any property included within the definition of the
      Intellectual property Collateral acquired under such contracts, except
      that certain contracts may contain anti-assignment provisions that could
      in effect prohibit the creation of a security interest in such contracts.

         (l) Upon any executive officer of Grantor obtaining actual knowledge
      thereof, Grantor will promptly notify Lender in writing of any event that
      materially adversely affects the value of any material Intellectual
      Property Collateral, the ability of Grantor to dispose of any material
      Intellectual Property Collateral of the rights and remedies of Lender in
      relation thereto, including the levy of any legal process against any of
      the Intellectual Property Collateral.

      4. Lender's Rights. Lender shall have the right, but not the obligation,
to take, at Grantor's sole expense, any actions that Grantor is required under
this IP Agreement to take but which Grantor fails to take, after fifteen (15)
days' notice to Grantor. Grantor shall reimburse and indemnify Lender for all
reasonable costs and reasonable expenses incurred in the reasonable exercise of
its rights under this section 4.

      5. Inspection Rights. Grantor hereby grants to Lender and its employees,
representatives and agents the right to visit, during reasonable hours upon
prior reasonable written notice to Grantor, any of Grantee's plants and
facilities that manufacture, install or store products (or that have done so
during the prior six-month period) that are sold utilizing any of the
Intellectual Property Collateral, and to inspect the products and quality
control records relating thereto upon reasonable written notice to Grantor and
as often as may be reasonably requested, but not more than once in every six (6)
months; provided, however, nothing herein shall entitle Lender access to
Grantor's trade secrets and other proprietary information.

      6. Further Assurances; Attorney in Fact.

         (a) On a continuing basis, Grantor will, subject to any prior licenses,
encumbrances and restrictions and prospective licenses, make, execute,
acknowledge and deliver, and file and record in the proper filing and recording
places in the United States, all such instruments, including appropriate
financing and continuation statements and collateral agreements and filings with
the United States Patent and Trademarks Office and the Register of Copyrights,
and take all such action as may reasonably be deemed necessary or advisable, or
as requested by Lender, to perfect Lender's security interest in all Copyrights,
Patents, Trademarks, and Mask Works and otherwise to carry out the intent and
purposes of this IP Agreement, or for assuring and confirming to Lender the
grant or perfection of a security interest in all Intellectual Property
Collateral.

         (b) Grantor hereby irrevocably appoints Lender as Grantor's
attorney-in-fact, with fill authority in the place and stead of Grantor and in
the name of Grantor, Lender or otherwise, from time to time in Lender's

                                       -3-
<PAGE>

discretion, upon Grantor's failure or inability to do so, to take any action and
to execute any instrument which Lender may deem necessary or advisable to
accomplish the purposes of this IP Agreement, including:

                  (i) To modify, in its sole discretion, this IP Agreement
      without first obtaining Grantor's approval of or signature to such
      modification by amending Exhibit A, Exhibit B, Exhibit C, and Exhibit D
      hereof, as appropriate, to include reference to any right, title or
      interest in any Copyrights, Patents, Trademarks or Mask Works acquired by
      Grantor after the execution hereof or so delete any reference to any
      right, title or interest in any Copyrights, Patents, Trademarks, or Mask
      Works in which Grantor no longer has or claims any right, title or
      interest; and

                  (ii) To file, in its sole discretion, one or more financing or
      continuation statements and amendments thereto, relative to any of the
      Intellectual Property Collateral without the signature of Grantor where
      permitted by law.

      7. Events of Default. The occurrence of any of the following shall
constitute an Event of Default under this IP Agreement:

            (a) An Event of Default occurs under the Loan Agreement; or any
      document from Grantor to Lender; or

            (b) Grantor breaches any warranty or agreement made by Grantor in
      this IP Agreement.

      8. Remedies. Upon the occurrence and continuance of an Event of Default,
Lender shall have the right to exercise all the remedies of a secured party
under the Massachusetts Uniform Commercial Code, including without limitation
the right to require Grantor to assemble the Intellectual Property Collateral
and any tangible property in which Lender has a security interest and to make it
available to Lender at a place designated by Lender. Lender shall have a
nonexclusive, royalty free license to use the Copyrights, Patents, Trademarks,
and Mask Works to the extent reasonably necessary to permit Lender to exercise
its rights and remedies upon the occurrence of an Event of Default. Grantor will
pay any expenses (including reasonable attorney's fees) incurred by Lender in
connection with the exercise of any of Lender's rights hereunder, including
without limitation any expense incurred in disposing of the Intellectual
Property Collateral. All of Lender's rights and remedies with respect to the
Intellectual Property Collateral shall be cumulative.

      9. Indemnity. Grantor agrees to defend, indemnify and hold harmless Lender
and its officers, employees, and agents against: (a) all obligations, demands,
claims, and liabilities claimed or asserted by any other party in connection
with the transactions contemplated by this IP Agreement, and (b) all losses or
expenses in any way suffered, incurred, or paid by Lender as a result of or in
anyway arising out of, following or consequential to transactions between Lender
and Grantor, whether under this IP Agreement or otherwise (including without
limitation, reasonable attorneys fees and reasonable expenses), except for
losses arising from or out of Lender's gross negligence or willful misconduct.

      10. Reassignment. At such time as Grantor shall completely satisfy all of
the obligations seemed hereunder, Lender shall execute and deliver to Grantor
all deeds, assignments, and other instruments as may be necessary or proper to
reinvest in Grantor full title to the property assigned hereunder, free and
clear of all liens granted hereunder (including duly executed UCC-3 termination
statements under the Code), subject to any disposition thereof which may have
been made by Lender pursuant hereto. In the case of United States patents,
trademarks or copyrights, Lender shall execute and deliver to Grantor a release
in the form attached hereto as Exhibit E.

      11. Course of Dealing, No course of dealing, nor any failure to exercise,
nor any delay in exercising any right, power or privilege hereunder shall
operate as a waiver thereof.

      12. Attorney's Fees. If any action relating to this IP Agreement is
brought by either party hereto against the other party, the prevailing party
shall be entitled to recover reasonable attorneys fees, costs and disbursements.

      13. Amendments. This IP Agreement may be amended only by a written
instrument signed by both parties hereto.

                                       -4-
<PAGE>

      14. Counterparts. This IP Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute the same instrument.

      15. Law and Jurisdiction. This IP Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts.
GRANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUIT,
OR PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS
AGREEMENT.

      GRANTOR AND LENDER EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE
LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH
PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

      16. Confidentiality. In handling any confidential information, Lender
shall exercise the same degree of care that it exercises for its own proprietary
information, but disclosure of information may be made: (i) to Lender's
subsidiaries or affiliates in connection with their present or prospective
business relations with Borrower; (ii) to prospective transferees or purchasers
of any interest in the Loans provided, however, Lender shall use commercially
reasonable efforts to obtain from such transferee or purchaser an agreement to
be bound by the terms of this provision; (iii) as required by law, regulation,
subpoena, or other judicial order, (iv) as required in connection with Lender's
examination or audit; and (v) at Lender considers appropriate in exercising
remedies under this Agreement. Confidential information does not include
information that either: (a) is in the public domain or in Lender's possession
when disclosed to Lender, or becomes part of the public domain after disclosure
to Lender; or(b) is diclosed to Lender by a third party, if Lender does not know
that the third party is prohibited from disclosing the information.

      EXECUTED as a sealed instrument under the laws of the Commonwealth of
Massachusetts on the day and year first written above.

                                       GRANTOR:

                                       MERCATOR SOFTWARE, INC.

                                       By: /s/ Gerald E. Klein
                                          --------------------------------------

                                       Name: GERALD E. KLEIN
                                            ------------------------------------

                                       Title: Secretary
                                             -----------------------------------

                                       -5-
<PAGE>

      Exhibit "A" attached to that certain Intellectual Property Security
Agreement dated 6/22, 200l.

                                  EXHIBIT "A"

                                   COPYRIGHTS

                         SCHEDULE A - ISSUED COPYRIGHTS
                         ------------------------------

COPYRIGHT                         REGISTRATION                          DATE OF
DESCRIPTION                          NUMBER                             ISSUANCE
-----------                          ------                             --------

                                 (see Attached)

                   SCHEDULE B - PENDING COPYRIGHT APPLICATIONS
                   -------------------------------------------

                                                                 FIRST DATE
COPYRIGHT         APPLICATION       DATE OF       DATE OF        OF PUBLIC
DESCRIPTION          NUMBER         FILING        CREATION       DISTRIBUTION
-----------          ------         ------        --------       ------------

                                 (see Attached)

SCHEDULE C - UNREGISTERED COPYRIGHTS (Where No Copyright Application is Pending)
--------------------------------------------------------------------------------

                                        DATE AND
                                        RECORDATION
                                        NUMBER OF IP
                                        AGREEMENT WITH
                                        OWNER OR ORIGINAL
                                        GRANTOR IF
                                        AUTHOR OR OWNER
                          FIRST DATE    OF COPYRIGHT        COPYRIGHT IS
COPYRIGHT     DATE OF         OF        IS DIFFERENT        DIFFERENT ROM
DESCRIPTION   CREATION   DISTRIBUTION   FROM GRANTOR           GRANTOR
-----------   --------   ------------   ------------        -------------

Grantor's two (2) main products are "Mercator Commerce Broker" and "Mercator
Enterprise Broker". In addition to the registered copyrights listed in Schedules
A and B, Grantor has rights to unregistered copyrights in substantial portions
of all of its products, including the following: MERCATOR, TRADING PARTNER, KEY
MASTER, ON CALL*EDI, MERCATOR INTEGRATION BROKER, MERCATOR COMMERCE BROKER,
MERCATOR ENTERPRISE BROKER, MERCATOR TRADING PARTNER PC, MERCATOR ASN COMPLETE,
MERCATOR WEB BROKER, MERCATOR DESKTOP and MERCATOR TRADING PARTNER.

                                       -6-
<PAGE>

                                                                     Page 1 of 2

                     Exhibit A (Including Schedules A and B)
                    To Silicon Valley Bank/Mercator Agreement
                                 Mercator, Inc.
       Copyright Report for Registered Copyrights and Pending Applications

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                  BILL                                       FILING                     ISSUE
---------------------------------------------------------------------------------------------------------------------------------
CLIENT   MATTER   COUNTRY         ATTY   STATUS       NAME                   DATE         SERIAL NO     DATE         REG NO
---------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>             <C>    <C>          <C>                    <C>          <C>           <C>          <C>
00992    C0033B   United States   GSW    Registered   KEY/MASTER DATA        1979/06/01   TX3 378-405   1992/09/04   TX3 378-405
                                                      INPUT SOFTWARE

---------------------------------------------------------------------------------------------------------------------------------
00992    C0033C   United States   GSW    Registered   KEY/MASTER             1992/09/08   TX3 377-402   1992/09/08   TX3 377/402
                                                      RELEASE 5.0

---------------------------------------------------------------------------------------------------------------------------------
00992    C0033D   United States   GSW    Registered   KEY/MASTER             1992/09/04   TX3 376-852   1992/09/04   TX3 376-852
                                                      RELEASE 5.1

---------------------------------------------------------------------------------------------------------------------------------
00992    C0033E   United States   GSW    Registered   KEY/MASTER DATA        1979/06/01   TX3-382-262   1992/09/16   TX3-382-262
                                                      INPUT SOFTWARE

---------------------------------------------------------------------------------------------------------------------------------
00992    C0065A   United States   GSW    Registered   Trading Partner        1995/01/26   TX3 996-760   1995/01/26   TX3 996-760
                                                      Mainframe - Original
                                                      Version
---------------------------------------------------------------------------------------------------------------------------------
00992    C0065B   United States   GSW    Registered   Trading Partner        1995/01/26   TX3 996-761   1995/01/26   TX3 996-761
                                                      Mainframe - Version
                                                      2.4
---------------------------------------------------------------------------------------------------------------------------------
00992    C0066A   United States   GSW    Registered   Trading Partner P.C.   1995/01/26   TX3 994-254   1995/01/26   TX3 994-254
                                                      - Original Version

---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                       St. Onge Steward Johnston Reens LLC
<PAGE>

                                                                     Page 2 of 2

                     Exhibit A (Including Schedules A and B)
                    To Silicon Valley Bank/Mercator Agreement
                                 Mercator, Inc.
       Copyright Report for Registered Copyrights and Pending Applications

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                  BILL                                       FILING                     ISSUE
---------------------------------------------------------------------------------------------------------------------------------
CLIENT   MATTER   COUNTRY         ATTY   STATUS       NAME                   DATE         SERIAL NO     DATE         REG NO
---------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>             <C>    <C>          <C>                    <C>          <C>           <C>          <C>
00992    C0066B   United States   GSW    Registered   Trading Partner P.C.   1995/01/26   TX3 980-888   1995/01/26   TX3 980-888
                                                      - Version 4.3

---------------------------------------------------------------------------------------------------------------------------------
00992    C0068A   United States   GSW    Registered   ONCALL * EDI           1995/01/03   TX3 984-430   1995/01/03   TX3 984-430

---------------------------------------------------------------------------------------------------------------------------------
00992    C0076A   United States   GSW    Pending      MERCATOR

---------------------------------------------------------------------------------------------------------------------------------
00992    C0206A   United States   GSW    Registered   HUB BROKERAGE          2000         TXu-912-660   2000/03/13   TXu-912-660
                                                      SYSTEM Version 1.0

---------------------------------------------------------------------------------------------------------------------------------
00992    C0207A   United States   GSW    Registered   FL KIT Version 1.0     2000         TXu-912-661   2000/03/13   TXu-912-661

---------------------------------------------------------------------------------------------------------------------------------
00992    C0208A   United States   GSW    Registered   HUB ENCRYPTION         1999         TXu-912-662   2000/03/13   TXu-912-662
                                                      SOFTWARE Version
                                                      1.0
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                       St Onge Steward Johnston Reens LLC
<PAGE>

Exhibit "B" attached to that certain Intellectual Property Security Agreement
dated June 22, 2001.

                                  EXHIBIT "B"

                                    PATENTS

PATENT
DESCRIPTION   DOCKET NO.   COUNTRY   SERIAL NO.   FILING DATE   STATUS
-----------   ----------   -------   ----------   -----------   ------

NONE

                                      -7-
<PAGE>

Exhibit "C" attached to that certain Intellectual Property Security Agreement
dated June 22, 2001.

                                   EXHIBIT "C"

                                   TRADEMARKS

TRADEMARK
DESCRIPTION   COUNTRY   SERIAL NO.   REG. NO   STATUS
-----------   -------   ----------   -------   ------

                                 (see Attached)

                                      -8-
<PAGE>

                                                                     Page 1 of 3

                                    Exhibit C
                    To Silicon Valley Bank/Mercator Agreement
                                 Mercator, Inc.
     U.S. Trademark Report for Issued Rsgistrations and Pending Applications

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                  BILL                                              FILING                    ISSUE
------------------------------------------------------------------------------------------------------------------------------------
CLIENT   MATTER   COUNTRY         ATTY   CLASS   STATUS       NAME                  DATE         SERIAL NO    DATE         REG NO
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>             <C>    <C>     <C>          <C>                   <C>          <C>          <C>          <C>
00992    T0001A   United States   GSW    TMK     Registered   TSI (BLOCK LETTERS)   1986/04/02   73/591,175   1990/11/13   1,622,107

------------------------------------------------------------------------------------------------------------------------------------
00992    T0015A   United States   GSW    TMK     Registered   KEY/MASTER            1975/09/ll   73/062,738   1976/12/14   1,054,242

------------------------------------------------------------------------------------------------------------------------------------
00992    TOO20A   United States   GSW    TMK     Registered   TASK/MASTER           1971/01/20   72/381,499   1972/10/24   945,062

------------------------------------------------------------------------------------------------------------------------------------
00992    TOO29A   United States   GSW    TMK     Registered   TRADING PARTNER       1989/12/18   74/011,828   1991/10/15   1,660,560

------------------------------------------------------------------------------------------------------------------------------------
00992    T0030B   United States   GSW    TMK     Registered   EASYPATH              1993/03/19   74/369,22O   1994/08/02   1,847,603

------------------------------------------------------------------------------------------------------------------------------------
00992    T0031A   United States   GSW    TMK     Registered   EASYLOGIC             1990/05/18   74/060,535   1991/05/14   1,644,296

------------------------------------------------------------------------------------------------------------------------------------
00992    T0032A   United States   GSW    TMK     Registered   TRANSLATE             1986/11/14   73/630,402   1988/02/09   1,475,704

------------------------------------------------------------------------------------------------------------------------------------
O0992    T0055A   United States   GSW    TMK     Registered   TRADING PARTNER       1989/12/11   74/009,319   1990/10/02   1,615,543

------------------------------------------------------------------------------------------------------------------------------------
00992    T0060A   United States   GSW    TMK     Registered   MERCATOR (Class 9)    l991/12/13   74/229,939   1994/04/05   1,829,798

------------------------------------------------------------------------------------------------------------------------------------
00992    T0060B   United States   GSW    TMK     Registered   MERCATOR (Class 9)    1998/06/04   75/496,348   1999/09/28   2,281,097

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                       St Onge Steward Johnston Reens LLC
<PAGE>

                                                                     Page 2 of 3

                                    Exhibit C
                    To Silicon Valley Bank/Mercator Agreement
                                 Mercator, Inc.
     U.S. Trademark Report for Issued Registrations and Pending Applications

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                  BILL                                              FILING                    ISSUE
------------------------------------------------------------------------------------------------------------------------------------
CLIENT   MATTER   COUNTRY         ATTY   CLASS   STATUS       NAME                  DATE         SERIAL NO    DATE         REG NO
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>             <C>    <C>     <C>          <C>                   <C>          <C>          <C>          <C>
00992    T0060C   United States   GSW    TSM     Registered   MERCATOR (Class 42)   1998/07/06   75/513,974   1999/08/31   2,274,277

------------------------------------------------------------------------------------------------------------------------------------
00992    T0060D   United States   GSW    TSM     Registered   MERCATOR (Class 41)   1998/07/08   75/515,072   1999/08/31   2,274,290

------------------------------------------------------------------------------------------------------------------------------------
00992    T0079A   United States   GSW    TMK     Registered   TSI SOFT and Design   1996/08/19   75/152,032   1999/02/02   2,221,935

------------------------------------------------------------------------------------------------------------------------------------
00992    T0079C   United States   GSW    TSM     Pending      TSI SOFT and Design   1997/10/27   75/379,849

------------------------------------------------------------------------------------------------------------------------------------
00992    T0086A   United States   GSW    TSM     Registered   BUSINESSLINK          1997/07/28   75/332,021   1998/10/06   2,192,582

------------------------------------------------------------------------------------------------------------------------------------
00992    T0135A   United States   GSW    TMK     Suspended    M-SHAPED PAPER        2000/01/13   75/896,267
                                                              AIRPLANE DESIGN

------------------------------------------------------------------------------------------------------------------------------------
00992    T0135B   United States   GSW    TSM     Allowed      M-SHAPED PAPER        2000/01/13   75/896,266
                                                              AIRPLANE DESIGN

------------------------------------------------------------------------------------------------------------------------------------
00992    T0135C   United States   GSW    TSM     Allowed      M-SHAPED PAPER        2000/01/13   75/896,265
                                                              AIRPLANE DESIGN

------------------------------------------------------------------------------------------------------------------------------------
00992    T0136A   United States   GSW    TMK     Suspended    THE E-BUSINESS        2000/02/15   75/919,983
                                                              TRANSFORMATION
                                                              COMPANY
------------------------------------------------------------------------------------------------------------------------------------
00992    T0136B   United States   GSW    TSM     SUSPENDED    THE E-BUSINESS        2000/02/156  75/919,982
                                                              TRANSFORMATION
                                                              COMPANY
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                       St Onge Steward Johnston Reens LLC
<PAGE>

                                                                     Page 3 of 3

                                    Exhibit C
                    To Silicon Valley Bank/Mercator Agreement
                                 Mercator, Inc.
     U.S. Trademark Report for Issued Rsgistrations and Pending Applications

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                  BILL                                              FILING                    ISSUE
------------------------------------------------------------------------------------------------------------------------------------
CLIENT   MATTER   COUNTRY         ATTY   CLASS   STATUS       NAME                  DATE         SERIAL NO    DATE         REG NO
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>             <C>    <C>     <C>          <C>                   <C>          <C>          <C>          <C>
00992    T0136C   United States   GSW    TSM     Suspended    THE E-BUSINESS        2000/02/15   75/919,981
                                                              TRANSFORMATION
                                                              COMPANY
------------------------------------------------------------------------------------------------------------------------------------
00992    T0156A   United States   GSW    TMK     Published    MYMERCATOR            2000/06/07   76/064,783

------------------------------------------------------------------------------------------------------------------------------------
00992    T0156B   United States   GSW    TSM     Published    MYMERCATOR            2000/06/07   76/064,784

------------------------------------------------------------------------------------------------------------------------------------
00992    T0156C   United States   GSW    TSM     Published    MYMERCATOR            2000/06/07   76/064,782

------------------------------------------------------------------------------------------------------------------------------------
00992    T0162A   United States   GSW    TMK     Published    MYMERCATOR.COM        2000/06/07   76/064,781

------------------------------------------------------------------------------------------------------------------------------------
00992    T0162B   United States   GSW    TSM     Published    MYMERCATOR.COM        2000/06/07   76/064,780

------------------------------------------------------------------------------------------------------------------------------------
00992    T0162C   United States   GSW    TSM     Published    MYMERCATOR.COM        2000/06/07   76/064,779

------------------------------------------------------------------------------------------------------------------------------------
00992    T0163A   United States   GSW    TMK     Suspended    JBUSINESS             1998/02/25   75/439,911

------------------------------------------------------------------------------------------------------------------------------------
00992    T0164A   United States   GSW    TMK     Registered   NOVERA EPIC           1996/11/14   75/197,621   1998/06/23   2,168,474

------------------------------------------------------------------------------------------------------------------------------------
00992    T0166A   United States   GSW    TMK     Registered   NOVERA                1996/06/13   75,118,134   1997/09/12   2,120,543

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                       St Onge Steward Johnston Reens LLC
<PAGE>

Exhibit "D" attached to that certain Intellectual Property Security Agreement
dated 6/22, 2001.

                                   EXHIBIT "D"

                                   MASK WORKS

MASK WORK
DESCRIPTION     COUNTRY         SERIAL NO.      REG. NO         STATUS
-----------     -------         ----------      -------         ------

NONE

640210.3

                                      -9-
<PAGE>

                             Trademark Applications
                            Continuation of Item 4A

--------------------------------------------------------------------------------
Mark                                        Filing Date            Applications
--------------------------------------------------------------------------------
TSI Soft and Design                          10/27/97               75/379,849
--------------------------------------------------------------------------------
M-Shaped Paper Airplane Design                1/13/00               75/896,267
--------------------------------------------------------------------------------
M-Shaped Paper Airplane Design                1/13/00               75/896,266
--------------------------------------------------------------------------------
M-Shaped Paper Airplane Design                1/13/00               75/896,265
--------------------------------------------------------------------------------
The E-Business Transformation Company         2/15/00               75/919,983
--------------------------------------------------------------------------------
The E-Business Transformation Company         2/15/00               75/919,982
--------------------------------------------------------------------------------
The E-Business Transformation Company         2/15/00               75/919,981
--------------------------------------------------------------------------------
Mymercator                                    6/7/00                76/064,783
--------------------------------------------------------------------------------
Mymercator                                    6/7/00                76/064,784
--------------------------------------------------------------------------------
Mymercator                                    6/7/00                76,064,782
--------------------------------------------------------------------------------
Mymercator.com                                6/7/00                76/064,781
--------------------------------------------------------------------------------
Mymercator.com                                6/7/00                76/064,780
--------------------------------------------------------------------------------
Mymercator.com                                6/7/00                76/064,779
--------------------------------------------------------------------------------
Jbusiness                                     2/25/98               75/439,911
--------------------------------------------------------------------------------

                                       2
<PAGE>

Form PTO-1594      RECORDATION FORM COVER SHEET      U.S. DEPARTMENT OF COMMERCE
(Rev. 03/01)              TRADEMARKS ONLY       U.S. Patent and Trademark Office
OMB No. 0651-0027 (exp. 5/31/2002)

Tab settings

--------------------------------------------------------------------------------
To the honorable Commissioner of Patents and Trademarks: Please record the
attached original documents or copy thereof.
--------------------------------------------------------------------------------

1. Name of conveying party(ies):

   Mercator Software, Inc.

   |_| Individual(s)                                |_| Association

   |_| General Partnership                          |_| Limited Partnership

   |X| Corporation-State

   |_| Other
             ---------------------------------------------------------------

Additional name(s) of conveying party(ies) attached? Yes |_| No |X|
--------------------------------------------------------------------------------

2. Name and address of receiving party(ies)

   Name: Silicon Valley Bank
         -------------------------------------------------------------------

   Internal
   Address:
            ----------------------------------------------------------------

   Street Address: 40 William Street
                   ---------------------------------------------------------

   City: Wellesley                     State:   MA       Zip:     02481
         ----------------------------         -------         --------------

   |_| Individual(s) citizenship
                                 -------------------------------------------

   |_| Association
                   ---------------------------------------------------------

   |_| General Partnership
                           -------------------------------------------------

   |_| Limited Partnership
                           -------------------------------------------------

   |X| Corporation-State
                         ---------------------------------------------------

   |_| Other
             ---------------------------------------------------------------

   If assignee is not domiciled in the United States, a domestic
   representative designation is attached: |_| Yes |_| No
   (Designations must be a separate document from assignment) Additional name(s)
   & address(es) attached? Yes |_| No |X|
--------------------------------------------------------------------------------

3. Nature of conveyance:

   |_| Assignment                                   |_| Merger

   |X| Security Agreement                           |_| Change of Name

   |_| Other
             ---------------------------------------------------------------

       Execution Date:
                       -----------------------------------------------------
--------------------------------------------------------------------------------

4. Application number(s) or registration number(s):

   A. Trademark Application No.(s)        B. Trademark Registration No.(s)

                  Additional number(s) attached |X| Yes |_| No
--------------------------------------------------------------------------------

5. Name and address of party to whom correspondence concerning document should
be mailed:

Name: Christopher E. Kondracki
      ----------------------------------------------------------------------

Internal Address:
                  ----------------------------------------------------------

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

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

Street Address: 2001 Jefferson Davis, Hwy.,
                ------------------------------------------------------------
  Suite 505
----------------------------------------------------------------------------

City: Arlington                        State:   VA       Zip:   22202
      -------------------------------         -------         --------------
--------------------------------------------------------------------------------

6. Total number of applications and
   registrations involved:............................................. 30
                                                                       -----
--------------------------------------------------------------------------------

7. Total fee (37 CFR 3.41)......................................$   765.00
                                                                ------------

   |X| Enclosed

   |_| Authorized to be charged to deposit account
--------------------------------------------------------------------------------

8. Deposit account number:

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

  (Attach duplicate copy of this page if paying by deposit account)
--------------------------------------------------------------------------------
                             DO NOT USE THIS SPACE
--------------------------------------------------------------------------------

9. Statement and signature.

   To the best of my knowledge and belief, the foregoing information is true and
   correct and any attached copy is a true copy of the original document.

   Christopher E. Kondracki     /s/ Christopher E. Kondracki        6/29/01
   ------------------------     ----------------------------       ---------
    Name of Person Signing                 Signature                  Date

     Total number of pages including cover sheet, attachments, and document: 17
                                                                             --
--------------------------------------------------------------------------------
     Mail documents to be recorded with required cover sheet information to:
              Commissioner of Patent & Trademarks, Box Assignments
                             Washington, D.C. 20231

                                       1
<PAGE>

Fees are effective through June 30, 2002. After that date, check the Copyright
Office Website at www.loc.gov/copyright or call (202) 707-3000 for current fee
information.

                          Do not write above this line.
--------------------------------------------------------------------------------

DOCUMENT COVER SHEET

For Recordation of Documents
UNITED STATES COPYRIGHT OFFICE
--------------------------------------------------------------------------------
DATE OF RECORDATION
(Assigned by Copyright Office)

        Month                              Day                Year
--------------------------------------------------------------------------------

Volume                                    Page
       --------------------------------        ---------------------------------
--------------------------------------------------------------------------------

Volume                                    Page
       --------------------------------        ---------------------------------
--------------------------------------------------------------------------------

FUNDS RECEIVED
               -----------------------------------------------------------------

                              FOR OFFICE USE ONLY
--------------------------------------------------------------------------------
To the Register of Copyrights:

Please record the accompanying original document or copy thereof.

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

1     Name of the party or parties to the document spelled as they appear in the
      document (List up to the first three)

      Mercator Software, Inc.
      --------------------------------------------------------------------------
      Silicon Valley Bank
      --------------------------------------------------------------------------

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

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

2     Date of execution and/or effective date of the accompanying document

         6           22            01
      -----------------------------------
      (month)       (day)        (year)
--------------------------------------------------------------------------------

3     Completeness of document

      |X| Document is complete by its own terms.

      |_| Document is not complete. Record "as is."
--------------------------------------------------------------------------------

4     Description of document

      |_| Transfer of Copyright

      |X| Security Interest

      |_| Change of Name of Owner

      |_| Termination of Transfer(s) [Section 304]

      |_| Shareware

      |_| Life, Identity, Death Statement [Section 302]

      |_| Transfer of Mask Works

      |_| Other
                ----------------------------------------------------------------

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

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

5     Title of first work as given in the document

      TX3 378-405 Key/Master Data
      -----------------------------------

      Input Software
      -----------------------------------

6     Total number of titles in document                  12
                                         ---------------------------------------
--------------------------------------------------------------------------------

7     Amount of fee calculated                          $ 80.00
                               -------------------------------------------------

8     Fee enclosed

      |_| Check

      |_| Money Order

      |X| Fee authorized to be charged to:
      Copyright Office
      Deposit Account number                            DA 076317
                             ---------------------------------------------------

      Account name   Specialized Patent Services
                   ---------------------------------
--------------------------------------------------------------------------------

9     Affirmation:  I hereby affirm to the Copyright Office that the information
      given on this form is a true and correct representation of the
      accompanying document. This affirmation will not suffice as a
      certification of a photocopy signature on the document.

      (Affirmation must be signed even if you are also signing Space 10.)

              /s/ Christopher E. Kondracki
      --------------------------------------------------------------------------
      Signature

                         6/29/01
      --------------------------------------------------------------------------
      Date

      703-415-1555                     703-415-1557
      --------------------------------------------------------------------------
      Phone Number                     Fax Number

10    Certification: Complete this certification in addition to the Affirmation
      if a photocopy of the original signed document is substituted for a
      document bearing the actual signature.

      NOTE: This space may not be used for an official certification.

      I certify under penalty of perjury under the laws of the United States of
      America that the accompanying document is a true copy of the original
      document.

      --------------------------------------------------------------------------
      Signature

      --------------------------------------------------------------------------
      Duly Authorized Agent of:

      --------------------------------------------------------------------------
      Date
--------------------------------------------------------------------------------

Recordation will be mailed in window envelope to this address:

--------------------------------------------------------------------------------
Name

        Christopher E. Kondracki
--------------------------------------------------------------------------------
Number/Street/Apt

        2001 Jefferson Davis, Hwy., Suite 505
--------------------------------------------------------------------------------
City/State/ZIP

        Arlington, VA 22202
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
   YOU MUST:
--------------------------------------------------------------------------------
o  Complete all necessary spaces
o  Sign your Cover Sheet in Space 9
--------------------------------------------------------------------------------
   SEND ALL 3 ELEMENTS TOGETHER:
--------------------------------------------------------------------------------
1. Two copies of the Document Cover Sheet
2. Check/money order payable to Register of Copyrights
3. Document
--------------------------------------------------------------------------------
   MAIL TO:
--------------------------------------------------------------------------------
   Library of Congress, Copyright Office
   Documents Recordation Section, LM-462
   101 Independence Avenue,
   S.E. Washington, D.C. 20559-6000

The recordation fee for the Document Cover Sheet is $50 and $15 for each group
of 10 additional titles as of July 1, 1999.

*Knowingly and willfully falsifying material facts on this form may result in
criminal liability. 18 U.S.C.ss.1001.
June 1999--20,000
WEB REV: June 1999                      [RECYCLE LOGO] PRINTED ON RECYCLED PAPER

                U.S. GOVERNMENT PRINTING OFFICE 1999-454-879/56
<PAGE>

                             Trademark Registrations
                             Continuation of Item 4B

--------------------------------------------------------------------------------
         Mark                              Filing Date             Registrations
--------------------------------------------------------------------------------
TSI (Block Letter)                           04/02/86                1,622,107
--------------------------------------------------------------------------------
Key/Master                                   09/11/75                1,054,242
--------------------------------------------------------------------------------
Task/Master                                   1/20/71                  946,062
--------------------------------------------------------------------------------
Trading Partner                              12/18/89                1,660,560
--------------------------------------------------------------------------------
Easypath                                      3/19/93                1,847,603
--------------------------------------------------------------------------------
Easylogic                                     5/18/90                1,644,296
--------------------------------------------------------------------------------
Translate                                    11/14/86                1,475,704
--------------------------------------------------------------------------------
Trading Partner                              12/11/89                1,615,543
--------------------------------------------------------------------------------
Mercator (Class 9)                           12/13/91                1,829,798
--------------------------------------------------------------------------------
Mercator (Class 9)                            6/4/98                 2,281,097
--------------------------------------------------------------------------------
Mercator (Class 42)                           7/6/98                 2,274,277
--------------------------------------------------------------------------------
Mercator (Class 41)                           7/8/98                 2,274,290
--------------------------------------------------------------------------------
TSI Soft and Design                           8/19/96                2,221,935
--------------------------------------------------------------------------------
Businesslink                                  7/28/97                2,193,582
--------------------------------------------------------------------------------
Novera EPIC                                  11/14/96                2,168,474
--------------------------------------------------------------------------------
Novera                                        6/13/96                2,120,543
--------------------------------------------------------------------------------

                                        3
<PAGE>

The date stamp on this card signifies receipt by the United States Patent &
Trademark Office of the following documents related to: United States Trademark
Application 75/379,849 and others.

1. Trademark Assignment Recordation Form -- 30 Trademarks
2. Trademark Intellectual Property Security Agreement
3. Check in the amount of $765.00

Docket No. 56120/436-WFM                                OIPE JC165
Conveying Party: Mercator Software, Inc.                JUN 29 2001
Receiving Party: Silicon Valley Bank            PATENT & TRADEMARK OFFICE

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

The date stamp on this card signifies receipt by the United States Copyright
Office of the following documents related to: United States Copy Registration
TX3 378-405 and others.

1. Copyright Document Cover Sheet -- 12 Copyrights
2. Intellectual Property Copyright Security Agreement

Docket No. 56120-436, WFM                                 RECEIVED
Conveying Party: Mercator Software, Inc.
Receiving Party: Silicon Valley Bank                    JUL - 2 2001
                                                      COPYRIGHT OFFICE
                                                        PUBLIC OFFICE
<PAGE>

                             PERFECTION CERTIFICATE
                                       OF
                            MERCATOR SOFTWARE, INC.

The undersigned, the Secretary of Mercator Software, Inc., a Delaware
corporation (the "Company"), hereby certifies with reference to the Accounts
Receivable Financing Agreement dated as of 6/22/01 between the Company and
SILICON VALLEY BANK (the "Bank") (terms defined therein being used herein as
therein defined), to the Bank as follows:

1. Names.

      (a) The exact corporate name of the Company as it appears in its
certificate of incorporation, as amended to date, is as follows:

                        Mercator Software, Inc.

      (b) Set forth below is each other corporate name the Company has had since
its organization, together with the date of the relevant change:

                        TSI International Ltd. -- 3/25/85
                        TSI International Software Ltd. -- 9/9/93
                        Mercator Software, Inc. -- 4/3/00

      (c) Set forth below is a description of each change by the Company of its
identity or corporate structure in any way within the past five years together
with the date of the relevant change:

                        SEE ATTACHMENT 1

      (d) The following is a list of all other names (including trade names or
similar appellations) used by the Company or any of its divisions or other
business units at any time during the past five years together with the dates
such names were used:

                        SEE ANSWERS TO 1 (a), (b) and (c)

      (e) The following is a list of all subsidiaries of the Company (whether
wholly owned, or where the Company has a controlling or majority interest):

                        SEE ATTACHMENT 2
<PAGE>

      (f) The State of formation/incorporation of the company is as follows:

                                    Delaware

      (g) The Company's taxpayer identification number is: 06-1132156
                                                           ----------

2. Current Locations.

      (a) The chief executive office of the Company is located at the following
address:

      Mailing Address                   City                         State
      ---------------                   ----                         -----

      45 Danbury Road                  Wilton                          CT

      (b) The following are all the locations where the Company maintains any
books or records relating to any Accounts:

                        Mailing
Name                    Address               City            State
----                    -------               ----            -----

Mercator Software Inc.  45 Danbury Road       Wilton            CT

Meyers Record Center    255 Longbeach Blvd.   Stratford         CT

      (c) The following are all the locations where Equipment and/or Inventory
of the company is located:

                        Mailing
Name                    Address               City            State
----                    -------               ----            -----

Mercator Software, Inc. 45 Danbury Road Wilton CT 06897
Mercator Software, Inc. 3000 Lakeside Drive, Suite 300N, Bannockburn, IL 60015
Mercator Software, Inc. 25 Corporate Drive, Burlington, MA 01803
Mercator Software, Inc. 2424 North Federal Hwy., Suite 250, Boca Raton, FL 33431
Mercator Software, Inc. 11491 Sunset Hills Road, Suite 300, Reston, VA 20190
Mercator Software, Inc. 275 Madison Avenue, 24th Floor, New York, NY 10016

Miscellaneous office equipment in various US and Canadian locations.

      (d) Other persons or entities who have possession or control
(warehousemen, bailee) other than Company:

      None
<PAGE>

      3. Prior Locations. Set forth below is the information required by
subparagraphs (a), (b) and (c) of paragraph 2 with respect to each location or
place of business maintained by the Company at any time during the past five
years:

                                SEE ATTACHMENT 3

      4. No Unusual Transactions. Except as set forth in Schedule 4, all
Accounts have been originated by the Company and all Equipment has been acquired
by the Company in the ordinary course of its business.

      The undersigned hereby acknowledges and agrees that the Bank is relying on
the representations and warranties made herein in connection with a loan
transaction or transactions to be entered into between the undersigned and the
Bank.

      IN WITNESS WHEREOF, I have hereunto set my hand this 22nd day of June,
2001.

                                        MERCATOR SOFTWARE, INC.

                                        By: /s/ Gerald Klein
                                            -----------------------------
                                                  (duly authorized)

                                        Name: /s/ GERALD KLEIN
                                              ---------------------------
                                                       Secretary

640294.1
<PAGE>

                                  ATTACHMENT 1

Company Identity and Corporate Structure:

TSI International Software Ltd. - 9/1/93

            Mercator Software France SARL - 5/98

            SCP Solutions Europe (Holland) - 1/99

            TSI Software GmbH - 3/5/99

            Braid Group Ltd. (Bermuda) - 3/18/99
                  Note: Has since been dissolved

            Novera - Acquired 9/30/99 - Inactive

            TSI International Software (UK)
                  Note: Merged into Mercator UK [Listed below as
                        TSI Software Ltd.(UK)]

            TSI Software Ltd. (UK)

                  Braid, Inc. (US) - Inactive

            TSI Software Ltd. (Hong Kong)

                  Braid Systems PTY (Australia)

                  TSI Software PTE (Singapore)

Mercator Software, Inc. - 4/3/00

            MCTR Software AB (Sweden) - 2000
<PAGE>

                                  ATTACHMENT 2

List of Subsidiaries:

Novera Software, Inc. (US) - Inactive

Mercator International GmbH (Germany)

Mercator Software France SARL

SCP Solutions Europe (Holland)

Mercator Software Ltd. (UK)

      o     Braid, Inc. (US) - Inactive
            MCTR Software AB (Sweden)

Mercator Software (HK)

      o     Braid Systems PTY (Australia)

      o     Mercator Software PTE (Singapore)
<PAGE>

                                  ATTACHMENT 3

Prior locations within the past five years:

1.    Mercator Software, Inc.
      45 Danbury Road.
      Wilton, CT 06897

2.    Mercator Software, Inc.
      3000 Lakeside Drive, Suite 300N
      Bannockburn, IL 60015
      (Current Address)

      2345 Waukegan Road, Suite E100
      Bannockburn, IL 60015

3.    Mercator Software, Inc.
      25 Corporate Drive
      Burlington, MA 01803

4.    Mercator Software, Inc.
      2424 North Federal Hwy., Suite 250
      Boca Raton, FL 33431

5.    Mercator Software, Inc.
      11491 Sunset Hills Road, Suite 300
      Reston, VA 20190

6.    Mercator Software, Inc.
      275 Madison Avenue, 24th Floor
      New York, NY 10016

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