Document:

Exhibit 10.3

SECURITY AGREEMENT

          Agreement
made and entered into August 16, 2007, between Incentra Solutions, Inc. and its
subsidiaries, affiliates (collectively referred to as “SECURED PARTY”) with its
principal office at 1140 Pearl Street, Boulder, CO 80302 and David Condensa,
Bert Condensa, Dave Auerweck, Kevin Hawkins and Terri Marine (hereinafter
collectiely called “DEBTOR”).

1. SECURITY INTEREST GRANTED:

          DEBTOR
hereby pledges, assigns, consigns, transfers, sets over and grants to SECURED
PARTY a security interest in the COLLATERAL hereinafter described to secure the
payment and/or performance of all OBLIGATIONS, as hereinafter defined, of
DEBTOR to SECURED PARTY.

2. COLLATERAL:

          The
COLLATERAL of this Security Agreement is as follows (hereinafter sometimes
collectively referred to as the “COLLATERAL”):

          (a) any and
all right, title and interest of DEBTOR, or any of them, in and to that
California limited liability company known as 3000 Lakeside, LLC, and the
property of any nature, owned by same.

3. OBLIGATIONS:

          The
security interest granted hereby assigns the full, prompt and unconditional
payment to SECURED PARTY, upon the terms and as and when due, of any and all
indebtedness, obligations or liabilities of DEBTOR to SECURED PARTY related to
the obligations of DEBTOR set forth in Section 3 of that First Amendment to
Merger Agreement by and among the parties hereto, among others, of whatever
nature, whether direct or indirect, absolute or contingent, now due or hereafter
to become due, or now existing (all of which are hereinafter referred to as
“OBLIGATIONS”).

4. WARRANTIES:

          DEBTOR
warrants and covenants that:

          (a)
Except for the security interest granted hereby, DEBTOR is and shall be the
lawful owner of the COLLATERAL, which is and will be and remain free and clear
of any adverse liens, encumbrances, security interests, claims, charges, taxes,
levies and/or assessments.

          (b)
DEBTOR shall defend its title to the COLLATERAL against all persons and against
all claims of any kind whatsoever.

          (c)
DEBTOR shall pay, when due, all charges, taxes, assessments and fees which may
now or hereafter be imposed upon the ownership, sale, purchase or possession of
the COLLATERAL; and SECURED PARTY may, but is under no duty to, pay said items
and charge the cost of the same to DEBTOR.

5. BOOKS AND RECORDS; INSPECTION:

          (a)
DEBTOR will keep and maintain such books and records with respect to the
COLLATERAL and with respect to the general business of DEBTOR as SECURED PARTY
may from time to time prescribe in order to enable SECURED PARTY to audit same.

          (b)
DEBTOR shall at all reasonable times, and from time to time, without the
necessity of any prior notice or demand, allow SECURED PARTY by and through any
of its officers, agents, or attorneys, accountants or other representatives, to
examine or inspect the Inventory Collateral wherever the same may be located
and to examine, inspect and make extracts from or copies of DEBTOR’s books and
records respecting any or all of the COLLATERAL.

          (c)
SECURED PARTY shall have the right in its own name or in the name of the DEBTOR
to verify the amount owing from DEBTOR’s customers with regard to the
COLLATERAL.

6. EVENTS OF DEFAULT:

          DEBTOR
shall be in default hereunder upon the occurrence of any of the following:

          (a)
Failure at any time to pay in full and as when due any OBLIGATIONS of DEBTOR to
SECURED PARTY or failure to perform any of the warranties, covenants or provisions
contained or referred to herein or in any instrument evidencing any of the
OBLIGATIONS, or any breach thereof;

          (b)
The making by DEBTOR of any false or misleading representation, warranty, or
statement in connection with

this
Agreement;

          (c)
Subjection by DEBTOR of any of the COLLATERAL to execution or other judicial
process, or the loss, theft, substantial damage, destruction, transfer (other
than in the ordinary course of the DEBTOR’s business) or the encumbrance of any
of the COLLATERAL;

          (d)
Any reduction in the value of the COLLATERAL or any act on the part of the
DEBTOR which to any degree imperils the prospect of full performance or
satisfaction of the OBLIGATIONS of the DEBTOR hereunder;

          (e)
Death, dissolution, termination of existence, insolvency, business failure,
appointment of a receiver of any part of the property of, assignment for the
benefit of creditors by, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against DEBTOR or any guarantor or surety
for DEBTOR’s OBLIGATIONS;

          (f)
A breach by DEBTOR of any term of this or any other Agreement between DEBTOR
and SECURED PARTY;

          (g)
Such change in the financial or other condition of DEBTOR as in the opinion of
SECURED PARTY unreasonably impairs SECURED PARTY’s security or increases its
risks hereunder.

7. RIGHTS AND REMEDIES ON DEFAULT:

          Upon
the occurrence of any event of default, and at any time thereunder, SECURED
PARTY shall have all the rights and remedies of a secured party under the
Uniform Commercial Code, including, without limitation, the following:

          (a)
To declare all OBLIGATIONS of DEBTOR to SECURED PARTY immediately due and
payable; 

          (b)
To make immediate and exclusive possession of the Collateral or any part
thereof, and for that purpose SECURED PARTY may, so far as DEBTOR can give
authority therefore, with or without judicial process, enter upon the premises
on which the Collateral or any part thereof may be situated and remove the same
therefrom;

          (c)
To hold, maintain, preserve and prepare the Collateral for public or private
sale at SECURED PARTY’s sole discretion, until disposed of, or to retain the
Inventory Collateral subject to DEBTOR’s right of redemption in satisfaction of
the DEBTOR’s OBLIGATIONS as provided in the Uniform Commercial Code. SECURED
PARTY may require DEBTOR to assemble the Collateral and make it available to
SECURED PARTY for possession at a place to be designated by SECURED PARTY which
is reasonably convenient to both parties. Unless the Inventory is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market, SECURED PARTY will give DEBTOR reasonable notice of the time
and place of any public sale thereof or of the time after which any private
sale or any other intended disposition thereof is to be made. SECURED PARTY may
be the purchaser at any public or private sale of the Inventory Collateral. The
net proceeds realized upon such disposition, after deduction for the expenses
of retaking, holding, preparing for sale, selling or the like, and the
reasonable attorney’s fees and legal expenses incurred by SECURED PARTY shall
be applied in satisfaction of the OBLIGATIONS secured hereby. SECURED PARTY
will account to DEBTOR for any surplus realized on such disposition and DEBTOR
shall remain liable for any deficiency.

8. MODIFICATION:

          The
security interest granted to SECURED PARTY hereunder shall not supercede; but
will supplement all other agreements signed, or hereafter signed, between the
DEBTOR and SECURED PARTY. The terms of this Security Agreement may not be
changed, varied, modified or altered except by a writing signed by both parties
and specifically referring to this Security Agreement.

9. NON-WAIVER OF RIGHTS:

          No
delay or omission on the part of SECURED PARTY in exercising any of its rights
hereunder, nor the acquiescence in or waiver by SECURED PARTY of a breach of
any term, covenant or condition of this Security Agreement shall be deemed or
construed to operate as a waiver of such rights or acquiescence thereto except
in the specific instance for which given.

10. NOTICES:

          Notices
to either party shall be in writing and shall be delivered personally or by
registered or certified mail, postage prepaid, to the DEBTOR at its address
first set forth herein, and to SECURED PARTY at its office located
________________________      _________________________________ and directed to
the attention of _________________________________.

11. ASSIGNMENT:

          SECURED PARTY
may assign this Agreement and, if so assigned the assignee shall be entitled,
upon notifying the DEBTOR, to full performance by DEBTOR of all of DEBTOR’s
warranties, covenants and agreement hereunder and the assignee shall be
entitled to all of the rights and remedies of SECURED PARTY hereunder. DEBTOR
will not assert

any claims,
defenses or offsets against the assignee that it may have against SECURED
PARTY.

12. FINANCING STATEMENTS:

          DEBTOR
authorizes SECURED PARTY to sign and file financing statements at any time with
respect to any of the COLLATERAL, without the DEBTOR’s signature. At SECURED
PARTY’s request, DEBTOR will join with SECURED PARTY in executing one or more
financing statements pursuant to the Uniform Commercial Code in forms
satisfactory to the SECURED PARTY. DEBTOR will pay all costs and fees for
filing any financing statement wherever SECURED PARTY deems it necessary or
desirable to file same.

13.  TERMINATION:

          This
Agreement shall be a continuing agreement in every respect until such time as
the DEBTOR has paid and/or performed all of its OBLIGATIONS to SECURED PARTY
and has notified SECURED PARTY of its election to terminate this Agreement.

16. GOVERNING LAW:

          The
Law of the State of California shall govern the rights, duties and remedies of
the parties.

          IN
WITNESS WHEREOF, the parties hereto have signed this Agreement the day and year
first above written.

	
 

	
 

	

	
David
 Condensa

	
 

	

	
Bert
 Condensa

	
 

	

	
Kevin
 Hawkins

	
 

	

	
Dave
 Auerweck

	
 

	

	
Terri Marine

	
 

	
Incentra
 Solutions, Inc.

	
 

	
By:

	
 

	
 

	

	
 

	
 

	
Incentra
 Helio Acquisition Corp.

	
 

	
 

	
By:Exhibit 10.4

SECOND AMENDMENT TO

AGREEMENT AND PLAN
OF MERGER

          SECOND AMENDMENT TO AGREEMENT AND PLAN OF MERGER
(this “Second Amendment”) dated as of August ___, 2007, by and among INCENTRA SOLUTIONS, INC., a Nevada
corporation (“Parent”), INCENTRA HELIO
ACQUISITION CORP., a Delaware
corporation and wholly owned subsidiary of Parent (“Merger Sub”), HELIO SOLUTIONS, INC., a California
corporation (the “Company”), and DAVID
CONDENSA, as Shareholders’ Representative. 

RECITALS

          WHEREAS, Parent, Merger Sub, Company
and Shareholders’ Representative are parties to that certain Agreement and Plan
of Merger dated August __, 2007 (the “Merger Agreement”), as amended by that
certain First Amendment to Agreement and Plan of Merger dated as of August __,
2007 ( as amended by the First Amendment, the Merger Agreement). Capitalized
terms not defined herein shall have the meaning set forth in the Merger
Agreement and the First Amendment.

          WHEREAS, the parties desire to
further amend the Merger Agreement on the terms and conditions set forth
herein.

          NOW,
THEREFORE,
in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and any
provisions of the Merger Agreement to the contrary notwithstanding, the parties
hereto intending to be legally bound do hereby agree as follows:

          1.
Net Working Capital Measurement at Closing. The Net Working Capital
measurement date shall be changed from the Closing Date to August 31, 2007 and
the term “Closing Net Working Capital” as used in the Merger Agreement, as
amended hereby, shall mean Net Working Capital of the Company as of August 31,
2007. In the event that as of August 31, 2007, Net Working Capital is less than
$1,800,000, excluding any current assets arising from or related to the
executive life insurance policies, the amount by which Net Working Capital is
less than $1,800,000 will be paid to Incentra by the Helio Shareholders outside
of escrow and not by way of the Escrow Funds, provided that Dave Condensa may
cause the insurance policies to be liquidated, and if the proceeds thereof
remain in the Company, such proceeds shall be included in determining Closing
Net Working Capital and shall reduce the amount of any shortfall that otherwise
would arise. Such payment shall be made to Incentra no later than September 21,
2007. From the Closing Date through August 31, 2007, the Company shall not
unreasonably cause any decrease in Net Working Capital.

          2.
Waiver of Covenants. Parent and Merger Sub acknowledge and accept that
as of Closing, notwithstanding the certificates of the President and Treasurer
of the Company to be delivered at Closing, the Company will not have the
minimum $1,500,000 in Net Working Capital required for closing. Subject to the
provisions of this Second Amendment, Parent and Merger Sub hereby waive, as of
the date hereof and as of Closing, the conditions and covenants set forth in
the Merger Agreement to the extent such conditions or covenants are breached or
not fulfilled as a result of the failure of the Company to deliver $1,500,000
of Net Working Capital.

          3.
Closing; Scope of Amendment. Closing shall occur on August 17, 2007, or
such other date is as agreed upon by the parties, subject to the terms and
conditions of the Merger Agreement. Any provision of the Merger Agreement, as
amended by the First Amendment, inconsistent with the terms of this Second
Amendment is hereby amended. Except as amended hereby, the Merger Agreement and
the First Amendment remain unamended and in full force and effect.

[Signature Pages Follow]

          IN WITNESS WHEREOF, Shareholders, and
Parent have caused this Agreement to be signed by their respective officers
thereunto duly authorized, all as of the date first written above.

	
 

	
 

	
 

	
INCENTRA SOLUTIONS, INC.

	
 

	
 

	
 

	
By: 

	
 

	
 

	

	
 

	
Name: Thomas
 P. Sweeney III

	
 

	
Title: Chief
 Executive Officer

	
 

	
 

	
 

	
INCENTRA HELIO ACQUISITION CORP.

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name: Thomas
 P. Sweeney III

	
 

	
Title: Chief
 Executive Officer

	
 

	
 

	
 

	
HELIO SOLUTIONS, INC.

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name:

	
 

	
Title:

	
 

	
 

	
 

	
SHAREHOLDERS’ REPRESENTATIVE:

	
 

	
 

	

	
 

	
David
 Condensa, solely as Shareholders’ Representative

	
 

	
 

	
 

	
SHAREHOLDERS

	
 

	
 

	

	
 

	
David Condensa

	
 

	
 

	

	
 

	
Bert Condensa

	
 

	
 

	

	
 

	
Dave Auerweck

	
 

	
 

	

	
 

	
Kevin Hawkins

	
 

	
 

	

	
 

	
Terri Marine

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