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                                                                   EXHIBIT 10.02

                       CONFIDENTIAL RESIGNATION AGREEMENT

         This Confidential Resignation Agreement ("Agreement") is entered into
by and between Robert B. Terry, Jr. ("Terry") and FATS, Inc. ("FATS"), Terry's
employer, on this 26th day of June, 1998.

         WHEREAS, Terry and FATS desire to enter into an agreement that sets
forth the terms and conditions of Terry's resignation of employment.

         NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, the adequacy and sufficiency of which are hereby acknowledged,
and FATS agree as follows:

1. Terry's full-time duties as Vice President, Operations for FATS ended on June
20, 1998 (the "Active Severance Date").

2. [ OMITTED ]

3. Terry shall continue to be employed by FATS through January 1, 1999 or until
Terry commences full-time employment with another employer, whichever is earlier
(the "Final Severance Date"). During the period between the Active Severance
Date and the Final Severance Date, Terry agrees that he will make himself
available to answer questions and to provide consultation to FATS on matters in
which he was involved prior to the Active Severance Date. FATS agrees that it
will schedule such communications with Terry at such times and under such
circumstances that will not unreasonably interfere with Terry's future
employment or his efforts to obtain employment with another employer. Terry's
employment with FATS will cease for all purposes on the Final Severance Date.

4. Effective as of the Active Severance Date, Terry shall resign from his
position as an officer of FATS and all related entities, including Firearms
Training Systems, Inc.

5. FATS will pay Terry his current bi-weekly salary of $3,846.15 (to be reduced
by any part-time earnings received by Terry during the period between the Active
Severance Date and the Final Severance Date), less withholding for income and
employment taxes to the extent required by law, through the Final Severance
Date. Such payments will be made to Terry on FATS' regularly scheduled pay
dates.


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6. Terry shall be entitled to continue to participate in FATS' established
employee benefit plans and programs through the Final Severance Date on the same
terms and conditions as comparable executive-level FATS employees. Following the
Final Severance Date, Terry shall have the right to continue to participate in
the FATS group health plan, at his own expense, in accordance with, and to the
extent provided by, part 6 of Title I of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA").

7. Terry has earned vacation benefits under FATS' established vacation policy
through his Active Severance Date. He will not earn any further vacation
benefits during the period between his Active Severance Date and the Final
Severance Date. Terry shall be paid for any earned but unused vacation benefits
that he may have as of the Active Severance Date on the first FATS pay date
following his Active Severance Date.

8. As of the date of this Agreement, the following stock option agreements shall
be modified by execution of amendments thereto:

a.   Stock Option Agreement Series A, dated September 18, 1996 (a copy of such
     agreement and a copy of the form of amendment setting forth the
     modifications thereto are attached hereto as Exhibit A1 and Exhibit A2,
     respectively);

b.   Stock Option Agreement Series B, dated September 18, 1996 (a copy of such
     agreement and a copy of the form of amendment setting forth the
     modifications thereto are attached hereto as Exhibit B1 and Exhibit B2,
     respectively); and

c.   Stock Option Agreement Series D, dated April 17, 1997 (a copy of such
     agreement and a copy of the form of amendment setting forth the
     modifications thereto are attached hereto as Exhibit C1 and Exhibit C2,
     respectively).

d.   Stock Option Agreement Series D, dated April 17, 1998 (a copy of such
     agreement and a copy of the form of amendment setting forth the
     modifications thereto are attached hereto as Exhibit D1 and Exhibit D2,
     respectively).

e.   Stock Option Agreement Series D, dated April 17, 1998 (a copy of such
     agreement and a copy of the form of amendment setting forth the
     modifications thereto are

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     attached hereto as Exhibit E1 and Exhibit E2, respectively).

f.   Stock Option Agreement Series D, dated April 17, 1998 (a copy of such
     agreement and a copy of the form of amendment setting forth the
     modifications thereto are attached hereto as Exhibit F1 and Exhibit F2,
     respectively).

9. a. Terry, on his own behalf and on behalf of anyone claiming through him,
hereby agrees and promises not to sue, file an administrative claim, or
otherwise initiate any legal proceeding against, and further agrees to release
and discharge FATS and its parents, owners, divisions, subsidiaries,
partnerships, affiliates and/or other related entities, including the entities
described in the Prospectus for Firearms Training Systems, Inc. dated November
26, 1996 as the "Centre Entities," and each of these entities' past, present,
and future trustees, fiduciaries, shareholders, administrators, directors,
officers, agents, partners, members, employees, attorneys, and the predecessors,
successors, and assigns of each of them (hereinafter collectively referred to as
the "Released Parties") with respect to any and all claims, rights, or causes of
action that Terry now has, has ever had, or may ever have, whether currently
known or unknown, against any of the Released Parties arising from any act or
omission of any nature or kind from the beginning of time through the date Terry
executes this Agreement including, but not limited to, claims, rights, or causes
of action related in any way to Terry's employment, hiring, conditions of
employment, or termination from employment in accordance with the terms of this
Agreement, and including, but not limited to, any claims, rights, or causes of
action arising under any federal, state, or local law, regulation, or ordinance
or the common law including, but not limited to, Title VII of the Civil Rights
Act of 1964 as amended, the Civil Rights Act of 1991, the Americans with
Disabilities Act, ERISA, and the Family and Medical Leave Act of 1993. Terry
represents and warrants that he has not filed or initiated any legal, equitable,
administrative, or other proceeding against any of the Released Parties and that
no such proceedings have been initiated against any of the Released Parties on
his behalf. Terry will not cause or encourage any legal, equitable,
administrative or other proceeding to be maintained or instituted against any of
the Released Parties for the claims released hereunder, and he will not
participate in any manner in any such proceedings against any of the Released
Parties, except as required by law, and except for any claim for unemployment
benefits as described above.

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b.   Notwithstanding the provisions of paragraph 9(a) of this Agreement, nothing
     herein is intended to release, discharge, or extinguish any rights that
     Terry may have under the Firearms Training Systems, Inc. 401(k) Profit
     Sharing Plan, in accordance with the terms of such plan.

10.  Terry represents and warrants that he is the sole owner of the actual or
alleged claims, rights, causes of action, and other matters that are released
herein; that the same have not been transferred or assigned or caused to be
transferred or assigned to any other person, firm, corporation or other legal
entity; and that he has the full right and power to grant, execute and deliver
the releases, undertakings, and agreements contained herein.

11. Terry agrees that he has no present or future right to employment with the
Released Parties, except as specifically described above, and that he will not
apply or seek consideration for any employment, engagement, or contract with the
Released Parties, unless requested to do so by any of the said Released Parties.

12. Terry agrees and acknowledges that he continues to be bound by the terms and
conditions contained in the Agreement that he entered into with FATS on March
14, 1996 (the "Non-Compete Agreement"), a copy of which is attached hereto as
Exhibit G. The Non-Compete Agreement is hereby incorporated herein, subject to
the following modifications:

a.   Paragraph 1(b) is amended to read as follows:

     "Termination Date" - the Final Severance Date defined in the Confidential
     Resignation Agreement, dated June ___, 1998, between Employee and FATS.

b.   Paragraph 4 is amended to read as follows:

     Solicitation of Customers. During Employment and for three years after the
     Termination Date, Employee will not solicit Customers for the purpose of
     providing Services or for the purpose of selling products identical to or
     reasonably substitutable for FATS Products.

c.   Paragraph 5 is amended to read as follows:

     Solicitation of FATS Employees. During employment and for three years after
     the Termination Date, Employee will not solicit for employment with another
     Person anyone who is or was, anytime during the year preceding the
     Termination Date, a FATS employee.

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d.   Paragraph 6 is amended to read as follows:

     Limitations on Post-Termination Competition. During employment and for
     three years after the Termination Date, Employee will not provide Services
     within the Territory to any Person selling products identical to or
     reasonably substitutable for FATS Products.

e.   Paragraph 9 is amended to read as follows:

     Future Employment Opportunities. At any time before, and for three years
     after, the Termination Date, Employee shall provide any prospective
     employer with a copy of this Agreement, and upon accepting any employment
     with another Person, provide FATS with the employer's name and a
     description of the services Employee will provide.

13.  Terry agrees that, on or before the Final Severance Date, he will
submit any claims for reimbursement of business expenses actually incurred by
him. FATS will reimburse Terry for such expenses in accordance with FATS' policy
on reimbursement for business expenses. Terry agrees that FATS will have no
obligation to reimburse him for any expenses that are not submitted to FATS on
or prior to the Final Severance Date.

14.  Terry agrees that he will not disclose the existence or terms of this
Agreement to any third parties with the exception of his accountants, attorneys,
spouse, future employers, and FATS employees with a need to know, each of whom
shall be bound by this confidentiality provision, or as may be required to
comply with legal process. Terry understands and agrees that this promise of
confidentiality is a material inducement to FATS to enter into this Agreement.

15.  Nothing in this Agreement is intended to or shall be construed as an
admission by FATS or any of the other Released Parties that it has violated any
law, interfered with any right, breached any obligation, or otherwise engaged in
any improper or illegal conduct with respect to Terry or otherwise, and the
Released Parties expressly deny any such illegal or wrongful conduct.

16.  In the event the CEO of FATS determines, in his reasonable discretion, that
Terry has breached or failed to comply with any of his obligations under this
Agreement or under the Non-Competition Agreement, as

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amended herein, at any time during the three-year period commencing on the Final
Severance Date (the "Compliance Period"), then FATS, in addition to any other
remedies that it may have either in law or in equity, may declare that Terry is
not in compliance with this Agreement. In such an event FATS shall have no
further obligations under this Agreement. However, Terry's duties and
obligations under this Agreement and the Non-Compete Agreement, as amended
herein, shall continue in full force and effect.

17. For all purposes, including without limitation the stock option agreements
referenced in Paragraph 8 above, Terry's termination of employment hereunder
shall be deemed to be a termination by the Company other than for "Cause" (as
defined in such stock option agreements), provided that the terms and conditions
of this Agreement are complied with.

18. This Agreement embodies the entire agreement and understanding of the
parties hereto with regard to the matters described herein. This Agreement shall
inure to the benefit of FATS and its successors and assignees, and shall be
binding upon Terry and Terry's heirs, administrators, executors, and personal
representatives.

19. This Agreement shall be construed and interpreted in accordance with the
laws of the State of Georgia. Only courts in the State of Georgia shall have
jurisdiction over any controversy or claim arising under or related to this
Agreement. Each party irrevocable (a) consents to the jurisdiction and venue of
the courts of the State of Georgia, including federal courts in Georgia, in any
action arising under or relating to this Agreement, and (b) waives any
jurisdictional defenses (including personal jurisdiction and venue) to any such
action.

20. This Agreement may be modified only in writing, and any party's failure to
enforce this Agreement in the event of one or more events that violate this
Agreement shall not constitute a waiver of any right to enforce this Agreement
against subsequent violations.


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         This Agreement may be executed in two counterparts each of which shall
be deemed an original and both of which together shall constitute one and the
same instrument.


                                    FATS, INC.



                                    By:  /s/ Peter A. Marino
                                         Peter A. Marino

                                    Its: President



                                    /s/ Robert B. Terry, Jr.
                                    ROBERT B. TERRY, JR.

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