Document:

exhibit10-6.htm

    THE INDEBTEDNESS
EVIDENCED BY THIS NOTE IS SUBORDINATE TO THE OBLIGATION OF THE COMPANY TO PAY
THE SENIOR DEBT (AS DEFINED IN SECTION 13 HEREIN BELOW) PURSUANT TO, AND TO THE
EXTENT PROVIDED IN, SECTION 13 BELOW. 

     

    This Note and the Buyer Common Stock issuable
upon conversion hereof (until such time, if any, as such Buyer Common Stock is
registered with the Securities and Exchange Commission pursuant to an effective
registration statement) have not been registered under the Securities Act of
1933, as amended (the “Act”), or any state securities laws, and may not be sold, offered for sale
of otherwise transferred unless registered or qualified under the Act and
applicable state securities laws or unless the Company receives an opinion, in
form and from counsel reasonably acceptable to the Company, that registration,
qualification or other such actions are not required under any such laws.

     

    SUBORDINATED PURCHASE NOTE 

     

    
      	$__________	Maturity Date: 
	
            	 
	Issue
      Date: June [___], 2010	September [__], 2015

    

         FOR VALUE RECEIVED, Unify Corporation, a
Delaware corporation (the “Company”) hereby promises to pay to the order of
________________________ or its successors, assigns and legal representatives
(the “Holder”), at ___________________________, or at such
other location as the Holder may designate from time to time, the aggregate
principal sum of $______________ (___________ Dollars), in lawful money of the
United States of America, together with interest thereon at an annual interest
rate of eight percent (8%), provided that upon the occurrence of and during the
continuance of an Event of Default the annual interest rate shall increase to
thirteen percent (13%). 

     

         1. 1. Company Notes. This Subordinated Purchase Note (the
“Note”) is one of a series of Notes of like tenor
in the aggregate principal amount of $5,000,000 issued by the Company pursuant
to the terms of that certain Agreement and Plan of Merger (the “Merger Agreement”), dated June ___, 2010 (the “Issue Date”), by and among the Company, Unify
Acquisition Corp., a wholly owned subsidiary of the Company and Strategic Office
Solutions, Inc., a California corporation. Capitalized terms used herein shall
have the respective meanings ascribed thereto in the Merger Agreement unless
otherwise defined herein. 

     

         2. Calculation of Interest. Interest hereunder shall be calculated on
the basis of a 365-day year for the actual number of days elapsed. Interest
shall be calculated on a simple interest basis and shall accrue
daily.

     

    

    
    

         3. Payments. Interest shall accrue but not be paid until
Section 13 terminates in accordance with Section 13(n). Accrued but unpaid
interest shall be paid on the first Business Day of the fiscal quarter of the
Company commencing after the termination of Section 13 and shall thereafter be
paid quarterly, in arrears. Subject to Section 13, the principal amount, and any
accrued but unpaid interest, shall be due and payable on the earlier of (x)
September __, 2015 and (y) the date ninety (90) days after the Senior Debt has
been fully and finally paid and all lending and other credit commitments under
the Loan Agreement and the other Loan Documents have terminated (the “Maturity
Date”). 

     

         4. Prepayment. Any prepayments hereunder shall be applied
first, to the payment of any expenses then owed to the Holder, second, to
accrued interest on this Note and third, to the payment of the principal amount
outstanding under this Note. The Company shall have no right to make any
prepayment of all or any portion of this Note unless the Company makes a
simultaneous prepayment of the other Notes pari passu. The Note may be prepaid at any time without
penalty, provided that the Company will give the Holder not less than fifteen
(15) days advance written notice of prepayment.

     

         5. Conversion.

     

              (a) Optional Conversion. Subject to the provisions hereof, at any
time following the twenty-first (21st) day after the Company has sent to its
stockholders an information statement under Regulation 14C of the Securities
Exchange Act of 1934 with respect to the action by written consent of holders of
a majority of the outstanding Buyer Common Stock to authorize the issuance of
Buyer Common Stock issuable upon conversion of this Note, and so long as (i) the
Buyer Common Stock is authorized for listing or quotation on a national
securities exchange, Nasdaq or the Over-the-Counter Bulletin Board or the “pink
sheets,” and (ii) all or a portion of the principal amount of this Note remains
outstanding, either the Holder or the Company may at its election convert this
Note into the number of fully paid and non-assessable shares (the “Conversion Shares”) of Buyer Common Stock equal to the
aggregate outstanding principal amount due under this Note (plus accrued
interest) divided by the Conversion Price (as defined below), by notice of
conversion and surrender (or, in the case of a Company-elected conversion,
request for surrender) of this Note at the principal office of the Company, or
such other office or agency of the Company as it may reasonably designate by
written notice to the Holder, during normal business hours on any Business Day.
The “Conversion Price” shall, subject to adjustment as provided in
Section 6 below, mean (x) $3.50 (the “Initial Conversion Price”) if either the Company or the Holder elects
to convert this Note prior to the first anniversary of the date of issuance and
(y) if either the Company or the Holder elects to convert this Note after the
first anniversary of the date of issuance, the lesser of (A) the Initial
Conversion Price (as it may be adjusted in accordance with Section 6) and (B)
the volume weighted average trading price per share of Buyer Common Stock for
the twenty (20) trading days ending on the second trading date prior to the date
of the notice of conversion. 

     

    -2-

     

    

    
    

              (b) Stock Certificates. On the date on which the Holder shall have
satisfied in full the Holder’s obligations set forth herein regarding a
conversion of this Note, the Holder (or such other person or persons as directed
by the Holder, subject to compliance with applicable securities laws) shall be
treated for all purposes as the holder of record of such Conversion Shares as of
the close of business on such date. In the event of such conversion of this
Note, certificates for the whole number of shares of Buyer Common Stock
constituting the Conversion Shares shall be delivered to the Holder (or such
other person or persons as directed by the Holder, subject to compliance with
applicable securities laws) as promptly as is reasonably practicable (but not
later than five (5) days) after such conversion at the Company’s expense.

     

              (c) Reservation of Shares; Stock Fully Paid;
Listing. The Company shall
keep reserved a sufficient number of shares of the authorized and unissued
shares of Buyer Common Stock to provide for the conversion of this Note in
compliance with its terms. All Conversion Shares issued upon conversion of this
Note shall be, at the time of delivery of the certificates for such Conversion
Shares upon conversion of this Note in accordance with the terms hereof, duly
authorized, validly issued, fully paid and non-assessable shares of Buyer Common
Stock. 

     

              (d) Restricted Securities. The Conversion Shares hereunder may not, at
the time of issuance, have been registered under any federal or state securities
laws, and may constitute “restricted securities” within the meaning of federal
and state securities laws. By its receipt of Conversion Shares, if the shares
are not then the subject of an effective registration statement under the
Securities Act, the Holder will be deemed to acknowledge and confirm that it is
receiving such shares for its own account for investment, and not with a view to
the resale or distribution thereof in violation of any federal or state
securities laws. 

     

         6. Adjustments.

     

         6.1 Adjustment Upon Extraordinary Common Stock
Event. Upon the happening
of an Extraordinary Common Stock Event (as hereinafter defined) prior to the
issuance of the Conversion Shares, the Initial Conversion Price shall,
simultaneously with the happening of such Extraordinary Common Stock Event, be
adjusted by multiplying such Initial Conversion Price by a fraction, the
numerator of which shall be the number of shares of Buyer Common Stock
outstanding immediately prior to such Extraordinary Common Stock Event and the
denominator of which shall be the number of shares of Buyer Common Stock
outstanding immediately after such Extraordinary Common Stock Event, and the
product so obtained shall thereafter be the Initial Conversion Price which, as
so adjusted, shall be readjusted in the same manner upon the happening of any
successive Extraordinary Common Stock Event or Events.

     

         An “Extraordinary Common Stock
Event” shall mean (i) the
issue of additional shares of Buyer Common Stock as a dividend or other
distribution on outstanding shares of Buyer Common Stock, (ii) a subdivision of
outstanding shares of Buyer Common Stock into a greater number of shares of
Buyer Common Stock, or (iii) a combination or reverse stock split of outstanding
shares of Buyer Common Stock into a smaller number of shares of the Buyer Common
Stock.

     

    -3-

     

    

    
    

         6.2 Adjustment Upon Certain
Dividends. In the event
the Company shall make or issue, or shall fix a record date for the
determination of holders of Buyer Common Stock entitled to receive, a dividend
or other distribution with respect to the Buyer Common Stock payable in (i)
securities of the Company other than shares of Buyer Common Stock, or (ii) other
assets (excluding cash dividends or distributions), then the Company shall, not
less than thirty (30) days before the record date for such event, give the
Holder notice of such event. 

     

         6.3 Adjustment Upon Capital Reorganization or
Reclassification. If the
Buyer Common Stock shall be changed into the same or different number of shares
of any other class or classes of capital stock, whether by capital
reorganization, recapitalization, reclassification or otherwise (other than an
Extraordinary Common Stock Event provided for in Section 6.1, a dividend or
other distribution provided for in Section 6.2, or a merger or other transaction
provided for in Section 6.4), then and in each such event, the Holder shall have
the right thereafter to receive, upon conversion of this Note, in lieu of the
number of shares of Buyer Common Stock which the Holder would otherwise have
been entitled to receive, the kind and amount of shares of capital stock and
other securities and property receivable upon such reorganization,
recapitalization, reclassification or other change by the holders of the number
of shares of Buyer Common Stock for which this Note could have been converted
immediately prior to such reorganization, recapitalization, reclassification or
change, all subject to further adjustment as provided herein. 

     

         6.4 Adjustment for Merger or Reorganization,
etc.

     

              (a) In case of any consolidation or merger of
the Company with or into another Company or the sale of all or substantially all
of the assets of the Company to another Company, then this Note shall thereafter
be convertible for the kind and amount of shares of stock or other securities or
property to which a holder of the number of shares of Buyer Common Stock of the
Company deliverable upon conversion of this Note would have been entitled upon
such consolidation, merger or sale; and, in such case, appropriate adjustment
(as determined in good faith by the Board of Directors) shall be made in the
application of the provisions in this Section 6 with respect to the rights and
interest thereafter of the Holder of this Note, to the end that the provisions
set forth in this Section 6 shall thereafter be applicable, as nearly as
reasonably possible, in relation to any shares of stock or other property
thereafter deliverable upon the conversion of this Note.

     

              (b) The provision for such rights with respect
to the Subordinated Purchase Notes shall be a condition precedent to the
consummation by the Company of any such transaction.

     

         6.5 Certificate as to Adjustments; Notice by
Company. In each case of
an adjustment or readjustment of the Initial Conversion Price, the Company at
its expense will, within five (5) days of such adjustment or readjustment,
furnish the Holder with a certificate prepared by the Treasurer or Chief
Financial Officer of the Company, showing such adjustment or readjustment, and
stating in detail the facts upon which such adjustment or readjustment is
based.

     

    -4-

     

    

    
    

         6.6 Further Adjustments. In the event that, as a result of an
adjustment made pursuant to this Section 6, the Holder shall become entitled to
receive any shares of capital stock of the Company other than shares of Buyer
Common Stock, the number of such other shares so receivable upon conversion of
this Note shall be subject thereafter to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Conversion Shares contained in this Note. 

     

         7. Transfer Taxes. The Company will pay any documentary stamp
taxes attributable to the initial issuance of Conversion Shares issuable upon
the conversion of this Note; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Conversion Shares
in a name other than that of the registered holder of this Note in respect of
which such shares are issued, and in such case, the Company shall not be
required to issue or deliver any certificate for Conversion Shares until the
person requesting the same has paid to the Company the amount of such tax or has
established to the Company’s reasonable satisfaction that such tax has been
paid. 

     

         8. Events of Default. Each of the following shall constitute an
“Event of Default” hereunder: 

     

              (a) The Company shall fail to pay the
principal amount of this Note and accrued interest thereon when due and payable
(whether at the Maturity Date, upon acceleration or otherwise); 

     

              (b) The Company shall sell, transfer, lease or
otherwise dispose of all or any substantial portion of its assets in one
transaction or a series of related transactions, participate in any share
exchange, consummate any recapitalization, reclassification, reorganization or
other business combination transaction or adopt a plan of liquidation or
dissolution or agree to do any of the foregoing;

     

              (c) An event of default has occurred and is
continuing for sixty (60) days or more without being cured with respect to any
Senior Debt or the Senior Debt has been accelerated and is due and owing to the
Senior Creditor; or 

     

              (d) The Company shall have applied for or
consented to the appointment of a custodian, receiver, trustee or liquidator, or
other court-appointed fiduciary of all or a substantial part of its properties;
or a custodian, receiver, trustee or liquidator or other court appointed
fiduciary shall have been appointed with or without the consent of the Company;
or the Company is generally not paying its debts as they become due by means of
available assets, or has made a general assignment for the benefit of creditors;
or the Company files a voluntary petition in bankruptcy, or a petition or an
answer seeking reorganization or an arrangement with creditors or seeking to
take advantage of any insolvency law, or an answer admitting the material
allegations of a petition in any bankruptcy, reorganization or insolvency
proceeding or has taken action for the purpose of effecting any of the
foregoing; or if, within thirty (30) days after the commencement of any
proceeding against the Company seeking any reorganization, rehabilitation,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under the Federal bankruptcy code or similar order under future similar
legislation, the appointment of any trustee, receiver, custodian, liquidator, or
other court-appointed fiduciary of the Company or of all or any substantial part
of its properties, such order or appointment shall not have been vacated or
stayed on appeal or otherwise or if, within thirty (30) days after the
expiration of any such stay, such order or appointment shall not have been
vacated (collectively, “Insolvency Events”).

     

     

    -5-

     

    

    
    

         Upon the occurrence of any Event of Default,
the Holder may, at its option, declare all amounts due hereunder to be due and
payable immediately and, upon any such declaration, the same shall, subject to
Section 13 herein below, become and be immediately due and payable. If an
Insolvency Event occurs with respect to the Company, then all amounts due
hereunder shall become immediately due and payable without any declaration or
other act on the part of the Holder. If an Event of Default occurs, the Company
shall pay to the Holder the reasonable attorneys’ fees and disbursements and all
other reasonable out-of-pocket costs incurred by the Holder in order to collect
amounts due and owing under this Note or otherwise to enforce the Holder’s
rights and remedies hereunder. 

     

         9. Right of Off-Set. In accordance with the provisions of Section
2.10(iv) and 2.10(b)(v)(C) of the Merger Agreement, the Company may set off
adjustments made pursuant to that section for Actual Net Cash on Hand and Actual
Working Capital against the Note. Any adjustments will be set off pro rata
against all other Notes of like tenor. 

     

         10. Waiver of Presentment, Demand and
Dishonor. The Company
hereby waives presentment for payment, protest, demand, notice of protest,
notice of non-payment and diligence with respect to this Note, and waives and
renounces all rights to the benefit of any statute of limitations or any
moratorium, appraisement, exemption or homestead now provided or that hereafter
may be provided by any federal or applicable state statute, including but not
limited to exemptions provided by or allowed under the Federal Bankruptcy Code,
both as to itself and as to all of its property, whether real or personal,
against the enforcement and collection of the obligations evidenced by this Note
and any and all extensions, renewals and modifications hereof. 

     

         No failure on the part of the Holder hereof to
exercise any right or remedy hereunder with respect to the Company, whether
before or after the happening of an Event of Default, shall constitute a waiver
of any future Event of Default or of any other Event of Default. No failure to
accelerate the debt of the Company evidenced hereby by reason of an Event of
Default or indulgence granted from time to time shall be construed to be a
waiver of the right to insist upon prompt payment thereafter; or shall be deemed
to be a novation of this Note or a reinstatement of such debt evidenced hereby
or a waiver of such right of acceleration or any other right, or be construed so
as to preclude the exercise of any right the Holder may have, whether by the
laws of the state governing this Note, by agreement or otherwise; and the
Company hereby expressly waives the benefit of any statute or rule of law or
equity that would produce a result contrary to or in conflict with the
foregoing.

     

    -6-

     

    

    
    

         11. Amendment; Waiver. The terms of this Note may not be amended
unless all Subordinated Purchase Notes are identically amended. The Holder may
waive any of its rights under this Agreement, and no such waiver or consent on
any one instance shall be construed to be a continuing waiver or a waiver in any
other instance unless it expressly so provides.

     

         12. Transfers. The Holder shall have the right to transfer
this Note or any interest herein in any transaction meeting the requirements of
applicable securities laws. 

     

         13. Subordination. Notwithstanding anything contained in this
Note to the contrary, until the Payment In Full of the Senior Debt (as each term
is defined herein below), the terms of this Note shall at all times be subject
to the provisions set forth in this Section 13. 

     

         (a) Definitions. The following terms shall have the following
meanings in this Section 13: 

     

    
           (i) Loan Agreement. The Loan and Security Agreement, dated as of
June [__], 2010, by and among, Unify Corporation, as the borrower thereunder,
the guarantors party thereto from time to time, and the Senior Creditor, as
lender, as such agreement is amended, restated or otherwise modified and in
effect from time to time. 

       

           (ii) Loan Documents. The “Loan Documents” under and as defined in
the Loan Agreement. 

       

           (iii) Insolvency Proceeding. Has the meaning ascribed thereto in clause
(g) hereof. 

       

           (iv) Payment In Full. (A) The indefeasible payment in full in cash
of the principal of and interest (including interest accruing on or after the
commencement of any Insolvency Proceeding, whether or not such interest would be
allowed in such Insolvency Proceeding) and premium, if any, constituting Senior
Debt, (B) Indefeasible payment in full in cash of all other Senior Debt that is
outstanding and unpaid or otherwise accrued and owing at or prior to the time
the Senior Debt is paid, and (C) termination or expiration of all lending and
other credit commitments to lend under the Loan Agreement and the other Loan
Documents. 

       

           (v) Senior Creditor. Hercules Technology II, L.P.

    

     

    -7-

     

    

    
    

    
           (vi) Senior Debt. All principal, interest, fees, costs,
enforcement expenses (including reasonable legal fees and disbursements),
collateral protection expenses and other reimbursement or indemnity obligations
created or evidenced by the Loan Agreement or any of the other Loan Documents or
any prior, concurrent, or subsequent notes, instruments or agreements of
indebtedness, liabilities or obligations of any type or form whatsoever relating
to the Loan Agreement or any of the other Loan Documents in favor of the Senior
Creditor. Senior Debt shall expressly include any and all interest accruing or
out of pocket costs or expenses (including reasonable legal fees and
disbursements) incurred after the date of any filing by or against the Company
of any petition under the federal Bankruptcy Code or in connection with any
other Insolvency Proceeding regardless of whether the Senior Creditor’s claim
therefor is allowed or allowable in the case or proceeding relating thereto.

       

           (vii) Subordinated Debt. All principal, interest, fees, costs,
enforcement expenses (including reasonable legal fees and disbursements),
reimbursement and indemnity obligations created or evidenced by this Note or any
prior, concurrent or subsequent notes, instruments or agreements of
indebtedness, liabilities or obligations of any type or form whatsoever relating
to this Note in favor of the Holder and which is unsecured. 

       

           (viii) Subordinated Documents. Collectively, the Note and any and all other
documents or instruments evidencing the Subordinated Debt, whether now existing
or hereafter created.

    

     

         (b) The Subordinated Debt and any and all Subordinated Documents shall be and
hereby are subordinated and the payment thereof is deferred until the Payment In
Full of the Senior Debt, whether now or hereafter incurred or owed by the
Company. 

     

         (c) The Holder hereby acknowledges and agrees that the Subordinated Debt is
unsecured and until the Payment In Full of the Senior Debt, the Company shall
not, and shall not permit any of its subsidiaries to, grant to the Holder and
the Holder shall not take any lien on or security interest in any of the
Company’s or any of its subsidiaries’ property, now owned or hereafter acquired
or created to secure the Company’s obligations under the Subordinated Debt. In
addition, the Holder hereby agrees, upon request of the Senior Creditor at any
time and from time to time, to execute such other documents or instruments as
may be reasonably requested by the Senior Creditor further to evidence of public
record or otherwise the priority of the Senior Debt as contemplated hereby.

     

         (d) Until the Payment In Full of the Senior Debt, the Holder shall not take
or permit any action prejudicial to or inconsistent with the Senior Creditor’s
priority position over the Holder created by the provisions of this Section 13.
Without limiting the foregoing, until the Payment In Full of the Senior Debt,
the Holder will not assert, collect or enforce the Subordinated Debt or any part
thereof or take any action to foreclose or realize upon the Subordinated Debt or
any part thereof or enforce any of the Subordinated Documents except to the
extent (but only to such extent) that the commencement of a legal action may be
required to toll the running of any applicable statute of limitation. Until the
Payment In Full of the Senior Debt, the Holder shall not have any right of
subrogation, reimbursement, restitution, contribution or indemnity whatsoever
relating to the Subordinated Debt from any assets of the Company or any
guarantor of or provider of collateral security for the Senior Debt. The Holder
further waives any and all rights with respect to marshalling.

     

    -8-

     

    

    
    

         (e) Until the Payment In Full of the Senior Debt, the Holder will hold in
trust and immediately pay over to the Senior Creditor, in the same form of
payment received, with appropriate endorsements, for application to the Senior
Debt any cash amount that the Company pays to the Holder with respect to the
Subordinated Debt, or as collateral for the Senior Debt any other assets of the
Company that the Holder may receive with respect to the Subordinated Debt.

     

         (f) If the Holder, in contravention of the terms of this Section 13, shall
commence, prosecute or participate in any suit, action or proceeding against the
Company, then the Company may interpose as a defense or plea the provisions of
this Section 13, and the Senior Creditor may intervene and interpose such
defense or plea in its name or in the name of the Company. If the Holder, in
contravention of the terms of the provisions of this Section 13, shall attempt
to collect any of the Subordinated Debt or enforce any of the Subordinated
Documents, then the Senior Creditor or the Company may, by virtue of the
provisions of this Section 13, restrain the enforcement thereof in the name of
the Senior Creditor or in the name of the Company. If the Holder, in
contravention of the terms of this Section 13, obtains any cash or other assets
of the Company in respect of the Subordinated Debt as a result of any
administrative, legal or equitable actions, or otherwise, the Holder agrees
forthwith to pay, deliver and assign to the Senior Creditor, with appropriate
endorsements, any such cash for application to the Senior Debt and any such
other assets as collateral for the Senior Debt. 

     

         (g) Until the Payment In Full of the Senior Debt, the Holder will not, with
respect to any claim it may have in respect of its Subordinated Debt, commence
or join with any other creditor or creditors in commencing any Insolvency
Proceeding against the Company. At any meeting of creditors of the Company or in
the event of any case or proceeding, voluntary or involuntary, for the
distribution, division or application of all or part of the assets of the
Company or the proceeds thereof, whether such case or proceeding be for the
liquidation, dissolution or winding up of the Company or its business, a
receivership, insolvency or bankruptcy case or proceeding, an assignment for the
benefit of creditors or a proceeding by or against the Company for relief under
the federal Bankruptcy Code or any other bankruptcy, reorganization or
insolvency law or any other law relating to the relief of debtors, readjustment
of indebtedness, reorganization, arrangement, composition or extension or
marshalling of assets or otherwise (collectively, an “Insolvency Proceeding”), the Senior Creditor is hereby irrevocably
authorized at any such meeting or in any such proceeding to receive or collect
any cash or other assets of the Company distributed, divided or applied by way
of dividend or payment, or any securities issued on account of any Subordinated
Debt, and apply such cash to or to hold such other assets or securities as
collateral for the Senior Debt, and to apply to the Senior Debt any cash
proceeds of any realization upon such other assets or securities that the Senior
Creditor in its discretion elects to effect, until the Payment In Full of all of
the Senior Debt, rendering to the Holder any surplus to which the Holder is then
entitled.

     

    -9-

     

    

    
    

         (h) Notwithstanding the foregoing provisions of Section 13(g) herein above,
the Holder shall be entitled to receive and retain any securities of the Company
or any other corporation or other entity provided for by a plan of
reorganization or readjustment (i) the payment of which securities is
subordinate, at least to the extent provided in this Section 13 with respect to
Subordinated Debt, to the payment of all Senior Debt under any such plan of
reorganization or readjustment and (ii) all other terms of which are reasonably
acceptable to the Senior Creditor. 

     

         (i) At any such meeting of creditors or in the event of any such Insolvency
Proceeding, the Holder shall retain the right to vote and otherwise act with
respect to the Subordinated Debt (including, without limitation, the right to
vote to accept or reject any plan of partial or complete liquidation,
reorganization, arrangement, composition or extension), provided that the Holder shall not vote with respect
to any such plan or take any other action in any way so as to contest (i) the
validity of any Senior Debt or any collateral therefor or guaranties thereof,
(ii) the relative rights and duties of any holders of any Senior Debt
established in any instruments or agreements creating or evidencing any of the
Senior Debt with respect to any of such collateral or guaranties, or (iii) the
Holder's obligations and agreements set forth in this Section 13. 

     

         (j) The Holder agrees, with respect to the Senior Debt and any and all
collateral therefor or guaranties thereof, that the Company and the Senior
Creditor may agree to increase the amount of the Senior Debt or otherwise modify
the terms of any of the Senior Debt, and the Senior Creditor may grant
extensions of the time of payment or performance to and make compromises,
including releases of collateral or guaranties, and settlements with the Company
and all other persons, in each case without the consent of the Holder or the
Company and without affecting the agreements of the Holder or the Company
contained in this Section 13; provided, however, that nothing contained in this Section
13(j) shall constitute a waiver of the right of the Company itself to agree or
consent to a settlement or compromise of a claim which the Senior Creditor may
have against the Company. 

     

         (k) The Holder will not, at any time while the provisions of this Section 13
are in effect, modify any of the terms of any of the Subordinated Debt or any of
the Subordinated Documents nor will the Holder sell, transfer, pledge, assign,
hypothecate or otherwise dispose of any or all of the Subordinated Debt to any
person. 

     

         (l) Nothing contained in this Section 13 shall impair, as between the Company
and the Holder, the obligation of the Company to pay to the Holder all amounts
payable in respect of the Subordinated Debt as and when the same shall become
due and payable in accordance with the terms thereof, or prevent the Holder
(except as expressly otherwise provided in Section 13(d) or Section 13(g)) from
exercising all rights, powers and remedies otherwise permitted by the
Subordinated Documents and by applicable law upon a default in the payment of
the Subordinated Debt or under any Subordinated Document, all, however, subject
to the rights of the Senior Creditor as set forth in this Section
13.

     

    -10-

     

    

    
    

         (m) The provisions of this Section 13 shall continue in full force and
effect, and the obligations and agreements of the Holder and the Company
hereunder shall continue to be fully operative, until the Payment In Full of all
of the Senior Debt and such full payment and satisfaction shall be final and not
avoidable. To the extent that the Company or any guarantor of or provider of
collateral for the Senior Debt makes any payment on the Senior Debt that is
subsequently invalidated, declared to be fraudulent or preferential or set aside
or is required to be repaid to a trustee, receiver or any other party under any
bankruptcy, insolvency or reorganization act, state or federal law, common law
or equitable cause (such payment being hereinafter referred to as a
“Voided Payment”), then to the extent of such Voided Payment,
that portion of the Senior Debt that had been previously satisfied by such
Voided Payment shall be revived and continue in full force and effect as if such
Voided Payment had never been made. In the event that a Voided Payment is
recovered from the Senior Creditor, an Event of Default (under and as defined in
the Loan Agreement) shall be deemed to have existed and to be continuing under
the Loan Agreement from the date of the Senior Creditor’s initial receipt of
such Voided Payment until the full amount of such Voided Payment is restored to
the Senior Creditor. During any continuance of any such Event of Default, the
provisions of this Section 13 shall be in full force and effect with respect to
the Subordinated Debt. To the extent that the Holder has received any payments
with respect to the Subordinated Debt subsequent to the date of the Senior
Creditor’s initial receipt of such Voided Payment and such payments have not
been invalidated, declared to be fraudulent or preferential or set aside or are
required to be repaid to a trustee, receiver, or any other party under any
bankruptcy act, state or federal law, common law or equitable cause, the Holder
shall be obligated and hereby agrees that any such payment so made or received
shall be deemed to have been received in trust for the benefit of the Senior
Creditor, and the Holder hereby agrees to pay to the Senior Creditor, upon
demand, the full amount so received by the Holder during such period of time to
the extent necessary fully to restore to the Senior Creditor the amount of such
Voided Payment. Upon the Payment In Full of all of the Senior Debt, which
payment shall be final and not avoidable, the provisions of this Section 13 will
automatically terminate without any additional action by any party
hereto.

     

         14. Governing Law; Dispute
Resolution. This Note
shall be binding upon the Company and its successors, assigns and legal
representatives. The validity, construction and interpretation of this Note will
be governed, and construed in accordance with, the laws of the State of
California. Any Dispute arising out of this Note by and between the Holder and
the Company, shall be resolved in accordance with Section 9.6 (Arbitration) of
the Merger Agreement. 

     

    [Signature Page Follows]

     

    -11-

     

    

    
    

    
      	
              HOLDER

               

              ACKNOWLEDGED
      AND AGREED:

            	
            	
              COMPANY

               

              UNIFY
      CORPORATION

            	
            
	
            	
            	
            	 	
            
	 	              	By:	 	              
	Name:	
            	Name:	
            
	
            	
            	Title: 	
            

    

    Dated: June [___],
2010exhibit10-7.htm

    EMPLOYMENT AGREEMENT 

     

         This Employment Agreement (“Employment
Agreement “) is made this 30th day of June, 2010 by and between Unify
Corporation, a Delaware corporation (the “Company”), and Kurt Jensen
(“Employee”). Capitalized terms used, but not otherwise defined, herein shall
have the meanings ascribed to them in that certain Agreement and Plan of Merger,
dated June 29, 2010 (the “Merger Agreement”), by and among the Company, Unify
Acquisition Corp., a California corporation, Strategic Office Solutions, Inc., a
California corporation (“SOS”) and the shareholders of SOS. 

     

         WHEREAS, Employee
has been employed by SOS prior to the Effective Time, and desires to be employed
by the Company; and 

     

         WHEREAS, Employee’s
agreement to be employed by the Company after the consummation of the
transactions contemplated by the Merger Agreement is a condition precedent to
the Company’s willingness to enter into the Merger Agreement and a material
inducement to the Company to enter into the Employment Agreement;
and

     

         WHEREAS, both
parties desire to enter into this Employment Agreement to evidence the terms and
conditions of such employment.

     

         NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and promises in this
Employment Agreement, the parties agree as follows:

     

         1. EMPLOYMENT. The Company agrees that it will employ
Employee and Employee agrees to
be employed by the Company upon the terms and conditions of this Employment
Agreement. Employee hereby represents and warrants that neither Employee’s entry
into this Employment Agreement nor Employee’s performance of Employee’s
obligations hereunder will conflict with or result in a breach of the terms,
conditions or provisions of any other agreement or obligation of any nature to
which Employee is a party or by which Employee is bound, including, without
limitation, any development agreement, non-competition agreement or
confidentiality agreement previously entered into by Employee.

     

         2. TERM OF
EMPLOYMENT. The term of
Employee’s employment under this Employment Agreement will commence on the date of this Employment
Agreement and will continue until the third anniversary of the date hereof (the
“Employment Term”). The term may be extended for additional one-year terms upon
mutual agreement between the Company and Employee. Notwithstanding anything to
the contrary contained herein, the Employment Term is subject to termination
pursuant to Section 13 below. 

     

         3. POSITION AND
RESPONSIBILITIES. Employee
will be employed as the Chief
Operating Officer of the Company. Employee shall report to and be subject to the
direction of the Chief Executive Officer and the Board of Directors of the
Company. Employee shall perform and discharge such duties and responsibilities
for the Company as the Chief Executive Officer and/or the Board of Directors may
from time to time reasonably assign to Employee.

     

    

    
    

         4. COMMITMENT. During the Employment Term, Employee shall
devote Employee’s full business
time, attention, skill and efforts to the faithful performance of Employee’s
duties herein, and shall perform the duties and carry out the responsibilities
assigned to Employee, to the best of Employee’s ability, in a diligent,
trustworthy, businesslike and efficient manner for the purpose of advancing the
interests of the Company. Employee acknowledges that Employee’s duties and
responsibilities will require Employee’s full-time business efforts and agrees
that during the Employment Term Employee will not engage in any outside business
activities except to the extent that prior written approval has been given by
the Chief Executive Officer of the Company for specific activities that do not
conflict with the Company’s interests or interfere with the performance of
Employee’s duties hereunder.

     

         5. COMPENSATION 

     

         5.1 During the
Employment Term, the Company shall pay to Employee a base salary (the “Base
Salary”) at the rate of $325,000 per year, payable at the Company’s regular
employee payroll intervals, subject to increase pursuant to the Company’s
standard policies and approval of the Compensation Committee of the Board of
Directors of the Company. 

     

         5.2 In addition to
the Base Salary, during the Employment Term, Employee shall be eligible for a
bonus (the “Bonus”) each year. The Bonus shall consist of an annual performance
bonus of up to fifty-five percent (55%) of Employee’s Base Salary, with the
terms, conditions and performance goals of the Bonus established by agreement of
Employee and the Company’s Chief Executive Officer subject to approval of the
Compensation Committee of the Board of Directors of the Company. The annual
Bonus shall be payable by the Company at the same time the other executives of
Unify are paid a performance bonus, typically during the month of
July.

     

         5.3 In addition, the Employee shall receive an
additional payment on each pay period so divided to equal $175,000 for the
twelve month period beginning on the Effective Date of this Agreement. For the
second twelve month period of the Employment Term, Employee will receive an
additional payment on each pay period so divided to equal $87,500 for that
twelve month period.

     

         5.4 Employee shall
also be eligible for stock options in the Company’s stock, with the exercise
price equal to the fair market value at the date of issuance. The use of Long
Term Equity Incentives (LTI) and the amount of the annual LTI is determined by
the Compensation Committee on an annual basis depending on Company financial
performance, the compensation survey results and changes in the Committee’s
compensation philosophies. The option exercise price and number of shares will
be finalized on the grant date of the stock option and the vesting schedule will
be monthly over 48 months with a 1/48th share of the total grant vesting each month
beginning on the date of the grant. The Company currently has a limitation on
the number of stock options shares that can be issued in a fiscal year. Employee
has agreed to receive an additional cash performance bonus in-lieu of an annual
stock option grant (the “Extra Bonus) until such time as the option shares
limitation is modified or eliminated and no longer affects the option shares
available for grant. Therefore, for any fiscal years that Employee is to receive
the Extra Bonus, Employee will receive approximately 30% of the value of that
year’s annual stock option grant (that would have been granted to Employee in
accordance with the Compensation Committee’s philosophy and market surveys were
it not for the option shares limitation) as an additional performance cash bonus based on the EBITDA
attainment. The Extra Bonus will be in addition to the Bonus outlined in Section
5.2. For fiscal 2011, the Extra Bonus will be $101,000 representing 30% of the
approximate option value of $337,000. 

     

    2 

     

    

    
    

         5.5 All
compensation payable to Employee hereunder is stated in gross amount and shall
be subject to all applicable withholding taxes, other normal payroll and any
other amounts required by law to be withheld. 

     

        
6. BENEFIT PLANS. During the Employment Term, Employee will be entitled to receive benefits
and participate in benefit plans at the same level and to the same extent as
other executives of the Company (subject to any applicable waiting periods and
other restrictions). 

     

         7. VACATION. Employee shall be entitled to vacation time
in accordance with Company
policy, but in no event less than four (4) weeks annually. Employee shall make
good faith efforts to schedule vacations so as to least conflict with the
conduct of the Company’s business and will give the Company adequate advance
notice of Employee’s planned absences. 

     

         8. LOCATION OF EMPLOYMENT. Employee shall perform Employee’s duties under this Employment
Agreement at the Company’s offices in San Francisco, California or in other such
offices (if any) that the Company maintains within a reasonable commuting
distance of Employee’s residence on the date of this Employment Agreement;
provided, however, that Employee will be required to spend time at the Company’s
offices in Sacramento, California as reasonably required by the Company.

     

         9. CONFIDENTIALITY AND
INVENTIONS. 

     

         9.1 Confidential
Information. 

     

         (a) Employee acknowledges that the Confidential Information (as defined
below) constitutes a protectible business interest of the Company, and covenants
and agrees that at all times during the period of Employee’s employment, and at
all times after termination of such employment, Employee will not, directly or
indirectly, disclose, furnish, make available or utilize any Confidential
Information other than in the course of performing duties as an employee of the
Company. Employee will abide by Company policies and rules as may be established
from time to time by it for the protection of its Confidential Information.
Employee agrees that in the course of employment with the Company Employee will
not bring to the Company’s offices nor use, disclose to the Company, or induce
the Company to use, any confidential information or documents belonging to
others. Employee’s obligations under this Section 9.1 with respect to
particular Confidential Information will survive expiration or termination of
this Agreement, and Employee’s employment with the Company, and will terminate
only at such time (if any) as the Confidential Information in question becomes
generally known to the public other than through a breach of Employee’s
obligations under this Agreement. 

     

    3 

     

    

    
    

         (b) As used in this Agreement,
the term “Confidential Information” means any and all confidential, proprietary
or trade secret information, whether disclosed, directly or indirectly,
verbally, in writing or by any other means in tangible or intangible form,
including that which is conceived or developed by Employee, applicable to or in
any way related to: (i) the present or future business of the Company or any of
its Affiliates (as defined below); (ii) the research and development of the Company or any of its
Affiliates; or (iii) the business of any client or vendor of the Company or any
of its Affiliates. Such Confidential Information includes the following property
or information of the Company and its Affiliates, by way of example and without
limitation, trade secrets, processes, formulas, data, program documentation,
customer lists, designs, drawings, algorithms, source code, object code,
know-how, improvements, inventions, licenses, techniques, all plans or
strategies for marketing, development and pricing, business plans, financial
statements, profit margins and all information concerning existing or potential
clients, suppliers or vendors. Confidential Information of the Company also
means all similar information disclosed to the Company by third parties which is
subject to confidentiality obligations.

     

         9.2 Inventions as Sole
Property of the Company.

     

         (a) Employee covenants and agrees that all Inventions (as defined below)
shall be the sole and exclusive property of the Company.

     

         (b) As used in this Agreement, “Inventions” means any and all inventions,
developments, discoveries, improvements, works of authorship, concepts or ideas,
or expressions thereof, whether or not subject to patents, copyright, trademark,
trade secret protection or other intellectual property right protection (in the
United States or elsewhere), and whether or not reduced to practice, conceived
or developed by Employee while employed with the Company or within one (1) year
following termination of such employment which relate to or result from the
actual or anticipated business, work, research or investigation of the Company
or any of its Affiliates or which are suggested by or result from any task
assigned to or performed by Employee for the Company or any of its
Affiliates.

     

         (c) Employee acknowledges that all original works of authorship which are
made by him or her (solely or jointly) are works made for hire under the United
States Copyright Act (17 U.S.C., et seq.).

     

         (d) Employee agrees to promptly disclose to the Company all Inventions,
all original works of authorship and all work product relating thereto. This
disclosure will include complete and accurate copies of all source code, object
code or machine-readable copies, documentation, work notes, flow-charts,
diagrams, test data, reports, samples and other tangible evidence or results
(collectively, “Tangible Embodiments”) of such Inventions, works of authorship
and work product. All Tangible Embodiments of any Invention, work of authorship
or work product related thereto will be deemed to have been assigned to the
Company as a result of the act of expressing any Invention or work of authorship
therein.

     

         (e) Employee hereby assigns to the Company (together with the right to
prosecute or sue for infringements or other violations of the same) the entire
worldwide right, title and interest to any such Inventions or works made for
hire, and Employee agrees to perform, during and after employment, all acts
deemed necessary or desirable by the Company to permit and assist it, at the
Company’s expense, in registering, recording, obtaining, maintaining, defending,
enforcing and assigning Inventions or works made for hire in any and all
countries. Employee hereby irrevocably designates and appoints the Company and
its duly authorized officers and agents as Employee’s agents and
attorneys-in-fact to act for and in Employee’s behalf and instead of
Employee, to execute and file any
documents and to do all other lawfully permitted acts to further the above
purposes with the same legal force and effect as if executed by Employee; this
designation and appointment constitutes an irrevocable power of attorney and is
coupled with an interest.

     

    4 

     

    

    
    

         (f) Without limiting the generality of any
other provision of this Section 9.2, Employee hereby authorizes the Company and
each of its Affiliates (and their respective successors) to make any desired
changes to any part of any Invention, to combine it with other materials in any
manner desired, and to withhold Employee’s identity in connection with any
distribution or use thereof alone or in combination with other materials.

     

         (g) The obligations of Employee set forth in
this Section 9.2 (including, without limitation, the assignment obligations)
will continue beyond the termination of Employee’s employment with respect to
Inventions conceived or made by Employee alone or in concert with others during
Employee’s employment with the Company and during the one (1) year thereafter,
whether pursuant to this Agreement or otherwise. These obligations will be
binding upon Employee and Employee’s executors, administrators and other
representatives. 

     

         (h) All Inventions which Employee has made
prior to employment by the Company are excluded from the scope of this
Agreement. As a matter of record, Employee has set forth on Exhibit A hereto a complete list of those Inventions
which might relate to the Company’s business and which have been made by
Employee prior to employment with the Company. Employee represents that such
list is complete. If no list is attached, Employee represents that there are no
prior Inventions. 

     

         (i) Notwithstanding any provisions herein,
Employee’s assignment to the Company of any of Employee’s rights set forth in
this Section 9 shall not apply to any invention that qualifies fully under the
provisions of California Labor Code Section 2870, where no equipment, supplies,
facility or trade secret information of the Company was used, where the
invention was developed entirely upon Employee’s own time, where the invention
does not relate to the Company’s business, and where the invention does not
result from any work performed by Employee for the Company. 

     

         10. RESTRICTIVE COVENANTS.

     

         Employee acknowledges that Employee is subject
to the restrictions set forth in Section 9.14(a) of the Merger Agreement,
provided that Employee agrees that as applicable to Employee the period
described in Section 9.14(a) of the Merger Agreement shall end on the latest of
(x) the third anniversary of the Closing Date (as defined in the Merger
Agreement); (y) the first anniversary of the date Employee’s employment with the
Company or any successor to the Company terminates for any reason or (z) the
date through which Employee is paid severance under this Employment
Agreement.

     

         11. RETURN OF COMPANY MATERIALS UPON TERMINATION. Employee acknowledges that all records,
documents, and Tangible Embodiments containing or of Proprietary Information
prepared by Employee or coming into Employee’s possession by virtue of
Employee’s employment by the Company are and will remain the property of the
Company. Upon termination of
Employee’s employment with the Company, Employee shall immediately return to the
Company all such items in Employee’s possession and all copies of such items, as
well as any other property of the Company.

     

    5 

     

    

    
    

         12. EQUITABLE REMEDIES.

     

         12.1 Employee
acknowledges and agrees that the agreements and covenants set forth in Sections
9, 10 and 11 are reasonable and necessary for the protection of the Company’s
business interests, that irreparable injury will result to the Company if
Employee breaches any of the terms of said covenants, and that in the event of
Employee’s actual or threatened breach of any such covenants, the Company will
have no adequate remedy at law. Employee accordingly agrees that, in the event
of any actual or threatened breach by Employee of any of said covenants, the
Company will be entitled to immediate injunctive and other equitable relief,
without bond and without the necessity of showing actual monetary damages.
Nothing in this Section 12 will be construed as prohibiting the Company from
pursuing any other remedies available to it for such breach or threatened
breach, including the recovery of any damages that it is able to prove.

     

         12.2 Each of the
covenants in Sections 9, 10 and 11 will be construed as independent of any other
covenants or other provisions of this Employment Agreement. 

     

        
12.3 In the event
of any judicial determination that any of the covenants in Sections 9, 10 and 11
are not fully enforceable, it is the intention and desire of the parties that
the court treat said covenants as having been modified to the extent deemed
necessary by the court to render them reasonable and enforceable, and that the
court enforce them to such extent.

     

        
13. TERMINATION.

     

    
          
13.1 The Company
may terminate the Employment Term immediately upon written notice to Employee if
there has been a material breach of this Employment Agreement by Employee.
Without limiting the generality of the preceding sentence, any breach by
Employee of any of Employee’s obligations under Sections 9, 10 and 11 will be
deemed a material breach of this Employment Agreement, and any of the following
events will also be deemed a material breach of this Employment
Agreement:

    

     

         (a) Employee’s continued and deliberate neglect of, willful misconduct in
connection with the performance of or refusal to perform Employee’s duties in
accordance with, Section 3 of this Employment Agreement; or

     

         (b) Employee’s commission of an act or acts constituting a felony or
other crime of moral turpitude; or

     

         (c) Employee’s engagement in willful misconduct that causes or is likely
to cause a financial injury to the Company or any of its subsidiaries,
including, without limitation, Employee’s embezzlement of the funds of the
Company or any of its subsidiaries, or theft of the property of the Company or
any of its subsidiaries, or fraud against the Company or any of its
subsidiaries, or any of their customers.

     

    6 

     

    

    
    

         If the Employment Term is terminated by the
Company pursuant to this Section 13.1 or in accordance with Section 2, the
Company shall have no further obligation hereunder or otherwise with respect to
Employee (except payment of Employee’s Base Salary under Section 5.1, subject to
Section 5.3 hereof, and benefits under Section 6 accrued through the date of
termination). 

     

         13.2 The Employment
Term will terminate upon the death or upon written notice from the Company to
Employee upon the Disability (as defined below) of Employee. “Disability” of
Employee will be deemed to have occurred whenever Employee has suffered physical
or mental illness, injury, or infirmity that prevents Employee from performing,
with or without reasonable accommodation, Employee’s essential job functions
under this Employment Agreement for any ninety (90) days in any one hundred
twenty (120) day period and the Company determines in good faith that such
illness or other disability is likely to continue for at least the next
following thirty (30) days. Employee’s salary prior to the Disability of
Employee will be reduced by any benefits Employee receives from disability
insurance provided by the Company or pursuant to a plan providing disability
benefits maintained by the Company (if any such insurance or plan exists). In
the event of termination due to death or Disability, the Employee shall be
deemed to have earned the pro rata portion of any Bonus for the then current
year based on the date of death or onset of the applicable illness, injury or
infirmity. Except as set forth in the preceding two sentences, if the Employment
Term is terminated pursuant to this Section 13.2, the Company shall have no
further obligation hereunder or otherwise with respect to Employee (except
payment of Employee’s Base Salary under Section 5.1, subject to Section 5.3
hereof, and benefits under Section 6 accrued through the date of termination).

     

         13.3 The Company
may elect to terminate Employee’s employment hereunder without Cause (as defined
below) at any time; provided that if it does so, the Company shall, contingent
upon Employee signing a full general release of all known and unknown claims,
(i) continue to pay Employee’s Base Salary in accordance with Section 5.1 for
twelve months following the termination date, and continue to pay Employee any
additional compensation in accordance with Section 5.3 for twelve months
following the termination date in the same manner as if the Company had not
terminated Employee and provide benefits to Employee in accordance with Section
6 for a period of twelve (12) months after termination; and (ii) pay Employee
the pro rata portion of any performance Bonus earned based on performance goals
achieved prior to the date of termination. All payments under this Section 13.3
shall be subject to Section 5.5. Additionally, Employee’s outstanding options
shall benefit from twelve months of additional vesting as of the date of
termination.

     

         For the purposes of this Section 13.3, “Cause”
shall mean any material breach of the Agreement as set forth in section 13.1(a)
– (c) above.

     

         Except as specifically set forth in this
Section 13.3, the Company shall have no further obligation hereunder or
otherwise with respect to Employee in the event the Company terminates
Employee’s employment without Cause.

     

    7 

     

    

    
    

         13.4

     

         (a) Employee may
terminate Employee’s employment with the Company at any time for Good Reason (as
defined below), in which event the Company shall, contingent upon Employee
signing a full general release of all known and unknown claims, provide Employee
the same compensation and benefits specified in Section 13.3 above.

     

         For purposes of this Section 13.4, “Good
Reason” means the occurrence of any of the following events or circumstances:
(A) a substantial adverse change in Employee’s authority, status, the nature of
Employee’s duties or responsibilities; (B) a reduction by the Company in
Employee’s Base Salary or the additional compensation as outlined in Section
5.3; (C) a failure by the Company to pay compensation or benefits to Employee
when due; or (D) the relocation of the office of the Company where Employee is
principally employed to a location which is more than fifty (50) miles from such
office (except for required travel on the Company’s business to an extent
substantially consistent with Employee’s customary business travel obligations
in the ordinary course of business prior to the date hereof). 

     

         (b) Except as otherwise provided herein, Employee may terminate
Employee’s employment with the Company for any reason. In the event that
Employee terminates his employment for other than Good Reason, the Company shall
have no further obligation hereunder or otherwise with respect to Employee
(except payment of Employee’s Base Salary under Section 5.1 and benefits under
Section 6 accrued through the date of termination). Notwithstanding the
foregoing, and because Employee acknowledges and understands that his agreement
to be employed by the Company was a material inducement to and condition
precedent to the Company’s consummation of the Merger Agreement, if Employee
terminates his employment with the Company without Good Reason prior to the
first anniversary of the date of this Employment Agreement, Employee shall pay
to the Company, within three (3) business days of the date of such termination,
a buy-out and release fee of $500,000.

     

         (c) All payments made to Employee under this Section 13.4 shall be
subject to Section 5.5. 

     

         13.5. Termination
of the Employment Term in accordance with this Section 13, or expiration of the
Employment Term, will not affect the provisions of this Employment Agreement
that survive such termination, including, without limitation, the provisions in
Sections 9, 10 and 11 and will not limit either party’s ability to pursue
remedies at law or equity. 

     

    8 

     

    

    
    

         14. GENERAL PROVISIONS.

     

         14.1 Notices. All
notices, consents, waivers, and other communications under this Employment
Agreement must be in writing and will be deemed to have been duly given (a) when
delivered by hand; (b) when sent by facsimile, provided that a copy is mailed by
U.S. certified mail, return receipt requested; (c) three days after being sent
by Certified U.S. Mail, return receipt requested; or (d) one day after deposit
with a nationally recognized overnight delivery service, in each case to the
appropriate addresses and facsimile numbers set forth below (or to such other
addresses and facsimile numbers as a party may designate by notice to the other
parties): 

     

         If to Employee, to the address set forth on the signature page hereto;

     

         If to the Company, to: 

     

    
      	          	Unify Corporation
	 	1420 Rocky Ridge Drive, Suite
    380
	
            	Roseville, CA 95661
	
            	Attention:	Todd E. Wille
	
            	Facsimile No.     	(916) 218-4377

    

         14.2 Waiver. The
rights and remedies of the parties to this Employment Agreement are cumulative
and not alternative. Neither the failure nor any delay by any party in
exercising any right, power, or privilege under this Employment Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power,
or privilege will preclude any other or further exercise of such right, power,
or privilege or the exercise of any other right, power, or
privilege.

     

         14.3 Entire Agreement and Modification. This Employment Agreement supersedes all
prior oral or written agreements between the parties with respect to its subject
matter and constitutes (along with the documents referred to in this Employment
Agreement) a complete and exclusive statement of the terms of the agreement
between the parties with respect to its subject matter. This Employment
Agreement may not be amended except by a written agreement executed by the party
to be charged with the amendment.

     

         14.4 Assignments, Successors, and No Third-Party
Rights. Neither party may
assign any of its rights under this Employment Agreement without the prior
consent of the other party, except that Company may assign all (but not part) of
its rights and obligations under this Employment Agreement to any majority-owned
subsidiary of Company, provided that the Company guarantees the performance by
the subsidiary of the subsidiary’s obligations hereunder. Subject to the
preceding sentence, this Employment Agreement will apply to, be binding in all
respects upon, and inure to the benefit of the successors and permitted assigns
of the parties. Nothing expressed or referred to in this Employment Agreement
will be construed to give any person other than the parties to this Employment
Agreement any legal or equitable right, remedy, or claim under or with respect
to this Employment Agreement or any provision of this Employment
Agreement.

     

         14.5 Severability.
If any provision of this Employment Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of this Employment
Agreement will remain in full force and effect. Any provision of this Agreement
held invalid or unenforceable only in part or degree will remain in full force
and effect to the extent not held invalid or unenforceable. 

     

         14.6 Section Headings, Construction. The headings of Sections in this Employment
Agreement are provided for convenience only and will not affect its construction
or interpretation. All references to “Sections” refer to the corresponding
Sections of this Employment Agreement. All words used in this Employment
Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise
expressly provided, the word “including” does not limit the preceding words or
terms. 

     

    9 

     

    

    
    

         14.7 Governing Law;
Consent to Jurisdiction.

     

         (a) This Employment Agreement shall be construed in accordance with and
governed by the laws of the State of California, without giving effect to the
principles of conflicts of law thereof. 

     

         (b) Each of Employee and the Company hereby irrevocably submits in any
suit, action or proceeding arising out of or related to this Employment
Agreement or any other instrument, document or agreement executed or delivered
in connection herewith and the transactions contemplated hereby and thereby,
whether arising in contract, tort, equity or otherwise, to the jurisdiction of
the Superior Court in and for the City and County of San Francisco, or the
Superior Court in and for the County of Sacramento. Where the nature of the
action or proceedings or the claims or defenses asserted therein create
jurisdiction in the United States District Court, Employee or the Company may
file the action in or remove the action to the United States District Court for
the Northern District of California, San Francisco Division, or the United
States District Court for the Eastern District of California, Sacramento
Division. Employee and the Company waive any objection to the location of the
court in any proceeding commenced or removed in accordance with this Section
14.7, including, without limitation, any objection to venue or based on
forum non conveniens. 

     

         14.8 Counterparts.
This Employment Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Employment Agreement and all
of which, when taken together, will be deemed to constitute one and the same
agreement. 

     

         14.9 No Strict Construction. The language used in this Employment Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rule of
strict construction will be applied against any party. 

     

    *  * 
*  * 

     

    10 

     

    

    
    

         IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first
written above. 

     

    
      	THE COMPANY:
	 
	Unify Corporation
	 
	By:	/s/ Todd E. Wille
	Name:  	Todd E. Wille
	Its:	President and Chief Executive
Officer
	 
	EMPLOYEE:

 

      	 /s/ Kurt
      Jensen
	Kurt Jensen
	Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]