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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

                              EMPLOYMENT AGREEMENT

        This Employment Agreement (hereinafter referred to as the "Agreement")
is entered into this ______ day of July, 2004 (hereinafter referred to as the
"Effective Date"), between SEDONA Corporation, a Pennsylvania corporation, with
its principal place of business at 1003 West 9th Avenue, second floor, King of
Prussia, PA 19406 (hereinafter referred to as the "Company"), and Alyssa Dver
(hereinafter referred to as "Employee"). The Company and Employee are
collectively referred to in this Agreement as the "Parties".

                                    RECITALS

        WHEREAS, the Company is engaged in developing, marketing, licensing and
selling Customer Relationship Management (CRM) software and services; and

        WHEREAS, Employee has experience expertise, qualifications and skills of
which the Company desires to avail itself and Employee desires to affiliate
herself with the Company to perform such tasks as may be required by the
Company; and

        WHEREAS, the Parties agrees to extend the employment of Employee as Vice
President and Chief Marketing Officer, and Employee accepts employment by the
Company for the period and the terms and conditions hereinafter set forth.

        NOW, THEREFORE, for good and valuable consideration, and the payment of
the compensation and the performance of the duties and responsibilities set
forth herein, the Parties agree as follows:

1       EMPLOYMENT

        1.1     Employee shall be employed by the Company in the capacity of
                Vice President and Chief Marketing Officer and shall have such
                authority and shall perform such key executive duties and
                responsibilities as specified

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

                by the President and Chief Executive Officer of the Company with
                respect to the Company, its subsidiaries, affiliates or
                successors.

2.      TERM

        2.1     The term of this Agreement shall be two (2) years commencing on
                the Effective Date, and thereafter shall continue from
                year-to-year based on the approval of the Parties with said
                approval occurring at least six (6) months prior to the end of
                the original, or the then current renewal term.

3.      COMPENSATION

        3.1     The Company shall pay to Employee and Employee shall accept for
                her services as Vice President and Chief Marketing Officer the
                following compensation:

                3.1.1   An annual salary of one hundred forty thousand dollars
                        ($140,000.00), pro-rated to eighty four thousand dollars
                        ($84,000.00) as Employee currently works twenty four
                        (24) hours per week. Annual salary shall be payable on
                        the normal and customary pay periods as set forth in the
                        Company's employee handbook, dated of October 3, 2000,
                        as amended (hereinafter referred to as the "Employee
                        Handbook"). The Company reserves the right, in its sole
                        discretion, to add, change or delete any of the policies
                        or procedures contained in the Employee Handbook.

                3.1.2   An annual bonus as set forth in the attached Exhibit I

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

4       EXPENSES

        4.1     Employee is authorized to incur reasonable expenses, including,
                but not limited to travel, meals, client entertainment, car
                mileage and incidentals, in accordance with the guidelines of
                the Company's Corporate Business Travel Policy, for promoting
                the business of the Company and in carrying out her duties
                hereunder.

        4.2     Company shall reimburse Employee for such reasonable expenses
                upon the presentation by Employee, not more frequently than
                weekly and not less frequently than monthly, of an itemized
                account of such expenditures. All requests for reimbursement
                shall be made on the Company's Expense Reimbursement Form, and
                must be accompanied by appropriate receipts for all expenses.

5       BENEFITS

        5.1     Employee shall be entitled to all benefits available to all of
                the Company's employees as set forth in the Company's Employee
                Handbook.

6       DUTIES AND RESPONSIBILITIES

        6.1     Employee shall devote her full time and efforts to perform the
                responsibilities and duties assigned to her by the Company's
                President and Chief Executive Officer. The Employees duties may
                be modified or changed from time to time, as mutually agreed
                upon by the Parties.

        6.2     Employee shall be entitled to have investments in other
                enterprises provided, however, that Employee shall not have any
                investments or financial interest in any business enterprise
                which conducts business activities competitive with any business
                activities conducted or planned by the Company now or at any
                time during the term of the Employee's employment hereunder
                (other than an investment of no more than 5% of any class of
                equity securities of a company, the securities of which are
                traded on a national securities exchange).

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

        6.3     In the event that Employee has an investment of more than 5% of
                any class of equity securities of a competitive business
                enterprise whose securities are traded on a national securities
                exchange, Employee shall disclose that information to the
                Company's President and Chief Executive Officer.

        6.4     In fulfilling her responsibilities, Employee shall conduct
                herself consistent with the highest standards of professionalism
                and shall represent the Company and its products and services in
                accordance with existing written warranties, representations and
                instructions provided to Employee by the Company.

        6.5     Employee's authority to obligate the Company on any contract or
                agreement of any kind shall be limited to those contracts or
                agreements for which the Company's President and Chief Executive
                Officer has granted authorization. All Agreements signed by
                Employee shall comply with the Company's policies and procedures
                and be in the best interest of the company.

7       CONFIDENTIALITY AND NONDISCLOSURE

        7.1     Employee shall abide by the terms and conditions of the
                Company's Contract for Ownership and Use of Intellectual
                Property Including Confidential Information, signed by Employee
                on May 1, 2000.

8       TERMINATION

        8.1     The Company may terminate this Agreement for cause, defined as
                follows:

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

                8.1.1   Deliberate disclosure of Company Confidential
                        Information as defined in the Contract for Ownership and
                        Use of Intellectual Property including Confidential
                        Information and the SEDONA Corporation Information
                        Privacy and Security Policy, and the Company Policy
                        Statement Protection of Material, Non Public and Other
                        Confidential Information and Prevention of Insider
                        Trading and Tipping; or

                8.1.2   Conviction of Employee of a felony involving moral
                        turpitude, or of any other law which may reasonably be
                        deemed to cause a detrimental effect upon the Company as
                        a result of mutual association. If the Company separates
                        the Employee for cause, the Company will have not
                        further liability or obligation except to pay the
                        Employee earned and unpaid compensation.

        8.2     The Company may separate the Employee (i) without cause, or (ii)
                should the Employee die or become disabled such that the
                Employee has been unable to perform any of her essential duties
                for ninety (90) days during any year of this Agreement or for
                any period of sixty (60) consecutive days. In the event of such
                separation, Employee shall receive six (6) months salary, a
                pro-rata portion of any bonus earned by Employee and unpaid by
                Company to Employee and all benefits as set forth in Section 5
                in this Agreement for six (6) months.

        8.3     In the event of a termination by either one of the Parties, the
                terminating party shall give thirty (30) days written notice of
                termination to the non-terminating party.

        8.4     In the event of a termination by either one of the Parties, and
                at the Company's sole discretion, Employee shall continue to
                render her services to the Company during the thirty (30) days
                period after notice of termination is given.

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

        8.5     In the event of termination by either one of the Parties, the
                Company shall have the right to bar or otherwise restrict
                Employee's access to the Company's offices immediately upon
                termination, including the absolute right to remove Employee
                from the Company's premises at the time of termination, whether
                or not such termination occurs during business hours.

9       MISCELLANEOUS

        9.1     This Agreement shall be binding upon the Parties, their agents,
                representatives, affiliates, successors and assigns. As used
                herein, "successor" shall include any person, firm, corporation
                or other business entity which at any time, whether by purchase,
                merger or otherwise, directly or indirectly acquires the assets,
                business or stock the Company.

        9.2     This Agreement, including Exhibit I, represents the entire
                Agreement and understanding of the Parties. The provisions of
                this Agreement may not be waived, altered or amended except by
                agreement in writing signed by the Parties. No waiver of breach
                hereof shall constitute a waiver of any subsequent breach, and
                if any provision of this Agreement is determined by a court of
                competent jurisdiction to be invalid, the remaining provisions
                shall remain enforceable.

        9.3     All notices or other communications provided for in this writing
                shall be deemed to have been duly given if delivered personally,
                by certified mail return receipt requested, or by facsimile to
                the address or facsimile number of the receiving party set forth
                in Employee's employment file maintained by the Company (or such
                different address or facsimile number as either party shall have
                specified in writing to the other). Notices personally delivered
                or sent by facsimile shall be effective upon their receipt;
                notices sent by mail shall be effective five (5) days after
                mailing.

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

        9.4     In the event either party is required to initiate arbitration or
                legal action to enforce this Agreement, each party shall bear
                its own costs, including without limitation, all attorney and
                court costs and fees.

        9.5     Except as expressly provided in this Agreement, no remedy
                conferred by any of its provisions is intended to be exclusive
                of any other remedy now or hereafter provided by law, and the
                election of any one or more such available remedies by either of
                the parties shall not constitute a waiver of the right of such
                party to other available remedies.

        9.6     In the event the arbitration tribunal or a court of competent
                jurisdiction should decline to enforce any provision of this
                Agreement, or otherwise determines any provision hereof to be
                invalid or unenforceable, such provision shall be deemed to be
                modified or eliminated as required by the court's order, but all
                remaining provisions shall remain in full force and effect.

        9.7     This Agreement has been made in and its validity, performance
                and effect shall be determined in accordance with the laws of
                the Commonwealth of Pennsylvania.

        9.8     This Agreement shall be construed so that the singular includes
                the plural, and vice versa, the masculine includes the feminine
                and the neuter genders. There shall be no presumption that
                ambiguities shall be construed or interpreted against the
                drafter.

        9.9     The headings, subheadings, and other captions in this Agreement
                are for convenience and reference only and shall not be used in
                interpreting, construing, or enforcing any of the provisions of
                this Agreement.

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[LOGO OF SEDONA CORPORATION]         Employment Agreement           July 7, 2004

        IN WITNESS WHEREOF, the Parties acknowledge that they have read this
Agreement, understand it, agree to be bound by its terms and conditions, and
have caused this Agreement to be executed as of the day and year first above
written.

FOR AND ON BEHALF OF SEDONA CORPORATION      BY:
                                                 -------------------------------
SEDONA CORPORATION
1003 WEST 9TH AVENUE, SECOND FLOOR           NAME:
KING OF PRUSSIA, PA  19406                         -----------------------------

                                             TITLE:
                                                   -----------------------------
                                             DATE:
                                                   -----------------------------


                                             BY:
                                                 -------------------------------
                                             NAME:
                                                   -----------------------------
                                             TITLE:
                                                    ----------------------------
                                             DATE:
                                                   -----------------------------


FOR AND ON BEHALF OF EMPLOYEE                BY:
                                                 -------------------------------
23 NANCY DRIVE
ASHLAND, MA 01721                            NAME:
                                                   -----------------------------
                                             TITLE:
                                                    ----------------------------
                                             DATE:
                                                   -----------------------------

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