Document:

GRANT
          OF SECURITY INTEREST IN PATENTS AND TRADEMARKS

        

        THIS
          GRANT OF SECURITY INTEREST (“Grant”),
          dated
          as of July 8, 2005, is executed by Axeda Systems Inc., a Delaware corporation,
          Axeda Systems Operating Company, Inc., a Massachusetts corporation, and
          Axeda
          IP, Inc., a Nevada corporation (collectively, the “Grantor”),
          in
          favor of JMI Equity Fund V, L.P., a Delaware limited partnership, and JMI
          Equity
          Fund V (AI), L.P., a Delaware limited partnership (collectively, the
“Secured
          Party”).

        

        A. Pursuant
          to the Security Agreement dated as of July 8, 2005 (as amended, restated,
          supplemented or otherwise modified from time to time, the “Security
          Agreement”)
          among
          the Grantor and the Secured Party, the terms and provisions of which are
          hereby
          incorporated herein as if fully set forth herein, the Grantor has granted
          a
          security interest to the Secured Party in consideration of the Secured
          Party’s
          agreement to provide loans to Axeda Systems, Inc.

        

        B. The
          Grantor (1) has adopted, used and is using the trademarks reflected in
          the
          trademark registrations and trademark applications in the United States
          Patent
          and Trademark Office more particularly described on Schedule
          1
          annexed
          hereto as part hereof (the “Trademarks”),
          and
          (2) has registered or applied for registration in the United States Patent
          and
          Trademark Office of the patents more particularly described on Schedule
          2
          annexed
          hereto as part hereof (the “Patents”).

        

        C. The
          Grantor wishes to confirm its grant to the Secured Party of a security
          interest
          in all right, title and interest of the Grantor in and to the Trademarks
          and
          Patents, and all proceeds thereof, together with the business as well as
          the
          goodwill of the business symbolized by, or related or pertaining to, the
          Trademarks, and the customer lists and records related to the Trademarks
          and
          Patents and all causes of action which may exist by reason of infringement
          of
          any of the Trademarks and Patents (collectively, the “T&P
          Collateral”),
          to
          secure the payment, performance and observance of the Notes (as that term
          is
          defined in the Security Agreement). 

        

        NOW,
          THEREFORE, for good and valuable consideration, receipt of which is hereby
          acknowledged: 

        

        1. The
          Grantor does hereby further grant to the Secured Party a first priority
          security
          interest in the T&P Collateral to secure the full and prompt payment,
          performance and observance of the Notes. 

        

        2. The
          Grantor agrees to perform, so long as the Security Agreement is in effect
          and an
          Event of Default has occurred and is continuing, all acts reasonably deemed
          necessary or desirable by the Secured Party to permit and assist it, at
          the
          Grantor’s expense, in obtaining and enforcing the Trademarks and Patents that
          are material to the business of the Grantor and any subsidiary taken as
          a whole,
          in any and all countries. Such acts may include, but are not limited to,
          execution of documents and assistance or cooperation in legal proceedings.
          The
          Grantor hereby appoints the Secured Party as the Grantor’s attorney-in-fact to
          execute and file any and all agreements, instruments, documents and papers
          as
          the Secured Party may reasonably determine to be necessary or desirable
          to
          evidence the Secured Party’s security interest in the Trademarks and Patents or
          any other element of the T&P Collateral, all acts of such attorney-in-fact
          being hereby ratified and confirmed. 

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        3. The
          Grantor acknowledges and affirms that the rights and remedies of the Secured
          Party with respect to the security interest in the T&P Collateral granted
          hereby are more fully set forth in the Security Agreement and the rights
          and
          remedies set forth herein are without prejudice to, and are in addition
          to,
          those set forth in the Security Agreement. In the event that any provisions
          of
          this Grant are deemed to conflict with the Security Agreement, the provisions
          of
          the Security Agreement shall govern. 

        

        4. The
          Grantor agrees to execute financing statements or other instruments to
          the
          extent required by the Uniform Commercial Code and in executing such other
          documents or instruments as may be required or deemed necessary by the
          Secured
          Party for purposes of affecting or continuing the Secured Party’s security
          interest in the T&P Collateral. 

        

         

        [REMAINDER
          OF PAGE INTENTIONALLY LEFT BLANK]

        
 

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Grantor has caused this instrument to be executed
          as of the
          day and year first above written. 

        

        
          
            	 	 	 
	 	
                    GRANTOR:

                    

                    AXEDA
                      SYSTEMS INC.

                  
	 
 	 
 	 
 
	 	By:  	/s/ Dale
                    Calder
	 	
                    
Name: Dale
                    Calder
	 	Title:
                    President

          

        
          
            	 	 	 
	 	AXEDA
                    SYSTEMS OPERATING COMPANY, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Dale
                    Calder
	 	
                    
Name: Dale
                    Calder
	 	Title:
                    President

          

        

         

        
          

          
            
              	 	 	 
	 	AXEDA
                      IP, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Dale
                      Calder
	 	
                      
Name: Dale
                      Calder
	 	Title:
                      President

            

        

        
          
            
              	 	 	 
	 	
                      SECURED
                        PARTY:

                      

                      JMI
                        EQUITY
                        FUND V, L.P.

                      By:
                        JMI Associates V, L.L.C.

                      its
                        General Partner

                    
	 
 	 
 	 
 
	 	By:  	/s/ Bradford
                      D. Woloson
	 	
                      
Bradford
                      D. Woloson
	 	Managing
                      Member

            

        

        
          
            	 	 	 
	 	
                    JMI
                      EQUITY
                      FUND V (AI), L.P.

                    By:
                      JMI Associates V, L.L.C.

                    its
                      General Partner

                  
	 
 	 
 	 
 
	 	By:  	/s/ Bradford
                    D. Woloson
	 	
                    
Bradford
                    D. Woloson
	 	Managing
                    Member

          

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        SCHEDULE
          1

        

        TRADEMARKS

        

          
            	
                    Mark

                  	
                    US
                      PTO Registration #

                  
	 	 
	
                    AXEDA

                  	
                    2,648,978

                  
	 	 
	
                    AXEDA

                  	
                    2,704,656

                  

          

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        SCHEDULE
          2

        

        PATENTS

        
          	 	 
	
                   

                  TITLE

                	
                  DATE
                    FILED

                  US
                    PTO SERIAL OR REG NUMBER

                
	
                  REPORTING
                    THE STATE OF AN APPARATUS TO A REMOTE COMPUTER

                	
                  7/28/2000

                  09/627,201

                   

                  Patent
                    Issued as

                  6,757,714

                
	
                  REPORTING
                    THE STATE OF AN APPARATUS TO A REMOTE COMPUTER

                	
                  3/19/04

                  10/805,012

                
	
                  RETRIEVING
                    DATA FROM A SERVER

                	
                  9/22/2000

                  09/667,737

                
	
                  DEVICE
                    REGISTRATION MECHANISM

                	
                  11/20/2000

                  09/716,717

                
	
                  REPORTING
                    THE STATE OF AN

                  APPARATUS
                    TO A REMOTE COMPUTER

                	
                  11/8/2000

                  09/708,384

                
	
                  XML
                    SCRIPTING OF SOAP COMMANDS

                	
                  4/17/2002

                  10/123,960

                
	
                  RETRIEVING
                    DATA FROM A SERVER

                	
                  4/17/2002

                  10/124,181

                
	
                  CONFIGURING
                    A NETWORK GATEWAY

                	
                  4/19/2002

                  10/126,057

                
	
                  SCREEN
                    SHARING

                	
                  06/27/03

                  10/609,009

                
	
                  DISPLAYING
                    INFORMATION OVER MULTIPLE USER INTERFACE (UI) VIEWS

                	
                  08/08/02

                  10/214,939

                
	
                  MAINTAINING
                    INDEPENDENT STATES FOR MULTIPLE WEB BROWSER INSTANCES

                	
                  08/08/03

                  10/637,757

                
	
                  ESTABLISHING
                    A VIRTUAL TUNNEL

                  BETWEEN
                    TWO COMPUTER PROGRAMS

                	
                  2/20/04

                  10/784,138AMENDMENT
        NO. 1 

      TO
        

      SECURITY
        AGREEMENT

      

      THIS
        AMENDMENT NO. 1 to the Security Agreement (the “Amendment”)
        is
        entered into effective as of July 14,
        2005,
        by and among Axeda Systems Inc. a Delaware corporation (the “Company”),
        Axeda
        Systems Operating Company, Inc., a Massachusetts corporation (“ASOC”),
        Axeda
        IP, Inc., a Nevada corporation (the “Subsidiary”),
        and
        JMI Equity Fund V, L.P., a Delaware limited partnership, and JMI Equity Fund
        V
        (AI), L.P., a Delaware limited partnership (collectively, the “Purchasers”).

      

      WHEREAS,
        the Company, ASOC and the Purchasers have entered into that certain Security
        Agreement, dated as of July 8, 2005 (the “Security
        Agreement”).
        

      

      WHEREAS,
        the Company, ASOC, the Subsidiary and the Purchasers desire to amend the
        provisions of the Security Agreement to include the Subsidiary as a “Guarantor”
        and an “Obligor” under the Security Agreement. 

      

      NOW,
        THEREFORE, in consideration of the foregoing and the mutual promises and
        conditions of the Amendment, and for other good and valuable consideration,
        the
        receipt and sufficiency of which are hereby acknowledged, the parties hereto
        agree as follows:

      

      1. Additional
        Guarantor and Obligor.
        The
        Security Agreement is hereby amended to include the Subsidiary as a “Guarantor”
        and an “Obligor” for all purposes under the Security Agreement effective as of
        July 8, 2005, and the Subsidiary hereby consents and agrees to become a party
        to
        the Security Agreement as a “Guarantor” and an “Obligor” and agrees to be bound
        by, and subject to, all of the obligations and liabilities thereunder.

      

      2. Amendment
        of Security Agreement.
        This
        Amendment hereby amends the Security Agreement. Except as explicitly provided
        in
        this Amendment, the Security Agreement will remain unchanged and in full
        force
        and effect. The term “Security Agreement” as used in the Security Agreement and
        all other instruments and agreements executed thereunder shall for all purposes
        refer to the Security Agreement as amended by this Amendment. 

      

      3. Counterparts.
        This
        Amendment may be executed in several counterparts, each of which shall be
        deemed
        an original, but all of which together shall constitute one and the same
        instrument. 

      

      4. Capitalized
        Terms.
        Capitalized terms used but not otherwise defined herein shall have the meaning
        ascribed to them in the Security Agreement. 

      

      5. Continued
        Effect; Conflict of Terms.
        Each of
        the parties hereto hereby confirms that the Security Agreement, except as
        expressly amended by this Amendment, remains in full force and effect. To
        the
        extent there is any conflict between the terms of the Security Agreement
        and
        this Amendment, the terms of this Amendment shall take precedence. 

      

      6. Governing
        Law.
        This
        Amendment shall be governed by and construed under the laws of the Commonwealth
        of Massachusetts, without giving effect to the principles of conflict of
        laws
        thereof. 

      

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
 

      
        
           

        

        
           

          
            

          

        

        
           

          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Amendment effective
        as of
        the day and year first written above. 

       

      
        	 	 	 
	 	
                AXEDA
                  SYSTEMS INC.

              
	 
 	 
 	 
 
	 	By:  	/s/ Dale
                Calder
	 	
                
Name:
Dale
                Calder
	 	Title:
                President

      

       

      
         

        
          	 	 	 
	 	AXEDA SYSTEMS OPERATING COMPANY,
                  INC.
	 
 	 
 	 
 
	 	By:  	/s/ Dale
                  Calder
	 	
                  
Name:
Dale
                  Calder
	 	Title:
                  President

      

      
        
          	 	 	 
	 	AXEDA IP, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Dale
                  Calder
	 	
                  
Name:
Dale
                  Calder
	 	Title:
                  President

        

         

      

      
         

        
          	 	 	 
	 	
                  JMI
                    EQUITY
                    FUND V, L.P.

                  By:
                    JMI Associates V, L.L.C.

                  its
                    General Partner

                
	 
 	 
 	 
 
	 	By:  	/s/ Bradford
                  D. Woloson
	 	
                  
Bradford
                  D. Woloson
	 	Managing
                  Member

      

      
        
          	 	 	 
	 	
                  JMI
                    EQUITY
                    FUND V (AI), L.P.

                  By:
                    JMI Associates V, L.L.C.

                  its
                    General Partner

                
	 
 	 
 	 
 
	 	By:  	/s/ Bradford
                  D. Woloson
	 	
                  
Bradford
                  D. Woloson
	 	Managing
                  Member

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