Document:

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

                                SECURED TERM NOTE

            FOR VALUE RECEIVED,  INCENTRA SOLUTIONS,  INC., a Nevada Corporation
(the "COMPANY"),  promises to pay to LAURUS MASTER FUND, LTD., c/o M&C Corporate
Services  Limited,  P.O. Box 309 GT, Ugland House,  South Church Street,  George
Town,  Grand Cayman,  Cayman Islands,  Fax:  345-949-8080  (the "HOLDER") or its
registered  assigns or  successors  in  interest,  the sum of One Million  Seven
Hundred  Fifty  Thousand  Dollars  ($1,750,000),  together  with any accrued and
unpaid interest  hereon,  on March 31, 2009 (the "MATURITY  DATE") if not sooner
paid.

            Capitalized  terms used  herein  without  definition  shall have the
meanings ascribed to such terms in that certain  Securities  Purchase  Agreement
dated as of the date  hereof by and  between  the  Company  and the  Holder  (as
amended,   modified  and/or  supplemented  from  time  to  time,  the  "PURCHASE
AGREEMENT").  For the  avoidance of doubt the Company and the Holder  understand
and agree  that this  Secured  Term Note (this  "NOTE")  is being  issued by the
Company together with that certain  Convertible Note referred to in the Purchase
Agreement as part of the same financing transaction.

            The following terms shall apply to this Note:

                                    ARTICLE I
                         CONTRACT RATE AND AMORTIZATION

            1.1 CONTRACT RATE. Subject to Sections 2.2 and 3.9, interest payable
on the outstanding  principal amount of this Note (the "PRINCIPAL AMOUNT") shall
accrue at a rate per  annum  equal to the  "prime  rate"  published  in THE WALL
STREET  JOURNAL from time to time (the "PRIME  RATE"),  plus two percent  (2.0%)
(the "CONTRACT RATE").  The Contract Rate shall be increased or decreased as the
case may be for each  increase or decrease in the Prime Rate in an amount  equal
to such  increase or decrease in the Prime Rate;  each change to be effective as
of the day of the change in the Prime Rate.  The Contract  Rate shall not at any
time be less than nine percent  (9.0%).  Interest shall be (i) calculated on the
basis of a 360 day year, and (ii) payable monthly, in arrears, commencing on May
1, 2006, on the first business day of each consecutive calendar month thereafter
through and including the Maturity Date,  and on the Maturity  Date,  whether by
acceleration or otherwise.

<PAGE>

            1.2 CONTRACT RATE PAYMENTS. The Contract Rate shall be calculated on
the last business day of each calendar month hereafter (other than for increases
or decreases in the Prime Rate which shall be calculated and become effective in
accordance with the terms of Section 1.1) until the Maturity Date.

            1.3  PRINCIPAL  PAYMENTS.   Amortizing  payments  of  the  aggregate
principal  amount  outstanding  under  this  Note at any  time  (the  "PRINCIPAL
AMOUNT") shall be made in cash by the Company on August 1, 2006 and on the first
business day of each  succeeding  month  thereafter  through and  including  the
Maturity  Date  (each,  an  "AMORTIZATION   DATE").   Commencing  on  the  first
Amortization Date, the Company shall make monthly payments to the Holder on each
Amortization  Date, each such payment in the amount of $54,688 together with any
accrued and unpaid interest on such portion of the Principal Amount plus any and
all other  unpaid  amounts  which are then owing under this Note,  the  Purchase
Agreement  and/or  any  other  Related  Agreement  (collectively,  the  "MONTHLY
AMOUNT").  Any outstanding Principal Amount together with any accrued and unpaid
interest  and any and all  other  unpaid  amounts  which  are then  owing by the
Company to the Holder under this Note, the Purchase  Agreement  and/or any other
Related Agreement shall be due and payable on the Maturity Date.

            1.4 OPTIONAL  REDEMPTION  IN CASH.  The Company may prepay this Note
("OPTIONAL  REDEMPTION")  by  paying to the  Holder a sum of money  equal to one
hundred ten percent  (110%) of the  Principal  Amount  outstanding  at such time
together  with  accrued but unpaid  interest  thereon and any and all other sums
due,  accrued or payable to the Holder  arising  under this Note,  the  Purchase
Agreement or any other Related Agreement (the "REDEMPTION  AMOUNT")  outstanding
on the Redemption  Payment Date (as defined below). The Company shall deliver to
the  Holder  a  written  notice  of  redemption  (the  "NOTICE  OF  REDEMPTION")
specifying  the date for  such  Optional  Redemption  (the  "REDEMPTION  PAYMENT
DATE"), which date shall be seven (7) business days after the date of the Notice
of Redemption (the  "REDEMPTION  PERIOD").  On the Redemption  Payment Date, the
Redemption  Amount  must be paid in good funds to the  Holder.  In the event the
Company fails to pay the Redemption Amount on the Redemption Payment Date as set
forth herein, then such Redemption Notice will be null and void.

                                   ARTICLE II
                                EVENTS OF DEFAULT

            2.1 EVENTS OF DEFAULT. The occurrence of any of the following events
set forth in this Section 4.1 shall  constitute  an event of default  ("EVENT OF
DEFAULT") hereunder:

                  (a)  FAILURE  TO PAY.  The  Company  fails to pay when due any
installment of principal,  interest or other fees hereon in accordance herewith,
or the Company fails to pay any of the  obligations of the Company or any of its
Subsidiaries  under the Purchase  Agreement or any Related  Agreement  when due,
and, in any such case, such failure shall continue for a period of five (5) days
following the date upon which any such payment was due.

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<PAGE>

                  (b) BREACH OF COVENANT. The Company or any of its Subsidiaries
breaches  any  covenant  or any  other  term or  condition  of this  Note in any
material respect and such breach, if subject to cure,  continues for a period of
fifteen (15) days after the occurrence thereof.

                  (c)   BREACH   OF   REPRESENTATIONS   AND   WARRANTIES.    Any
representation, warranty or statement made or furnished by the Company or any of
its  Subsidiaries  in this Note,  the Purchase  Agreement  or any other  Related
Agreement  shall at any time be false or misleading  in any material  respect on
the date as of which made or deemed made.

                  (d) DEFAULT  UNDER OTHER  AGREEMENTS.  The  occurrence  of any
default  (or  similar  term)  in the  observance  or  performance  of any  other
agreement or condition relating to any indebtedness or contingent  obligation of
the  Company or any of its  Subsidiaries  (including,  without  limitation,  the
indebtedness  evidenced by (i) the 2006 Security  Agreement and/or any Ancillary
Agreement  referred to in the 2006 Security  Agreement  and/or (ii) that certain
Securities  Purchase  Agreement,  dated as of May 13,  2004,  by and between the
Company and the Purchaser  (as amended,  modified or  supplemented  from time to
time, the "2004 Securities  Purchase  Agreement")  and/or any Related  Agreement
referred to in the 2004 Securities Purchase Agreement,  as amended,  modified or
supplemented  from time to time),  in each case,  beyond the period of grace (if
any),  the effect of which default is to cause,  or permit the holder or holders
of  such  indebtedness  or  beneficiary  or  beneficiaries  of  such  contingent
obligation  to  cause,  such  indebtedness  to become  due  prior to its  stated
maturity or such contingent obligation to become payable;

                  (e) BANKRUPTCY.  The Company or any of its Subsidiaries  shall
(i) apply for,  consent to or suffer to exist the  appointment of, or the taking
of possession by, a receiver,  custodian,  trustee or liquidator of itself or of
all or a substantial  part of its property,  (ii) make a general  assignment for
the benefit of  creditors,  (iii)  commence a  voluntary  case under the federal
bankruptcy laws (as now or hereafter in effect),  (iv) be adjudicated a bankrupt
or  insolvent,  (v) file a petition  seeking to take  advantage of any other law
providing for the relief of debtors, (vi) acquiesce to, without challenge within
ten (10) days of the filing thereof, or failure to have dismissed, within thirty
(30) days,  any petition  filed  against it in any  involuntary  case under such
bankruptcy  laws,  or (vii) take any action for the purpose of effecting  any of
the foregoing;

                  (f) JUDGMENTS.  Attachments or levies in excess of $250,000 in
the aggregate are made upon the Company or any of its  Subsidiary's  assets or a
judgment is rendered  against the  Company's  property  involving a liability of
more than  $250,000  which shall not have been  vacated,  discharged,  stayed or
bonded within ninety (90) days from the entry thereof;

                  (g) INSOLVENCY.  The Company or any of its Subsidiaries  shall
admit in writing its inability, or be generally unable, to pay its debts as they
become due or cease operations of its present business;

                  (h) CHANGE OF CONTROL.  A Change of Control (as defined below)
shall occur with respect to the  Company,  unless  Holder  shall have  expressly
consented to such Change of Control in writing. A "Change of Control" shall mean
any event or circumstance as a result of

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<PAGE>

which (i) any  "Person" or "group" (as such terms are defined in Sections  13(d)
and 14(d) of the Exchange Act, as in effect on the date hereof),  other than the
Holder,  is or becomes the  "beneficial  owner" (as defined in Rules 13(d)-3 and
13(d)-5 under the Exchange  Act),  directly or  indirectly,  of 35% or more on a
fully  diluted  basis of the then  outstanding  voting  equity  interest  of the
Company (other than a "Person" or "group" that  beneficially owns 35% or more of
such  outstanding  voting  equity  interests of the Company on the date hereof),
(ii) the Board of Directors of the Company  shall cease to consist of a majority
of the Company's  board of directors on the date hereof (or directors  appointed
by a majority  of the board of  directors  in effect  immediately  prior to such
appointment)  or  (iii)  the  Company  or  any  of its  Subsidiaries  merges  or
consolidates with, or sells all or substantially all of its assets to, any other
person or entity;

                  (i)  INDICTMENT;  PROCEEDINGS.  The  indictment  or threatened
indictment of the Company or any of its Subsidiaries or any executive officer of
the  Company  or  any  of  its  Subsidiaries  under  any  criminal  statute,  or
commencement or threatened  commencement of criminal or civil proceeding against
the Company or any of its  Subsidiaries or any executive  officer of the Company
or any of its Subsidiaries  pursuant to which statute or proceeding penalties or
remedies  sought or available  include  forfeiture of any of the property of the
Company or any of its Subsidiaries;

                  (j) THE  PURCHASE  AGREEMENT  AND RELATED  AGREEMENTS.  (i) An
Event of Default  shall occur under and as defined in the Purchase  Agreement or
any Related Agreement,  (ii) the Company or any of its Subsidiaries shall breach
any term or provision of the Purchase  Agreement or any other Related  Agreement
in any  material  respect  and  such  breach,  if  capable  of  cure,  continues
unremedied for a period of fifteen (15) days after the occurrence thereof, (iii)
the Company or any of its  Subsidiaries  attempts to terminate,  challenges  the
validity  of, or its  liability  under,  the  Purchase  Agreement or any Related
Agreement,  (iv) any  proceeding  shall be brought to  challenge  the  validity,
binding  effect of the Purchase  Agreement  or any Related  Agreement or (v) the
Purchase  Agreement or any Related  Agreement ceases to be a valid,  binding and
enforceable  obligation of the Company or any of its Subsidiaries (to the extent
such persons or entities are a party thereto);

                  (k) STOP TRADE.  An SEC stop trade order or  Principal  Market
trading  suspension  of the  Common  Stock  shall  be in  effect  for  five  (5)
consecutive days or five (5) days during a period of ten (10) consecutive  days,
excluding  in all cases a  suspension  of all  trading  on a  Principal  Market,
provided  that  the  Company  shall  not have  been  able to cure  such  trading
suspension  within  thirty  (30) days of the  notice  thereof or list the Common
Stock on another Principal Market within sixty (60) days of such notice; or

            2.2  DEFAULT  INTEREST.  Following  the  occurrence  and  during the
continuance of an Event of Default, the Company shall pay additional interest on
this Note in an amount equal to one and one half percent  (1.5%) per month,  and
all  outstanding  obligations  under this Note, the Purchase  Agreement and each
other Related  Agreement,  including unpaid  interest,  shall continue to accrue
interest at such additional interest rate from the date of such Event of Default
until the date such Event of Default is cured or waived.

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<PAGE>

            2.3  DEFAULT  PAYMENT.  Following  the  occurrence  and  during  the
continuance  of an Event of  Default,  the  Holder,  at its  option,  may demand
repayment in full of all  obligations  and  liabilities  owing by Company to the
Holder  under  this  Note,  the  Purchase  Agreement  and/or  any other  Related
Agreement and/or may elect, in addition to all rights and remedies of the Holder
under  the  Purchase   Agreement  and  the  other  Related  Agreements  and  all
obligations and liabilities of the Company under the Purchase  Agreement and the
other  Related  Agreements,  to require  the  Company to make a Default  Payment
("DEFAULT  PAYMENT").  The  Default  Payment  shall  be 125% of the  outstanding
principal amount of the Note, plus accrued but unpaid  interest,  all other fees
then remaining  unpaid,  and all other amounts  payable  hereunder.  The Default
Payment  shall  be  applied  first to any fees  due and  payable  to the  Holder
pursuant  to this  Note,  the  Purchase  Agreement,  and/or  the  other  Related
Agreements, then to accrued and unpaid interest due on this Note and then to the
outstanding principal balance of this Note. The Default Payment shall be due and
payable  immediately  on the date  that the  Holder  has  exercised  its  rights
pursuant to this Section 4.3.

                                   ARTICLE III
                                  MISCELLANEOUS

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

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

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

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

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<PAGE>

            3.5  ASSIGNABILITY.  This Note shall be binding upon the Company and
its successors and assigns, and shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements  of the Purchase  Agreement.  The Company may not assign any of its
obligations under this Note without the prior written consent of the Holder, any
such purported assignment without such consent being null and void.

            3.6 COST OF  COLLECTION.  In case of any Event of Default under this
Note, the Company shall pay the Holder reasonable costs of collection, including
reasonable attorneys' fees.

            3.7 GOVERNING LAW, JURISDICTION AND WAIVER OF JURY TRIAL.

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

                  (b) THE COMPANY  HEREBY  CONSENTS AND AGREES THAT THE STATE OR
FEDERAL COURTS  LOCATED IN THE COUNTY OF NEW YORK,  STATE OF NEW YORK SHALL HAVE
EXCLUSIVE  JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE
COMPANY, ON THE ONE HAND, AND THE HOLDER, ON THE OTHER HAND,  PERTAINING TO THIS
NOTE OR ANY OF THE OTHER RELATED  AGREEMENTS OR TO ANY MATTER  ARISING OUT OF OR
RELATED  TO THIS  NOTE OR ANY OF THE  RELATED  AGREEMENTS;  PROVIDED,  THAT  THE
COMPANY  ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY
A COURT  LOCATED  OUTSIDE  OF THE  COUNTY  OF NEW YORK,  STATE OF NEW YORK;  AND
FURTHER  PROVIDED,  THAT  NOTHING  IN THIS NOTE  SHALL BE DEEMED OR  OPERATE  TO
PRECLUDE THE HOLDER FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
JURISDICTION  TO COLLECT THE  OBLIGATIONS,  TO REALIZE ON THE  COLLATERAL OR ANY
OTHER  SECURITY  FOR THE  OBLIGATIONS,  OR TO ENFORCE A JUDGMENT  OR OTHER COURT
ORDER IN FAVOR OF THE HOLDER.  THE  COMPANY  EXPRESSLY  SUBMITS AND  CONSENTS IN
ADVANCE TO SUCH  JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND THE COMPANY HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF
PERSONAL  JURISDICTION,  IMPROPER  VENUE OR FORUM NON  CONVENIENS.  THE  COMPANY
HEREBY  WAIVES  PERSONAL  SERVICE OF THE SUMMONS,  COMPLAINT  AND OTHER  PROCESS
ISSUED IN ANY SUCH  ACTION OR SUIT AND  AGREES  THAT  SERVICE  OF SUCH  SUMMONS,
COMPLAINT  AND  OTHER  PROCESS  MAY BE  MADE BY  REGISTERED  OR  CERTIFIED  MAIL
ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE  AGREEMENT AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY'S
ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
POSTAGE PREPAID.

                  (c) THE  COMPANY  DESIRES  THAT ITS  DISPUTES BE RESOLVED BY A
JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO

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<PAGE>

ACHIEVE  THE BEST  COMBINATION  OF THE  BENEFITS OF THE  JUDICIAL  SYSTEM AND OF
ARBITRATION,  THE  COMPANY  HERETO  WAIVES  ALL  RIGHTS  TO TRIAL BY JURY IN ANY
ACTION,  SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,  WHETHER ARISING IN
CONTRACT,  TORT, OR OTHERWISE BETWEEN THE HOLDER AND THE COMPANY ARISING OUT OF,
CONNECTED WITH,  RELATED OR INCIDENTAL TO THE RELATIONSHIP  ESTABLISHED  BETWEEN
THEM  IN  CONNECTION  WITH  THIS  NOTE,  ANY  OTHER  RELATED  AGREEMENT  OR  THE
TRANSACTIONS RELATED HERETO OR THERETO.

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

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

            3.10 SECURITY INTEREST AND GUARANTEE.  The Holder has been granted a
security  interest (i) in certain assets of the Company and its  Subsidiaries as
more fully described in the 2004 Master Security Agreement and the 2006 Security
Agreement  and  (ii) in the  equity  interests  of the  Companies'  Subsidiaries
pursuant to the 2006 Stock  Pledge  Agreement.  The  obligations  of the Company
under this Note are guaranteed by certain  Subsidiaries of the Company  pursuant
to the 2006 Subsidiary Guarantee.

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

            5.13 REGISTERED OBLIGATION. This Note is intended to be a registered
obligation within the meaning of Treasury  Regulation Section  1.871-14(c)(1)(i)
and the Company (or its agent) shall  register this Note (and  thereafter  shall
maintain  such  registration)  as to both  principal  and any  stated  interest.
Notwithstanding  any document,  instrument or agreement relating to this Note to
the  contrary,  transfer of this Note (or the right to any payments of principal
or stated  interest  thereunder)  may only be effected by (i)  surrender of this
Note and either the  reissuance by the Company of this Note to the new holder or
the  issuance by the  Company of a new  instrument  to the new  holder,  or (ii)
transfer  through a book entry system  maintained by the Company (or its agent),
within the meaning of Treasury Regulation Section 1.871-14(c)(1)(i)(B).

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

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            IN WITNESS WHEREOF, the Company has caused this Secured Term Note to
be signed in its name effective as of this 31st day of March, 2006.

                                            INCENTRA SOLUTIONS, INC.

                                            By: /s/ Thomas P. Sweeney III
                                                --------------------------------
                                                Name:  Thomas P. Sweeney III
                                                Title: Chief Executive Officer

WITNESS:

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

                                       8THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
      WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
      AMENDED,  OR ANY STATE  SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK
      ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,  OFFERED FOR SALE,
      PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE  REGISTRATION
      STATEMENT  AS TO THIS  WARRANT  UNDER  SAID ACT AND ANY  APPLICABLE  STATE
      SECURITIES  LAWS OR AN  OPINION  OF  COUNSEL  REASONABLY  SATISFACTORY  TO
      INCENTRA SOLUTIONS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

            Right to Purchase up to 417,857 Shares of Common Stock of
                            Incentra Solutions, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                                 Issue Date: March 31, 2006

      INCENTRA  SOLUTIONS,  INC., a corporation  organized under the laws of the
State of Nevada  ("ICNS"),  hereby  certifies that, for value  received,  LAURUS
MASTER FUND, LTD., or assigns (the "Holder"), is entitled,  subject to the terms
set forth below, to purchase from the Company (as defined herein) from and after
the Issue Date of this  Warrant and at any time or from time to time before 5:00
p.m.,  New York  time,  through  the  close of  business  March  31,  2026  (the
"Expiration Date"), up to 417,857 fully paid and nonassessable  shares of Common
Stock (as  hereinafter  defined),  at the applicable  Exercise Price (as defined
below) per share.  The number and  character  of such shares of Common Stock and
the  applicable  Exercise  Price per share are subject to adjustment as provided
herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a) The term "Company" shall include ICNS and any corporation  which
      shall succeed, or assume the obligations of, ICNS hereunder.

            (b) The term "Common Stock" includes (i) the Company's Common Stock,
      par value $0.001 per share;  and (ii) any other  securities  into which or
      for which  any of the  securities  described  in (a) may be  converted  or
      exchanged pursuant to a plan of recapitalization,  reorganization, merger,
      sale of assets or otherwise.

            (c) The term  "Other  Securities"  refers to any stock  (other  than
      Common  Stock) and other  securities  of the  Company or any other  person
      (corporate  or  otherwise)  which the  Holder of this  Warrant at any time
      shall be entitled to receive,  or shall have received,  on the exercise of
      the Warrant, in lieu of or in addition to Common Stock, or

<PAGE>

      which at any time shall be  issuable or shall have been issued in exchange
      for or in  replacement  of Common  Stock or Other  Securities  pursuant to
      Section 4 or otherwise.

            (d) The  "Exercise  Price"  applicable  under this Warrant  shall be
      $0.001.

1. EXERCISE OF WARRANT.

            1.1 NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after the date
hereof,  the Holder shall be entitled to receive,  upon exercise of this Warrant
in whole or in part,  by  delivery  of an  original  or fax copy of an  exercise
notice in the form attached  hereto as Exhibit A (the  "Exercise  Notice") up to
417,857 shares of Common Stock of the Company, subject to adjustment pursuant to
Section 4.

            1.2 FAIR MARKET VALUE. For purposes hereof,  the "Fair Market Value"
of a share of Common Stock as of a particular  date (the  "Determination  Date")
shall mean:

            (a) If the  Company's  Common Stock is traded on the American  Stock
      Exchange  or another  national  exchange  or is quoted on the  National or
      SmallCap  Market of The Nasdaq Stock  Market,  Inc.  ("Nasdaq"),  then the
      closing or last sale price,  respectively,  reported for the last business
      day immediately preceding the Determination Date.

            (b) If the  Company's  Common  Stock is not  traded on the  American
      Stock Exchange or another national exchange or on the Nasdaq but is traded
      on the National Association of Securities Dealers,  Inc.  Over-the-Counter
      Bulletin Board,  then the mean of the average of the closing bid and asked
      prices  reported  for the last  business  day  immediately  preceding  the
      Determination Date.

            (c) Except as provided in clause (d) below, if the Company's  Common
      Stock is not publicly traded,  then as the Holder and the Company agree or
      in the absence of agreement by  arbitration  in accordance  with the rules
      then in effect of the American  Arbitration  Association,  before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided.

            (d)  If  the  Determination  Date  is  the  date  of a  liquidation,
      dissolution  or  winding  up,  or any event  deemed  to be a  liquidation,
      dissolution  or winding up pursuant  to the  Company's  charter,  then all
      amounts to be payable per share to holders of the Common Stock pursuant to
      the charter in the event of such  liquidation,  dissolution or winding up,
      plus all other  amounts to be  payable  per share in respect of the Common
      Stock in liquidation under the charter,  assuming for the purposes of this
      clause  (d) that all of the  shares of Common  Stock  then  issuable  upon
      exercise of the Warrant are outstanding at the Determination Date.

            1.3 COMPANY  ACKNOWLEDGMENT.  The Company  will,  at the time of the
exercise of this Warrant, upon the request of the Holder hereof,  acknowledge in
writing its  continuing  obligation to afford to such Holder any rights to which
such Holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the Holder

                                       2
<PAGE>

shall  fail to make  any  such  request,  such  failure  shall  not  affect  the
continuing obligation of the Company to afford to such Holder any such rights.

            1.4 TRUSTEE FOR WARRANT  HOLDERS.  In the event that a bank or trust
company  shall have been  appointed  as trustee  for the Holder of this  Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of an Warrant agent (as hereinafter  described) and shall accept,  in
its own name for the account of the Company or such  successor  person as may be
entitled  thereto,  all  amounts  otherwise  payable  to  the  Company  or  such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

2. PROCEDURE FOR EXERCISE.

            2.1 DELIVERY OF STOCK CERTIFICATES,  ETC., ON EXERCISE.  The Company
agrees that the shares of Common Stock  purchased  upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of  business  on the date on which  this  Warrant  shall  have been
surrendered and payment made for such shares in accordance herewith.  As soon as
practicable  after the exercise of this  Warrant in full or in part,  and in any
event  within  three (3) business  days  thereafter,  the Company at its expense
(including  the payment by it of any  applicable  issue  taxes) will cause to be
issued in the name of and  delivered  to the  Holder,  or as such  Holder  (upon
payment  by  such  Holder  of any  applicable  transfer  taxes)  may  direct  in
compliance with applicable  securities  laws, a certificate or certificates  for
the number of duly and validly issued,  fully paid and  nonassessable  shares of
Common  Stock (or Other  Securities)  to which such Holder  shall be entitled on
such exercise,  plus, in lieu of any fractional share to which such Holder would
otherwise be entitled,  cash equal to such fraction  multiplied by the then Fair
Market  Value  of one  full  share,  together  with  any  other  stock  or other
securities and property  (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

            2.2  EXERCISE.  (a)  Payment  may be made  either  (i) in cash or by
certified or official  bank check  payable to the order of the Company  equal to
the applicable  aggregate  Exercise Price, (ii) by delivery of this Warrant,  or
shares of Common Stock  and/or  Common Stock  receivable  upon  exercise of this
Warrant in accordance  with Section (b) below,  or (iii) by a combination of any
of the  foregoing  methods,  for the number of Common  Shares  specified in such
Exercise  Notice (as such  exercise  number  shall be  adjusted  to reflect  any
adjustment in the total number of shares of Common Stock  issuable to the Holder
per the  terms  of this  Warrant);  provided,  however,  that if at the  time of
delivery  of an  Exercise  Notice the shares of Common  Stock to be issued  upon
payment of the Exercise Price have been  registered  under the Securities Act of
1933,  as amended  (the  "Securities  Act"),  and are  covered  by an  effective
registration  statement under the Securities Act,  payment of the Exercise Price
may only be made  pursuant  to clause (i) above and may not be made  pursuant to
clause (ii) or (iii) above.  Upon  receipt by the Company of an Exercise  Notice
and proper payment of the aggregate  Exercise Price,  the Holder shall thereupon
be entitled to receive the number of duly authorized, validly issued, fully-paid
and  non-assessable  shares of Common Stock (or Other Securities)  determined as
provided herein.

      (b)  Notwithstanding  any provisions  herein to the contrary,  if the Fair
Market Value of one share of Common Stock is greater than the Exercise Price (at
the date of calculation as set

                                       3
<PAGE>

forth below),  in lieu of exercising this Warrant for cash, the Holder may elect
to receive shares equal to the value (as  determined  below) of this Warrant (or
the  portion  thereof  being  exercised)  by  surrender  of this  Warrant at the
principal  office of the Company  together with the properly  endorsed  Exercise
Notice,  in which event the Company shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

      X=Y   (A-B)
            -----
              A

      Where X = the number of shares of Common Stock to be issued to the Holder

      Y =       the  number of shares of Common  Stock  purchasable  under  this
                Warrant  or,  if  only  a  portion  of  this  Warrant  is  being
                exercised,  the portion of this Warrant being  exercised (at the
                date of such calculation)

      A =       the Fair Market Value of one share of the Company's Common Stock
                (at the date of such calculation)

      B =       the Exercise Price (as adjusted to the date of such calculation)

3. EFFECT OF REORGANIZATION, ETC.; ADJUSTMENT OF EXERCISE PRICE.

            3.1 REORGANIZATION,  CONSOLIDATION, MERGER, ETC. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  Holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  Holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

            3.2  DISSOLUTION.  In the event of any  dissolution  of the  Company
following the transfer of all or substantially  all of its properties or assets,
the Company,  concurrently with any distributions  made to holders of its Common
Stock,  shall at its expense  deliver or cause to be delivered to the Holder the
stock and other  securities  and property  (including  cash,  where  applicable)
receivable  by the Holder of this  Warrant  pursuant to Section  3.1, or, if the
Holder shall so instruct the Company,  to a bank or trust  company  specified by
the Holder and having its  principal  office in New York,  NY as trustee for the
Holder of this Warrant (the "Trustee").

            3.3 CONTINUATION OF TERMS. Upon any  reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the
terms hereof shall be applicable to the shares of

                                       4
<PAGE>

stock and other  securities  and  property  receivable  on the  exercise of this
Warrant after the consummation of such  reorganization,  consolidation or merger
or the effective  date of dissolution  following any such transfer,  as the case
may be,  and  shall be  binding  upon  the  issuer  of any  such  stock or other
securities,  including,  in the case of any such transfer,  the person acquiring
all or substantially all of the properties or assets of the Company,  whether or
not such  person  shall  have  expressly  assumed  the terms of this  Warrant as
provided in Section 4. In the event this Warrant does not continue in full force
and effect after the consummation of the transactions  described in this Section
3, then the Company's securities and property (including cash, where applicable)
receivable  by the Holders of the  Warrant  will be  delivered  to Holder or the
Trustee as contemplated by Section 3.2.

4.  EXTRAORDINARY  EVENTS  REGARDING COMMON STOCK. In the event that the Company
      shall (a) issue  additional  shares of the Common  Stock as a dividend  or
      other  distribution  on  outstanding  Common Stock or any preferred  stock
      issued by the Company,  (b)  subdivide  its  outstanding  shares of Common
      Stock,  or (c) combine its  outstanding  shares of the Common Stock into a
      smaller  number of  shares  of the  Common  Stock  (each of the  preceding
      clauses (a) through (c), inclusive, an "Event"), then, in each such event,
      the number of shares of Common Stock that the Holder shall thereafter,  on
      the exercise hereof as provided in Section 1, be entitled to receive shall
      be increased or decreased to a number determined by multiplying the number
      of shares of Common Stock that would,  immediately prior to such Event, be
      issuable  upon the exercise of this Warrant by a fraction of which (a) the
      numerator is the number of issued and  outstanding  shares of Common Stock
      immediately  after such Event,  and (b) the  denominator  is the number of
      issued and outstanding  shares of Common Stock  immediately  prior to such
      Event.

5. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment or readjustment
      in the  shares of  Common  Stock (or  Other  Securities)  issuable  on the
      exercise of this Warrant,  the Company at its expense will promptly  cause
      its Chief Financial Officer or other appropriate  designee to compute such
      adjustment or  readjustment  in accordance  with the terms of this Warrant
      and prepare a certificate  setting forth such  adjustment or  readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is based,  including  a  statement  of (a) the  consideration  received or
      receivable  by the Company for any  additional  shares of Common Stock (or
      Other  Securities)  issued or sold or deemed to have been  issued or sold,
      (b) the number of shares of Common Stock (or Other Securities) outstanding
      or deemed to be outstanding,  and (c) the Exercise Price and the number of
      shares of Common Stock to be received upon  exercise of this  Warrant,  in
      effect  immediately  prior  to  such  adjustment  or  readjustment  and as
      adjusted  or  readjusted  as provided in this  Warrant.  The Company  will
      forthwith  mail a copy of each  such  certificate  to the  Holder  of this
      Warrant  and any  Warrant  agent of the  Company  (appointed  pursuant  to
      Section 11 hereof).

6. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANT. The Company will
      at all times reserve and keep available,  solely for issuance and delivery
      on the  exercise  of this  Warrant,  shares  of  Common  Stock  (or  Other
      Securities) from time to time issuable on the exercise of this Warrant.

                                       5
<PAGE>

7.  ASSIGNMENT;  EXCHANGE  OF WARRANT.  Subject to  compliance  with  applicable
      securities  laws, this Warrant,  and the rights evidenced  hereby,  may be
      transferred by any registered  holder hereof (a  "Transferor") in whole or
      in  part.  On the  surrender  for  exchange  of  this  Warrant,  with  the
      Transferor's  endorsement  in the form of Exhibit B attached  hereto  (the
      "Transferor  Endorsement  Form") and  together  with  evidence  reasonably
      satisfactory  to the  Company  demonstrating  compliance  with  applicable
      securities laws, which shall include, without limitation, the provision of
      a legal opinion from the Transferor's counsel that such transfer is exempt
      from the registration requirements of applicable securities laws, and with
      payment by the Transferor of any applicable transfer taxes) will issue and
      deliver to or on the order of the Transferor thereof a new Warrant of like
      tenor, in the name of the Transferor and/or the transferee(s) specified in
      such Transferor  Endorsement  Form (each a  "Transferee"),  calling in the
      aggregate on the face or faces  thereof for the number of shares of Common
      Stock called for on the face or faces of the Warrant so surrendered by the
      Transferor.

8. REPLACEMENT OF WARRANT. On receipt of evidence reasonably satisfactory to the
      Company of the loss, theft, destruction or mutilation of this Warrant and,
      in the case of any such loss,  theft or  destruction  of this Warrant,  on
      delivery of an indemnity agreement or security reasonably  satisfactory in
      form and amount to the Company or, in the case of any such mutilation,  on
      surrender and  cancellation  of this  Warrant,  the Company at its expense
      will execute and deliver, in lieu thereof, a new Warrant of like tenor.

9.  REGISTRATION  RIGHTS.  The Holder of this Warrant has been  granted  certain
      registration  rights by the  Company.  These  registration  rights are set
      forth in the  Registration  Rights  Agreement  dated as of March 31,  2006
      entered  into by the Company and the initial  Holder of this  Warrant,  as
      amended, modified or supplemented from time to time.

10. MAXIMUM  EXERCISE.  Notwithstanding  anything herein to the contrary,  in no
      event shall the Holder be entitled to exercise any portion of this Warrant
      in excess of that portion of this  Warrant upon  exercise of which the sum
      of (1) the  number of shares of  Common  Stock  beneficially  owned by the
      Holder and its Affiliates  (other than shares of Common Stock which may be
      deemed beneficially owned through the ownership of the unexercised portion
      of the  Warrant or the  unexercised  or  unconverted  portion of any other
      security of the Holder subject to a limitation on conversion  analogous to
      the limitations  contained  herein) and (2) the number of shares of Common
      Stock  issuable  upon the  exercise  of the portion of this  Warrant  with
      respect to which the  determination  of this proviso is being made,  would
      result in  beneficial  ownership by the Holder and its  Affiliates  of any
      amount greater than 4.99% of the then  outstanding  shares of Common Stock
      (whether  or not,  at the  time  of  such  exercise,  the  Holder  and its
      Affiliates beneficially own more than 4.99% of the then outstanding shares
      of Common Stock). As used herein, the term "Affiliate" means any person or
      entity that,  directly or indirectly  through one or more  intermediaries,
      controls or is controlled  by or is under common  control with a person or
      entity,  as such terms are used in and construed  under Rule 144 under the
      Securities  Act.  For  purposes  of the  proviso to the  second  preceding
      sentence,  beneficial  ownership  shall be determined  in accordance  with
      Section  13(d) of the  Securities  Exchange Act of 1934,  as amended,  and
      Regulations 13D-G thereunder,  except as otherwise  provided in clause (1)
      of such proviso. The limitations set forth herein (x) may be waived by the
      Holder upon provision

                                       6
<PAGE>

      of no less than  sixty-one  (61) days prior  notice to the Company and (y)
      shall  automatically  become null and void following notice to the Company
      upon the occurrence and during the  continuance of an Event of Default (as
      defined in either Note referred to in the Purchase  Agreement  dated as of
      the date hereof  among the Holder and the Company (as  amended,  modified,
      restated   and/or   supplemented   from  time  to  time,   the   "Purchase
      Agreement")).

      11.  RESTRICTION.  Notwithstanding  anything  to  the  contrary  contained
herein,  the Holder  hereby agrees that during the period on and after the Issue
Date and prior to the date that is the one year  anniversary  of the Issue Date,
it shall not sell any Common Stock acquired upon exercise of this Warrant..

12. WARRANT  AGENT.  The Company  may, by  written  notice to the Holder of this
      Warrant,  appoint an agent for the  purpose of  issuing  Common  Stock (or
      Other  Securities) on the exercise of this Warrant  pursuant to Section 1,
      exchanging this Warrant  pursuant to Section 7, and replacing this Warrant
      pursuant to Section 8, or any of the  foregoing,  and  thereafter any such
      issuance,  exchange or  replacement,  as the case may be, shall be made at
      such office by such agent.

13. TRANSFER  ON THE COMPANY'S  BOOKS.  Until this Warrant is transferred on the
      books of the Company,  the Company may treat the registered  Holder hereof
      as the absolute owner hereof for all purposes,  notwithstanding any notice
      to the contrary.

14. NOTICES,  ETC. All notices and other  communications from the Company to the
      Holder  of this  Warrant  shall be  mailed by first  class  registered  or
      certified  mail,  postage  prepaid,  at  such  address  as may  have  been
      furnished  to the  Company in writing  by such  Holder or,  until any such
      Holder  furnishes  to the Company an address,  then to, and at the address
      of, the last Holder of this Warrant who has so furnished an address to the
      Company.

15. MISCELLANEOUS.  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.  This Warrant shall be governed by and construed in
      accordance with the laws of State of New York without regard to principles
      of conflicts  of laws.  Any action  brought  concerning  the  transactions
      contemplated  by this Warrant shall be brought only in the state courts of
      New York or in the  federal  courts  located  in the  state  of New  York;
      provided,  however, that the Holder may choose to waive this provision and
      bring an action outside the State of New York. The  individuals  executing
      this Warrant on behalf of the Company agree to submit to the  jurisdiction
      of such courts and waive trial by jury. In the event that any provision of
      this Warrant is invalid or unenforceable  under any applicable  statute or
      rule of law, then such provision shall be deemed inoperative to the extent
      that it may  conflict  therewith  and shall be deemed  modified to conform
      with  such  statute  or rule of law.  Any such  provision  which may prove
      invalid or  unenforceable  under any law shall not affect the  validity or
      enforceability  of any other  provision of this  Warrant.  The headings in
      this Warrant are for purposes of  reference  only,  and shall not limit or
      otherwise   affect   any  of  the  terms   hereof.   The   invalidity   or
      unenforceability  of any  provision  hereof  shall  in no way  affect  the
      validity or enforceability of any other provision hereof. The Company

                                       7
<PAGE>

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

16.   PROXY.  For good and  valuable  consideration,  receipt of which is hereby
      acknowledged,  Laurus Master Fund, Ltd.,  hereby appoints the Company (the
      "Proxy  Holder"),  with a mailing  address at 1140 Pearl Street,  Boulder,
      Colorado  80302,  with full power of  substitution,  as proxy, to vote all
      shares of  Common  Stock of the  Company,  now or in the  future  owned by
      Laurus Master Fund,  Ltd., but solely to the extent issuable upon exercise
      of this Warrant (the "Shares").

            This proxy is  irrevocable  and coupled with an  interest.  Upon the
      sale or  other  transfer  of the  Shares,  in  whole  or in  part,  or the
      assignment of this Warrant,  this proxy shall automatically  terminate (x)
      with respect to such sold or  transferred  Shares at the time of such sale
      and/or  transfer,  or (y) with  respect  to all  Shares  in the case of an
      assignment of this Warrant, at the time of such assignment,  in each case,
      without any further action required by any person.

            Laurus  Master Fund,  Ltd.  shall use its best efforts to forward to
      Proxy Holder  within two (2) business days  following  Laurus Master Fund,
      Ltd.'s receipt  thereof,  at the address for Proxy Holder set forth above,
      copies of all materials received by Laurus Master Fund, Ltd. relating,  in
      each case, to the solicitation of the vote of shareholders of the Company.

            This proxy shall  remain in effect with respect to the Shares of the
      Company  during the period  commencing  on the date hereof and  continuing
      until the payment in full of all obligations and liabilities  owing by the
      Company to Laurus Master Fund, Ltd. (as the same may be amended, restated,
      extended or modified from time to time).

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

                                       8
<PAGE>

      IN WITNESS  WHEREOF,  the Company has executed this Warrant as of the date
first written above.

                                          INCENTRA SOLUTIONS, INC.

WITNESS:
                                          By:    /s/ Thomas P. Sweeney III
                                                 -------------------------------
                                          Name:  Thomas P. Sweeney III
                                                 -------------------------------
                                          Title: Chief Executive Officer
---------------------------------                -------------------------------

                                       9

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