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Exhib

**EMPLOYMENT        AGREEMENT**

| 1. | Employment.                   The Company hereby employs Employee and Employee hereby accepts                  such                  employment upon the terms and conditions set forth in this Agreement. |
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| 2. | Duties                  of Employee.                   Employee will be based in New Jersey or North Carolina at the discretion                  of the Company. Employee’s title will be Chief Executive Officer, Chief                  Financial Officer, Chief Operating Officer and Corporate Secretary                  and                  Employee will report directly to the Board of Directors of the                  Company.                  Employee agrees to perform and discharge such other duties as may                  be                  assigned to Employee from time to time by the Company to the reasonable                  satisfaction of the Board of Directors , and such duties will be                  consistent with those duties regularly and customarily assigned                  by the                  Company to the position of Chief Executive Officer, Chief Financial                  Officer and Secretary. Employee agrees to comply with all of the                  Company's                  policies, standards and regulations and to follow the instructions                  and                  directives as promulgated by the Board of Directors of the Company.                  Employee will devote Employee's full professional and business-related                  time, skills and best efforts to such duties and will not, during                  the term                  of this Agreement, be engaged (whether or not during normal business                  hours) in any other business or professional activity, whether                  or not such                  activity is pursued for gain, profit or other pecuniary advantage,                  without                  the prior written consent of the Board of Directors of the Company.                  This                  Section will not be construed to prevent Employee from (a) investing                  personal assets in businesses which do not compete with the Company                  in                  such form or manner that will not require any services on the part                  of                  Employee in the operation or the affairs of the companies in which                  such                  investments are made and in which Employee's participation is solely                  that                  of an investor; (b) purchasing securities in any corporation whose                  securities are listed on a national securities exchange or regularly                  traded in the over-the-counter market, provided that Employee at                  no time                  owns, directly or indirectly, in excess of one percent (1%) of                  the                  outstanding stock of any class of any such corporation engaged                  in a                  business competitive with that of the Company; or (c) participating                  in                  conferences, preparing and publishing papers or books, teaching                  or joining                  or participating in any professional associations or trade group,                  so long                  as the Board of Directors of the Company approves such participation,                  preparation and publication or teaching prior to Employee’s engaging                  therein. |
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| 3. | Term.                   The term of this Agreement will be at-will, and can be terminated                  by                  either party at any time, with or without cause, subject to the                  provisions                  of Section 4 of this Agreement. |
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| 4. | Termination. |
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|   | (a) | Termination                  by Company for Cause.                   The Company may terminate this Agreement and all of its obligations                  hereunder immediately, including the obligation to pay Employee |
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|   | (i) | Employee                  materially breaches any of the terms or conditions set forth in                  this                  Agreement and fails to cure such breach within ten (10) days after                  Employee's receipt from the Company of written notice of such breach                  (notwithstanding the foregoing, no cure period shall be applicable                  to                  breaches by Employee of Sections 10 through 14 of this                  Agreement); |
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|   | (ii) | Employee                  commits any other act materially detrimental to the business or                  reputation                  of the Company; |
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|   | (iii) | Employee                  engages in dishonest or illegal activities or commits or is convicted                  of                  any crime involving fraud, deceit or moral turpitude;                  or |
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|   | (iv) | Employee                  dies or becomes mentally or physically incapacitated or disabled                  so as to                  be unable to perform Employee's duties under this Agreement even                  with a                  reasonable accommodation. Without limiting the generality of the                  foregoing, Employee's inability adequately to perform services                  under this                  Agreement for a period of sixty (60) consecutive days will be conclusive                  evidence of such mental or physical incapacity or disability, unless                  such                  inability is pursuant to a mental or physical incapacity or disability                  covered by the Family Medical Leave Act, in which case such sixty                  (60) day                  period shall be extended to a one hundred and twenty (120) day                  period. |
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|   | (b) | Termination                  by Company Without Cause.                   The Company may terminate Employee's employment pursuant to this                  Agreement                  for reasons other than those stated in Section 4(a) upon at least                  thirty                  (30) days' prior written notice to Employee. In the event Employee's                  employment with the Company is terminated by the Company without                  cause,                  the Company shall be obligated to pay Employee a lump sum severance                  payment equal to twelve (12) months of Employee’s then base salary payable                  within thirty (30) days after the date of termination. In addition,                  Employee will be entitled to payment of all unused vacation days                  at his                  current daily rate and any accrued but unpaid salary or earned                  bonuses.                  Any option grants or restricted stock awards made to employee will                  immediately vest. The payment to Employee for all deferred salaries                  and                  earned bonuses will be paid within 30 days by the Company. Other                  than the                  severance payments set forth in this Section 4(b), Employee will                  be                  entitled to receive no further remuneration and will not be entitled                  to                  participate in any Company benefit programs following his termination                  by                  the Company, whether such termination is with or without                  cause. |
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|   | (c) | Termination                  by Employee for Cause.                   In the event there occurs a substantial change in the Employee’s job                  duties related to his position as CFO, but not CEO or COO, or there                  is a                  decrease in or a failure to provide the compensation or vested                  benefits                  under this Agreement initiated by either the Company or as a result                  of a                  Change in Control (as defined below) of the Company, Employee shall                  have                  the right to resign his employment and will be entitled to a lump                  sum                  severance payment equal to twelve (12) months of Employee’s then base                  salary payable within thirty (30) days after the date of termination                  In                  addition, Employee will be entitled to payment of all unused vacation                  days                  at his current daily rate and a lump sum equal to all deferred                  salaries                  and earned bonuses. In addition, all Employee’s then outstanding but                  unvested stock options shall vest one |
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|   | (i) | the                  merger of consolidation of the Company with or into another unaffiliated                  entity, or the merger of another unaffiliated entity into the Company                  or                  another subsidiary thereof with the effect that immediately after                  such                  transaction the stockholders of the Company immediately prior to                  such                  transaction hold less than fifty percent (50%) of the total voting                  power                  of all securities generally entitled to vote in the election of                  directors,                  managers or trustees of the entity surviving such merger or consolidation.                  This provision will not apply to any reorganization and reverse                  merger                  between the Company and Cicero, Inc. (or any other similar entity                  established for a similar purpose)                  ; |
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|   | (ii) | the                  sale or transfer of more than fifty-one percent (51%) of the Company’s                  then outstanding voting stock (other than a restructuring event                  which                  results in the continuation of the Company’s business by an affiliated                  entity) to unaffiliated person or group (as such term is used in                  Section                  13(d)(3) of the Securities Exchange Act of 1934, as amended);                  or |
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|   | (iii) | the                  adoption by the stockholders of the Company of a plan relating                  to the                  liquidation or dissolution of the                  Company. |
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| 5. | Compensation                  and Benefits. |
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|   | (a) | Annual                  Salary.                   During the term of this Agreement and for all services rendered                  by                  Employee under this Agreement, the Company will pay Employee a                  base salary                  of One Hundred Fifty Thousand Dollars ($150,000.00) per annum in                  equal                  bi-monthly installments. Such annual salary will be subject to                  adjustments                  by any increases given in the normal course of                  business. |
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|   | (b) | Incentive                  Compensation.                   Employee shall be eligible to receive incentive compensation in                  the form                  of cash bonuses, in the amount set forth in Exhibit C. The initial                  cash bonus of $50,000 will be earned and payable within ninety                  90 days                  after the close of the trailing three months wherein the Company                  achieved                  an operating cash flow under generally accepted accounting principles                  (after accounting for all bonuses) of no less than $150,000 as                  defined in                  Exhibit C. In                  addition, Employee is eligible for an additional annual bonus upon                  the                  Company reaching certain operating cash flow levels (after accounting                  for                  all bonuses) as set forth in Exhibit C. Said bonus will be payable                  after                  the annual accounts have been presented to the Compensation Committee.                  Exhibit C attached hereto provides the benchmarks associated with                  achieving the Incentive                  Compensation. |
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|   | (c) | Equity                  Awards.                   Upon the successful completion of either the recapitalization merger                  of                  Level 8 Systems, into Cicero, Inc., or the successful amendment                  of Level                  8’s charter to increase the authorized shares necessary to effect                  the                  recapitalization of the Company and the associated conversion of                  debt and                  equity, (the Conversion Event) Employee is hereby awarded a Stock                  Option                  Grant equal                  to                  1.35% of the fully diluted shares of either Cicero, Inc. or Level                  8                  Systems, Inc., whichever entity shall be the surviving entity,                  at the                  prevailing market price on the day of grant. These options shall                  vest 1/3                  immediately and 1/3 on each of the next two anniversaries of the                  date of                  grant. Where possible under existing tax laws, these option grants                  will be                  Incentive Stock Option Grants otherwise these options will be Non                  Qualified Options. In addition, Employee will be granted a restricted                  stock award equal to 1.35% of the fully diluted shares of either                  Cicero,                  Inc. or Level 8 Systems common stock, which ever entity shall be                  the                  surviving entity. The restricted stock award will vest upon the                  resignation or termination of employee or upon a change in control                  as                  defined in Section 4 (c) above. The Company will utilize its best                  efforts                  to register the restricted stock award within 60 days of                  grant. |
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| 6. | Vacation.                   Employee shall be eligible for four (4) weeks of paid vacation                  annually,                  provided that such vacation is scheduled at such times that do                  not                  interfere with the Company’s legitimate business needs. |
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| 7. | Other                  Benefits.                   Employee will be entitled to such fringe benefits as may be provided                  from                  time-to-time by the Company to its employees, including, but not                  limited                  to, group health insurance, life and disability insurance, and                  any other                  fringe benefits now or hereafter provided by the Company to its                  employees,                  if and when Employee meets the eligibility requirements for any                  such                  benefit. The Company reserves the right to change or discontinue                  any                  employee benefit plans or programs now being offered to its employees;                  provided, however, that all benefits provided for employees of                  the same                  position and status as Employee will be provided to Employee on                  an equal                  basis. |
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| 8. | Business                  Expenses.                   Employee will be reimbursed for all reasonable expenses incurred                  in the                  discharge of Employee's duties under this Agreement pursuant to                  the                  Company's standard reimbursement                  policies. |
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| 9. | Withholding.                   The Company will deduct and withhold from the payments made to                  Employee                  under this Agreement, state and federal income taxes, FICA and                  other                  amounts normally withheld from compensation due                  employees. |
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| 10. | Non-Disclosure                  of Proprietary Information.                   Employee recognizes and acknowledges that the Trade Secrets (as                  defined                  below) and Confidential Information (as defined below) of the Company                  and                  its affiliates and all physical embodiments thereof (as they may                  exist                  from time-to-time, collectively, the “Proprietary Information”) are                  valuable, special and unique assets of the Company's and its affiliates'                  businesses. Employee further acknowledges that access to such Proprietary                  Information is essential to the performance of Employee's duties                  under                  this Agreement. Therefore, in order to obtain access to such |
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| 11. | Non-Solicitation                  Covenants.                   Employee agrees that during Employee's employment by the Company                  and for a                  period of two (2) year following the termination of Employee's                  employment                  for whatever reason, Employee will not, directly or indirectly,                  on                  Employee's own behalf or in the service of or on behalf of any                  other                  individual or entity, divert, solicit or attempt to divert or solicit                  any                  individual or entity (i) who is a client of the Company at any                  time during                  the six (6)-month period prior to Employee's termination of employment                  with the Company (“Client”), or was actively sought by the Company as a                  prospective client, and (ii) with whom Employee had material contact                  while                  employed by the Company to provide similar services or products                  as such                  provided by Employee for the Company to such Clients or prospects.                  Employee further agrees and represents that during Employee's employment                  by the Company and for a period of two (2) year following any termination                  of Employee's employment for whatever reason, Employee will not,                  directly                  or indirectly, on Employee's own behalf or in the service of, or                  on behalf                  of any other individual or entity, divert, solicit or hire away,                  or                  attempt to divert, solicit or |
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| 12. | Existing                  Restrictive Covenants.                   Except as provided in Exhibit B, Employee has not entered into                  any                  agreement with any employer or former employer: (a) to keep in                  confidence                  any confidential information, or (b) to not compete with any former                  employer. Employee represents and warrants that Employee's employment                  with                  the Company does not and will not breach any agreement which Employee                  has                  with any former employer to keep in confidence confidential information                  or                  not to compete with any such former employer. Employee will not                  disclose                  to the Company or use on its behalf any confidential information                  of any                  other party required to be kept confidential by                  Employee. |
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| 13. | Return                  of Proprietary Information.                   Employee acknowledges that as a result of Employee's employment                  with the                  Company, Employee may come into the possession and control of Proprietary                  Information, such as proprietary documents, drawings, specifications,                  manuals, notes, computer programs, or other proprietary material.                  Employee                  acknowledges, warrants and agrees that Employee will return to                  the Company                  all such items and any copies or excerpts thereof, and any other                  properties, files or documents obtained as a result of Employee's                  employment with the Company, immediately upon the termination of                  Employee's employment with the                  Company. |
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| 14. | Proprietary                  Rights.                   During the course of Employee's employment with the Company, Employee                  may                  make, develop or conceive of useful processes, machines, compositions                  of                  matter, computer software, algorithms, works of authorship expressing                  such                  algorithm, or any other discovery, idea, concept, document or improvement                  which relates to or is useful to the Company's Business (the                  “Inventions”), whether or not subject to copyright or patent protection,                  and which may or may not be considered Proprietary Information.                  Employee                  acknowledges that all such Inventions will be “works made for hire” under                  United States copyright law and will remain the sole and exclusive                  property of the Company. Employee also hereby assigns and agrees                  to assign                  to the Company, in perpetuity, all right, title and interest Employee                  may                  have in and to such Inventions, including without limitation, all                  copyrights, and the right to apply for any form of patent, |
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| 15. | Remedies.                   Employee agrees and acknowledges that the violation of any of the                  covenants or agreements contained in Sections 10 through 14 of                  this                  Agreement would cause irreparable injury to the Company, that the                  remedy                  at law for any such violation or threatened violation thereof would                  be                  inadequate, and that the Company will be entitled, in addition                  to any                  other remedy, to temporary and permanent injunctive or other equitable                  relief without the necessity of proving actual damages or posting                  a                  bond. |
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| 16. | Severability.                   In case one or more of the provisions contained in this Agreement                  is for                  any reason held to be invalid, illegal or unenforceable in any                  respect,                  the parties agree that it is their intent that the same will not                  affect                  any other provision in this Agreement, and this Agreement will                  be                  construed as if such invalid or illegal or unenforceable provision                  had                  never been contained herein. It is the intent of the parties that                  this                  Agreement be enforced to the maximum extent permitted by                  law. |
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| 17. | Entire                  Agreement.                   This Agreement embodies the entire agreement of the parties relating                  to                  the subject matter of this Agreement and supersedes all prior agreements,                  oral or written, regarding the subject matter hereof. No amendment                  or                  modification of this Agreement will be valid or binding upon the                  parties                  unless made in writing and signed by the                  parties. |
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| 18. | Governing                  Law.                   This Agreement is entered into and will be interpreted and enforced                  pursuant to the laws of the State of New Jersey. The parties hereto                  hereby                  agree that the appropriate forum and venue for any disputes between                  any of                  the parties hereto arising |
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| 19. | Surviving                  Terms.                   Sections 4, 10, 11, 14, 15 and 18 of this Agreement shall survive                  termination of this Agreement. |
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| COMPANY:                             |   | EMPLOYEE: |
|--------------------------------------|--------|-----------|
|                                 |   |      |   |
| LEVEL                8 SYSTEMS, INC. |   |      |
|                                 |   |      |   |
|                                 |   |      |   |
|                                 |   |      |   |
| By:                                  |   |      |   |
| Name:                                |   |      | John                  P. Broderick |
| Title:                               |   |      |   |

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**EXHIBIT        A**

**INVENTIONS**

|   |                               |
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|   | Employee                  Initials |

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**EXHIBIT        B**

**EXISTING        RESTRICTIVE COVENANTS**

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**EXHIBIT        C**

**VARIABLE        COMPENSATION**

**Initial        Cash Bonus:**

**Annual        Cash Bonus:**

|                        | **Operating                  Cash****Flow                  Range** |                         |   |                         |                       |
|-----------------------------|--------------------------------------------------------------------|------------------------------|--------|------------------------------|----------------------------|
|                        |                                                               |                         |   |                         |                       |   |
|                        | **From**                                                           | **To**                       |   | **Variable****Compensation** |
|                        |                                                               |                         |   |                         |                       |   |
| **Tier                  1** | $                  500,000                                         | $                  1,000,000 |   |                         | $                  100,000 |   |
| **Tier                  2** | $                  1,000,001                                       | $                  2,000,000 |   |                         | $                  200,000 |   |
| **Tier                  3** | $                  greater than 2,000,001                          |                         |   |                         | $                  300,000 |   |

|   | Performance                  significantly in excess of Tier 3 may result in an additional reward                  at                  the discretion of the Compensation                  Committee |
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