Document:

Unassociated Document

     

    
      Exhibit
10.2

    

     

    
      	
              LOAN
      NUMBER

            	
              LOAN
      NAME

            	
              ACCT.
      NUMBER

            	
              AGREEMENT
      DATE

            	
              INITIALS

            
	 	 	 	 	 
	
              CL1004027501

            	
              WidePoint
      Corporation

            	 
      	
              08/26/10

            	 
      
	 	 	 	 	 
	
              NOTE
      AMOUNT

            	
              INDEX
      (w/Margin)

            	
              RATE

            	
              MATURITY
      DATE

            	
              LOAN
      PURPOSE

            
	 	 	 	 	 
	
              $5,000,000.00

            	
              Wall
      Street Journal Prime plus 0.500%

            	
              5.0%

            	
              09/30/11

            	
              Commercial

            
	 	 	 	 	 
	
              Creditor
      Use Only

            

    

    

     

    COMMERCIAL
LOAN AGREEMENT

    Accounts
Receivable and/or Inventory Financing

    
      
        
          

        

      

      
DATE AND
PARTIES.  The date of this Commercial Loan Agreement
(Agreement) is August 26, 2010.  The parties and their addresses are
as follows:

    

     

    LENDER:

    CARDINAL
BANK

    8270
Greensboro Drive

    Suite
500

    McLean,
VA  22102

     

    BORROWER:

    WIDEPOINT
CORPORATION

    a
Delaware Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    WIDEPOINT
IL, INC.

    an
Illinois Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    WP
NBIL, INC.

    an
Illinois Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    CHESAPEAKE
GOVERNMENT TECHNOLOGIES, INC.

    a
Delaware Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    OPERATIONAL
RESEARCH CONSULTANTS, INC.

    a
Virginia Corporation

    11250
Waples Mills, South Tower

    Suite
250

    Fairfax,
VA 22030

     

    ISYS,
LLC

    a
Virginia Limited Liability Company

    One
Lincoln Center

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    ADVANCED
RESPONSE CONCEPTS CORPORATION

    a
Delaware Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    PROTEXX
ACQUISTION CORPORATION

    a
Delaware Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

    1. DEFINITIONS.  For
the purposes of this Agreement, the following terms have the following
meanings.

     

    A. Accounting
Terms.  In this Agreement, any accounting terms that are not
specifically defined will have their customary meanings under generally accepted
accounting principles.

     

    B.
Insiders.  Insiders include those defined as insiders by the
United States Bankruptcy Code, as amended; or to the extent left undefined,
include without limitation any officer, employee, stockholder or member,
director, partner, or any immediate family member of any of the foregoing, or
any person or entity which, directly or indirectly, controls, is controlled by
or is under common control with me.

     

    C. Loan.  The Loan
refers to this transaction generally, including obligations and duties arising
from the terms of all documents prepared or submitted for this
transaction.

     

    D. Loan
Documents.  Loan Documents refer to all the documents executed
as a part of or in connection with the Loan.

     

    E. Pronouns.  The
pronouns "I", "me" and "my" refer to every Borrower signing this Agreement,
individually or together.  "You" and "your" refers to the Loan's
lender.

     

    F.
Property.  Property is any property, real, personal or
intangible, that secures my performance of the obligations of this
Loan.

     

    G. Asset-Based Financing
Definitions.  For the purposes of this Agreement, the following
terms will have the following meanings.

     

    (1) Account
Debtors.  Account Debtors are persons who are obligated on the
Accounts Receivable.

     

    (2) Account
Guarantors.  Account Guarantors are persons who have guarantied
certain Accounts Receivable.

     

    (3) Accounts
Receivable.  Accounts Receivable will include all of the
following.

     

    (a) Accounts and Other Rights
to Payment.  All rights I have now or in the future to payments
including, but not limited to, payment for goods and other property sold or
leased or for services rendered, whether or not I have earned such payment by
performance.  This includes any rights and interests (including all
guaranties, standby letters of credit, liens and security interests) which I may
have by law or agreement against any Account Debtor.

     

    (b) General
Intangibles.  All general intangibles including, but not limited to,
tax refunds, applications for patents, patents, copyrights, trademarks, trade
secrets, good will, trade names, customer lists, permits and franchises, and the
right to use my name.

     

    (c) Proceeds.  All
proceeds from the disposition or collection of Accounts Receivable.

     

    (4) Eligible Accounts
Receivable.  Eligible Accounts Receivable include all of my Accounts
Receivable that are and continue to be acceptable to you in all
respects.  Criteria for eligibility may be revised by you at any
time.  Eligible Accounts Receivable exclude all of the following
Accounts Receivable: the entire balance of any Accounts Receivable that has been
due and owing for more than 90 days from the invoice dates; all of the remaining
Accounts Receivable owed by an Account Debtor when this Account Debtor is
overdue on one account; and those which you in your sole discretion disqualify
as an Eligible Account.

     

    (5)
Inventory.  Inventory includes all inventory which I hold for
ultimate sale or lease, or which has been or will be supplied under contracts of
service, or which are raw materials, work in process, or materials used or
consumed in my business.

     

    (6) Eligible
Inventory.  Eligible Inventory includes all of my Inventory that is
and continues to be acceptable to you in all respects.  Criteria for
eligibility may be revised by you at any time.  Eligible Inventory
excludes all Inventory that I do not own or that is subject to a competing
claim, lien or encumbrance or that which you in your sole discretion disqualify
as Eligible Inventory.

     

    (7) Value of Eligible
Inventory.  The Value of Eligible Inventory is the lower of the
Eligible Inventory's cost or fair market value as determined by consistently
applied generally accepted accounting principles under the  and any
additional written valuation guidelines you provide me.

     

    (8) Overadvance.  An
Overadvance is made when advances exceed the maximum outstanding Principal
balance.

     

    2. ADVANCES.  Advances
under this Agreement are made according to the following terms and
conditions.

     

    A. Asset Based Financing - Revolving
Draw.  In accordance with the terms of this Agreement and other
Loan Documents, you will extend to me and I may from time to time borrow, repay,
and reborrow, one or more advances.  The amount of advances will not
exceed the lesser of $5,000,000.00 (Principal) or the Borrowing
Base.  The Borrowing Base is the sum of the following
amounts.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (1) 80 percent of Eligible
Accounts Receivable.

     

    (2) 0.00 percent of the Value
of Eligible Inventory, not to exceed $0.00.

     

    As long
as I owe any amounts to you under the Loan, I will calculate this Borrowing Base
as of the close of my business day at the end of each month when line of credit
is in use, and within 10 busines days, and I will provide you with a Borrowing
Base Certificate containing an assignment of any Accounts Receivable and
Inventory.  The Borrowing Base Certificate will be in form and
substance acceptable to you, will contain my Borrowing Base calculation and will
be certified and signed by me or my officer.  My calculation of my
Borrowing Base is subject to your confirmation or
redetermination.  Your calculation of the Borrowing Base will be the
final determination when your calculation of the Borrowing Base ratio differs
from mine.

     

    B. Requests for
Advances.  My requests are a warranty that I am in compliance
with all the Loan Documents.  When required by you for a particular
method of advance, my requests for an advance must specify the requested amount
and the date and be accompanied with any agreements, documents, and instruments
that you require for the Loan.  Any payment by you of any check, share
draft or other charge may, at your option, constitute an advance on the Loan to
me.  All advances will be made in United States dollars.  I
will indemnify you and hold you harmless for your reliance on any request for
advances that you reasonably believe to be genuine.  To the extent
permitted by law, I will indemnify you and hold you harmless when the person
making any request represents that I authorized this person to request an
advance even when this person is unauthorized or this person's signature is not
genuine.

     

    I or
anyone I authorize to act on my behalf may request advances by the following
methods.

     

    (1) I make a request in
person.

     

    (2) I make a request by
phone.

     

    (3) I make a request by
mail.

     

    (4) I make a request by fax.
or otherwise designate in writing circumstances for which advances will be
made.

     

    C. Advance
Limitations.  In addition to any other Loan conditions,
requests for, and access to, advances are subject to the following
limitations.

     

    (1) Discretionary
Advances.  You will make all Loan advances at your sole
discretion.

     

    (2) Advance
Amount.  Subject to the terms and conditions contained in this
Agreement, advances will be made in exactly the amount I request.

     

    (3) Disbursement of
Advances.  On my fulfillment of this Agreement's terms and conditions,
you will disburse the advance in any manner as you and I agree.

     

    (4) Credit Limit.  I
understand that you will not ordinarily grant a request for an advance that
would cause the unpaid principal of my Loan to be greater than the Principal
limit.  You may, at your option, grant such a request without
obligating yourselves to do so in the future.  I will pay any over
advances in addition to my regularly scheduled payments.  I will repay
any over advance by repaying you in full within 10 days after the overdraft
occurs.

     

    (5) Records.  Your
records will be conclusive evidence as to the amount of advances, the Loan's
unpaid principal balances and the accrued interest.

     

    (6) Repayment Of
Overadvances.  I will pay any Overadvances in addition to my regularly
scheduled payments.  I will repay any Overadvance by repaying you in
full within one day after the Overadvance occurs, except I may repay an
Overadvance of $100.00 or less within 3 days if the outstanding Principal
balance, including the excess, does not exceed the liquidation value of Accounts
Receivable and Inventory and the Overadvance resulted from you declaring
ineligible previously Eligible Accounts Receivable and
Inventory.  Otherwise, I will repay any Overadvance by making periodic
payments to you as you request.

     

    D. Conditions.  I
will satisfy all of the following conditions before you either issue any
promissory notes or make any advances under this Agreement.  These are
the minimum conditions under which you would consider making an advance, but
satisfaction of these conditions does not commit you to advancing funds under
this Agreement.

     

    (1) No
Default.  There has not been a default under this Agreement or any
other Loan Documents nor would a default result from making the Loan or any
advance.

     

    (2)
Information.  You have received all documents, information,
certifications and warranties as you may require, all properly executed, if
appropriate, on forms acceptable to you.

     

    (3)
Inspections.  You have made all inspections that you consider
necessary and are satisfied with this inspection.

     

    (4) Conditions and
Covenants.  I will have performed and complied with all conditions
required for an advance and all covenants in this Agreement and any other Loan
Documents.

     

    (5) Warranties and
Representations.  The warranties and representations contained in this
Agreement are true and correct at the time of making the requested
advance.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (6) Financial
Statements.  My most recent financial statements, Inventory or
Accounts Receivable schedules and other financial reports, delivered to you, are
current, complete, true and accurate in all material respects and fairly
represent my financial condition.

     

    (7) Bankruptcy
Proceedings.  No proceeding under the United States Bankruptcy Code
has been commenced by or against me or any of my affiliates.

     

    3. MATURITY DATE.  I
agree to fully repay the Loan by September 30, 2011.

     

    4. WARRANTIES AND
REPRESENTATIONS.  I make to you the following warranties and
representations which will continue as long as this Loan is in effect, except
when this Agreement provides otherwise.

     

    A. Power.  I am duly
organized, and validly existing and in good standing in all jurisdictions in
which I operate.  I have the power and authority to enter into this
transaction and to carry on my business or activity as it is now being conducted
and, as applicable, am qualified to do so in each jurisdiction in which I
operate.

     

    B. Authority.  The
execution, delivery and performance of this Loan and the obligation evidenced by
the Note are within my powers, have been duly authorized, have received all
necessary governmental approval, will not violate any provision of law, or order
of court or governmental agency, and will not violate any agreement to which I
am a party or to which I am or any of my property is subject.

     

    C. Name and Place of
Business.  Other than previously disclosed in writing to you I
have not changed my name or principal place of business within the last 10 years
and have not used any other trade or fictitious name.  Without your
prior written consent, I do not and will not use any other name and will
preserve my existing name, trade names and franchises.

     

    D. Hazardous
Substances.  Except as I previously disclosed in writing and
you acknowledge in writing, no Hazardous Substance, underground tanks, private
dumps or open wells are currently located at, on, in, under or about the
Property.

     

    E. Use of
Property.  After diligent inquiry, I do not know or have reason
to know that any Hazardous Substance has been discharged, leached or disposed
of, in violation of any Environmental Law, from the property onto, over or into
any other property, or from any other property onto, over or into the
property.

     

    F. Environmental
Laws.  I have no knowledge or reason to believe that there is
any pending or threatened investigation, claim, judgment or order, violation,
lien, or other notice under any Environmental Law that concerns me or the
property.  The property and any activities on the property are in full
compliance with all Environmental Law.

     

    G. Loan
Purpose.  The purpose of this Loan is working capital line of
credit.

     

    H. No Other Liens. I own or
lease all property that I need to conduct my business and
activities.  I have good and marketable title to all property that I
own or lease.  All of my Property is free and clear of all liens,
security interests, encumbrances and other adverse claims and interests, except
those to you or those you consent to in writing.

     

    I. Compliance With
Laws.  I am not violating any laws, regulations, rules, orders,
judgments or decrees applicable to me or my property, except for those which I
am challenging in good faith through proper proceedings after providing adequate
reserves to fully pay the claim and its challenge should I lose.

     

    5. FINANCIAL
STATEMENTS.  I will prepare and maintain my financial records
using consistently applied generally accepted accounting principles then in
effect.  I will provide you with financial information in a form that
you accept and under the following terms.

     

    A. Certification.  I
represent and warrant that any financial statements that I provide you fairly
represents my financial condition for the stated periods, is current, complete,
true and accurate in all material respects, includes all of my direct or
contingent liabilities and there has been no material adverse change in my
financial condition, operations or business since the date the financial
information was prepared.

     

    B.
Frequency.  Annually, I will provide to you my financial
statements, tax returns, annual internal audit reports or those prepared by
independent accountants as soon as available or at least within 120 days after
the close of each of my fiscal years.  Any annual financial statements
that I provide you will be audited statements.

     

    (1) Interim Financial Reports.
Each fiscal quarter, I will provide to you my financial statements, internal
audit reports or those prepared by independent accountants, tax reports,
statements of cash flow, budgets and forecasts, certificates and schedules of
Property as soon as available or at least within 45 days after the close of this
business period.  Any interim financial statements that I provide you
will be reviewed statements.

     

    (2) Inventory
Schedule.  Each month (reporting period), I will provide you with an
Inventory schedule within 10 days after the end of this reporting period or with
the frequency and promptness you otherwise request.  The Inventory
schedule will list the cost and wholesale value of all Inventory and all
Eligible Inventory.  The Inventory schedule will also identify whether
a bailee has possession of the Inventory and whether the Inventory is
represented by a warehouse receipt, bill of lading or similar documents or
instruments.  The Inventory schedule will identify the Accounts
Receivable, contracts, collections and property relating to the
Inventory.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (3) Accounts Receivable
Schedule.  Each month (reporting period), I will provide you with an
Accounts Receivable schedule within 20 days after the end of this reporting
period or with the frequency and promptness you otherwise request.

     

    C. Requested
Information.  I will provide you with any other information
about my operations, financial affairs and condition within 30 days after your
request.

     

    6. COVENANTS.  Until
the Loan and all related debts, liabilities and obligations are paid and
discharged, I will comply with the following terms, unless you waive compliance
in writing.

     

    A. Participation.  I
consent to you participating or syndicating the Loan and sharing any information
that you decide is necessary about me and the Loan with the other participants
or syndicators.

     

    B.
Inspection.  Following your written request, I will immediately
pay for all one-time and recurring out-of-pocket costs that are related to the
inspection of my records, business or Property that secures the
Loan.  Upon reasonable notice, I will permit you or your agents to
enter any of my premises and any location where my Property is located during
regular business hours to do the following.

     

    (1) You may inspect, audit,
check, review and obtain copies from my books, records, journals, orders,
receipts, and any correspondence and other business related data.

     

    (2) You may discuss my
affairs, finances and business with any one who provides you with evidence that
they are a creditor of mine, the sufficiency of which will be subject to your
sole discretion.

     

    (3) You may inspect my
Property, audit for the use and disposition of the Property's proceeds and
proceeds of proceeds; or do whatever you decide is necessary to preserve and
protect the Property and your interest in the Property.

     

    After
prior notice to me, you may discuss my financial condition and business
operations with my independent accountants, if any, or my chief financial
officer and I may be present during these discussions.  As long as the
Loan is outstanding, I will direct all of my accountants and auditors to permit
you to examine my records in their possession and to make copies of these
records.  You will use your best efforts to maintain the
confidentiality of the information you or your agents obtain, except you may
provide your regulator, if any, with required information about my financial
condition, operation and business or that of my parent, subsidiaries or
affiliates.

     

    C. Business
Requirements.  I will preserve and maintain my present
existence and good standing in the jurisdiction where I am organized and all of
my rights, privileges and franchises.  I will do all that is needed or
required to continue my business or activities as presently conducted, by
obtaining licenses, permits and bonds everywhere I engage in business or
activities or own, lease or locate my property.  I will obtain your
prior written consent before I cease my business or before I engage in any new
line of business that is materially different from my present
business.

     

    D. Compliance with
Laws.  I will not violate any laws, regulations, rules, orders,
judgments or decrees applicable to me or my Property, except for those which I
challenge in good faith through proper proceedings after providing adequate
reserves to fully pay the claim and its appeal should I lose.  Laws
include without limitation the Federal Fair Labor Standards Act requirements for
producing goods, the federal Employee Retirement Income Security Act of 1974's
requirements for the establishment, funding and management of qualified deferred
compensation plans for employees, health and safety laws, environmental laws,
tax laws, licensing and permit laws.  On your request, I will provide
you with written evidence that I have fully and timely paid my taxes,
assessments and other governmental charges levied or imposed on me, my income or
profits and my property.  Taxes include without limitation sales
taxes, use taxes, personal property taxes, documentary stamp taxes, recordation
taxes, franchise taxes, income taxes, withholding taxes, FICA taxes and
unemployment taxes.  I will adequately provide for the payment of
these taxes, assessments and other charges that have accrued but are not yet due
and payable.

     

    E. New
Organizations.  I will obtain your written consent before
organizing, merging into, or consolidating with an entity; acquiring all or
substantially all the assets of another; materially changing the legal
structure, management, ownership or financial condition; or effecting or
entering into a domestication, conversion or interest exchange.

     

    F. Other
Liabilities.  I will not incur, assume or permit any debt
evidenced by notes, bonds or similar obligations, except:  debt up to
$0.00 in total purchase money loan or credit extensions; debt up to $0.00 in
total non-purchase money loan or credit extensions; debt in existence on the
date of this Agreement and fully disclosed to you; debt subordinated in payment
to you on conditions and terms acceptable to you; accounts payable incurred in
the ordinary course of my business and paid under customary trade terms or
contested in good faith with reserves satisfactory to you.

     

    G. Notice to You.  I
will promptly notify you of any material change in my financial condition, of
the occurrence of a default under the terms of this Agreement or any other Loan
Document, or a default by me under any agreement between me and any third party
which materially and adversely affects my property, operations, financial
condition or business.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    H. Dispose of No
Assets.  Without your prior written consent or as the Loan
Documents permit, I will not sell, lease, assign, transfer, dispose of or
otherwise distribute all or substantially all of my assets to any person other
than in the ordinary course of business for the assets' depreciated book value
or more.

     

    I. Insurance.  I
will obtain and maintain insurance with insurers, in amounts and coverages that
are acceptable to you and customary with industry practice.  This may
include without limitation insurance policies for public liability, fire, hazard
and extended risk, workers compensation, and, at your request, business
interruption and/or rent loss insurance.  At your request, I will
deliver to you certified copies of all of these insurance policies, binders or
certificates.  I will obtain and maintain a mortgagee or lender loss
payee endorsement for you when these endorsements are available.  I
will immediately notify you of cancellation or termination of
insurance.  I will require all insurance policies to provide you with
at least 10 days prior written notice to you of cancellation or
modification.  I consent to you using or disclosing information
relative to any contract of insurance required by the Loan for the purpose of
replacing this insurance.  I also authorize my insurer and you to
exchange all relevant information related to any contract of insurance required
by any document executed as part of this Loan.

     

    J. Property
Maintenance.  I will keep all tangible and intangible property
that I consider necessary or useful in my business in good working condition by
making all needed repairs, replacements and improvements and by making all
rental, lease or other payments due on this property.

     

    K. Property Loss.  I
will immediately notify you, and the insurance company when appropriate, of any
material casualty, loss or depreciation to the Property or to my other property
that affects my business.

     

    L. Minimum Tangible Net
Worth.  I will maintain at all times a tangible net worth,
determined under consistently applied generally accepted accounting principles,
of $2,000,000.00 or more.  Tangible net worth is the amount that total
assets exceed total liabilities.  For determining tangible net worth,
total assets will exclude all intangible assets, including without limitation
goodwill, patents, trademarks, trade names, copyrights, and franchises, and will
also exclude all Accounts Receivable, owed by my Insiders, that do not provide
for a repayment schedule. To be measured quarterly.

     

    M. Minimum Current
Ratio.  I will maintain at all times a ratio of current assets
to current liabilities, determined under consistently applied generally accepted
accounting principles, of 1.1:1 or more. To be measured quarterly.

     

    N. Additional
Taxes.  I will pay all filing and recording costs and fees,
including any recordation, documentary or transfer taxes or stamps, that are
required to be paid with respect to this Loan and any Loan
Documents.

     

    O. Additional
Covenants.  BORROWING BASE (ADVANCES) The sum of the Borrowing
Base defined herein in the section entitled "2.ADVANCES" is amended to include
the following: "(3) 90 percent of those Eligible Accounts Receivable related to
payments due under contracts with the Unites States Government for which the
Borrower is the primary contractor.

     

    The ratio
of FUNDED DEBT TO EBITDA shall not exceed 3.0:1.0.  Funded Debt
defined as all balances due under short term debt and long term
debt.  EBITDA defined as earnings before interest, taxes,
depreciation, amortization and 123R related expenses. To be measured
quarterly.

     

    DEBT
COVERAGE RATIO. During the term of this agreement, Borrower will maintain a
ratio of EBITDA to current maturities of long term debt plus interest of 1.20:1
or more. To be measured quarterly on a rolling four quarter basis.

     

    7. DEFAULT.  I will be
in default if any of the following occur:

     

    A. Payments.  I fail
to make a payment in full when due.

     

    B. Insolvency or
Bankruptcy.  The death, dissolution or insolvency of,
appointment of a receiver by or on behalf of, application of any debtor relief
law, the assignment for the benefit of creditors by or on behalf of, the
voluntary or involuntary termination of existence by, or the commencement of any
proceeding under any present or future federal or state insolvency, bankruptcy,
reorganization, composition or debtor relief law by or against me or any
co-signer, endorser, surety or guarantor of this Agreement or any other
obligations I have with you.

     

    C. Business
Termination.  I merge, dissolve, reorganize, end my business or
existence, or a partner or majority owner dies or is declared legally
incompetent.

     

    D. Failure to
Perform.  I fail to perform any condition or to keep any
promise or covenant of this Agreement.

     

    E. Other
Documents.  A default occurs under the terms of any other Loan
Document.

     

    F. Other
Agreements.  I am in default on any other debt or agreement I
have with you.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    G.
Misrepresentation.  I make any verbal or written statement or
provide any financial information that is untrue, inaccurate, or conceals a
material fact at the time it is made or provided.

     

    H. Judgment.  I fail
to satisfy or appeal any judgment against me.

     

    I. Forfeiture.  The
Property is used in a manner or for a purpose that threatens confiscation by a
legal authority.

     

    J. Name Change.  I
change my name or assume an additional name without notifying you before making
such a change.

     

    K. Property
Transfer.  I transfer all or a substantial part of my money or
property.

     

    L. Property
Value.  You determine in good faith that the value of the
Property has declined or is impaired.

     

    M. Material
Change.  Without first notifying you, there is a material
change in my business, including ownership, management, and financial
conditions.

     

    N. Insecurity.  You
determine in good faith that a material adverse change has occurred in
Borrower's financial condition from the conditions set forth in Borrower's most
recent financial statement before the date of this Agreement or that the
prospect for payment or performance of the Loan is impaired for any
reason.

     

    8. REMEDIES.  After I
default, you may at your option do any one or more of the
following.

     

    A.
Acceleration.  You may make all or any part of the amount owing
by the terms of the Loan immediately due.  If I am a debtor in a
bankruptcy petition or in an application filed under section 5(a)(3) of the
Securities Investor Protection Act, the Loan is automatically accelerated and
immediately due and payable without notice or demand upon filing of the petition
or application.

     

    B. Sources.  You may
use any and all remedies you have under state or federal law or in any Loan
Document.

     

    C. Insurance
Benefits.  You may make a claim for any and all insurance
benefits or refunds that may be available on my default.

     

    D. Payments Made On My
Behalf.  Amounts advanced on my behalf will be immediately due
and may be added to the balance owing under the terms of the Loan, and accrue
interest at the highest post-maturity interest rate.

     

    E. Termination.  You
may terminate my rights to obtain advances or other extensions of credit by any
of the methods provided in this Agreement.

     

    F. Set-Off.  You may
use the right of set-off.  This means you may set-off any amount due
and payable under the terms of the Loan against any right I have to receive
money from you.

     

    My right
to receive money from you includes any deposit or share account balance I have
with you; any money owed to me on an item presented to you or in your possession
for collection or exchange; and any repurchase agreement or other non-deposit
obligation.  "Any amount due and payable under the terms of the Loan"
means the total amount to which you are entitled to demand payment under the
terms of the Loan at the time you set-off.

     

    Subject
to any other written contract, if my right to receive money from you is also
owned by someone who has not agreed to pay the Loan, your right of set-off will
apply to my interest in the obligation and to any other amounts I could withdraw
on my sole request or endorsement.

     

    Your
right of set-off does not apply to an account or other obligation where my
rights arise only in a representative capacity.  It also does not
apply to any Individual Retirement Account or other tax-deferred retirement
account.

     

    You will
not be liable for the dishonor of any check when the dishonor occurs because you
set-off against any of my accounts.  I agree to hold you harmless from
any such claims arising as a result of your exercise of your right of
set-off.

     

    G. Waiver.  Except
as otherwise required by law, by choosing any one or more of these remedies you
do not give up your right to use any other remedy.  You do not waive a
default if you choose not to use a remedy.  By electing not to use any
remedy, you do not waive your right to later consider the event a default and to
use any remedies if the default continues or occurs again.

     

    9. COLLECTION EXPENSES AND ATTORNEYS'
FEES.  On or after Default, to the extent permitted by law, I
agree to pay all expenses of collection, enforcement or protection of your
rights and remedies under this Agreement or any other Loan
Document.  Expenses include (unless prohibited by law) reasonable
attorneys' fees, court costs, and other legal expenses.  These
expenses are due and payable immediately.  If not paid immediately,
these expenses will bear interest from the date of payment until paid in full at
the highest interest rate in effect as provided for in the terms of this
Loan.  All fees and expenses will be secured by the Property I have
granted to you, if any.  In addition, to the extent permitted by the
United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees
incurred by you to protect your rights and interests in connection with any
bankruptcy proceedings initiated by or against me.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10. APPLICABLE
LAW.  This Agreement is governed by the laws of Virginia, the
United States of America, and to the extent required, by the laws of the
jurisdiction where the Property is located, except to the extent such state laws
are preempted by federal law.  In the event of a dispute, the
exclusive forum, venue and place of jurisdiction will be in Virginia, unless
otherwise required by law.

     

    11. JOINT AND INDIVIDUAL LIABILITY AND
SUCCESSORS.  My obligation to pay the Loan is independent of
the obligation of any other person who has also agreed to pay it.  You
may sue me alone, or anyone else who is obligated on the Loan, or any number of
us together, to collect the Loan.  Extending the Loan or new
obligations under the Loan, will not affect my duty under the Loan and I will
still be obligated to pay the Loan.  You may assign all or part of
your rights or duties under this Agreement or the Loan Documents without my
consent.  If you assign this Agreement, all of my covenants,
agreements, representations and warranties contained in this Agreement or the
Loan Documents will benefit your successors and assigns.  I may not
assign this Agreement or any of my rights under it without your prior written
consent.  The duties of the Loan will bind my successors and
assigns.

     

    12. AMENDMENT, INTEGRATION AND
SEVERABILITY.  This Agreement may not be amended or modified by
oral agreement.  No amendment or modification of this Agreement is
effective unless made in writing and executed by you and me.  This
Agreement and the other Loan Documents are the complete and final expression of
the understanding between you and me.  If any provision of this
Agreement is unenforceable, then the unenforceable provision will be severed and
the remaining provisions will still be enforceable.

     

    13. INTERPRETATION.  Whenever
used, the singular includes the plural and the plural includes the
singular.  The section headings are for convenience only and are not
to be used to interpret or define the terms of this Agreement.

     

    14. NOTICE, FINANCIAL REPORTS AND
ADDITIONAL DOCUMENTS.  Unless otherwise required by law, any
notice will be given by delivering it or mailing it by first class mail to the
appropriate party's address listed in the DATE AND PARTIES section, or to any
other address designated in writing.  Notice to one Borrower will be
deemed to be notice to all Borrowers.  I will inform you in writing of
any change in my name, address or other application information.  I
will provide you any financial statement or information you
request.  All financial statements and information I give you will be
correct and complete.  I agree to sign, deliver, and file any
additional documents or certifications that you may consider necessary to
perfect, continue, and preserve my obligations under this Loan and to confirm
your lien status on any Property.  Time is of the
essence.

     

    15. SIGNATURES.  By
signing under seal, I agree to the terms contained in this
Agreement.  I also acknowledge receipt of a copy of this
Agreement.

    
       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          	BORROWER:	 	 	 	 
	 	 	 	 	 	 	 
	 	WidePoint
      Corporation	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	
                  /s/
      James T. McCubbin

                	
                  (Seal)

                	 	
                   

                	 
	 	 	
                  James
      T. McCubbin, Vice President

                	 	 	
                   

                	 
	 	 	
                   

                	 	 	
                   

                	 
	 	 	 	 	 	 	 
	 	Widepoint
      IL, Inc.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice President

                	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	WP
      NBIL, Inc.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice President

                	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Chesapeake
      Government Technologies, Inc.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice President

                	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Operational
      Research Consultants, Inc.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice President

                	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	iSYS,
      LLC	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice President

                	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Advanced
      Response Concepts Corporation	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice President

                	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Protexx
      Acquistion Corporation	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By	

                  /s/
      James T. McCubbin

                	

                  (Seal)

                	 	 	 
	 	 	

                  James
      T. McCubbin, Vice PresidentExhibit 10.1

     

    EXECUTIVE EMPLOYMENT
AGREEMENT

    

    This Executive Employment Agreement
(this “Agreement”) is made as of the 15th day of August, 2010 by and between
SensiVida Medical Technologies, Inc., a Delaware corporation
(the  “Company”), and Margaret Lydon, a natural person who resides in
the State of New York (“Executive”).

    

    WHEREAS, the Company wishes to employ
Executive as its Chief Operating Officer and Executive wishes to accept such
employment;

    

    WHEREAS, the Company and Executive wish
to set forth the terms of Executive’s employment and certain additional
agreements between Executive and the Company.

    

    NOW, THEREFORE, in consideration of the
foregoing recitals and the representations, covenants and terms contained
herein, the parties hereto agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Employment
      Period

            

    

    

    The
Company will employ Executive, and Executive will serve the Company, under the
terms of this Agreement commencing August 15, 2010 (the “Commencement Date”) for
a term of three (3) years unless earlier terminated under Section 4
hereof.  The period of time between the commencement and the
termination of Executive’s employment hereunder shall be referred to herein as
the “Employment Period”.

    

    
      	
               
      

            	
              2.

            	
              Duties
      and Status

            

    

    

    The
Company hereby engages Executive as its Chief Operating Officer on the terms and
conditions set forth in this Agreement including the terms and conditions of the
Employee Proprietary Information, Inventions, and Non-Competition Agreement
attached hereto as Exhibit A and
incorporated herein. Executive agrees to perform such duties as are customarily
performed by similar executive officers at peer companies and as may be more
specifically enumerated from time to time by the Company’s Board of Directors
(the “Board”). During the term of the Employment Period, Executive shall
exercise such authority, perform such executive functions and discharge such
responsibilities as are reasonably associated with Executive’s position,
commensurate with the authority vested in Executive pursuant to this Agreement
and consistent with the governing documents of the Company.

    

    
      	
               
      

            	
              3.

            	
              Compensation
      and Benefits

            

    

    

    
      	
               
      

            	
              (a)

            	
              Salary.  During
      the Employment Period, the Company shall pay to Executive, as compensation
      for the performance of  Executive’s duties and obligations under
      this Agreement, a base salary of $125,000 per annum (the “Annual Base
      Salary”), payable in accordance with the Company’s regular payroll
      practices.  Executive's Annual Base Salary shall be reviewed
      annually in accordance with the policies of the Company from time to time
      and may be subject to upward adjustment based upon, among other things,
      Executive's performance, as determined in the sole discretion of the
      Board. On each annual anniversary of the Commencement Date of this
      Agreement, Executive's Annual Base Salary shall be subject to an annual
      cost of living increase of not less than five percent (5%), provided, however, that
      the Board must make an affirmative determination that such a cost of
      living adjustment is
appropriate.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Bonus.  During
      the Employment Period, Executive shall be eligible for a bonus to be paid
      in cash, stock or stock options or  a combination based on
      performance targets that shall be defined and agreed upon mutually by the
      Board and Executive. Cash and/or stock/stock option bonus payments will be
      determined and approved by the
Board.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Stock
      Options.  The Executive shall receive options (the
      “Options”) under the Company's 1999 Stock Incentive Plan to acquire
      400,000 shares of the Company’s common stock upon signing of this
      agreement, par value $.01 per share.  The Options shall vest as
      follows: 100,000 Options shall vest and become exercisable on August 14,
      2011, 100,000 Options shall vest and become exercisable on August 14,
      2012, and 200,000 Options shall vest and become exercisable on August 14,
      2013 subject to the terms and conditions described in the
      Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Equity.  Executive
      shall be eligible to receive awards of restricted stock, stock options,
      stock appreciation rights, phantom stock units and such other forms of
      equity compensation awards that may be authorized from time to time by the
      Board (collectively, “Equity”) under the Company’s equity compensation
      plans, such awards to be made by the Board from time to time in its sole
      discretion.  The Company shall reserve 5% of its authorized
      capital for its Equity compensation plans for directors, officers,
      employees, advisors, consultants and other
  personnel.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Other
      Benefits.  During the Employment Period, Executive shall
      be entitled to participate in all of the employee benefit plans, programs
      and arrangements of the Company in effect during the Employment Period
      which are generally available to senior executives of the Company, subject
      to and on a basis consistent with the terms, conditions and overall
      administration of such plans, programs and arrangements.  In
      addition, during the Employment Period, Executive shall be entitled to
      fringe benefits and perquisites comparable to those of other senior
      executives of the Company including, but not limited to, standard
      holidays, twenty (20) days of vacation for the first year of the
      Employment Period and an additional day of vacation for each year
      thereafter to a maximum of twenty-five (25) days, to be used in accordance
      with the Company’s vacation pay policy for senior
    executives.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Business
      Expenses.  During the Employment Period, the Company
      shall promptly reimburse Executive for all appropriately documented,
      reasonable business expenses incurred by Executive in the performance of
      Executive’s duties under this Agreement, including telecommunications
      expenses and travel expenses.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.

            	
              Termination
      of Employment

            

    

    

    
      	
               
      

            	
              (a)

            	
              Termination for
      Cause.  The Company may terminate Executive’s employment
      hereunder for Cause (defined below).  For purposes of this
      Agreement and subject to Executive’s opportunity to cure as provided in
      Section 4(c) hereof, the Company shall have Cause to terminate Executive’s
      employment hereunder if such termination shall be the result
      of:

            

    

    

    
      	
               
      

            	
              (i)

            	
              a
      material breach
      of fiduciary duty or material breach
      of the terms of this Agreement or any other agreement between Executive
      and the Company (including without limitation any agreements regarding
      confidentiality, inventions assignment and
    non-competition);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      commission by Executive of any act of embezzlement, fraud, larceny or
      theft on or from the Company;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              substantial
      and continuing neglect or inattention by Executive of the duties of his
      employment or the willful misconduct or gross negligence of Executive in
      connection with the performance of such duties which remains uncured for a
      period of fifteen (15) days following receipt of written notice from the
      Board specifying the nature of such
breach;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      commission and indictment by Executive of any crime involving moral
      turpitude or a felony; and

            

    

     

    
      	
               
      

            	
              (v)

            	
              Executive’s
      performance or omission of any act which, in the judgment of the Board, if
      known to the customers, clients, stockholders or any regulators of the
      Company, would have a material and adverse impact on the business of the
      Company.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Termination for Good
      Reason.  Executive shall have the right at any time to
      terminate Executive’s employment with the Company upon not less than
      thirty (30) days prior written notice of termination for Good Reason
      (defined below).  For purposes of this Agreement and subject to
      the Company’s opportunity to cure as provided in Section 4(c) hereof,
      Executive shall have Good Reason to terminate Executive’s employment
      hereunder if such termination shall be the result
  of:

            

    

     

    
      	
            	
              (i)

            	
              the
      Company’s material breach of this Agreement;
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              A
      requirement by the Company that Executive perform any act or refrain from
      performing any act that would be in violation of any applicable
      law.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              Notice and Opportunity to
      Cure.  Notwithstanding the foregoing, it shall be a
      condition precedent to the Company’s right to terminate Executive’s
      employment for Cause and Executive’s right to terminate for Good Reason
      that (i) the party seeking termination shall first have given the other
      party written notice stating with specificity the reason for the
      termination (“breach”) and (ii) if such breach is susceptible of cure or
      remedy, a period of fifteen (15) days from and after the giving of such
      notice shall have elapsed without the breaching party having effectively
      cured or remedied such breach during such 15-day period, unless such
      breach cannot be cured or remedied within fifteen (15) days, in which case
      the period for remedy or cure shall be extended for a reasonable time (not
      to exceed an additional thirty (30) days) provided the breaching party has
      made and continues to make a diligent effort to effect such remedy or
      cure. In case Employee is the party seeking termination, written notice
      should be provided to either the Company's CEO or the Company's Chairman
      of the Board.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Voluntary
      Termination.  Executive, at Executive’s election, may
      terminate Executive’s employment upon not less than sixty (60) days prior
      written notice of termination other than for Good
  Reason.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Termination Upon Death or
      Permanent and Total Disability.  The Employment Period
      shall be terminated by the death of Executive.  The Employment
      Period may be terminated by the Board if Executive shall be rendered
      incapable of performing Executive’s duties to the Company by reason of any
      medically determined physical or mental impairment that can be reasonably
      expected to result in death or that can be reasonably be expected to last
      for a period of either (i) six (6) or more consecutive months from the
      first date of Executive’s absence due to the disability or (ii) nine (9)
      months during any twelve-month period (a “Permanent and Total
      Disability”).  If the Employment Period is terminated by reason
      of a Permanent and Total Disability of Executive, the Company shall give
      thirty (30) days’ advance written notice to that effect to
      Executive.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Termination at the Election of
      the Company.  At the election of the Company, otherwise
      than for Cause as set forth in Section 4(a) above, upon not less than
      sixty (60) days prior written notice of
  termination.

            

    

    

    
      	
               
      

            	
              (g)

            	
              Termination for Business
      Failure.  Anything contained herein to the contrary
      notwithstanding, in the event the Company’s business is discontinued
      because continuation is rendered impracticable by substantial financial
      losses, lack of funding, legal decisions, administrative rulings,
      declaration of war, dissolution, national or local economic depression or
      crisis or any reasons beyond the control of the Company, then this
      Agreement shall terminate as of the day the Company determines to cease
      operation with the same force and effect as if such day of the month were
      originally set as the termination date hereof.  In the event
      this Agreement is terminated pursuant to this Section 4(g), the Executive
      will not be entitled to severance pay. Company will give Executive
      fourteen (14) days’ advance written notice of termination as set forth in
      Section 4(g).

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.

            	
              Consequences
      of Termination

            

    

    

    
      	
               
      

            	
              (a)

            	
              By Executive for Good Reason
      or by the Company Without Cause.  In the event of a
      termination of Executive’s employment during the Employment Period by
      Executive for Good Reason pursuant to Section 4(b) or by the Company
      without Cause pursuant to Section 4(f) the Company shall pay Executive (or
      Executive’s estate) and provide Executive with the following, provided
      that Executive enter into a release of claims agreement agreeable to the
      Company and Executive:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Cash
      Payment.  A cash payment, payable in equal installments
      over a six (6) month period after Executive’s termination of employment,
      equal to the sum of the following:

            

    

     

    
      	
               
      

            	
              (A)

            	
              Salary.  The
      equivalent of six (6) months of Executive’s then-current base salary (the
      “Severance Period”); plus

            

    

     

    
      	
               
      

            	
              (B)

            	
              Earned but Unpaid
      Amounts.  Any previously earned but unpaid salary through
      Executive’s final date of employment with the Company, and any previously
      earned but unpaid bonus amounts prior to the date of Executive’s
      termination of employment.

            

    

    

    
      	
               
      

            	
              (C)

            	
              Equity.  All
      Equity vested at time of termination shall be retained by Executive and
      all Equity that has not vested shall be accelerated and be deemed vested
      for purposes of this Section 5.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Other
      Benefits.  The Company shall provide continued coverage
      for the Severance Period under all health, life, disability and similar
      employee benefit plans and programs of the Company on the same basis as
      Executive was entitled to participate immediately prior to such
      termination, provided that Executive’s continued participation is possible
      under the general terms and provisions of such plans and
      programs.  In the event that Executive’s participation in any
      such plan or program is barred, the Company shall use its commercially
      reasonable efforts to provide Executive with benefits substantially
      similar (including all tax effects) to those which Executive would
      otherwise have been entitled to receive under such plans and programs from
      which his continued participation is barred.  In the event that
      Executive is covered under substitute benefit plans of another employer
      prior to the expiration of the Severance Period, the Company will no
      longer be obligated to continue the coverage provided for in this Section
      5(a)(ii).

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Other Termination of
      Employment.  In the event that Executive’s employment
      with the Company is terminated during the Employment Period by the Company
      for Cause (as provided for in Section 4(a) hereof) or by Executive other
      than for Good Reason (as provided for in Section 4(b) hereof), the Company
      shall pay or grant Executive any earned but unpaid salary, bonus, and
      Options through Executive’s final date of employment with the Company, and
      the Company shall have no further obligations to
  Executive.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Withholding of
      Taxes.  All payments required to be made by the Company
      to Executive under this Agreement shall be subject only to the withholding
      of such amounts, if any, relating to tax, excise tax and other payroll
      deductions as may be required by law or
  regulation.

            

    

    

    
      	
               
      

            	
              (d)

            	
              No Other
      Obligations.  The benefits payable to Executive under
      this Agreement are not in lieu of any benefits payable under any employee
      benefit plan, program or arrangement of the Company, except as
      specifically provided herein, and Executive will receive such benefits or
      payments, if any, as he may be entitled to receive pursuant to the terms
      of such plans, programs and arrangements.  Except for the
      obligations of the Company provided by the foregoing and this Section 5,
      the Company shall have no further obligations to Executive upon his
      termination of employment.

            

    

    

    
      	
               
      

            	
              6.

            	
              Change
      of Control.

            

    

    

    
      	
               
      

            	
              (a)

            	
              In
      the event of a change in control of the Company, the Company shall pay
      Executive and provide him with the
following:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Cash
      Payment.  A cash payment, payable in a lump sum at the
      time any change in control is consummated, equal to the sum of the
      following:

            

    

     

    
      	
               
      

            	
              (A)

            	
              Salary.  The
      equivalent of eighteen (18) months of Executive’s then-current base
      salary; plus

            

    

     

    
      	
               
      

            	
              (B)

            	
              Earned but Unpaid
      Amounts.  Any previously earned but unpaid salary through
      date of the change in control, and any previously earned but unpaid bonus
      amounts prior to the date of the change in
  control.

            

    

     

    
      	
               
      

            	
              (C)

            	
              Equity.  All
      Equity vested at time of the change in control shall be retained by
      Executive and all Equity that has not vested shall be accelerated and be
      deemed vested for purposes of this Section
6.

            

    

    

    
      	
               
      

            	
              (b)

            	
              As
      used in this Agreement, the term "change in control" shall mean the
      occurrence of any of the following
events:

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              if
      any "person" or "group" of persons, as such terms are used in
      Sections 13 and 14 of the Securities Exchange Act of 1934, as amended
      (the “Exchange Act”), other than an employee benefit plan sponsored by the
      Company, becomes the "beneficial owner," as such term is used in
      Section 13 of the Exchange Act (without regard to any vesting or
      waiting periods) of common equity of the Company or any class of stock
      convertible into common equity of the Company, in an amount equal to
      twenty percent (20%) or more of the sum total of the common equity issued
      and outstanding immediately prior to such acquisition as if they were a
      single class and disregarding any equity raise in connection with the
      financing of such transaction;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      any common equity is purchased pursuant to a tender or exchange
      offer;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              upon
      the dissolution or liquidation of the Company or the consummation of any
      merger or consolidation of the Company or any sale or other disposition of
      all or substantially all of its assets, if the stockholders of the Company
      immediately before such transaction own, immediately after consummation of
      such transaction, equity securities possessing less than fifty percent
      (50%) of the surviving or acquiring company;
or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              upon
      a turnover, during any two (2) year period, of the majority of the
      members of the Board, without the consent of the remaining members of the
      Board as to the appointment of the new
members.

            

    

     

    
      	
               
      

            	
              7.

            	
              Governing
      Law

            

    

    

    This Agreement and the rights and
obligations of the parties hereto shall be construed in accordance with the laws
of the State of New York, without giving effect to the principles of conflict of
laws.

    

    
      	
               
      

            	
              8.

            	
              Indemnity
      and Insurance

            

    

    

    The Company shall indemnify and save
harmless Executive for any liability incurred by reason of any act or omission
performed by Executive while acting in good faith on behalf of the Company and
within the scope of the authority of Executive pursuant to this Agreement and to
the fullest extent provided under the Bylaws, the Articles of Incorporation and
the Delaware General Corporation Law, except that Executive must have in good
faith believed that such action was in, or not opposed to, the best interests of
the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe that such conduct was unlawful.

    

    The Company shall provide that
Executive is covered by any Directors and Officers insurance that the Company
provides to other senior executives and/or board members.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              9

            	
              Cooperation with the Company
      After Termination of
Employment

            

    

    

    Following termination of Executive’s
employment for any reason, Executive shall fully cooperate with the Company in
all matters relating to the winding up of Executive’s pending work on behalf of
the Company including, but not limited to, any litigation in which the Company
is involved, and the orderly transfer of any such pending work to other
employees of the Company as may be designated by the
Company.  Following any notice of termination of employment by either
the Company or Executive, the Company shall be entitled to such full time or
part time services of Executive as the Company may reasonably require during all
or any part of the sixty (60)-day period following any notice of termination,
provided that Executive shall be compensated for such services at the same rate
as in effect immediately before the notice of termination.

    

    
      	
               
      

            	
              10

            	
              Notice

            

    

    

    All notices, requests and other
communications pursuant to this Agreement shall be sent by overnight mail, by
fax with proof of transmission or by email with confirmed receipt to the
following addresses:

    

    If to Executive:

    

    Ms. Margaret Lydon

    Phone:  

    Email: 

    

    If to the Company:

    

    SensiVida Medical Technologies,
Inc.

    150 Lucius Gordon Drive, Suite
110

    West
Henrietta, NY 14623

    Attn: Jose Mir, President

    Phone:  585-953-5559

    Fax: 585-272-0229

    Email: jmir51@gmail.com

    

    
      	
               
      

            	
              11

            	
              Waiver
      of Breach

            

    

    

    Any waiver of any breach of this
Agreement shall not be construed to be a continuing waiver or consent to any
subsequent breach on the part of either Executive or of the
Company.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              12

            	
              Non-Assignment
      / Successors

            

    

    

    Neither party hereto may assign his/her
or its rights or delegate his/hers or its duties under this Agreement without
the prior written consent of the other party; provided, however, that (i) this
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the Company upon any sale or all or substantially all of the
Company’s assets, or upon any merger, consolidation or reorganization of the
Company with or into any other corporation, all as though such successors and
assigns of the Company and their respective successors and assigns were the
Company; and (ii) this Agreement shall inure to the benefit of and be binding
upon the heirs, assigns or designees of Executive to the extent of any payments
due to them hereunder.  As used in this Agreement, the term “Company”
shall be deemed to refer to any such successor or assign of the Company referred
to in the preceding sentence.

    

    
      	
               
      

            	
              13

            	
              Severability

            

    

    

    To the extent any provision of this
Agreement or portion thereof shall be invalid or unenforceable, it shall be
considered deleted there from and the remainder of such provision and of this
Agreement shall be unaffected and shall continue in full force and
effect.

    

    
      	
               
      

            	
              14

            	
              Counterparts

            

    

    

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

    

    
      	
               
      

            	
              15

            	
              Arbitration

            

    

    

    Executive and the Company shall submit
to mandatory and exclusive binding arbitration, any controversy or claim arising
out of, or relating to, this Agreement or any breach hereof where the amount in
dispute is greater than or equal to $50,000, provided, however, that the
parties retain their right to, and shall not be prohibited, limited or in any
other way restricted from, seeking or obtaining equitable relief from a court
having jurisdiction over the parties.  In the event the amount of any
controversy or claim arising out of, or relating to, this Agreement, or any
breach hereof, is less than $50,000, the parties hereby agree to submit such
claim to mediation.  Such arbitration shall be governed by the Federal
Arbitration Act and conducted through the American Arbitration Association
(“AAA”) in the State of New York, before a single neutral arbitrator, in
accordance with the National Rules for the Resolution of Employment Disputes of
the American Arbitration Association in effect at that time.  The
parties may conduct only essential discovery prior to the hearing, as defined by
the AAA arbitrator.  The arbitrator shall issue a written decision
which contains the essential findings and conclusions on which the decision is
based.  Mediation shall be governed by, and conducted through, the
AAA.  Judgment upon the determination or award rendered by the
arbitrator may be entered in any court having jurisdiction
thereof.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              16

            	
              Entire
      Agreement

            

    

    

    This Agreement and all schedules and
other attachments hereto constitute the entire agreement by the Company and
Executive with respect to the subject matter hereof and, except as specifically
provided herein, supersedes any and all prior agreements or understandings
between Executive and the Company with respect to the subject matter hereof,
whether written or oral.  This Agreement may be amended or modified
only by a written instrument executed by Executive and the
Company.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

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

    

    
      
        	 
      	
                SENSIVIDA
      MEDICAL TECHNOLOGIES, INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Jose Mir

              
	 
      	
                Name:  Jose
      Mir

              
	 
      	
                Title:  President

              
	 
      	 
      
	 
      	
                EMPLOYEE

              
	 
      	 
      
	 
      	
                /s/ Margaret Lydon

              
	 
      	
                Margaret
      Lydon

              

      

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    Exhibit
A

    

     Proprietary
Information and Non-Competition Agreement

    

    For
purposes of this Agreement, the term "Proprietary
Information" shall mean all knowledge and information which the Employee
has acquired or may acquire as a result of, or related to, his relationship with
the Company concerning the Company's business, finances, sales and marketing
plans, operations, strategic planning, current or proposed products or services,
software, methodologies, algorithms, flow charts and logic diagrams, technical
specifications and data, proprietary technology, trade secrets, cost and pricing
policies, methods of doing business, customer names and profiles, confidential
business information, know-how, techniques, and strategies and
Services.  Notwithstanding the foregoing sentence, such Proprietary
Information does not include (i) information which is or becomes publicly
available through no action or fault of the Employee (except as may be used or
disclosed in violation of this Agreement), (ii) information acquired by the
Employee from a source other than the Company or any of its employees or other
consultants, which source acquired such information directly from the Company
without a breach of any confidentiality obligation between such source and the
Company, (iii) information that is known to the Employee without restriction
from his own independent sources as evidenced by the Employee’s written records,
and which was not acquired, directly or indirectly, from the Company or its
partners, and (iv) information developed or obtained by the Employee unrelated
to the services performed by the Employee for the Company and discovered from
sources other than the Company.

    

    
      	
               
      

            	
              1.

            	
              During
      Term of Employment

            

    

    

    At all
times while this Proprietary Information and Non-Competition Agreement (this
"Agreement") is in force and after its expiration or termination, Employee
agrees to refrain from disclosing the customer lists, trade secrets, inventions,
or other Proprietary Information of SensiVida Medical Technologies, Inc. (the
"Company"). All Proprietary Information generated by Employee during the Term of
Employment as set forth in Employee's Employment Agreement with the Company will
be the property of Company and to be surrendered to the Company by employee upon
termination as described in Section 4 of this Agreement. In addition, Employee
shall not engage, directly or indirectly, as an employee, officer, director,
partner, manager, consultant, agent, owner (other than a minority shareholder or
other equity interest of not more than 1% of a company whose equity interests
are publicly traded on a nationally recognized stock exchange or
over-the-counter) or in any other capacity, in any competition with the Company
or any of its subsidiaries.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              2.

            	
              Subsequent
      to Employment

            

    

    

     After
expiration or termination of this agreement, Employee agrees not to compete with
the Company for a period of 2 years in the area of minimally invasive medical
diagnostics or disclose the Company’s Proprietary Information as described in
Section 1. All Company material generated by Employee during employment will be
surrendered to the Company as described Section 4. In addition, Employee shall not in
any capacity (whether in the capacity as an employee, officer, director,
partner, manager, consultant, agent or owner (other than a minority shareholder
or other equity interest of not more than 1% of a company whose equity interests
are publicly traded on a nationally recognized stock exchange or
over-the-counter), directly or indirectly advise, manage, render or perform
services to or for any person or entity which is engaged in a business
competitive to that of the Company or any of its subsidiaries.

    

    
      	
               
      

            	
              3.

            	
              Non-solicitation

            

    

    

    For a 2
year period following the termination of Employee’s employment for any reason or
without reason, Employee shall not solicit or induce any person who was an
employee of the Company or any of its subsidiaries on the date of Employee’s
termination or within three months prior to leaving his or her employment with
the Company or any of its subsidiaries to leave their employment with the
Company.

    

    
      	
               
      

            	
              4.

            	
              Return
      of Documents

            

    

    

    Immediately
upon termination of employment, Employee will return to the Company, and so
certify in writing to the Company, all the Company’s or any of its subsidiaries’
papers, documents and other property, including information stored for use in or
with computers and software applicable to the Company’s and its subsidiaries’
business (and all copies thereof), which are in Employee’s possession or under
Employee’s control, regardless whether such papers, documents or other property
contain Confidential Information or Trade Secrets.

    

    
      	
               
      

            	
              5.

            	
              No
      Conflicts

            

    

    

    To the
extent that they exist, Employee will not disclose to the Company or any of its
subsidiaries any of Employee’s previous employer’s confidential information or
trade secrets.  Further, Employee represents and warrants that
Employee has not previously assumed any obligations inconsistent with those of
this Agreement and that employment by the Company does not conflict with any
prior obligations to third parties.  In addition, Employee and the
Company agree that it is important for any prospective employer to be aware of
this Agreement, so that disputes concerning this Agreement can be avoided in the
future.  Therefore, the Employee agrees that, following termination of
employment with the Company, the Company may forward a copy of this
Non-Competition Agreement to any future prospective or actual employer, and the
Employee releases the Company from any claimed liability or damage caused to the
Employee by virtue of the Company’s act in making that prospective or actual
employer aware of this Agreement (and any related Exhibits
hereto).

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              6.

            	
              Agreement
      on Fairness.

            

    

    

    Employee
acknowledges that:  (i) this Agreement has been specifically bargained
between the parties and reviewed by Employee, (ii) Employee has had an
opportunity to obtain legal counsel to review this Agreement, and (iii) the
covenants made by and duties imposed upon Employee hereby are fair, reasonable
and minimally necessary to protect the legitimate business interests of the
Company, and such covenants and duties will not place an undue burden upon
Employee’s livelihood in the event of termination of Employee’s employment by
the Company and the strict enforcement of the covenants contained
herein.

    

    
      	
               
      

            	
              7.

            	
              Equitable
      Relief and Remedies.

            

    

    

    Employee
acknowledges that any breach of this Agreement will cause substantial and
irreparable harm to the Company for which money damages would be an inadequate
remedy.  Accordingly, the Company shall in any such event be entitled
to seek injunctive and other forms of equitable relief to prevent such breach
and the prevailing party shall be entitled to recover from the other, the
prevailing party’s costs (including, without limitation, reasonable attorneys’
fees) incurred in connection with enforcing this Agreement, in addition to any
other rights or remedies available at law.

    
      
         

      

      
        14

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