Common use of Compliance and Resolution Clause in Contracts

Compliance and Resolution. Borrower agrees that a failure to comply with Borrower’s obligations under this Addendum, or any other set of facts or circumstances where it has been asserted by any governmental regulatory agency (or Lender believes that there is a substantial risk of such assertion) that Lender and its affiliates are not entitled to hold, or exercise any significant right with respect to, any securities issued to Lender by Borrower, will constitute a breach of the obligations of Borrower under the financing agreements between Borrower and Lender. In the event of (i) a failure to comply with Borrower’s obligations under this Addendum; or (ii) an assertion by any governmental regulatory agency (or Lender believes that there is a substantial risk of such assertion) of a failure to comply with Borrower’s obligations under this Addendum, then (i) Lender and Borrower will meet and resolve any such issue in good faith to the satisfaction of Borrower, Lender, and any governmental regulatory agency, and (ii) upon request of Lender, Borrower will cooperate and assist with any assignment of the financing agreements from Hercules Technology II, L.P. to Hercules Technology Growth Capital, Inc. ANNEX A CONSOLIDATED ADJUSTED EBITDA ADJUSTMENTS 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Excess Comp $ 0.0 $ 0.0 $ 7.5 $ 250.0 $ 0.0 $ 0.0 $ 0.0 $ 1,220.0 $ 0.0 $ 0.0 $ 0.0 $ 118.6 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Other Addbacks 87.4 28.5 340.3 32.8 39.8 324.1 22.6 99.3 6.7 1.4 2.7 103.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Daegis Addbacks (excl D&A) $ 87.4 $ 28.5 $ 347.8 $ 282.8 $ 39.8 $ 324.1 $ 22.6 $ 1,319.3 $ 6.7 $ 1.4 $ 2.7 $ 221.8 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Stock Compensation Expense $ 37.4 $ 37.4 $ 78.5 $ 52.4 $ 52.2 $ 67.5 $ 45.9 $ 52.7 $ 49.3 $ 51.3 $ 51.3 $ 56.2 $ 83.3 $ 83.3 $ 83.3 $ 100.0 $ 100.0 $ 100.0 $ 108.3 $ 108.3 $ 108.3 $ 108.3 $ 108.3 $ 108.3 Acquisition Related Cost 0.0 0.0 660.0 0.0 0.0 779.9 0.0 0.0 20.0 0.0 0.0 37.3 0.0 2,160.40 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Unify Addbacks (excl D&A) $ 37.4 $ 37.4 $ 738.5 $ 52.4 $ 52.2 $ 847.4 $ 45.9 $ 52.7 $ 69.3 $ 51.3 $ 51.3 $ 93.5 $ 83.3 $ 2,243.7 $ 83.3 $ 100.0 $ 100.0 $ 100.0 $ 108.3 $ 108.3 $ 108.3 $ 108.3 $ 108.3 $ 108.3 Consolidated Rolling LTM Addback (excl D&A) $ 4,792.7 $ 6,970.5 $ 5,967.5 $ 5,732.3 $ 5,740.4 $ 4,648.9 $ 4,688.7 $ 3,425.1 $ 3,457.3 $ 3,513.0 $ 3,567.3 $ 3,360.4 ____________________ (1) Other addbacks include professional service fees, one-time bad debt expense, contract services, and fees associated with Project Delta. Domestic Unify International (US) Corporation (Delaware) Realease, LLC (Nevada) AXS-One Inc. (Delaware) Unify Acquisition Corp. (California)1 Foreign Gupta Technologies, GmbH Unify Corporation France S.A. CipherSoft Inc. ____________________ 1 To be merged with and into Strategic Office Solutions, Inc. (d/b/a Daegis) at which point Strategic Office Solutions, Inc. (d/b/a Daegis) will be the subsidiary entity *** Note Payable $525,000 CDN CIT Technology Fin Serv. Inc. Capital Lease (Office $48,904 USD ADP Note Payable $4,125 USD Following the consummation of the merger of Unify Acquisition Corp. with and into Strategic Office Solutions, Inc. (d/b/a Deagis) (the “Daegis Merger”), the Company will have the following additional indebtedness: *** *** *** USD *** *** *** USD *** *** *** USD *** *** *** USD *** *** *** USD *** *** *** USD *** *** *** USD *** *** *** USD OneSource Financial Corp Capital Lease $503,575 USD Dell Financial Services Capital Lease $142,407 USD Bank of the West Equipment Lease $188,404 USD [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. NONE CIT Technology Fin Serv. Inc. Has a lien on furniture (office cubicles) at the Roseville, CA facility. OneSource Financial Corp Has a lien on computer equipment. Dell Financial Services Has a lien on computer equipment. Bank of the West Has a lien on computer equipment. In addition, Strategic Office Solutions, Inc. is subject to a tax lien on certain leased assets by the San Francisco Tax Collector. (a) Existing Indebtedness: Schedule 6.1 – Organization, Qualification and Other Information: Schedule 6.3 – No Contravention; Liens: Schedule 6.10 – Absence of Litigation: