Document:

EMPLOYMENT AGREEMENT

EFFECTIVE DATE: January 2, 1997

PARTIES AND ADDRESSES:

         CorVu Corporation
         7901 Flying Cloud Drive, #100
         Eden Prairie, MN  55344-7903                           (the "Company")

         Alan M. Missroon
         160 Plantation Trace
         Woodstock, GA   30188                                  ("Executive")

RECITALS:

         A. The Company is a Minnesota corporation engaged principally in the
business of developing, manufacturing and selling business software programs.

         B. The Company and Executive desire to enter into an employment
agreement for Executive's services on the terms stated herein. This Employment
Agreement will be referred to as the "Agreement." This Agreement represents the
complete agreement of the parties and supercedes any other understandings or
agreements whether written or oral.

AGREEMENTS:

         In consideration of the mutual promises and undertakings set forth
herein, the Company and Executive agree as follows:

                                    ARTICLE 1
                   Term of Employment, Duties and Supervision

         1.1) Employment; Term. The Company hereby employs Executive as its Vice
President of Marketing pursuant to the terms of this Agreement, and Executive
hereby accepts such employment as of the date hereof. Unless terminated pursuant
to Articles 4 or 5, the term of employment shall continue until June 30, 1997
(the "Term"), and thereafter shall renew automatically for successive terms of
one year each, upon the terms and conditions set forth in this Agreement, as
such may be modified by mutual written agreement of the parties from time to
time; provided, however, that either Executive or the Company may terminate the
employment of Executive during the Term in accordance with, and subject to the
right of Executive to receive payments and other benefits that may be due
pursuant to, Article 5. Each 12-month period commencing July 1 through the
following June 30 during the Term is referred to as an "Employment Year".

         1.2)     Duties; Title.

         (a)      Executive agrees, during his employment, to devote his full
                  time and best efforts to the business of the Company,
                  including, without limitation, the performance of those duties
                  and responsibilities reasonably and customarily associated
                  with the position of the Company's Vice President of
                  Marketing; provided, however, that Executive's duties and
                  responsibilities consistent with Executive's position shall be
                  subject to determination by the Company's Chief Executive
                  Officer. While serving as Vice President of Marketing,
                  Executive shall be granted such powers and authority as are
                  reasonably and customarily associated with the position of
                  Vice President of Marketing. The Executive's duties will
                  consist of, but not be limited to the following:

                  i)       Marketing Budget responsibility, including incurring
                           expenses within established budgets and guidelines,

                  ii)      Balancing and coordinating business shows,
                           advertising, direct mail, seminars and PR news
                           releases,

                  iii)     Directing and managing the public relations,

                  iv)      Briefing industry press and analysts,

                  v)       Analyzing impact and effect of marketing investment,

                  vi)      Developing CorVu white paper and other marketing
                           collateral,

                  vii)     Developing competitive product portfolios and
                           enabling internal awareness,

                  viii)    Developing CorVu briefing papers for business shows
                           and seminars.

         (b)      Executive shall report to, and at all times shall be subject
                  to the direction of, the Company's Chief Executive Officer
                  and/or his designee.

         (c)      Executive's title shall remain subject to the control of the
                  Board of Directors.

         1.3) Additional Requirements. Executive, at all times during his
employment with the Company, shall comply with the Company's reasonable
standards, regulations and policies as determined or set forth by the Board of
Directors from time to time and as applicable to all employees and/or executive
employees of the Company.

         1.4) Outside Activities. The Company acknowledges and agrees that from
time to time Executive may serve as a member of the Board of Directors of one or
more businesses or nonprofit entities other than the Company; provided, however,
that Executive provides the Company's Board of Directors with information about
each proposed directorship, including time required by such directorship,
whether such directorship may involve conflicts of interest with the Company or
its interests, the types of risks which such directorship may involve, and any
other factors Executive or the Board of Directors considers material respecting
such directorship. The Company's Board of Directors shall promptly consider all
submissions by Executive pursuant to this Paragraph 1.4. The Company's Board of
Directors may request in good faith that Executive not accept a particular
directorship, or more than a specific number of directorships, or that Executive
resign from a particular directorship, and Executive agrees to honor such
requests.

         1.5) Prior Agreements. Executive acknowledges and warrants that he is
not subject to any prior agreements that would in any way, restrict the
performance of his duties as Vice President of Marketing for the Company,
including the recruitment and hiring of other employees. If Executive is subject
to agreements which could restrict such activities, these agreements must be
fully disclosed to the Company by providing a copy of such agreements which will
then become a part of this agreement as Appendix 1.

                                    ARTICLE 2
                                  Compensation

         2.1) Compensation. Subject to Paragraph 4.2 and Articles 5, 7, 8 and 9
hereof, Executive shall be paid compensation for the performance of his duties
hereunder as follows:

         (a)      Salary. The Company shall pay Executive a base salary at the
                  rate of $110,000 per year for the Employment Year commencing
                  January 2, 1997. Prior to the close of each Employment Year
                  the Company's Chief Executive Officer shall review Executive's
                  performance for such Employment Year and shall establish
                  Executive's base salary for the next succeeding Employment
                  Year. Executive's salary shall be payable monthly. The Company
                  shall be entitled to deduct or withhold all taxes and charges
                  which the Company may be required to deduct or withhold
                  therefrom.

         (b)      Bonus Compensation. Executive may earn performance bonuses for
                  each Employment Year, based on the following:

                  i)       a bonus of $18,000 paid upon the achievement of
                           Company profits of $750,000 for the fiscal year ended
                           June 30, 1997,

                  ii)      an additional bonus of $18,000 paid upon the
                           achievement of Company profits of $1,200,000 for the
                           fiscal year ended June 30, 1997,

                  iii)     an additional bonus of $18,000 paid upon the
                           achievement of Company profits of $1,500,000 for the
                           fiscal year ended June 30, 1997.

                  Total bonuses of $54,000 which can be earned based on
                  achieving the Company profit goals detailed above are payable
                  on a quarterly basis, provided quarterly profit goals are
                  attained, based on the following formula: for the first
                  quarter ended September 30, 1996- 10% of bonus, for the second
                  quarter ended December 31, 1996- 15% of bonus, for the third
                  quarter ended March 31, 1997- 25% of bonus, for the fourth
                  quarter ended June 30, 1997- remainder of bonus not yet paid.

                  An additional quarterly bonus of $9,000 can be attained based
                  on the performance of duties indicated in Article 1.2 (a).
                  This bonus is subjective in nature and, as a result, will be
                  awarded at the discretion of the Chief Executive Officer.

         (c)      Stock Options. Executive is awarded options to purchase up to
                  100,000 shares of the Company's common stock at a price of
                  $2.85 per share. These options are exercisas follows: 30,000
                  shares after twelve months of employment, 40,000 after twenty
                  four months of employment, 30,000 after thirty six months of
                  employment.

         (d)      No Past Salary or Other Obligations. Executive acknowledges
                  that at the date hereof the Company was not indebted to
                  Executive for any amount, whether arising out of Executive's
                  prior service to the Company or otherwise.

         (e)      Fiscal Year. For purposes of this Agreement the Company's
                  fiscal year is assumed to be June 30.

         2.2) Termination of Compensation. Except as provided in Articles 4, 7,
8 and 9 of this Agreement, the Company's obligation to pay compensation to
Executive under this Article 2 shall terminate at the close of business on the
date on which Executive's employment is terminated; provided, however, that:

         (a)      the Company shall remain liable to pay Executive any amounts
                  due Executive for services rendered prior to such termination
                  date pursuant to Paragraph 2.1(a); and

         (b)      the Company shall calculate Executive's earned bonus
                  compensation pro rata to and including the date of
                  termination; and shall pay Executive any earned bonus within
                  sixty (60) days following the close of the month in which the
                  date of termination occurs, unless otherwise agreed. To the
                  extent portions of such bonus compensation are based on the
                  completion of specific tasks or objectives, and such tasks or
                  objectives have been completed prior to Executive's
                  termination, bonus portions allocable to same shall be paid in
                  full.

                                    ARTICLE 3
                                    Expenses

         3.1) Expenses. During the term of this Agreement, Executive shall be
entitled to prompt reimbursement by the Company for all reasonable, ordinary and
necessary travel, entertainment and other business related expenses incurred by
Executive (in accordance with the policies and procedures established by the
Company from time to time) in the performance of his duties and responsibilities
under this Agreement; provided, however, that Executive shall properly account
for such expenses in accordance with federal, state and local tax requirements
and the Company's policies and procedures.

                                    ARTICLE 4
                                    Benefits

         4.1) Vacations; Holidays. Executive shall be entitled to two weeks paid
vacation during his first Employment Year, three weeks during his second
Employment Year and four weeks for succeeding Employment Years, plus all
holidays in accordance with the Company's policies in effect from time to time.
Executive shall not be entitled to carry unused vacation forward from one
Employment Year to the next. Executive shall not be entitled to compensation in
any form in lieu of use of vacation and/or holiday time off.

         4.2) Compensation During Sickness or Disability.

         (a)      Subject to the remaining provisions of this Paragraph 4.2,
                  Executive shall be entitled to receive the monthly portion of
                  Executive's annual base salary and bonus in accordance with
                  Article 2 hereof for up to ten business days for absences for
                  physical or mental illness or injury during any Employment
                  Year which do not give rise to a determination of Executive's
                  disability pursuant to Paragraph 4.2(b) below.

         (b)      As attendance on the job is agreed by Executive and Company to
                  be an essential function of Executive's position, the parties
                  further agree that in the event of a prolonged absence as
                  defined below the parties agree to the disability payments to
                  Executive as stated in this subparagraph. Subject to Paragraph
                  4.2(j), if, during any Employment Year, Executive is absent
                  from Executive's employment for more than ten (10) business
                  days, plus that number of unused vacation days which Executive
                  may also determine to utilize for absences by reason of
                  physical or mental illness or injury, at any one time or more
                  than forty (40) business days in total, by reason of physical
                  or mental illness or injury, as determined by an examining
                  physician or mental health professional acceptable to the
                  Company, or in the event any other accident or occurrence
                  gives rise to the likelihood of Executive's absence for more
                  than the period of time specified above for reason of physical
                  or mental illness or injury, as determined by the Company or
                  an examining physician or mental health professional
                  acceptable to the Company, Executive shall be deemed disabled
                  for the purposes hereof. In such event, Executive shall be
                  entitled to receive his bonus earned to the date of
                  disability. In addition, Executive shall be entitled to
                  receive fifty percent (50%) of his base salary under Article
                  2, continued payment by the Company of Executive's share of
                  health, life and disability insurance premiums (to the extent
                  such benefits are offered by the Company to its executive
                  employees and subject to the conditions or limitations of such
                  insurance plans) during the first 90 calendar days from the
                  date such disability is determined to have occurred, and,
                  during such period, the Company may discontinue all other
                  payments to or on behalf of Executive under this Agreement.
                  After such 90 calendar day period, the Company shall terminate
                  all payments to Executive. Notwithstanding anything herein to
                  the contrary, such 90 calendar day period shall begin to run
                  from the date such disability is determined to have occurred,
                  only after Executive has utilized all days to which Executive
                  is entitled and which Executive determines to use under
                  Paragraphs 4.1 and 4.2(a).

         (c)      If prior to any termination of Executive's employment under
                  this Paragraph 4.2 Executive is able to resume performance of
                  his duties under this Agreement, and if within ninety (90)
                  days of the resumption of such duties Executive is again
                  absent from his employment by reason of physical or mental
                  illness or injury such subsequent disability period shall be
                  deemed to be a continuation of the immediately preceding
                  disability period, and the disability payments made by the
                  Company to Executive shall be made only for the remainder, if
                  any, of the ninety (90) calendar day income continuation
                  period provided for above, and in no event shall disability
                  payments hereunder be made for a period or periods aggregating
                  more than ninety (90) calendar days in any 12-month period.

         (d)      Any disability compensation payable under this Article 4 shall
                  be reduced by:

                  (i)      any amount which is paid to Executive under any
                           private disability benefit plan or arrangement to
                           which the Company contributes or has contributed;

                  (ii)     any benefits paid or payable to Executive on account
                           of the disability of Executive under any worker's
                           compensation law, occupational disease law, or
                           similar legislation of any state or of the federal
                           government;

                  (iii)    50% of the amount of any related benefit which
                           Executive would be entitled to receive under the
                           Federal Social Security Act as in effect at the time
                           the payment hereunder is made; and

                  (iv)     any benefits paid or payable to Executive under any
                           law of any state or of the federal government now in
                           force or hereafter enacted as compensation, wages or
                           benefits in lieu of wages on account of disability.

         (e)      Subject to a determination by the Company that Executive is
                  capable of returning to part or full-time employment, the
                  determination of the Company being conclusive if made with the
                  advice of a competent physician or mental health professional
                  selected by it, Executive may return to part-time or full-time
                  employment at any time prior to any termination of Executive's
                  employment under this Paragraph 4.2. Following Executive's
                  return to employment:

                  (i)      if Executive returns to full-time employment, his
                           compensation shall be determined as though Executive
                           had not been disabled; or

                  (ii)     if Executive returns to part-time employment,
                           Executive shall be entitled to a reasonable amount of
                           compensation for Executive's services rendered to the
                           Company as determined by a reasonable standard to be
                           set by the Company's Board of Directors.

         (f)      If Executive's employment is terminated, except for the
                  reasons stated in subparagraph (a), (b), (c)(iv) or (v), or
                  (d) of Paragraph 5.1 hereof, while the Company is making
                  disability payments to Executive, Executive shall be entitled
                  to receive the disability payments to which Executive would
                  otherwise be entitled pursuant to the provisions of this
                  Paragraph 4.2.

         (g)      The Company shall comply with all applicable state and federal
                  laws relating to the disability of an employee, including laws
                  regarding reasonable accommodation requirements and laws
                  governing the granting of medical leaves of absence.

         4.3) Life and Health Insurance; Other Benefits. During Executive's
employment, the Company shall provide such benefits to Executive as the Company
provides for its executive officers from time to time, provided that the Company
may exclude Executive from participation in any 401(k) plan which the Company
implements to the extent deemed advisable to ensure the continued qualification
of such plan under applicable tax laws and in lieu thereof compensate Executive
appropriately to make up for his exclusion. Nothing in this Paragraph 4.3 shall
be construed to require the Company to provide or continue to provide Executive
with any benefits, nor shall Company be prohibited from canceling benefits which
it determines to provide or requiring co-payments respecting such benefits at
any time.

                                    ARTICLE 5
                                   Termination

         5.1) Events of Termination. Executive's employment hereunder:

         (a)      May be terminated by mutual written agreement of the parties.

         (b)      Shall terminate immediately upon the death of Executive.

         (c)      May be terminated by the Company upon written notice to
                  Executive for "Cause", which shall mean the following:

                  (i)      Material failure of Executive to (a) faithfully,
                           diligently or competently perform the material
                           duties, requirements and responsibilities of his
                           employment as established pursuant to this Agreement,
                           or (b) take reasonable direction consistent with the
                           position for which he has been employed as described
                           in Article 1 from the Chief Executive Officer or his
                           designee; or

                  (ii)     Failure of Executive to materially comply with the
                           reasonable policies, regulations and directives of
                           the Company as in effect from time to time; or

                  (iii)    Any act or omission on the part of Executive which
                           constitutes a material failure to comply with
                           material provisions of this Agreement; or

                  (iv)     Any act or omission on the part of Executive which is
                           clearly and materially harmful to the reputation or
                           business of the Company, including, but not limited
                           to, conduct which is inconsistent with federal and
                           state laws respecting harassment of, or
                           discrimination against, one or more of the Company's
                           employees; or

                  (v)      Conviction of Executive of, or a guilty or nolo
                           contendere plea by Executive with respect to, any
                           crime punishable as a felony; or any bar against
                           Executive from serving as a director, officer or
                           employee of any firm the securities of which trade
                           publicly.

         (d)      Shall terminate in accordance with the provisions of Paragraph
                  4.2(b) hereof. Nothing in Paragraph 4.2(b) hereof or in this
                  Paragraph 5.1(d) shall limit the right of either party to
                  terminate Executive's employment under any other subparagraph
                  of Paragraph 5.1; provided, however, that if Executive is
                  receiving disability payments under Paragraph 4.2(b) the
                  Company may not terminate this Agreement under Paragraphs
                  5.1(c)(i) or (g).

         (e)      Shall terminate upon Executive's reaching the normal
                  retirement date established by the Company for senior
                  management employees of the Company, but in no event earlier
                  than the compulsory retirement age permitted under federal or
                  similar law for senior management employees.

         (f)      May be terminated by the Company, for any or no reason, on 60
                  days' written notice to Executive; provided that if at the
                  time of such termination "Cause" exists and the written notice
                  specified in subparagraph (c) above is given, then such
                  termination by the Company shall be considered to be pursuant
                  to subparagraph (c) above.

         (g)      May be terminated by Executive, for any or no reason, on 60
                  days' written notice to the Company.

         5.2) Compensation Upon Termination of Executive's Employment. In the
event that Executive's employment with the Company terminates, the following
provisions shall govern as applicable:

         (a)      If termination occurs pursuant to Paragraph 5.1(a) (by mutual
                  written agreement), base salary will be paid for a period of
                  three months after the date of termination if such date occurs
                  within the first year of employment, with an additional one
                  month of base pay added for each year of employment to a
                  maximum of six months. In exchange for such compensation,
                  Executive agrees not to accept a position with another company
                  considered to be in a similar field or business as that of the
                  Company for a period of six months.

         (b)      If termination occurs pursuant to Paragraph 5.1(b) (for
                  death), all benefits shall terminate as of the termination
                  date, and base salary and bonus shall terminate as provided in
                  Paragraph 2.2.

         (c)      If termination occurs pursuant to Paragraph 5.1(c) (for Cause)
                  or (g) (resign for any or no reason), all benefits shall
                  terminate as of the termination date, and base salary and any
                  earned bonus shall be paid to the date of termination as
                  provided in Paragraph 2.2. In addition, Executive agrees not
                  to accept a position with another company considered to be in
                  a similar field or business as that of the Company for a
                  period of six months.

         (d)      If termination occurs pursuant to Paragraph 5.1(d)
                  (disability), the provisions of Paragraph 4.2 shall govern the
                  termination of benefits, base salary and bonus. In addition,
                  Executive agrees not to accept a position with another company
                  considered to be in a similar field or business as that of the
                  Company for a period of six months.

         (e)      If termination occurs pursuant to Paragraph 5.1(e)
                  (retirement), the provisions of Paragraph 5.2(b) shall govern
                  the termination of benefits, base salary and bonus. In
                  addition, Executive agrees not to accept a position with
                  another company considered to be in a similar field or
                  business as that of the Company for a period of six months.

         (f)      If termination occurs pursuant to 5.1(f) (by the Company
                  without Cause) then Executive's base salary will be paid for a
                  period of three months after the date of termination if such
                  date occurs within the first year of employment, with an
                  additional one month of base pay added for each year of
                  employment to a maximum of six months. In exchange for such
                  compensation, Executive agrees not to accept a position with
                  another company considered to be in a similar field or
                  business as that of the Company for a period of six months.

All payments made to Executive under this Paragraph 5.2 shall be reduced by
amounts (i) required to be withheld in accordance with federal, state and local
laws and regulations in effect at the time of payment, or (ii) owed to the
Company by Executive for any amounts advanced, loaned or misappropriated.

         5.3) Continuation of Performance of Services After Notice of
Termination. In the event of termination of employment of Executive under the
notice provisions of Section 5.1(c) or during any period following a
notification of termination of Executive's employment by Company, Company may,
in its sole discretion, determine the date on which Executive is to discontinue
performing services for Company, which date may be any date after the notice is
given and prior to the actual date of termination of Executive's employment.
Nothing in this subparagraph shall be construed to prohibit Company from
requiring that Executive continue to perform Executive's duties under this
Agreement prior to the actual date of termination of Executive's employment,
subject to the rights of Executive under Section 4.1 of this Agreement. After
any notice of termination Company may also determine whether any continuing
services on the part of Executive shall be performed on or off the Company's
premises. In any event during any period after notice of termination of
Executive's employment and prior to the actual termination of Executive's
employment Executive shall be available to Company for consultation, and so
shall consult with Company, as to matters in which Executive was involved during
his employment with Company.

         5.4) Return of the Company Property. In the event of termination of
Executive's employment all corporate documents, records, files, credit cards,
computer disks and tapes, computer access card, codes and keys, file access
codes and keys, building and office access cards, codes and keys, materials,
equipment and other property of the Company which is in Executive's possession
shall be returned to the Company at its principal business office on the date of
termination of Executive's employment, or within five days thereafter if
termination occurs without notice. Executive may copy, at Executive's expense,
documents, records, materials and information of the Company only with the
Company's express, written permission.

                                    ARTICLE 6
                           Inventions, Plans and Ideas

         6.1) Definition. "Inventions, plans and ideas" as used in this Article
6 mean any discoveries, ideas, plans and improvements (whether or not they are
in writing or reduced to writing or embodied solely in practices of the Company)
or works of authorship (whether or not they are or can be patented or
copyrighted) that Executive makes, authors, or conceives (either alone or with
others) and that:

         (a)      concern the Company's business or the Company's research or
                  development or planning that can be demonstrated to relate to
                  the Company's then-current business or any planned business
                  discussed with the Board of Directors which the Company is
                  actively exploring; or

         (b)      result from and relate to any work Executive performs for the
                  Company which work also meets the criteria of subparagraph
                  (a); or

         (c)      use the Company's trade secret information.

         6.2) Property of the Company. Executive agrees that all "inventions,
plans and ideas" he makes during the term of this Agreement will be the
Company's sole and exclusive property. Executive will, with respect to any such
"invention, plan or idea":

         (a)      keep current, accurate and complete records which will belong
                  to the Company and be kept and stored on the Company's
                  premises while Executive is employed by the Company.

         (b)      promptly and fully disclose the existence and describe the
                  nature of the invention, plan or idea to the Company in
                  writing (upon request).

         (c)      assign, and Executive hereby does assign, to the Company all
                  of his rights to any such "invention, plan or idea", and any
                  applications which he may make for patents, copyrights,
                  trademarks or service marks in any country.

         (d)      acknowledge and deliver promptly to the Company any written
                  instruments, and perform any other acts necessary in the
                  Company's reasonable opinion, to preserve property rights in
                  any invention, plan or idea against forfeiture, abandonment or
                  loss, and to obtain and maintain letters patent and/or
                  copyrights and/or marks on any invention, plan or idea and to
                  vest the entire right and title to such "invention, plan or
                  idea" in the Company.

NOTICE: Pursuant to Minnesota Statutes ss. 181.78, Executive is hereby notified
that this Article 6 does not apply to any invention for which no equipment,
supplies, facility, or trade secret information of the Company was used and
which was developed entirely on Executive's own time, and (1) which does not
relate (a) directly to the business of the Company or (b) to the Company's
actual or demonstrably anticipated research or development, or (2) which does
not result from any work performed by the employee for the Company.

         6.3) Executive Claims. Executive does not have, and will not assert,
any claims to or rights under any "inventions, plans or ideas" as having been
made, conceived, offered or acquired by Executive prior to his employment by the
Company. Further, and without limiting the foregoing, Executive has contributed
and assigned, and hereby does contribute and assign, to the Company all
"inventions, plans and ideas" within the meaning of this Article 6.

                                    ARTICLE 7
                            Confidential Information

         7.1) Definition. "Confidential Information" as used in this Article 7
means information (a) that is not generally known to the public and (b) that is
proprietary to the Company or that the Company is obligated to treat as
proprietary. Confidential Information shall include, without limitation:

         (1)      trade secret information about the Company and its products
                  and services; and

         (2)      Any information that the Company reasonably considers or
                  treats as Confidential Information, or that Executive actually
                  knows or reasonably should know that the Company considers or
                  treats as Confidential Information (whether Executive or
                  others originated it and regardless of how Executive obtained
                  it).

         7.2) Use Prohibited. Except as required in his duties to the Company,
Executive will never knowingly, either during or after his employment by the
Company, use or disclose Confidential Information to any person not authorized
by the Company to receive it, excluding Confidential Information (a) which
becomes publicly available through a source other than Executive, (b) which is
made public by the Company, (c) which is received by Executive after termination
of this Agreement from a third party who obtained the information on a
non-confidential basis from the Company, (d) for which disclosure thereof the
Company has consented to in writing, or (e) that Executive is compelled to
disclose in any judicial or administrative proceeding. Promptly upon termination
of Executive's employment with the Company, Executive will turn over to the
Company all records, documents, materials and any compositions, articles,
devices, apparatus and other items that disclose, describe or embody
Confidential Information, including all copies and reproductions thereof, in
Executive's possession, regardless of who prepared them.

         7.3) Violation by Executive. If it is determined by an arbitration
proceeding or a final, non-appealable judgment of a court of law or equity that
Executive has breached Article 7 with regard to material information the Company
shall be relieved of further severance payments to Executive, and Executive
shall repay to the Company all severance payments previously received.

                                    ARTICLE 8
                        Competitive Activities Prohibited

         8.1) Prohibition; Duration. Executive agrees that, during his
employment with the Company, Executive will not alone, or in any capacity with
another firm, individual or person:

         (a)      directly or indirectly, whether as an employee, officer,
                  director, shareholder, (provided, however, that passive
                  investments in publicly traded securities not exceeding five
                  percent of the issuer's capital stock shall be permitted),
                  partner, agent, owner, representative, consultant or
                  otherwise, engage in any activity, in any state or foreign
                  country, that competes with the Company's products or services
                  produced, sold or rendered in the ordinary course of the
                  Company's business as of the date of Executive's termination,
                  or products or services demonstrated to have been formally
                  planned and approved before the date of Executive's
                  termination for production or sale;

         (b)      in any way interfere or attempt to interfere with the
                  Company's relationships with any of its then-current
                  customers, suppliers, vendors or investors; or

         (c)      employ or attempt to employ any of the Company's employees, or
                  the employees of any enterprise managed or owned by the
                  Company on behalf of any other entity competing with the
                  Company.

         All of the above activities are "Competitive Activities".

         8.2) Exception. Nothing in Paragraph 8.1 shall restrict the Executive's
employment by, or association with, an entity, venture or enterprise which
engages in a business with a product or service competitive with any product or
service, or planned product or service per Paragraph 8.1(a), of the Company so
long as Executive's employment or association with such entity, venture or
enterprise is limited to work which does not directly involve products or
services which compete with any product or service offered, or planned to be
offered per Paragraph 8.1(a), by the Company at the date of Executive's
termination.

         8.3) Violation by Executive. If it is determined by an arbitration
proceeding or a final non-appealable judgment of a court of law or equity that
Executive has breached Article 8 in a material manner the Company shall be
relieved of further severance payments to Executive, and Executive shall repay
to the Company all severance payments previously received.

         8.4) Notice to New Employer. Executive will, prior to accepting
employment with any new employer, inform that employer of this Agreement and
provide that employer with a copy of Article 8 of this Agreement.

                                    ARTICLE 9
                            Certain Company Remedies

         9.1) Certain Company Remedies. The parties acknowledge that the Company
will suffer irreparable harm if the Executive breaches Paragraph 5.3 and/or
Articles 6, 7 and/or 8 of this Agreement, either during or after its term.
Accordingly, the Company shall be entitled to any right or remedy it may have,
under this Agreement or otherwise, at law or equity, including but not limited
to, an injunction, enjoining or restraining Executive from any violation of
Paragraph 5.3 and/or Articles 6, 7 and/or 8 of this Agreement.

         9.2) Payment of Fees and Expenses. If either party initiates or becomes
a party to a formal proceeding in law or equity, or under arbitration, involving
this Agreement, and if either party obtains a substantial portion of the relief
requested by that party (the "prevailing party"), then the non-prevailing party
shall pay all of its and the prevailing party's reasonable costs and expenses,
including reasonable attorneys' fees and expenses, incurred with respect to such
proceeding. If neither party obtains a substantial portion of the relief
requested each shall bear its/his own expenses. In the event Executive is
terminated pursuant to Paragraph 5.1 (c) and determines to challenge the
Company's determination of "Cause", the Company and Executive shall each bear
its/his own expenses in connection with any proceeding initiated by Executive
with respect to the determination as to "Cause".

                                   ARTICLE 10
                                 Indemnification

         10.1) As to acts or omissions of Executive which are within the scope
of Executive's authority as an officer and/or director of the Company and/or any
affiliate of the Company, the Company shall indemnify Executive, and his legal
representatives and heirs to the maximum extent permitted by Minnesota law.

                                   ARTICLE 11
                                  Miscellaneous

         11.1) Successors and Assigns. This Agreement is binding on and inures
to the benefit of the Company, and its successors and assigns. the Company
agrees that the Company shall be deemed to have materially breached this
Agreement if its successor or assign does not assume all of the Company's
material obligations under this Agreement. The rights and obligations of
Executive under this Agreement are personal and may not be assigned or
transferred without the express written consent of the Company.

         11.2) Modification. This Agreement supersedes all prior agreements and
understandings between the parties. This Agreement may be modified or amended
only by a writing signed by the Company and Executive.

         11.3) Waivers. No failure or delay by either the Company or Executive
in exercising any right or remedy under this Agreement shall be deemed a waiver
of any provision of this Agreement. Nor shall any single or partial exercise by
either the Company or Executive of any right or remedy under this Agreement
preclude either from otherwise or further exercising rights or remedies granted
under this Agreement.

         11.4) Notices. Any and all notices referred to herein shall be deemed
properly given only if in writing and delivered personally or sent postage
prepaid, by certified mail, return receipt requested, as follows:

         (a)      To the Company, to the attention of the Company's Chief
                  Executive Officer, at its office set forth on page 1 of this
                  Agreement or at such other address as the Company may specify
                  in writing to Executive, with a copy to each member of the
                  Company's Board of Directors, and to Fredrikson & Byron, P.A.,
                  1100 International Centre, 900 Second Avenue South,
                  Minneapolis, Minnesota 55402, Attention: John H. Stout.

         (b)      To Executive at his home address as it then appears on the
                  records of the Company, it being the duty of the Executive to
                  keep the Company informed of his current home address at all
                  times.

The date on which notice to the Company or Executive shall be deemed to have
been given if mailed as provided above shall be the date on the certified mail
return receipt. Personal delivery to Executive shall be deemed to have occurred
on the date notice was delivered to Executive personally or deposited in a mail
box or slot or left with security or administrative personnel, at Executive's
residence by a representative of the Company or any messenger or delivery
service.

         11.5) Action by Board of Directors. Any action required by the
Company's Board of Directors under this Agreement may be taken by majority vote
of a duly authorized committee having authority over the matter in question or
by a majority of the remaining members of the Board of Directors, not counting
Executive, then serving.

         11.6) Judicial Review; Severability. In the event that a court of
competent jurisdiction determines that any of the provisions of this Agreement
are unreasonable, it may limit such provision to the extent it deems reasonable,
without declaring the provision or this Agreement invalid in its entirety. This
provision shall not be construed as an admission by the Company, but is only
included to provide the Company with the maximum possible protection for its
business, Confidential Information, inventions, trade secrets and data,
consistent with the right of the Executive to earn a livelihood subsequent to
the termination of his employment.

         To the extent any portion of any provision of this Agreement shall be
deemed invalid or unenforceable, it shall be considered deleted herefrom and the
remainder of such provision and the remainder of this Agreement shall be
unaffected and shall continue in full force and effect.

         The Company and Executive desire that this Agreement shall be given the
construction which renders its provisions valid and enforceable to the maximum
extent, not exceeding its express terms, permissible under applicable law.

         11.7) Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Minnesota.

         IN WITNESS WHEREOF, the Company and Executive have executed this
Agreement on January 2, 1997 to be effective as of the effective date set forth
above.

                               CORVU CORPORATION ("the Company")

                               By: /s/ Justin MacIntosh
                                   Justin MacIntosh, Chief Executive Officer

                                /s/ Alan M. Missroon
                               Alan M. Missroon ("Executive")SUBLEASE AGREEMENT

         This Sublease made this 1st day of June, 1998, by and between Arcadia
Financial Ltd., (formerly known as Olympic Financial, Ltd.), a Minnesota
Corporation whose address is 7825 Washington Avenue South, Bloomington,
Minnesota, 55439 ("Sublandlord"), and CorVu North America Inc., a Minnesota
Corporation ("Subtenant").

                                   WITNESSETH:

         WHEREAS, Sublandlord has entered into that certain Lease Agreement
dated July 5, 1996, (collectively referred to as "Prime Lease") between United
Properties Investment Company, a Minnesota Corporation ("Prime Landlord"), as
Landlord, and Sublandlord, as Tenant, covering the building (the "Building") at
3400 West 66th Street, City of Edina, County of Hennepin, State of Minnesota
(such lease is hereinafter referred to as the "Prime Lease" and such premises
are hereinafter referred to as the "Premises"); and

         WHEREAS, Sublandlord wishes to sublet a portion of the Premises to
Subtenant and Subtenant wishes to sublease the same from Sublandlord upon all of
the terms and provisions herein set forth.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

         1. Sublandlord hereby subleases to Subtenant and Subtenant hereby
subleases from Sublandlord a portion of the Premises, together with the
appurtenances, situated in the City of Edina, County of Hennepin, State of
Minnesota, more particularly described as follows:

         3400 West 66th Street, Fourth Floor, Edina, Minnesota, containing
approximately 6,271 Rentable Square Feet (the "Subleased Premises") attached as
Sublease Exhibit A, for a term ("Term") to commence on August 1, 1998 (the
"Commencement Date") and to expire on August 31, 2002, subject to this Sublease
and upon the rentals, terms, covenants, conditions and provisions hereafter set
forth. Subtenant acknowledges that the rentable square footage is inclusive of a
13% load factor.

         2. Subtenant covenants and agrees to pay to Sublandlord without offset
or deduction the monthly Base Rental on the first day of each month during the
Term, commencing on August 1, 1998 in the amounts as described below:

     Month one (1):                 $0 monthly           $0 per RSF/Year
     Months two (2)
     through forty-eight (48):      $5,497.58 monthly    $10.52 NNN per RSF/Year

In addition, commencing on September 1, 1998, and continuing monthly for the
balance of the term of the Sublease, Subtenant shall reimburse Sublandlord as
Additional Rent (as defined in the Prime Lease as an Operating Cost Adjustment),
all amounts which may become due under the Prime Lease for any operating costs
allocable to the Subleased Premises based upon the Rentable Square Foot (RSF)
office area allocable to the Subleased Premises. For 1998, Building operating
costs are estimated at $10.02 per RSF. Subtenant is aware that Subtenant will be
responsible for the operating expenses which are estimated to be $10.02 per
rentable square foot per annum and that the rate stated above is based on a
triple net rate. Within a reasonable time after Sublandlord's receipt of the
estimated costs for each calendar year of the Term, Sublandlord shall provide to
Subtenant, Prime Landlord's estimate of the per Rentable Square Foot operating
costs for the related calendar year, and the Additional Rent payable hereunder
each month of such calendar year shall be equal to 1/12th of the estimated
Additional Rent allocable to the Subleased Premises. Upon the expiration of each
calendar year, Sublandlord shall provide Subtenant a statement of the actual per
Rentable Square Foot operating costs allocable to the Subleased Premises for
such preceding calendar year as calculated by Landlord. If the actual per
Rentable Square Foot operating costs for such preceding calendar year differ
from the estimate for such year, Subtenant shall pay to Sublandlord within 30
days of demand the amount by which the actual costs exceed the amount paid by
Subtenant, or the Sublandlord shall credit the amount by which the amount paid
by Subtenant exceeds the actual costs to the Additional Rent due in the then
current year, or pay the amount in the last year of the Sublease, as the case
may be.

         3. The parties agree that this Sublease shall be subject and
subordinate to all of the terms, covenants, conditions, and provisions of the
Prime Lease and to all the title and other matters to which the Prime Lease is
subject and subordinate as are applicable to the Subleased Premises. A copy of
the Prime Lease and all Amendments relating thereto shall be attached as
Sublease Exhibit B.

         4. (a) The terms, covenants, conditions and provisions in the Prime
Lease (including, but not limited to, the remedies provided thereunder) are
incorporated herein by reference, and shall, as between Sublandlord and
Subtenant, constitute the terms, covenants, conditions and provisions of this
Sublease, except to the extent that they are inapplicable to, inconsistent with,
or modified by the provisions of this Sublease. The parties agree to observe and
perform the terms, covenants, conditions and provisions on their respective
parts to be observed and performed hereunder, including, but not limited to,
those terms, covenants, conditions and provisions of the Prime Lease which are
incorporated herein.

         (b) Subtenant shall have all the rights of Sublandlord under Prime
Lease, in no case, have any rights in respect of the Subleased Premises greater
than Sublandlord's rights under the Prime Lease and Sublandlord shall have no
liability to Subtenant for any matter whatsoever for which Sublandlord does not
have at least co-extensive rights, as tenant, against the Prime Landlord under
the Prime Lease.

         (c) The performance by Sublandlord of any of the terms and conditions
of this Sublease upon the Sublandlord's part to be performed shall be subject
and dependent upon the performance by the Prime Landlord under the Prime Lease
terms, covenants, conditions and provisions, expressed or implied, of the Prime
Lease on the part of the Prime Landlord under the Prime Lease to be performed,
and Sublandlord shall be under no obligation or liability whatsoever to the
Subtenant in the event that the Prime Landlord shall fail to perform any of the
terms or conditions contained therein on the part of the Prime Landlord to be
performed, but Sublandlord shall enforce all of its rights under the Prime Lease
for the benefit of Subtenant.

         5. Security Deposit - Subtenant to pay a security deposit in the amount
of $21,250.00 for the faithful performance of all terms, covenants and
conditions of this Sublease. Subtenant agrees that Sublandlord may apply said
security deposit to remedy any failure by Subtenant to repair maintain premises
or to perform any other terms, covenants, and conditions contained herein. If
Subtenant has kept and performed all terms, covenants, and conditions of this
Lease during the term hereof, Sublandlord will on the termination hereof
promptly return said sum to Subtenant. Should Sublandlord use any portion of
said sum to cure any default by Subtenant hereunder, Subtenant shall forewith
replenish said sum to such original amount. Sublandlord shall not be required to
keep any security deposit separate from its general funds and Subtenant shall
not be entitled to interest on any such deposit. Upon the occurrence of any of
the defaults described in the Sublease document or the Prime Lease, said
security deposit shall be immediately due and payable Sublandlord, but only to
the extent that said portion of the security deposit is needed to cure default.
If Subtenant has kept and performed all terms, covenants and conditions of this
Sublease during the first year of the term hereof, Sublandlord will on the
expiration of the first year of the term return $10,630.00 to Subtenant.

         6. Parking will be provided pursuant to the Prime Lease, but shall not
be less than 4 cars per 1,000 rentable square feet leased by Subtenant.

         7. Nothing contained in this Sublease shall be construed to create
privity of estate or of contract between Subtenant and the Prime Landlord.
Neither Subtenant nor Sublandlord shall do or permit to be done any act or thing
which will constitute a breach or violation of any of the terms, covenants,
conditions or provisions of the Prime Lease and each indemnities the other from
all costs, damages or expenses arising out of a breach of the Lease caused by
the other party.

         8. Subtenant will indemnify and hold Sublandlord harmless from and
against all losses, costs, damages, expenses and liability, including, but not
limited to, reasonable attorney's fees, which Sublandlord may incur or pay out
by reason of any injury to persons or property occurring in, on or about the
Subleased Premises, or by reasons of any breach or default hereunder on
Subtenant's part or by reason of any work done in or to the Subleased Premises
or any act or negligence on the part of Subtenant, its agents, employees and
invitees. Subtenant shall cause Sublandlord and Prime Landlord to be listed as
additional insureds on all public liability, property damage and fire and
extended coverage insurance procured by Subtenant relating to the Subleased
Premises in accordance with the terms of the Prime Lease, provided, however,
that Sublandlord warrants that the Subleased Premises are in good working order
and comply with all applicable laws.

         9. Subtenant agrees to accept the Subleased Premises in an as-is
condition with the exception of the space plan that has been mutually agreed
upon by Sublandlord and Subtenant. This space plan shall provide for Sublandlord
to demise said space and for the creation of a reception area for the Subtenant.
Cost of reception area to be determined and mutually agreed upon prior to
Sublease execution. Sublandlord and Subtenant agree that the Sublease Agreement
and the Subleased Premises include no furniture, fixtures, or equipment unless
such items are covered under a separate agreement.

         10. Sublandlord's refusal to consent to or approve any matter or thing,
whenever Sublandlord's consent or approval is required under the terms of this
Sublease, shall be deemed reasonable if the Prime Landlord has refused to give
such consent or approval and such approval is required pursuant to the terms of
the Prime Lease.

         11. (a) Notices and other communications hereunder shall be in writing,
and shall be delivered in person or made by certified mail addressed to the
parties at their respective addresses set forth above, or at any other address
which either party may hereafter designate for such purpose by written notice.
Notices to Sublandlord shall be sent to Director of Administrative Services,
Arcadia Financial Ltd., 7825 Washington Ave. So., Bloomington, MN 55439. Notices
to Subtenant shall be sent to: Dave Carlson, 3400 West 66th Street, Fourth
Floor, Edina, MN.

             (b) Subtenant shall promptly deliver to Sublandlord copies of all
notices received by Subtenant from the Prime Landlord and copies of all notices
served upon the Prime Landlord under the terms of the Prime Lease.

             (c) The time limits provided in the Prime Lease for the giving of
notices, making demands, performance of any act, condition or covenant or the
exercise of any rights, remedies or options are changed for the purposes of this
Sublease by lengthening or shortening the same, in each instance, by three (3)
days, as appropriate, so that notice may be given, demands made, or acts,
conditions or covenants performed or any rights, remedy or option herein
exercised by Sublandlord or Subtenant, as the case may be (and each party
covenants that it will do so) within the time limit relating thereto contained
in the Prime Lease.

         12. Unless Prime Landlord agrees otherwise, if, for any reason, the
term of the Prime Lease is terminated prior to the expiration date of this
Sublease, this Sublease shall thereupon be terminated, and Sublandlord shall not
be liable to the Subtenant by reason thereof except for any prepaid rent which
shall be prorated to the time of actual eviction following termination, unless
said termination shall have been effected because of the breach or default of
the Sublandlord under the Prime Lease.

         13. This Sublease is subject to and conditioned upon Prime Landlord's
consent in writing, which consent shall approve Subtenant's use of the Subleased
Premises as general office. Prime Landlord shall consent that Subtenant's use of
the Subleased Premises will not be disturbed so long as Subtenant is not in
default under the Sublease. If such consent is not obtained on or before the
Commencement Date, then this Sublease shall be void and terminated and the base
rent prorated. In the event Subtenant obtains possession of the Subleased
Premises prior to the Prime Landlord's approval, Subtenant agrees to immediately
vacate the Subleased Premises in the event this Sublease is terminated and to
indemnify and hold Sublandlord and Prime Landlord harmless from and against any
losses, costs, damages, expenses, and liability arising from its holding over,
including attorney's fees.

         14. This Sublease shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, successors in interest and
assigns.

         IN WITNESS WHEREOF, the parties hereto have executed this Lease under
seal the day and year first above written.

                                              SUBLANDLORD:

                  WITNESS:                    Arcadia Financial Ltd.
                                              A Minnesota Corporation

                                              By:
                                              Its:  Senior Vice President
                                              Date: 7/23/98

                                              SUBTENANT:

                  WITNESS:                    CorVu North America Inc.
                                              A Minnesota Corporation

                                              By:
                                              Its: CFO
                                              Date: 7/9/98

<PAGE>

                                   Exhibit "A"

                                  [Floor Plan]

<PAGE>

                        CONSENT TO SUBLETTING OF PREMISES

         United Properties Investment Company, Landlord under the Prime Lease
described as such in the foregoing Standard Sublease (the "Sublease Agreement"),
which Prime Lease is dated July 5, 1996, hereby consents to the subletting of
the subleased Premises (as defined in the Sublease Agreement) by Arcadia
Financial Ltd. (formerly known as Olympic Financial, Ltd.), as Sublessor, to
CorVu North America, Inc., a Minnesota corporation, as Sublessee, subject to and
conditioned upon the following:

         a.       That Sublessor, Arcadia Financial Ltd., shall remain obligated
                  under the Prime Lease for the full Term thereof for the prompt
                  payment when due of all rentals and other sums to be paid by
                  the Tenant under the Prime Lease and the keeping and
                  performance of all terms, covenants and provisions of the
                  Prime Lease to be kept and performed by the Tenant thereunder;

         b.       That this Consent shall not be deemed to waive Landlord's
                  right to approve or consent to any future subletting and/or
                  assignments with respect to the Prime Lease or the Premises
                  thereunder;

         c.       That the Sublease Agreement shall create no obligation or
                  liability on the Landlord whatsoever; and

         d.       Subtenant, CorVu North America, Inc. agrees to list United
                  Properties Investment Company as additional insureds on all
                  public liability, property damage and fire coverages in
                  accordance with the terms of the Prime Lease.

         Dated this 27th day of July, 1998.

Sublandlord:                          Subtenant:

Arcadia Financial Ltd., a             CorVu North America, Inc.,
Minnesota corporation                 a Minnesota corporation

By:                                   By:
Its: Senior Vice President            Its: CFO
Date:  8/3/98                         Date: 7/30/98

Landlord:

United Properties Investment
Company

By:
Its: Asset Manager
Date: 7/29/98

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