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                                                                     Exhibit 4.7

                              CONSULTING AGREEMENT

PARTIES

          This agreement is entered into as of April 1, 2002, by and between
Rotary Power International, Inc., a Delaware corporation with its principal
office at P.O. Box 128, Wood-Ridge, New Jersey 07075-0128 (the "Company"), and
Philip Spies, an individual residing at 5 Argyle Court, Livingston, New Jersey.

ENGAGEMENT

          The Company hereby agrees to engage the Consultant, and the
Consultant, in consideration of such engagement, hereby agrees to provide
consulting services as further described in Section 3 below.

STATEMENT OF SERVICES

     3.1.  Consultant agrees that during the term of this Agreement, and any
           renewal period thereof, he will provide consulting services to the
           Company in connection with identifying potential plant sites in
           Eastern Canada and United States , identifying vendors and suppliers
           in Canada, preparation of various submissions, applications and
           reports to Provincial and Federal Governments, acting as liaison,
           where required, with all levels of Governments in Canada and United
           States, assisting in preparation of Business Plan for submission to
           Provincial and Federal Governments and any other areas where his
           expertise is considered to be of value.

           In addition, Consultant will provide services to develop legislative
           initiatives, and related government marketing plans, on programs of
           interest to the Company and will provide legislative liaison and
           program management support as necessary to help carry out the
           programs of the Company.

           Notwithstanding anything in this Agreement to the contrary, the
           consulting services to be rendered by Consultant in accordance with
           this Agreement shall not include any consulting services in
           connection with the offer or sale of the Company's securities in a
           capital raising transaction and do not, and will not, directly or
           indirectly, promote or maintain a market for the Company's
           securities.

     3.2.  Service provided by Consultant shall be as an independent contractor.

The term of this Agreement shall be from the date of this Agreement to December
31, 2002.

COMPENSATION

     4.1.  In consideration of the consulting services performed hereunder, the
           Company agrees to pay Consultant at rate of U.S. $50.00 per hour on
           and as need bases, with a maximum of $2,000 per month after which the
           Consultant will obtain approval from the Company to bill more time.

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     4.2.  The Company agrees to reimburse Consultant for all actual business
           expenses as may be required in connection with the performance of
           services.

     4.3.  The Consultant will submit invoices semimonthly for consulting
           services and expenses incurred. Expensed billed to the Company shall
           be accompanied by supporting documentation. The Company will make
           payment of these invoices from Consultant no later than 15 days from
           delivery of the invoice by the Consultant.

     4.4.  The Company and Consultant may at any time agree that the Company can
           issue shares of its common stock in satisfaction of any amounts that
           may hereafter become due and owing to the Consultant in accordance
           with this Agreement. The number of shares to be issued by the Company
           shall be agreed upon with Consultant in writing and any such shares,
           when issued, shall be registered under the Securities Act of 1933, as
           amended, pursuant to a registration statement filed by the Company
           with the Securities and Exchange Commission on Form S-8 (or, if Form
           S-8 is not then available, such other form of registration statement
           then available for the registration of such shares). Any and all
           costs of filing such registration statement for such shares shall be
           the responsibility of the Company.

LIMITATIONS

     5.1.  Nothing in this Agreement shall grant to either party the right to
           make commitments of any kind for or on behalf of the other party
           without prior written consent of the other party.

     5.2.  Consultant represents that there is no conflict of interest between
           his performance in a consulting capacity under this Agreement and his
           relationship with other clients. If at any time in the future it is
           believed that there is a potential conflict of interest, Consultant
           will promptly so advise and the parties will mutually agree in
           writing on the resolution of this potential conflict.

     5.3.  Either party may terminate this Agreement by giving thirty (30) days
           written notice of such termination.

NON-COMPETITION

          For the term of this Agreement, Consultant will not directly or
indirectly, in any capacity, without prior written approval by the Company,
engage in or render services (including, without limitation, research,
development, marketing or sales) to, or have a financial interest in, any
person, Consultant, corporation or other entity engaged in the rotary engine
business.

EXEMPTION FROM COMPANY BENEFIT PLANS, POLICIES AND PROCEDURES

          The Consultant is not an employee of the Company and is, therefore,
not entitled to coverage under any of the benefit plans of the Company except as
agreed in writing by Consultant and the Company. The Consultant shall not be
bound by the policies and procedures of the Company.

FACILITIES AND SUPPORT

          The Company shall provide Consultant with office space, equipment and
support, including secretarial help, reasonably necessary to perform the tasks
which may be performed on the premises of the Company. The Consultant is
responsible to provide facilities and equipment necessary outside the premises
of the

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Company.

CONFIDENTIAL INFORMATION

          Consultant will not disclose any trade secrets or confidential
information identified as such by the Company to any person, Consultant,
corporation, association, or other entity for any reason or purpose whatsoever,
nor shall Consultant make use of any such trade secrets or confidential
information for his own purpose or for the benefit of any person, Consultant,
corporation, or other entity, except as authorized in writing by the Company.
Consultant agrees to deliver to the Company upon termination of this Agreement,
or at any other time the Company may request, any proprietary or confidential
material supplied to the Consultant during the term of this Agreement and which
the Company has previously identified as such, relating to the business of the
Company which he may then possess or have under his control. However, there
shall be no restriction on disclosure or use of information which is publicly
known other than as a result of a breach of this Agreement, or which becomes
legally available at any time from a third party without restriction.
Confidential information obtained while an employee of the Company shall be
specifically covered by this clause.

PROPERTY OF COMPANY

          All ideas, inventions, discoveries, proprietary information, know-how,
processes and other developments and, more specifically, improvements to
existing inventions conceived by the Consultant that were developed in relation
to performance of the Consultant's assignments for the Company, shall be the
property of the Company. Consultant shall execute all documents, including
patent applications and assignments, required by the Company to establish the
Company's rights under this paragraph.

MISCELLANEOUS

          NOTICES: All notices pertaining to this Agreement shall be in writing
and shall be transmitted either by personal hand delivery or through the
facilities of the United States Postal Service, certified or registered mail,
return receipt requested. The addresses set forth in the first paragraph of this
Agreement for the respective parties shall be the places where notices shall be
sent, unless written notice of a change of address is given. Notices shall be
deemed to have been given at the time of delivery if transmission is by personal
hand delivery or, if mail, forty-eight (48) hours after deposited in a regularly
maintained receptacle of the United States Postal Service for mailing as
aforesaid.

          CAPTION HEADINGS: Captions at the beginning of each numbered paragraph
of this Agreement are solely for the convenience of the parties and shall not be
deemed part of the context of this Agreement.

          ENTIRE AGREEMENT: This Agreement contains the entire Agreement between
the parties hereto, and supersedes any written or oral agreement between the
parties concerning the subject matter contained herein. There are no
representations, agreements, arrangement or understandings, oral or written,
between or among the parties hereto, relating to the subject matter contained in
this Agreement, which are not fully expressed herein.

          AMENDMENT: This Agreement may only be amended by the written consent
of both parties at the time of such amendment.

          GOVERNING LAW: The validity, interpretation, construction and
performance of this Agreement shall be controlled by and construed under the
laws of the State of New Jersey. In the event of any litigation arising out of
any dispute in connection with this Agreement, the Company and Consultant hereby
consent to the jurisdiction of the New Jersey courts.

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          COUNTERPARTS: This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but such counterparts, when taken
together, shall constitute but one agreement.

          SEVERABILITY: In the event any provision of this Agreement is held to
be invalid, void or unenforceable, the rest of the provisions shall,
nonetheless, remain in full force and effect and shall in no way be affected,
impaired or invalidated.

RENEWAL

          The parties may renew this Agreement at any time by written
instruments signed by the parties. It is anticipated that each such renewal
shall be upon the same terms and conditions as herein provided, except for
necessary changes in dates, scope of work, or total compensation.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

PHILIP SPIES                     ROTARY POWER INTERNATIONAL, INC.

By: /s/ Philip Spies             By: /s/ Ronald G. McKeown
    ------------------------         ---------------------------------------
                                     Name:  Ronald G. McKeown
                                     Title:  President & Chief Executive Officer

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Exhibit 10.1    
  

 
 

EMPLOYMENT AGREEMENT    
  

        EMPLOYMENT AGREEMENT, dated as of May 17, 2002 between RWD TECHNOLOGIES, INC., a Maryland corporation (the "Corporation"), and David Yager (the
"Executive"). 

W I T N E S S E T H:  

        The Executive is the President of the Corporation's Latitude360 operating group and possesses an intimate knowledge of the business and affairs of the
Corporation. The Corporation recognizes the Executive's contribution to the growth and success of the Corporation and desires to assure to the Corporation the continued benefits of the Executive's
expertise and knowledge. The Executive, in turn, desires to engage in and/or to continue to engage in full-time employment with the Corporation on the terms provided herein. 

        Accordingly,
in consideration of the mutual covenants and representations contained herein and the mutual benefits derived herefrom, the parties hereto agree as follows: 

 
 

ARTICLE I    
    
    FULL-TIME EMPLOYMENT OF EXECUTIVE    
  

        1.1    DUTIES AND STATUS.    

        (a)  The
Corporation hereby engages the Executive as a full-time executive employee for the period specified in Section 4.1 (the "Employment Period"), and
the Executive accepts such employment, on the terms and conditions set forth in this Agreement. Throughout the Employment Period, the Executive shall exercise such authority and perform such executive
duties as are commensurate with the authority being exercised and duties being performed by the Executive for the Corporation immediately prior to the date of this Agreement. In addition, throughout
the Employment Period, the Executive shall exercise such authority and perform such executive duties as are commensurate with the authority and duties of a group president of the Corporation. As may
be reasonably necessary to meet the changing business needs of the Corporation, the Executive shall, in his discretion, assign the duties being performed by executives of the Corporation at any time
during the Employment Period to other executives of the Corporation. 

        (b)  The
Executive shall (i) devote his full time and efforts to the business of the Corporation and accept such additional office or offices to which he may be
elected by the Board of Directors of the Corporation, provided that the performance of the duties of such office or offices shall be consistent with the scope of the duties provided for in
Section 1.1(a); and (ii) not engage in consulting work or any trade or business for his own account or for or on behalf of any other person, firm or corporation which work, trade or
business competes, conflicts or interferes with the performance of his duties hereunder in any way or in any way conflicts with or undermines the Corporation's relationships with its clients or other
employees. Notwithstanding the above, the Executive shall not be prohibited by the terms of this Section 1.1(b) from devoting time and efforts to charitable organizations or from serving on a
Board of Directors of any organization upon consent by the Board of Directors of the Corporation, which consent shall not be withheld unreasonably, as long as it does not interfere with the
Executive's duties provided for in Section 1.1(a). 

        (c)  The
Executive shall be required to perform the services and duties provided for in Section 1.1(a) only at one of the Corporation's offices in Maryland or at such
other locations reasonably acceptable to the Executive. Throughout the Employment Period, the Executive shall be 

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entitled to vacation, leave of absence, and leave for illness or temporary disability in accordance with the policies of the Corporation in effect from time to time during the term of this Agreement,
which shall not be less favorable than those in effect at the date of this Agreement; and any leave on account of illness or temporary disability which is short of a Disability as defined in
Section 4.3 hereof shall not constitute a breach by the Executive of his agreements hereunder whereas leave on account of Disability as defined in Section 4.3 hereof shall, to the extent
not prohibited by the Americans with Disabilities Act, be deemed to result in a termination of the Employment Period under the applicable provisions of this Agreement. 

        1.2    COMPENSATION AND GENERAL BENEFITS.    As compensation for his services under this Agreement, the Executive
shall be compensated as follows: 

        (a)  The
Corporation shall pay to the Executive an annual base salary which is not less than the greater of (i) his rate of annual base salary from the Corporation
immediately prior to the date of this Agreement, or (ii) any subsequently established higher annual base salary. Such salary shall be payable in periodic equal installments which are no less
frequent than the periodic installments relating to the Executive's salary immediately prior to the date of this Agreement. Such salary shall be subject to normal periodic review at least annually for
increases based on the salary policies of the Corporation and the Executive's contributions to the enterprise. 

        (b)  Throughout
the Employment Period, the Executive shall be entitled to participate in such pension, profit sharing, stock incentive, bonus or incentive compensation, stock
option, stock purchase, incentive, group and individual disability, group and individual life, survivor income, sickness, accident, dental, medical and health benefits and other plans of the
Corporation which are in effect immediately prior to the date of this Agreement and in any successor or additional benefit programs, plans or arrangements of the Corporation which may be established
by the Corporation, as and to the extent any such benefit programs, plans and arrangements are or may from time to time be in effect, as determined by the Corporation and the terms hereof and as and
to the extent that the Executive is eligible to participate in such plans under the terms of such plans. In the event the terms of such benefit programs, plans and arrangements contradict the terms of
this Agreement, the provisions of this Agreement shall control. Throughout the Employment Period, the Executive shall also be entitled to the receipt of any personal benefits from the Corporation at
the Corporation's expense which he has heretofore received from the Corporation. The group and individual disability programs, monthly auto allowance, and split dollar life insurance coverage provided
for the Corporation's executive officers are continually being reviewed and the Executive will be entitled to come under the programs as revised in the event revisions are made which are approved by
the Corporation's Board of Directors. The term "benefit programs, plans, or arrangements of the Corporation" as used in this Agreement refers to the matters in this Section 1.2(b). For purposes
of this Agreement, "tax benefits" include, among other things, the benefits of non-taxable benefits, tax deferral, tax-free accumulation, special distribution taxation
treatment and the like. 

 
 

ARTICLE II    
    
    COMPETITION; CONFIDENTIAL INFORMATION; PUBLIC STATEMENTS    
  

        2.1    COMPETITION; CONFIDENTIAL INFORMATION.    The Executive and the Corporation recognize that, due to the nature
of his prior association with the Corporation and of his engagement hereunder, and the relationship of the Executive to the Corporation, both in the past as an executive and in the future hereunder,
the Executive has had access to and has acquired, will have access to and will acquire, and has assisted in and may assist in developing, confidential and proprietary information relating to the
business and operations of the Corporation and its affiliates, including, without limiting
the generality of the foregoing, information with respect to the Corporation's present and prospective systems, customers, agents, partnerships, accounts, deposits, loans and sales and marketing
activities. 

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The Executive acknowledges that such information has been and will continue to be of central importance to the business of the Corporation and its affiliates and that disclosure of such information
or its use by others could cause substantial loss to the Corporation. The Executive and the Corporation also recognize that an important part of the Executive's duties will be to develop good will for
the Corporation and its affiliates through his personal contact with customers, agents and others having business relationships with the Corporation and its affiliates, and that there is a danger that
this good will, a proprietary asset of the Corporation and its affiliates, may follow the Executive if and when his relationship with the Corporation is terminated. The Executive accordingly agrees as
follows: 

        (a)  The
Executive agrees that during the length of this Agreement and for a period of twelve months thereafter, the Executive will not (for his benefit or for the benefit of
anyone other than the Corporation or any of its affiliates) directly or indirectly solicit, or in any way contract with, any Client (as defined below in this clause (a)) to perform any service
which is the same or materially similar to services being, or within the twelve months prior to the termination of this Agreement having been, provided on behalf of the Corporation or one of its
affiliates, in projects of the Corporation in which the Executive materially participated and/or for which the Executive directly or indirectly supervised. A "Client" is defined as any person or
entity who, at the time of the termination of this Agreement or within twelve months prior thereto, generated revenue of One Million Dollars ($1,000,000) or more for the Corporation or any of its
affiliates. For purposes of this Section 2.1, the term "affiliates" shall be defined as any entity that controls, or is controlled by or is under common control with the Corporation, but shall
exclude those entities that fall within this definition after termination of the Executive's employment pursuant to Section 4.1(b) hereof. 

        (b)  The
Executive agrees that during the length of this Agreement and for a period of twelve months thereafter, the Executive will not (for his benefit or for the benefit of
anyone other than the Corporation or any of its affiliates) directly or indirectly solicit, or in any way contract with, any Potential Client (as defined below in this clause (b)) to perform
any service which is the same or materially similar to services as those which are or were being proposed to be offered to said Potential Client by the Corporation or one of its affiliates. A
"Potential Client" is defined as any person or entity who was being, at the time of the termination of this Agreement, or, within the twelve months prior thereto had been, meaningfully solicited to
become a client of the Corporation or one of its affiliates by the Executive or other persons at or above the level of project manager for whom the Executive had direct or indirect supervisory
responsibility. In the event that the Executive violates the provisions of this subparagraph without knowledge of such violation, upon notice from the Corporation informing him of the nature of such
violation, the Executive shall immediately terminate any actions which constitute such violation; and, provided the violation ceases immediately upon receipt of written notice to the Executive of such
violation, the Executive will not be deemed in default of this provision, and no further action shall be taken against the Executive. 

        (c)  The
Executive agrees that during the length of this Agreement and for a period of twelve months thereafter, the Executive will not (for his benefit or for the benefit of
anyone other than the Corporation or any of its affiliates) directly or indirectly engage in or conduct any business which directly competes with any aspect of the business of the Corporation or any
of its affiliates.
Notwithstanding the foregoing, nothing in this Agreement shall prohibit the Executive from working for a subsequent employer that, in some aspects of its business, may compete with the Corporation,
provided that the Executive is not directly or indirectly involved in any of the aspects of such subsequent employer's business that competes with the Corporation. 

        (d)  Nothing
in this Article II shall be construed to prevent the Executive from owning, as an investment, not more than 1% of a class of equity securities issued by
any issuer and publicly traded and registered under section 12 of the Securities Exchange Act of 1934, of a company that, in some aspects of its business, may compete with the Corporation. 

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        2.2    TRADE SECRETS.    The Executive will keep confidential any trade secrets or confidential or proprietary
information of the Corporation and its affiliates which are now known to him or which hereafter may become known to him as a result of his employment or association with the Corporation and shall not
at any time directly or indirectly disclose any such information to any person, firm or corporation, or use the same in any way other than in connection with the business of the Corporation or their
affiliates during and at all times after the date of this Agreement. For purposes of this Agreement, "trade secrets or confidential or proprietary information" means information of the Corporation or
any of its affiliates which has a significant business purpose and is not known or generally available from sources outside the Corporation or any of its affiliates or typical of industry practice. 

        2.3    NON-SOLICITATION.    The Executive will not directly or indirectly interfere with, solicit, employ
or otherwise engage in employment for himself, his benefit, or for anyone other than the Corporation, any individuals employed by the Corporation or any of its affiliates at the time of the
termination of this Agreement or at any time within one year prior to said termination for a period of 24 months from the date of such termination. 

        2.4    PUBLIC STATEMENTS.    The Executive and the Corporation recognize that, due to the relationship of the
Executive and the Corporation and such relationship's susceptibility to public comment which may be injurious to the Executive or the Corporation, or both, it is necessary for the protection of both
parties that neither party make, and both agree not to make (except as may be required by law), any disparaging public statements to any third party concerning the other party, the Corporation's
clients or the termination of the Executive's employment hereunder and the arrangements made pursuant thereto, without the express prior approval of the other party. 

 
 

ARTICLE III    
    
    CORPORATION'S REMEDIES FOR BREACH    
  

        Notwithstanding the provisions of Article X hereof, it is recognized that damages in the event of breach of Article II by the Executive would be
difficult, if not impossible, to ascertain, and it is therefore agreed that the Corporation, in addition to and without limiting any other remedy or right they may have, shall have the right to an
injunction or other equitable relief, in any court of competent jurisdiction, enjoining any such breach. The existence of this right shall not preclude any other rights and remedies at law or in
equity which the Corporation may have. 

 
 

ARTICLE IV    
    
    EMPLOYMENT PERIOD    
  

        4.1    DURATION.    

        (a)  Subject
to early termination in accordance with Section 4.1(b) below, the period of time for which the Executive is employed under this Agreement shall commence
on the effective date of this Agreement and continue thereafter until terminated (the "Employment Period"). 

        (b)  The
Executive's employment may be terminated (i) voluntarily after the Executive reaches 62 years of age, which is the normal retirement age under the
Corporation's employee benefit policies as in effect on the date of this Agreement ("Retirement"); (ii) upon Involuntary Termination (as defined in Section 4.3(a) ("Involuntary
Termination"); (iii) upon the death of the Executive ("Death"); (iv) upon the Disability of the Executive (as defined in Section 4.3(c)); (v) when the Executive resigns
other than in connection with an Involuntary Termination ("Voluntary Resignation"); or (vi) upon Termination for Cause (as defined in Section 4.3(b)). 

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        4.2    PAYMENTS AND OTHER BENEFITS UPON TERMINATION OF EMPLOYMENT:    Upon termination of the Executive's employment
in accordance with Section 4.1(b) above, the Corporation and the Executive (or the Executive's guardian, personal representative, estate, or other such successor, as the case may be) agree to
execute and deliver mutual releases in a form reasonably acceptable to counsel for the Corporation and the Executive. Upon termination of the Executive's employment in accordance with
section 4.1(b) above, the Executive and the Corporation agree that the Executive may be entitled to certain payments ("Severance Payment") as set forth below in this Section 4.2. All
such severance payments shall be made in equal monthly installments over the applicable time period. 

        (a)  In
the event of the Executive's Involuntary Termination, the Corporation shall pay the Executive a Severance Payment equal to the product of (i) one hundred
percent (100%) of the Executive's monthly salary in effect at the time the Executive's employment is terminated multiplied by (ii) the number of months equal to either
(a) 12 months or (b) the number of years the Executive has been employed by the Corporation, whichever is greater. In addition to the foregoing Severance Payment, (i) the
Corporation agrees to cause the Compensation Committee of the Board of Directors to cause all option agreements between the Corporation and the Executive pursuant to any of the Corporation's stock
option plans which may be in effect from time to time to provide that the options granted under those agreements shall automatically become completely vested upon the effective date of the Executive's
Involuntary Termination, and (ii) for a period of 12 months following the Executive's Involuntary Termination, the Executive shall continue to be entitled to all benefits and service
credits for benefits under all of the Corporation's benefit programs, plans or arrangements, which were in effect on the date of the Executive termination, including, the payment of the premium for
the split dollar life insurance policy in effect for the Executive's benefit, on the same terms as if the Executive were still employed during such 12 month period. 

        (b)  In
the event of the Executive's Retirement, or Termination for Cause, the Executive and his dependents, beneficiaries, personal representative and estate, as the case
may be, will receive only such benefits as they may be entitled to under the terms of the benefits programs, plans and arrangements of the Corporation described in Section 1.2(b) which provide
benefits upon the Executive's Retirement or Termination for Cause; provided, however, that the Corporation may, upon written notice to the Executive within thirty days of the effective date of the
Executive's Retirement or Termination for Cause, and in the Corporation's sole discretion, elect to pay the Executive a Severance Payment equal to the product of (i) one hundred percent (100%)
of the Executive's monthly salary in effect at the time the Executive's employment is terminated multiplied by (ii) the number of months equal to either (a) 12 months or
(b) the number of years the Executive has been employed by the Corporation, whichever is greater, in exchange for the Executive's agreement to be bound by the provisions of Section 2.1
of this Agreement.. In the event the Corporation declines to make such election, the Executive shall not be bound by the provisions of Section 2.1 of this Agreement. 

        (c)  In
the event of the Executive's Voluntary Termination, the Corporation shall pay the Executive a Severance Payment equal to one hundred percent (100%) of the Executive's
monthly salary in effect at the time the Executive's employment is terminated multiplied by 12 months. In addition to the foregoing Severance Payment, for a period of 12 months following
the Executive's Voluntary Termination, the Executive shall continue to be entitled to all benefits and service credits for benefits under all of the Corporation's benefit programs, plans or
arrangements, which were in effect on the date of the Executive's termination, including, the payment of the premium for the split dollar life insurance policy in effect for the Executive's benefit,
on the same terms as if the Executive were still employed during such 12 month period. 

        If
the Executive voluntarily terminates this Agreement he must provide ninety days' advance written notice to the Corporation of such voluntary termination. The Corporation may, in its
sole discretion, elect to release the Executive from his duties either immediately or at any time during the 

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ninety day notice period upon payment of the amount owed pursuant to the first paragraph of this Section 4.2(c). 

        (d)  In
the event of the Executive's Disability, the Corporation shall (i) pay the Executive an amount equal to twelve month's salary at the rate and as required by
Section 1.2(a) and in effect immediately prior to the date of disability; provided, however, that such payments shall be offset by any disability insurance payments made to the Executive during
such twelve month period, and (ii) cause the Executive, and his dependents, beneficiaries, guardians and estate, as the case may be, to receive such benefits as they may be entitled under the
terms of the benefit programs, plans, and arrangements described in Section 1.2(b) which provide benefits upon the Executive's Disability. Such payment shall constitute a "Severance Payment"
for purposes of Section 4.2 of this Agreement. 

        (e)  The
Executive shall not be required to mitigate the amount of any payment provided for in this Section 4.2 by seeking employment or otherwise, nor shall the
amount of any payment provided for in this Section 4.2 be reduced by any compensation or remuneration earned by the Executive as the result of employment by another employer, or
self-employment, or as a partner, after the date of termination or otherwise. 

        (f)    In
the event of a termination of the Executive's employment pursuant to Section 4.2 of this Agreement for any reason, the Executive shall continue to be entitled
to indemnification by the Corporation from liability arising from the Executive's acts or failures to act during the Employment Period to the same extent and under the same circumstances as provided
to the Executive by the Corporation's charter, by-laws, contracts and other arrangements, including provisions of applicable law, on the day immediately preceding said termination. 

        4.3    DEFINITIONS.    The following words shall have the specified meanings when used in the Sections specified: 

        (a)  "Involuntary
Termination" shall have occurred (i) upon resignation of the Executive due to a significant change in the nature or scope of his authorities or
duties from those contemplated in Section 1.1, a significant reduction in total compensation from that provided in Section 1.2, under circumstances constituting a constructive
termination, or the breach by the Corporation of any other provision of this Agreement; or (ii) when the Corporation gives written notice of termination to the Executive for any reason other
than in connection with a Termination for Cause; provided, however, the Corporation shall be required to provide the Executive with at least thirty (30) days notice of such
termination during which notice period the Corporation may in its discretion reduce the duties of the Executive. 

        (b)  "Termination
for Cause" shall have occurred when the Corporation discharges the Executive due to the Executive's (i) fraud, misappropriation or intentional
material damage to the property or business of the Corporation; (ii) commission of a felony; (iii) continuance of either willful and repeated failure or grossly negligent and repeated
failure by the Executive to perform his duties in compliance with this Agreement after written notice to the Executive by the Board of Directors of the Corporation specifying such failure and a
reasonable opportunity to cure such failure, provided that such "Cause" shall have been found to exist by a majority of those members of the Board of Directors of the Corporation who are not serving
as designees of a person having an interest in excess of 25% of the outstanding stock of the Corporation after at least 10 days' written notice to the Executive specifying the Cause proposed to
be claimed and after an opportunity for the Executive to be heard at meetings of such Board of Directors; or (iv) a violation of Article II. 

        (c)  "Disability"
means the inability of the Executive, due to a physical or mental disability, to perform the essential functions of his position, with or without reasonable
accommodation, for a period of at least 90 days. A determination of disability shall be made by a physician satisfactory to both the Executive and the Corporation, provided that if the
Executive and the Corporation do not agree on a 

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physician, the Executive and the Corporation shall each select a physician and these two together shall select a third physician, whose determination as to disability shall be binding on all parties. 

 
 

ARTICLE V    
    
    CHANGE IN CONTROL    
  

        5.1    TERMINATION IN CONNECTION WITH CHANGE IN CONTROL.    

        (a)  If,
during the term of this Agreement, there is a "Change in Control" of the Corporation and if within one year of such Change in Control there is a Voluntary
Termination or Involuntary Termination of the Executive's employment under this Agreement (unless such termination occurs by virtue of Retirement, Disability or Death), as consideration for services
previously rendered to the Corporation, the Executive will be entitled to receive a lump sum cash payment equal to the monthly compensation then paid by the Corporation to the Executive multiplied by
12 months. In addition to the foregoing lump sum payment, (i) the Corporation agrees to cause the Compensation Committee of the Board of Directors to cause all option agreements between
the Corporation and the Executive pursuant to any
of the Corporation's stock option plans which may be in effect from time to time to provide that the options granted under those agreements shall automatically become completely vested upon the
effective date of the Executive's termination, and (ii) for a period of 12 months following the Executive's termination, the Executive shall continue to be entitled to all benefits and
service credits for benefits under all of the Corporation's benefit programs, plans or arrangements, which were in effect on the date of the Executive termination, including, the payment of the
premium for the split dollar life insurance policy in effect for the Executive's benefit, on the same terms as if the Executive were still employed during such 12 month period. If, during the
term of this Agreement, there is a "Change in Control" of the Corporation and the Executive is Involuntarily Terminated within six months of the effective date of the Change of Control, the Executive
shall be entitled to at least six month's notice of such Involuntary Termination. The amount of any payment hereunder shall not be reduced by any compensation which the Executive may receive from
other employment with another employer after termination of his employment with the Corporation. 

        (b)  Unless
otherwise instructed in writing by the Executive prior to any Change of Control, the Corporation agrees to cause the Compensation Committee of the Board of
Directors to cause all option agreements between the Corporation and the Executive pursuant to any of the Corporation's stock option plans which may be in effect from time to time to provide that the
options granted under those agreements shall automatically become completely vested no later than immediately prior to any Change of Control. 

        5.2    DEFINITIONS.    For purposes of this Agreement, a "Change in Control" of the Corporation, shall be deemed to
have occurred if (i) both (A) Dr. Robert W. Deutsch together with his affiliates (collectively, "Deutsch") are the beneficial owners of less than 25% of the combined voting
securities of the Corporation and (B)(1) any person, entity or group of persons or entities acting in concert other than Dr. Robert W. Deutsch together with his
affiliates (collectively, a "Person") becomes or become the beneficial owners of 25% or more of the combined voting securities of the Corporation or (2) any Person holds revocable or
irrevocable proxies entitling them to vote 25% or more of the then outstanding shares of the Corporation's voting securities (other than the persons named as proxies in any Proxy Statement prepared by
management of the Corporation in connection with an annual or special meeting of stockholders called by an officer or the Board of Directors of the Corporation); (ii) a merger, sale of all or
substantially all the assets of the Corporation, share exchange, consolidation or other business combination (as defined in the Maryland General Corporation Law) of the Corporation and any other
Person, as a result of which the Corporation's Common Stock becomes exchangeable for other securities or property or cash, or (iii) if a majority of the members of the Board of Directors is
replaced during any 12 month period during the Employment Period but only if the 

7

 

directors who replace such majority have not been elected either by the remaining members of the Board of Directors or by the stockholders of the Corporation. 

        5.3    PARACHUTE PAYMENTS.    In the event of Change in Control of the Corporation which the Executive, in his
capacity as a member of the Board of Directors of the Corporation, voted in favor of, or otherwise consented to in writing, and notwithstanding any other agreement between the Executive and the
Corporation or any formal or informal plan or other arrangement heretofore or hereafter adopted by the Corporation for the direct or indirect provision of compensation by the Corporation (including
groups of classes of participants or beneficiaries of which the Executive is a member),
whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Executive (a "Benefit Plan"), the Executive shall not have any right to receive any payment or
other benefit under this Agreement or any Benefit Plan if, but only to the extent, such payment or benefit, taking into account all other payments or benefits to or for the Executive under this
Agreement and all Benefit Plans, would cause any payment to the Executive under this Agreement to be considered a "parachute payment" within the meaning of Section 280G(b)(2) of the Internal
Revenue Code as then in effect (a "Parachute Payment"). In the event any such payment or other benefit would cause any payment to the Executive to be considered such a "parachute payment,"
(i) the amount of any such payment or benefit shall be reduced to the highest amount which may be paid by the Corporation without such payment or benefit being considered such a "parachute
payment," and (ii) the Executive shall have the right, in his sole discretion, to designate those payments or benefits which shall be reduced or eliminated in order to avoid any amount thereof
considered such a "parachute payment." 

 
 

ARTICLE VI    
    
    OVERDUE PAYMENTS    
  

        The Executive shall be entitled to receive interest (at the prime rate of interest published in the Wall Street Journal, Eastern Edition, or such other
publication mutually agreed upon by the Executive and the Corporation), on any payments under this Agreement that are overdue. 

 
 

ARTICLE VII    
    
    NOTICES    
  

        Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and if sent by registered or certified
mail to the Executive at the last address he has filed in writing with the Corporation at its principal executive offices and to the Corporation at the address of its principal executive offices, to
the attention of the Chairman and Chief Executive Officer, with a copy to the General Counsel. 

 
 

ARTICLE VIII    
    
    BINDING AGREEMENT; REFORMATION    
  

        SECTION
8.1    BINDING AGREEMENT.    This Agreement shall be effective as of the date hereof and shall be binding upon
and inure to the benefit of the Executive, his executors, administrators and personal representatives. The rights and obligations of the Corporation under this Agreement shall inure to the benefit of
and shall be binding upon the Corporation, and shall be transferred to and be binding upon any successor of the Corporation as defined by applicable laws as now are in effect, including, but not
limited to, any successor of the Corporation pursuant to a merger of the Corporation into another entity; provided, that this Agreement may not be assigned by the Corporation without the consent of
the Executive, and, in the case of a successor by transfer of all or substantially all of the assets of the Corporation, or any other successor in connection with which the 

8

 

Corporation does not cease to exist by operation of the transaction in question as a matter of law, the Corporation shall not be relieved of its obligations hereunder; provided further, that, in the
case of dissolution and winding up of the business of the Corporation, this Agreement and the obligations hereunder shall be binding upon the trustee of the Corporation's assets. 

        SECTION
8.2.    REFORMATION.    It is specifically agreed that each of the covenants set forth in Article II
hereof is severable; that if any of them is held invalid or unenforceable by reason of length of time, area covered or activity covered, or any combination thereof, or for any other reason, the court
or arbitrator shall adjust, reduce or otherwise reform any such covenant to the extent necessary to cure any invalidity and to protect the interests of the Corporation to the fullest extent of the
law; that the area, time period and scope of activity restricted shall be the maximum area, time period and scope of activity the court or arbitrator deems valid and enforceable; and that, as
reformed, such covenants shall then be enforced. 

 
 

ARTICLE IX    
    
    ENTIRE AGREEMENT    
  

        This Agreement constitutes the entire understanding of the Executive and the Corporation with respect to the subject matter hereof and supersedes any and all
prior understandings written or oral. This Agreement may not be changed, modified or discharged orally, but only by an instrument in writing signed by the parties. This Agreement shall be governed by
the laws of the State of Maryland and the invalidity or unenforceability of any provisions hereof shall in no way affect the validity or enforceability of any other provision. 

 
 

ARTICLE X    
    
    ARBITRATION    
  

        With the exception of the relief available to the Corporation pursuant to Article III hereof as a result of a breach by the Executive of the Executive's
obligations under Article II hereof, the Corporation and the Executive agree that any controversy or claim arising out of or relating to this Agreement or breach thereof shall be settled by
arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association, and judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction thereover. In reaching its decision, the arbitrator shall have no authority to change or modify any provision of this Agreement. In connection with any such
arbitration, the arbitrator shall allow a reasonable amount of discovery. All costs of the arbitration shall be borne by the Corporation unless it is determined that the Executive has acted in bad
faith in connection with the dispute that is the subject of such arbitration. 

9

 

        IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date first above written. 

	ATTEST:	 	RWD TECHNOLOGIES, INC.
	

	
 	

By:	
 	

	

 	
 	

Name:	
 	

	

 	
 	

Title:	
 	

	

WITNESS:	
 	

EXECUTIVE
	

	
 	

 David Yager

10

QuickLinks

Exhibit 10.1

EMPLOYMENT AGREEMENT

ARTICLE I FULL-TIME EMPLOYMENT OF EXECUTIVE

ARTICLE II COMPETITION; CONFIDENTIAL INFORMATION; PUBLIC STATEMENTS

ARTICLE III CORPORATION'S REMEDIES FOR BREACH

ARTICLE IV EMPLOYMENT PERIOD

ARTICLE V CHANGE IN CONTROL

ARTICLE VI OVERDUE PAYMENTS

ARTICLE VII NOTICES

ARTICLE VIII BINDING AGREEMENT; REFORMATION

ARTICLE IX ENTIRE AGREEMENT

ARTICLE X ARBITRATION

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