Document:

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                                                                   EXHIBIT 10.2

                             EMPLOYMENT AGREEMENT
                             --------------------

     This Agreement ("Agreement") dated this 18th day of August, 2000 between
Choice Hotels International, Inc. ("Employer"), a Delaware corporation with
principal offices at 10750 Columbia Pike, Silver Spring, Maryland 20901, and
Wayne Wielgus ("Employee"), sets forth the terms and conditions governing the
employment relationship between Employee and Employer.

     1.   Employment. During the term of this Agreement, as hereinafter defined,
          ----------
Employer hereby employs Employee as Senior Vice President, Marketing. Employee
hereby accepts such employment upon the terms and conditions hereinafter set
forth and agrees to faithfully and to the best of his ability perform such
duties as may be from time to time assigned by Employer's Board of Directors and
Chief Executive Officer, such duties to be rendered at the principal office of
Employer, subject to reasonable travel. Employee also agrees to perform his
duties in accordance with policies established by Employer's Board of Directors,
which may be changed from time to time. Employee reports directly to Employer's
President and CEO.

     2.   Term. Subject to the provisions for termination hereinafter provided,
          ----
the term of this Agreement shall begin on Employee's first day of employment,
which is expected to be on or about September 5, 2000 ("Effective Date") and
shall terminate five (5) years thereafter (the "Termination Date"). The
Agreement shall automatically be extended for successive one-year terms unless
either party gives written notice no less than nine months prior to the
Termination Date that it elects not to extend the Termination Date.

     3.   Compensation. For all services rendered by Employee under this
          ------------
Agreement, Employer shall pay Employee the following compensation:

          (a)  Salary. A base salary of Three Hundred Thousand Dollars
               ------
          ($300,000) per annum payable in equal bi-weekly installments. The
          salary will be reviewed by the Compensation Committee of the Board of
          Directors at the next annual review of officers following the
          Effective Date and may be increased thereafter at the discretion of
          Employer.

          (b)  Incentive Bonus. Employee shall have the opportunity to earn a
               ---------------
          target bonus of Fifty Percent (50%) per annum of the base salary set
          forth in subparagraph 3(a) above in Employer's bonus plans as adopted
          from time to time by Employer's Board of Directors. For calendar year
          2000, Employee shall be guaranteed a bonus of $150,000, payable in
          February, 2001.

          (c)  Automobile. Employer shall provide Employee with an allowance for
               ----------
          automobile expenses of $850 per month subject to withholding of usual
          taxes.

          (d)  Stock Options. Employee shall be eligible to receive options
               -------------
          under the Choice Hotels International, Inc. Long Term Incentive Plan
          ("LTIP"), or similar plan, to purchase Common Stock in accordance with
          the policy of the Employer's Board as in effect from time to time.

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          Additionally, the Employee shall be granted, on the Effective Date,
          60,000 options to purchase such number of shares of Common Stock. Some
          of the options will be deemed incentive stock options granted under
          the LTIP, which number shall be the maximum number permitted under the
          LTIP and Section 422(d) of the Internal Revenue Code of 1986, as
          amended, but in no event more than 25% of the total number of options
          granted pursuant to Section 3(e). The remainder of the options shall
          be nonqualified stock options. The options shall be exercisable at an
          amount per share equal to the average of the high and low trading
          price of the Common Stock on the Effective Date and shall vest in five
          equal annual installments following the first anniversary of the
          Effective Date.

          (e)  SERP. As of the Effective Date, Employee shall participate in the
               ----
          Choice Hotels International, Inc. Supplemental Executive Retirement
          Plan ("SERP").

          (f)  Other Benefits. Employee shall, when eligible, be entitled to
               --------------
          participate in all other fringe benefits, including vacation policy,
          generally accorded the most senior executive officers of Employer as
          are in effect from time to time on the same basis as such other senior
          executive officers. However, Employee shall be entitled to a minimum
          of four weeks of vacation per year.

          (g)  Relocation Expenses. Employee shall be entitled to all benefits
               -------------------
          afforded officers under the Relocation Policy of Employer and Employer
          shall pay Employee a housing subsidy in recognition of the higher cost
          of living in the Washington, D.C. metropolitan area in the amount of
          $125,000, payable 60% upon the Effective Date and 40% upon the one
          year anniversary of the Effective Date. If Employee is terminated (for
          any reason other than cause (see Section 10(b)) prior to the one year
          anniversary of the Effective Date, the remaining 40% of the housing
          subsidiary shall be paid to Employee within thirty (30) days of
          termination. Employer shall also provide Employee with a $200,000
          interest-free relocation loan, repayable in full upon the third
          anniversary of the loan. The loan shall comply with all requirements
          of IRS Reg. Section 7872(c) and Employee hereby certifies that the
          proceeds of the loan will be used to purchase a principal residence
          and that he reasonably expects to be entitled to and will (if legally
          permitted) itemize deductions on his federal income tax return for
          each year that the loan is outstanding.

     4.   Extent of Services. Employee shall devote his full professional time,
          ------------------
attention, and energies to the business of Employer, and shall not during the
term of this Agreement be engaged in any other business activity whether or not
such business activity is pursued for gain, profit, or other pecuniary
advantage; but the foregoing shall not be construed as preventing Employee from
investing his assets in (i) the securities of public companies, or (ii) the
securities of private companies or limited partnerships outside the lodging
industry if such holdings are passive investments of one percent or less of
outstanding securities and Employee does not hold positions of officer, employee
or general partner. Employee shall be permitted to serve as a director of
companies outside of the lodging industry so long as such service does not
inhibit his performance of

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services to the Employer. Employee shall not be permitted to serve as a director
of any company within the lodging industry unless (i) the Employer's Corporate
Compliance officer has determined that there is no conflict of interest and (ii)
such service does not inhibit his performance of services to the Employer.
Employee warrants and represents that he has no contracts or obligations to
others which would materially inhibit the performance of his services under this
Agreement.

     5.   Disclosure and Use of Information. Employee recognizes and
          ---------------------------------
acknowledges that Employer's and affiliates' present and prospective clients,
franchises, management contracts, acquisitions and personnel, as they may exist
from time to time, are valuable, special and unique assets of Employer's
business. Throughout the term of this Agreement and for a period of two (2)
years after its termination or expiration for whatever cause or reason except as
required by applicable law, Employee shall not directly or indirectly, or cause
others to, make use of or disclose to others any information relating to the
business of Employer that has not otherwise been made public, including but not
limited to Employer's present or prospective clients, franchises, management
contracts or acquisitions. During the term of this Agreement and for a period of
two years thereafter, Employee agrees not to solicit for employment or contract
for services with, directly or indirectly, on his behalf or on behalf of any
other person or entity, any person employed by Employer, or its subsidiaries or
affiliates during such period, unless Employer consents in writing. In the event
of an actual or threatened breach by Employee of the provisions of this
paragraph, Employer shall be entitled to injunctive relief restraining Employee
from committing such breach or threatened breach. Nothing herein stated shall be
construed as preventing Employer from pursuing any other remedies available to
Employer for such breach or threatened breach, including the recovery of damages
from Employee.

     6.   Notices. Any notice, request or demand required or permitted to be
          -------
given under this Agreement shall be in writing, and shall be delivered
personally to the recipient or, if sent by certified or registered mail or
overnight courier service to his residence in the case of Employee, or to its
principal office in the case of the Employer. Such notice shall be deemed given
when delivered if personally delivered or when received if sent certified or
registered mail or overnight courier.

     7.   Elective Positions; Constructive Termination
          --------------------------------------------

          (a)  Nothing contained in this Agreement is intended to nor shall be
          construed to abrogate, limit or affect the powers, rights and
          privileges of the Board of Directors or stockholders to remove
          Employee from the position referenced in Section 1, with or without
          Cause (as defined in Section 10 below), during the term of this
          Agreement or to elect someone other than Employee to those positions,
          as provided by law and the By-Laws of Employer. However, if Employee
          is terminated for any reason other than cause, Employee is entitled to
          severance and all benefits provided in Section 7(b) or Section 11, as
          applicable.

          (b)  If Employee is Constructively Terminated (as defined in Section
          7(c) below), it is expressly understood and agreed that Employee's
          rights under this Agreement shall in no way be prejudiced, Employee
          shall not, thereafter, be required to perform any services under this
          Agreement and

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          Employee shall be entitled to receive all forms of compensation
          referred to in Section 3 above, including, without limitation, bonuses
          (calculated based only on the actual payout on the EPS portion of the
          bonus as all Choice officers receive in a given year) and the
          continued vesting through the term of this Agreement of stock options
          and restricted stock outstanding at the time of the Constructive
          Termination. However, Employee shall not be entitled to receive new
          stock option grants or rights to ungranted stock options. Employee
          upon removal shall not be required to mitigate damages but
          nevertheless shall be entitled to pursue other employment, and
          Employer shall be entitled to receive as an offset and thereby reduce
          its payment by the amount received by Employee from any other active
          employment. As a condition to Employee receiving his compensation from
          Employer, Employee agrees to permit verification of his employment
          records and income tax returns by an independent attorney or
          accountant, selected by Employer but reasonably acceptable to
          Employee, who agrees to preserve the confidentiality of the
          information disclosed by Employee except to the extent required to
          permit Employer to verify the amount received by Employee from other
          active employment. Employer shall receive credit for unemployment
          insurance benefits, social security insurance or other like amounts
          payable during periods of unemployment actually received by Employee.

          (c)  For purposes of Sections 7 and 11, "Constructively Terminated"
          shall mean (i) removal or termination of Employee other than in
          accordance with Section 10, (ii) a decrease in Employee's compensation
          or benefits (unless a similar decrease is imposed on all senior
          executive officers), (iii) a significant reduction in the scope of
          Employee's authority, position, duties or responsibilities, (iv) a
          significant change in Employer's annual bonus program which adversely
          affects Employee, or (v) any other material breach of this Agreement
          by Employer provided Employer shall be given fourteen days advance
          written notice of such claim of material breach, which written notice
          shall specify in reasonable detail the grounds for such claim of
          material breach. Except in the case of bad faith, Employer shall have
          an opportunity to cure the basis for Constructive Termination during
          the fourteen day period after written notice.

     8.   Waiver of Breach. The waiver of either party of any provision of this
          ----------------
Agreement shall not operate or be construed as a waiver of any subsequent
breach.

     9.   Assignment. The rights and obligations of Employer under this
          ----------
Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of Employer. The obligations of Employee hereunder may not be
assigned or delegated.

     10.  Termination of Agreement. This Agreement shall terminate upon the
          ------------------------
following events and conditions:

          (a)  Upon expiration of its term;

          (b)  For Cause, which means gross negligence, willful misconduct,
          willful nonfeasance, deliberate and continued

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          refusal to carry out duties and instructions of the Employer's Board
          of Directors and Chief Executive Officer consistent with the position,
          material dishonesty, a willful breach of this Agreement or conviction
          of a felony involving moral turpitude, fraud or misappropriation of
          corporate funds. Employee shall be entitled to fourteen (14) days
          advance written notice of termination, except where the basis for
          termination constitutes wilful conduct on the part of Employee
          involving dishonesty or bad faith, in which case the termination shall
          be effective upon the sending of notice. Such written notice shall
          specify in reasonable detail the grounds for Cause and Employee shall
          have an opportunity to contest to the Board of Directors or cure the
          basis for termination during the fourteen day period after written
          notice.

          (c)  Subject to state and federal laws, if Employee is unable to
          perform the essential functions of the services described herein,
          after reasonable accommodation, for more than 180 days (whether or not
          consecutive) in any period of 365 consecutive days, Employer shall
          have the right to terminate this Agreement upon 60 days written notice
          to Employee. In the event of such termination, all non-vested stock
          options and other non-vested obligations of Employer to Employee
          pursuant to this Agreement shall terminate.

          (d) In the event of Employee's death during the term of this
          Agreement, the Agreement shall terminate as of the date thereof.

     11.  Severance.
          ---------

          (a)  If, within twelve months after a Change in Control, as defined in
          Section 11(b), the Employer terminates or Constructively Terminates
          Employee's employment other than in accordance with Section 10,

          (b)  the amount of Employee's severance pay will be 200% of his base
          salary at the rate in effect at the time of his termination or
          Constructive Termination, plus 200% of the amount of any full year
          bonus awarded to Employee in the prior year (or the maximum target
          bonus if no bonus was awarded in the prior year). If Employee's
          employment is terminated subject to this paragraph, the Employer will
          provide the Employee and his family health insurance coverage,
          including, if applicable, COBRA reimbursement, and will provide
          Employee disability insurance coverage under the applicable Employer
          plans and all other executive benefits then in effect for a period of
          12 months following termination or until Employee starts other full
          time employment, whichever is earlier.

          (c)  A Change in Control of the Employer shall occur upon the
          happening of the earliest to occur of the following:

             1. Any "person" as such term is used in Sections 13(d) and 14(d) of
     the Securities Exchange Act of 1934, as amended (other than (i) the
     Employer, (ii) any trustee or other fiduciary holding securities under an
     employee benefit plan of the Employer, (iii) any corporations owned,
     directly or indirectly, by the

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     stockholders of the Employer in substantially the same proportions as their
     ownership of stock, (iv) Stewart Bainum, his wife, their lineal descendants
     and their spouses (so long as they remain spouses) and the estate of any of
     the foregoing persons, and any partnership, trust, corporation or other
     entity to the extent shares of common stock (or their equivalent) are
     considered to be beneficially owned by any of the persons or estates
     referred to in the foregoing provisions of this subsection 11(b) or any
     transferee thereof, or (v) the Baron Entities, unless such entities, in the
     aggregate, beneficially own more than 19,715,000 shares of the Employer's
     common stock) becomes the "beneficial owner" (as defined in Rule 13d-3
     under the Exchange Act), directly or indirectly, of securities of the
     Employer representing 33% or more of the combined voting power of the
     Employer's then outstanding voting securities;

          2.   Individuals constituting the Board on the Effective Date and the
     successors of such individuals ("Continuing Directors") cease to constitute
     a majority of the Board. For this purpose, a director shall be a successor
     if and only if he or she was nominated by a Board (or a Nominating
     Committee thereof) on which individuals constituting the Board on the
     Effective Date and their successors (determined by prior application of
     this sentence) constituted a majority.

          3.   The stockholders of the Employer approve a plan of merger or
     consolidation ("Combination") with any other corporation or legal person,
     other than a Combination which would result in stockholders of the Employer
     immediately prior to the Combination owning, immediately thereafter, more
     than sixty-five percent (65%) of the combined voting power of either the
     surviving entity or the entity owning directly or indirectly all of the
     common stock, or its equivalent, of the surviving entity; provided,
     however, that if stockholder approval is not required for such Combination,
     the Change in Control shall occur upon the consummation of such
     Combination.

          4.   The stockholders of the Employer approve a plan of complete
     liquidation of the Employer or an agreement for the sale or disposition by
     the Employer of all or substantially all of the Employer's stock and/or
     assets, or accept a tender offer for substantially all of the Employer's
     stock (or any transaction having a similar effect); provided, however, that
     if stockholder approval is not required for such transaction, the Change in
     Control shall occur upon consummation of such transaction.

     (c)  For purposes of Section 11(b), Baron Entities shall mean Baron Capital
     Group, Inc., BAMCO, Inc., Baron Capital Management, Inc., Baron Asset Fund
     and Ronald Baron.

     12.  Excise Taxes.
          ------------

          (a)  Anything in this Agreement to the contrary notwithstanding, if it
          shall be determined that any payment or distribution to the Employee
          or for the Employee's benefit (whether paid or payable or distributed
          or distributable) pursuant to the terms of this Agreement or otherwise
          (the

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          "Payment") would be subject to the excise tax imposed by section 4999
          of the Internal Revenue Code (the "Excise Tax"), then the Employee
          shall be entitled to receive from Employer an additional payment (the
          "Gross-Up Payment") in an amount such that the net amount of the
          Payment and the Gross-Up Payment retained by the Employee after the
          calculation and deduction of all Excise Taxes (including any interest
          or penalties imposed with respect to such taxes) on the payment and
          all federal, state and local income tax, employment tax and Excise Tax
          (including any interest or penalties imposed with respect to such
          taxes) on the Gross-Up Payment provided for in this Section, and
          taking into account any lost or reduced tax deductions on account of
          the Gross-Up Payment, shall be equal to the Payment;

          (b) All determinations required to be made under this Section,
          including whether and when the Gross-Up Payment is required and the
          amount of such Gross-Up Payment, and the assumptions to be utilized in
          arriving at such determinations shall be made by Accountants which
          Employer shall request provide the Employee and Employer with detailed
          supporting calculations with respect to such Gross-Up Payment at the
          time the Employee is entitled to receive the Payment. For the purposes
          of this Section, the "Accountants" shall mean Employer's independent
          certified public accountants. All fees and expenses of the Accountants
          shall be borne solely by Employer. For the purposes of determining
          whether any of the Payments will be subject to the Excise Tax and the
          amount of such Excise Tax, such Payments will be treated as "parachute
          payments" within the meaning of section 280G of the Code, and all
          "parachute payments" in excess of the "base amount" (as defined under
          section 280G(b)(3) of the Code) shall be treated as subject to the
          excise Tax, unless and except to the extent that in the opinion of the
          Accountants such Payments (in whole or in part) either do not
          constitute "parachute payments" or represent reasonable compensation
          for services actually rendered (within the meaning of section
          280G(b)(4) of the Code) in excess of the "base amount", or such
          "parachute payments" are otherwise not subject to such Excise Tax; for
          purposes of determining the amount of the Gross-Up Payment the
          Employee shall be deemed to pay Federal income taxes at the highest
          applicable marginal rate of Federal income taxation for the calendar
          year in which the Gross-Up Payment is to be made and to pay any
          applicable state and local income taxes at the highest applicable
          marginal rate of taxation for the calendar year in which the Gross-Up
          Payment is to be made, net of the maximum reduction in Federal income
          taxes which could be obtained from the deduction of such state or
          local taxes if paid in such year (determined without regard to
          limitations on deductions based upon the amount of the Employee's
          adjusted gross income); and to have otherwise allowable deductions for
          Federal, state and local income tax purposes at least equal to those
          disallowed because of the inclusion of the Gross-Up Payment in the
          Employee's adjusted gross income. Any Gross-Up Payment with respect to
          any Payment shall be paid by Employer at the time the Employee is
          entitled to receive the Payment. Any determination by the Accountants
          shall be binding upon Employer and the Employee. As a result of
          uncertainty in the application of section 4999 of the Code at the time
          of the initial determination by the Accountants hereunder, it is
          possible that the Gross-Up Payment made will have been an

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          amount less than Employer should have paid pursuant to this Section
          (the "Underpayment"). In the event that Employer exhausts its remedies
          and the Employee is required to make a payment of any Excise Tax, the
          Underpayment shall be promptly paid by Employer to or for the
          Employee's benefit.

     13.  Entire Agreement. This instrument contains the entire agreement of the
          ----------------
parties. It may be changed only by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification, extension, or
discharge is sought. This Agreement shall be governed by the laws of the State
of Maryland, and any disputes arising out of or relating to this Agreement shall
be brought and heard in any court of competent jurisdiction in the State of
Maryland.

     14.  Compensation Committee Approval. Notwithstanding any other provision
          -------------------------------
to the contrary, this Agreement is subject to the approval of the Employer's
Compensation Committee or Board of Directors at its next meeting and shall not
be valid, binding and enforceable prior thereto. Prior to such approval, neither
party hereto shall make any public announcement with respect to this Agreement
or the employment of Employee by Employer.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first set forth above.

                              Employer:

                              CHOICE HOTELS INTERNATIONAL, INC.

                              By: /s/ Michael J. DeSantis
                                  --------------------------------
                                      Michael J. DeSantis
                                      Senior Vice President

                              Employee:

                                   /s/ Wayne Wielgus
                              ------------------------------------
                                       Wayne Wielgus

                                                                               8<PAGE>

                                                                    EXHIBIT 10.1

                  THIRD MODIFICATION AND EXTENSION AGREEMENT

       THIS THIRD MODIFICATION AND EXTENSION AGREEMENT (this "Agreement"),
effective as of the 31st day of October 2000, is by and among UNITED BANK, a
Virginia banking corporation (the "Bank"); HADRON, INC., a New York corporation,
AVENUE TECHNOLOGIES, INC., a Virginia corporation, VAIL RESEARCH AND TECHNOLOGY
CORPORATION, a Virginia corporation, SYCOM SERVICES, INC., a Delaware
corporation, ADVANCED BIOSYSTEMS, INC., a Delaware corporation ("ABI"), and
ENGINEERING & INFORMATION SERVICES, INC., a Virginia corporation (hereinafter
individually and collectively called the "Borrower"); and JON M. STOUT (the
"Guarantor").

                               WITNESSETH THAT:

       WHEREAS, the Bank is the owner and holder of (i) that certain Revolving
Commercial Note dated June 29, 1999, made by the Borrower (other than ABI) and
payable to the order of the Bank, in the original principal amount of One
Million Five Hundred Thousand and no/100 Dollars ($1,500,000.00) and bearing
interest and being payable in accordance with the terms and conditions therein
set forth (the "Revolving Note"), and (ii) that certain Commercial Note dated
June 29, 1999, made by the Borrower (other than ABI) and payable to the order of
the Bank, in the original principal amount of One Million Five Hundred Thousand
and no/100 Dollars ($1,500,000.00) and bearing interest and being payable in
accordance with the terms and conditions therein set forth (collectively, the
"Notes"); and

       WHEREAS, the Notes are secured by, and issued pursuant to the terms of, a
certain Loan and Security Agreement dated June 29, 1999, between the Borrower
(other than ABI) and the Bank (as amended by a certain First Modification and
Extension Agreement dated as of April 12, 2000, and a Second Modification
Agreement dated as of August 23, 2000, the "Loan Agreement"); and

       WHEREAS, pursuant to a Joinder Agreement of even date herewith, ABI
agreed to become unconditionally jointly and severally liable for all
obligations under the Loan Agreement, the Notes and the other Loan Documents (as
defined in the Notes); and

       WHEREAS, as of the effective date hereof, the aggregate principal balance
of the Notes is $________________ and the parties hereto desire to extend the
maturity date of the Revolving Note and to modify the terms of the Loan
Agreement.

       NOW, THEREFORE, for Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

       1. The maturity date of the Revolving Note is hereby extended to November
30, 2001. The interest rate on the Revolving Note is hereby changed, effective
on the date hereof, to the Prime Rate (as defined in the Revolving Note) plus
1.0%.

       2. The Loan Agreement is hereby modified as follows:
<PAGE>

            (a) In Section I(A):

                (i)   by adding the following new definition:

       "APL Receivables" means Eligible Accounts owing from the Applied Physics
     Laboratory of Johns Hopkins University.

                (ii)  by replacing the definition of "Borrowing Base" with the
following:

       "Borrowing Base" means, without duplication, the sum of (i) 90% of the
     Net Unpaid Balance of Eligible Assigned Government Accounts, (ii) 85% of
     the Net Unpaid Balance of Eligible Other Government Accounts, (iii) 80% of
     the Net Unpaid Balance of Eligible Commercial Accounts, not to exceed, at
     any time, $250,000.00, and (iv) 50% of the Net Unpaid Balance of Eligible
     Unbilled Accounts, not to exceed, at any time, $750,000.00. No item of
     Collateral will be included in the Borrowing Base unless the Bank has a
     valid and perfected first priority Lien on it.

                (iii) by adding the words ", other than the APL Receivables" to
the end of the definition of "Eligible Commercial Accounts".

                (iv)  by adding the words "(a) the APL Receivables, and (b)" in
front of "Eligible Accounts" in the definition of "Eligible Other Government
Accounts".

            (b) In Section II(C)(1), by replacing "$625.00" with "$1,000.00".

            (c) In Section VI(A)(1):

                (i)   by replacing the definition of "Debt" with the following:

       "Debt" means all liabilities of the Borrower that would be required to be
     classified as "total liabilities" in accordance with GAAP.

                (ii)  by replacing the definition of "Funded Debt" with the
following:

       "Funded Debt" of any person means at any date, without duplication, (i)
     all obligations of such person for borrowed money, (ii) all obligations of
     such person evidenced by bonds, debentures, notes or other similar
     instruments, (iii) all obligations of such person to pay the deferred
     purchase price of property or services (other than trade accounts payable
     arising in the ordinary course of business), (iv) all obligations of such
     person as lessee under Capital Leases, (v) all obligations of such person
     to purchase securities or other property which arise out of or in
     connection with the sale of the same or substantially similar securities or
     property, (vi) all non-contingent obligations of such person to reimburse
     any bank or

                                      -2-
<PAGE>

     other person in respect of amounts paid under a letter of credit or similar
     instrument, (vii) all obligations of others secured by a Lien on any asset
     of such person, whether or not such obligation is assumed by such person
     and (viii) all obligations of others Guaranteed by such person.

            (d) In Section VI(A)(3), by adding the words "Beginning December 31,
2000" to the beginning of the subsection.

            (e) In Section VI(A)(4), by replacing "$200,000.00" with
"$150,000.00".

            (f) In Section VI(A)(5), by replacing "$1,200,000.00" with
"$1,750,000.00".

            (g) In Section VI(C):

                (i)  by replacing subsection (1)(a) with the following:

       (a) as soon as available and in any event within 120 days after the end
     of each fiscal year of the Borrower, (i) a copy of the Borrower's most
     recent report to the Securities and Exchange Commission on Form 10-K, (ii)
     a copy of the Borrower's most recent annual report, (iii) an annual
     financial statement and cash flow projections of the Borrower and its
     Consolidated Subsidiaries, and (iv) a consolidated and consolidating
     balance sheet of the Borrower and its Consolidated Subsidiaries as of the
     end of such fiscal year and the related consolidated and consolidating
     financial statements for such fiscal year, setting forth in each case in
     comparative form the figures for the previous fiscal year, all in
     reasonable detail and accompanied by an opinion thereon by an independent
     public accountant satisfactory to the Bank, which opinion shall state that
     such financial statements present fairly the financial position of the
     Borrower and its Consolidated Subsidiaries as of the date of such financial
     statements and the results of its operations for the period covered by such
     financial statements in conformity with GAAP applied on a consistent basis
     (except for changes in the application of which such accountants concur)
     and shall not contain any "going concern" or like qualification or
     exception or qualifications arising out of the scope of the audit;

                (ii) by replacing subsection (1)(b) with the following:

       (b) (i) as soon as available and in any event within 45 days after the
     end of each of the first three quarters of each fiscal year of the
     Borrower, a copy of the Borrower's most recent report to the Securities and
     Exchange Commission on Form 10-Q; and (ii) as soon as available and in any
     event within 45 days after the end of each quarter of each fiscal year of
     the Borrower, a current contract back-log report;

                                      -3-
<PAGE>

                (iii)  by replacing subsection (1)(c) with the following:

       (c) as soon as available and in any event within 30 days after the end of
     each month, (i) a consolidated and consolidating balance sheet of the
     Borrower and its Consolidated Subsidiaries and the related consolidated and
     consolidating financial statements for such month and for the portion of
     the Borrower's and such Subsidiaries' fiscal year ended at the end of such
     month, all certified (subject to normal year-end audit adjustments) as
     complete and correct by the chief financial officer or chief accounting
     officer of the Borrower, (ii) a certificate of the chief financial officer
     or chief accounting officer of the Borrower, (x) setting forth in
     reasonable detail the calculations required to establish whether the
     Borrower was in compliance with the requirements of paragraphs (2)-(5),
     inclusive, of subsection (A), above, on the date of such financial
     statements, (y) stating whether there exists on the date of such
     certificate any Default and, if any Default then exists, setting forth the
     details thereof and the action which the Borrower is taking or proposes to
     take with respect thereto and (z) stating whether, since the date of the
     most recent previous delivery of financial statements pursuant to
     subparagraph (a) or (b) of this paragraph (1) there has been any material
     adverse change in the business, financial position, results of operations
     or prospects of the Borrower, and, if so, the nature of such material
     adverse change;

       3.   Contemporaneously with the execution and delivery of this Agreement,
the Borrower shall execute and deliver to the Bank a replacement Revolving Note
which reflects the changes described in Paragraph 1 hereof and is otherwise on
the Bank's for therefor and appropriately completed. From and after the
effective date hereof, references in the Loan Agreement to the "Revolving Note"
shall mean said replacement note.

       4.   The Borrower and the Guarantor hereby acknowledge and agree that, as
of the effective date hereof, the aggregate unpaid principal balance of the
Notes is $________________ and that there are no set-offs or defenses against
either of the Notes or the Loan Agreement.

       5.   The Guarantor joins in this Agreement for the purpose of signifying
his consent hereto and acknowledges and agrees that there are no set-offs or
defenses against his guaranty and that his guaranty of the Notes shall apply to
the Notes as modified hereby.

       6.   The parties to this Agreement do not intend that this Agreement be
construed as a novation of the Notes or the Loan Agreement.

       7.   Except as hereby expressly extended and modified, the Loan Agreement
shall otherwise be unchanged, shall remain in full force and effect, and is
hereby expressly approved, ratified and confirmed.

                                      -4-
<PAGE>

       8.   This Agreement shall be governed in all respects by the laws of the
Commonwealth of Virginia and shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and assigns.

                                      -5-
<PAGE>

WITNESS the following signatures and seals.

                              HADRON, INC.                   [SEAL]

                              By: ____________________________________
                                    Name:
                                    Title:

                              AVENUE TECHNOLOGIES, INC.      [SEAL]

                              By: ____________________________________
                                    Name:
                                    Title:

                              VAIL RESEARCH AND TECHNOLOGY CORPORATION
                                                             [SEAL]

                              By: ____________________________________
                                    Name:
                                    Title:

                              SYCOM SERVICES, INC.           [SEAL]

                              By: ____________________________________
                                    Name:
                                    Title:

                              ENGINEERING & INFORMATION SERVICES,
                              INC.  [SEAL]

                              By: ____________________________________
                                    Name:
                                    Title:

                                      -6-
<PAGE>

                              ADVANCED BIOSYSTEMS, INC.                 [SEAL]

                              By: ____________________________________
                                    Name:
                                    Title:

                              __________________________________        [SEAL]
                              JON M. STOUT

                              UNITED BANK                               [SEAL]

                              By: ____________________________________
                                    Louise M. Wager,
                                    Senior Vice President

                                      -7-

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