Exhibit 10.1

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT, effective as of May 1, 2006 (the "Effective Date"), is made
by and between Digital Fusion, Inc., a Delaware corporation (the "Company") with
its corporate offices at 4940-A Corporate Drive, Huntsville,  Alabama 35805, and
Maria (Toni)  Sepulveda (the  "Executive"),  residing at 8007  Hedgewood  Court,
Fairfax Station, VA 22039.

                                    RECITALS
                                    --------

     WHEREAS,  Company desires to employ  Executive and Executive  desires to be
employed by the Company;

     NOW,  THEREFORE,  in  consideration  of the mutual  promises and  covenants
contained herein and for other good and valuable consideration,  the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

                              OPERATIVE PROVISIONS
                              --------------------

1.   Employment; Term.

     (a)  Employment.  Subject to the terms and conditions set forth herein, the
          Company  agrees  to  employ  and  Executive  agrees  to  serve  as the
          Company's  Executive Vice  President of Northeast (NE) Region.  During
          the term of employment,  Executive  shall have such  responsibilities,
          duties and authorities as commensurate  with executive vice presidents
          of similar size, and additionally,  such responsibilities,  duties and
          authorities as may be assigned to the Executive by the Company's Chief
          Operating Officer,  provided,  that, the same is not inconsistent with
          such  position.  Executive  agrees that she will use her full business
          time to promote the interests of the Company and its affiliates and to
          fulfill her duties hereunder.  Nothing in this Agreement shall however
          preclude  Executive  from  engaging,  so long  as,  in the  reasonable
          determination of the Company's Board of Directors,  such activities do
          not interfere  with the  execution of her duties and  responsibilities
          hereunder,  in  charitable  and community  affairs,  from managing any
          passive  investment  made  by  Executive  in  publicly  traded  equity
          securities or other property  (provided,  that, no such investment may
          exceed 5% of the equity of any entity,  without the prior  approval of
          the Company's  Board of  Directors)  or from  serving,  subject to the
          prior  approval of the Company's  Board of  Directors,  as a member of
          boards  of  directors  or  as a  trustee  of  any  other  corporation,
          association or entity (provided, that, no such prior approval shall be
          required  for any such  boards  on  which  Executive  shall  currently
          serve).  For purposes of the preceding  sentence,  any approval of the
          Company's Board of Directors required herein shall not be unreasonably
          withheld.

     (b)  Term.  Unless  sooner  terminated  pursuant  to Section 3, the term of
          Executive's  employment  pursuant to this Agreement  shall commence on
          the Effective Date and shall  continue  thereafter for a period of two
          years  (the  "Term").   Executive  and  the  Company   understand  and
          acknowledge that Executive's  employment with the Company  constitutes
          "at-will"  employment.  Subject to the Company's obligation to provide


                                       1
<PAGE>

          severance  benefits as  specified  herein,  Executive  and the Company
          acknowledge that this employment relationship may be terminated at any
          time, upon written notice to the other party, with or without Cause or
          Good Reason, as those terms are defined below, at the option of either
          the Company or Executive.

2.   Compensation.  During the employment term under this Agreement, the Company
shall compensate Executive as follows:

     (a)  Base Salary.  Subject to  adjustment  as set forth below,  the Company
          will pay Executive while she is employed hereunder, an annualized base
          compensation of not less than Eighty Thousand Dollars ($80,000.00) per
          year,  payable in accordance  with Company's usual payroll policy (the
          "Base  Salary").   The  Company  will  review   annually   Executive's
          performance and compensation.

     (b)  Performance   Bonus.   Executive  shall  be  entitled  to  such  bonus
          compensation as the  Compensation  Committee deems  appropriate.  Such
          bonus  compensation  shall be based,  in part, on the  achievement  of
          performance  criteria  established  by  the  Compensation   Committee,
          including criteria relating to the profitability of the Company.

     (c)  Participation  in Company Stock Ownership  Plan.  During the period of
          Executive's  employment,  Executive will be entitled to participate in
          the Company's Stock Option Plan (or such other successor plan), as the
          Board of Directors or Compensation  Committee, in its sole discretion,
          may  determine.  Executive  shall  receive  a stock  option  grant  in
          accordance with Exhibit A attached hereto.

     (d)  Benefits. Executive will not be eligible to participate in all benefit
          programs of the Company  which are in effect for its senior  executive
          personnel  and, to the extent  available to executive  personnel,  its
          employees generally from time to time.

     (e)  Vacation.  Executive  will be  entitled  each year to  vacation  for a
          period or periods  inconsistent  with the normal  policy of Company in
          effect  from  time to time,  but in any  event  not less  than  twenty
          vacation  days each year and to such  holidays  as may be  customarily
          afforded  to  its  employees  by the  Company,  during  which  periods
          Executive's compensation shall be paid in full.

     (f)  Reimbursement of Expenses.

          (i)  All  reasonable  travel and  entertainment  expenses  incurred by
               Executive in the course of fulfilling this Agreement or otherwise
               promoting the Company and its business shall be reimbursed by the
               Company.  Such reimbursement  shall be made to Executive promptly
               following  submission  to  the  Company  of  receipts  and  other
               documentation  of such expenses  reasonably  satisfactory  to the
               Company.


                                       2
<PAGE>

3.   Termination.

     (a)  Death and Legal  Incapacity.  Executive's  employment  hereunder shall
          terminate upon Executive's death or legal incapacity.

     (b)  Disability.  Executive's employment hereunder may be terminated by the
          Company  in the  event  of  Executive's  Disability.  As  used in this
          Agreement,  the term "Disability"  shall mean the inability or failure
          of the  Executive to perform the  essential  functions of the position
          for  which  she has been  employed  by the  Company,  for more than 90
          consecutive days or for shorter periods aggregating more than 150 days
          in any period of 12  consecutive  months,  all as  determined  in good
          faith by a majority vote of the disinterested members of the Company's
          Board of Directors.  Until such  termination  occurs,  Executive shall
          continue  to  receive  her Base  Salary as then in  effect,  provided,
          however,  that  such  salary  shall be  reduced  to the  extent of any
          disability  benefits  provided to Executive  under a  disability  plan
          sponsored by the Company.

     (c)  For Cause.  Executive's  employment hereunder may be terminated by the
          Company  for  cause  ("Cause")  upon  the  occurrence  of  any  of the
          following  events and in  accordance  with the time  periods set forth
          below:

          (i)  Executive's breach of any material duty or obligation  hereunder,
               which  breach  continues or renews at any time after notice and a
               reasonable  opportunity  to  desist  or  otherwise  cure has been
               furnished.

          (ii) Executive is convicted or pleads guilty or nolo  contendre to any
               felony  (other than  traffic  violation)  or any crime  involving
               fraud, dishonesty or misappropriation;

          (iii) Executive  willfully  engages in misconduct that causes material
               harm to the Company

          (iv) The  Executive  willfully  engages in an act that  constitutes  a
               conflict  of  interest  with the  Company  or a  usurpation  of a
               business  opportunity of the Company,  in either case without the
               prior written approval of the Company's Board of Directors.

          The  determination  as to  whether  any of the  foregoing  Causes  has
          occurred  shall be made in good  faith by the  affirmative  vote of at
          least  75% of the  disinterested  members  of the  Company's  Board of
          Directors. No event shall be deemed a basis for Cause unless Executive
          is  terminated  therefore  within 60 days after such event is known to
          the Chairman of the Company or if Executive is Chairman,  known to the
          Chairman of any committee of the Board.

     (d)  For Good Reason.  Executive may terminate her employment hereunder for
          good reason  ("Good  Reason") if such  termination  occurs  within six
          months 60 days after:


                                       3
<PAGE>

          (i)  The Company  assigns to Executive any duties or  responsibilities
               inconsistent  with Section 1, which  assignment  is not withdrawn
               within 20 business days after  Executive's  notice to the Company
               of her reasonable objection thereto; or

          (ii) The Company breaches any material provision of this Agreement and
               such  breach and the  effects  thereof  are not  remedied  by the
               Company within 20 business days after  Executive's  notice to the
               Company of the existence of such breach.

     (e)  Effect of Termination.

          (i)  If the  Company  terminates  Executive's  employment  for reasons
               other than for Cause, or for Executive's  death, legal incapacity
               or Disability, or if Executive terminates this Agreement for Good
               Reason,  the  obligations of Executive  under this Agreement will
               terminate  except that the  covenants  contained  in Section 4(a)
               shall continue indefinitely,  and the obligations in this section
               shall  continue  pursuant to their  terms.  In such event,  for a
               period  of  six  (6)  months   after  the  date  of   Executive's
               termination,  the Company shall pay Executive, in accordance with
               customary payroll procedures, Executive's base salary Base Salary
               as then in effect and, in addition,  any  Performance  Bonus that
               Executive  would  have  earned  in the year  she was  terminated,
               prorated  as of the  date  of  termination.  For  such  six-month
               period, the Company shall continue to provide medical coverage to
               Executive under substantially the same terms as were in effect on
               the date Executive's  employment terminated under this provision.
               Additionally,  any and all  vested  options,  warrants  or  other
               securities  awarded to Executive  pursuant to the Company's Stock
               Option Plan or any other  similar  plan or other  written  option
               agreement  shall,  as of the  date  of  Executive's  termination,
               immediately  vest and  become  exercisable  and all  such  vested
               options, warrants or other securities shall remain exercisable by
               Executive  for  the  duration  of the  period  during  which  the
               options,   warrants  or  other  securities  would  have  remained
               exercisable  if Executive  had remained  employed by the Company.
               The amounts paid to Executive  under this paragraph  shall not be
               affected in any way by Executive's acceptance of other employment
               during the six-month period described above.

          (ii) Except as otherwise provided herein, if Executive  terminates her
               employment  for any reason other than Good Reason or  Executive's
               employment is terminated for Cause,  the obligations of Executive
               and the Company under this Agreement  will terminate  except that
               the  covenants  of  Executive  contained  in  Section  4(a) shall
               continue indefinitely and the covenants of Executive contained in
               Section 4(d) shall  continue  until the first  anniversary of the
               date of Executive's  termination.  In such event, Executive shall
               be entitled to receive only the  compensation  hereunder  accrued
               and unpaid as of the date of Executive's termination.

          (iii) If Executive's  employment  terminates  due to a Disability,  as
               defined in Section 3(b), the  obligations of Executive under this
               Agreement  will  terminated  except that the covenants in Section


                                       4
<PAGE>

               4(a) shall continue indefinitely.  In such event, for a period of
               one year after the date of Executive's  termination,  the Company
               shall  pay  Executive,   in  accordance  with  customary  payroll
               procedures,  Executive's Base Salary as then in effect, provided,
               however,  that the payment of such salary shall be reduced to the
               extent of any long-term disability benefits provided to Executive
               under a long-term  disability plan sponsored by the Company.  The
               vesting and  exercise of any and all  options,  warrants or other
               securities  awarded to Executive  pursuant to the Company's Stock
               Option  Plan or any other  similar  plan shall be governed by the
               terms of such plan,  or if awarded  pursuant to a written  option
               agreement, then the terms of such agreement.

          (iv) No amount payable to Executive  pursuant to this Agreement  shall
               be  subject  to  mitigation  due  to  Executive's  acceptance  or
               availability of other employment.

4.   Restrictive Covenants; Non-Competition.

     The parties  hereto  recognize  that  Executive's  services are special and
unique  and that the  level  of  compensation  and the  provisions  herefor  for
compensation are partly in consideration of and conditioned upon Executive's not
competing with the Company.

     (a)  Except as otherwise  permitted  hereby,  or by the Company's  Board of
          Directors,  Executive shall treat as confidential  and not communicate
          or divulge to any other  person or entity any  information  related to
          the Company or its  affiliates  or the business,  affairs,  prospects,
          financial  condition  or  ownership  of  the  Company  or  any  of its
          affiliates (the "Information")  acquired by Executive from the Company
          or the  Company's  other  employees  or  agents,  except (i) as may be
          required to comply with legal  proceedings  (provided,  that, prior to
          such disclosure in legal  proceedings  Executive  notifies the Company
          and reasonably cooperates with any efforts by the Company to limit the
          scope of such disclosure or to obtain  confidential  treatment thereof
          by the  court or  tribunal  seeking  such  disclosure)  or (ii)  while
          employed by the Company, as Executive reasonably believes necessary in
          performing her duties.  Executive  shall use the  Information  only in
          connection  with the  performance  of her  duties  hereunder,  and not
          otherwise  for her  benefit  or the  benefit  of any  other  person or
          entity. For the purposes of the Agreement,  Information shall include,
          but  not  be  limited  to,  any  confidential  information  concerning
          clients,  subscribers,  marketing, business and operational methods of
          the Company or its  affiliates  and its and its  affiliates'  clients,
          subscribers, contracts, financial or other data, technical data or any
          other confidential or proprietary information possessed, owned or used
          by   the   Company.   Excluded   from   Executive's   obligations   of
          confidentiality  is any part of such Information  that: (i) was in the
          public  domain  prior  to the  date  of  commencement  of  Executive's
          employment  with the  Company or (ii) enters the public  domain  other
          than as a result of Executive's breach of this covenant.  This Section
          (4) (a) shall  survive  the  expiration  or  termination  of the other
          provisions of this Agreement.


                                       5
<PAGE>

     (b)  Executive  shall  fully  disclose  to  the  Company  all  discoveries,
          concepts,  and ideas,  whether or not patentable,  including,  but not
          limited to, processes,  methods,  formulas, and techniques, as well as
          improvements  thereof  or  know-how  related  thereto   (collectively,
          "Inventions")  concerning or relating to the business conducted by the
          Company and concerning  any present or  prospective  activities of the
          Company which are published,  made or conceived by Executive, in whole
          or in part, during Executive's employment with the Company.

     (c)  Executive  shall  make  applications  in due  form for  United  States
          letters patent and foreign  letters  patent on such  Inventions at the
          request of the Company  and at its  expense,  but  without  additional
          compensation to Executive.  Executive  further agrees that any and all
          such  Inventions  shall be the  absolute  property  of  Company or its
          designees.  Executive  shall assign to the Company all of  Executive's
          right,  title and interest in any and all Inventions,  execute any and
          all  instruments  and do any and all acts  necessary  or  desirable in
          connection  with  any  such  application  for  letters  patent  or  to
          establish  and  perfect in the Company the entire  right,  title,  and
          interest in such  Inventions,  patent  applications,  or patents,  and
          shall execute any instrument necessary or desirable in connection with
          any continuations,  renewals, or reissues thereof or in the conduct of
          any related proceedings or litigation.

     (d)  During Executive's employment with the Company and for a period of one
          (1) year after the earlier of the expiration date of this Agreement or
          the termination  Executive's  employment  hereunder by the Company for
          Cause or by Executive  (other than for Good Reason) or subsequent to a
          Change in Control, as hereinafter defined:

          (i)  Executive  will not,  directly or  indirectly,  engage in, own or
               control an interest in (except as a passive  investor in publicly
               held  companies  and  except  for  investments  held at the  date
               hereof)  or act as an  officer,  director,  or  employee  of,  or
               consultant  or adviser  to,  any  entity  located in any state in
               which the  Company  provides  or has  provided  its  services  or
               products  (the  "Covered  Area"),  that  competes,   directly  or
               indirectly, with any of the products or services being offered or
               actively  under  consideration  for  offer  during  the  term  of
               Executive's employment with the Company;

          (ii) Executive  will not  recruit  or hire any  employee,  independent
               contractor  or vendor of the Company,  or  otherwise  induce such
               employee,  independent contractor or vendor to leave the Company,
               to  become  an  employee  of  or  otherwise  be  associated  with
               Executive or any company or business  with which  Executive is or
               may become associated.

          (iii) Executive  will not  solicit  or  accept  from any  customer  or
               account of the  Company  existing at the time or within 12 months
               preceding the  termination  of  Executive's  employment  with the
               Company,  any  business of the kind  offered or  conducted by the
               Company as of the termination of the Executive's  employment with
               the Company.

     (e)  If any portion of the restrictive  covenants contained in this Section
          4 are held to be  unreasonable,  arbitrary or against  public  policy,
          each  covenant  shall  be  considered  divisible  both as to time  and


                                       6
<PAGE>

          geographic  area,  such that each month  within the  specified  period
          shall be deemed a separate  period of time and each county  within the
          Covered Area shall be deemed a separate  geographical area,  resulting
          in an  intended  requirement  that  the  longest  lesser  time and the
          largest lesser  geographic  area  determined  not to be  unreasonable,
          arbitrary,  or against  public  policy shall remain  effective  and be
          specifically enforceable against the Executive.

     (f)  Each  restrictive  covenant on the part of the  Executive set forth in
          this  Agreement  shall be construed as a covenant  independent  of any
          other covenant or provision of this  Agreement or any other  agreement
          which the  Executive may have,  whether fully  performed or executory,
          and the  existence  of any claim or cause of  action by the  Executive
          against  the  Company  whether  predicated  upon  another  covenant or
          provision of this Agreement or otherwise,  shall not, unless otherwise
          allowed by applicable law,  constitute a defense to the enforcement by
          the Company of any other covenant.

     (g)  The period of time  during  which the  Executive  is  prohibited  from
          engaging  in the  practices  identified  in this  Section  4 shall  be
          extended by any length of time during which the Executive is in breach
          of such covenants.

5.   Change of Control.

     In the event of a Change of Control, the following provisions shall apply:

     (a)  If, immediately upon a Change of Control or at any time within one (1)
          year  thereafter,  Executive is no longer  employed by the Company (or
          any entity to which this Agreement may be assigned in connection  with
          such Change of Control) for any reason other than  Executive's  death,
          legal  incapacity  or  disability,  Executive  shall  be  entitled  to
          receive, within 10 days after the termination date, a lump sum payment
          ("Change  of  Control  Payment")  equal  to one  half  the  amount  of
          Executive's  annual Base Salary then in effect plus any other  amounts
          accrued  and  unpaid  as of the  date  of  termination  (i.e.,  earned
          bonuses, car allowance,  unreimbursed business expenses, and any other
          amount due to Executive under employee benefit or fringe benefit plans
          of the Company).  Notwithstanding the foregoing, if Executive shall so
          request,  any Change of Control  Payment may be paid to  Executive  in
          substantially  equal  monthly  installments,  or  more  frequently  in
          accordance with the Company's usual payroll policy. Additionally,  any
          and all  options,  warrants or other  securities  awarded to Executive
          pursuant to the Company's  Stock Option Plan or any other similar plan
          shall, as of the date of Executive's termination, immediately vest and
          become  exercisable by Executive for the duration of the period during
          which the options,  warrants or other  securities  would have remained
          exercisable if Executive had remained employed by the Company.

     (b)  For purposes of this Section 5, a "Change of Control"  shall be deemed
          to occur upon any of the following events:

          (1)  Any "person" or "group"  within the meaning of Sections 13(d) and
               14(d)(2) of the Exchange Act (i) becomes the "beneficial  owner,"
               as defined in Rule 13d-3 under the  Exchange  Act, of 50% or more
               of the combined  voting power of the Company's  then  outstanding


                                       7
<PAGE>

               securities,  otherwise  than through a  transaction  or series of
               related  transactions  arranged by, or consummated with the prior
               approval of, the Board or (ii) acquires by proxy or otherwise the
               right  to  vote  50% or  more  of  the  then  outstanding  voting
               securities of the Company,  otherwise than through an arrangement
               or arrangements consummated with the prior approval of the Board,
               for the election of directors, for any merger or consolidation of
               the Company or for any other matter or question.

          (2)  During any period of 12  consecutive  months (not  including  any
               period prior to the adoption of this Section),  Present Directors
               and/or  New  Directors  cease  for any  reason  to  constitute  a
               majority of the Board.  For purposes of the  preceding  sentence,
               "Present  Directors"  shall mean individuals who at the beginning
               of such  consecutive  12-month  period were members of the Board,
               and "New Directors" shall mean any director whose election by the
               Board  or  whose   nomination   for  election  by  the  Company's
               stockholders was approved by a vote of at least two-thirds of the
               directors then still in office who were Present  Directors or New
               Directors.

          (3)  Consummation of (i) any consolidation or merger of the Company in
               which the Company is not the continuing or surviving  corporation
               or pursuant  to which  shares of Stock  would be  converted  into
               cash,  securities or other  property,  other than a merger of the
               Company in which the  holders of Stock  immediately  prior to the
               merger have the same  proportion and ownership of common stock of
               the surviving  corporation  immediately  after the merger or (ii)
               any sale,  lease,  exchange or other transfer (in one transaction
               or a series of related  transactions)  of all,  or  substantially
               all,  of  the  assets  of  the  Company;   provided,   that,  the
               divestiture of less than  substantially  all of the assets of the
               Company in one  transaction or a series of related  transactions,
               whether effected by sale, lease,  exchange,  spin-off sale of the
               stock  or  merger  of  a  subsidiary  or  otherwise,   shall  not
               constitute a Change in Control.

     For purposes of this Section 5(b),  the rules of Section 318(a) of the Code
     and the  regulations  issued  thereunder  shall be used to determine  stock
     ownership.

     (c)  Excise Tax  Gross-Up.  If  Executive  becomes  entitled to one or more
          payments (with a "payment"  including the vesting of restricted stock,
          a stock  option,  or other  non-cash  benefit  or  property),  whether
          pursuant to the terms of this Agreement or any other plan or agreement
          with the Company or any affiliated company  (collectively,  "Change of
          Control  Payments"),  which are or become  subject to the tax ("Excise
          Tax") imposed by Section 4999 of the Internal Revenue Code of 1986, as
          amended (the  "Code"),  the Company shall pay to Executive at the time
          specified  below  such  amount  (the  "Gross-up  Payment")  as  may be
          necessary to place  Executive in the same after-tax  position as if no
          portion of the  Change of Control  Payments  and any  amounts  paid to
          Executive  pursuant  to this  paragraph  5(c) had been  subject to the
          Excise Tax. The Gross-up  Payment shall include,  without  limitation,
          reimbursement  for any  penalties  and  interest  that may  accrue  in
          respect of such Excise Tax. For purposes of determining  the amount of


                                       8
<PAGE>

          the Gross-up  Payment,  Executive shall be deemed:  (A) to pay federal
          income taxes at the highest  marginal rate of federal income  taxation
          for the year in which the Gross-up  Payment is to be made;  and (B) to
          pay any  applicable  state  and  local  income  taxes  at the  highest
          marginal  rate of taxation for the calendar year in which the Gross-up
          Payment is to be made, net of the maximum  reduction in federal income
          taxes which could be obtained  from  deduction of such state and local
          taxes  if  paid  in  such  year.  If the  Excise  Tax is  subsequently
          determined to be less than the amount taken into account  hereunder at
          the time the Gross-up  Payment is made,  Executive  shall repay to the
          Company at the time that the amount of such reduction in Excise Tax is
          finally determined (but, if previously paid to the taxing authorities,
          not prior to the time the  amount of such  reduction  is  refunded  to
          Executive or otherwise realized as a benefit by Executive) the portion
          of the  Gross-up  Payment that would not have been paid if such Excise
          Tax had been used in initially  calculating the Gross-up Payment, plus
          interest  on the  amount of such  repayment  at the rate  provided  in
          Section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is
          determined  to exceed the amount taken into  account  hereunder at the
          time  the  Gross-up  Payment  is  made,  the  Company  shall  make  an
          additional  Gross-up  Payment  in  respect  of such  excess  (plus any
          interest  and  penalties  payable  with respect to such excess) at the
          time that the amount of such excess is finally determined.

          The Gross-up  Payment provided for above shall be paid on the 30th day
          (or such earlier date as the Excise Tax becomes due and payable to the
          taxing  authorities)  after it has been  determined that the Change of
          Control  Payments  (or any portion  thereof) are subject to the Excise
          Tax; provided, however, that if the amount of such Gross-up Payment or
          portion  thereof  cannot be finally  determined on or before such day,
          the  Company  shall  pay to  Executive  on such  day an  estimate,  as
          determined  by  counsel  or  auditors  selected  by  the  Company  and
          reasonably  acceptable  to  Executive,  of the minimum  amount of such
          payments.  The Company  shall pay to Executive  the  remainder of such
          payments  (together  with  interest  at the rate  provided  in Section
          1274(b)(2)(B)  of the  Code)  as soon  as the  amount  thereof  can be
          determined.  In the event  that the amount of the  estimated  payments
          exceeds  the amount  subsequently  determined  to have been due,  such
          excess shall constitute a loan by the Company to Executive, payable on
          the fifth day after demand by the Company  (together  with interest at
          the rate provided in Section  1274(b)(2)(B)  of the Code). The Company
          shall  have the right to control  all  proceedings  with the  Internal
          Revenue  Service that may arise in connection  with the  determination
          and assessment of any Excise Tax and, at its sole option,  the Company
          may pursue or forego any and all administrative appeals,  proceedings,
          hearings, and conferences with any taxing authority in respect of such
          Excise Tax  (including any interest or penalties  thereon);  provided,
          however, that the Company's control over any such proceedings shall be
          limited to issues with  respect to which a Gross-up  Payment  would be
          payable  hereunder,  and  Executive  shall be  entitled  to  settle or
          contest any other issue raised by the Internal  Revenue Service or any
          other taxing authority.  Executive shall cooperate with the Company in
          any proceedings  relating to the  determination  and assessment of any
          Excise  Tax and  shall not take any  position  or  action  that  would
          materially increase the amount of any Gross-up Payment hereunder.


                                       9
<PAGE>

6.   No Violation.

     Executive  warrants that the  execution and delivery of this  Agreement and
the performance of her duties  hereunder will not violate the terms of any other
agreement  to  which  she is a party  or by which  she is  bound.  Additionally,
Executive  warrants  that  Executive  has not  brought and will not bring to the
Company or use in the performance of Executive's responsibilities at the Company
any materials or documents of a former employer that are not generally available
to the public,  unless Executive has obtained express written authorization from
the former employer for their possession and use. Executive  represents that she
is not and, since the  commencement  of Executive's  employment with the Company
has   not   been  a   party   to  any   employment,   proprietary   information,
confidentiality,   or  noncompetition  non-competition  agreement  with  any  of
Executive's  former  employers  which remains in effect as the date hereof.  The
warranties  set  forth  in  this  Section  6 shall  survive  the  expiration  or
termination of the other provisions of this Agreement.

7.   Breach by Executive.

     Both  parties  recognize  that  the  services  to be  rendered  under  this
Agreement by Executive are special,  unique and extraordinary in character,  and
that in the event of the breach by Executive of the terms and conditions of this
Agreement to be performed by him or in the event Executive performs services for
any person,  firm or  corporation  engaged in a competing  line of business with
Company,  the Company  shall be  entitled,  if it so elects,  to  institute  and
prosecute proceedings in any court of competent jurisdiction,  whether in law or
in equity, to, by way of illustration and not limitation, obtain damages for any
breach of this  Agreement,  or to enforce the  specific  performance  thereof by
Executive, or to enjoin Executive from competing with the Company or, performing
services for himself or any such other person, firm or corporation.  The Company
may obtain an injunction restraining any such breach by Executive and no bond or
other  security  shall be  required  in  connection  therewith.  The Company and
Executive each consent to the  jurisdiction  of United States  Federal  District
Court for the Northern District of Alabama.

8.   Miscellaneous.

     (a)  This  Agreement  shall be binding upon and inure to the benefit of the
          Company,  its  successors,  and  assigns  and may not be  assigned  by
          Executive.

     (b)  This Agreement contains the entire agreement of the parties hereto and
          supersedes  all  prior  or  concurrent  agreements,  whether  oral  or
          written,  relating to the subject matter hereof. This Agreement may be
          amended only by a writing signed by the party against whom enforcement
          is sought.


                                       10
<PAGE>

     (c)  THIS AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH
          THE LAWS OF THE STATE OF ALABAMA  WITHOUT  REGARD TO ITS  CONFLICTS OF
          LAWS, RULES OR PRINCIPLES.

     (d)  Any notices or other  communications  required or permitted  hereunder
          shall be in writing and shall be deemed  effective  when  delivered in
          person  or, if mailed,  on the date of  deposit in the mails,  postage
          prepaid,  to the other party at the  respective  address of such party
          set forth herein or to such other address as shall have been specified
          in writing by either party to the other in accordance herewith.

     (e)  The provisions of Sections 4(a),  4(d) and 6 and the other  provisions
          of this  Agreement  which by their terms  contemplate  survival of the
          termination  of this  Agreement,  shall  survive  termination  of this
          Agreement and be deemed to be independent covenants.

     (f)  If any term or provision of this  Agreement or its  application to any
          person or circumstance is to any extent invalid or unenforceable,  the
          remainder  of this  Agreement,  or the  application  of  such  term or
          provision to persons or circumstances  other than those as to which it
          is held invalid or unenforceable,  shall not be affected thereby,  and
          each term and  provision  shall be valid and  enforced  to the fullest
          extent permitted by law.

     (g)  No delay or omission to exercise any right,  power or remedy  accruing
          to any party hereto  shall  impair any such right,  power or remedy or
          shall be construed to be a waiver of or an  acquiescence to any breach
          hereof.  No waiver of any breach of this Agreement  shall be deemed to
          be a waiver  of any  other  breach of this  Agreement  theretofore  or
          thereafter  occurring.  Any waiver of any  provision  hereof  shall be
          effective only to the extent  specifically set forth in the applicable
          writing.  All  remedies  afforded  under this  Agreement  to any party
          hereto,  by law or otherwise,  shall be cumulative and not alternative
          and  shall not  preclude  assertion  by any party  hereto of any other
          rights or the  seeking of any other  rights or  remedies  against  any
          other party hereto.

     (h)  It is the intent of the  Company  that  Executive  not be  required to
          incur  any  legal  fees  or  disbursements  associated  with  (i)  the
          interpretation  of any  provision  in,  or  obtaining  of any right or
          benefit under this  Agreement,  or (ii) the  enforcement of her rights
          under this Agreement,  including,  without limitation by litigation or
          other  legal  action,  because  the cost  and  expense  thereof  would
          substantially  detract  from the  benefits to be extended to Executive
          hereunder.  Accordingly,  the Company irrevocably authorizes Executive
          from time to time to retain  counsel of her choice,  at the expense of
          the  Company  as  hereafter   provided,   to  represent  Executive  in
          connection  with  the   interpretation   and/or  enforcement  of  this
          Agreement,  including without  limitation the initiation or defense of
          any  litigation  or other  legal  action,  whether by or  against  the
          Company, or any Director,  officer,  stockholder,  or any other person
          affiliated with the Company in any jurisdiction. The Company shall pay
          or cause to be paid and  shall be solely  responsible  for any and all
          reasonable  attorneys'  and  related  fees and  expenses  incurred  by
          Executive under this Section 8(h).


                                       11
<PAGE>

     (i)  The Background  section of this Agreement is hereby  incorporated into
          the Operative Provisions of this Agreement.

9.   Indemnification.

     The Company agrees to indemnify  Executive to the fullest extent  permitted
by  applicable  law,  as  such  law  may  be  hereafter  amended,   modified  or
supplemented  and to the  fullest  extent  permitted  by each  of the  Company's
Restated  Certificate of Incorporation and the Company's  Restated  By-Laws,  as
from time to time amended, modified or supplemented.  The Company further agrees
that  Executive  is entitled  to the  benefits of any  directors  and  officers'
liability  insurance policy, in accordance with the terms and conditions of that
policy, if such a policy is maintained by the Company.


     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first stated above.

                                         COMPANY
                                         -------

                                         DIGITAL FUSION, INC.



                                         By:  /s/ Gary S. Ryan
                                            ------------------------------------
                                         Its: President



                                         EXECUTIVE
                                         ---------

                                          /s/ Maria A. Sepulveda
                                         ---------------------------------------
                                         Maria A. Sepulveda




                                       12
<PAGE>


                                    EXHIBIT A
                                    ---------

Stock Options*
--------------

Stock Option Grant 1
--------------------

     The Company  hereby  awards to  Executive an option to purchase One Hundred
Twenty Thousand  (120,000)  shares of the Company's  Common Stock. The price per
share shall be  determined on the effective  date of the grant.  Forty  Thousand
(40,000) shares shall vest one hundred percent (100%)  immediately,  pursuant to
the terms and  conditions,  as set forth in the Company's  Stock Option Plan and
Agreement.   The  remaining  Eighty  Thousand  (80,000)  shares  shall  vest  in
accordance with the performance schedule below.

     Performance Vesting I
     ---------------------

     Forty  Thousand  (40,000)  shares  will  vest one  hundred  percent  (100%)
immediately the following if the Company's  trailing four (4) quarters'  revenue
is more than $50  million  with  minimum  net  income of $3.5  million OR if the
Company's  trailing  four (4)  quarters'  earnings  is more than  $5.0  million.
Revenue  shall be based on GAAP;  however,  they shall be adjusted to  eliminate
extraordinary  one-time  events such as expensing  acquisition  costs or revenue
associated with an acquisition.

     Performance Vesting II
     ----------------------

     Forty  Thousand  (40,000)  shares  will  vest one  hundred  percent  (100%)
immediately the following if the Company's  trailing four (4) quarters'  revenue
is more than $65  million  with  minimum  net  income of $4.6  million OR if the
Company's  trailing  four (4)  quarters'  earnings  is more than  $6.5  million.
Revenue  shall be based on GAAP;  however,  they shall be adjusted to  eliminate
extraordinary  one-time  events such as expensing  acquisition  costs or revenue
associated with an acquisition.

Stock Option Grant 2
--------------------

     The Company hereby awards to Executive an option to purchase Sixty Thousand
(60,000)  shares of the  Company's  Common  Stock.  The price per share shall be
determined  on the  effective  date of the grant.  The Sixty  Thousand  (60,000)
shares shall vest in accordance with the performance schedule below.

     Performance Vesting I
     ---------------------

     Thirty  Thousand  (30,000)  shares  will vest one  hundred  percent  (100%)
immediately upon the Northeast Region earning $10 million in revenue.

     Performance Vesting II
     ----------------------

     Thirty  Thousand  (30,000)  shares  will vest one  hundred  percent  (100%)
immediately upon the Northeast Region earning $20 million in revenue.


* During the period of the Executive's employment, Executive will be entitled to
further participate in the Company's Stock Ownership Plan, as the Board of
Directors, in its sole discretion, may determine.


                                       13