EXHIBIT 10.7

[LETTERHEAD OF MERCATOR SOFTWARE]

July 11, 2001

Mr. Gregory G. O'Brien
4498 Antelope Lane
Charlotte, NC 28269

Dear Greg:

      On behalf of Mercator Software, I am pleased to extend an offer of
employment to you as Sr. Vice President of Human Resources. In this role you
will report to me and be a member of the operations committee. I look forward to
bringing you on board as a key member of our executive leadership team.
Following are details of our offer to you.

1. Position. You will start in a full-time position immediately reporting to me.
By signing his letter, you confirm to the Company that you are under no
contractual or other legal obligations that would prohibit you from entering
employment with or performing your duties for the Company.

2. Compensation and Employee Benefits. You will be paid a starting salary at the
annual rate of $165,000, subject to an annual compensation review each year
beginning February 1, 2002, and payable in accordance with the Company's
standard payroll schedule. We will also offer you the opportunity to participate
in the Company's annual incentive bonus plan, under which you will be eligible
to earn, at par, a bonus of 50% of your base salary. The bonus payout is based
upon corporate performance and individual contribution in meeting our
objectives. The payout range is zero to 300%. It will be payable in the first
quarter of 2002, consistent with when other executives at this level are paid.
As an executive of the Company, you will be eligible to participate in the
company-sponsored benefits that the Company makes available to senior executives
(e.g., health insurance, dental insurance, etc.).

3. Options. You will be granted 50,000 options upon joining the company with an
exercise price equal to the fair market value on the date of grant. Upon your
start date, 10,000 options will vest immediately, with the remainder vesting
quarterly over a four year period (see attached vesting schedule).

Upon a change of control of Mercator, 50% of your outstanding, unvested stock
options will vest and become immediately exercisable. A change of control will
be defined as the company being acquired and as a result it is no longer
publicly traded. The options that you acquire shall be subject to the terms and
conditions of the relevant stock option plan and stock option agreement and
other related agreements to be entered into by and between you and the Company.
In the event your employment is terminated by death or disability, options to be
vested within six (6) months of your death or disability will be vested and be
exercisable for the balance of their original term.


Mr. Gregory G. O'Brien
July 10, 2001
Page 2


4. Relocation. Mercator will pay the cost to relocate your household goods using
United Van Lines, our corporate moving company. Mercator will reimburse you for
one 2-3 day house hunting trip for you and your wife and usual travel expenses
of airfare, car rental, hotel and meals. Mercator will pay for one month's
temporary living expenses (e.g., The Homestead in Norwalk) and reimburse you for
your weekly airfare expenses.

5. Vacation. You will be entitled to four weeks vacation, in addition to
scheduled company holidays.

6. Life Insurance. As an executive within the company, you will be entitled to
receive term life insurance as offered in our employee benefit package.

7. Severance. If you are terminated for any reason other than for cause, you
will be entitled to six months' salary payable biweekly. In addition, executive
benefits for medical insurance and other executive perquisites will be provided
for six months.

If there is a change of control of the Company as defined in paragraph 3 herein,
within one year following a change of control of the Company, you may terminate
your employment with the Company if, during that one year period without your
written consent, there has occurred a significant diminution of, or assignment
to you of any duties inconsistent with your title, status, duties or
responsibilities as in effect as of the beginning of your employment with
Mercator. This right of termination can be exercised only if you give written
notice to the Company within thirty (30) days of the occurrence of the
significant diminution of, or assignment to you of any duties inconsistent with
your title, status, duties or responsibilities as in effect as of the beginning
of your employment Mercator which you rely upon to terminate this agreement. If
you elect to terminate your employment pursuant to this provision, upon such
termination Mercator shall pay you twelve (12) months of base salary in
accordance with the Company's usual payroll practices.

8. Outside Activities. While you render services to the Company, you agree that
you will not engage in any other employment, consulting or other business
activity without the written consent of the Company. You also will not assist
any person or entity in competing with the Company, in preparing to compete with
the Company, or in hiring any employees or consultants of the Company.

9. Employment Relationship. The term of your employment with the Company is for
no specific period of time. Your employment with the Company will be "at will,"
meaning that either you or the Company may terminate your employment at any time
and for any reason, with or without cause with 30 days notice. This is the full
and complete agreement between you and the Company on this term. Although your
job duties, title, compensation and benefits, as well as the Company's personnel
policies and procedures, may change from time to time, the "at will" nature of
your employment may only be changed in an express written agreement signed by
you and the Company.


Mr. Gregory G. O'Brien
July 10, 2001
Page 3


10. Withholding Taxes. All amounts of compensation referred to in this letter
are subject to reduction by the Company to meet all applicable withholding and
payroll tax requirements.

11. Conditions of Employment. Upon joining Mercator, you will be required to
sign the enclosed Conditions of Employment agreement that includes
non-disclosure and non-compete clauses which set forth conditions relating to
the security and protection of the Company's trade secrets. In addition, you
will be required to comply with and periodically sign a certification of
compliance with Mercator's Insider Trading Policy.

12. Entire Agreement. This letter supersedes and replaces any prior
understandings or agreements, whether oral or written, between you and the
Company regarding the subject matter described in this letter.

      We hope that you find the foregoing terms acceptable. You may indicate
your agreement with these terms and accept this offer by signing and dating the
line provided below and returning the executed copy to the undersigned. Your
agreed start date is July 30, 2001. As required by law, your employment with the
Company is also contingent upon your providing legal proof of your identify and
authorization to work in the United States.

      Greg, I look forward to working with you and having you as a member of my
executive team.

      If you have any questions, please call me at (203) 563-1201.

                                              Very truly yours,

                                              MERCATOR SOFTWARE, INC.


                                              /s/ Roy C. King

                                              Roy C. King
                                              Executive Officer and Chairman


I have read and accept this employment offer:


/s/ Gregory G. O'Brien                         Date: 7/12/01
- ------------------------------------                 ---------------------------
Signature of Gregory G. O'Brien

July 30, 2001
- ------------------------------------
Agreed start date


                          Attachment - Vesting Schedule

                     --------------------------------------
                     # of Options           Date of Vesting
                     --------------------------------------
                        10,000                  07/30/01
                     --------------------------------------
                         2,500                  10/30/01
                     --------------------------------------
                         2,500                  01/30/02
                     --------------------------------------
                         2,500                  04/30/02
                     --------------------------------------
                         2,500                  07/30/02
                     --------------------------------------
                         2,500                  10/30/02
                     --------------------------------------
                         2,500                  01/30/03
                     --------------------------------------
                         2,500                  04/30/03
                     --------------------------------------
                         2,500                  07/30/03
                     --------------------------------------
                         2,500                  10/30/03
                     --------------------------------------
                         2,500                  01/30/04
                     --------------------------------------
                         2,500                  04/30/04
                     --------------------------------------
                         2,500                  07/30/04
                     --------------------------------------
                         2,500                  10/30/04
                     --------------------------------------
                         2,500                  01/30/05
                     --------------------------------------
                         2,500                  04/30/05
                     --------------------------------------
                         2,500                  07/30/05
                     --------------------------------------