Document:

December
14,  2006

Mr. William Lyons
2601 North Ocean
Boulevard
Gulf Stream, FL
33483

Re:    Temporary Salary
Adjustment

Dear Bill:

By signing in the space
provided below, you agree to a reduction in your annual salary for the
calendar year 2007 from $400,000 to $100,000. Salary payments will
continue to be made on the 15th  and last day of each
month in accordance with the Company’s ordinary payroll
practices. Effective January  1,  2008, assuming you remain
in AXS-One’s employ, your annual salary will revert to the
current rate of $400,000, unless mutually agreed
otherwise.

Additionally, in the event there is a Change of
Control, as defined in Section 7(e) of your Employment Agreement dated
April  21,  2004, during the calendar year 2007, your
annual salary will revert to the current rate of $400,000. Should your
employment relationship with AXS-One terminate during the calendar year
2007 under circumstances whereby you would be entitled to severance
benefits pursuant to Section 7 of the aforementioned Employment
Agreement, such benefits will be calculated at your current annual
salary rate of $400,000.

In conjunction with this salary
reduction, you are being awarded 440,732 restricted shares of the
Company’s common stock pursuant to the 2005 Stock Incentive
Plan, as set forth in a Restricted Stock Agreement provided
herewith.

If these terms are acceptable, please sign and date
this letter below.

Very truly yours,

AXS-ONE,
INC.

By: /s/ Joseph P.
Dwyer           

       Joseph P.
Dwyer
       Chief Financial Officer

ACCEPTED
AND
AGREED:

/s/
William
Lyons         12-14-06   

William
Lyons                DatedDecember
14,  2006

Mr.  Joseph  P.
Dwyer
3 Cordwood Court
East Northport, NY
11731

Re:    Temporary Salary
Adjustment

Dear Joe:

By signing in the space
provided below, you agree to a reduction in your annual salary for the
calendar year 2007 from $250,000 to $150,000. Salary payments will
continue to be made on the 15th and last day of each month
in accordance with the Company’s ordinary payroll practices.
Effective January  1,  2008, assuming you remain in
AXS-One’s employ, your annual salary will revert to the current
rate of $250,000, unless mutually agreed otherwise.

Additionally,
in the event there is a Change of Control, as defined in your
employment letter dated December  22,  2004, during the
calendar year 2007, your annual salary will revert to the current rate
of $250,000. Should your employment relationship with AXS-One terminate
during the calendar year 2007 under circumstances whereby you would be
entitled to the Severance Package provided for by the aforementioned
employment letter, severance benefits will be calculated at your
current annual salary rate of $250,000.

In conjunction with this
salary reduction, you are being awarded 146,911 restricted shares of
the Company’s common stock pursuant to the 2005 Stock Incentive
Plan, as set forth in a Restricted Stock Agreement provided
herewith.

If these terms are acceptable, please sign and date
this letter below.

Very truly yours,

AXS-ONE,
INC.

By: /s/ William
Lyons            

        William
Lyons
        Chief Executive Officer

ACCEPTED AND
AGREED:

/s/
Joseph P.
Dwyer         12-14-06    

Joseph
P.
Dwyer                DatedDecember
14,  2006

Mr.  Elias  Typaldos
15
Prospect Avenue
Montclair, NJ
07042

Re:    Temporary Salary
Adjustment

Dear Elias:

By signing in the space
provided below, you agree to a reduction in your annual salary for the
calendar year 2007 from $300,000 to $250,000. Salary payments will
continue to be made on the 15th  and last day of each
month in accordance with the Company’s ordinary payroll
practices. Effective January  1,  2008, assuming you remain
in AXS-One’s employ, your annual salary will revert to the
current rate of $300,000, unless mutually agreed otherwise.

In
the event there is a Change of Control, as defined in the AXS-One Inc.
2005 Stock Incentive Plan, during the calendar year 2007, your annual
salary will revert to the current rate of $300,000. Further, if you are
terminated without cause during 2007, severance payments would be based
on 2006 salary levels.

In conjunction with this salary reduction,
you are being awarded 73,455 restricted shares of the Company’s
common stock pursuant to the 2005 Stock Incentive Plan, as set forth in
a Restricted Stock Agreement provided herewith.

If these terms
are acceptable, please sign and date this letter
below.

Very truly yours,

AXS-ONE, INC.

By:    /s/ William
Lyons            

            William Lyons

           Chief Executive Officer

ACCEPTED AND
AGREED:

/s/
Elias
Typaldos        12-14-06    

Elias
Typaldos                DatedAXS-ONE
INC.
RESTRICTED STOCK AGREEMENT
2005 STOCK INCENTIVE
PLAN

This Agreement (this
‘‘Agreement’’) is made as of
December  14,  2006 (the ‘‘Date of
Grant’’), by and between AXS-One Inc., a Delaware
corporation (the
‘‘Company’’), and
                                 (the
‘‘Grantee’’).

1.    Grant
of Restricted Stock.     Subject to and upon the terms,
conditions, and restrictions set forth in this Agreement and in the
AXS-One Inc. 2005 Stock Incentive Plan (the
‘‘Plan’’), the Company
hereby grants to the Grantee                  shares of
Common Stock of the Company. These shares are referred to in this
Agreement as ‘‘Restricted
Shares’’ during the applicable Restriction Period
(as defined in paragraph 4(c) hereof). Acceptance of the Restricted
Shares shall be deemed to be agreement by the Grantee to the terms and
conditions set forth in this Agreement and the Plan. Certificates
representing the Restricted Shares may not be sold or otherwise
transferred and must be held by the Grantee until the end of the
applicable Restriction Period. Until such terms and conditions have
lapsed with respect to any Restricted Shares, the certificate for such
shares will, at the Company’s option, remain in the physical
possession of the Company or bear a legend to the effect that they were
issued or transferred subject to, and may be sold or otherwise disposed
of only in accordance with, the terms of this Agreement and the
Plan.

2.    Stockholder Status.
    Effective upon the Date of Grant, the Grantee will be a holder of
record of the Restricted Shares and will have all rights of a
stockholder with respect to such shares (including the right to vote
such shares at any meeting of stockholders of the Company and the right
to receive all dividends paid with respect to such shares), subject
only to the terms and conditions imposed by this Agreement and the
Plan.

3.    Effect of Changes in
Capitalization.    The number of Restricted Shares is subject to
adjustment as provided in Section 4.2 of the Plan. Any additional or
different shares or securities issued as the result of such an
adjustment will be held or delivered in accordance with this Agreement
and will be deemed to be included within the term
‘‘Restricted
Shares’’.

4.    Lapse of
Restrictions.

(a)    The restrictions set forth in
paragraph 5 below will lapse to the extent of 50% of the
Restricted Shares on each of the first two anniversaries of the Date of
Grant.

(b)    Notwithstanding paragraph 4(a), the
restrictions set forth in paragraph 5 below will lapse on all
Restricted Shares at the close of business on the date (i) on which a
Change in Control of the Company (as defined in Section 11.2 of the
Plan) shall occur, (ii) of the Termination of Employment or Termination
of Consultancy of the Grantee by the Company other than for cause,
(iii) on which the Grantee is deemed to have a Disability (as such term
is defined in the Plan), or (iv) of the Grantee’s
death.

(c)    As soon as practicable after the restrictions
with respect to any installment of Restricted Shares lapse at the end
of the period applicable to such installment set forth in paragraphs
4(a) and 4(b) above (the ‘‘Restriction
Period’’), the Company will deliver to the
Grantee, or the Grantee’s legal representative in case of the
Grantee’s death, promptly after surrender of the Grantee’s
certificate(s) for the Restricted Shares to the Treasurer of the
Company, the certificate or certificates for such shares free of any
legend or further restrictions together with, if applicable, a new
certificate representing any remaining Restricted Shares. It shall be a
condition to the obligation of the Company to issue or transfer shares
of Common Stock upon the lapse of restrictions that the Grantee (or any
person entitled to act under this paragraph 4(c)) pay to the Company,
upon its demand, such amount as may be requested by the Company for the
purpose of satisfying its liability to withhold federal, state or local
income or other taxes by reason of such issuance or transfer. If the
amount requested is not paid, the Company may refuse to issue or
transfer shares of Common
Stock.

5.    Restrictions.    During the
Restriction Period, neither the Restricted Shares nor any right or
privilege pertaining thereto may be sold, transferred, assigned,
pledged, hypothecated or otherwise 

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disposed of or encumbered in any way, by
operation of law or otherwise, and shall not be subject to execution,
attachment or similar process. Upon any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of or encumber the Restricted
Shares or any right or privilege pertaining thereto, otherwise than by
will or by the laws of descent and distribution, or upon the levy of
any execution, attachment or similar process thereupon, the Restricted
Shares and all rights and privileges given hereby shall immediately
terminate and the Restricted Shares shall be forfeited to the Company
pursuant to paragraph 6
hereof.

6.    Forfeiture.

(a)    All
the Grantee’s rights to, and interest in, the Restricted Shares
shall terminate and be forfeited to the Company without payment of
consideration if either (i) the Termination of Employment or
Termination of Consultancy of the Grantee with the Company or any
Affiliate occurs for any reason other than as provided in Sections
4(b)(ii), (iii), or (iv) above; provided, however,
that the Grantee’s employment will not be deemed to have
terminated for this purpose while the Grantee is on a leave of absence
which has been approved by the Company or while the Grantee is serving
as a consultant to the Company or any Affiliate thereof under a
post-employment consulting arrangement, or (ii) any action prohibited
by paragraph 5 hereof is taken. For purposes of this Agreement, a
transfer of employment from the Company to an Affiliate or from an
Affiliate to the Company or between Affiliates shall not be deemed a
termination of employment.

(b)    If Restricted Shares are
forfeited for any of the reasons stated in paragraph 6(a) hereof, such
forfeiture shall be effective upon the occurrence of the event giving
rise to the forfeiture. The Grantee agrees to repay to the Company all
dividends, if any, paid after such event with respect to the Restricted
Shares which have been forfeited.

(c)    If at any time the
Grantee forfeits any Restricted Shares pursuant to this Agreement, the
Grantee agrees to return the certificate or certificates for such
Restricted Shares to the Company duly endorsed in blank or accompanied
by a stock power duly executed in blank.

(d)    Determination
as to whether an event has occurred resulting in the forfeiture of, or
lapse of restrictions on, Restricted Shares, in accordance with this
Agreement, shall be made by the Committee, and all determinations of
the Committee shall be final and
conclusive.

7.    Company Right to Terminate
Employment and Other Remedies.    Nothing provided herein shall
be construed to affect in any way the right or power of the Company,
subject to the provisions of any other written agreement between the
Grantee and the Company relating to the subject matter, to terminate
the Grantee’s employment as an employee of or a consultant to the
Company at any time for any reason with or without Cause, nor to
preclude the Company from taking any action or enforcing any remedy
available to it with respect to any action or conduct on the
Grantee’s part.

8.    Additional
Documents.

(a)    It is the intention of the Company
that this award of Restricted Shares shall meet the requirements of,
and result in the application of, the rules prescribed by Section 83 of
the Code, as in effect at the date hereof, and applicable regulations
thereunder. Accordingly, each and every provision shall be construed
and interpreted in such manner as to conform with such intention and
the Company reserves the right to execute and to require the Grantee to
execute any further agreements or other instruments, which may be
effective as of the date of the award of the Restricted Shares covered
by this Agreement, including, but without limitation, any instrument
modifying or correcting any provision hereof, or any action taken
hereunder or contemporaneously herewith, and to take any other action,
which may be effective as of the date of the award of the Restricted
Shares covered by this Agreement, that, in the opinion of counsel for
the Company, may be necessary or desirable to carry out such
intention.

(b)    If the Grantee fails, refuses or neglects
to execute and deliver any instrument or document or to take any action
requested by the Company to be executed or taken by the Grantee
pursuant to the provisions of paragraph 8(a) above for a period of 30
days after the date of such request, the Company may require the
Grantee, within ten 10 days after delivery to the Grantee of a written
demand by the Company, to forfeit all Restricted Shares then held by
the Grantee.

2

9.    Amendments.    Any
amendment to the Plan will be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto;
provided, however, that no amendment will impair the
rights of the Grantee under this Agreement without the Grantee’s
consent.

10.    Severability.    In the
event that one or more of the provisions of this Agreement is
invalidated for any reason by a court of competent jurisdiction, any
provision so invalidated will be deemed to be separable from the other
provisions hereof, and the remaining provisions hereof will continue to
be valid and fully enforceable.

11.    Relation to
Plan.    This Agreement is subject to the terms and conditions
of the Plan. In the event of any inconsistency between the provisions
of this Agreement and the Plan, the Plan as interpreted and construed
by the Committee will govern. Capitalized terms used herein without
definition will have the meaning assigned to them in the Plan and
control. The Committee acting pursuant to the Plan, as constituted from
time to time, will, except as expressly provided otherwise herein, have
the right to determine any questions which arise in connection with
this Agreement and the Restricted
Shares.

12.    Successors and Assigns.
    Without limiting Section 4 hereof, the provisions of this
Agreement will inure to the benefit of, and be binding upon, the
successors, administrators, heirs, legal representatives and permitted
assigns of the Grantee, and the successors and assigns of the
Company.

13.    Governing Law.    The
interpretation, performance and enforcement of this Agreement will be
governed by the laws of the State of Delaware, without giving effect to
the principles of conflict of laws thereof. Each party to this
Agreement hereby consents and submits himself, herself or itself to the
jurisdiction of the courts of the State of Delaware for the purposes of
any legal action or proceeding arising out of this
Agreement.

14.    Notices.    Any notice to
the Company provided for herein will be in writing to the Company and
any notice to the Grantee will be addressed to the Grantee at his or
her address on file with the Company. Except as otherwise provided
herein, any written notice will be deemed to be duly given if and when
delivered personally or sent by courier service, registered mail or
electronic means of communication, and addressed as aforesaid. Any
party may change the address to which notices are to be given hereunder
by notice to the other party as herein specified (provided that for
this purpose any mailed notice will be deemed given on the third
business day following deposit of the same in the
mail).

[Signature page
follows.]

3

IN WITNESS WHEREOF, the Company has caused
this Agreement to be executed on its behalf by its duly authorized
officer and Grantee has also executed this Agreement in duplicate, as
of the day and year first above written.

		AXS-ONE
INC.

		By:   ______________________________

Name
Title

The undersigned Grantee hereby acknowledges
receipt of an executed original of this Restricted Stock Agreement and
accepts the Restricted Shares granted hereunder, subject to the terms
and conditions of the Plan and the terms and conditions set forth
herein.

		                                                                

4

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