Document:

exv10w34

Exhibit 10.34

Employment Agreement

          This Agreement is entered into as of August 21, 2007, by and between Robert
Jurkowski (the “Employee”) and Selectica, Inc., a Delaware corporation (the
“Company”).

          1. Duties and Scope of Employment.

          (a) Position. For the term of his employment under this Agreement (the “Employment”), the
Company agrees to employ the Employee in the position of Chief Executive Officer. The Employee
shall report to the Company’s Board of Directors (the “Board”).

          (b) Obligations to the Company. During his Employment, the Employee (i) shall devote his full
business efforts and time to the Company, (ii) shall not engage in any other employment, consulting
or other business activity that would create a conflict of interest with the Company, (iii) shall
not assist any person or entity in competing with the Company or in preparing to compete with the
Company and (iv) shall comply with the Company’s policies and rules, as they may be in effect from
time to time. However, the Employee may serve on the boards of directors of a reasonable number of
other corporations, subject to the Board’s approval.

          (c) No Conflicting Obligations. The Employee represents and warrants to the Company that he
is under no obligations or commitments, whether contractual or otherwise, that are inconsistent
with his obligations under this Agreement. The Employee represents and warrants that he will not
use or disclose, in connection with his Employment, any trade secrets or other proprietary
information or intellectual property in which the Employee or any other person has any right, title
or interest and that his Employment will not infringe or violate the rights of any other person.
The Employee represents and warrants to the Company that he has returned all property and
confidential information belonging to any prior employer.

          2. Cash and Incentive Compensation.

          (a) Salary. The Company shall pay the Employee as compensation for his services a base salary
at a gross annual rate of not less than $360,000. Such salary shall be payable in accordance with
the Company’s standard payroll procedures. (The annual compensation specified in this Subsection
(a), together with any increases in such compensation that the Company may grant from time to time,
is referred to in this Agreement as “Base Salary.”)

          (b) Incentive Bonuses. The Employee shall be eligible to be considered for semi-annual
incentive bonuses with a target amount equal to 25% of his Base Salary. Such bonuses (if any)
shall be awarded based on the attainment of strategic objectives by the Company. Such objectives
shall be established by the Compensation Committee of the Board, and its determinations with
respect to such bonuses shall be final and binding.

 

 

          (c) Stock Option. As soon as reasonably practicable on or after the date of this Agreement,
the Company shall grant the Employee additional options to purchase 600,000 shares
of the Company’s Common Stock (the “Options”). The Options shall be granted under the
Company’s 1999 Equity Incentive Plan, as amended (the “Plan”). The exercise price per share of the
Options shall be equal to the closing price per share of the Company’s Common Stock on the date of
grant. The term of the Options shall be 10 years, subject to earlier expiration in the event of
the termination of the Employee’s Employment. The Options shall become exercisable for one-quarter
of the total number of shares when the Employee completes 12 months of continuous service following
the date of this Agreement and for 1/48th of the total number of shares when he
completes each month of continuous service thereafter. In addition, the Options shall immediately
become exercisable for one-half of the remaining unexercisable shares if the Company is subject to
a Change in Control within 12 months after the date of this Agreement. (Certain terms are defined
in Section 12.) The Options shall immediately become exercisable for all of the shares if the
Company is subject to a Change in Control more than 12 months after the date of this Agreement.
All shares purchased by exercising the Options shall be fully vested. The grant of the Options
shall be subject to the other terms and conditions set forth in the Plan and the Company’s standard
form of Stock Option Agreement.

          (d) Restricted Stock Units. As soon as reasonably practicable on or after the date of this
Agreement, the Company shall grant the Employee 400,000 units representing shares of the Company’s
Common Stock (the “Units”). The Units shall be granted under the Plan. The Units shall vest based
on the attainment of strategic objectives by the Company. Such objectives shall be established by
the Compensation Committee of the Board, and its determinations with respect to the vesting of the
Units shall be final and binding. In addition, one-half of the remaining unvested Units shall
immediately vest if the Company is subject to a Change in Control within 12 months after the date
of this Agreement. All of the Units shall immediately vest if the Company is subject to a Change
in Control more than 12 months after the date of this Agreement. The grant of the Units shall be
subject to the other terms and conditions set forth in the Plan and the Company’s form of Stock
Unit Agreement.

          3. Vacation and Employee Benefits. During his Employment, the Employee shall be eligible for
paid vacations in accordance with the Company’s vacation policy, as it may be amended from time to
time. During his Employment, the Employee shall also be eligible to participate in the employee
benefit plans maintained by the Company, subject in each case to the generally applicable terms and
conditions of the plan in question and to the determinations of any person or committee
administering such plan.

          4. Business Expenses. During his Employment, the Employee shall be authorized to incur
necessary and reasonable travel, entertainment and other business expenses in connection with his
duties hereunder. The Company shall reimburse the Employee for such expenses upon presentation of
an itemized account and appropriate supporting documentation, all in accordance with the Company’s
generally applicable policies. The Company shall also pay, or reimburse the Employee for, his
membership fees for Vistage International, Inc.

          5. Term of Employment.

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          (a) Termination of Employment. The Company may terminate the Employee’s Employment at any
time and for any reason (or no reason), and with or without
Cause, by giving the Employee notice in writing. The Employee may terminate his Employment by
giving the Company 30 days’ advance notice in writing. The Employee’s Employment shall terminate
automatically in the event of his death. The termination of the Employee’s Employment shall not
limit or otherwise affect his obligations under Section 7.

          (b) Employment at Will. The Employee’s Employment with the Company shall be “at will,”
meaning that either the Employee or the Company shall be entitled to terminate the Employee’s
Employment at any time and for any reason, with or without Cause. Any contrary representations
that may have been made to the Employee shall be superseded by this Agreement. This Agreement
shall constitute the full and complete agreement between the Employee and the Company on the “at
will” nature of the Employee’s Employment, which may only be changed in an express written
agreement signed by the Employee and a duly authorized officer of the Company.

          (c) Rights upon Termination. Except as expressly provided in Section 6, upon the termination
of the Employee’s Employment, the Employee shall only be entitled to the compensation, benefits and
expense reimbursements that the Employee has earned under this Agreement before the effective date
of the termination. The payments under this Agreement shall fully discharge all responsibilities
of the Company to the Employee.

          6. Termination Benefits.

          (a) Preconditions. Any other provision of this Agreement notwithstanding, this Section 6
shall not apply unless the following requirements are satisfied:

          (i) The Employee has executed a general release of all claims that he may then
have against the Company or persons affiliated with the Company. The release shall
be in a form mutually agreed upon by the Company and the Employee within 30 days
after his Employment termination date. The Employee shall execute the release
within the period set forth in the form.

          (ii) The Employee has returned all property of the Company in the Employee’s
possession.

          (iii) If requested by the Board, the Employee has resigned as a member of the
Board and as a member of the Boards of Directors of all subsidiaries of the Company,
to the extent applicable.

          (b) Involuntary Termination. If, during the term of this Agreement, the Employee is subject
to an Involuntary Termination, then the Company shall pay the Employee a severance benefit equal to
his annual Base Salary at the rate in effect at the time of the termination of Employment (the
“Severance Benefit”). One-half of the Severance Benefit shall be paid in a lump sum within 10
business days after the termination of Employment, and the balance of the Severance Benefit shall
be paid in equal monthly installments during the 12-month period following the termination of his
Employment.

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          The amount of the Severance Benefit shall be reduced by the amount of any severance pay or pay
in lieu of notice that the Employee receives from the Company under a federal or state statute
(including, without limitation, the Worker Adjustment and Retraining Notification Act).

          If the Company determines that the Employee is a “specified employee” under Section
409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations
thereunder when his Employment terminates, then (i) payments of the Severance Benefit, to the
extent not exempt from Section 409A of the Code, shall commence on the earliest practicable date
that occurs more than six months after the Employment termination date and (ii) the payments that
otherwise would have been made during the first six months following the Employment termination
date shall be made in a lump sum on the first day of the seventh month after the Employment
termination date.

          (c) Health Insurance. If Subsection (b) above applies, and if the Employee elects to continue
health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for
himself and, if applicable, his dependents following the termination of his Employment, then the
Company shall pay the employer portion of the monthly premium under COBRA for the Employee and, if
applicable, such dependents until the earliest of (i) the close of the 12-month period following
the termination of his Employment, (ii) the expiration of the Employee’s continuation coverage
under COBRA or (iii) the date when the Employee receives substantially equivalent health insurance
coverage in connection with new employment or self-employment. If continuation coverage under
COBRA becomes unavailable for reasons beyond the Employee’s control during the 12-month period
following the termination of his Employment, then the Company shall at that time pay the Employee a
lump sum equal to the monthly amount that the Company paid most recently under this Subsection (c)
multiplied by the number of remaining months in such 12-month period.

          (d) Pro Rata Bonus. If Subsection (b) above applies, then the Company shall also pay the
Employee the product of (i) the Employee’s target bonus under Section 2(b) for the fiscal year in
which his Employment terminates multiplied by (ii) a fraction, the numerator of which is the number
of days for which the Employee was employed by the Company during such fiscal year and the
denominator of which is 365.

          7. Non-Solicitation and Non-Disclosure.

          (a) Non-Solicitation. During the period commencing on the date of this Agreement and
continuing until the first anniversary of the date when the Employee’s Employment terminated for
any reason, the Employee shall not directly or indirectly, personally or through others, solicit or
attempt to solicit (on the Employee’s own behalf or on behalf of any other person or entity) either
(i) the employment of any employee or consultant of the Company or any of the Company’s affiliates
or (ii) the business of any customer of the Company or any of the Company’s affiliates.

          (b) Non-Disclosure. The Employee shall enter into a Proprietary Information and Inventions
Agreement with the Company, in the Company’s standard form (the “PIIA”), which is incorporated
herein by this reference.

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          8. Successors.

          (a) Company’s Successors. This Agreement shall be binding upon any successor (whether direct
or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all
or substantially all of the Company’s business and/or assets. For all purposes under this
Agreement except Section 7(a), the term “Company” shall include any successor to the Company’s
business and/or assets which becomes bound by this Agreement.

          (b) Employee’s Successors. This Agreement and all rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees.

          9. Arbitration. Any controversy or claim arising out of this Agreement and any and all claims
relating to the Employee’s Employment with the Company shall be settled by final and binding
arbitration. The arbitration shall take place in Santa Clara County, California, or, at the
Employee’s option, the County in which the Employee primarily worked when the arbitrable dispute or
claim first arose. The arbitration shall be administered by the American Arbitration Association
under its National Rules for the Resolution of Employment Disputes. Any award or finding shall be
confidential. The Employee and the Company agree to provide one another with reasonable access to
documents and witnesses in connection with the resolution of the dispute. The Employee and the
Company shall share the costs of arbitration equally, except that the Company shall bear the cost
of the arbitrator’s fee and any other type of expense or cost that the Employee would not be
required to bear if the Employee were to bring the dispute or claim in court. Each party shall be
responsible for its own attorneys’ fees; provided, however, that the arbitrator shall award to the
prevailing party in any such dispute its attorneys’ fees and costs, in addition to all other
appropriate relief. This Section 9 shall not apply to claims for workers’ compensation benefits or
unemployment insurance benefits. Injunctive relief and other provisional remedies shall be
available in accordance with Section 1281.8 of the California Code of Civil Procedure.

          10. Golden Parachute Excise Tax. In the event that any payment or benefit received by the
Employee pursuant to this Agreement (a “Payment”) would constitute a “parachute payment” within the
meaning of Section 280G of Code and, but for this sentence, would be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then the Employee shall have the option of
having such Payment be equal to a reduced amount. Such reduced amount shall be calculated as
either (i) the largest portion of the Payment that would result in no portion of the Payment being
subject to the Excise Tax or (ii) the largest portion, up to and including the total, of the
Payment, whichever amount, after taking into account all applicable federal, state and local
employment taxes, income taxes and the Excise Tax (all computed at the highest applicable marginal
rate), results in the Employee’s receipt, on an after-tax basis, of the greater amount of the
Payment, notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.
If a reduction in payments or benefits constituting
“parachute payments” is necessary so that the Payment equals the reduced amount, the reduction
shall occur in the following order: a reduction of cash payments; cancellation of accelerated
vesting of stock awards, if applicable; and reduction of employee benefits. The Employee’s

5

 

election to take a reduced amount, if any, shall be irrevocable and shall be made prior to the time
such payment would otherwise be due.

          If the Company reasonably determines that this Section 10 may apply, it shall engage an
independent accounting firm to perform the foregoing calculations. The Company shall bear all
expenses with respect to the determinations by such accounting firm required to be made hereunder.
The accounting firm engaged to make the determinations hereunder shall provide its calculations,
together with detailed supporting documentation, to the Employee and the Company, at least five
days in advance of the date on which the Employee’s right to a Payment is triggered (if requested
at that time by the Employee or the Company) or at such other time as requested. Any good-faith
determinations of the accounting firm made hereunder shall be final, binding and conclusive upon
the Employee and the Company.

          11. Miscellaneous Provisions.

          (a) Notice. Notices and all other communications contemplated by this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered, when delivered by
FedEx with delivery charges prepaid, or when mailed by U.S. registered or certified mail, return
receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be
addressed to him at the home address that he most recently communicated to the Company in writing.
In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and
all notices shall be directed to the attention of its Secretary.

          (b) Modifications and Waivers. No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing and signed by the
Employee and by an authorized officer of the Company (other than the Employee). No waiver by
either party of any breach of, or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other condition or provision or of the same
condition or provision at another time.

          (c) Whole Agreement. No other agreements, representations or understandings (whether oral or
written and whether express or implied) that are not expressly set forth in this Agreement have
been made or entered into by either party with respect to the subject matter hereof. This
Agreement, the Stock Option Agreement described in Section 2(c), the Stock Unit Agreement described
in Section 2(d) and the PIIA contain the entire understanding of the parties with respect to the
subject matter hereof.

          (d) Taxes. All payments made under this Agreement shall be subject to reduction to reflect
taxes or other charges required to be withheld by law. The Company shall not have a duty to design
its compensation policies in a manner that minimizes the Employee’s tax liabilities, and the
Employee shall not make any claim against the Company or the Board related to tax liabilities
arising from the Employee’s compensation.

          (e) Choice of Law and Severability. This Agreement shall be interpreted in accordance with
the laws of the State of California (except their provisions governing the choice of law). If any
provision of this Agreement becomes or is deemed invalid, illegal or

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unenforceable in any applicable jurisdiction by reason of the scope, extent or duration of its coverage, then such
provision shall be deemed amended to the minimum extent necessary to conform to applicable law so
as to be valid and enforceable or, if such provision cannot be so amended without materially
altering the intention of the parties, then such provision shall be stricken and the remainder of
this Agreement shall continue in full force and effect. If any provision of this Agreement is
rendered illegal by any present or future statute, law, ordinance or regulation (collectively the
“Law”), then such provision shall be curtailed or limited only to the minimum extent necessary to
bring such provision into compliance with the Law. All the other terms and provisions of this
Agreement shall continue in full force and effect without impairment or limitation.

          (f) No Assignment. This Agreement and all rights and obligations of the Employee hereunder
are personal to the Employee and may not be transferred or assigned by the Employee at any time.
The Company may assign its rights under this Agreement to any entity that assumes the Company’s
obligations hereunder in connection with any sale or transfer of all or a substantial portion of
the Company’s assets to such entity.

          (g) Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          12. Definitions.

          (a) Cause. For all purposes under this Agreement, “Cause” shall mean:

          (i) An unauthorized use or disclosure by the Employee of the Company’s
confidential information or trade secrets, which use or disclosure causes material
harm to the Company;

          (ii) A material breach by the Employee of any agreement between the Employee
and the Company;

          (iii) A material failure by the Employee to comply with the Company’s written
policies or rules;

          (iv) The Employee’s conviction of, or plea of “guilty” or “no contest” to, a
felony under the laws of the United States or any State thereof;

          (v) The Employee’s gross negligence or willful misconduct;

          (vi) A continuing failure by the Employee to perform assigned duties after
receiving written notification of such failure from the Board; or

          (vii) A failure by the Employee to cooperate in good faith with a governmental
or internal investigation of the Company or its directors, officers or employees, if
the Company has requested the Employee’s cooperation.

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          (b) Change in Control. For all purposes under this Agreement, “Change in Control” shall mean:

          (i) The consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization, if persons who were not
stockholders of the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other
reorganization 50% or more of the voting power of the outstanding securities of each
of (A) the continuing or surviving entity and (B) any direct or indirect parent
corporation of such continuing or surviving entity;

          (ii) The sale, transfer or other disposition of all or substantially all of the
Company’s assets;

          (iii) A change in the composition of the Board, as a result of which fewer than
50% of the incumbent directors are directors who either:

          (A) Had been directors of the Company on the date 24 months
prior to the date of such change in the composition of the Board
(the “Original Directors”); or

          (B) Were appointed to the Board, or nominated for election to
the Board, with the affirmative votes of at least a majority of the
aggregate of (I) the Original Directors who were in office at the
time of their appointment or nomination and (II) the directors whose
appointment or nomination was previously approved in a manner
consistent with this Subparagraph (B); or

          (iv) Any transaction as a result of which any person is the “beneficial owner”
(as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended),
directly or indirectly, of securities of the Company representing at least 50% of
the total voting power represented by the Company’s then outstanding voting
securities. For purposes of this Paragraph (iv), the term “person” shall have the
same meaning as when used in Sections 13(d) and 14(d) of such Act but shall exclude
(A) a trustee or other fiduciary holding securities under an employee benefit plan
of the Company or of a parent or subsidiary of the Company and (B) a corporation
owned directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of the common stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to change the state
of the Company’s incorporation or to create a holding company that will be owned in substantially
the same proportions by the persons who held the Company’s securities immediately before such
transaction.

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          (c) Involuntary Termination. For all purposes under this Agreement, “Involuntary Termination”
shall mean a termination of the Employee’s service that occurs by reason of (i) his involuntary
dismissal or discharge by the Company for reasons other than Cause or (ii) his voluntary
resignation following (A) a change in his position with the Company that materially reduces his
level of responsibility, (B) a reduction in his level of Base Salary, (C) a relocation of his place
of employment by more than 35 miles or (D) the failure of any successor to the Company to assume
the Company’s obligations under this Agreement, provided and only if such change, reduction or
relocation is effected by the Company without the Employee’s consent.

          IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Selectica, Inc.

 	 
	 	By  	/s/
Bill Roeschlein	 
	 	 	Title: 	Chief
Financial Officer	 
	 	 	 	 
	 

9exv10w35

Exhibit 10.35

January 9, 2008

Mr. Michael R. Shaw

C/O SpencerStuart

Dear Mike:

     On behalf of Selectica, Inc. (the “Company”), I am pleased to offer you the position of Vice
President/General Manager for the Sales Configuration Solutions Business Unit, as a regular
full-time employee, reporting directly to the Chairman and CEO, commencing on or before January 14,
2008. The terms and conditions of your offer will be as follows:

Salary: This position is considered salaried exempt, with an annual base salary of
$250,000.00, which will be paid semi-monthly in the amount of $10,416.67, less applicable taxes and
withholdings according to the Company’s standard payroll procedures. The Company performs annual
salary and performance reviews and endeavors to remain competitive with industry compensation
standards. By signing this letter agreement, you represent and warrant to the Company that you are
under no contractual commitments that are inconsistent with your obligations to the Company.

Incentive Plan: You will eligible to participate in the Company’s formal Incentive Plan,
which is based upon both pre-determined Company operational goals as well as reasonable goals
relevant to your position (MBO). The details of both the corporate goals as well as the MBOs will
be communicated and agreed between you and your manager within your first month of employment with
Selectica. The Incentive Plan is based upon percentage of annual salary, and this position is
eligible for an incentive of 25% of annual salary. Therefore, for the balance of FY’08, this
position will be eligible for an annual incentive of $62,500, calculated and paid quarterly against
established goals as detailed above. You will also be eligible for an overachievement incentive
TBD should the annual revenue goal for FY’08 be exceeded.

Restricted Shares: You will receive 75,000 restricted shares of the Company’s Common Stock
under the Plan (the “Shares”). All of the Shares will vest on the earliest Permissible Trading Day
after the close of the second consecutive fiscal quarter for which the Company’s consolidated
financial statements, as reported on a Form 10-K or Form 10-Q filed with the Securities and
Exchange Commission, show that the Company earned net income. In addition, (a) 50% of the Shares
will vest if the Company is subject to a Change in Control and (b) 50% of the Shares will vest if
(i) the Company is subject to a Change in Control and (ii) you are subject to an Involuntary
Termination within 12 months after the Change in Control. The grant of the Shares will be subject
to the other terms and conditions set forth in the Plan and the Company’s form of Restricted Stock
Agreement. A “Permissible Trading Day” is a day on which you are able to sell shares of the
Company’s Common Stock in a public market without violating applicable laws or Company policies, as
defined more specifically in your Restricted Stock Agreement.

Stock Options: Subject to Board approval, you will receive an option to purchase 150,000
shares of the Company’s Common Stock at an exercise price per share equal to the fair market value
of the Company’s Common Stock per share on the day when your options are granted by the Company’s
Board of Directors. The

Confidential

Page 1 of 3

 

term of the option will be 10 years, subject to earlier expiration in the event of the termination
of your service. You will vest in 25% of the option shares after 12 months of continuous service,
and the remaining balance will vest in monthly installments over the next 36 months of continuous
service, as described in the applicable stock option agreement. The option will become exercisable
in full if the Company is subject to a Change in Control, as defined in the Company’s 1999 Equity
Incentive Plan (the “Plan”), after you have completed your first 12 months of continuous service.
The option will also become exercisable in full if (a) the Company is subject to a Change in
Control during your first 12 months of continuous service and (b) you are subject to an Involuntary
Termination, as defined in the Plan, within 12 months after the Change in Control. The grant of the
option will be subject to the other terms and conditions set forth in the Plan and in the Company’s
standard form of Stock Option Agreement.

Severance Benefits: You and the Company will enter into a Severance Agreement, the form of
which is enclosed as Exhibit A. The Severance Agreement provides, among other things, for (a) the
continuation of your base salary and health insurance benefits for six months if you are discharged
without Cause at any time or (b) the continuation of your base salary and health insurance benefits
for 12 months if you are discharged without Cause or resign for Good Reason within 12 months after
a Change in Control. (The capitalized terms are defined in the Severance Agreement.) You will be
required to execute a release in the form attached to the Severance Agreement as a condition of
receiving these benefits.

Benefits: You will be entitled to receive employee benefits, including PTO and holidays,
under the Company’s standard employee benefits program, as it may be amended from time to time.
Your eligibility to receive employee benefits will be subject in each case to the generally
applicable terms and conditions of the benefit plan in question and to the determination of any
person or committee administering such plan.

     Your employment with the Company will be “at will” meaning that either you or the Company will
be entitled to terminate our employment at any time for any reason, with or without cause. Any
contrary representations that have been made to you are superseded by this offer. This is the full
and complete agreement between you and the Company on this term. Although your job duties, title,
compensation and benefits, as well as the Company’s personnel policies and procedures, may change
from time to time, the “at-will” nature of your employment may only changed in an express written
agreement signed by you and an authorized officer of the Company.

     During the period that you render services to the Company, you will not engage in any
employment, business or activity that is in any way competitive with or otherwise conflicts with
the business or proposed business of the Company. While you render services to the Company, you
also will not assist any other person or organization in competing with the Company, in preparing
to compete with the Company or in hiring any employees of the Company.

     Other than your Stock Option and Restricted Stock Agreements (the terms of which shall be
determined by the Company’s Board of Directors in its sole discretion and evidenced and governed by
the applicable stock option agreement and 1999 Equity Incentive Plan) as well as your Severance
Agreement, this letter and all of the exhibits attached hereto contain all of the terms of your
employment with the Company and supersede any other understandings or agreements, oral or written,
between you and the Company.

     Any additions or modifications of these terms will have to be in writing and signed by you and
an officer of the Company. The terms of this letter agreement and the resolution of any disputes
will be governed by California law.

     On your first day of work, please bring with you evidence of your U.S. citizenship or proof of
your legal right to live and work in this country. We are required by federal law to examine
documentation of your employment eligibility within three business days after you begin work.

Confidential

Page 2 of 3

 

     We believe there is a tremendous opportunity in your joining Selectica’s Executive Team at
this time. We hope that you find the foregoing terms acceptable, and look forward to the start of
your new career with the Company.

     This offer is contingent upon the successful completion of a reference and background check.
Please find a background check consent form enclosed to be returned to Karen O’Brien in Human
Resources. As with all Company employees, you will be required, as a condition of your employment
with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement
as well as the Arbitration Agreement. This offer is effective as of January 9, 2008. You may
indicate your agreement with these terms and accept this offer by signing and dating both the
enclosed duplicate original of this letter as well as the enclosed Proprietary Information and
Inventions Agreement and the Arbitration Agreement and returning them to Karen O’Brien.

This offer of employment supersedes any prior offers of employment with Selectica and will expire
at the close of business on January 11, 2008.

Sincerely,

SELECTICA, INC.

Robert Jurkowski

Chairman & CEO

Agreed and
accepted on January 10, 2008

	 	 	 	 	 	 	 
	/s/ Michael R. Shaw/ 

Signature

	 	 
	 	January 14, 2008 

Start Date
	 	 
	 
	 	 	 	 	 	 
	Michael R. Shaw 

(Print Name)
	 	 	 	 	 	 

Enclosures:

Change In Control Agreement

Proprietary Information and Inventions Agreement

Background Consent Form

Arbitration Agreement

Confidential

Page 3 of 3

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