diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..549e2ed
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,4 @@
+/project/project/
+/project/target/
+/target/
+.idea
\ No newline at end of file
diff --git a/README.md b/README.md
index 2440df0..267be97 100644
--- a/README.md
+++ b/README.md
@@ -1,2 +1,24 @@
-# server-agent
-A demo Scala service for ISLE: Introduction to Scala Language and Ecosystem
+# Server HealthCheck Agent
+## Overview
+Server HealthCheck Agent is a daemon reporting host health checks to console. Current implementation
+supports two modes of operation:
+ * heartbeat - agent sends heartbeat messages to console with specified frequency
+ * file check - agent checks for file presence in specified location with specified frequency
+
+Program arguments:
+ * `--type` can be one of `heartbeat` or `filecheck`
+ * `--frequency` time period for repeatable check in seconds
+ * `--location` (mandatory for `filecheck` mode only) - location of a file to check for existence
+
+## Building and running
+Agent is using SBT for building and packaging the code. To build a fatjar with all dependencies included run:
+
+    sbt clean assembly
+
+When agent is packaged it can be executed with `java -jar <agent.jar location>`. E.g. from project root:
+
+    #heartbeat mode
+    java -jar target/scala-2.12/agent.jar --type heartbeat --frequency 5
+
+    #file check mode
+    java -jar target/scala-2.12/agent.jar --type filecheck --location <path to file> --frequency 5
\ No newline at end of file
diff --git a/build.sbt b/build.sbt
new file mode 100644
index 0000000..3a16628
--- /dev/null
+++ b/build.sbt
@@ -0,0 +1,14 @@
+import Dependencies._
+
+lazy val root = Project(id = "agent", file("."))
+  .settings(
+    inThisBuild(List(
+      organization := "io.datastrophic",
+      scalaVersion := "2.12.4",
+      version      := "0.1.0-SNAPSHOT"
+    )),
+    name := "agent",
+    libraryDependencies += scalaTest % Test,
+    mainClass in assembly := Some("io.datastrophic.isle.agent.Agent"),
+    assemblyJarName in assembly := "agent.jar"
+  )
\ No newline at end of file
diff --git a/project/Dependencies.scala b/project/Dependencies.scala
new file mode 100644
index 0000000..b3496b8
--- /dev/null
+++ b/project/Dependencies.scala
@@ -0,0 +1,5 @@
+import sbt._
+
+object Dependencies {
+  lazy val scalaTest = "org.scalatest" %% "scalatest" % "3.0.4"
+}
diff --git a/project/build.properties b/project/build.properties
new file mode 100644
index 0000000..8b697bb
--- /dev/null
+++ b/project/build.properties
@@ -0,0 +1 @@
+sbt.version=1.1.0
diff --git a/project/plugins.sbt b/project/plugins.sbt
new file mode 100644
index 0000000..09c90ca
--- /dev/null
+++ b/project/plugins.sbt
@@ -0,0 +1 @@
+addSbtPlugin("com.eed3si9n" % "sbt-assembly" % "0.14.6")
\ No newline at end of file
diff --git a/src/main/scala/io/datastrophic/isle/agent/Agent.scala b/src/main/scala/io/datastrophic/isle/agent/Agent.scala
new file mode 100644
index 0000000..6c51c1b
--- /dev/null
+++ b/src/main/scala/io/datastrophic/isle/agent/Agent.scala
@@ -0,0 +1,28 @@
+package io.datastrophic.isle.agent
+
+import ArgumentParser._
+
+object Agent extends App {
+  println("agent started. parsing arguments")
+  val (arguments, error) = parseArguments(args)
+
+  if(error.nonEmpty){
+    println(error)
+  } else {
+    if(arguments(TypeKey) == FileCheckValue) {
+      println("running filecheck")
+      val check = new FileCheck(arguments(LocationKey))
+      while (true) {
+        check.checkFile()
+        Thread.sleep(arguments(FrequencyKey).toLong * 1000)
+      }
+    } else {
+      println("running heartbeat")
+      val check = new HeartBeatCheck
+      while (true) {
+        check.heartbeat()
+        Thread.sleep(arguments(FrequencyKey).toLong * 1000)
+      }
+    }
+  }
+}
diff --git a/src/main/scala/io/datastrophic/isle/agent/ArgumentParser.scala b/src/main/scala/io/datastrophic/isle/agent/ArgumentParser.scala
new file mode 100644
index 0000000..5e779e7
--- /dev/null
+++ b/src/main/scala/io/datastrophic/isle/agent/ArgumentParser.scala
@@ -0,0 +1,79 @@
+package io.datastrophic.isle.agent
+
+object ArgumentParser {
+  val FrequencyKey = "--frequency"
+  val TypeKey = "--type"
+  val FileCheckValue = "filecheck"
+  val HeartbeatCheckValue = "heartbeat"
+  val LocationKey = "--location"
+
+  val usage =
+    """
+      | heartbeat mode: java -jar agent.jar --type heartbeat --frequency 5
+      | file check mode: java -jar agent.jar --type filecheck --location <path to file> --frequency 5
+    """.stripMargin
+
+
+  /**
+    * @param args array of GNU-style arguments
+    * @return tuple that contains a map of arguments and an error message in case of parsing problem
+    */
+  def parseArguments(args: Array[String]): (Map[String, String], String) = {
+    var i = 0
+    var error = ""
+    var arguments = Map.empty[String, String]
+
+    while (i < args.length){
+      if(!args(i).startsWith("--")){
+        arguments = Map()
+        error = s"Argument name doesn't conform GNU style: [${args(i)}]. Usage: $usage"
+        i = args.length
+      } else if (i + 1 == args.length){
+        arguments = Map()
+        error = s"Argument not specified: [${args(i)}]. Usage: $usage"
+        i = args.length
+      } else {
+        arguments += args(i) -> args(i+1)
+        i = i+2
+      }
+    }
+
+    if(error.isEmpty){
+      val validation = validate(arguments)
+
+      if(validation._1){
+        (arguments, error)
+      } else {
+        (arguments, validation._2)
+      }
+    } else {
+      (Map(), error)
+    }
+
+  }
+
+  /**
+    * Method provides validation for parsed arguments Map
+    * @param args Map of parsed arguments
+    * @return tuple that contains a result of validation and an error message in case of validation failure
+    */
+  def validate(args: Map[String, String]): (Boolean, String) = {
+    if(args.get(FrequencyKey).isDefined && args(FrequencyKey).forall(_.isDigit)){
+      if(args.get(TypeKey).isDefined && (args(TypeKey) == FileCheckValue || args(TypeKey) == HeartbeatCheckValue)){
+        if(args(TypeKey) == FileCheckValue) {
+          if (args.get(LocationKey).isDefined) {
+            (true, "")
+          } else {
+            (false, s"$LocationKey is missing value for the FileCheck. Usage: $usage")
+          }
+        } else {
+          (true, "")
+        }
+      } else {
+        (false, s"$TypeKey key is missing or has invalid value. Usage: $usage")
+      }
+    } else {
+      (false, s"$FrequencyKey key is missing or not a digit. Usage: $usage")
+    }
+  }
+}
diff --git a/src/main/scala/io/datastrophic/isle/agent/FileCheck.scala b/src/main/scala/io/datastrophic/isle/agent/FileCheck.scala
new file mode 100644
index 0000000..31cc212
--- /dev/null
+++ b/src/main/scala/io/datastrophic/isle/agent/FileCheck.scala
@@ -0,0 +1,13 @@
+package io.datastrophic.isle.agent
+
+import java.io.File
+
+class FileCheck(path: String) {
+  def checkFile() = {
+    if(new File(path).exists()){
+      println("[healthy]")
+    } else {
+      println(s"[unhealthy] file not found: $path")
+    }
+  }
+}
diff --git a/src/main/scala/io/datastrophic/isle/agent/HeartBeatCheck.scala b/src/main/scala/io/datastrophic/isle/agent/HeartBeatCheck.scala
new file mode 100644
index 0000000..e3013d6
--- /dev/null
+++ b/src/main/scala/io/datastrophic/isle/agent/HeartBeatCheck.scala
@@ -0,0 +1,7 @@
+package io.datastrophic.isle.agent
+
+class HeartBeatCheck {
+  def heartbeat() = {
+    println("[healthy]")
+  }
+}