EXHIBIT 10.1

                         EMPLOYMENT AGREEMENT AMENDMENT


         For valuable consideration, the receipt and sufficiency of which the
parties acknowledge, this Employment Agreement Amendment is entered into this
31st day of October 2007, by and between Kevin Murphy (hereinafter "Murphy") and
SteelCloud, Inc. (hereinafter "SteelCloud").

         WHEREAS, Murphy and SteelCloud entered into an Employment Agreement
dated June 8, 2004 (hereinafter "Employment Agreement"), and

         WHEREAs, Murphy and SteelCloud now wish to amend the Employment
Agreement,

         Now, therefore, the parties agree as follows:

         1.    The term of this extension is thirty-six (36) months commencing
               from the date of this agreement above.

         2.    Section 1 of the Employment Agreement is amended to "Executive
               Vice President and Chief Financial Officer"

         3.    Section 4(a) of the Employment Agreement is amended to replace
               "$170,000" with "$215,000."

         4.    Section 4 (d) should be amended to replace "automotive allowance
               of $500" with "general business expense allowance of $1,000."

         5.    A new section 4(a)(iii) is added as follows:

               (iii) Employer shall pay Employee a bonus of $50,000, payable in
                    a lump sum on or before November 15, 2007.


         6.    A new section 4(a)(iv) is added as follows:

               Employer shall pay Employee a one-time bonus relating to specific
               product funding. The bonus will be equal to 5% of such product
               funding, payable within 30 days of Employer's receipt of such
               product funding.

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         7. A new section 4(e) is added as follows:

               In addition to the foregoing, Employee and SteelCloud shall enter
               into:

               a)   A separate Incentive Stock Option agreement, pursuant to
                    which Employee will be given an option for 100,000 SCLD
                    shares, such option to vest equally in arrears over a period
                    of 2 years, subject to the terms of the separate incentive
                    stock option agreement, and

               b)   A separate Restricted Stock Agreement, pursuant to which
                    Employer shall issue to Employee an SCLD stock bonus in
                    restricted stock equal in value to $100,000, on the date of
                    issuance of the stock to Employee. The Restricted Stock will
                    vest at the earlier of: a) SteelCloud's registration of
                    these restricted shares with the SEC, or b) The stock
                    becomes freely tradable pursuant to SEC Rule 144. Employer
                    shall present the foregoing agreements to Employee for
                    execution on or before October 31, 2007.

         8. Schedule A is replaced with Schedule A attached hereto.



         IN WITNESS WHEREOF, each party to this Agreement has caused it to be
executed on the date indicated above.



READ AND AGREED:                                     READ AND AGREED:
Kevin Murphy                                         SteelCloud, Inc.

/S/ KEVIN MURPHY                                     /S/ ROBERT E. FRICK
----------------                                     ---------------------------
                                                      Robert E. Frick, CEO



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                                   SCHEDULE A


Employee Benefits:

     o    $1,000 monthly business expense allowance

     o    Company paid health and dental benefits

     o    Company paid cell phone/blackberry

     o    Corporate Credit Card to execute Company purchases

     o    Paid COBRA coverage if terminated

     o    5 weeks paid vacation

     o    Reasonable home office expenses