-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 K5VXJGKp94wi/9DQBko57ofMOiNL+a9SoT092dOM6h2bIJe38nYh/rn6+lYrvCSy
 8XqPIj7/Wsaerx2/E914Qw==

<SEC-DOCUMENT>0001013816-06-000045.txt : 20060130
<SEC-HEADER>0001013816-06-000045.hdr.sgml : 20060130
<ACCEPTANCE-DATETIME>20060130180036
ACCESSION NUMBER:		0001013816-06-000045
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060126
FILED AS OF DATE:		20060130
DATE AS OF CHANGE:		20060130

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GRAPHON CORP/DE
		CENTRAL INDEX KEY:			0001021435
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				133899021
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		5400 SOQUEL AVENUE
		STREET 2:		SUITE A2
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95065
		BUSINESS PHONE:		8004727466

	MAIL ADDRESS:	
		STREET 1:		5400 SOQUEL AVENUE
		STREET 2:		SUITE A2
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95065

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNITY FIRST ACQUISITION CORP
		DATE OF NAME CHANGE:	19960823

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WATSON GORDON
		CENTRAL INDEX KEY:			0001176239

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21683
		FILM NUMBER:		06563385

	BUSINESS ADDRESS:	
		STREET 1:		6732 SHIRE CIRCLE
		CITY:			HUNTINGTON
		STATE:			CA
		ZIP:			926481400
		BUSINESS PHONE:		7148439687

	MAIL ADDRESS:	
		STREET 1:		6732 SHIRE CIRCLE
		CITY:			HUNGINTON BEACH
		STATE:			CA
		ZIP:			926481500
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_watson-013006ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-01-26</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001021435</issuerCik>
        <issuerName>GRAPHON CORP/DE</issuerName>
        <issuerTradingSymbol>GOJO.OB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001176239</rptOwnerCik>
            <rptOwnerName>WATSON GORDON</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>6732 SHIRE CIRCLE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HUNGINTON BEACH</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>926481500</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.21</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-01-26</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>75000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2006-01-26</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-01-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>75000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>75000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The option is immediately exercisable, subject to the repurchase of the option shares by the issuer at the exercise price
 upon the Reporting Person's termination of service prior to full vesting.  The repurchase right lapses and the option vests
 in 33 equal monthly installments beginning on May 26, 2006.</footnote>
        <footnote id="F2">Not applicable.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Gordon Watson</signatureName>
        <signatureDate>2006-01-30</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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