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<title>Prepared and Filed by St Ives Financial</title>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font style='font-size:16PT'>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font style='font-size:10PT'>WASHINGTON, DC 20549</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font style='font-size:16PT'>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font style='font-size:10PT'>CURRENT REPORT </font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font style='font-size:10pt'>PURSUANT TO SECTION 13 OR 15(d) OF THE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font style='font-size:10PT'>SECURITIES EXCHANGE ACT OF 1934 </font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font style='font-size:10pt'>Date
  of Report (Date of earliest event reported): </font></b><font style='font-size:10pt'><b>December
  14, 2006 </b></font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><B><font style='font-size:18PT'>SEDONA CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font style='font-size:10pt'> (Exact name of registrant as specified in its charter) </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font style='font-size:10pt'>&nbsp;</font></p>

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                    <td align=center valign=top width="280"><b><font style='font-size:10pt'>Pennsylvania</font></b><br>
<font style='font-size:10pt'>(State or other jurisdiction of</font><br>
<font style='font-size:10pt'>incorporation) </font><br></td>
        <td align=center valign=top width="280"><b><font style='font-size:10pt'>0-15864</font></b><br>
            <font style='font-size:10pt'>(Commission File No.)</font><br>
<font style='font-size:10pt'>&nbsp;</font><br></td>
        <td align=center valign=top width="280"><b><font style='font-size:10pt'>95-4091769</font></b><br>
            <font style='font-size:10pt'>(IRS Employer Identification</font><br>
<font style='font-size:10pt'>No.)</font><br></td>
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                    <td align=center valign=top width="280"><font style='font-size:10pt'>&nbsp;</font><br></td>
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        <td align=center valign=top width="280"><br></td>
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                    <td align=center valign=top width="280"><b><font style='font-size:10pt'>1003 West Ninth Street</font></b><br>
<b><font style='font-size:10pt'>King of Prussia, Pennsylvania</font></b><br>
<font style='font-size:10pt'>(Address of principal executive offices)</font><br></td>
        <td align=center width="280" >&nbsp;</td>
    <td align=center valign=bottom width="280"><b><font style='font-size:10pt'>19406</font></b><br>
      <font style='font-size:10pt'>(Zip Code)</font></td>
    <td width="50">&nbsp;</td></tr></table>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font style='font-size:10pt'><b>Registrant&#146;s
  telephone number, including area code:</b> </font><b><font style='font-size:10pt'>(610)
  337-8400</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font style='font-size:10pt'>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font style='font-size:10pt'>(Former Name or Former Address, if Changed Since Last Report) </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font style='font-size:10pt'>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. </font></p>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Written communication pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></td></tr></table>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td></tr></table>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td></tr></table>

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            <p style=' margin-bottom:0pt; margin-top:12pt;'><font style='font-size:10pt'>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td></tr></table>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font style='font-size:10pt'>SECTION 1 &#150; REGISTRANT&#146;S BUSINESS AND OPERATIONS</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10PT'>ITEM 1.01</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10PT'>ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font style='font-size:10pt'>Under its bylaws, Sedona Corporation (the &#147;Company&#148;) must indemnify the directors and officers of the Company from and against liabilities incurred and arising from the directors&#146; service as directors and the officers&#146; service as officers of the Company, except as otherwise set forth in the By-Laws. The Company has secured a policy of directors and officers liability insurance covering the directors and officers, which coverage is evidenced by Policy No.00DA 0220442-05 issued by Twin City Fire Insurance (the &#147;Policy&#148;). The Policy provides for the retention (i.e. a deductible amount) of $250,000.00 for securities claims and $150,000.00 for non-securities claims, which sums would be payable by the Company (collectively the &#147;Retention Requirement&#148;). </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font style='font-size:10pt'>As previously reported, on November 2, 2006, David R. Vey (&#147;Vey&#148;), the Chairman and a principal shareholder of the Company, executed a Surety Agreement in which he agreed to serve as surety to the directors of the Company to guarantee the payment of sums payable to the directors by Sedona from time to time as a result of the Retention Requirement, up to a maximum total of $250,000.00. On December 14, 2006, Vey executed an Amended and Restated Surety Agreement in which he agreed to serve as surety to both the officers and the directors of the Company to guarantee the payment of such sums.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font style='font-size:10pt'>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font style='font-size:10pt'>Date:&nbsp;December 20, 2006 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font style='font-size:10pt'>&nbsp;</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font style='font-size:10PT'>SEDONA CORPORATION</font></p> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'>  </p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font style='font-size:10pt'>By:&nbsp;</font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><br> <font style='font-size:10pt'>/s/&nbsp;MARCO EMRICH</font></p> </td> </tr>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font style='font-size:10pt'>Marco Emrich</font><br> <font style='font-size:10pt'> President and Chief Executive Officer</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><U><B><font style='font-size:10PT'>ITEM 9.01 EXHIBITS</font></B></U></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>99.1</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-Top:0pt;margin-bottom:0pt;'><font style='font-size:10pt'>Amended and Restated Surety Agreement dated as of November 2, 2006 from Vey.</font></p> </td> </tr></table>
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[{"type": "8-K", "sequence": "1", "filename": "b416585_8-k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 13899}]
{"company-data": {"conformed-name": "SEDONA CORP", "cik": "0000764843", "assigned-sic": "7372", "irs-number": "954091769", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-15864", "film-number": "061291973"}, "business-address": {"street1": "1003 W. 9TH AVENUE, SECOND FLOOR", "city": "KING OF PRUSSIA", "state": "PA", "zip": "19406", "phone": "6103378400"}, "mail-address": {"street1": "1003 W. 9TH AVENUE, SECOND FLOOR", "city": "KING OF PRUSSIA", "state": "PA", "zip": "19406"}, "former-company": [{"former-conformed-name": "SCAN GRAPHICS INC", "date-changed": "19920703"}, {"former-conformed-name": "CAPTIVE VENTURE CAPITAL INC", "date-changed": "19870519"}]}
Prepared and Filed by St Ives Financial
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
  of Report (Date of earliest event reported):
December
  14, 2006
SEDONA CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania
(State or other jurisdiction of
incorporation)
0-15864
(Commission File No.)
95-4091769
(IRS Employer Identification
No.)
1003 West Ninth Street
King of Prussia, Pennsylvania
(Address of principal executive offices)
19406
(Zip Code)
Registrant's
  telephone number, including area code:
(610)
  337-8400
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
SECTION 1 – REGISTRANT'S BUSINESS AND OPERATIONS
ITEM 1.01
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
Under its bylaws, Sedona Corporation (the "Company") must indemnify the directors and officers of the Company from and against liabilities incurred and arising from the directors' service as directors and the officers' service as officers of the Company, except as otherwise set forth in the By-Laws. The Company has secured a policy of directors and officers liability insurance covering the directors and officers, which coverage is evidenced by Policy No.00DA 0220442-05 issued by Twin City Fire Insurance (the "Policy"). The Policy provides for the retention (i.e. a deductible amount) of $250,000.00 for securities claims and $150,000.00 for non-securities claims, which sums would be payable by the Company (collectively the "Retention Requirement").
As previously reported, on November 2, 2006, David R. Vey ("Vey"), the Chairman and a principal shareholder of the Company, executed a Surety Agreement in which he agreed to serve as surety to the directors of the Company to guarantee the payment of sums payable to the directors by Sedona from time to time as a result of the Retention Requirement, up to a maximum total of $250,000.00. On December 14, 2006, Vey executed an Amended and Restated Surety Agreement in which he agreed to serve as surety to both the officers and the directors of the Company to guarantee the payment of such sums.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: December 20, 2006
SEDONA CORPORATION
By:
/s/ MARCO EMRICH
Marco Emrich
President and Chief Executive Officer
2
ITEM 9.01 EXHIBITS
99.1
Amended and Restated Surety Agreement dated as of November 2, 2006 from Vey.
3