Document:

Exhibit 10.3

                            STOCK PURCHASE AGREEMENT

                                      AMONG

                              DIGITAL FUSION, INC.

                                       AND

                                MICHAEL W. WICKS

                                October 28, 2004

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                                TABLE OF CONTENTS

                                                                          Page

1. Definitions...............................................................1
2. Purchase and Sale of Company Shares.......................................4
   (a) Basic Transaction.....................................................4
   (b) Purchase Price........................................................4
   (c) The Closing...........................................................5
   (d) Deliveries at the Closing.............................................5
3. Assumption of Company Accounts............................................5
4. Representations and Warranties Concerning the Transaction.................5
   (a) Representations and Warranties of the Seller..........................5
   (b) Representations and Warranties of the Buyer...........................7
5. Representations and Warranties Concerning the Company.....................8
   (a) Organization, Qualification, and Corporate Power......................8
   (b) Capitalization........................................................8
   (c) Noncontravention......................................................8
   (d) Brokers' Fees.........................................................9
   (e) Title to Tangible Assets..............................................9
   (f) Subsidiaries..........................................................9
   (g) Financial Statements..................................................9
   (h) Events Subsequent to Most Recent Fiscal Month End.....................9
   (i) Legal Compliance......................................................9
   (j) Tax Matters..........................................................10
   (k) Real Property........................................................10
   (l) Contracts............................................................10
   (m) Intellectual Property................................................11
   (n) Powers of Attorney...................................................11
   (o) Litigation...........................................................11
   (p) Employee Benefits....................................................11
   (q) Insurance............................................................12
   (r) Labor Matters........................................................12
   (s) Undisclosed Liabilities..............................................13
6. Pre-Closing Covenants....................................................13
   (a) General..............................................................13
   (b) Notices and Consents.................................................13
   (c) Operation of Business................................................13
   (d) Full Access; Cooperation.............................................13
   (e) Notice of Developments...............................................14
7. Post-Closing Covenants...................................................14
   (a) General..............................................................14
   (b) Litigation Support...................................................15
   (c) Transition...........................................................15

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   (d) Seller's Employment Agreement........................................15
   (e) Company Employees....................................................15
8. Conditions to Obligation to Close........................................16
   (a) Conditions to Obligation of the Buyer................................16
   (b) Conditions to Obligation of the Seller...............................17
9. Remedies for Breaches of This Agreement..................................18
   (a) Survival of Representations and Warranties...........................18
   (b) Obligations of Seller................................................18
   (c) Indemnification Obligations of Buyer.................................19
   (d) Procedures...........................................................19
   (e) Adjustments to Losses................................................20
   (f) Maximum Indemnification..............................................20
   (g) Time For Making Claims...............................................20
   (h) Exclusive Remedy.....................................................21
   (i) Treatment of Payments................................................21
   (j) Offset...............................................................21
10. Termination.............................................................21
   (a) Termination of Agreement.............................................21
   (b) Effect of Termination................................................22
   (c) Break-Up Fee.........................................................22
11. Miscellaneous...........................................................23
   (a) Press Releases and Public Announcements..............................23
   (b) No Third-Party Beneficiaries.........................................23
   (c) Entire Agreement.....................................................23
   (d) Succession and Assignment............................................23
   (e) Counterparts.........................................................23
   (f) Headings.............................................................23
   (g) Notices..............................................................23
   (h) Governing Law........................................................24
   (i) Amendments and Waivers...............................................24
   (j) Severability.........................................................25
   (k) Expenses.............................................................25
   (l) Construction.........................................................25
   (m) Incorporation of Exhibits and Schedules..............................25

Exhibit A=Subordinated Convertible Promissory Note
Exhibit B=Financial Statements
Exhibit C=Reserved
Exhibit D=Form of Seller's Employment Agreement
Exhibit E=Form of Registration Rights Agreement
Exhibit F=Form of Security Agreement
Exhibit G=Escrow Agreement

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                            STOCK PURCHASE AGREEMENT

         This Stock Purchase Agreement ("Agreement") is entered into as of
October 28, 2004, by and among Digital Fusion, Inc., a Delaware corporation (the
"Buyer"), and Michael W. Wicks (the "Seller"). The Buyer and the Seller are
referred to collectively herein as the "Parties."

         WHEREAS, the Seller owns all of the outstanding capital stock of Summit
Research Corporation, an Alabama corporation (the "Company"); and

         WHEREAS, this Agreement contemplates a transaction in which the Buyer
will purchase from the Seller, and the Seller will sell to the Buyer, all of the
outstanding capital stock of the Company in return for the consideration set
forth below.

         NOW, THEREFORE, in consideration of the premises and the mutual
promises herein made, and for other good and valuable consideration the receipt
and sufficiency is hereby acknowledged, the Parties agree as follows.

         1        Definitions.

          "Adverse Consequences" means all actions, suits, proceedings,
hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs,
reasonable amounts paid in settlement, liabilities, obligations, taxes, liens,
losses, expenses, and fees, including court costs and reasonable attorneys' fees
and expenses.

         "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.

         "Agreement" means this Stock Purchase Agreement between Buyer and the
Seller.

         "Buyer" has the meaning set forth in the preface above.

          "Cash" means cash and cash equivalents (including marketable
securities and short term investments) calculated in accordance with GAAP
applied on a basis consistent with the preparation of the Financial Statements.

         "Closing" has the meaning set forth in Section 2(e) below.

         "Closing Date" has the meaning set forth in Section 2(e) below.

         "Code" means the Internal Revenue Code of 1986, as amended.

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         "Company" has the meaning set forth in the preface above.

         "Company Letter" has the meaning set forth in Section 5 below.

         "Company Share" means any share of the common stock of the Company.

         "Confidential Information" means any information concerning the
businesses and affairs of the Company that is not already generally available to
the public.

          "Break-Up Fee" has the meaning set forth in Section 10(c) of this
Agreement.

         "Employee Benefit Plan" means any (a) nonqualified deferred
compensation or retirement plan or arrangement which is an Employee Pension
Benefit Plan, (b) qualified defined contribution retirement plan or arrangement
which is an Employee Pension Benefit Plan, (c) qualified defined benefit
retirement plan or arrangement which is an Employee Pension Benefit Plan
(including any Multiemployer Plan), or (d) Employee Welfare Benefit Plan.

         "Employee Pension Benefit Plan" has the meaning set forth in ERISA
Sec. 3(2).

         "Employee Welfare Benefit Plan" has the meaning set forth in ERISA
Sec. 3(1).

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

          "Financial Statement" has the meaning set forth in Section 5(g) below.

         "GAAP" means United States generally accepted accounting principles as
in effect from time to time.

         "Income Tax" means any federal, state, local, or foreign income tax,
including any interest, penalty, or addition thereto, whether disputed or not.

         "Income Tax Return" means any return, declaration, report, claim for
refund, or information return or statement relating to Income Taxes, including
any schedule or attachment thereto.

         "Indemnified Party" has the meaning set forth in Section 9(d) below.

         "Indemnifying Party" has the meaning set forth in Section 9(d) below.

         "Knowledge" means actual knowledge without independent investigation.

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         "Most Recent Financial Statements" has the meaning set forth in Section
5(g) below.

         "Most Recent Fiscal Month End" has the meaning set forth in Section
5(g) below.

          "Ordinary Course of Business" means the ordinary course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

         "Parties" has the meaning set forth in the preface above.

          "Person" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department, agency, or political
subdivision thereof).

         "Purchase Price" has the meaning set forth in Section 2(b) below.

         "Retained Assets" means the assets of the Company listed in Section
2(e) of the Company Letter.

          "Securities Act" means the Securities Act of 1933, as amended.

         "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         "Security Interest" means any mortgage, pledge, lien, encumbrance,
charge, or other security interest, other than (a) mechanic's, materialmen's,
and similar liens, (b) liens for taxes not yet due and payable, (c) purchase
money liens and liens securing rental payments under capital lease arrangements,
and (d) other liens arising in the Ordinary Course of Business and not incurred
in connection with the borrowing of money.

         "Seller" has the meanings set forth in the preface above.

         "Subsidiary" means any corporation with respect to which a specified
Person (or a Subsidiary thereof) owns a majority of the common stock or has the
power to vote or direct the voting of sufficient securities to elect a majority
of the directors.

         "Tangible Net Worth" means total assets less intangible assets and
total liabilities of the Company.

         "Tax" means any national, local or foreign income, sales, use, excise,
franchise, ad valorem, real and personal property, transfer, gross receipt,
stamp, premium, profits, windfall profits, capital stock, production, business
and occupation, or similar taxes imposed by any taxing authority, any interest
and penalties (civil or criminal), additions to tax, payments in lieu of taxes
or additional amounts related thereto or to the nonpayment thereof.

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         "Third Party Claim" has the meaning set forth in Section 9(d) below.

         2        Purchase and Sale of Company Shares.

                  (a) Basic Transaction. On and subject to the terms and
conditions of this Agreement, the Buyer agrees to purchase from the Seller, and
the Seller agrees to sell to the Buyer, all of his Company Shares for the
consideration specified below in this Section 2.

                  (b) Purchase Price. The aggregate consideration to be paid to
the Seller hereunder (the "Purchase Price") shall consist of the following:

                           (i) at the Closing, the Buyer shall pay the Seller
         the sum of $1,600,000 by delivery of cash payable by wire transfer or
         delivery of other immediately available funds;

                           (ii) at the Closing, the Buyer shall issue to the
         Seller 575,000 shares of the Buyer's common stock. Upon acceptance of
         such Buyer common stock, the Seller shall be deemed to make with
         respect to such 575,000 shares the same representations, warranties and
         covenants as set forth in the convertible promissory note referenced in
         Section 2(b)(iv), below;

                           (iii) on the six month anniversary of the Closing,
         the Buyer shall pay the Seller the sum of $600,000.00 plus an
         additional amount equal to the excess of the Company's Tangible Net
         Worth at the Closing Date in excess of $900,000.00 (the "Second
         Payment"). The Tangible Net Worth of the Company at the Closing Date
         shall be determined by the Company's independent certified public
         accountants, subject to review by the Buyer's independent certified
         public accountants. The closing balance sheet will exclude any
         provision for unpaid income taxes, but otherwise will be determined in
         accordance with GAAP applied in a manner consistent with how GAAP was
         applied by the Company prior to the Closing Date. If the two accounting
         firms are unable to agree on a closing balance sheet, they shall choose
         a third firm of independent certified public accountants who will make
         a final determination as to the Tangible Net Worth of the Company at
         the Closing Date. Once determined, the amount of the Second Payment
         shall bear interest at a rate of 6% per annum from the Closing Date to
         the date of the payment of the Second Payment. The Second Payment may
         be prepaid by the Buyer without penalty; and

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                           (iv) at the Closing, the Buyer shall issue to Seller
         and/or his designees a convertible promissory note or notes in the
         cumulative amount of $2,700,000.00 in the form of Exhibit A hereto. To
         the extent that the Company's Tangible Net Worth at the Closing Date is
         less than $900,000, this Note shall be reduced by that same amount.

                  (c) The Closing. The closing of the transactions contemplated
by this Agreement (the "Closing") shall take place at the offices of the Buyer
in Huntsville, Alabama, commencing at 9:00 a.m. local time on January 3, 2005
subject to the satisfaction or waiver of all conditions to the obligations of
the Parties to consummate the transactions contemplated hereby (other than
conditions with respect to actions the respective Parties will take at the
Closing itself) or such other date as the Buyer and the Seller may mutually
determine (the "Closing Date").

                  (d) Deliveries at the Closing. At the Closing, (i) the Seller
will deliver to the Buyer the various certificates, instruments, and documents
referred to in Section 8(a) below, (ii) the Buyer will deliver to the Seller the
various certificates, instruments, and documents referred to in Section 8(b)
below, (iii) the Seller will deliver to the Buyer stock certificates
representing all of his Company Shares, endorsed in blank or accompanied by duly
executed assignment documents, and (iv) the Buyer will deliver to the Seller the
consideration specified in Section 2(b) above.

                  (e) Retained Assets. Notwithstanding anything herein to the
contrary, prior to or at the Closing, Seller shall cause the Company to
distribute to Seller the Retained Assets, which distribution of Retained Assets
shall commensurately reduce the Company's Tangible Net Worth at the Closing
Date.

         3. Assumption of Company Accounts. Upon Closing, the Seller shall
transfer and assign to the Buyer, and Buyer shall receive and assume, all right,
title, interest and obligation with respect to the Company's accounts receivable
and accounts payable arising in the Ordinary Course of Business which are
outstanding as of Closing.

         4. Representations and Warranties Concerning the Transaction.

                  (a) Representations and Warranties of the Seller. The Seller
represents and warrants to the Buyer that the statements contained in this
Section 4(a) are correct and complete as of the date of this Agreement and will
be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Section 4(a)).

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                           (i) Authorization of Transaction. The Seller has full
         power and authority to execute and deliver this Agreement and to
         perform his obligations hereunder. This Agreement constitutes the valid
         and legally binding obligation of the Seller, enforceable in accordance
         with its terms and conditions. Except as set forth in Section 4(a)(i)
         of the Company Letter, the Seller need not give any notice to, make any
         filing with, or obtain any authorization, consent, or approval of any
         government or governmental agency in order to consummate the
         transactions contemplated by this Agreement.

                           (ii) Noncontravention. Except as set forth in Section
         4(a)(ii) of the Company Letter, neither the execution and the delivery
         of this Agreement, nor the consummation of the transactions
         contemplated hereby, will (A) violate or conflict with any provision of
         the Articles of Incorporation or Bylaws of the Company; (B) violate or
         result in a breach of or constitute (with due notice or lapse of time,
         or both) a default under, or give rise to a right to terminate,
         accelerate payments under, or modify, any contract, lease, loan
         agreement, mortgage, security agreement or other agreement or
         instrument (whether or not the same is in writing) to which the Seller
         or the Company is a party or by which either of them is bound or to
         which any of their properties or assets is subject; or (C) violate any
         constitution, statute, regulation, rule, injunction, judgment, order,
         decree, ruling, charge, or other restriction of any government,
         governmental agency, or court to which the Seller is subject.

                           (iii) Brokers' Fees. The Seller has no liability or
         obligation to pay any fees or commissions to any broker, finder, or
         agent with respect to the transactions contemplated by this Agreement
         for which the Buyer could become liable or obligated.

                           (iv) Company Shares. The Seller holds of record and
         owns beneficially the number of Company Shares set forth next to his or
         its name in Section 5(b) of the Company Letter, free and clear of any
         restrictions on transfer (other than restrictions under the Securities
         Act and state securities laws), taxes, Security Interests, options,
         warrants, purchase rights, contracts, commitments, equities, claims,
         and demands. The Seller is not a party to any option, warrant, purchase
         right, or other contract or commitment that could require the Seller to
         sell, transfer, or otherwise dispose of any capital stock of the
         Company (other than this Agreement). The Seller is not a party to any
         voting trust, proxy, or other agreement or understanding with respect
         to the voting of any capital stock of the Company.

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                  (b) Representations and Warranties of the Buyer. The Buyer
represents and warrants to the Seller that the statements contained in this
Section 4(b) are correct and complete as of the date of this Agreement and will
be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Section 4(b)).

                           (i) Organization of the Buyer. The Buyer is a
         corporation duly organized, validly existing, and in good standing
         under the laws of the jurisdiction of its incorporation and the State
         of Alabama.

                           (ii) Authorization of Transaction. The Buyer has full
         power and authority (including full corporate power and authority) to
         execute and deliver this Agreement and to perform its obligations
         hereunder. This Agreement constitutes the valid and legally binding
         obligation of the Buyer, enforceable in accordance with its terms and
         conditions. The Buyer need not give any notice to, make any filing
         with, or obtain any authorization, consent, or approval of any
         government or governmental agency in order to consummate the
         transactions contemplated by this Agreement.

                           (iii) Noncontravention. Neither the execution and the
         delivery of this Agreement, nor the consummation of the transactions
         contemplated hereby, will (A) violate any constitution, statute,
         regulation, rule, injunction, judgment, order, decree, ruling, charge,
         or other restriction of any government, governmental agency, or court
         to which the Buyer is subject or any provision of its charter or bylaws
         or (B) conflict with, result in a breach of, constitute a default
         under, result in the acceleration of, create in any party the right to
         accelerate, terminate, modify, or cancel, or require any notice under
         any agreement, contract, lease, license, instrument, or other
         arrangement to which the Buyer is a party or by which it is bound or to
         which any of its assets is subject.

                           (iv) Brokers' Fees. The Buyer has no liability or
         obligation to pay any fees or commissions to any broker, finder, or
         agent with respect to the transactions contemplated by this Agreement
         for which the Seller could become liable or obligated.

         5. Representations and Warranties Concerning the Company. The Seller
represents and warrants to the Buyer that the statements contained in this
Section 5 are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
Section 5), except as set forth in the letter from the Company delivered by the
Seller to the Buyer on the date hereof (the "Company Letter").

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                  (a) Organization, Qualification, and Corporate Power. The
Company is a corporation duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its incorporation. The Company is duly
authorized to conduct business and is in good standing under the laws of each
jurisdiction where such qualification is required, except where the lack of such
qualification would not have a material adverse effect on the financial
condition of the Company. The Company has full corporate power and authority to
carry on the businesses in which it is engaged and to own and use the properties
owned and used by it. Section 5(a) of the Company Letter lists the directors and
officers of the Company.

                  (b) Capitalization. The entire authorized capital stock of the
Company consists of 100,000 Company Shares, of which 80,000 Company Shares are
issued and outstanding and no Company Shares are held in treasury. All of the
issued and outstanding Company Shares have been duly authorized, are validly
issued, fully paid, and nonassessable, and are held of record by the Seller as
set forth in Section 5(b) of the Company Letter. There are no outstanding or
authorized options, warrants, purchase rights, subscription rights, conversion
rights, exchange rights, or other contracts or commitments that could require
the Company to issue, sell, or otherwise cause to become outstanding any of its
capital stock. There are no outstanding or authorized stock appreciation,
phantom stock, profit participation, or similar rights with respect to the
Company.

                  (c) Noncontravention. Neither the execution and the delivery
of this Agreement, nor the consummation of the transactions contemplated hereby,
will (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which the Company is subject or any provision
of the articles of incorporation or bylaws of the Company or (ii) conflict with,
result in a breach of, constitute a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify, or cancel,
or require any notice under any agreement, contract, lease, license, instrument,
or other arrangement to which the Company is a party or by which it is bound or
to which any of its assets is subject (or result in the imposition of any
Security Interest upon any of its assets). The Company need not give any notice
to, make any filing with, or obtain any authorization, consent, or approval of
any government or governmental agency in order for the Parties to consummate the
transactions contemplated by this Agreement.

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                  (d) Brokers' Fees. Except as to legal or accounting fees, the
Company has no liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this
Agreement.

                  (e) Title to Tangible Assets. Except as set forth in Section
5(e) of the Company Letter, the Company has good and marketable title to, or a
valid leasehold interest in, the tangible assets it uses regularly in the
conduct of its businesses.

                  (f) Subsidiaries. The Company has no subsidiaries.

                  (g) Financial Statements. Attached hereto as Exhibit B are the
following financial statements (collectively the "Financial Statements"): (i)
unaudited balance sheets and statement of income as of and for the fiscal years
ended December 31, 2001, 2002, and 2003, for the Company; and (ii) unaudited
balance sheets and statement of income (the "Most Recent Financial Statements")
as of and for the nine months ended September 30, 2004 (the "Most Recent Fiscal
Month End") for the Company. The Financial Statements (including the notes
thereto) have been prepared in accordance with GAAP applied on a consistent
basis throughout the periods covered thereby and present fairly the financial
condition of the Company as of such dates and the results of operations of the
Company for such periods; provided, however, that the Most Recent Financial
Statements are subject to normal year-end adjustments and all of the Financial
Statements lack footnotes and other presentation items.

                  (h) Events Subsequent to Most Recent Fiscal Month End. Since
the Most Recent Fiscal Month End, there has not been any material adverse change
in the financial condition of the Company. Without limiting the generality of
the foregoing, since that date the Company has not engaged in any practice,
taken any action, or entered into any transaction outside the Ordinary Course of
Business the primary purpose or effect of which has been to generate or preserve
Cash.

                  (i) Legal Compliance. The Company has materially complied with
all material applicable laws (including rules, regulations, codes, plans,
injunctions, judgments, orders, decrees, rulings, and charges thereunder) of
federal, state, local, and foreign governments (and all agencies thereof).

                  (j) Tax Matters. The Company will pay and discharge, or cause
to be paid and discharged, before the same shall become overdue, all Taxes,
assessments and other governmental charges imposed upon the Company and its
respective real properties, sales and activities, or any part thereof, or upon
the income or profits therefrom, as well as all claims for labor, materials, or
supplies, which if unpaid might by law become a lien or charge upon any of its
properties; provided, however, that any such Tax, assessment, charge, levy or
claim need not be paid if the validity or amount thereof shall currently be
contested in good faith by appropriate proceedings and if the Company shall have
set aside on its books adequate reserves with respect thereto; provided,
further, that the Company will pay or cause to be paid all such Taxes,
assessments, charges, levies or claims forthwith upon the commencement of
foreclosure on any lien which may have attached as security therefor. The
Company has made a valid subchapter S election under the Code, and if it is
subsequently determined by the Internal Revenue Service that such election was
not properly made, any Taxes that are assessed against the Company by reason of
such failure shall be indemnified against by the Seller pursuant to this
Agreement.

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                  (k) Real Property. Section 5(k) of the Company Letter lists
all real property that the Company owns, leases or subleases.

                           (i) With respect to each such parcel of owned real
         property, and except for matters which would not have a material
         adverse effect on the financial condition of the Company, the
         identified owner has good and marketable title to the parcel of real
         property, free and clear of any Security Interest, easement, covenant,
         or other restriction, except for installments of special assessments
         not yet delinquent, recorded easements, covenants, and other
         restrictions, and utility easements, building restrictions, zoning
         restrictions, and other easements and restrictions existing generally
         with respect to properties of a similar character and there are no
         outstanding options or rights of first refusal to purchase the parcel
         of real property, or any portion thereof or interest therein.

                           (ii) With respect to each such parcel of leased or
         subleased real property, the Seller has delivered to the Buyer correct
         and complete copies of the leases and subleases listed in Section 5(k)
         of the Company Letter (as amended to date). Each lease and sublease
         listed in Section 5(k) of the Company Letter is legal, valid, binding,
         enforceable, and in full force and effect.

                  (l) Contracts. Section 5(l) of the Company Letter lists all
written contracts (including leases) and other written agreements to which the
Company is a party the performance of which will involve consideration in excess
of $5,000. The Seller has delivered to the Buyer a correct and complete copy of
each contract or other agreement listed in Section 5(l) of the Company Letter
(as amended to date). The Company has obtained valid and legal rights to enforce
the terms and conditions of each of such contracts against the respective other
parties thereto, and no defenses, offsets, or counterclaims thereto have been
asserted, or, may be made available by any party thereto against the Company.
The Seller has not received notice of any default under any of such contracts,
and there exists no actual or, threatened, termination, cancellation, or
limitation of or any amendment, modification or change to any such contract.

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                  (m) Intellectual Property. The Company owns and holds all
necessary licenses with respect to any patents, trademarks, copyrights, trade
names, service marks and other trade designations, including common law rights,
registrations, applications for registration, technology, know-how or processes
used in conducting its business ("Intellectual Property"). All Intellectual
Property is identified on Section 5(m) of the Company Letter. The Company has
not interfered with, infringed upon, misappropriated or otherwise come into
conflict with any Intellectual Property rights of third parties, and the Company
has not received any charge, complaint, claim, demand or notice alleging any
such interference, infringement, misappropriation or violation. To Seller's
Knowledge, no third party has interfered with, infringed upon, misappropriated
or otherwise come into conflict with any Intellectual Property rights of the
Company.

                  (n) Powers of Attorney. There are no outstanding powers of
attorney executed on behalf of the Company.

                  (o) Litigation. Other than as set forth in section 5(o) of the
Company Letter, the Company (i) is not subject to any outstanding injunction,
judgment, order, decree, ruling, or charge nor (ii) is it a party to (or, to
Seller's Knowledge, has it been threatened with) any action, suit, proceeding,
hearing, or investigation of, in, or before any court or quasi-judicial or
administrative agency of any federal, state, local, or foreign jurisdiction.

                  (p) Employee Benefits. Section 5(p) of the Company Letter
lists each Employee Benefit Plan that the Company maintains or to which the
Company contributes.

                           (i) Each such Employee Benefit Plan (and each related
         trust, insurance contract, or fund) complies in form and in operation
         in all respects with the applicable requirements of ERISA and the Code,
         except where the failure to comply would not have a material adverse
         effect on the financial condition of the Company.

                           (ii) All contributions (including all employer
         contributions and employee salary reduction contributions) which are
         due have been paid to each such Employee Benefit Plan which is an
         Employee Pension Benefit Plan.

                           (iii) The Seller has delivered to the Buyer correct
         and complete copies of the plan documents and summary plan
         descriptions, and all related trust agreements, insurance contracts,
         and other funding agreements which implement such Employee Benefit
         Plan.

                                       11

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                  (q) Insurance. Section 5(q) of the Company Letter lists all
insurance policies which will be held by Company on the Closing Date. All such
insurance policies are and will remain until the Closing Date, in full force and
effect and neither Seller nor the Company is on or prior to the Closing Date in
default under any such policy. Seller has provided copies of all such insurance
policies to Buyer.

                  (r) Labor Matters. Section 5(r) of the Company Letter contains
with respect to each of the Company's employees, full and accurate data,
categorized by type of employment, and stating name, date of commencement of
employment with the Company, grade, age and the current annual compensation
amount, as at the date hereof. Except as set forth in Section 5(r) of the
Company Letter, Company is not a party to any collective bargaining agreement or
any employment agreement or other agreement, plan or arrangement, including but
not limited to any agreement, plan or arrangement providing for severance
payments to any employee upon termination of employment or which provide
benefits upon a change in control of the Company. The Company has not
experienced any strike, grievance or any court or arbitration proceeding, claim
of unfair labor practices filed against the Company or, threatened to be filed
against the Company or any other material labor difficulty, and there is no
organized labor strike pending, or threatened against the Company. There is no
work stoppage, slow down or lockout pending involving the Company or, threatened
involving the Company. There is no labor union of which any of the Company's
employees is a member.

         Except as set forth in Section 5(r) of the Company Letter, there are no
claims pending or, threatened relating to the Company's employees for
compensation for any injury, disability or illness resulting from their
employment or overtime work.

         The Company has been and until the Closing Date will be, in full
compliance with all statutory, regulatory or contractual requirements with
respect to its employees. There are no complaints, claims or charges
outstanding, or, anticipated, nor are there any orders, decisions, judgments or
convictions against or in respect of the Company in connection with its business
or its employees under any employment legislation or contract.

                  (s) Undisclosed Liabilities. Except as set forth in Section
5(s) of the Company Letters or other sections of the Company Letters, the
Company has no liability related to its business, except for (i) liabilities set
forth on the face of the Most Recent Balance Sheet and (ii) liabilities that
have arisen after the Most Recent Balance Sheet in the Ordinary Course of
Business (none of which results from, arises out of, relates to, is in the
nature of, or was caused by any breach of contract, breach of warranty, tort,
infringement, or violation of law.)

                                       12

<PAGE>

         6. Pre-Closing Covenants. The Parties agree as follows with respect to
the period between the execution of this Agreement and the Closing.

                  (a) General. Each of the Parties will use his or its
reasonable best efforts to take all action and to do all things necessary,
proper, or advisable in order to consummate and make effective the transactions
contemplated by this Agreement (including satisfaction, but not waiver, of the
closing conditions set forth in Section 8 below).

                  (b) Notices and Consents. Each of the Parties will (and the
Seller will cause the Company to) give any notices to, make any filings with,
and use its reasonable best efforts to obtain any authorizations, consents, and
approvals of governments and governmental agencies in connection with the
matters referred to in Section 4(a)(i) and (ii), Section 4(b)(i) and (ii) and
Section 5(c) above.

                  (c) Operation of Business. Unless previously approved in
writing by the Buyer, the Seller will not permit the Company to engage and the
Buyer will not engage in any practice, take any action, or enter into any
transaction outside the Ordinary Course of Business except that the Company may
payoff and terminate its line of credit with First American Bank and have the
guarantee of such line of credit by Seller released.

                  (d) Full Access; Cooperation. The Seller will permit, and the
Seller will cause the Company to permit, representatives of the Buyer to have
full access at all reasonable times, at Buyer's cost and expense, and in a
manner so as not to interfere with the normal business operations of the
Company, to all premises, properties, personnel, books, records (including tax
records), contracts, and documents of or pertaining to the Company. The Buyer
will treat and hold as such any Confidential Information it receives from the
Seller and the Company, in the course of the reviews contemplated by this
Section 8(d), will not use any of the Confidential Information except in
connection with this Agreement, and, if this Agreement is terminated for any
reason whatsoever, will return to the Seller and the Company all tangible
embodiments (and all copies) of the Confidential Information which are in its
possession. As part of the foregoing obligation, the Seller will, and will cause
the Company to, assist the Buyer by making available information needed by the
Buyer to fulfill its reporting requirements under the securities laws including
assisting in the audit of the Company's financial statements. The obligation
shall continue beyond the Closing.

                                       13

<PAGE>

                  (e) Notice of Developments.

                           (i) The Seller shall notify the Buyer of any
         development causing a material breach of any of the representations and
         warranties in Section 5 above. Unless the Buyer has the right to
         terminate this Agreement pursuant to Section 10(a)(ii) below by reason
         of the development and exercises that right within the period of 5
         business days referred to in Section 10(a)(ii) below, the written
         notice pursuant to this Section 6(e)(i) will be deemed to have amended
         the Company Letter, to have qualified the representations and
         warranties contained in Section 5 above, and to have cured any
         misrepresentation or breach of warranty that otherwise might have
         existed hereunder by reason of the development.

                           (ii) Each Party will give prompt written notice to
         the others of any material adverse development causing a breach of any
         of his or its own representations and warranties in Section 4 above. No
         disclosure by any Party pursuant to this Section 6(e)(ii), however,
         shall be deemed to amend or supplement the Company Letter or to prevent
         or cure any misrepresentation or breach of warranty.

         7. Post-Closing Covenants. The Parties agree as follows with respect to
the period following the Closing.

                  (a) General. In case at any time after the Closing any further
action is necessary or desirable to carry out the purposes of this Agreement,
each of the Parties will take such further action (including the execution and
delivery of such further instruments and documents) as any other Party
reasonably may request, all at the sole cost and expense of the requesting Party
(unless the requesting Party is entitled to indemnification therefor under
Section 9 below).

                  (b) Litigation Support. In the event and for so long as any
Party actively is contesting or defending against any action, suit, proceeding,
hearing, investigation, charge, complaint, claim, or demand in connection with
(i) any transaction contemplated under this Agreement or (ii) any fact,
situation, circumstance, status, condition, activity, practice, plan,
occurrence, event, incident, action, failure to act, or transaction on or prior
to the Closing Date involving the Company, each of the other Parties shall
cooperate with it and its counsel in the defense or contest, make available
their personnel, and provide such testimony and access to their books and
records as shall be necessary in connection with the defense or contest, all at
the sole cost and expense of the contesting or defending Party (unless the
contesting or defending Party is entitled to indemnification therefor under
Section 9 below).

                  (c) Transition. Except as requested by Buyer in writing, the
Seller will not take any action that is designed or intended to have the effect
of discouraging any lessor, licensor, customer, supplier, or other business
associate of the Company from maintaining the same business relationships with
the Company after the Closing as it maintained with the Company prior to the
Closing.

                                       14

<PAGE>

                  (d) Seller's Employment Agreement. As a condition to Closing,
the Seller shall enter into an employment agreement with the Buyer, in
substantially the form attached hereto as Exhibit D, effective as of the Closing
Date.

                  (e) Company Employees. All employees of the Company as of the
Closing Date will be considered in good faith for continued employment following
the Closing Date. The Parties shall mutually agree upon which such employees to
retain.

                  (f) Reimbursement for Taxes. If at anytime following the
Closing, the Internal Revenue Service shall determine that the Company was not
eligible at anytime prior to the Closing to use the cash method of accounting
for computing taxable income for income tax purposes, then the Buyer hereby
agrees to reimburse Seller for up to $100,000.00 of taxes, penalties and
interest incurred by Seller as to such adjustment by the Internal Revenue
Service. Any reimbursement required pursuant to this paragraph shall be made by
the Buyer within ten (10) business days following Seller giving written notice
to Buyer of either Seller's intention to pay such amount by the tenth day or
that Seller has previously paid such amount.

         8.  Conditions to Obligation to Close.

                  (a) Conditions to Obligation of the Buyer. The obligation of
the Buyer to consummate the transactions to be performed by it in connection
with the Closing is subject to satisfaction of the following conditions:

                           (i) the representations and warranties set forth in
         Section 4(a) and Section 5 above shall be true and correct in all
         material respects at and as of the Closing Date;

                           (ii) the Seller shall have performed and complied
         with all of his covenants hereunder in all material respects through
         the Closing;

                           (iii) there shall not be any injunction, judgment,
         order, decree, ruling, or charge in effect preventing consummation of
         any of the transactions contemplated by this Agreement;

                           (iv) the Seller shall have delivered to the Buyer a
         certificate to the effect that each of the conditions specified above
         in Section 8(a)(i)-(iii) is satisfied in all respects;

                                       15

<PAGE>

                           (v) the Parties shall have received all
         authorizations, consents, and approvals of governments and governmental
         agencies referred to in Section 4(a)(ii), Section 4(b)(ii), and Section
         5(c) above;

                           (vi) the Seller and the Company shall have entered
         into an employment agreement pursuant to which the Seller is employed
         by the Company in substantially the form attached hereto as Exhibit D;

                           (vii) [reserved.];

                           (viii) with respect to any consulting contract to
         which the Company is a party, all consents to the assignment of such
         contracts that are required because of this transaction, shall have
         been obtained by the Seller;

                           (ix) the Buyer shall have received from counsel to
         the Seller an opinion in form and substance reasonably satisfactory to
         the Buyer and its counsel, addressed to the Buyer, and dated as of the
         Closing Date; and

                           (x) all actions to be taken by the Seller in
         connection with consummation of the transactions contemplated hereby
         and all certificates, opinions, instruments, and other documents
         required to effect the transactions contemplated hereby will be
         reasonably satisfactory in form and substance to the Buyer.

The Buyer may waive any condition specified in this Section 8(a) if it executes
a writing so stating at or prior to the Closing.

                  (b) Conditions to Obligation of the Seller. The obligation of
the Seller to consummate the transactions to be performed by it in connection
with the Closing is subject to satisfaction of the following conditions:

                           (i) the representations and warranties set forth in
         Section 4(b) above shall be true and correct in all material respects
         at and as of the Closing Date;

                           (ii) the Buyer shall have performed and complied with
         all of its covenants hereunder in all material respects through the
         Closing;

                           (iii) there shall not be any injunction, judgment,
         order, decree, ruling, or charge in effect preventing consummation of
         any of the transactions contemplated by this Agreement;

                                       16

<PAGE>

                           (iv) the Buyer shall have delivered to the Seller a
         certificate to the effect that each of the conditions specified above
         in Section 8(b)(i)-(iii) is satisfied in all respects;

                           (v) the Parties shall have received all
         authorizations, consents, and approvals of governments and governmental
         agencies referred to in Section 4(a)(ii), Section 4(b)(ii), and Section
         5(c) above;

                           (vi) the Seller and the Company shall have entered
         into an employment agreement pursuant to which the Seller is employed
         by the Company in substantially the form attached hereto as Exhibit D;

                           (vii) all actions to be taken by the Buyer in
         connection with consummation of the transactions contemplated hereby
         and all certificates, opinions, instruments, and other documents
         required to effect the transactions contemplated hereby will be
         reasonably satisfactory in form and substance to the Seller; and

                           (viii) the Seller shall have received the initial
         installment of the Purchase Price as contemplated by Section 2 hereof.

                           (ix) the Buyer and the Seller shall have entered into
         a registration rights agreement in substantially the form of Exhibit E
         hereto.

                           (x) the Buyer and the Seller shall have entered into
         a security agreement in substantially the form of Exhibit F hereto.

                           (xi) the Seller shall have received from counsel to
         the Buyer an opinion in form and substance reasonably satisfactory to
         the Seller and his counsel, addressed to the Seller, and dated as of
         the Closing Date.

                           (xii) all actions to be taken by the Buyer in
         connection with consummation of the transactions contemplated hereby
         and all certificates, opinions, instruments, and other documents
         required to effect the transactions contemplated hereby will be
         reasonably satisfactory in form and substance to the Seller.

The Seller may waive any condition specified in this Section 8(b) if they
execute a writing so stating at or prior to the Closing.

         9.  Remedies for Breaches of This Agreement.

                  (a) Survival of Representations and Warranties. The
representations and warranties of the Parties shall survive the Closing for a
period of two years from the Closing Date, except the representations and
warranties contained in Sections 4(a)(i) and (iv) and Section 5(a) shall survive
indefinitely and the representations and warranties contained in Section 5(p)
and (j) shall survive until the applicable statute of limitations with respect
thereto expire.

                                       17

<PAGE>

                  (b) Obligations of Seller. Effective as of the Closing, and
ending on the third anniversary thereof, Seller agrees to indemnify and hold
harmless Buyer, and its Affiliates, directors, officers, employees, agents and
assigns (each, a "Buyer Indemnified Party") from and against any and all Adverse
Consequences as a result of, or based upon or arising from or in relation to:

                           (i) the breach of any of the representations and
         warranties made by Seller in this Agreement, any schedule or
         certificate or other document delivered pursuant or in relation, to
         this Agreement; and

                           (ii) any breach of any of the covenants made by
         Seller in this Agreement, any schedule or certificate or other document
         delivered pursuant or in relation, to this Agreement;

         provided that Seller shall not be required to indemnify or hold
         harmless any Buyer Indemnified Party for any such Losses to the extent
         the Purchase Price has been adjusted pursuant to Section 2 in
         connection therewith.

                  (c) Indemnification Obligations of Buyer. For a period
commencing as of the Closing Date and ending on the second anniversary thereof
(and with respect to indemnity for matters set forth in Section 9(a) above for
representations and warranties that extend beyond the two year period until the
expiration of the stated periods), Buyer shall indemnify Seller, from and
against any Adverse Consequences as a result of, or based upon or arising from:

                           (i) the material breach of any of the representations
         and warranties made by Buyer in this Agreement; and

                           (ii) any material breach of any of the covenants made
by Buyer in this Agreement.

                  (d) Procedures. For purposes of this section, any party with
an indemnification obligation under this section shall be referred to herein as
an "Indemnifying Party" and any party entitled to indemnification under this
section shall be referred to as an "Indemnified Party". All claims for
indemnification by any Indemnified Party hereunder shall be asserted and
resolved as set forth in this section. In the event that any written claim or
demand for which an Indemnifying Party would be liable to any Indemnified Party
hereunder is asserted against or sought to be collected from any Indemnified
Party by a third party, such Indemnified Party shall promptly, but in no event
more than 30 days following such Indemnified Party's receipt of such claim or

                                       18

<PAGE>

demand, notify the Indemnifying Party of such claim or demand and the amount or
the estimated amount thereof to the extent then feasible (which estimate shall
not be conclusive of the final amount of such claim and demand) (the "Claim
Notice"). The Indemnifying Party shall have 30 days from the personal delivery
or receipt of the Claim Notice (the "Notice Period") to notify the Indemnified
Party (a) whether or not the Indemnifying Party disputes the liability of the
Indemnifying Party to the Indemnified Party hereunder with respect to such claim
or demand and (b) whether or not it desires to defend the Indemnified Party
against such claim or demand. All costs and expenses incurred by the
Indemnifying Party in defending such claim or demand shall be a liability of,
and shall be paid by, the Indemnifying Party. In the event that the Indemnifying
Party notifies the Indemnified Party within the Notice Period that it desires to
defend the Indemnified Party against such claim or demand and except as
hereinafter provided, the Indemnifying Party shall have the right to defend the
Indemnified Party (i) by appropriate proceedings and (ii) use or retain counsel
in connection with such defense that is reasonably acceptable to the Indemnified
Party. The Indemnified Party shall make available to the Indemnifying Party all
information reasonably available to such Indemnified Party relating to such
claim or demand. In addition, the Indemnified Party and the Indemnifying Party
shall render to each other such assistance as may reasonably be requested in
order to ensure the proper and adequate defense of any such claim or demand, or
to prosecute claims against third parties for contribution or on other theories
of recovery related to such claim or demand. The party in charge of the defense
shall keep the other party fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. If any Indemnified
Party desires to participate in, but not control, any such defense or settlement
it may do so at its sole cost and expense. In the event that the Indemnifying
Party does not elect to defend the claim, the Indemnified Party shall not settle
a claim or demand without the consent of the Indemnifying Party (which consent
will not be unreasonably withheld). The Indemnifying Party shall not, without
the prior written consent of the Indemnified Party (which consent will not be
unreasonably withheld), settle, compromise or offer to settle or compromise any
such claim or demand. If the Indemnifying Party elects not to defend the
Indemnified Party against such claim or demand, whether by not giving the
Indemnified Party timely notice as provided above or otherwise, then the amount
of any such claim or demand, or, if the same be contested by the Indemnified
Party, then that portion thereof as to which such defense is unsuccessful (and
the reasonable costs and expenses pertaining to such defense) shall be the
liability of the Indemnifying Party hereunder. To the extent the Indemnifying
Party shall control or participate in the defense or settlement of any third
party claim or demand, the Indemnified Party will give to the Indemnifying Party
and its counsel access to, during normal business hours, the relevant business
records and other documents, and shall permit them to consult with the employees
and counsel of the Indemnified Party. The Indemnified Party shall use its
commercially reasonable best efforts in the defense of all such claims.

                                       19

<PAGE>

                  (e) Adjustments to Losses. The amount of any Loss entitling a
party to indemnification under this section shall be reduced by the amount of
any insurance proceeds recovered by the Indemnified Party for such Loss, net of
all costs and expenses incurred in collecting such insurance proceeds
(including, without limitation, reasonable attorneys' fees).

                  (f) Maximum Indemnification. In no event shall the Seller be
liable for indemnification pursuant to this Section 9 in an amount that exceeds
the Purchase Price.

                  (g) Time For Making Claims. No claim for indemnification
hereunder will be valid unless it is submitted in writing within the
indemnification periods set forth in Section 9(c) of this Agreement.
Nevertheless, once a claim is timely made under this Agreement, Adverse
Consequences arising after the time period expires for making such claim that
relate to such claim, shall be recoverable.

                  (h) Exclusive Remedy. This section shall be the exclusive
remedies of the Parties hereto for damages under this Agreement and shall be
deemed to preclude the exercise of any other rights and the pursuit of other
remedies (whether in contract, tort or otherwise) in damages for the breach (or
alleged breach) of any representation, warranty, covenant or agreement contained
herein or made pursuant hereto; provided, however, that these exclusive remedies
for damages will not be construed to preclude a party from bringing an action
for specific performance or other equitable remedy to require the other parties
to perform its or their obligations under this Agreement.

                  (i) Treatment of Payments. All payments made pursuant to this
Article 9 shall be treated as adjustments to the purchase price for the Company
Shares. Notwithstanding anything in this Agreement to the contrary, Buyer shall
not be indemnified or reimbursed for any tax consequences arising from the
receipt or accrual of an indemnity payment hereunder, including, without
limitation, any such consequences arising from adjustments to the basis of any
asset resulting from an adjustment to the Purchase Price, or any additional
Taxes resulting from any such basis adjustment.

                  (j) Offset. To the extent the Purchase Price is deferred
pursuant to Section 2(b), Buyer shall have the right to offset against such
deferred payments any claim that it has against Seller for indemnity pursuant to
this Agreement.

                                       20

<PAGE>

         10.      Termination.

                  (a) Termination of Agreement. Certain of the Parties may
terminate this Agreement as provided below:

                           (i) the Buyer and the Seller may terminate this
         Agreement by mutual written consent at any time prior to the Closing;

                           (ii) the Buyer may terminate this Agreement by giving
         written notice to the Seller at any time prior to the Closing in the
         event (A) the Seller has within the then previous five (5) business
         days given the Buyer any notice pursuant to Section 6(e)(i) above and
         (B) the development that is the subject of the notice has had a
         material adverse effect upon the financial condition of the Company;

                           (iii) the Buyer may terminate this Agreement by
         giving written notice to the Seller at any time prior to the Closing
         (A) in the event the Seller has breached any material representation,
         warranty, or covenant contained in this Agreement (other than the
         representations and warranties in Section 5 above) in any material
         respect, the Buyer has notified the Seller of the breach, and the
         breach has continued without cure for a period of fifteen (15) days
         after the notice of breach or (B) if the Closing shall not have
         occurred on or before January 3, 2005, by reason of the failure of any
         condition precedent under Section 8(a) hereof (unless the failure
         results primarily from the Buyer itself breaching any representation,
         warranty, or covenant contained in this Agreement);

                           (iv) the Seller may terminate this Agreement by
         giving written notice to the Buyer at any time prior to the Closing (A)
         in the event the Buyer has breached any material representation,
         warranty, or covenant contained in this Agreement in any material
         respect, the Seller has notified the Buyer of the breach, and the
         breach has continued without cure for a period of fifteen (15) days
         after the notice of breach or (B) if the Closing shall not have
         occurred on or before January 3, 2005, by reason of the failure of any
         condition precedent under Section 8(b) hereof (unless the failure
         results primarily from any of the Seller themselves breaching any
         representation, warranty, or covenant contained in this Agreement); and

                           (v) the Seller may terminate this Agreement by giving
         written notice to the Buyer at any time prior to the Closing in the
         event there is any change or development in Buyer's business that will
         have or has had a material adverse effect upon the financial condition
         of the Buyer.

                  (b) Effect of Termination. If any Party terminates this
Agreement pursuant to Section 10(a) above, all rights and obligations of the
Parties hereunder shall terminate without any liability of any Party to any
other Party (except for any liability of any Party then in breach); provided,
however, that the confidentiality provisions contained in Section 6(d) above
shall survive termination.

                                       21

<PAGE>

                  (c) Break-Up Fee. If the Buyer terminates this Agreement
pursuant to Section 10(a)(iii) above, the Seller shall pay to the Buyer a
break-up fee of $250,000. If the Seller terminates this Agreement pursuant to
Section 10(a)(iv), the Buyer shall pay the Seller a break-up fee of $250,000. To
secure these obligations, on the date of this Agreement, each of the Buyer and
the Seller shall deposit $250,000 into escrow pursuant to the Escrow Agreement
attached hereto as Exhibit G.

         11.      Miscellaneous.

                  (a) Press Releases and Public Announcements. No Party shall
issue any press release or make any public announcement relating to the subject
matter of this Agreement prior to the Closing without the prior written approval
of the Buyer and the Seller; provided, however, that any Party may make any
public disclosure it believes in good faith is required by applicable law or any
listing or trading agreement concerning its publicly-traded securities (in which
case the disclosing Party will use its best efforts to advise the other Parties
prior to making the disclosure).

                  (b) No Third-Party Beneficiaries. This Agreement shall not
confer any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns.

                  (c) Entire Agreement. This Agreement (including the documents
referred to herein), together with the Letter of Intent previously executed by
the Parties, constitutes the entire agreement among the Parties and supersedes
any prior understandings, agreements, or representations by or among the
Parties, written or oral, to the extent they have related in any way to the
subject matter hereof.

                  (d) Succession and Assignment. This Agreement shall be binding
upon and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign either this Agreement or
any of his or its rights, interests, or obligations hereunder without the prior
written approval of the Buyer and the Seller; provided, however, that the Buyer
may (i) assign any or all of its rights and interests hereunder to one or more
of its Affiliates and (ii) designate one or more of its Affiliates to perform
its obligations hereunder (in any or all of which cases the Buyer nonetheless
shall remain responsible for the performance of all of its obligations
hereunder).

                                       22

<PAGE>

                  (e) Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

                  (f) Headings. The section headings contained in this Agreement
are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

                  (g) Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given if (and then two
business days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

         If to the Seller:                           Michael W. Wicks
                                                     106 Sharpsburg Drive
                                                     Madison, Alabama 35758

                  with a copy to:                    Balch & Bingham LLP
                                                     655 Gallatin Street
                                                     Huntsville, Alabama 35801
                                                     Attn:    George A. Smith II

         If to the Buyer:                            Digital Fusion, Inc.
                                                     4940-A Corporate Drive
                                                     Huntsville, AL  35805
                                                     Attn:  Roy E. Crippen III

                  with a copy to:                    Holland & Knight LLP
                                                     P. O. Box 1288 Tampa, FL
                                                     33601-1288 Attn: Richard B.
                                                     Hadlow, Esq.

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Parties
notice in the manner herein set forth.

                                       23

<PAGE>

                  (h) Governing Law. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Alabama without
giving effect to any choice or conflict of law provision or rule (whether of the
State of Alabama or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Alabama.

                  (i) Amendments and Waivers. No amendment of any provision of
this Agreement shall be valid unless the same shall be in writing and signed by
the Buyer and the Seller. No waiver by any Party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

                  (j) Severability. Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

                  (k) Expenses. Each of the Buyer, the Seller and the Company
shall bear its own fees, costs and expenses (including legal, accounting and
consulting fees and expenses) incurred in connection with this Agreement or the
transactions contemplated hereby.

                  (l) Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring any Party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation.

                  (m) Incorporation of Exhibits and Schedules. The Exhibits and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

                                    * * * * *

                                       24

<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first above written.

                              "Buyer"

                              DIGITAL FUSION, INC.,
                              a Delaware corporation

                              By:   /s/  Gary S. Ryan
                                 ------------------------------------
                              Name: Gary S. Ryan
                              Title: President

                              "Seller"

                              /s/ Michael W. Wicks
                              ---------------------------------------
                              Michael W. Wicks, an individual

                                       25Exhibit 10.4

THIS PROMISSORY NOTE AND THE SHARES OF COMMON STOCK TO BE DELIVERED UPON
CONVERSION OF THIS PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE SECURITIES LAW. NO SALE,
ASSIGNMENT, PLEDGE OR OTHER TRANSFER OF EITHER THIS PROMISSORY NOTE OR ANY SUCH
SHARES MAY BE MADE EXCEPT PURSUANT TO THE PROVISIONS OF THE ACT AND APPLICABLE
STATE SECURITIES LAWS OR UNLESS AN OPINION OF COUNSEL, SATISFACTORY TO MAKER, IS
OBTAINED STATING THAT SUCH SALE, ASSIGNMENT, PLEDGE OR TRANSFER IS IN COMPLIANCE
WITH AN AVAILABLE EXEMPTION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS.

                           CONVERTIBLE PROMISSORY NOTE
                           ---------------------------

$2,700,000                                                       January 3, 2005

         FOR VALUE RECEIVED, DIGITAL FUSION, INC., a Delaware corporation
("Maker"), hereby promises to pay to MICHAEL W. WICKS ("Holder") the principal
amount of Two Million Seven Hundred Thousand Dollars ($2,700,000), together with
interest thereon at a per annum rate equal to five percent (5%).

         No interest shall accrue on this Promissory Note until six months from
the date hereof. Additionally, no interest shall accrue on this Promissory Note
during any calendar month in which the Maker's common stock is publicly traded
and the average closing price of the Maker's common stock is greater than $2.80
per share. With the foregoing exceptions, interest shall be paid monthly in
arrears due and payable on 10th day following the end of each month.

         Principal and any unpaid accrued interest shall be payable as follows
unless on or prior to a due date the Holder elects to convert the Promissory
Note into shares of Maker's common stock (the "Shares") as set forth below. Any
remaining principal and any unpaid accrued interest shall be payable in full on
January 3, 2008 (the "Due Date"). Additionally, on or before the dates set forth
below, Maker shall pay to Holder so much of the principal and interest balance
so that the outstanding balance of principal and interest of this Promissory
Note shall not exceed the amounts set forth opposite such date below:

                  Date                               Outstanding Balance
                  ----                               -------------------
         December 31, 2005                                $2,100,000.00
         December 31, 2006                                $1,500,000.00

<PAGE>

         The principal portion of this Promissory Note may be converted (in
minimum blocks of $200,000 of principal) at any time by Holder into a number of
Shares determined by dividing the converted principal amount of this Promissory
Note by the Conversion Price in effect on the date such conversion is to be
effectuated. The term "Conversion Price" shall mean the price per share used to
determine the number of Shares deliverable upon conversion of this Promissory
Note, which price shall initially be $2.25 per share, subject to adjustment as
provided below. As to the required reduction in balance of this Promissory Note
on December 31, 2005 and December 31, 2006, no conversion hereunder shall be
effective in reducing the outstanding balance for purposes of determining the
amount due on such dates unless written notice of the conversion is given by
Holder at least 90 days prior to such date. No conversion hereunder shall be
effective unless written notice of the conversion is given by Holder at least
180 days prior to the Due Date, effective not later than the Due Date.

         The Conversion Price and number of Shares issuable upon conversion in
accordance with this Promissory Note shall also be proportionally adjusted if
the Maker shall (i) declare a dividend or make a distribution on the common
stock in shares of its common stock, or (ii) combine, subdivide or reclassify
the outstanding shares of common stock into a different number of shares so that
Holder shall be entitled to receive the number of Shares it would have been
entitled to receive had this Promissory Note been converted immediately prior to
such event.

         This Promissory Note is issued pursuant to a Stock Purchase Agreement
of even date herewith between the Maker and the Holder (the "Stock Purchase
Agreement") and is subject to all of the provisions thereof, including, but not
limited to, the Maker's right of offset.

         This Promissory Note is secured by a Security and Subordination
Agreement of even date herewith, between the Maker, Summit Research Corporation,
the Holder and First Commercial Bank of Huntsville.

         The happening of any one or more of the following events shall
constitute an event of default hereunder:

                           (a) Default in the payment of the principal of or
interest on this Promissory Note when the same becomes due and payable;

                           (b) The occurrence of any event of default under any
loan by Maker with First Commercial Bank of Huntsville, whether now in existence
or hereinafter arising, and the failure to cure same within any applicable cure
period, which event of default causes an acceleration of the obligations or debt
owed to First Commercial Bank of Huntsville;

                           (c) The occurrence of any event of default of Maker
in the Security Agreement, and the failure to cure same within any applicable
cure period;

                           (d) The occurrence of any event of default of Maker
in the Stock Purchase Agreement, and the failure to cure same with any
applicable cure period; or

                                      -2-

<PAGE>

                           (e) The termination of the employment of Holder with
Maker other than pursuant to Sections 3(a), 3(b) and 3(c) of that certain
Employment Agreement dated the date hereof by and between Holder and Maker.

         Upon the occurrence of an event of default, or at any time thereafter
during the continuance of any such event, the Holder may, with or without notice
to the Maker, declare this Promissory Note to be forthwith due and payable,
whereupon this Promissory Note and the indebtedness evidenced hereby shall
forthwith be due and payable, both as to principal and interest, without
presentment, demand, protest, or other notice of any kind, all of which are
hereby expressly waived, anything contained herein or in any other instrument
executed in connection with or securing this Note to the contrary
notwithstanding.

         If this Promissory Note or any installment of principal or interest
hereon becomes due and payable on Saturday, Sunday or other day on which
commercial banks are authorized or permitted to close under the laws of the
State of Alabama, the maturity of this Promissory Note or such installment shall
be extended to the next succeeding business day.

         Maker shall, on or before the Due Date, pay the outstanding principal
balance under this Promissory Note, together with accrued interest, by wire
transfer or other cash equivalent acceptable to Maker.

         If Holder has not received the full amount of any of the payments by
the end of the date it is due, Maker agrees to pay a late charge to the Holder
in the amount of three percent (3%) of the overdue payment.

         The Holder of this Promissory Note, by acceptance hereof, agrees that
this Promissory Note and the Shares to be issued upon conversion hereof are
being acquired for investment and that such Holder will not offer, sell or
otherwise dispose of this Promissory Note, or any Shares to be issued upon
conversion hereof except under circumstances which will not result in a
violation of the Securities Act of 1933, as amended (the "Securities Act"). Upon
conversion of this Promissory Note, the Holder hereof shall confirm in writing,
by executing the form attached as Schedule 1 to Exhibit A hereto, that the
Shares so purchased are being acquired for investment and not with a view toward
distribution or resale. This Promissory Note and all Shares issued upon
conversion of this Promissory Note (unless registered under the Securities Act)
shall be stamped or imprinted with a legend in substantially the following form:

          "THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
          SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED
          WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED
          THERETO, OR (ii) AN OPINION OF COUNSEL FOR THE HOLDER,
          REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION
          IS NOT REQUIRED."

                                      -3-

<PAGE>

In addition, in connection with the issuance of this Promissory Note, the Holder
specifically represents to the Maker by acceptance of this Promissory Note as
follows:

         (1) The Holder is aware of the Maker's business affairs and financial
condition, and has acquired information about the Maker sufficient to reach an
informed and knowledgeable decision to acquire this Promissory Note. The Holder
has executed a confidentiality agreement and will hold all information governed
by that agreement in accordance with the terms of such agreement. The Holder is
acquiring this Promissory Note for his own account for investment purposes only
and not with a view to, or for the resale in connection with, any "distribution"
thereof for purposes of the Securities Act.

         (2) The Holder understands that this Promissory Note and the Promissory
Note Shares have not been registered under the Securities Act in reliance upon a
specific exemption therefrom, which exemption depends upon, among other things,
the bona fide nature of the Holder's investment intent as expressed herein. In
this connection, the Holder understands that, in the view of the Securities and
Exchange Commission (the "SEC"), the statutory basis for such exemption may be
unavailable if the Holder's representation was predicated solely upon a present
intention to hold the Promissory Note and the Shares for the minimum capital
gains period specified under applicable tax laws, for a deferred sale, for or
until an increase or decrease in the market price of the Promissory Note and the
Shares, or for a period of one year or any other fixed period in the future.

         (3) The Holder further understands that this Promissory Note and the
Shares must be held indefinitely unless subsequently registered under the
Securities Act and any applicable state securities laws, or unless exemptions
from registration are otherwise available.

         (4) The Holder is aware of the provisions of Rule 144 and 144A,
promulgated under the Securities Act, which, in substance, permit limited public
resale of "restricted securities" acquired, directly or indirectly, from the
issuer thereof (or from an affiliate of such issuer), in a non-public offering
subject to the satisfaction of certain conditions, if applicable, including,
among other things: the availability of certain public information about the
Maker, the resale occurring not less than one year after the party has purchased
and paid for the securities to be sold; the sale being made through a broker in
an unsolicited "broker's transaction" or in transactions directly with a market
maker (as said term is defined under the Securities Exchange Act of 1934, as
amended) and the amount of securities being sold during any three-month period
not exceeding the specified limitations stated therein.

         (5) The Holder further understands that at the time it wishes to sell
this Promissory Note and the Shares there may be no public market upon which to
make such a sale, and that, even if such a public market then exists, the Maker
may not be satisfying the current public information requirements of Rule 144
and 144A, and that, in such event, the Holder may be precluded from selling this
Promissory Note and the Promissory Note Shares under Rule 144 and 144A even if
the one (1)-year minimum holding period had been satisfied.

         (6) The Holder further understands that in the event all of the
requirements of Rule 144 and 144A are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rule 144 and
144A is not exclusive, the staff of the SEC has expressed its opinion that
persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rule 144 and 144A will have a
substantial burden of proof in establishing that an exemption from registration
is available for such offers or sales, and that such persons and their
respective brokers who participate in such transactions do so at their own risk.

                                      -4-

<PAGE>

         With respect to any offer, sale or other disposition of this Promissory
Note, or any Shares acquired pursuant to the conversion of this Promissory Note
prior to registration of such Promissory Note or Shares, the Holder hereof and
each subsequent Holder of this Promissory Note agrees to give written notice to
the Maker prior thereto, describing briefly the manner thereof, together with a
written opinion of such Holder's counsel, if reasonably requested by the Maker,
to the effect that such offer, sale or other disposition may be effected without
registration or qualification (under the Securities Act as then in effect or any
federal or state law then in effect) of this Promissory Note or such Shares and
indicating whether or not under the Securities Act certificates for this
Promissory Note or such Shares to be sold or otherwise disposed of require any
restrictive legend as to applicable restrictions on transferability in order to
ensure compliance with applicable law. Promptly upon receiving such written
notice and reasonably satisfactory opinion, if so requested, the Maker, as
promptly as practicable, shall notify such Holder that such Holder may sell or
otherwise dispose of this Promissory Note or such Shares, all in accordance with
the terms of the notice delivered to the Maker. If a determination has been made
pursuant to this paragraph that the opinion of counsel for the Holder is not
reasonably satisfactory to the Maker, the Maker shall so notify the Holder
promptly after such determination has been made and neither this Promissory Note
nor any Shares shall be sold or otherwise disposed of until such disagreement
has been resolved. The foregoing notwithstanding, this Promissory Note or such
Shares may as to such federal laws, be offered, sold or otherwise disposed of in
accordance with Rule 144 and 144A under the Securities Act, provided that the
Maker shall have been furnished with such information as the Maker may
reasonably request to provide a reasonable assurance that the provisions of Rule
144 and 144A have been satisfied. Each certificate representing this Promissory
Note or the Shares thus transferred (except a transfer pursuant to Rule 144)
shall bear a legend as to the applicable restrictions on transferability in
order to ensure compliance with such laws, unless in the aforesaid opinion of
counsel for the Holder, such legend is not required in order to ensure
compliance with such laws. The Maker may issue stop transfer instructions to its
transfer agent or, if acting as its own transfer agent, the Maker may stop
transfer on its corporate books, in connection with such restrictions.

         Any provision of this Note that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction.

         This Promissory Note is not transferable or assignable by Maker without
the consent of the Holder. This Promissory Note is not transferable or
assignable by Holder without the consent of Maker. If this Promissory Note is
collected by law or through an attorney at law, or under advice therefrom, the
Maker agrees to pay all costs of collection, including reasonable attorneys'
fees. Reasonable attorneys' fees are defined to include, but not be limited to,
all fees incurred in all matters of collection and enforcement, trial
proceedings and appeals, as well as appearances in and connected with any
bankruptcy proceedings or creditors' reorganization or similar proceedings and
any post judgment collection efforts.

                                      -5-

<PAGE>

         Any failure to exercise any right, remedy or recourse hereunder shall
not be deemed to be a waiver or release of the same, such waiver or release to
be effected only through a written document executed by the Holder and then only
to the extent specifically recited therein. A waiver or release with reference
to any one event shall not be construed as continuing, as a bar to, or as a
waiver or release of any subsequent right, remedy or recourse as to a subsequent
event.

         In no event shall the amount of interest due or payments in the nature
of interest payable hereunder exceed the maximum rate of interest allowed by
applicable law, as amended from time to time, and in the event any such payment
is paid by the Maker or received by the Holder, then such excess sum shall be
credited as a payment of principal, unless the Maker shall notify the Holder, in
writing, that the Maker elects to have such excess sum returned to Maker
forthwith.

         The Maker hereby waives all and every exemption secured to them by the
laws and constitution of the State of Alabama, and of any other state. The Maker
hereby waives demand, presentment, protest, notice of nonpayment or dishonor,
and any other notice required by law and agrees that its obligation hereunder
shall not be affected by any renewal or extension of the time of payment hereof,
or by any indulgences.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

                                      -6-

<PAGE>

         This Promissory Note shall be governed by and construed in accordance
with the laws of the State of Alabama applicable to debts and obligations
incurred and to be paid solely in such jurisdiction. This Promissory Note may
not be modified or amended and no provision hereof may be waived except by a
written instrument executed by the parties to be bound thereby.

                               DIGITAL FUSION, INC.

                               By:  /s/ Roy E. Crippen, III
                                  ------------------------------------------
                                        Roy E. Crippen III, as its President

                                      -7-

<PAGE>

                                   EXHIBIT "A"
                                   -----------

                              NOTICE OF CONVERSION

To:      DIGITAL FUSION, INC.

         1. The undersigned hereby elects to purchase ____ shares of Common
Stock of DIGITAL FUSION, INC. pursuant to the terms of the attached Promissory
Note.

         2. Please issue a certificate or certificates representing said shares
in the name of the undersigned or in such other name or names as are specified
below:

                         -------------------------------
                                     (Name)

                         -------------------------------

                         -------------------------------
                                    (Address)

         3. The undersigned represents that the aforesaid shares are being
acquired for the account of the undersigned for investment and not with a view
to, or for resale in connection with, the distribution thereof and that the
undersigned has no present intention of distributing or reselling such shares.
In support thereof, the undersigned has executed an Investment Representation
Statement attached hereto as Schedule 1.

                                   ----------------------------------
                                   (Signature)
---------------------
(Date)

<PAGE>

                                   SCHEDULE 1
                                   ----------

                       INVESTMENT REPRESENTATION STATEMENT

Purchaser:
Company           DIGITAL FUSION, INC.
Security:         Common Stock

Amount:
Date:

         In connection with the purchase of the above-listed securities (the
"Securities"), the undersigned (the "Purchaser") represents to the Maker as
follows:

         (a) The Purchaser is aware of the Maker's business affairs and
financial condition, and has acquired sufficient information about the Maker to
reach an informed and knowledgeable decision to acquire the Securities. The
Purchaser is purchasing the Securities for its own account for investment
purposes only and not with a view to, or for the resale in connection with, any
"distribution" thereof for purposes of the Securities Act of 1933, as amended
(the "Act").

         (b) The Purchaser understands that the Securities have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of the Purchaser's investment intent as expressed herein. In this
connection, the Purchaser understands that, in the view of the Securities and
Exchange Commission ("SEC"), the statutory basis for such exemption may be
unavailable if the Purchaser's representation was predicated solely upon a
present intention to hold these Securities for the minimum capital gains period
specified under applicable tax laws, for a deferred sale, for or until an
increase or decrease in the market price of the Securities, or for a period of
one year or any other fixed period in the future.

         (c) The Purchaser further understands that the Securities must be held
indefinitely unless subsequently registered under the Securities Act or unless
an exemption from registration is otherwise available. In addition, the
Purchaser understands that the certificate evidencing the Securities will be
imprinted with the legend referred to in the Promissory Note under which the
Securities are being purchased.

         (d) The Purchaser is aware of the provisions of Rule 144 and 144A,
promulgated under the Securities Act, which, in substance, permit limited public
resale of "restricted securities" acquired, directly or indirectly, from the
issuer thereof (or from an affiliate of such issuer), in a non-public offering
subject to the satisfaction of certain conditions, if applicable, including,
among other things: The availability of certain public information about the
Maker, the resale occurring not less than one year after the party has purchased
and paid for the securities to be sold; the sale being made through a broker in
an unsolicited "broker's transaction" or in transactions directly with a market
maker (as said term is defined under the Securities Exchange Act of 1934, as
amended) and the amount of securities being sold during any three-month period
not exceeding the specified limitations stated therein.

<PAGE>

         (e) The Purchaser further understands that at the time it wishes to
sell the Securities there may be no public market upon which to make such a
sale, and that, even if such a public market then exists, the Maker may not be
satisfying the current public information requirements of Rule 144 and 144A, and
that, in such event, the Purchaser may be precluded from selling the Securities
under Rule 144 and 144A even if the one-year minimum holding period had been
satisfied.

         (f) The Purchaser further understands that in the event all of the
requirements of Rule 144 and 144A are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rule 144 is
not exclusive, the Staff of the SEC has expressed its opinion that persons
proposing to sell private placement securities other than in a registered
offering and otherwise than pursuant to Rule 144 will have a substantial burden
of proof in establishing that an exemption from registration is available for
such offers or sales, and that such persons and their respective brokers who
participate in such transactions do so at their own risk.

                        Purchaser:
                                  -------------------------------------------

                        Date:
                             ------------------------------------------------

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