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<SEC-DOCUMENT>0000897069-04-002110.txt : 20060829
<SEC-HEADER>0000897069-04-002110.hdr.sgml : 20060829

<ACCEPTANCE-DATETIME>20041209124524

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000897069-04-002110

CONFORMED SUBMISSION TYPE:	PRE 14A

PUBLIC DOCUMENT COUNT:		4

CONFORMED PERIOD OF REPORT:	20050127

FILED AS OF DATE:		20041209

DATE AS OF CHANGE:		20060605


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			WIDEPOINT CORP

		CENTRAL INDEX KEY:			0001034760

		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]

		IRS NUMBER:				522040275

		STATE OF INCORPORATION:			DE

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		PRE 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	000-23967

		FILM NUMBER:		041192535



	BUSINESS ADDRESS:	

		STREET 1:		ONE LINCOLN CENTER

		CITY:			OAKBROOK TERRACE

		STATE:			IL

		ZIP:			60181

		BUSINESS PHONE:		630-629-0003



	MAIL ADDRESS:	

		STREET 1:		ONE LINCOLN CENTER

		CITY:			OAKBROOK TERRACE

		STATE:			IL

		ZIP:			60181



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	ZMAX CORP

		DATE OF NAME CHANGE:	19970530



</SEC-HEADER>

<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>cmw1074.htm
<DESCRIPTION>PRELIMINARY PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 14A
INFORMATION </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proxy Statement
Pursuant to Section 14(a) of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the Securities Exchange
Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by the Registrant |X| <BR>Filed by
a Party other than the Registrant |_| </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate
box: <BR>|X|&nbsp;&nbsp;Preliminary Proxy Statement <BR>|_|&nbsp;&nbsp;<B>Confidential, for Use of the Commission
Only (as permitted by Rule 14a-6(e)(2))</B> <BR>|_|&nbsp;&nbsp;Definitive Proxy Statement<BR>|_|&nbsp;&nbsp;Definitive
Additional Materials <BR>|_|&nbsp;&nbsp;Soliciting Material Pursuant to &sect; 240.14a-12  </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WIDEPOINT CORPORATION</B></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Registrant as Specified In Its Charter)</FONT></TD></TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Person(s) Filing Proxy Statement, if other than the Registrant) </FONT></TD></TR>
</TABLE>







<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment of Filing Fee
(Check the appropriate box):  </FONT></P>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|X| </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  No
fee required  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
computed on table below per Exchange Act Rules 14a-6(i)(4) and&nbsp;0-11 </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (1) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title
of each class of securities to which transaction applies:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (2) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aggregate
number of securities to which transaction applies:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (3) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Per
unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it
was determined): </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (4) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed
maximum aggregate value of transaction: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (5) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total
fee paid: N/A</FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_| </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Fee
paid previously with preliminary materials.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_| </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check
box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of
its filing. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (1) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount
Previously Paid:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (2) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form,
Schedule or Registration Statement No.:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (3) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filing
Party:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (4) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
Filed:</FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>


<!-- MARKER PAGE="sheet: 1; page: 1" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<IMG SRC="widepoint.gif">



<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WIDEPOINT CORPORATION</B>
 <BR>One Lincoln Centre, Suite 1100  <BR>Oakbrook Terrace, Illinois 60181  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 27, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Stockholder: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are pleased to invite you to attend our Annual Meeting of Stockholders. This year it will
be held on Thursday January 27, 2005, at 10:00 a.m., Eastern Standard Time, at the
Washington, D.C. offices of Foley &amp; Lardner LLP, located at 3000 K Street N.W., Suite
500, Washington, D.C. 20007. The primary business of the meeting will be to: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>elect
directors;</FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>approve
the proposed amendment to the Company&#146;s Certificate of Incorporation to increase the
total number of authorized shares of Common Stock of the Company from 50 million to 110
million; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>approve
the proposed amendment to the Company&#146;s 1997 Stock Incentive Plan to increase the
number of shares of Common Stock issuable thereunder by 7 million shares; and </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ratify
the selection of independent accountants.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Notice of the Annual Meeting and the Proxy Statement follow. You will also find enclosed a
proxy card. We invite you to attend the meeting in person, but if this is not feasible, we
think it advisable for you to be represented by proxy. Therefore, if you cannot attend the
meeting, we urge you to sign the enclosed proxy card and mail it promptly in the
return-addressed, postage-prepaid envelope provided for your convenience. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steve L. Komar</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board, President and</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chief Executive Officer</FONT></TD></TR>
</TABLE>


<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>

<!-- MARKER PAGE="sheet: 2; page: 2" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WIDEPOINT CORPORATION</B>
 <BR>One Lincoln Centre, Suite 1100  <BR>Oakbrook Terrace, Illinois 60181  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF ANNUAL
MEETING OF STOCKHOLDERS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Stockholder: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice
is hereby given that the Annual Meeting of Stockholders of WidePoint Corporation, a
Delaware corporation (the &#147;Company&#148;), will be held at the Washington D.C.
offices of Foley &amp; Lardner LLP, located at 3000 K Street, N.W., Suite 500, Washington,
D.C. 20007 on Thursday, January 27, 2005, at 10:00 a.m., Eastern Standard Time, for the
following purposes: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
re-elect two persons as Class I directors to serve for a three-year period
               until the Annual Meeting of Stockholders in the year 2007 and to increase
the                number of directors by electing two additional persons as Class III
directors of                the Company to serve for a two-year period until the Annual
Meeting of                Stockholders in the year 2006; and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
approve a proposed amendment to the Company&#146;s Amended and Restated
               Certificate of Incorporation to increase the aggregate number of shares of
               Common Stock, par value $0.001 per share, that the Corporation shall have
               authority to issue from 50,000,000 shares to 110,000,000 shares; and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
approve a proposed amendment to the Company&#146;s 1997 Stock Incentive Plan
               to increase by 7,000,000 shares the number of shares of the Company&#146;s
               Common Stock authorized for possible issuance under such plan; and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
ratify the selection of Grant Thornton, LLP as the independent accountants
               for the Company for the current fiscal year; and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
transact such other business as may properly come before the meeting. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only
stockholders of record at the close of business on December 20, 2004 are entitled to
notice of, and to vote at, the Annual Meeting. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By order of the Board of Directors,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>James T. McCubbin</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Secretary</FONT></TD></TR>
</TABLE>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 27, 2004 </FONT></P>


<BR>
<BR>
<BR>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>




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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YOUR VOTE IS IMPORTANT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please date, sign and promptly return
the enclosed proxy so that your shares may be voted in accordance with your wishes. Mail
the proxy to us in the enclosed envelope, which requires no postage if mailed in the
United States. The giving of the proxy does not affect your right to vote in person should
you attend the meeting. </FONT></P>

<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT Corporation
 <BR>One Lincoln Centre, Suite 1100  <BR>Oakbrook Terrace, Illinois 60181  </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROXY STATEMENT </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GENERAL </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Proxy Statement is furnished in connection with the solicitation by the Board of Directors
of WidePoint Corporation, a Delaware corporation (&#147;WidePoint&#148; or the
&#147;Company&#148;), of proxies of stockholders to be voted at the Annual Meeting of
Stockholders to be held at the Washington, D.C. offices of Foley &amp; Lardner LLP,
located at 3000 K Street, N.W., Suite 500, Washington, D.C. 20007 at 10:00 a.m., Eastern
Standard Time, on Thursday, January 27, 2005, and any and all adjournments thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
stockholder executing a proxy retains the right to revoke it at any time prior to its
being exercised by giving written notice to the Secretary of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Proxy Statement and the accompanying proxy are being mailed or given to stockholders of
the Company on or about December 27, 2004. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VOTING SECURITIES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 20, 2004, a total of 26,680,949 shares of common stock of the Company, par
value $.001 per share (&#147;Common Stock&#148;), which is the only class of voting
securities of the Company, were issued and outstanding. All holders of record of the
Common Stock as of the close of business on December 20, 2004, are entitled to one vote
for each share held at the Annual Meeting, or any adjournment thereof, upon the matters
listed in the Notice of Annual Meeting. Cumulative voting is not permitted. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
of Common Stock represented by proxy will be voted according to the instructions, if any,
given in the proxy. Unless otherwise instructed, the person or persons named in the proxy
will vote (1) FOR the election of the nominees for director listed herein (or their
substitutes in the event any of the nominees is unavailable for election); (2) FOR the
approval of the proposed amendment of the Company&#146;s Amended and Restated Certificate
of Incorporation to increase the total number of authorized shares of Common Stock of the
Company from 50 million to 110 million; (3) FOR the approval of the proposed amendment to
the Company&#146;s 1997 Stock Incentive Plan to increase the number of shares of Common
Stock issuable thereunder by 7 million; (4) FOR the ratification of the selection of Grant
Thornton LLP as the independent accountants for the Company for the current fiscal year;
and (5) in their discretion, with respect to such other business as may properly come
before the meeting. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes
cast by proxy or in person at the Annual Meeting will be tabulated by the inspectors of
election appointed by the Company for the meeting. The number of shares represented at the
meeting in person or by proxy will determine whether or not a quorum is present. The
inspectors of election will treat abstentions as shares that are present and entitled to
vote for purposes of determining the presence of a quorum but as unvoted for purposes of
determining the approval of any matter submitted to the stockholders for a vote. If a
broker indicates on the proxy that it does not have discretionary authority as to certain
shares to vote on a particular matter, those shares will not be considered as present and
entitled to vote by the inspectors of election with respect to that matter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
cost of soliciting proxies will be borne by the Company. Proxies may be solicited by
directors, officers, regular employees or other agents of the Company in person or by
telephone. We have retained American Stock Transfer to assist in the solicitation of
proxies. American Stock Transfer will charge approximately $2,000 plus out-of-pocket
expenses. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL ONE &#150;
ELECTION OF DIRECTORS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors is classified into the following three classes of
directors, with approximately one-third of the directors serving in each such class of
directors and with one class of directors being elected at each annual meeting of
stockholders of the Company to serve for a term of three years or until the earlier
expiration of the term of their class of directors or until their successors are elected
and take office as provided below: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR"  -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CLASS I &#150; TERM
EXPIRES AT THE 2004 ANNUAL MEETING OF STOCKHOLDERS </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Mark
Mirabile &#150; presently serving          <BR>Norman Wareham &#150; presently serving </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR"  -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CLASS II &#150; TERM
EXPIRES AT THE 2005 ANNUAL MEETING OF STOCKHOLDERS </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Steve
Komar &#150; presently serving          <BR>James McCubbin &#150; presently serving </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR"  -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CLASS III &#150; TERM
EXPIRES AT THE 2006 ANNUAL MEETING OF STOCKHOLDERS </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
James
Ritter &#150; presently serving          <BR>Mark Fuller &#150; expansion nominee          <BR>John Crowley
&#150; expansion nominee </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bylaws of the Company provide that the Board of Directors will determine the number of
directors to serve on the Board. The Company&#146;s Board of Directors presently consists
of five members. The five members of the Company&#146;s Board of Directors are identified
above, along with the additional nominees of Mark Fuller and Jack Crowley who have been
nominated to join and expand the Board of Directors to seven persons (i) as required under
the terms of the agreements entered into by the Company in its acquisition of Chesapeake
Government Technologies, Inc. (&#147;Chesapeake&#148;) in March 2004. The Board of
Directors has nominated Messrs. Fuller and Crowley as Class III directors and not as Class
I directors in order to keep a balance as nearly as possible in the number of directors
serving in each class of directors in conformity with the provisions and intent of the
staggered board provisions of the Company&#146;s Certificate of Incorporation and Bylaws. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>

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<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proxies
will be voted at the Annual Meeting, unless authority is withheld, FOR the election of the
persons named below. The Company does not contemplate that the persons named below will be
unable or will decline to serve; however, if any such nominee is unable or declines to
serve, the persons named in the accompanying proxy will vote for a substitute, or
substitutes, in their discretion. The following table sets forth information regarding the
nominees: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=35% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>POSITION WITH</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DIRECTOR</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>NAME</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>THE COMPANY</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>AGE</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SINCE</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Mark Mirabile</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director, Vice President</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and Chief Operations Officer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of WidePoint</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2002</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Norman Wareham</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director of WidePoint</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Mark Fuller</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chief Executive Officer of</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chesapeake, a wholly-owned</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>subsidiary of WidePoint</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Jack Crowley</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>President of Chesapeake, a</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>wholly-owned subsidiary</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of WidePoint</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mark
Mirabile </I>has served as a Class I director of the Company since his appointment in
April 2002. Mr. Mirabile has also served as the Vice President and Chief Operations
Officer for the Company since December 2001. From June 2000 to November 2001, Mr. Mirabile
served as the Vice President of Sales and Marketing for the Company. Prior to that time,
from November 1992 to May 2000, Mr. Mirabile served as the Vice President of Eclipse
Information Systems, Inc. (&#147;Eclipse&#148;), a wholly-owned subsidiary of the Company.
Mr. Mirabile was a co-founder of Eclipse prior to its acquisition by the Company in
December 1998. Mr. Mirabile has over 20 years experience in information technology at both
the executive and technical levels. He has an Associates Degree in Applied
Science-Accounting from Daley Community College in Chicago. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Norman
Wareham</I> has served as a Class I director of the Company since December 1997. Mr.
Wareham served as the Company&#146;s Vice President, Secretary and Chief Financial Officer
from September 1996 until August 1998. Mr. Wareham is President of Wareham Management Ltd.
and provides management consulting and accounting services to public companies in Canada
and the United States. Mr. Wareham is a certified accountant and has been engaged in the
public practice of accounting for over 20 years. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>

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<HR SIZE=5 COLOR=GRAY NOSHADE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mark
Fuller </I>is being nominated as a Class III director and presently serves as the Chief
Executive Officer of Chesapeake, a wholly-owned subsidiary of the Company. The Company
acquired Chesapeake on March 24, 2004. Mr. Fuller was a co-founder of Chesapeake and has
served as its Chief Executive Officer since its inception in February 2004. Mr. Fuller has
also served as Chairman and CEO of Chesapeake Partners, Inc., a business consulting
company, since October 2001. From December 2000 to October 2002, Mr. Fuller served as
President of Network Services for Verizon Avenue, a wholly-owned subsidiary of Verizon
Communications Inc. Verizon Avenue was originally founded as One Point Communications,
where Mr. Fuller served as President of Network Services from January 1999 to December
2000. Prior thereto, Mr. Fuller served as Vice President of ACSI (which later became known
as e.spire), from November 1994 to November 1998. From August 1993 to November 1994, Mr.
Fuller served as Director of MCI Sales for Teleport Communications Group. From March 1988
to August 1993, Mr. Fuller held various management positions with MCI Telecommunications,
Inc. Mr. Fuller also served 9 years in the United States Army where he rose to the rank of
Major prior to leaving active duty in March 1988. Mr. Fuller is a graduate of the United
States Military Academy at West Point, New York where he received a Bachelor of Science
degree in Applied Science and Engineering. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>John
Crowley</I> is being nominated as a Class III director and presently serves as the
President of Chesapeake, a wholly-owned subsidiary of the Company. The Company acquired
Chesapeake on March 24, 2004. Mr. Crowley was a co-founder of Chesapeake and has served as
its President since its inception in February 2004. From September 2002 to March 2004, Mr.
Crowley served as Vice President of Strategic Partnerships and Alliances at AT&amp;T Corp.
From March 1992 to September 2002, Mr. Crowley served as Vice President of Strategic
Ventures and Alliances at MCI Telecommunications, Inc. From 1983 to 1992, Mr. Crowley held
various management and consulting positions with different companies, including United
City Traders and PricewaterhouseCoopers. Mr. Crowley received his Bachelor of Science
degree in Business Administration from Georgetown University. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>MANAGEMENT
RECOMMENDS THAT YOU VOTE FOR THE ELECTION OF THE ABOVE NOMINEES AS DIRECTORS OF THE
COMPANY.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Meetings of the Board of
Directors and Committees</I>  </FONT></H1>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 14; page: 14" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors met four times during 2003. Each incumbent director attended at least
75% of the aggregate number of meetings of the Board and committee(s) on which he served
while he was a director and committee member during 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit and Finance
Committee</I>  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has an Audit and Finance Committee, which conducted four meetings
during 2003 and presently consists of Norman Wareham and James Ritter. Under the corporate
governance listing standards of the Nasdaq Stock Market to which the Company is not
legally subject but with which the Board desires to voluntarily and substantially comply,
Messrs. Wareham and Ritter are &#147;independent&#148; directors. The Audit and Finance
Committee is responsible for meeting with the Company&#146;s independent accountants to
review the proposed scope of the annual audit of the Company&#146;s books and records,
reviewing the findings of the independent accountants upon completion of the annual audit,
and reporting to the Board of Directors with respect thereto. All of the members of the
Audit Committee are considered by the Board to be financially literate and the Board has
determined that Mr. Wareham is deemed to be an &#147;Audit Committee financial
expert&#148; as defined by the rules of the U. S. Securities and Exchange Commission
(&#147;SEC&#148;). The Board of Directors has adopted a written charter for the Audit
Committee, a copy of which is attached hereto as Appendix 1. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Compensation Committee</I>  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors also has a Compensation Committee, which conducted four meetings during
2003, presently consists of Norman Wareham, Steve Komar and James Ritter, and is
responsible for advising the Board on matters relating to the compensation of officers and
key employees and certain of the Company&#146;s employee benefit plans. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Nominating Committee</I>  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors also has a Nominating Committee, which conducted one meeting during
2003, presently consists of Steve Komar and James Ritter and is responsible for advising
the Board on matters relating to the identification of nominees to the Board of Directors.
Under the corporate governance listing standards of the Nasdaq Stock Market to which the
Company is not legally subject but with which the Board desires to voluntarily and
substantially comply, Mr. Ritter is an &#147;independent&#148; director and Mr. Komar is
not an &#147;independent&#148; director. The Company does not have a Nominating Committee
charter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Policy Regarding
Director Nominating Process</I>  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating Committee has adopted a policy pursuant to which a shareholder who has owned at
least 5% of the Company&#146;s outstanding shares of Common Stock for at least two years
may recommend a director candidate that the Committee will consider when there is a
vacancy on the Board either as a result of a director resignation or an increase in the
size of the Board. Such recommendation must be made in writing addressed to the
Chairperson of the Nominating Committee at the Company&#146;s principal executive offices
and must be received by the Chairperson at least 120 days prior to the anniversary date of
the release of the prior year&#146;s proxy statement. Although the Committee has not
formulated any specific minimum qualifications that the Committee believes must be met by
a nominee that the Committee recommends to the Board, the factors it will take into
account will include strength of character, mature judgment, career specialization,
relevant technical skills or financial acumen, diversity of viewpoint and industry
knowledge. There will be no differences between the manner in which the Committee
evaluates a nominee recommended by a shareholder and the manner in which the Committee
evaluates nominees recommended by other persons. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Policy Regarding
Shareholder Communication with Directors</I>  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
desiring to communicate with a director, the non-management directors as a group or the
full Board may address such communication to the attention of the Secretary of the Company
at the Company&#146;s executive offices and such communication will be forwarded to the
intended recipient or recipients. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Policy Regarding
Director Attendance at Annual Meetings</I>  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has adopted a policy that each director should attempt to attend each annual
meeting of stockholders. Four of the five members of the Board of Directors attended last
year&#146;s annual meeting that was held on December 18, 2003. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Meetings of
Non-Management Directors</I>  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-management
 members of the Board of Directors conduct at least two  regularly-scheduled  meetings
per year without members of management being present.  Mr. Ritter serves as the presiding
director of such meetings. </FONT></P>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Code of Business Conduct and Ethics</I>  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has adopted a Code of Business
Conduct and Ethics for Directors, Officers and Employees pursuant to rules of the
Securities and Exchange Commission and in voluntary, substantial compliance with recently
amended Nasdaq Stock Market corporate governance listing standards. A copy of this
document is set forth on the Company&#146;s website at <U>www.widepoint.com</U>. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>COMPENSATION AND
RELATED MATTTERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following Summary Compensation
Table sets forth the annual salary (column c) and bonus (column d) paid and options
granted (column g) during each of the past three years to the Chief Executive Officer of
the Company, as well as the executive officers of the Company at December 31, 2003 whose
annual salary and bonus in 2003 exceeded $100,000. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>


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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% ALIGN=CENTER>
<TR>
     <TD COLSPAN=8><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=8><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Summary Compensation Table</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Long-Term Compensation</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Annual Compensation</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Awards</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Payouts</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)<BR><BR>
<BR>
Name and Principal<BR>
Position</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(b)<BR><BR>
<BR>
Year<BR>&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(c)<BR><BR>
<BR>
Salary<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(d)<BR><BR>
<BR>
Bonus<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(e)<BR><BR>
Other Annual<BR>
Compensation<SUP>1</SUP><BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(f)<BR><BR>
Restricted Stock<BR>
Award(s)<BR>
$</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(g)<BR>
Securities<BR>
Underlying<BR>
Options<BR>
(#)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(h)<BR><BR>
LTIP<BR>
Payouts<BR>
($)
</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Steve Komar</FONT></TD>
     <TD WIDTH=8% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TD>
     <TD WIDTH=11% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 40,000</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 22,000</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>100,000</FONT></TD>
     <TD WIDTH=8% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Chief Executive Officer</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>500,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;and President</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR>
     <TD COLSPAN=8><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>James McCubbin</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$119,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Vice President &amp; Chief</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$119,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 31,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Financial Officer</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$134,302</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>500,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR>
     <TD COLSPAN=8><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Mark Mirabile</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$119,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 43,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Vice President &amp; Chief</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$119,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Operations Officer</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$133,681</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>500,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ -0-</FONT></TD></TR>
<TR>
     <TD COLSPAN=8><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
</TABLE>




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<HR SIZE=1 NOSHADE WIDTH=15% color=black ALIGN=LEFT>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Does
not report the approximate cost to the Company of an automobile allowance furnished to
the above persons, which amounts do not exceed the lesser of either $50,000 or 10% of the
total of the person&#146;s annual salary and bonuses for 2003.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following Option Grants Table
sets forth, for each of the named executive officers, information regarding individual
grants of options granted in 2003 and their potential realizable value. Information
regarding individual option grants includes the number of options granted, the percentage
of total grants to employees represented by each grant, the per-share exercise price and
the expiration date. The potential realizable value of the options are based on assumed
annual 0%, 5% and 10% rates of stock price appreciation over the term of the option. </FONT></P>












<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% ALIGN=CENTER>
<TR>
     <TD COLSPAN=8><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=8><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Option Grants Table</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Individual Grants</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Potential Realizable Value at<BR>
Assumed<BR>
Annual Rates of Stock Price<BR>
Appreciation for Option Term<SUP>4</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Name</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options<BR>
Granted<BR>
(#)<SUP>1</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>% of Total Options<BR>
Granted to<BR>
Employees in Fiscal<BR>
Year<SUP>2</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exercise<BR>
Price($/SH)<SUP>3</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Expiration<BR>
Date</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>0%</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>5%</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>10%</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=22% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Steve Komar</FONT></TD>
     <TD WIDTH=9% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>50,000</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>12.5%</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$0.09</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/21/2013</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$     0</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 2,830</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 7,172</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Steve Komar</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>12.5%</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$0.13</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>12/31/2013</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$     0</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ 4,088</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$10,359</FONT></TD></TR>
<TR>
     <TD COLSPAN=8><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
</TABLE>





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<HR SIZE=1 NOSHADE WIDTH=15% COLOR=BLACK ALIGN=LEFT>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


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<!-- MARKER PAGE="sheet: 17; page: 17" -->
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>1</SUP> The reported options
were granted by the Company to the named executive officer under the Company&#146;s 1997
Stock Incentive Plan. The option expiring on April 21, 2013 for 50,000 shares of the
Company&#146;s Common Stock vests as to 25,000 shares on July 21, 2003, 12,500 shares on
April 21, 2004 and 12,500 shares on April 21, 2005. The option expiring on December 31,
2013 for 50,000 shares of the Company&#146;s Common Stock vests on December 31, 2004 as to
100% of the shares of Common Stock underlying the option. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>2</SUP> Based on options for a
total of 400,000 shares of Common Stock granted to all employees or directors in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>3 </SUP>The per share exercise price
is equal to the fair market value per share of Common Stock on the date of grant of the
option. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>4 </SUP>The potential realizable
values shown in the columns are net of the option exercise price. These amounts assume
annual compounded rates of stock price appreciation of 0%, 5%, and 10% from the date of
grant to the option expiration date, a term of ten years. These rates have been set by the
U.S. Securities and Exchange Commission and are not intended to forecast future
appreciation, if any, of the Company&#146;s Common Stock. Actual gains, if any, on stock
option exercises are dependent on several factors including the future performance of the
Company&#146;s Common Stock, overall stock market conditions, and the optionee&#146;s
continued employment through the vesting period. The amounts reflected in this table may
not actually be realized. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following Option Exercises and Year-End Value Table is set forth herein because it sets
forth, for each of the named executive officers, information regarding the number and
value of unexercised options at December 31, 2003. No options were exercised by such
persons during 2003. </FONT></P>












<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% ALIGN=CENTER>
<TR VALIGN=Bottom>
     <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Aggregate Option Exercises and Fiscal Year-End Option Value Table</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
Name<BR>&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(b)<BR>
<BR>
<BR>
Number of<BR>
Shares Acquired
on<BR>
Exercise<BR>&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(c)<BR>
<BR>
<BR>
<BR>
<BR>
Value<BR>
Realized <BR>($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(d)<BR>
Number of Securities <BR>Underlying<BR>
Unexercised <BR>Options at FY-End
(#) <SUP>1</SUP><BR>
<BR>
<BR>
Exercisable/Unexercisable</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(e)<BR>
Value of Unexercised In-<BR>The-Money
Options at FY-<BR>End ($)<BR>
<BR>
<BR>
<BR>
Exercisable/Unexercisable <SUP>2</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=29% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Steve Komar</FONT></TD>
     <TD WIDTH=9% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD WIDTH=9% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>425,000/175,000<SUP>3</SUP></FONT></TD>
     <TD WIDTH=23% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$25,000/ $7,000</FONT></TD></TR>
<TR>
     <TD COLSPAN=5><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>James McCubbin</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>401,000/100,000<SUP>4</SUP></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$0 / $0</FONT></TD></TR>
<TR>
     <TD COLSPAN=5><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Mark Mirabile</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>401,000/100,000<SUP>5</SUP></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$0 / $0</FONT></TD></TR>
<TR>
     <TD COLSPAN=5><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
</TABLE>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>1</SUP> The reported options
were granted by the Company to the named executive officer under the Company&#146;s 1997
Stock Incentive Plan (the &#147;Plan&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>2</SUP>        Market value of underlying
shares at December 31, 2003, minus the exercise price. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>3</SUP> The above-reported
options entitle Mr. Komar to purchase from the Company (i) 400,000 shares of Common Stock
at an exercise price of $0.07 per share through July 7, 2012, pursuant to a stock option
granted to him on July 7, 2002 under the Plan, all of which shares are currently vested
and exercisable, and (ii) 25,000 shares of Common Stock at an exercise price of $0.09 per
share through April 24, 2013 pursuant to a stock option granted to him on April 24, 2003
and which fully vested on July 24, 2003, and (iii) 100,000 shares of Common Stock at an
exercise price of $0.07 per share through July 7, 2012, pursuant to a stock option granted
to him on July 7, 2002, with such shares vested on January 3, 2004, (iv) 25,000 shares of
Common Stock at an exercise price of $0.09 per share through April 24, 2013 pursuant to a
stock option granted to him on April 24, 2003 of which 12,500 shares fully vested on April
21, 2004 and for which 12,500 shares will vest on April 21, 2005 or by an earlier vesting
decision as may be granted by the Compensation Committee, (v) 50,000 shares of Common
Stock at an exercise price of $0.13 per share through December 31, 2013 pursuant to a
stock option granted to him on December 31, 2003, with all such shares fully vesting on
December 31, 2004 or by an earlier vesting decision as may be granted by the Compensation
Committee. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>4</SUP> The above-reported
options entitle Mr. McCubbin to purchase from the Company (i) 1,000 shares of Common Stock
at an exercise price of $1.35 per share through July 3, 2010 pursuant to a stock option
granted to him on July 3, 2000, of which all such shares are currently exercisable, (ii)
400,000 shares of Common Stock at an exercise price of $0.17 per share through January 2,
2011, pursuant to a stock option granted to him on January 2, 2001, of which all such
shares are currently exercisable, (iii) 100,000 shares of Common Stock at an exercise
price of $0.17 per share through January 2, 2011, pursuant to a stock option granted to
him on January 2, 2001, with such shares vested on January 2, 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>5</SUP> The above-reported
options entitle Mr. Mirabile to purchase from the Company (i) 1,000 shares of Common Stock
at an exercise price of $1.35 per share through July 3, 2010 pursuant to a stock option
granted to him on July 3, 2000, of which all such shares are currently exercisable, (ii)
400,000 shares of Common Stock at an exercise price of $0.17 per share through January 2,
2011, pursuant to a stock option granted to him on January 2, 2001, of which all such
shares are currently exercisable, and (iii) 100,000 shares of Common Stock at an exercise
price of $0.17 per share through January 2, 2011, pursuant to a stock option granted to
him on January 2, 2001, with such shares vested on January 2, 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Long-Term Incentive Plan Awards Table is set forth herein because no long-term incentive
plan awards were made to the above-named executive officers during 2003. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity Compensation Plan
Information </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information as of December 31, 2003, with respect to the
Company&#146;s compensation plans under which its Common Stock is authorized for issuance: </FONT></P>










<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% ALIGN=CENTER>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Plan Category</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)<BR>
<BR>
Number of securities<BR>
to be issued upon<BR>
exercise of<BR>
outstanding options,<BR>
warrants, and rights</FONT><HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(b)<BR>
<BR>
<BR>
Weighted average<BR>
exercise price of<BR>
outstanding options,<BR>
warrants, and rights</FONT><HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(c)<BR>
Number of securities<BR>
remaining available<BR>
for future issuance<BR>
(excluding securities<BR>
reflected in<BR>
column (a))</FONT><HR WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Equity Compensation Plans:</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;&nbsp;approved by security holders</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,112,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$0.14</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>888,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;&nbsp;not approved by security holders</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>- 0 -</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$&nbsp;&nbsp;-0-</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>- 0 -</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR><B>Total</B></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,112,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>888,000</FONT></TD></TR>
</TABLE>




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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment Agreements
and Arrangements </FONT></H1>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 1, 2002, the Company entered into an employment agreement with Steve Komar, Chief
Executive Officer and President of the Company. The employment agreement had an initial
term expiring on July 1, 2004 with four renewable one-year options remaining. On July 1,
2004, the Company and Mr. Komar exercised the first of such one-year renewal options. The
agreement provides for (1) a base salary of $40,000 per year, (2) a home office/automobile
expense allowance of $500 per month to cover such expenses incurred in the pursuit of
Company business; (3)<B> </B>a phone allowance of $100 per month to cover such expenses
incurred in the pursuit of Company business; (4)<B> </B>reimbursement for additional
actual business expenses consistent with the Company&#146;s existing policies that have
been incurred for the benefit of the Company; (5) paid medical and other benefits
consistent with the Company&#146;s existing policies with respect to key executives of the
Company, as such policies may be amended from time to time in the future; and (6)
performance incentive bonuses as may be granted annually at the discretion of the
Compensation Committee of the Board of Directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 1, 2002, the Company entered into an employment agreement with James McCubbin, Chief
Financial Officer of the Company. The employment agreement had an initial term expiring on
July 1, 2004 with four renewable one-year options remaining. On July 1, 2004, the Company
and Mr. McCubbin exercised the first of such one-year renewal options. The agreement
provides for (1) a base salary of $119,000 per year, (2) a home office/automobile expense
allowance of $500 per month to cover such expenses incurred in the pursuit of Company
business; (3)<B> </B>reimbursement for additional actual business expenses consistent with
the Company&#146;s existing policies that have been incurred for the benefit of the
Company; (4) paid medical and other benefits consistent with the Company&#146;s existing
policies with respect to key executives of the Company, as such policies may be amended
from time to time in the future; and (5) performance incentive bonuses as may be granted
annually at the discretion of the Compensation Committee of the Board of Directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 1, 2002, the Company entered into an employment agreement with Mark Mirabile, Chief
Operations Officer of the Company. The employment agreement had an initial term expiring
on July 1, 2004 with four renewable one-year options remaining. On July 1, 2004, the
Company and Mr. Mirabile exercised the first of such one-year renewal options. The
agreement provides for (1) a base salary of $119,000 per year, (2) a home
office/automobile expense allowance of $500 per month to cover such expenses incurred in
the pursuit of Company business; (3)<B> </B>reimbursement for additional actual business
expenses consistent with the Company&#146;s existing policies that have been incurred for
the benefit of the Company; (4) paid medical and other benefits consistent with the
Company&#146;s existing policies with respect to key executives of the Company, as such
policies may be amended from time to time in the future; and (5) performance incentive
bonuses as may be granted annually at the discretion of the Compensation Committee of the
Board of Directors. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compensation Committee
Interlocks and Insider Participation </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee of the Board of Directors consists of Messrs. Komar, Wareham and
Ritter. Mr.&nbsp;Steve&nbsp;Komar is the Company&#146;s current Chairman of the Board,
President and Chief Executive Officer. Mr.&nbsp;Norman Wareham served as the
Company&#146;s Vice President, Secretary and Chief Financial Officer from September 1996
until August 1998. Mr. James Ritter is the Company&#146;s current Assistant Secretary. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compensation Committee
Report on Executive Compensation </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee consists of Steve Komar, Norman Wareham and James Ritter, with Mr.
Ritter serving as Chairman of the Committee. The Compensation Committee determines the
compensation paid to the Chief Executive Officer and the other executive officers and
consultants of the Company. Mr. Komar, who is currently serving as the Chief Executive
Officer of the Company, does not participate in the determination by the Committee of the
compensation paid to the Chief Executive Officer. The Compensation Committee believes that
for the Company to be successful long-term and for the Company to increase stockholder
value, the Company must be able to hire, retain, adequately compensate and financially
motivate talented and ambitious executives. The Compensation Committee attempts to reward
executives for both individual achievement and overall Company success. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Executive compensation is made up of
three components: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Base
Salary</I>. An executive&#146;s base salary is initially determined by considering the
executive&#146;s level of responsibility, prior experience and compensation history.
Published salaries of executives in similar positions at other companies of comparable
size (sales and/or number of employees) is also considered in establishing base salary. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stock
Options</I>. In 1997, the Company adopted the 1997 Stock Incentive Plan to provide stock
option awards to certain executives of the Company and its subsidiaries. The Compensation
Committee believes that the granting of stock options is directly linked to increased
executive commitment and motivation and to the long-term success of the Company. The
Compensation Committee awards stock options to certain executives of the Company and its
subsidiaries. Mr. Komar, who is currently serving as the Chief Executive Officer of the
Company, does not participate in the determination by the Committee of any stock options
to be granted to the Chief Executive Officer. The Compensation Committee uses both
subjective appraisals of the executive&#146;s performance and the Company&#146;s
performance and financial success during the previous year to determine option grants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Bonus</I>.          The
Company has also implemented an executive bonus program for certain of its
          executives. Such bonuses are based, in part, on the Company&#146;s financial
          performance during the previous fiscal year including achievement of gross
          revenue and net income targets. In addition, objective individual measures of
          performance compared to the individual&#146;s business unit profit performance
          may be considered. A subjective rating of the executive&#146;s personal
          performance may also be considered. Bonuses may be paid in cash or Common Stock
          or a combination of cash and Common Stock. Bonuses are typically linked to a
          percentage of base salary.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
early 2003, the Compensation Committee recommended to the Board of Directors and the Board
of Directors approved a compensation package for the Company&#146;s Chief Operations
Officer, Mark Mirabile, and the Company&#146;s Vice President and Chief Financial Officer,
James McCubbin, that included a base salary of approximately $119,000 in 2003 for each of
Mr. Mirabile and Mr. McCubbin , plus a possible bonus for each of them of up to 125% of
their base salary. Receipt of the bonus is subject to the Company&#146;s achievement of
certain performance criteria, including gross revenue and net income targets. If the
performance criteria are not achieved or the executive is no longer employed by the
Company (other than a for cause termination), a bonus may be awarded in the discretion of
the Compensation Committee. A bonus of $22,000 was awarded to Mr. Komar, a bonus of
$43,500 was awarded to Mr. Mirabile and a bonus of $ 31,500 was awarded to Mr. McCubbin in
2003, based upon the achievement of certain performance criteria established by the
Compensation Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
determining the 2003 compensation packages for these executive officers, the Compensation
Committee considered certain achievements that both executives provided in satisfying
milestones in executing the Company&#146;s strategic repositioning of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exceptions
to the general principles stated above can be made when the Compensation Committee deems
them appropriate and in the best interests of stockholders. The Compensation Committee
regularly considers other forms of compensation and modifications of its present policies,
and will make changes as it deems appropriate. The competitive opportunities to which the
Company&#146;s executives are exposed frequently come from private companies or divisions
of large companies, for which published compensation data is often unavailable and,
therefore, the Compensation Committee&#146;s information about such opportunities is often
anecdotal. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
162(m) of the Internal Revenue Code of 1986, as amended, establishes a limit on the
deductibility of annual compensation for certain executive officers that exceeds
$1,000,000 per year unless certain requirements are met. The Company does not anticipate
that any employee will exceed such $1,000,000 cap in the near future but will consider
whether any necessary adjustments are appropriate if it becomes likely that any executive
officer&#146;s compensation may exceed the $1,000,000 limit. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Compensation Committee</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>James Ritter (Chairman)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Steve Komar</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Norman Wareham</FONT></TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing Compensation Committee report shall not be deemed to be filed with the
Securities and Exchange Commission for purposes of the Securities Exchange Act of 1934
(the &#147;1934 Act&#148;), nor shall such report be deemed to be incorporated by
reference in any past or subsequent filing by the Company under the 1934 Act or the
Securities Act of 1933, as amended (the &#147;1933 Act&#148;). </FONT></P>




<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock Options </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>1997
Stock Incentive Plan</U></I><U></U>. In May 1997, the Board of Directors adopted, and in
December 1997 the stockholders of the Company approved, the Company&#146;s 1997 Stock
Incentive Plan (the &#147;Plan&#148;), which provides for the award of a variety of
equity-based incentives, including stock awards, stock options, stock appreciation rights,
phantom shares, performance unit appreciation rights and dividend equivalents
(collectively, &#147;Stock Incentives&#148;). The Plan is administered by the Compensation
Committee and provides for the grant of Stock Incentives to officers, key employees and
consultants of the Company to purchase up to an aggregate of 3,000,000 shares of Common
Stock at not less than 100% of fair market value of the Common Stock on the date granted.
The vesting and exercisability of any Stock Incentives granted under the Incentive Plan is
subject to the determination of and criteria set by the Committee. As of December 20,
2004, options to purchase a total of 2,112,000 shares of Common Stock under the Plan, at
prices ranging from $0.07 to $1.35 per share, were outstanding, of which options to
purchase 1,886,340 shares were presently exercisable. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>1997
Directors Formula Stock Option Plan</U></I><U></U>. In May 1997, the Board of Directors
adopted, and in December 1997 the stockholders of the Company approved, the Company&#146;s
1997 Directors Formula Stock Option Plan (the &#147;Director Plan&#148;). Other than
Messrs. Wareham and Ritter, directors of the Company who are not employed by the Company
and who do not perform services for the Company are eligible to receive options under the
Director Plan. The Director Plan is administered by a committee which presently consists
of Messrs. Komar and McCubbin. Options become exercisable when vested and expire ten years
after the date of grant, subject to such shorter period as may be provided in the
agreement. A total of 140,000 shares of Common Stock are reserved for possible issuance
upon the exercise of options under the Director Plan. During 2003, options granted to and
vested with the directors were returned to the Company. There are no options presently
outstanding under the Director Plan. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Other
Options</U></I><U></U>. Options were granted on April 21, 2003 by the Board of Directors
outside of the Director Plan to Messrs. Ritter and Wareham, who abstained from voting on
such matter, for each of Messrs. Ritter and Wareham to purchase (i) 50,000 shares of
Common Stock at a price of $0.09 per share through April 21, 2013, of which options to
purchase 25,000 shares vested on July 21, 2003, 12,500 shares vested on April 21, 2004,
and the remaining 12,500 shares will vest on April 21, 2005, and (ii) 50,000 shares of
Common Stock at a price of $0.13 per share through December 31, 2013 with all of the
shares vesting on December 31, 2004. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Directors&#146; Fees </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors
who are not officers or employees of the Company receive an annual fee of $12,000. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AUDIT COMMITTEE REPORT </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Overview</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has an Audit and Finance Committee, which conducted four meetings
during 2003 and presently consists of Norman Wareham and James Ritter. Under the corporate
governance listing standards of the Nasdaq Stock Market to which the Company is not
legally subject but with which the Board desires to voluntarily and substantially comply,
Messrs. Wareham and Ritter are &#147;independent&#148; directors. The Audit and Finance
Committee is responsible for meeting with the Company&#146;s independent accountants to
review the proposed scope of the annual audit of the Company&#146;s books and records,
reviewing the findings of the independent accountants upon completion of the annual audit,
and reporting to the Board of Directors with respect thereto. All of the members of the
Audit Committee are considered by the Board to be financially literate and the Board has
determined that Mr. Wareham is deemed to be an &#147;Audit Committee financial
expert&#148; as defined by the rules of the U. S. Securities and Exchange Commission
(&#147;SEC&#148;). </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Financial Statement Review</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has: (a) reviewed and discussed the audited financial statements with the
management of the Company; (b) discussed with the Company&#146;s independent auditors,
Grant Thornton LLP, the matters required to be discussed by Statement on Auditing
Standards No. 61; (c) received from the Company&#146;s independent auditors the written
disclosures and the letter required by Independence Standards Board Standard No. 1, and
has discussed with the Company&#146;s independent auditors their independence; and (d)
based on the review and discussions referred to in clauses (a), (b) and (c) above,
recommended to the Board that the audited financial statements be included in the
Company&#146;s Annual Report on Form 10-K for fiscal year 2003 for filing with the SEC. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Independent Auditors</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors appointed the accounting firm of Grant Thornton LLP to
serve as the Company&#146;s independent accountants for the fiscal year ending December
31, 2003, 2002 and 2001. Upon the recommendation of the Audit Committee, the Board has
selected Grant Thornton LLP as the Company&#146;s independent auditor for fiscal year
2004. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit Committee Policies
and Procedures For Pre-Approval of Independent Auditor Services</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following describes the Audit Committee&#146;s policies and procedures regarding
pre-approval of the engagement of the Company&#146;s independent auditor to perform audit
as well as permissible non-audit services for the Company. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
audit services, the independent auditor will provide the Committee with an engagement
letter during the March-May quarter of each year outlining the scope of the audit services
proposed to be performed in connection with the audit of the current fiscal year. If
agreed to by the Committee, the engagement letter will be formally accepted by the
Committee at an Audit Committee meeting held as practicably as possible following receipt
of the engagement letter. The independent auditor will submit to the Committee for
approval an audit services fee proposal after acceptance of the engagement letter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
non-audit services, company management may submit to the Committee for approval (during
June or September of each fiscal year) the list of non-audit services that it recommends
the committee engage the independent auditor to provide for the fiscal year. The list of
services must be detailed as to the particular service and may not call for broad
categorical approvals. Company management and the independent auditor will each confirm to
the Audit Committee that each non-audit service on the list is permissible under all
applicable legal requirements. In addition to the list of planned non-audit services, a
budget estimating non-audit service spending for the fiscal year may be provided. The
Committee will consider for approval both the list of permissible non-audit services and
the budget for such services. The Committee will be informed routinely as to the non-audit
services actually provided by the independent auditor pursuant to this pre-approval
process. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
ensure prompt handling of unexpected matters, the Audit Committee delegates to its
Chairperson the authority to amend or modify the list of approved permissible non-audit
services and fees. The Chairperson will report any action taken pursuant to this
delegation to the Committee at its next meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
audit and non-audit services provided to the Company are required to be pre-approved by
the Committee. The Chief Financial Officer of the Company will be responsible for tracking
all independent auditor fees against the budget for such services and report at least
annually to the Audit Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing report is submitted by the members of the Audit Committee. </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Audit Committee of the Board of Directors</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Norman Wareham (Chairman)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>James Ritter</FONT></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Audit and Non-Audit Fees</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit Fees</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
paid Grant Thornton LLP approximately $33,000 in audit and review fees for fiscal year
2003 and approximately $32,000 in audit and review fees for fiscal year 2002. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit-Related Fees</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company did not pay Grant Thornton LLP any audit-related fees for fiscal year 2003 or for
fiscal year 2002 for services reasonably related to the performance of the audit or review
of the Company&#146;s financial statements other than those reported in the foregoing
&#147;Audit Fees&#148; subsection. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Tax Fees</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company did not pay Grant Thornton LLP any tax fees for fiscal year 2003 or for fiscal
year 2002 for professional services rendered to the Company for tax compliance, tax
advice, tax planning and/or the preparation of tax returns. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>All Other Fees</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company did not pay Grant Thornton LLP any other fees for fiscal year 2003 or for fiscal
year 2002 for products and services other than those reported in the foregoing &#147;Audit
Fees&#148; subsection. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRINCIPAL STOCKHOLDERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table sets forth the
number of shares of Common Stock beneficially owned as of December 20, 2004 by: (i) each
person known by the Company to be the beneficial owner of 5% or more of such class of
securities, (ii) each director of the Company and (iii) all directors and officers of the
Company as a group. </FONT></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Directors, Nominees<BR>
<U>and 5% Stockholders</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number of<BR>
Shares of<BR>
<U>Common Stock(1)</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Percent of<BR>
Outstanding<BR>
<U>Common Stock(1)</U></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael Higgins (2)</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,488,000</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.6%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Steve Komar (3)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,427,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.4%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Norman Wareham (4)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>James McCubbin (5)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,366,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>James Ritter (6)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Mark Mirabile (7)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,536,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.8%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Mark Fuller (8)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,360,991</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>John Crowley (9)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,360,993</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Jay Wright (10)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,360,993</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5.1%</FONT></TD></TR>
</TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Daniel Turissini (11)</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,726,852</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.2%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Fred Thorton (12)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,851,852</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;6.9%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Richard Montgomery (13)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,939,352</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;7.3%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>All directors and</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>officers as a group</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8 persons) (14)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,954,836</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37.3%</FONT></TD></TR>
</TABLE>



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<HR SIZE=1 NOSHADE WIDTH=15% COLOR=BLACK ALIGN=LEFT>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assumes
in the case of each stockholder listed in the above list that all
               presently exercisable warrants or options held by such stockholder were
fully                exercised by such stockholder, without the exercise of any warrants
or options                held by any other stockholders. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
address of Mr. Higgins is 12408 Rivers Edge Drive, Potomac, Maryland 20854. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
(i) 865,000 shares of Common Stock purchased by Mr. Komar from the                Company
on July 8, 2002 in a private transaction without registration under the
               Securities Act of 1933, pursuant to the private offering exemption under
Section                4(2) thereof, (ii) 500,000 shares of Common Stock that may be
purchased by Mr.                Komar from the Company at a price of $0.07 per share
until July 7, 2012,                pursuant to a stock option grant to him on January 7,
2002, (iii) 12,500 shares                of Common Stock at an exercise price of $0.09
per share through April 24, 2013                pursuant to a stock option granted to him
on April 24, 2003, and (iv) 50,000                shares of Common Stock at an exercise
price of $0.13 per share through December                31, 2013 pursuant to a stock
option granted to him on December 31, 2003, with                all such shares fully
vesting on December 31, 2004 or by an earlier vesting                decision as may be
granted by the Compensation Committee. Does not include (i)                12,500 shares
of Common Stock that may be purchased by Mr. Komar from the                Company at a
price of $0.09 per share until April 24, 2013 pursuant to a stock                option
grant to him on April 24, 2003 which shall vest on April 21, 2005 or by                an
earlier vesting decision as may be granted by the Compensation Committee,,
               and (ii) a warrant to purchase up to 1,333,333 shares of Common Stock at
an                exercise price of $0.235 granted to Mr. Komar on July 14, 2004, which
shall vest                upon a determination by the Compensation Committee that the
Company has achieved                certain performance goals which change each year. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
(i) 37,500 shares of Common Stock that may be purchased by Mr. Wareham
               from the Company at a price of $0.09 per share until April 24, 2013,
pursuant to                a stock option granted to him on April 24, 2003 under the
Plan, and (ii) 50,000                shares of Common Stock that may be purchased by him
at a price of $0.13 per                share through December 31, 2013, under an option
granted on December 31, 2003,                with all such shares vesting on December 31,
2004. Does not include 12,500                shares of Common Stock that may be purchased
by him at a price of $0.09 per                share through April 24 2013, under an
option granted on April 24, 2003, with all                such shares vesting on April
24, 2005. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
(i) 865,000 shares of Common Stock purchased by Mr. McCubbin from the
               Company on July 8, 2002 in a private transaction without registration
under the                Securities Act of 1933, pursuant to the private offering
exemption under Section                4(2) thereof, (ii) 500,000 shares of Common Stock
that may be purchased by Mr.                McCubbin from the Company at a price of $0.17
per share until January 2, 2011,                pursuant to a stock option grant to him
on January 2, 2001, and (iii) includes                1,000 shares of Common stock that
may be purchased by Mr. McCubbin from the                Company at a price of $1.35 per
share until July 3, 2010, pursuant to a stock                option granted to him on
July 3, 2000. Does not include a warrant to purchase up                to 1,333,333
shares of Common Stock at an exercise price of $0.235 granted to                Mr.
McCubbin on July 14, 2004, which shall vest upon a determination by the
               Compensation Committee that the Company has achieved certain performance
goals                which change each year. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21 </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
(i) 1,500 shares of Common Stock owned directly by Mr. Ritter, (ii)                37,500
shares of Common Stock that may be purchased by Mr. Ritter from the
               Company at a price of $0.09 per share until April 24, 2013, pursuant to a
stock                option granted to him on April 24, 2003 under the Plan, and (iii)
50,000 shares                of Common Stock that may be purchased by him at a price of
$0.13 per share                through December 31, 2013, under an option granted on
December 31, 2003, with                all such shares vesting on December 31, 2004. Does
not include 12,500 shares of                Common Stock that may be purchased by him at
a price of $0.09 per share through                April 24 2013, under an option granted
on April 24, 2003, with all such shares                vesting on April 24, 2005. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
(i) 865,000 shares of Common Stock purchased by Mr. Mirabile from the
               Company on July 8, 2002 in a private transaction without registration
under the                Securities Act of 1933, pursuant to the private offering
exemption under Section                4(2) thereof, (ii) 170,000 shares of Common Stock
issued to Mr. Mirabile in                December 1998 in connection with the Company&#146;s
prior acquisition of                Eclipse, (iii) 500,000 shares of Common Stock that
may be purchased by Mr.                Mirabile from the Company at a price of $0.17 per
share until January 2, 2011,                pursuant to a stock option grant to him on
January 2, 2001, and (iv) 1,000                shares of Common Stock that may be
purchased by Mr. Mirabile from the Company at                a price of $1.35 per share
until July 3, 2010, pursuant to a stock option                granted to him on July 3,
2000. Does not include a warrant to purchase up to                1,333,333 shares of
Common Stock at an exercise price of $0.235 granted to Mr.                Mirabile on
July 14, 2004, which shall vest upon a determination by the                Compensation
Committee that the Company has achieved certain performance goals                which
change each year. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
1,360,991 shares of Common Stock issued to Mr. Fuller in March 2004 in
               connection with the Company&#146;s acquisition of Chesapeake Government
               Technologies, Inc. (&#147;Chesapeake&#148;). Does not include a warrant to
               purchase up to 1,814,658 shares of Common Stock at an exercise price of
$0.235                issued to Mr. Fuller in connection with the Company&#146;s
acquisition of                Chesapeake, which warrant will become exercisable in the
event Mr. Fuller                achieves certain performance criteria as set forth in the
acquisition agreements                entered into between the Company, Chesapeake and
Mr. Fuller in connection with                such acquisition. Mr. Fuller serves as the
CEO of Chesapeake, a wholly-owned                subsidiary of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
1,360,993 shares of Common Stock issued to Mr. Crowley in March 2004 in
               connection with the Company&#146;s acquisition of Chesapeake. Does not
include a                warrant to purchase up to 1,814,658 shares of Common Stock at an
exercise price                of $0.235 issued to Mr. Crowley in connection with the
Company&#146;s                acquisition of Chesapeake, which warrant will become
exercisable in the event                Mr. Crowley achieves certain performance criteria
as set forth in the                acquisition agreements entered into between the
Company, Chesapeake and Mr.                Crowley in connection with such acquisition.
Mr. Crowley serves as the President                of Chesapeake, a wholly-owned
subsidiary of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
1,360,993 shares of Common Stock issued to Mr. Wright in March 2004 in
               connection with the Company&#146;s acquisition of Chesapeake. Does not
include a                warrant to purchase up to 1,814,658 shares of Common Stock at an
exercise price                of $0.235 issued to Mr. Wright in connection with the
Company&#146;s acquisition                of Chesapeake, which warrant will become
exercisable in the event Mr. Wright                achieves certain performance criteria
as set forth in the acquisition agreements                entered into between the
Company, Chesapeake and Mr. Wright in connection with                such acquisition.
Mr. Wright serves as a consultant to the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
2,726,852 shares of Common Stock issued to Mr. Turissini in connection
               with the Company&#146;s acquisition in October 2004 of Operational
Research                Consultants, Inc. (&#147;ORC&#148;), of which 1,851,852 shares
are held in                escrow and subject to possible return to the Company in the
event ORC does not                achieve certain performance levels of a post-closing
basis as provided in such                acquisition agreements. Mr. Turissini serves as
the C.E.O. of ORC, a                wholly-owned subsidiary of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22 </FONT></P>

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<HR SIZE=5 COLOR=GRAY NOSHADE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(12)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
1,851,852 shares of Common Stock issued to Mr. Thornton in connection                with
the Company&#146;s acquisition in October 2004 of ORC, of which all such
               shares are held in escrow and subject to possible return to the Company in
the                event ORC does not achieve certain performance levels of a
post-closing basis as                provided in such acquisition agreements. Mr.
Thornton is the retired C.E.O. of                ORC and resides at 1540 Crystal Lake
Dr., Portsmouth, VA 23701. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(13)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
1,939,352 shares of Common Stock issued to Mr. Montgomery in connection
               with the Company&#146;s acquisition in October 2004 of ORC, of which
1,851,852                shares are held in escrow and subject to possible return to the
Company in the                event ORC does not achieve certain performance levels of a
post-closing basis as                provided in such acquisition agreements. Mr.
Montgomery serves as a consultant                to the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(14)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
the shares referred to as included in notes (3), (4), (5), (6), (7),                (8),
(9) and (11) above. Does not include the shares referred to as not included
               in notes (2), (3), (4), (5), (6), (7), (8), (9), and (10) above. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Barron Partners Stock
Ownership </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
October 2004, the Company completed a financing with Barron Partners L.P.
(&#147;Barron&#148;) for an aggregate amount of $3,580,000, under a preferred stock
purchase agreement and related agreements. As a result of the financing, Barron owns
2,045,714 shares of the Company&#146;s Series A Convertible Preferred Stock, which are
convertible into a total of 20,457,140 shares of Common Stock, and Barron owns warrants
entitling it to purchase a total of 10,228,571 shares of Common Stock. Barron&#146;s
rights to convert such Series A Convertible Preferred Stock and/or to exercise such
warrants are subject to contractual limitations which restrict its ability to acquire such
shares at any time in the event Barron would own more than a total of 4.99% of the
outstanding shares of Common Stock following such conversion and/or exercise. The
aforementioned restriction may be removed by Barron upon 61 days notice to the Company
from Barron, but in the event that Barron elects to remove such restriction, then Barron
and its affiliates can only vote the shares of Common Stock held by Barron and its
affiliates which result in Barron and its affiliates having no more than 22% of the total
voting power of all outstanding shares of Common Stock at any time. Assuming that Barron
elects to remove the restriction on its ability to own no more than 4.99% of the
outstanding shares of Common Stock and assuming that the Company&#146;s stockholders
approve the proposed increase in the total amount of authorized shares of Common Stock of
the Company, then in the event Barron were to convert all of its Series A Convertible
Preferred Stock into shares of Common Stock and Barron were to exercise all of its
warrants to purchase shares of Common Stock, then it would own an aggregate of 43% of the
then outstanding shares of Common Stock, subject to the above-described voting
restriction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certain Relationships
and Related Transactions </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Promissory Notes with
Executive Officers of the Company</I> </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to stock purchase agreements entered into on July 8, 2002, between the Company and each of
Messrs. Komar, McCubbin and Mirabile, the Company privately sold 865,000 shares of Common
Stock to each such person without registration under the Securities Act of 1933, pursuant
to the private offering exemption under Section 4(2) thereof, in consideration for the
issuance by each such person to the Company of a three-year full-recourse promissory note
in the principal amount of $181,650 (which equals $0.07 per share, being the closing price
of the Common Stock on July 8, 2002) and bearing interest at 5% per annum, with equal
annual principal payments of $60,550 being due on July 5th of each year. In 2003, the
largest aggregate amount of indebtedness outstanding under these promissory notes were the
following approximate amounts for each such person: Mr. Komar &#150; $64,000; Mr. McCubbin
&#150; $64,000; and Mr. Mirabile &#150; $64,000. As of December 20, 2004, the amount of
indebtedness outstanding under these promissory notes were the following approximate
amounts for each such person: Mr. Komar &#151; $44,000; Mr. McCubbin &#151; $44,000; and
Mr. Mirabile &#151; $44,000. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Acquisition of Chesapeake
Government Technologies, Inc.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April&nbsp;30, 2004, the Company closed upon the acquisition of all the issued and
outstanding shares of Chesapeake Government Technologies, Inc. (&#147;Chesapeake&#148;),
pursuant to the terms of an Agreement and Plan of Merger, dated as of March&nbsp;24, 2004,
by and among the Company, Chesapeake Acquisition Corporation, Chesapeake and Mark Fuller,
John Crowley and Jay Wright, who were the sole shareholders of Chesapeake. The Company
issued 4,082,980 shares of Common Stock to Messrs.&nbsp;Fuller, Crowley and Wright as the
sole shareholders in consideration for all of the issued and outstanding shares of
Chesapeake owned by them. In conjunction with this closing, the sole shareholders also
entered into an escrow agreement with the Company and deposited 3,266,384 shares of the
4,082,980 newly issued shares of Common Stock into escrow. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
3,266,384 shares of Common Stock placed into escrow will be released to
Messrs.&nbsp;Fuller, Crowley and Wright in the event of the satisfaction of certain
conditions set forth in the merger agreement, which provides that during the period
commencing after the closing of the merger and ending on December&nbsp;31, 2005, the
3,266,384 shares of common stock will be released to Messrs.&nbsp;Fuller, Crowley and
Wright in a ratio based on the amount of revenues actually received by the Company from
the business acquired from Chesapeake. The December&nbsp;31, 2005, escrow expiration date
may be extended for one additional year by the Company in the event we determine that
Messrs.&nbsp;Fuller, Crowley and Wright have achieved certain performance levels in the
latter part of 2005. In the event the Company does not receive certain levels of revenues
from the business acquired from Chesapeake, then any of the 3,266,384 shares of Common
Stock to which Messrs.&nbsp;Fuller, Crowley and Wright have not become entitled to receive
will be returned to the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
merger agreement also provides that in the event the revenues actually received by the
Company from the business acquired from Chesapeake equals or exceeds certain levels before
December&nbsp;31, 2005, then the Company will prepare a proxy statement for its then next
ensuing Annual Meeting of Stockholders to ask the Company&#146;s stockholders to vote upon
a proposal to increase the size of the Board of Directors from a total of seven persons to
a total of nine persons, with one of the candidates for such two newly created director
positions to be nominated by the sole shareholders and with the other candidate to be
mutually agreed upon between the Company and the sole shareholders; provided, however that
at any time after Messrs.&nbsp;Fuller, Crowley or Wright are no longer employed by the
Company, then the persons who are serving on our Board of Directors as designees of
Messrs.&nbsp;Fuller, Crowley and Wright shall resign from their positions as directors of
WidePoint. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24 </FONT></P>


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<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the terms of the merger agreement, the Company caused Chesapeake to enter into
employment/non-competition agreements with each of Mark Fuller and John Crowley and a
consulting agreement with Jay Wright. As part of the potential compensation that may be
earned by each of Messrs.&nbsp;Fuller, Crowley and Wright, the Company issued to each such
person a warrant to purchase 1,814,658 additional shares of Common Stock at an exercise
price of $0.235 per share, with each such warrant only being exercisable in the event that
the revenues actually received by the Company from the business acquired from Chesapeake
exceed the maximum levels required for the sole shareholders to receive all of the
3,266,384 shares of Common Stock placed in escrow. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Acquisition of
Operational Research Consultants, Inc.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;25, 2004, the Company completed the acquisition of Operational Research
Consultants, Inc. (&#147;ORC&#148;) a privately held IT and engineering firm providing
mission-critical sensitive and strategic information security solutions to the United
States Government. To finance the acquisition, the Company completed a convertible
preferred financing with Barron, an accredited investor, and utilized a line of credit
which the Company maintains with RBC-Centura Bank. The Company entered into a stock
purchase agreement with ORC and Fred Thornton, Richard Montgomery and Daniel Turissini,
the sole stockholders of ORC, to effectuate the acquisition, and entered into a preferred
stock purchase agreement and a registration rights agreement with Barron in connection
with the financing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the stock purchase agreement between the Company, ORC and Messrs. Thornton, Montgomery
and Turissini, the Company agreed to purchase and acquire all of ORC&#146;s outstanding
common stock. In consideration for the ORC stock, the Company will pay Messrs. Thornton,
Montgomery and Turissini an aggregate of $5,000,000 payable in a combination of cash,
promissory note and Common Stock, less a receivables holdback. The receivables holdback
will be held in escrow and released at certain milestone dates, over a three year period
pursuant to a certain formula. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate consideration to be paid by the Company to Messrs. Thornton, Montgomery and
Turissini shall be adjusted in the event that ORC&#146;s 2004 revenue is less than
$8,000,000 and for any set-offs, recoupments and/or payments of losses. The agreement also
provides a clawback provision in the event that the losses or indemnity amounts exceed the
receivables holdback. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25 </FONT></P>

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<!-- MARKER PAGE="sheet: 31; page: 31" -->
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<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STOCK PERFORMANCE CHART </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following chart compares the cumulative total stockholder return for the Common Stock of
the Company (and its predecessors) with the Russell 2000 and the RDG Technology Composite
for the five years ended December 31, 2003. </FONT></P>





<IMG SRC="wpchart.gif">




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% align=center>
<TR>
     <TD COLSPAN=7><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=22% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1998</FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999</FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2001</FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2002</FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD></TR>
<TR>
     <TD COLSPAN=7><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$ 100.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$  60.36</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$   4.30</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$   3.45</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$   4.14</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$   3.59</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Corporation</FONT></TD></tr>
<TR>
     <TD COLSPAN=7><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Russell 2000<BR>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>121.26</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>117.59</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>120.52</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>95.83</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>141.11</FONT></TD></TR>
<TR>
     <TD COLSPAN=7><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RDG Technology</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>157.96</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>117.38</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>104.39</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76.77</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>104.01</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Composite</FONT></TD></TR>
<TR>
     <TD COLSPAN=7><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The foregoing Stock Performance Chart
shall not be deemed to be filed with the Securities and Exchange Commission for purposes
of the 1934 Act, nor shall such material be deemed to be incorporated by reference in any
past or subsequent filing by the Company under the 1934 Act or the 1933 Act. </FONT></P>




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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL TWO &#150;
AMENDMENT TO INCREASE SHARES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is presently authorized to issue 50,000,000 shares of Common Stock, par value
$0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. At
December 20, 2004, (i) a total of 26,680,949 shares of Common Stock were outstanding, (ii)
20,707,014 shares of Common Stock were reserved for issuance under a portion of the
outstanding shares of the Series A Convertible Preferred Stock of the Company and a
portion of the outstanding options and warrants issued by the Company, (iii) 23,212,543
additional shares of Common Stock are currently needed by the Company for reservation
under the remaining portion of the outstanding shares of the Series A Convertible
Preferred Stock of the Company and the remaining portion of the outstanding options and
warrants issued by the Company, (iv) 4,000,000 additional shares are needed by the Company
to satisfy a contractual requirement by Barron Partners LP (&#147;Barron&#148;) for such
shares to be reserved for issuance under the Company&#146;s 1997 Stock Incentive Plan and
(v) an additional number of shares of Common Stock is desired by the Company to effect
potential acquisitions, financing transactions and other beneficial transactions. As such,
on December 1, 2004, the Board of Directors of the Company approved, subject to approval
by the stockholders of the Company, of an amendment to the Company&#146;s Amended and
Restated Certificate of Incorporation to increase the number of authorized shares of
Common Stock from 50,000,000 shares to 110,000,000 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
October 2004, the Company entered into equity financing transactions with Barron Partners
LP (&#147;Barron&#148;) pursuant to which Barron paid $3,580,000 to the Company in
consideration for the issuance by the Company to Barron of (i) 2,045,714 shares of the
Company&#146;s Series A Convertible Preferred Stock, which are convertible into an
aggregate of 20,457,140 shares of Common Stock, and (ii) warrants to purchase an
additional 10,228,571 shares of Common Stock at $0.40 per share. The Company used the net
proceeds from this financing transaction with Barron to pay part of the purchase price in
the Company&#146;s acquisition that same month of Operational Research Consultants, Inc.
(&#147;ORC&#148;). At the time of the closing of such equity financing transaction between
the Company and Barron, the Company did not have a sufficient amount of unreserved shares
of Common Stock to underlie the total number of shares of Series A Convertible Preferred
Stock and warrants to be issued by the Company to Barron. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to allow the Company to close upon this equity financing transaction with Barron,
the following occurred: (i) the members of the executive management of the Company and its
Chesapeake subsidiary (Messrs. Komar, McCubbin, Mirabile, Fuller, Crowley and Wright)
agreed with the Company to amend the terms of warrants previously issued by the Company to
such persons in order to make the exercisability of such warrants thereafter contingent
upon the Company&#146;s stockholders approving an increase in the total number of
authorized shares of Common Stock, thereby allowing the 9,443,974 shares of Common Stock
previously reserved for issuance under such warrants to become available to be reserved
for issuance under a portion of the Series A Convertible Preferred Stock and warrants to
be issued by the Company to Barron; and (ii) the Company and Barron agreed that the
remaining 13,542,855 shares of Common Stock underlying the balance of the Series A
Convertible Preferred Stock and warrants to be issued by the Company to Barron would be
contingent upon the Company&#146;s stockholders approving an increase in the total number
of authorized shares of Common Stock. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
amendment to the warrants previously issued by the Company to the above-referenced members
of the executive management of the Company and its Chesapeake subsidiary provide that the
Company will seek the approval of its stockholders to increase the total number of
authorized shares of Common Stock of the Company in order to allow for a sufficient number
of authorized shares of Common Stock to again be reserved for issuance under such
warrants. Similarly, the financing agreements between the Company and Barron provide that
the Company is required to seek and obtain the approval of its stockholders to increase
the total number of authorized shares of Common Stock of the Company in order to allow for
a sufficient number of authorized shares of Common Stock to be reserved for issuance under
all the shares of Series A Convertible Preferred Stock and all the warrants issued by the
Company to Barron. The financing agreements between the Company and Barron further provide
that in the event the Company is unable to obtain the necessary approval of its
stockholders to increase the total number of authorized shares of Common Stock in an
amount which is sufficient to provide for enough shares to be reserved under the
securities issued to Barron, as well as to satisfy an additional requirement by Barron for
the Company to amend its 1997 Stock Incentive Plan to reserve for issuance thereunder 10%
of the outstanding shares of the Company&#146;s Common Stock for future issuance to
employees of the Company and its subsidiaries to better incentivize such employees, then
the Company must continue to thereafter seek such stockholders approval until obtained.
Thus, the failure by the Company&#146;s stockholders to approve this Proposal Two to
increase the total number of authorized shares of Common Stock will result in the Company
being required to incur the additional costs needed to call and conduct additional and
repeated meetings of stockholders of the Company until such increase in the total number
of authorized shares of Common Stock of the Company is approved. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company also needs to increase its total number of authorized shares of Common Stock
because in the Company&#146;s acquisition of ORC, the Company agreed to reserve at least
1,111,111 shares of Common Stock for issuance under stock options to be issued to
continuing employees of ORC who will be working to grow the business of ORC as a new
subsidiary of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company further desires to increase its total number of authorized shares of Common Stock
because the Company believes the additional shares will be necessary to provide the
Company with the flexibility of having a sufficient amount of equity securities available
to effect potential acquisitions, financing transactions and other beneficial transactions
in the future. These acquisitions and/or other transactions, if effected, would be
expected to result in increased revenues and asset value, which, in turn, would be
expected to enhance shareholder value. In addition, the Board believes that the increase
in the total number of authorized shares of Common Stock will enable the Company to seek
alternative sources of financing through the possible private and/or public sale of its
securities. This anticipated flexibility in financing options would provide the Company
with the ability to seek additional potential acquisitions and to obtain additional funds
for working capital as may be necessary in the future. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval
of the proposed amendment to the Company&#146;s Amended and Restated Certificate of
Incorporation to increase the number of authorized shares of Common Stock from 50,000,000
shares to 110,000,000 shares requires the affirmative vote of the holders of at least a
majority of the total number of outstanding shares of Common Stock. A copy of this
proposed amendment to the Company&#146;s Amended and Restated Certificate of Incorporation
is attached hereto as Exhibit A. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MANAGEMENT RECOMMENDS THAT YOU
VOTE TO APPROVE THE PROPOSED AMENDMENT TO THE COMPANY&#146;S CERTIFICATE OF INCORPORATION
TO INCREASE THE TOTAL NUMBER OF SHARES OF COMMON STOCK THAT THE CORPORATION SHALL HAVE
AUTHORITY TO ISSUE.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL THREE &#150;
PROPOSED AMENDMENT TO 1997 STOCK INCENTIVE PLAN </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 1, 2004, the Board of Directors of the Company approved an amendment to the
Company&#146;s 1997 Stock Incentive Plan (the &#147;Plan&#148;) providing for an increase
of 7,000,000 shares in the total number of shares of Common Stock authorized for issuance
under the Plan from 3,000,000 shares to 10,000,000 shares. At December 20, 2004, there
were only 888,000 shares available for the granting of additional options in the future.
Pursuant to contractual commitments entered into by the Company in its acquisition of ORC,
the Company is required to grant additional options to the continuing employees of ORC to
acquire up to 1,111,111 shares of Common Stock. Pursuant to additional contractual
commitments entered into between the Company and Barron pursuant to which Barron provided
an aggregate of $3,580,000 in equity financing to the Company for the Company&#146;s
acquisition of ORC, Barron required the Company to agree to amend the Plan to increase the
total number of shares of Common Stock authorized for issuance under the Plan to equal at
least 10% of the total number of outstanding shares of Common Stock because Barron desires
the Company to grant to the employees of the Company and its subsidiaries a greater number
of options to purchase shares of Common Stock in order to incentivize all employees to a
greater degree and to more closely align the interests of the Company&#146;s employees
with the interests of the Company&#146;s stockholders through increased ownership of the
Common Stock of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval
of the amendment to the Plan by the holders of a majority of the Company&#146;s
outstanding shares of Common Stock present or represented at the Annual Meeting is
required for the amendment to be duly adopted and become effective. In the event the
stockholders of the Company do not approve this amendment to the Plan, then the
contractual agreements entered into between Barron and the Company will require the
Company incur the additional costs needed to call and conduct additional and repeated
meetings of stockholders of the Company until such amendment to the Plan is approved. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29   </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following description of the material provisions of the Plan is qualified by reference to
the full provisions of the Plan, a copy of which is set forth as Exhibit B to this Proxy
Statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Administration.</I>         The
Plan is administered by the Compensation Committee (the           &#147;Committee&#148;)
of the Board of Directors of the Company consisting of           directors appointed by
the Board. The members of the Committee are not eligible           to receive options
under the Plan. The Committee has the authority to determine           the employees to
whom options are granted and, subject to the provisions of the           Plan, the terms
of the options granted and whether such options are incentive           stock options
under Section 422A of the Code (&#147;ISOs&#148;) or non-qualified           stock
options (&#147;NQSOs&#148;). (ISOs and NQSOs granted under the Plan are
          collectively referred to hereinafter as &#147;Options.&#148;)  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Purpose.</I>         The
purpose of the Plan is to attract, retain and motivate officers and key
          employees of the Company and its subsidiaries and to provide a means by which
          such persons may be given an opportunity to acquire a proprietary interest in
          the Company through the ownership of Common Stock.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Eligible
Employees.</I> The Plan provides for the granting of ISOs only to executive officers and
key employees of the Company and its subsidiaries that are selected by the Committee.
Approximately 45 persons currently are eligible to participate under the Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Number
of Authorized Shares.</I> Subject to possible adjustment in the event of a
recapitalization, stock split or similar transaction, a total of 3,000,000 shares of
Common Stock currently are authorized for possible issuance under the Plan. The proposed
amendment to the Plan calls for the authorization of an additional 7,000,000 shares of
Common Stock over the amount previously authorized for issuance under the Plan. As of
December 20, 2004, Options to purchase a total of 2,112,000 shares of Common Stock under
the Plan, at prices ranging from $0.07 to $1.35 per share, were outstanding. Therefore,
only 888,000 shares are available for the granting of additional options in the future,
which amount of shares are insufficient for the Company to satisfy its current contractual
commitments to each of Barron and the continuing employees of ORC, as well as provide an
additional amount of shares to be available for the granting of additional Options under
the Plan to further incentivize the employees of the Company and its subsidiaries. Shares
of Common Stock subject to Options that lapse or are canceled in the future will become
available for issuance pursuant to other Options to be granted under the Plan. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Option
Exercise and Payment.</I> The aggregate fair market value of the shares of Common Stock
with respect to which ISOs granted under the Plan are exercisable for the first time by an
optionee during any calendar year may not exceed $100,000. Furthermore, no ISO may be
granted under the Plan to any person who, as the time of the grant, owns capital stock of
the Company possessing more than 10% of the total combined voting power of the Company,
unless the exercise price of the ISO is at least 110% of the fair market value on the date
of grant of the shares of Common Stock subject to the ISO, and the term of the ISO does
not exceed five years from the date of grant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price of ISOs as well as NQSOs under the Plan may not be less than the fair
market value of the Common Stock on the date of the Option grant. In some cases, as
discussed above, the exercise price of ISOs may not be less than 110% of the fair market
value of the Common Stock on the date of grant. &#147;Fair market value&#148; is defined
under the Plan generally to mean the high and low sales prices of the Common Stock on a
particular date as reported by the NASDAQ SmallCap Market (or such other national
securities exchange or interdealer quotation system on or in which the shares of Common
Stock are listed or included in the future). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan currently requires that the exercise price of an ISO granted thereunder be paid for
(i) in cash, (ii) in shares of Common Stock already owned by the optionee and valued at
their fair market value on the date of exercise of the Option, (iii) by requesting the
Company to withhold from the number of shares of Common Stock otherwise issuable upon
exercise of the Option that number of shares of Common Stock having an aggregate fair
market value on the date of exercise equal to the Option price for all the shares of
Common Stock subject to such exercise or (iv) by a combination of (i), (ii) and/or (iii)
above, in the manner provided in the Option agreement entered into in connection with each
Option. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Option granted under the Plan may be exercised after the expiration of 10 years from the
date it was granted. No Option granted under the Plan will become exercisable until at
least six months following its date of grant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the above limitations, provisions relating to the time or times at which an Option may
be exercisable will be included in the Option agreement entered into by the Company and an
optionee upon the granting of an Option. Options granted under the Plan are
non-transferable by the optionee otherwise than by will or the laws of descent and
distribution and are exercisable during the optionee&#146;s lifetime only by him or her. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Adjustments
Upon Changes in Capitalization.</I> In the event a change in the Company&#146;s
capitalization results from a stock split or payment of a stock dividend or any other
increase or decrease in the number of shares of Common Stock effected without the receipt
of consideration, appropriate adjustments will be made in the exercise price of and number
of shares subject to all outstanding Options. In the event of a proposed dissolution or
liquidation of the Company, each Option will terminate unless otherwise provided by the
Board of Directors. In the event of a proposed sale of substantially all of the assets of
the Company, or the merger of the Company with or into another corporation, outstanding
Options will be assumed or equivalent options will be substituted unless the Board of
Directors makes the Options fully exercisable prior to the merger. If the Board makes an
Option terminate upon a merger or sale of assets, the Board will notify the optionee that
the Option will be fully exercisable for a period of 30 days from the date of such notice
and the Option will terminate upon the expiration of such period. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amendment
and Termination of the Plan.</I> The Plan provides that the Board of Directors may amend
the Plan at any time or from time to time or may terminate it without the approval of
shareholders; provided, however, that the approval of the holders of a majority of the
outstanding shares of the Company entitled to vote is required for any amendment which
would (i) materially increase the benefits accruing to participants under the Plan, (ii)
materially increase the number of shares of Common Stock which may be issued under the
Plan, or (iii) materially modify the requirements as to eligibility for participation in
the Plan. No such action by the Board of Directors or shareholders may unilaterally alter
or impair any Option previously granted under the Plan without the consent of the
optionee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Federal
Income Tax Consequences.</I> The grant or exercise of an ISO generally will not result in
taxable income to the optionee. However, the amount by which the fair market value of the
shares of Common Stock at the time of the exercise of an ISO exceeds the exercise price
will be included in determining the optionee&#146;s alternative minimum tax under the
Code. Generally, if shares acquired upon the exercise of an ISO are sold more than two
years from the date of grant of the ISO and more than one year from the date of exercise,
the amount, if any, by which the sale price of such shares exceeds the exercise price will
qualify as a long-term capital gain and will not be subject to ordinary income tax rates.
If those holding periods are satisfied, no deduction will be available to the Company upon
the sale of shares acquired through the exercise of an ISO. If the optionee disposes of
the shares before expiration of those holding periods, the optionee will realize at the
time of such disposition taxable ordinary income equal to the lesser of (i) the excess of
the shares&#146; fair market value on the date of exercise over the exercise price or (ii)
the optionee&#146;s actual gain, if any, on the purchase and sale. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
grant of a NQSO generally will not result in taxable income to the optionee. However, upon
exercise of a NQSO, the excess of the fair market value of the shares of Common Stock on
the exercise date over the exercise price generally will constitute ordinary taxable
income to the optionee. In the event of a subsequent sale of shares acquired upon exercise
of a NQSO, the amount, if any, by which the sale price of such shares after the date of
exercise of the NQSO exceeds the exercise price of the NQSO will generally qualify as a
capital gain. The Company will be entitled to a deduction for federal income tax purposes
at the same time and in the same amount as the ordinary income recognized by the optionee,
provided any federal income tax withholding requirements are satisfied. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THE BOARD OF DIRECTORS RECOMMENDS
THAT STOCKHOLDERS VOTE IN FAVOR OF THE AMENDMENT AUTHORIZING THE ADDITIONAL SHARES OF
COMMON STOCK FOR POSSIBLE ISSUANCE UNDER THE PLAN.</B> </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL FOUR &#150;
INDEPENDENT ACCOUNTANTS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors has appointed the accounting firm of Grant Thornton LLP
to serve as the Company&#146;s independent accountants for the current fiscal year ending
December 31, 2004. The firm was retained during 2001 as part of a bid process to replace
the Company&#146;s prior independent accountants, Arthur Andersen, LLP. The Company
believes that Grant Thornton has performed its duties efficiently and professionally since
its appointment in 2001. The Company also believes that Grant Thornton is highly regarded
in its field and has a thorough understanding of the Company&#146;s business. A resolution
will be presented at the Annual Meeting to ratify the appointment by the Company&#146;s
Board of Directors of Grant Thornton, LLP to serve as the Company&#146;s independent
public accountants for the fiscal year of 2004. A majority vote of the Company&#146;s
outstanding shares of Common Stock present or represented at the Annual Meeting is
required for ratification. A representative of Grant Thornton, LLP will be present at the
Annual Meeting to answer any questions concerning the Company&#146;s financial statements
and to make a statement if he desires to do so. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE
BOARD OF DIRECTORS RECOMMENDS THAT STOCKHOLDERS VOTE IN FAVOR OF THE RATIFICATION OF
AUDITORS.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 16(a)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
16(a) of the Securities Exchange Act of 1934, as amended, requires the Company&#146;s
officers and directors, and persons who own more than 10% of a registered class of the
Company&#146;s equity securities, to file reports of securities ownership and changes in
such ownership with the Securities and Exchange Commission.&nbsp; Statements of Changes in
Beneficial Ownership of Securities on Form 4 are required to be filed before the end of
the second business day following the day on which the change in beneficial ownership
occurred.&nbsp; The Company believes that all reports of securities ownership and changes
in such ownership required to be filed during 2003 were timely filed.&nbsp; </FONT></P>

<BR>
<BR>
<BR>
<BR>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33 </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005 STOCKHOLDER
PROPOSALS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposals
of stockholders intended to be presented at the 2005 Annual Meeting, which presently is
expected to be held in mid-May 2005, must be received by the Secretary of the Company, One
Lincoln Centre, Suite 1100 Oakbrook Terrace, Illinois 60181, no later than January 14,
2005 (i.e., 120 days prior to the expected date of the mailing of the 2005 proxy
statement), in order for them to be considered for inclusion in the 2005 Proxy Statement.
A shareholder desiring to submit a proposal to be voted on at next year&#146;s Annual
Meeting, but not desiring to have such proposal included in next year&#146;s proxy
statement relating to that meeting, should submit such proposal to the Company by March
31, 2005 (i.e., at least 45 days prior to the expected date of the mailing of the proxy
statement). Failure to comply with that advance notice requirement will permit management
to use its discretionary voting authority if and when the proposal is raised at the Annual
Meeting without having had a discussion of the proposal in the proxy statement. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER MATTERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
is not aware of any other matters to be considered at the Annual Meeting. If any other
matters properly come before the Annual Meeting, the persons named in the enclosed Proxy
will vote said Proxy in accordance with their discretion. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By Order of the Board of</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Directors</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>James T. McCubbin</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Secretary</FONT></TD></TR>
</TABLE>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 20, 2004  </FONT></P>


<BR>
<BR>
<BR>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34 </FONT></P>




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<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROXY </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION
 <BR>One Lincoln Centre, Suite 1100 <BR>Oakbrook Terrace, Illinois 60181  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
proxy is solicited by the Board of Directors for the ANNUAL MEETING OF STOCKHOLDERS of
WidePoint Corporation, a Delaware corporation (the &#147;Company&#148;), on January 27,
2005, 10:00 a.m., local time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned appoints James McCubbin and Steve Komar, and each of them, a proxy of the
undersigned, with full power of substitution, to vote all shares of Common Stock, par
value $.001 per share, of the Company which the undersigned is entitled to vote at the
Annual Meeting of Stockholders to be held on January 27, 2005, or at any and all
adjournment(s) thereof, with all powers the undersigned would have if personally present. </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=67% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>The Board of Directors recommends voting FOR the following proposals:</B></FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Please mark your votes as indicated in</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>this example&nbsp;&nbsp;&nbsp;|X|</FONT></TD></TR>
</TABLE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1.</FONT></TD>
     <TD WIDTH=23% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>To Elect Directors</FONT></TD>
     <TD WIDTH=22% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>WITHHOLD</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>CLASS I DIRECTORS - MARK MIRABILE AND NORMAN WAREHAM</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>FOR the nominees</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>AUTHORITY</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>listed to the right</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>to vote for the nominees</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>CLASS III DIRECTORS - MARK FULLER AND JOHN CROWLEY</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(except as marked to the</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>listed to the right</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>contrary)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>|_|</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>(INSTRUCTION: To withhold authority for a nominee, write that nominee's name on</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>the space provided below).</B>_______________________________________________</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2.</FONT></TD>
     <TD WIDTH=45% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Proposal to amend the Amended and Restated Certificate of Incorporation </FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3.</FONT></TD>
     <TD WIDTH=45% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Proposal to increase by 7,000,000 additional shares the number of shares</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>to increase the number of authorized shares of Common Stock to </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>of Common Stock authorized for issuance under the 1997 Stock Incentive Plan.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>110,000,000 shares.</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AGAINST</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ABSTAIN</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AGAINST</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ABSTAIN</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4.</FONT></TD>
     <TD WIDTH=45% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Proposal to ratify the selection of Grant Thornton, LLP as the</FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>5.</FONT></TD>
     <TD WIDTH=45% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>In their discretion the Proxies are authorized to vote upon such other</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>independent accountants for the Company for the current</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>business as properly may come before the meeting.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>fiscal year.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD></TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AGAINST</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ABSTAIN</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AGAINST</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ABSTAIN</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=65% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD WIDTH=35% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Sign exactly as your name appears hereon. When signing in a representative or fiduciary capacity, indicate
title. If shares are held jointly, each holder should sign.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Date __________________________, 2005</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>_____________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>_____________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Signature of Stockholder(s)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR><B>THE SHARES WILL BE VOTED AS DIRECTED ABOVE, AND WITH
RESPECT TO OTHER MATTERS OF BUSINESS PROPERLY BEFORE THE
MEETING AS THE PROXIES SHALL DECIDE. IF NO DIRECTION IS
MADE, THIS PROXY WILL BE VOTED FOR PROPOSALS 1, 2, 3, 4
and 5.</B></FONT></TD></TR>
</TABLE>





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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>APPENDIX 1</B> </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint
Corporation&#146;s Audit Committee Charter </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I. Purpose </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The primary purpose of the Audit Committee
(the &#147;Committee&#148;) of the Board of Directors (the &#147;Board&#148;) of WidePoint
Corporation (the &#147;Company&#148;) is to assist the Board in fulfilling its oversight
responsibilities with respect to: (i) the Company&#146;s accounting, auditing, and
financial reporting processes; (ii) the integrity of the Company&#146;s financial
statements; (iii) the Company&#146;s internal controls and procedures designed to promote
compliance with accounting standards and applicable laws and regulations; and (iv) the
appointment, and evaluation of the qualifications and independence, of the Company&#146;s
independent auditors. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II. Membership </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee shall be comprised of
two or more members of the Board, each of whom shall satisfy the independence and
financial literacy requirements of The Nasdaq Stock Market, Inc. (&#147;Nasdaq&#148;) and
the Securities and Exchange Commission (the &#147;SEC&#148;). At least one member of the
Committee shall meet the requirements of Rule 4350(d)(2)(A)(i) of the Nasdaq Marketplace
Rules and, unless the Board shall otherwise determine, shall also be an &#147;Audit
Committee Financial Expert&#148;, as defined by SEC regulations. Each member shall be free
from any relationship that, in the opinion of the Board, would interfere with his or her
exercise of independent judgment. The Board must determine that each member of the
Committee: (i) qualifies as an &#147;independent director&#148; under Rule 4200 of the
Nasdaq Marketplace Rules, unless the Board determines that an exemption to such
qualification is available under Nasdaq Rule 4350(d)(2)(B), (ii) meets the
&#147;independence&#148; requirements under Section 10A of the Securities Exchange Act of
1934 (the &#147;Exchange Act&#148;) and (iii) satisfies the other requirements of Rule
4350(d)(2) of the Nasdaq Marketplace Rules. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The members of the Committee and the
Chairman of the Committee shall be appointed annually by the Board of Directors. Members
shall serve at the pleasure of the Board and for such term or terms as the Board may
determine. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee shall meet at least
four times annually, or more frequently as the Committee may determine. Members of
management, the Company&#146;s independent auditors and others shall attend meetings to
provide pertinent information, as necessary. As part of its goal of fostering open
communication, during its regularly scheduled meetings the Committee shall meet in
separate executive sessions with management and with the independent auditors to discuss
any matters that the Committee or any of these groups believes should be discussed
privately. The Chairman of the Committee shall report to the Board regularly regarding the
Committee&#146;s activities and actions, including at the first Board meeting following
any Committee meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Chairman or, in the event of his
absence from any meeting, another member of the Committee designated by vote of the
members in attendance at such meeting, will chair all meetings of the Committee and set
the agendas for such meetings. Any other member of the Committee shall have the right to
submit items to be included on the agenda for any Committee meeting. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee shall keep regular
minutes of its meetings and report the same to the Board from time to time and upon
request. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>III. Duties and
Responsibilities </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee shall have and may
exercise the powers of the Board in matters relating to the following duties and
responsibilities, to the fullest extent permitted by law: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Independent Auditors
&#150; Appointment and Oversight</U> </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall be directly responsible for the appointment, compensation,
               retention, termination and oversight of the work of the Company&#146;s
               independent auditors (including resolution of disagreements between
management                and the independent auditors regarding financial reporting).
The independent                auditors shall report directly to the Committee. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall approve in advance all auditing services (including comfort
               letters and statutory audits) performed by the independent auditors. The
               Committee shall approve in advance all non-audit services performed by the
               independent auditors as permitted under Section 10A of the Exchange Act.
The                Committee may delegate to one or more members the authority to grant
               pre-approvals required by this section, in which case the decision of such
               member or members shall be presented to the Committee at the next
scheduled                meeting of the Committee. All approvals shall be in accordance
with the                Committee&#146;s Auditor Pre-Approval Policy, as amended from
time to time. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall annually review and discuss with the independent auditors
               all relationships the independent auditors have with the Company in order
to                evaluate their continued independence. In this regard, the Committee
shall (i)                review on an annual basis a written statement from the
independent auditors                (consistent with Independent Standards Board Standard
No. 1) that discloses all                relationships and services that may impact the
objectivity and independence of                the independent auditors; (ii) discuss
with the independent auditors any                disclosed relationships or services that
may impact their objectivity and                independence; and (iii) satisfy itself as
to the independence of the independent                auditors. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall annually obtain and review a report by the independent
               auditors describing: (i) the independent auditors&#146; internal
quality-control                procedures; and (ii) any material issues raised by the
most recent internal                quality-control review, or peer review, of the audit
firm, or by any inquiry or                investigation by governmental or professional
authorities, within the preceding                five years, respecting one or more
independent audits carried out by the audit                firm, and any steps taken to
deal with such issues. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall confirm compliance by the independent auditors with laws and
               regulations relating to audit partner rotation. </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37 </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall obtain, review and discuss quarterly reports from the
               independent auditors to the Committee with respect to critical accounting
               policies and practices, alternative treatments of financial information
within                generally accepted accounting principles that have been discussed
with                management, including ramifications of the use of such alternative
disclosure                and treatments, and the treatment preferred by the independent
auditors and the                impact of each on the quality and reliability of the
Company&#146;s financial                reporting, and other material communications with
management, such as any                management letter or schedule of unadjusted
differences. All material                communications shall be promptly provided to
each member of the Committee. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review with the independent auditors and management the
               scope of the proposed audit plan for the current year, and at the
conclusion                thereof review such audit and any comments and recommendations
of the                independent auditors. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall discuss with management and the independent auditors any
               accounting adjustments that were noted or proposed by the independent
auditors                but not adopted or reflected. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall regularly review with the independent auditors any audit
               problems or difficulties encountered in the course of the audit work,
including                any restrictions on the scope of the independent auditors&#146; activities
or                access to requested information and any significant disagreements with
               management and management&#146;s response thereto. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall annually review the qualifications, performance and
               independence of the independent auditors and the senior members of the
               independents auditors&#146; audit engagement team. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall annually prepare the report required by the proxy rules
               promulgated by the SEC to be included in the Company&#146;s annual proxy
               statement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Financial Statements</U>&nbsp; </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review and discuss with management and the independent
               auditors the Company&#146;s annual audited financial statements and the
               Company&#146;s quarterly financial statements (including disclosures made
in the                &#147;Management&#146;s Discussion and Analysis of Financial
Condition and                Results of Operations&#148; portion thereof) prior to
issuance or filing. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall discuss with the independent auditors the matters required
               to be discussed by Statement on Auditing Standards No. 61 relating to the
               conduct of the audit. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall recommend to the Board, if appropriate, that the                Company&#146;s
annual audited financial statements be included in the                Company&#146;s
annual report on Form 10-K for filing with the SEC. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Accounting and Financial
Reporting Processes and Risk Assessment</U>&nbsp; </FONT></H1>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38 </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall periodically discuss with the independent auditors, without
               management being present, their judgments about the quality,
appropriateness and                acceptability of the Company&#146;s accounting
principles and financial                disclosure practices, as applied in its financial
reporting, and the                completeness and accuracy of the Company&#146;s
financial statements. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review with management and the independent auditors any
               legal, regulatory or compliance matters that could have a significant
impact on                the Company&#146;s financial statements, including any
correspondence with                regulators or government agencies and any employee
complaints or published                reports that raise material issues regarding the
Company&#146;s financial                statements or accounting policies and any
significant changes in accounting                standards or rules promulgated by the
Financial Accounting Standards Board, the                SEC or other regulatory
authorities. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall discuss generally the types of information to be disclosed
               and the presentation to be made in press releases regarding the Company&#146;s
               earnings, including the use of non-GAAP financial data, and in financial
               information and earnings guidance (if any) otherwise publicly announced or
given                to ratings agencies or other third parties. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review with management and, if necessary, the independent
               auditors and Company counsel, press releases announcing quarterly and
annual                financial results and other financial reporting information prior
to their                release. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review any off-balance sheet transactions, arrangements and
               obligations (including contingent obligations) and any other relationships
of                the Company with unconsolidated entities that may have a current or
future                effect on the Company&#146;s financial statements. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review and discuss with management, and to the extent the
               Committee deems necessary or appropriate, the independent auditors, the
               Company&#146;s disclosure controls and procedures that are designed to
ensure                that the reports the Company files with the SEC comply with the SEC&#146;s
rules                and forms. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review the Company&#146;s major financial risk exposures,
               the Company&#146;s system of internal controls and policies relating to
risk                assessment and management and the steps management has taken to
monitor and                control such exposures. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Internal Controls</U>&nbsp; </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall work towards establishing procedures for the receipt,
               retention, and treatment of complaints received by the Company regarding
               accounting, internal accounting controls or auditing matters, and the
               confidential, anonymous submission by employees of concerns regarding
               questionable accounting or auditing matters. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall review the reports of the Chief Executive Officer and Chief
               Financial Officer (in connection with their required certifications for
the                Company&#146;s filings with the SEC) regarding any significant
deficiencies or                material weaknesses in the design or operation of internal
controls, and any                fraud that involves management or other employees who
have a significant role in                the Company&#146;s internal controls. </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39 </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Other</U>&nbsp; </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall take steps to ensure that the Company shall not hire any
               person to perform a financial reporting oversight role who has provided
more                than ten hours of audit, review or attest services as part of the
independent                auditors&#146; audit engagement team within the past year. A
financial reporting                oversight role refers to a role in which an individual
has direct responsibility                for or oversight of those who prepare the Company&#146;s
financial statements                and related information which will be included in the
Company&#146;s filings                with the SEC, and also includes members of the
Board who may have significant                interaction with the independent auditors&#146; audit
engagement team. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall, prior to the Company entering into any related party
               transaction required to be disclosed pursuant to Item 404 of Regulation
S-K                promulgated by the SEC (such transaction being a &#147;Related Party
               Transaction&#148;), review and approve such transaction and recommend to
the                Board that it approve such transaction; however, the Company may only
enter into                a Related Party Transaction approved by the Committee if the
Board also approves                such transaction. The Committee shall report to the
Board any proposed Related                Party Transaction that it does not approve. The
Committee shall also review and                report to the Board any questions of
possible conflict of interest involving                Board members, members of senior
management or their immediate families. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall oversee the Company&#146;s internal audit function,
               including (i) the appointment, replacement, dismissal and compensation of
the                Company&#146;s senior most internal auditor and (ii) reviewing the
internal                audit department&#146;s staffing, budget and responsibilities. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall annually review and evaluate the performance of the
               Committee, including compliance by the Committee with this Charter. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall annually review and assess the adequacy of this Charter and
               submit any proposed changes to the Board for approval. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Committee shall perform any other activities consistent with this Charter,
               and the Company&#146;s Bylaws and Certificate of Incorporation, as the
Committee                may deem necessary or appropriate for the fulfillment of its
responsibilities                under this Charter or as required by applicable law or
regulation, or as may be                determined by the Board. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IV. Committee
Resources and Advisors </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee shall have the
authority to retain, at the expense of the Company, such independent legal and other
advisors as it shall deem necessary to carry out its duties, without Board or management
approval. The Committee members will be provided with continuing education opportunities
in financial reporting and other areas relevant to the Committee. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40   </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company shall provide for
appropriate funding, as determined by the Committee, in its capacity as a committee of the
Board, for payment of: (i) compensation to any registered public accounting firm engaged
for the purpose of preparing or issuing an audit report or performing other audit, review
or attest services for the Company; (ii) compensation to any advisors engaged by the
Committee as provided above; and (iii) ordinary administrative expenses of the Committee
that are necessary or appropriate in carrying out its duties. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>V. Limitation of
Committee&#146;s Role </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>While the Committee has the
responsibilities and powers set forth in this Charter, it is not the duty of the Committee
to plan or conduct audits or to determine that the Company&#146;s financial statements and
disclosures are complete and accurate and are in accordance with generally accepted
accounting principles and applicable rules and regulations. These are the responsibilities
of management and the independent auditors. </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41 </FONT></P>


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<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT A</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OF </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned, in order to amend and restate the Certificate of Incorporation of WidePoint
Corporation in accordance with the General Corporation Law of the State of Delaware, does
hereby certify: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I. NAME </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
name of the Corporation is WidePoint Corporation (the &#147;Corporation&#148;). </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II. REGISTERED
OFFICE </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The address
of the Corporation&#146;s registered office in the State of Delaware is 1013 Centre Road,
in the City of Wilmington, County of New Castle, 19805. The name of its registered agent
at such address is Corporation Service Company. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III. PURPOSE </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
purpose of the Corporation is to engage in any lawful act or activity for which
corporations may be organized under the General Corporation Law of the State of Delaware. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV. CAPITAL
STOCK </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate number of shares of stock that the Corporation shall have authority to issue is
one hundred twenty million (120,000,000), of which ten million (10,000,000) shares, with a
par value of $0.001 per share, are designated as Preferred Stock, and one hundred ten
million (110,000,000), with a par value of $0.001 per share, are designated as Common
Stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)         Provisions
Relating to the Common Stock.  </FONT></P>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)               Each
holder of Common Stock is entitled to one vote for each share of Common
               Stock standing in such holder&#146;s name on the records of the
Corporation on                each matter submitted to a vote of the stockholders, except
as otherwise                required by law.  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)              The
holders of the Common Stock shall have no preemptive rights to subscribe for
               any shares of any class of stock of the Corporation whether now or
hereafter                authorized.  </FONT>
</TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)          Provisions
Relating to the Preferred Stock. The authority of the Board with           respect to
each series shall include, but not be limited to, determination of           the
following:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)          The
number of shares constituting that series and the distinctive designation of
               that series;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)              The
dividend rate on the shares of that series, whether dividends shall be
               cumulative, and if so, from which date(s), and the relative rights of
priority,                if any, of payment of dividends on shares of that series;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)               Whether
that series shall have voting rights, in addition to the voting rights
               provided by law, and, if so, the terms of such voting rights;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)               Whether
that series shall have conversion privileges, and, if so, the terms and
               conditions of such conversion, including provision for adjustment of the
               conversion rate in such events as the Board of Directors shall determine;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)               Whether
or not the shares of that series shall be redeemable, and, if so, the
               terms and conditions of such redemption, including the date or date upon
or                after which they shall be redeemable, and the amount per share payable
in case                of redemption, which amount may vary under different conditions
and at different                redemption dates;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)               Whether
that series shall have a sinking fund for the redemption or purchase of
               shares of that series, and, if so, the terms and amount of such sinking
fund;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)               The
rights of the shares of that series in the event of voluntary or involuntary
               liquidation, dissolution or winding up of the corporation, and the
relative                rights of priority, if any, of payment of shares of that series;  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)               Any
other relative rights, preferences and limitations of that series.  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
on outstanding shares of Preferred Stock shall be paid or declared and set apart for
payment before any dividends shall be paid or declared and set apart for payment on the
Common Stock with respect to the same dividend period. If upon any voluntary or
involuntary liquidation, dissolution or winding up of the corporation, the assets
available for distribution to holders of shares of Preferred Stock of all series shall be
insufficient to pay such holders the full preferential amount to which they are entitled,
then such assets shall be distributed ratably among the shares of all series of Preferred
Stock in accordance with the respective preferential amounts (including unpaid cumulative
dividends, if any) payable with respect thereto. </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V. BOARD OF
DIRECTORS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)         Number.
The number of directors constituting the entire Board shall be as fixed           from
time to time by vote of a majority of the entire Board, provided, however,           that
the number of directors shall not be reduced so as to shorten the term of           any
director at the time in office, and provided further, that the number of
          directors constituting the entire Board shall be seven until otherwise fixed by
          a majority of the entire Board.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)         Election.
The election of directors need not be by written ballot.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)         Classified
Board. The Board of Directors shall be divided into three classes, as           nearly
equal in numbers as the then total number of directors constituting the           entire
Board permits with the term of office of one class expiring each year. At           the
first annual meeting of the stockholders, directors of the first class will           be
elected to hold office for a term expiring at the next succeeding annual
          meeting, directors of the second class will be elected to hold office for a
term           expiring at the second succeeding annual meeting, and directors of the
third           class will be elected to hold office for a term expiring at the third
succeeding           annual meeting.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VI. BYLAWS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors is authorized to adopt, amend, or repeal bylaws for the Corporation by
a majority of the directors present at a meeting lawfully convened. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VII. LIABILITY </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the full extent permitted by the General Corporation Law of the State of Delaware or any
of the applicable laws presently or hereafter in effect, no director or officer of the
Corporation will be personally liable to the Corporation or its stockholders for or with
respect to any acts or omissions in the performance of his or her duties as a director or
officer of the Corporation. Any amendment or repeal of this Article VII will not
adversely affect any right or protection of a director or officer of the Corporation
existing immediately prior to such amendment or repeal. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VIII.
INDEMNIFICATION </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)          Right
to Indemnification. Any person who was or is a party, or is threatened to           be
made a party, to any threatened, pending, or completed proceeding, whether
          civil, criminal, administrative, or investigative (whether or not by or in the
          right of the Corporation) by reason of the fact that he is or was a director of
          the Corporation (or is or was serving at the request of the Corporation as a
          director, officer, employee or agent of another entity) (the &#147;Indemnitee&#148;) is entitled to be
          indemnified by the Corporation  to the fullest extent then permitted by law against judgments,
          fines, penalties, excise taxes, amounts paid in settlement and costs, charges
and           expenses (including attorneys&#146; fees and disbursements) that he or she
          actually and reasonably incurs in connection with such proceeding to the
fullest           extent permitted by the General Corporation Law of the State of
Delaware.  </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)         Inurement.
The right to indemnification shall inure whether or not the claim           asserted is
based on matters that predate the adoption of this Article VIII,           will continue
as to an Indemnitee who has ceased to hold the position by virtue           if which he
or she was entitled to indemnification, and will inure to the           benefit of his or
her heirs and personal representatives.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)         Non-exclusivity
of Rights. The right to indemnification and to the advancement           of expenses
conferred by this Article VIII are not exclusive of any other rights           that an
Indemnitee may have or acquire under any statute, bylaw, agreement, vote           of
stockholders or disinterested directors, this Certificate of Incorporation or
          otherwise.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)         Advancement
of Expenses. The Corporation will, from time to time, reimburse or           advance to
any Indemnitee the funds necessary for payment of expenses, including           attorneys&#146; fees
and disbursements, incurred in connection with defending           any proceeding for
which he or she is indemnified by the Corporation, in advance           of the final
disposition of such proceeding; provided that, if then required by           the Delaware
General Corporation Law, the expenses incurred by or on behalf of           an Indemnitee
may be paid in advance of the final disposition of a proceedings           only upon
receipt by the Corporation of an undertaking by or on behalf of such           director
or officer to repay any such amount so advanced if it is ultimately           determined
by a final and unappealable judicial decision that the Indemnitee is           not
entitled to be indemnified for such expenses.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)         Insurance.
The Corporation may maintain insurance, at its expense, to protect           itself and
any potential Indemnitee under this Article VIII against any loss,           whether or not
the Corporation would have the power to indemnify such person           against such loss
under this Article VIII and the General Corporation Law of the State of Delaware.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IX. PROHIBITION
OF ACTION BY WRITTEN CONSENT OF STOCKHOLDERS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as the Board of Directors may otherwise provide with respect to the rights of Preferred
Stockholders, any action that is required or permitted to be taken by the stockholders of
the Corporation at any annual or special meeting of stockholders may be effected without a
meeting only by the unanimous written consent of stockholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amended and Restated Certificate of Incorporation has been duly adopted by the Board of
Directors and the stockholders of the Corporation in accordance with the General
Corporation Law of the State of Delaware. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Witness Whereof, I have signed this Amended and Restated Certificate of Incorporation of
WidePoint Corporation this &nbsp;&nbsp;&nbsp;&nbsp;day of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2005. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steve L. Komar, President</FONT></TD></TR>
</TABLE>

<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46 </FONT></P>



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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT B</B> </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION
(FORMERLY ZMAX CORPORATION) </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997 STOCK INCENTIVE
PLAN </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 1 DEFINITIONS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1
Definition. Whenever used herein, the masculine pronoun will be deemed to include the
feminine, and the singular to include the plural, unless the context clearly indicates
otherwise, and the following capitalized words and phrases are used herein with the
meaning thereafter ascribed: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)         &#147;Affiliate&#148; means:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)          an
entity that directly or through one or more intermediaries is controlled by           the
Company, and  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)          any
entity in which the Company has a significant equity interest, as determined           by
the Company.  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)         &#147;Board
of Directors&#148; means the board of directors of the Company.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)              &#147;Code&#148; means
the Internal Revenue Code of 1986, as amended.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)              &#147;Committee&#148; means
the committee appointed by the Board of Directors to                administer the Plan.
The Board of Directors shall consider the advisability of                whether the
members of the Committee shall consist solely of at least two                members of
the Board of Directors who are both &#147;outside directors&#148; as
               defined in Treas. Reg. sec. 1. 162-27(e) as promulgated by the Internal
Revenue                Service and &#147;non-employee directors&#148; as defined in Rule
16b-3(b)(3) as                promulgated under the Exchange Act.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)              &#147;Company&#148; means
WidePoint Corporation, a Delaware corporation.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)              &#147;Disability&#148; has
the same meaning as provided in the long-term                disability plan or policy
maintained or, if applicable, most recently                maintained, by the Company or,
if applicable, any Affiliate of the Company for                the Participant. If no
long-term disability plan or policy was ever maintained                on behalf of the
Participant or, if the determination of Disability relates to                an Incentive
Stock Option, Disability means that condition described in Code                Section
22(e)(3), as amended from time to time. In the event of a dispute, the
               determination of Disability will be made by the Committee and will be
supported                by advice of a physician competent in the area to which such
Disability relates.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)              &#147;Dividend
Equivalent Rights&#148; means certain rights to receive cash                payments as
described in Section 3.5.  </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)              &#147;Exchange
Act&#148; means the Securities Exchange Act of 1934, as amended                from time
to time.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)              &#147;Fair
Market Value&#148; with regard to a date means:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the
average of the high and low prices at which Stock shall have been sold on           that
date or the last trading date prior to that date as reported by the Nasdaq
          Stock Market (or, if applicable, as reported by a national securities exchange
          selected by the Committee on which the shares of Stock are then actively
traded)           and published in The Wall Street Journal,  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  if
Stock is not traded on a securities exchange, but is reported by the Nasdaq
          Stock Market and market information is published on a regular basis in The Wall
          Street Journal, the average of the published high and low sales prices for that
          date or the last business day prior to that date as published in The Wall
Street           Journal,  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>if
such market information is not published on a regular basis, the average of           the
high bid and low asked prices of Stock in the over-the-counter market on           that
date or the last business day prior to that date, as reported by the Nasdaq
          Stock Market, or, if not so reported, by a generally accepted reporting
service,           or  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>if
Stock is not publicly traded, as determined in good faith by the Committee           with
due consideration being given to (i) the most recent independent appraisal           of
the Company if such appraisal is not more than twelve months old and (ii) the
          valuation methodology used in any such appraisal provided that, for purposes of
          granting awards other than Incentive Stock Options, Fair Market Value of the
          shares of Stock may be determined by the Committee by reference to the average
          market value determined over a period certain or as of specified dates, to a
          tender offer price for the shares of Stock (if settlement of an award is
          triggered by such an event) or to any other reasonable measure of fair market
          value.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)              &#147;Option&#148; means
a non-qualified stock option or an incentive stock                option.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)              &#147;Over
10% Own&#148; means an individual who at the time an Incentive Stock
               Option is granted owns Stock possessing more than 10% of the total
combined                voting power of the Company or one of its Subsidiaries,
determined by applying                the attribution rules of Code Section 424(d).  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)              &#147;Participant&#148; means
an individual who receives a Stock Incentive                hereunder.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)              &#147;Performance
Unit Award&#148; refers to a performance unit award as                described in
Section 3.6.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)              &#147;Phantom
Shares&#148; refers to the rights described in Section 3.7.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)              &#147;Plan&#148; means
the ZMAX Corporation 1997 Stock Incentive Plan.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)               &#147;Stock&#148; means
the Company&#146;s common stock.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)               &#147;Stock
Appreciation Right&#148; means a stock appreciation right described                in
Section 3.3.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)               &#147;Stock
Award&#148; means a stock award described in Section 3.4.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)               &#147;Stock
Incentive Agreement&#148; means an agreement between the Company and                a
Participant or other documentation evidencing an award of a Stock Incentive.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)               &#147;Stock
Incentive Program&#148; means a written program established by the
               Committee, pursuant to which Stock Incentives are awarded under the Plan
under                uniform terms, conditions and restrictions set forth in such written
program.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)               &#147;Stock
Incentives&#148; means, collectively, Dividend Equivalent Rights,
               Incentive Stock Options, Non-Qualified Stock Options, Phantom Shares,
Stock                Appreciation Rights and Stock Awards.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)            &#147;Subsidiary&#148; means
any corporation (other than the Company) in an                unbroken chain of
corporations beginning with the Company if, with respect to                Incentive
Stock Options, at the time of the granting of the Option, each of the
               corporations other than the last corporation in the unbroken chain owns
stock                possessing 50% or more of the total combined voting power of all
classes of                stock in one of the other corporations in the chain.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)            &#147;Termination
of Employment&#148; means the termination of the                employee/employer
relationship between a Participant and the Company and its                Affiliates,
regardless of whether severance or similar payments are made to the
               Participant for any reason, including, but not by way of limitation, a
               termination by resignation, discharge, death, Disability or retirement.
The                Committee will, in its absolute discretion, determine the effect of
all matters                and questions relating to a Termination of Employment,
including, but not by way                of limitation, the question of whether a leave
of absence constitutes a                Termination of Employment.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 2 THE STOCK
INCENTIVE PLAN </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1
Purpose of the Plan. The Plan is intended to (a) provide incentive to officers and key
employees of the Company and its Affiliates to stimulate their efforts toward the
continued success of the Company and to operate and manage the business in a manner that
will provide for the long-term growth and profitability of the Company; (b) encourage
stock ownership by officers and key employees by providing them with a means to acquire a
proprietary interest in the Company, acquire shares of Stock, or to receive compensation
which is based upon appreciation in the value of Stock; and (c) provide a means of
obtaining, rewarding and retaining key personnel and consultants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2
 Stock Subject to the Plan.  Subject to adjustment in accordance with Section 5.2,
10,000,000 shares of Stock (the &#147;Maximum Plan Shares&#148;) are hereby reserved
exclusively for issuance pursuant to Stock Incentives. At no time may the Company have
outstanding under the Plan, Stock Incentives subject to Section 16 of the Exchange Act
and shares of Stock issued in respect of Stock Incentives under the Plan in excess of the
Maximum Plan Shares. The shares of Stock attributable to the nonvested, unpaid,
unexercised, unconverted or otherwise unsettled portion of any Stock Incentive that is
forfeited or cancelled or expires or terminates for any reason without becoming vested,
paid, exercised, converted or otherwise settled in full will again be available for
purposes of the Plan.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3
Administration of the Plan. The Plan is administered by the Committee. The Committee has
full authority in its discretion to determine the officers and key employees of the
Company or its Affiliates to whom Stock Incentives will be granted and the terms and
provisions of Stock Incentives, subject to the Plan. Subject to the provisions of the
Plan, the Committee has full and conclusive authority to interpret the Plan; to prescribe,
amend and rescind rules and regulations relating to the Plan; to determine the terms and
provisions of the respective Stock Incentive Agreements and to make all other
determinations necessary or advisable for the proper administration of the Plan. The
Committee&#146;s determinations under the Plan need not be uniform and may be made by it
selectively among persons who receive, or are eligible to receive, awards under the Plan
(whether or not such persons are similarly situated). The Committee&#146;s decisions are
final and binding on all Participants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4
Eligibility and Limits. Stock Incentives may be granted only to officers, and key
employees and consultants of the Company, or any Affiliate of the Company; provided,
however, that an incentive stock option may only be granted to an employee of the Company
or any Subsidiary. In the case of incentive stock options, the aggregate Fair Market Value
(determined as at the date an incentive stock option is granted) of stock with respect to
which stock options intended to meet the requirements of Code Section 422 become
exercisable for the first time by an individual during any calendar year under all plans
of the Company and its Subsidiaries may not exceed $100,000; provided further, that if the
limitation is exceeded, the incentive stock option(s) which cause the limitation to be
exceeded will be treated as nonqualified stock option(s). </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50 </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 3 TERMS OF
STOCK INCENTIVES </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
 Terms and Conditions of All Stock Incentives. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)            The
number of shares of Stock as to which a Stock Incentive may be granted will
               be determined by the Committee in its sole discretion, subject to the
provisions                of Section 2.2 as to the total number of shares available for
grants under the                Plan and subject to the limits on Options and Stock
Appreciation Rights in the                following sentence. To the extent required
under Section 162(m) of the Code and                the regulations thereunder for
compensation to be treated as qualified                performance based compensation,
the maximum number of shares of Stock with                respect to which Options or
Stock Appreciation Rights may be granted during any                one year period to any
employee may not exceed 3,000,000.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)            Each
Stock Incentive will either be evidenced by a Stock Incentive Agreement in
               such form and containing such terms, conditions and restrictions as the
               Committee may determine to be appropriate, or be made subject to the terms
of a                Stock Incentive Program, containing such terms, conditions and
restrictions as                the Committee may determine to be appropriate. Each Stock
Incentive Agreement or                Stock Incentive Program is subject to the terms of
the Plan and any provisions                contained in the Stock Incentive Agreement or
Stock Incentive Program that are                inconsistent with the Plan are null and
void.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)              The
date a Stock Incentive is granted will be the date on which the Committee
               has approved the terms and conditions of the Stock Incentive and has
determined                the recipient of the Stock Incentive and the number of shares
covered by the                Stock Incentive, and has taken all such other actions
necessary to complete the                grant of the Stock Incentive.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)              Any
Stock Incentive may be granted in connection with all or any portion of a
               previously or contemporaneously granted Stock Incentive. Exercise or
vesting of                a Stock Incentive granted in connection with another Stock
Incentive may result                in a pro rata surrender or cancellation of any
related Stock Incentive, as                specified in the applicable Stock Incentive
Agreement or Stock Incentive                Program.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2
Terms and Conditions of Options. Each Option granted under the Plan must be evidenced by a
Stock Incentive Agreement. At the time any Option is granted, the Committee will determine
whether the Option is to be an incentive stock option described in Code Section 422 or a
non-qualified stock option, and the Option must be clearly identified as to its status as
an incentive stock option or a non-qualified stock option. Incentive stock options may
only be granted to employees of the Company or any Subsidiary. At the time any incentive
stock option granted under the Plan is exercised, the Company will be entitled to legend
the certificates representing the shares of Stock purchased pursuant to the Option to
clearly identify them as representing the shares purchased upon the exercise of an
incentive stock option. An incentive stock option may only be granted within ten (10)
years from the earlier of the date the Plan is adopted or approved by the Company&#146;s
stockholders. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)               Option
Price. Subject to adjustment in accordance with Section 5.2 and the other
               provisions of this Section 3.2, the exercise price (the &#147;Exercise
               Price&#148;) per share of Stock purchasable under any Option must be as
set                forth in the applicable Stock Incentive Agreement, but in no event may
it be                less than the Fair Market Value on the date the Option is granted
with respect                to an incentive stock option. With respect to each grant of
an incentive stock                option to a Participant who is an Over 10% Owner, the
Exercise Price may not be                less than 110% of the Fair Market Value on the
date the Option is granted. The                Exercise Price of an Option may be amended
or modified after the grant of the                Option, and an Option may be
surrendered in consideration of or exchanged for a                grant of a new Option
having an Exercise Price below that of the Option which                was surrendered or
exchanged.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)               Option
Term. Any incentive stock option granted to a Participant who is not an
               Over 10% Owner is not exercisable after the expiration of ten (10) years
after                the date the Option is granted. Any incentive stock option granted
to an Over                10% Owner is not exercisable after the expiration of five (5)
years after the                date the Option is granted. The term of any Non-Qualified
Stock Option must be                as specified in the applicable Stock Incentive
Agreement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)               Payment.
Payment for all shares of Stock purchased pursuant to exercise of an
               Option will be made in any form or manner authorized by the Committee in
the                Stock Incentive Agreement or by amendment thereto, including, but not
limited                to, cash or, if the Stock Incentive Agreement provides:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  by
delivery to the Company of a number of shares of Stock which have been owned           by
the holder for at least six (6) months prior to the date of exercise having           an
aggregate Fair Market Value of not less than the product of the Exercise           Price
multiplied by the number of shares the Participant intends to purchase           upon
exercise of the Option on the date of delivery;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> in
a cashless exercise through a broker; or  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>   by
having a number of shares of Stock withheld, the Fair Market Value of which           as
of the date of exercise is sufficient to satisfy the Exercise Price.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In its discretion, the Committee also
may authorize (at the time an Option is granted or thereafter) Company financing to assist
the Participant as to payment of the Exercise Price on such terms as may be offered by the
Committee in its discretion. Payment must be made at the time that the Option or any part
thereof is exercised, and no shares may be issued or delivered upon exercise of an option
until full payment has been made by the Participant. The holder of an Option, as such, has
none of the rights of a stockholder. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)              Conditions
to the Exercise of an Option. Each Option granted under the Plan is
               exercisable by whom, at such time or times, or upon the occurrence of such
event or events, and in such amounts, as the Committee specifies in the Stock Incentive
Agreement; provided, however, that subsequent to the grant of an Option, the Committee,
at any time before complete termination of such Option, may accelerate the time or times
at which such Option may be exercised in whole or in part, including,  without
limitation, upon a Change in Control and may permit the Participant or any other
designated person to exercise the Option, or any portion thereof, for all or part of the
remaining Option term, notwithstanding any provision of the Stock Incentive Agreement to
the contrary. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)              Termination
of Incentive Stock Option. With respect to an incentive Stock                option, in
the event of termination of employment of a Participant, the Option                or
portion thereof held by the Participant which is unexercised will expire,
               terminate, and become unexercisable no later than the expiration of three
(3)                months after the date of termination of employment; provided, however,
that in                the case of a holder whose termination of employment is due to
death or                Disability, one (1) year will be substituted for such three (3)
month period;                provided, further that such time limits may be exceeded by
the Committee under                the terms of the grant, in which case, the incentive
stock option will be a                nonqualified option if it is exercised after the
time limits that would                otherwise apply. For purposes of this Subsection
(e), termination of employment                of the Participant will not be deemed to
have occurred if the Participant is                employed by another corporation (or a
parent or subsidiary corporation of such                other corporation) which has
assumed the incentive stock option of the                Participant in a transaction to
which Code Section 424(a) is applicable.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)              Serial
Provisions for Certain Substitute Options. Notwithstanding anything to                the
contrary in this Section 3.2, any Option issued in substitution for an
               option previously issued by another entity, which substitution occurs in
               connection with a transaction to which Code Section 424(a) is applicable,
may                provide for an exercise price computed in accordance with such Code
Section and                the regulations thereunder and may contain such other terms
and conditions as                the Committee may prescribe to cause such substitute
Option to contain as nearly                as possible the same terms and conditions
(including the applicable vesting and                termination provisions) as those
contained in the previously issued option being                replaced thereby.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3
Terms and Conditions of Stock Appreciation Rights. Each Stock Appreciation Right granted
under the Plan must be evidenced by a Stock Incentive Agreement. A Stock Appreciation
Right entitles the Participant to receive the excess of (1) the Fair Market Value of a
specified or determinable number of shares of the Stock at the time of payment or exercise
over (2) a specified or determinable price which, in the case of a Stock Appreciation
Right granted in connection with an Option, may not be less than the Exercise Price for
that number of shares subject to that Option. A Stock Appreciation Right granted in
connection with a Stock Incentive may only be exercised to the extent that the related
Stock Incentive has not been exercised, paid or otherwise settled. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)             Settlement.
Upon settlement of a Stock Appreciation Right, the Company must pay                to the
Participant the appreciation in cash or shares of Stock (valued at the
               aggregate Fair Market Value on the date of payment or exercise) as
provided in                the Stock Incentive Agreement or, in the absence of such
provision, as the                Committee may determine.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)             Conditions
to Exercise. Each Stock Appreciation Right granted under the Plan is
               exercisable or payable at such time or times, or upon the occurrence of
such                event or events, and in such amounts, as the Committee specifies in
the Stock                Incentive Agreement; provided, however, that subsequent to the
grant of a Stock                Appreciation Right, the Committee, at any time before
complete termination of                such Stock Appreciation Right, may accelerate the
time or times at which such                Stock Appreciation Right may be exercised or
paid in whole or in part.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4
Terms and Conditions of Stock Awards. The number of shares of Stock subject to a Stock
Award and restrictions or conditions on such shares, if any, will be as the Committee
determines, and the certificate for such shares will bear evidence of any restrictions or
conditions. Subsequent to the date of the grant of the Stock Award, the Committee has the
power to permit, in its discretion, an acceleration of the expiration of an applicable
restriction period with respect to any part or all of the shares awarded to a Participant.
The Committee may require a cash payment from the Participant in an amount no greater than
the aggregate Fair Market Value of the shares of Stock awarded determined at the date of
grant in exchange for the grant of a Stock Award or may grant a Stock Award without the
requirement of a cash payment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5
Terms and Conditions of Dividend Equivalent Right. A Dividend Equivalent Right entitles
the Participant to receive payments from the Company in an amount determined by reference
to any cash dividends paid on a specified number of shares of Stock to Company
stockholders of record during the period such rights are effective. The Committee may
impose such restrictions and conditions on any Dividend Equivalent Right as the Committee
in its discretion shall determine, including the date any such right shall terminate and
may reserve the right to terminate, amend or suspend any such right at any time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)              Payment.
Payment in respect of a Dividend Equivalent Right may be made by the
               Company in cash or shares of Stock (valued at Fair Market Value on the
date of                payment) as provided in the Stock Incentive Agreement or Stock
Incentive                Program, or, in the absence of such provision, as the Committee
may determine.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)             Conditions
to Payment. Each Dividend Equivalent Right granted under the Plan is
               payable at such time or times, or upon the occurrence of such event or
events,                and in such amounts, as the Committee specifies in the applicable
Stock                Incentive Agreement or Stock Incentive Program; provided, however,
that                subsequent to the grant of a Dividend Equivalent Right, the
Committee, at any                time before complete termination of such Dividend
Equivalent Right, may                accelerate the time or times at which such Dividend
Equivalent Right may be paid                in whole or in part.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6
Terms and Conditions of Performance Unit Awards. A Performance Unit Award shall entitle
the Participant to receive, at a specified future date, payment of an amount equal to all
or a portion of the value of a specified or determinable number of units (stated in terms
of a designated or determinable dollar amount per unit) granted by the Committee. At the
time of the grant, the Committee must determine the base value of each unit, the number of
units subject to a Performance Unit Award, the performance factors applicable to the
determination of the ultimate payment value of the Performance Unit Award and the period
over which Company performance shall be measured. The Committee may provide for an
alternate base value for each unit under certain specified conditions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)             Payment.
Payment in respect of Performance Unit Awards may be made by the                Company
in cash or shares of Stock (valued at Fair Market Value on the date of
               payment) as provided in the applicable Stock Incentive Agreement or Stock
               Incentive Program or, in the absence of such provision, as the Committee
may                determine.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)               Conditions
to Payment. Each Performance Unit Award granted under the Plan shall                be
payable at such time or times, or upon the occurrence of such event or
               events, and in such amounts, as the Committee shall specify in the
applicable                Stock Incentive Agreement or Stock Incentive Program; provided,
however, that                subsequent to the grant of a Performance Unit Award, the
Committee, at any time                before complete termination of such Performance
Unit Award, may accelerate the                time or times at which such Performance
Unit Award may be paid in whole or in                part.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7
Terms and Conditions of Phantom Shares. Phantom Shares shall entitle the Participant to
receive, at a specified future date, payment of an amount equal to all or a portion of the
Fair Market Value of a specified number of shares of Stock at the end of a specified
period. At the time of the grant, the Committee will determine the factors which will
govern the portion of the rights so payable, including, at the discretion of the
Committee, any performance criteria that must be satisfied as a condition to payment.
Phantom Share awards containing performance criteria may be designated as Performance
Share Awards. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)               Payment.
Payment in respect of Phantom Shares may be made by the Company in cash                or
shares of Stock (valued at Fair Market Value on the date of payment) as
               provided in the applicable Stock Incentive Agreement or Stock Incentive
Program,                or, in the absence of such provision, as the Committee may
determine.  </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>55 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)               Conditions
to Payment. Each Phantom Share granted under the Plan is payable at                such
time or times, or upon the occurrence of such event or events, and in such
               amounts, as the Committee specify in the applicable Stock Incentive
Agreement or                Stock Incentive Program; provided, however, that subsequent
to the grant of a                Phantom Share, the Committee, at any time before
complete termination of such                Phantom Share, may accelerate the time or
times at which such Phantom Share may                be paid in whole or in part.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8
Treatment of Awards Upon Termination of Employment. Except as otherwise provided by Plan
Section 3.2(e), any award under this Plan to a Participant who has experienced a
Termination of Employment may be cancelled, accelerated, paid or continued, as provided in
the applicable Stock Incentive Agreement or Stock Incentive Program, or, in the absence of
such provision, as the Committee may determine. The portion of any award exercisable in
the event of continuation or the amount of any payment due under a continued award may be
adjusted by the Committee to reflect the Participant&#146;s period of service from the
date of grant through the date of the Participant&#146;s Termination of Employment or such
other factors as the Committee determines are relevant to its decision to continue the
award. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 4 RESTRICTIONS
ON STOCK </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
Escrow of Shares. Any certificates representing the shares of Stock issued under the Plan
will be issued in the Participant&#146;s name, but, if the applicable Stock Incentive
Agreement or Stock Incentive Program so provides, the shares of Stock will be held by a
custodian designated by the Committee (the &#147;Custodian&#148;). Each applicable Stock
Incentive Agreement or Stock Incentive Program providing for transfer of shares of Stock
to the Custodian must appoint the Custodian as the attorney-in-fact for the Participant
for the term specified in the applicable Stock Incentive Agreement or Stock Incentive
program, with full power and authority in the Participant&#146;s name, place and stead to
transfer, assign and convey to the Company any shares of Stock held by the Custodian for
such Participant, if the Participant forfeits the shares under the terms of the applicable
Stock Incentive Agreement or Stock Incentive Program. During the period that the Custodian
holds the shares subject to this Section, the Participant is entitled to all rights,
except as provided in the applicable Stock Incentive Agreement or Stock Incentive Program,
applicable to shares of Stock not so held. Any dividends declared on shares of Stock held
by the Custodian must provide in the applicable Stock Incentive Agreement or Stock
Incentive Program that such dividends shall be paid directly to the Participant or, in the
alternative, be retained by the Custodian or by the Company until the expiration of the
term specified in the applicable Stock Incentive Agreement or Stock Incentive Program and
shall then be delivered, together with any proceeds, with the shares of Stock to the
Participant or to the Company, as applicable. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
Restrictions on Transfer. The Participant does not have the right to make or permit to
exist any disposition of the shares of Stock issued pursuant to the Plan except as
provided in the Plan or the applicable Stock Incentive Agreement or Stock Incentive
Program. Any disposition of the shares of Stock issued under the Plan by the Participant
not made in accordance with the Plan or the applicable Stock Incentive Agreement or Stock
Incentive Program will be void. The Company will not recognize, or have the duty to
recognize, any disposition not made in accordance with the Plan and the applicable Stock
Incentive Agreement or Stock Incentive Program, and the shares so transferred will
continue to be bound by the Plan and the applicable Stock Incentive Agreement or Stock
Incentive Program. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 5 GENERAL
PROVISIONS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1
Withholding. The Company must deduct from all cash distributions under the Plan any taxes
required to be withheld by federal, state or local government. Whenever the Company
proposes or is required to issue or transfer shares of Stock under the Plan or upon the
vesting of any Stock Award, the Company has the right to require the recipient to remit
to the Company an amount sufficient to satisfy any federal, state and local withholding
tax requirements prior to the delivery of any certificate or certificates for such shares
or the vesting of such Stock Award. A Participant may pay the withholding tax in cash,
or, if the applicable Stock Incentive Agreement or Stock Incentive Program provides, a
Participant may elect to have the number of shares of Stock he is to receive reduced by,
or with respect to a Stock Award, tender back to the Company, the smallest number of
whole shares of Stock which, when multiplied by the Fair Market Value of the shares of
Stock determined as of the Tax Date (defined below), is sufficient to satisfy federal,
state and local, if any,  withholding taxes arising from exercise or payment of a Stock
Incentive (a &#147;Withholding Election&#148;). A Participant may make a Withholding
Election only if both of the following conditions are met:  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)          The
Withholding Election must be made on or prior to the date on which the
               amount of tax required to be withheld is determined (the &#147;Tax Date&#148;)
               by executing and delivering to the Company a properly completed notice of
               Withholding Election as prescribed by the Committee; and  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)          Any
Withholding Election made will be irrevocable except on six months advance
               written notice delivered to the Company; however, the Committee may in its
sole                discretion disapprove and give no effect to the Withholding Election.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2
 Changes in Capitalization; Merger; Liquidation. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)               The
number of shares of Stock reserved for the grant of Options, Dividend
               Equivalent Rights, Performance Unit Awards, Phantom Shares, Stock
Appreciation                Rights and Stock Awards; the number of shares of Stock
reserved for issuance                upon the exercise or payment, as applicable, of each
outstanding Option,                Dividend Equivalent Right, Phantom Share and Stock
Appreciation Right and upon                vesting or grant, as applicable, of each Stock
Award; the Exercise Price of each                outstanding Option and the specified
number of shares of Stock to which each                outstanding Dividend Equivalent
Right, Phantom Share and Stock Appreciation                Right pertains must be
proportionately adjusted for any increase or decrease in                the number of
issued shares of Stock resulting from a subdivision or combination                of
shares or the payment of a stock dividend in shares of Stock to holders of
               outstanding shares of Stock or any other increase or decrease in the
number of                shares of Stock outstanding effected without receipt of
consideration by the                Company.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)               In
the event of a merger, consolidation or other reorganization of the Company
               or tender offer for shares of Stock, the Committee may make such
adjustments                with respect to awards and take such other action as it deems
necessary or                appropriate to reflect such merger, consolidation,
reorganization or tender                offer, including, without limitation, the
substitution of new awards, or the                adjustment of outstanding awards, the
acceleration of awards, the removal of                restrictions on outstanding awards,
or the termination of outstanding awards in                exchange for the cash value
determined in good faith by the Committee of the                vested portion of the
award. Any adjustment pursuant to this Section 5.2 may                provide, in the
Committee&#146;s discretion, for the elimination without payment                therefor
of any fractional shares that might otherwise become subject to any                Stock
Incentive, but except as set forth in this Section may not otherwise
               diminish the then value of the Stock Incentive.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)               The
existence of the Plan and the Stock Incentives granted pursuant to the Plan
               must not affect in any way the right or power of the Company to make or
               authorize any adjustment, reclassification, reorganization or other change
in                its capital or business structure, any merger or consolidation of the
Company,                any issue of debt or equity securities having preferences or
priorities as to                the Stock or the rights thereof, the dissolution or
liquidation of the Company,                any sale or transfer of all or any part of its
business or assets, or any other                corporate act or proceeding.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3
Cash Awards. The Committee may, at any time and in its discretion, grant to any holder of
a Stock Incentive the right to receive, at such times and in such amounts as determined by
the Committee in its discretion, a cash amount which is intended to reimburse such person
for all or a portion of the federal, state and local income taxes imposed upon such person
as a consequence of the receipt of the Stock Incentive or the exercise of rights
thereunder. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4
Compliance with Code. All incentive stock options to be granted hereunder are intended to
comply with Code Section 422, and all provisions of the Plan and all incentive stock
options granted hereunder must be construed in such manner as to effectuate that intent. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5
Right to Terminate Employment. Nothing in the Plan or in any Stock Incentive confers upon
any Participant the right to continue as an employee or officer of the Company or any of
its Affiliates or affect the right of the Company or any of its Affiliates to terminate
the Participant&#146;s employment at any time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6
Non-alienation of Benefits. Other than as specifically provided with regard to the death
of a Participant, no benefit under the Plan may be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge; and any attempt to
do so shall be void. No such benefit may, prior to receipt by the Participant, be in any
manner liable for or subject to the debts, contracts, liabilities, engagements or torts of
the Participant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7
Restrictions on Delivery and Sale of Shares; Legends. Each Stock Incentive is subject to
the condition that if at any time the Committee, in its discretion, shall determine that
the listing, registration or qualification of the shares covered by such Stock Incentive
upon any securities exchange or under any state or federal law is necessary or desirable
as a condition of or in connection with the granting of such Stock Incentive or the
purchase or delivery of shares thereunder, the delivery of any or all shares pursuant to
such Stock Incentive may be withheld unless and until such listing, registration or
qualification shall have been effected. If a registration statement is not in effect under
the Securities Act of 1933 or any applicable state securities laws with respect to the
shares of Stock purchasable or otherwise deliverable under Stock Incentives then
outstanding, the Committee may require, as a condition of exercise of any Option or as a
condition to any other delivery of Stock pursuant to a Stock Incentive, that the
Participant or other recipient of a Stock Incentive represent, in writing, that the shares
received pursuant to the Stock Incentive are being acquired for investment and not with a
view to distribution and agree that the shares will not be disposed of except pursuant to
an effective registration statement, unless the Company shall have received an opinion of
counsel that such disposition is exempt from such requirement under the Securities Act of
1933 and any applicable state securities laws. The Company may include on certificates
representing shares delivered pursuant to a Stock Incentive such legends referring to the
foregoing representations or restrictions or any other applicable restrictions on resale
as the Company, in its discretion, shall deem appropriate. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8
Listing and Legal Compliance. The Committee may suspend the exercise or payment of any
Stock Incentive so long as it determines that securities exchange listing or registration
or qualification under any securities laws is required in connection therewith and has not
been completed on terms acceptable to the Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9
Termination and Amendment of the Plan. The Board of Directors at any time may amend or
terminate the Plan without stockholder approval; provided, however, that the Board of
Directors may condition any amendment on the approval of stockholders of the Company if
such approval is necessary or advisable with respect to tax, securities or other
applicable laws. No such termination or amendment without the consent of the holder of a
Stock Incentive may adversely affect the rights of the Participant under such Stock
Incentive. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10
Stockholder Approval. The Plan must be submitted to the stockholders of the Company for
their approval within twelve (12) months before or after the adoption of the Plan by the
Board of Directors of the Company. If such approval is not obtained, any Stock Incentive
granted hereunder will be void. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11
Choice of Law. The laws of the State of Maryland govern the Plan, to the extent not
preempted by federal law, without reference to the principles of conflict of laws. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12
Effective Date of Plan. The Plan shall become effective April 17, 1997, subject, however,
to the approval of the Plan by the Company&#146;s shareholders. Stock Incentives granted
hereunder prior to such approval shall be conditioned upon such approval. Unless such
approval is obtained within one year after the effective date of this Plan, any Stock
Incentives awarded hereunder shall become void thereafter. </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION (FORMERLY ZMAX CORPORATION)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: /s/ Steve Komar</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steve Komar</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>President</FONT></TD></TR>
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<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>


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F#-NP#ONP$!NQ$CNQ%%NQ%GNQ&)NQ&KNQ'-NQ'ONQ(!NR*Q$0`#L_
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>COVER
<SEQUENCE>4
<FILENAME>filename4.htm
<TEXT>
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<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">FOLEY &amp; LARDNER LLP<BR>ATTORNEYS AT LAW</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">WASHINGTON HARBOUR<BR>
2000 K STREET, N.W., SUITE 500<BR>
WASHINGTON, D.C.  20007-5143<BR>
202.672.5300 TEL<BR>
202.672.5399  FAX<BR>
www.foley.com<BR><BR>
&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">December 9, 2004
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><BR>WRITER'S DIRECT LINE
<BR>202.295-4003<BR>abill@foley.com Email
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> </FONT>
</TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">CLIENT/MATTER NUMBER<BR>
302038-0001
</FONT></TD></TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities and Exchange
Commission<BR>Judiciary Plaza<BR>450 Fifth Street, N.W.  <BR>Washington, DC 20549  </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Re: </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint
Corporation (File No. 000-23967) &#151; Preliminary <BR>Proxy Material</FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ladies and Gentlemen: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
behalf of WidePoint Corporation (the &#147;Company&#148;), we are hereby transmitting for
filing pursuant to Rule 14a-6(a) under the Securities Exchange Act of 1934 the
Company&#146;s preliminary Notice of Annual Meeting, Proxy Statement and form of Proxy. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
preliminary proxy material will be used in connection with an Annual Meeting of
Stockholders scheduled to be held on January 27, 2005. The Company currently intends to
mail definitive proxy material to its stockholders beginning December 27, 2004. To the
Company&#146;s knowledge, the only substantive matters to be considered at the Annual
Meeting are (i) the election of directors, (ii) an amendment to the Company&#146;s
certificate of incorporation to increase the number of shares of common stock authorized
for issuance, (iii) an amendment to the Company&#146;s 1997 Stock Incentive Plan to
increase the number of shares of common stock issuable thereunder and (iv) the
ratification of the selection of the independent accountants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you have any questions or comments regarding this filing, please contact the undersigned
at (202) 295-4003 or Thomas L. James at (202) 295-4012. </FONT></P>


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<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Very truly yours,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Arthur H. Bill</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Arthur H. Bill, Esq.</FONT></TD></TR>
</TABLE>

<BR>
<BR>
<BR>
<BR>
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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">BRUSSELS<BR>
CHICAGO <BR>
DETROIT<BR>
JACKSONVILLE
</FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
LOS ANGELES <BR>
MADISON     <BR>
MILWAUKEE <BR>
NEW YORK
</FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
ORLANDO   <BR>
SACRAMENTO<BR>
SAN DIEGO<BR>
SAN DIEGO/DEL MAR
</FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
SAN FRANCISCO    <BR>
SILICON VALLEY<BR>
TALLAHASSEE<BR>
TAMPA
</FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
TOKYO<BR>
WASHINGTON, D.C.<BR>
WEST PALM BEACH
</FONT></TD></TR>
</TABLE>

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