Document:

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                                                                EXHIBIT 10.29-05
FORM OF SERIES H STOCK OPTION AGREEMENT DATED APRIL 1, 2000
BETWEEN THE COMPANY AND JOHN A. MORELLI

                         FIREARMS TRAINING SYSTEMS, INC.
                             STOCK OPTION AGREEMENT
                                    SERIES H

Firearms Training Systems, Inc., a Delaware corporation (the "Company"), hereby
grants to John Morelli (the "Optionee") as of April 1, 2000 (the "Option Date"),
pursuant to the provisions of the Firearms Training Systems, Inc. Stock Option
Plan (the "Plan"), a non-qualified option to purchase from the Company (the
"Option") 150,000 shares of its Class A Common Stock, $0.000006 par value
("Stock"), at the price of $0.01 per share upon and subject to the terms and
conditions set forth below. References to employment shall also mean an agency
or independent contractor relationship and references to employment by the
Company shall also mean employment by a Subsidiary. Capitalized terms not
defined herein shall have the meanings specified in the Plan.

1.       Option Subject to Acceptance of Agreement. The Option shall be null and
void unless the Optionee shall accept this Agreement by executing it in the
space provided below and returning such original execution copy to the Company.

2.       Time and Manner of Exercise of Option.

2.1.     Maximum Term of Option. In no event may the Option be exercised, in
whole or in part, after the seventh anniversary of the Option Date (the
"Expiration Date").

2.2.     Exercise of Option. (a) (i)Except as provided in Section 2.2(a)(ii)
below, the Option shall become exercisable upon a Sale of the Company (as
defined below) with respect to:

(A)      if the Fair Market Value per share consideration received by all
holders of Stock (the "Per Share Consideration") is less than $.75, 0 shares;

(B)      if the Per Share Consideration equals or exceeds $1.50, 150,000 shares;

(C)      if the Per Share Consideration equals or exceeds $.75 but is less than
$1.50, the number of shares determined by multiplying (I) 150,000 by (II)(a) the
Per Share Consideration minus $.75, divided by (b) $.75.

         "Sale of the Company" shall mean any transaction pursuant to which all
of the shareholders of the Company receive cash or Marketable Securities in
exchange for all of each such shareholder's shares of Stock. For purposes of the
foregoing, "Marketable Securities" shall mean stock or other securities that are
determined by the Board in its good faith discretion to be readily saleable by
the shareholders of the Company (subject to any lock-up restrictions that are
determined by the Board, in its sole discretion, to be reasonable) without
causing a significant discount or decrease in the price of such securities.

(ii)     In the event that the Optionee's employment is terminated by the
Company not for Cause or the Optionee terminates employment for Good Reason
between the first anniversary and the third anniversary of the Option Date and
the Stock is traded on the OTC Bulletin Board under the supervision of the
National Association of Securities Dealers or any major national stock exchange
at that time, the Option shall become exercisable with respect to:

(A)      if the average of the closing price for a share of Stock for the 20
trading days immediately preceding the Optionee's termination of employment (the
"20-Day Trading Average") is less than or equal to $.75, 0 shares;

(B)      if the 20-Day Trading Average equals or exceeds $1.50, 50,000 shares
(if the termination occurs on or after the first anniversary of the Option Date
and before the second anniversary of the Option Date) or 100,000 shares (if the
termination occurs on or after the second anniversary of the Option Date and
before the third anniversary of the Option Date);

(C)      if the 20-Day Trading Average exceeds $.75 but is less than $1.50, the
number of shares determined by multiplying (I) 50,000 (if the termination occurs
on or after the first anniversary of the Option Date and before the second
anniversary of the Option Date) or 100,000 shares (if the termination occurs on
or after the second anniversary of the Option Date and before the third
anniversary of the Option Date) by (II)(a) the 20-Day Trading Average minus
$.75, divided by (b) $.75.

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(iii)    Any shares of Stock subject to the Option that do not become
exercisable in accordance with the provisions of this Section 2.2(a) shall be
forfeited upon the earlier of the Optionee's termination of employment or the
third anniversary of the Option Date.

(b)      If the Optionee terminates employment with the Company by reason of
Disability, the Option shall be exercisable only to the extent it is exercisable
on the effective date of the Optionee's termination of employment and may
thereafter be exercised by the Optionee or the Optionee's Legal Representative
until the earlier of the first anniversary of the Optionee's termination of
employment and the Expiration Date.

(c)      If the Optionee's employment with the Company terminates by reason of
the Optionee's death, the Option shall be exercisable only to the extent it is
exercisable on the date of death and may thereafter be exercised by the
Optionee's Legal Representative or Permitted Transferees, as the case may be,
until the earlier of the first anniversary of the Optionee's death and the
Expiration Date.

(d)      If the Optionee's employment with the Company terminates for any reason
other than as described in subsection (b) or (c) above, the Option shall be
exercisable only to the extent it is exercisable on the effective date of the
Optionee's termination of employment and may thereafter be exercised by the
Optionee or the Optionee's Legal Representative until and including the earliest
to occur of (i) the date which is 90 days after the effective date of the
Optionee's termination of employment and (ii) the Expiration Date; provided that
if the Optionee's employment is terminated by the Company for Cause, the Option
shall terminate automatically on the date the Board authorizes the Optionee's
termination for Cause, and the Optionee shall be subject to the provisions of
Section 2.5.

(e)      For purposes of this Agreement, "Cause" and "Good Reason" shall have
the meanings contained in Sections 4(c) and 4(e) of the Employment Agreement
between the Optionee and FATS, Inc. dated November 1, 2000 (the "Employment
Agreement").

2.3.     Method of Exercise. Subject to the limitations set forth in this
Agreement, the Option may be exercised by the Optionee (1) by giving written
notice to the Company on the form provided by the Company specifying the number
of whole shares of Stock to be purchased and accompanied by payment therefor in
full (or arrangement made for such payment to the Company's satisfaction) either
(i) in cash, (ii) by delivery of previously owned whole shares of Stock (which
the Optionee has held for at least six months prior to the delivery of such
shares or which the Optionee purchased on the open market and in each case for
which the Optionee has good title, free and clear of all liens and encumbrances)
having a Fair Market Value, determined as of the date of exercise, equal to the
aggregate purchase price payable pursuant to the Option by reason of such
exercise, (iii) in cash by a broker-dealer acceptable to the Company to whom the
Optionee has submitted an irrevocable notice of exercise or (iv) a combination
of (i), (ii) and (iii), and (2) by executing such documents as the Company may
reasonably request. The Committee shall have sole discretion to disapprove of an
election pursuant to any of clauses (ii) - (iv). Any fraction of a share of
Stock which would be required to pay such purchase price shall be disregarded
and the remaining amount due shall be paid in cash by the Optionee. No
certificate representing a share of Stock shall be delivered until the full
purchase price therefor has been paid.

2.4.     Termination of Option. (a) In no event may the Option be exercised
after it terminates as set forth in this Section 2.4. The Option shall
terminate, to the extent not exercised pursuant to Section 2.3 or earlier
terminated pursuant to Section 2.2 or Section 2.5, on the Expiration Date.

(b)      In the event that rights to purchase all or a portion of the shares of
Stock subject to the Option expire or are exercised, cancelled or forfeited, the
Optionee shall, upon the Company's request, promptly return this Agreement to
the Company for full or partial cancellation, as the case may be. Such
cancellation shall be effective regardless of whether the Optionee returns this
Agreement. If the Optionee continues to have rights to purchase shares of Stock
hereunder, the Company shall, within 10 business days of the Optionee's delivery
of this Agreement to the Company, either (i) mark this Agreement to indicate the
extent to which the Option has expired or been exercised, cancelled or forfeited
or (ii) issue to the Optionee a substitute option agreement applicable to such
rights, which agreement shall otherwise be substantially similar to this
Agreement in form and substance.

2.5      Termination of Option and Forfeiture of Option Gain. (a) If the Board
determines in its sole discretion that the Optionee has breached the covenants
contained in Sections 6, 7, 8, 9, or 10 of the Employment Agreement or the
Optionee is terminated for Cause, then (i) the Option shall terminate
automatically on the date the Board determines that the Optionee has breached
any such covenant or authorizes the Optionee's termination for Cause (as
applicable), (ii) within five business days of receipt by the Optionee of a
written demand from the Company or FATS, Inc., the Optionee shall sell to the
Company or FATS, Inc. (at the Company's election) any shares of Stock acquired
and held by the Optionee (or on the Optionee's behalf) as a result of the
exercise of the Option for a per share price equal to the lesser of (A) the Fair
Market Value of a share of Stock on the date the Board makes such determination
or the date the Optionee is notified of his termination for Cause by the Company
(as applicable), and (B) $0.50; and (iii) within five business days of receipt
by the Optionee of a written demand from the Company or FATS, Inc., the Optionee
shall pay the Company or FATS, Inc. (at the Company's election) an amount in
cash equal to the aggregate gain realized by the Optionee upon the sale or sales
of Stock acquired by the Optionee as a result of the exercise of an option
granted under the Plan.

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3.       Additional Terms and Conditions of Option.

Nontransferability of Option. The Option may not be transferred by the Optionee
other than (i) by will or the laws of descent and distribution or pursuant to
beneficiary designation procedures approved by the Company or (ii) as otherwise
permitted under Rule 16b-3 under the Exchange Act. Except to the extent
permitted by the foregoing sentence, during the Optionee's lifetime the Option
is exercisable only by the Optionee or the Optionee's Legal Representative.
Except to the extent permitted by the foregoing, the Option may not be sold,
transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed
of (whether by operation of law or otherwise) or be subject to execution,
attachment or similar process. Upon any attempt to so sell, transfer, assign,
pledge, hypothecate, encumber or otherwise dispose of the Option, the Option and
all rights hereunder shall immediately become null and void.

3.2.     Investment Representation and Restrictions. The Optionee hereby
represents and covenants that (a) any share of Stock purchased upon exercise of
the Option will be purchased for investment and not with a view to the
distribution thereof within the meaning of the Securities Act of 1933, as
amended (the "Securities Act"), unless such purchase has been registered under
the Securities Act and any applicable state securities laws; (b) any subsequent
sale of any such shares shall be made either pursuant to an effective
registration statement under the Securities Act and any applicable state
securities laws, or pursuant to an exemption from registration under the
Securities Act and such state securities laws; (c) to the extent required by an
agreement between one or more underwriters and the Company in connection with an
offering of shares of Stock pursuant to a registration statement under the
Securities Act, the Optionee shall not offer, sell, contract to sell or
otherwise dispose of any shares of Stock purchased upon exercise of the Option
for the period specified in such agreement; and (d) if requested by the Company,
the Optionee shall submit a written statement, in form satisfactory to the
Company, to the effect that such representation (x) is true and correct as of
the date of purchase of any shares hereunder or (y) is true and correct as of
the date of any sale of any such shares, as applicable. As a further condition
precedent to any exercise of the Option, the Optionee shall comply with all
regulations and requirements of any regulatory authority having control of or
supervision over the issuance or delivery of the shares and, in connection
therewith, shall execute any documents which the Board or the Committee shall in
its sole discretion deem necessary or advisable.

3.3.     Withholding Taxes. (a) As a condition precedent to the delivery of
Stock upon exercise of the Option, the Optionee shall, upon request by the
Company, pay to the Company in addition to the purchase price of the shares,
such amount of cash as the Company may be required, under all applicable
federal, state, local or other laws or regulations, to withhold and pay over as
income or other withholding taxes (the "Required Tax Payments") with respect to
such exercise of the Option. If the Optionee shall fail to advance the Required
Tax Payments after request by the Company, the Company may, in its discretion,
deduct any Required Tax Payments from any amount then or thereafter payable by
the Company to the Optionee.

(b)      The Optionee may elect to satisfy his or her obligation to advance the
Required Tax Payments by any of the following means: (1) a cash payment to the
Company pursuant to Section 3.3(a), (2) delivery to the Company of previously
owned whole shares of Stock (which the Optionee has held for at least six months
prior to the delivery of such shares or which the Optionee purchased on the open
market and in each case for which the Optionee has good title, free and clear of
all liens and encumbrances) having a Fair Market Value, determined as of the
date the obligation to withhold or pay taxes first arises in connection with the
Option (the "Tax Date"), equal to the Required Tax Payments, (3) authorizing the
Company to withhold whole shares of Stock which would otherwise be delivered to
the Optionee upon exercise of the Option having a Fair Market Value, determined
as of the Tax Date, equal to the Required Tax Payments, (4) a cash payment by a
broker-dealer acceptable to the Company to whom the Optionee has submitted an
irrevocable notice of exercise or (5) any combination of (1), (2) and (3). The
Committee shall have sole discretion to disapprove of an election pursuant to
any of clauses (2)-(5); provided, however, that if the Optionee exercises the
option on the Expiration Date, is employed as of such date, and the shares of
Stock are not traded on a national securities exchange or are not quoted on the
Nasdaq National Market as of such date, the Company shall take reasonable
efforts to permit an Optionee to use, in whole or in part, the method described
in clause (3) above. Shares of Stock to be delivered or withheld may not have a
Fair Market Value in excess of the minimum amount of the Required Tax Payments.
Any fraction of a share of Stock which would be required to satisfy any such
obligation shall be disregarded and the remaining amount due shall be paid in
cash by the Optionee. No certificate representing a share of Stock shall be
delivered until the Required Tax Payments have been satisfied in full.

3.4.     Adjustment. In the event of any stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, combination, exchange
of shares, liquidation, spin-off or other similar change in capitalization or
event, or any distribution to holders of Stock other than a regular cash
dividend, the number and class of securities subject to the Option and the
purchase price per security shall be appropriately adjusted by the Committee
without an increase in the aggregate purchase price. If any adjustment would
result in a fractional security being subject to the Option, the Company shall
pay the Optionee, in connection with the first exercise of the Option occurring
after such adjustment, an amount in cash determined by multiplying (i) the
fraction of such security (rounded to the nearest hundredth) by (ii) the excess,
if any, of (A) the Fair Market Value on the exercise date over (B) the exercise
price of

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the Option. The decision of the Committee regarding any such adjustment shall be
final, binding and conclusive.

3.5.     Compliance with Applicable Law. The Option is subject to the condition
that if the listing, registration or qualification of the shares subject to the
Option upon any securities exchange or under any law, or the consent or approval
of any governmental body, or the taking of any other action is necessary or
desirable as a condition of, or in connection with, the purchase or delivery of
shares hereunder, the Option may not be exercised, in whole or in part, unless
such listing, registration, qualification, consent or approval shall have been
effected or obtained, free of any conditions not acceptable to the Company. The
Company agrees to use reasonable efforts to effect or obtain any such listing,
registration, qualification, consent or approval.

3.6.     Delivery of Information to Optionee. The Company shall forward to the
Optionee annual reports to shareholders and annual or quarterly financial
statements of the Company, including the consolidated balance sheet and related
consolidated statements of operations and cash flows for a fiscal year, fiscal
quarter or period of a fiscal year, as applicable, as soon as administratively
practicable after such materials are prepared and distributed or filed, as the
case may be, by the Company. The Optionees shall have the same rights as holders
of shares of Stock to notice with respect to annual or special meetings of
shareholders of the Company, and shall have the right to attend any such
meetings.

3.7.     Delivery of Certificates. Upon the exercise of the Option, in whole or
in part, the Company shall deliver or cause to be delivered one or more
certificates representing the number of shares purchased against full payment
therefor. The Company shall pay all original issue or transfer taxes and all
fees and expenses incident to such delivery, except as otherwise provided in
Section 3.3.

3.8.     Option Confers No Rights as Stockholder. The Optionee shall not be
entitled to any privileges of ownership with respect to shares of Stock subject
to the Option unless and until purchased and delivered upon the exercise of the
Option, in whole or in part, and the Optionee becomes a stockholder of record
with respect to such delivered shares; and the Optionee shall not be considered
a stockholder of the Company with respect to any such shares not so purchased
and delivered.

3.9.     Option Confers No Rights to Continued Employment. In no event shall the
granting of the Option or its acceptance by the Optionee give or be deemed to
give the Optionee any right to continued employment by the Company or any
affiliate of the Company.

3.10.    Decisions of Board or Committee. The Board or the Committee shall have
the right to resolve all questions which may arise in connection with the Option
or its exercise. Any interpretation, determination or other action made or taken
by the Board or the Committee regarding the Plan or this Agreement shall be
final, binding and conclusive.

3.11.    Company to Reserve Shares. The Company shall at all times prior to the
expiration or termination of the Option reserve and keep available, either in
its treasury or out of its authorized but unissued shares of Stock, the full
number of shares subject to the Option from time to time.

3.12.    Agreement Subject to the Plan. This Agreement is subject to the
provisions of the Plan and shall be interpreted in accordance therewith. The
Optionee hereby acknowledges receipt of a copy of the Plan.

4.       Miscellaneous Provisions.

4.1.     Designation as Nonqualified Stock Option. The Option is hereby
designated as not constituting an "incentive stock option" within meaning of
section 422 of the Internal Revenue Code of 1986, as amended (the "Code"); this
Agreement shall be interpreted and treated consistently with such designation.

4.2.     Meaning of Certain Terms. (a) As used herein, employment by the Company
shall include employment by an affiliate of the Company. References in this
Agreement to sections of the Code shall be deemed to refer to any successor
section of the Code or any successor internal revenue law.

(b)      As used herein, the term "Legal Representative" shall include an
executor, administrator, legal representative, guardian or similar person and
the term "Permitted Transferee" shall include any transferee (i) pursuant to a
transfer permitted under Section 3.4 of the Plan and Section 3.1 hereof or (ii)
designated pursuant to beneficiary designation procedures approved by the
Company.

4.3.     Successors. This Agreement shall be binding upon and inure to the
benefit of any successor or successors of the Company and any person or persons
who shall, upon the death of the Optionee, acquire any rights hereunder in
accordance with this Agreement or the Plan.

4.4.     Notices. All notices, requests or other communications provided for in
this Agreement shall be made, if to the Company, to Firearms Training Systems,
Inc., 7340 McGinnis Ferry Road, Suwanee, Georgia 30174, Attention: Corporate
Secretary, and if to the Optionee, to the Optionee c/o Firearms Training
Systems, Inc., 7340 McGinnis Ferry Road, Suwanee, Georgia 30174. All notices,
requests or other communications provided for in this Agreement shall be made in
writing either (a) by personal delivery to the party entitled thereto, (b) by
facsimile with confirmation of receipt, (c) by mailing in the

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United States mails to the last known address of the party entitled thereto or
(d) by express courier service. The notice, request or other communication shall
be deemed to be received upon personal delivery, upon confirmation of receipt of
facsimile transmission or upon receipt by the party entitled thereto if by
United States mail or express courier service; provided, however, that if a
notice, request or other communication sent to the Company is not received
during regular business hours, it shall be deemed to be received on the next
succeeding business day of the Company.

4.5.     Governing Law. This Agreement, the Option and all determinations made
and actions taken pursuant hereto and thereto, to the extent not governed by the
laws of the United States, shall be governed by the laws of the State of
Delaware and construed in accordance therewith without giving effect to
principles of conflicts of laws.

4.6.     Counterparts. 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.

FIREARMS TRAINING SYSTEMS, INC.

By:
   ------------------------------------------
   Name:
   Title:

Accepted this _________ day of _________________, 2000.

Optionee

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                                                                   EXHIBIT 10.31
EMPLOYMENT AGREEMENT DATED AS OF NOVEMBER 1, 2000
BETWEEN THE COMPANY AND ROBERT F. MECREDY

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
November 1, 2000 between FATS, Inc., a Delaware corporation (the "Company"), and
Robert F. Mecredy (the "Executive").

         WHEREAS, the Company is the operating subsidiary of Firearms Training
Systems, Inc. (the "Parent"), a leading worldwide provider of small and
supporting arms training simulators; and

         WHEREAS, the Company desires to employ the Executive to serve as
President and Chief Executive Officer of the Company, and the Executive desires
to be employed by the Company, upon the terms and subject to the conditions set
forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein, the Company and the Executive hereby agree as
follows:

1.       Employment. The Company hereby agrees to employ the Executive and the
Executive hereby agrees to be employed by the Company upon the terms and subject
to the conditions contained in this Agreement. The term of employment of the
Executive by the Company pursuant to this Agreement (the "Employment Period")
shall commence on April 1, 2000 (the "Effective Date") and shall end on the
third annual anniversary of the Effective Date, unless earlier terminated
pursuant to Section 4 hereof.

2.       Position and Duties; Responsibilities. (a) Position and Duties. The
Company shall employ the Executive during the Employment Period as its chief
executive officer, with the title of President and Chief Executive Officer. The
Executive shall report to the Board of Directors (the "Board") of the Parent.
During the Employment Period, the Executive shall perform faithfully and loyally
and to the best of the Executive's abilities the duties assigned to the
Executive hereunder and shall devote the Executive's full business time,
attention and effort to the affairs of the Company, and its subsidiaries and
shall use the Executive's best efforts to promote the interests of the Company,
its subsidiaries and the Parent. The Executive may engage in charitable, civic
or community activities and, with the prior approval of the Board, may serve as
a director of any other business corporation, provided that such activities or
service do not interfere with the Executive's duties hereunder or violate the
terms of any of the covenants contained in Sections 6, 7, 8, 9 or 10 hereof.

(b)      Responsibilities. Subject to the powers, authority and responsibilities
vested in the Board and in duly constituted committees of the Board, the
Executive shall have the authority and responsibility for the formulation and
execution of the corporate policy for the Company. The Executive shall also
perform such other duties (not inconsistent with the position of principal
executive officer) on behalf of the Company and its subsidiaries as may from
time to time be authorized or directed by the Board.

3.       Compensation. (a) Base Salary. During the Employment Period, the
Company shall pay to the Executive a base salary at the rate of $200,000 per
annum ("Base Salary"), payable in accordance with the Company's executive
payroll policy. Such Base Salary shall be reviewed annually and shall be subject
to such changes as determined by the Compensation Committee of the Board (the
"Compensation Committee").

(b)      Annual Bonus. During the Employment Period, the Company shall provide
the Executive the opportunity to earn an annual incentive bonus, based upon the
Company's performance, the Executive's individual performance and the Company's
liquidity position (the "Annual Bonus"). The actual amount of such Annual Bonus
shall be determined by the Board, in its sole discretion; provided, however,
that in no event may the Executive receive an Annual Bonus in excess of 100% of
the Executive's Base Salary.

(c)      Stock Options. As of the date of this Agreement, the Executive shall be
entitled to receive a grant of nonqualified stock options under the Firearms
Training Systems, Inc. Stock Option Plan as follows:

(i)      The Executive shall be granted an option to purchase from the Parent
240,000 shares of its Class A common stock, 0.000006 par value ("Common Stock"),
at the price of $0.50 per share, under the terms and conditions described in the
Stock Option Agreement Series F, to be entered into between the Executive and
the Parent.

(ii)     The Executive shall be granted an option to purchase from the Parent
240,000 shares of Common Stock, at the price of $0.50 per share, under the terms
and conditions described in the Stock Option Agreement Series G, to be entered
into between the Executive and the Parent.

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(iii)    The Executive shall be granted an option to purchase from the Parent
240,000 shares of Common Stock, at the price of $0.01 per share, under the terms
and conditions described in the Stock Option Agreement Series H, to be entered
into between the Executive and the Parent.

(d)      Other Benefits. During the Employment Period, the Executive shall be
entitled to participate in the Company's employee benefit plans that are
generally available from time to time to executives of the Company, including
group medical, dental, life, accidental death and dismemberment, short-term
disability, long-term disability, business travel accident plans, sick leave,
vacation, and the profit sharing retirement plan (all such benefits being
hereinafter referred to as the "Employee Benefits").

(e)      Expense Reimbursement. During the Employment Period, the Company shall
reimburse the Executive, in accordance with the Company's policies and
procedures, for all proper documented expenses incurred by the Executive in the
performance of the Executive's duties hereunder.

4.       Termination. (a) Death. Upon the death of the Executive, this Agreement
shall automatically terminate and all rights of the Executive and the
Executive's heirs, executors and administrators to compensation and other
benefits under this Agreement shall cease immediately, except that the
Executive's heirs, executors or administrators, as the case may be, shall be
entitled to:

(i)      accrued Base Salary through and including the Executive's date of
death;

(ii)     the Annual Bonus, if any, that the Executive would have received for
the fiscal year in which his death occurs had he remained employed through the
end of such year, reduced pro rata for that portion of such fiscal year not
completed by the Executive and payable at such time as the Executive would have
received such Annual Bonus had he remained employed through the end of such
fiscal year; and

(iii)    other Employee Benefits to which the Executive was entitled on the date
of death in accordance with the terms of the plans and programs of the Company.

(b)      Disability. The Company may, at its option, terminate this Agreement
upon written notice to the Executive if the Executive, because of physical or
mental incapacity or disability, fails to perform the essential functions of the
Executive's position, with or without reasonable accommodation, required of the
Executive hereunder for a continuous period of 120 days or any 180 days within
any 12-month period. In the event of any dispute regarding the existence of the
Executive's incapacity or disability hereunder, the matter shall be resolved by
the determination of a physician, qualified to practice medicine in the state of
the Executive's Residence, to be selected by the Board. The Executive shall have
the right to require a second opinion from a physician qualified to practice
medicine in the state of the Executive's residence, as selected by the
Executive. If the initial and second opinions are inconsistent, the matter shall
be resolved by a third opinion from a physician licensed to practice medicine as
selected by the agreement between the Company and the Executive. Upon such
termination, all obligations of the Company hereunder shall cease immediately,
except that the Executive shall be entitled to:

(i)      accrued Base Salary through and including the effective date of the
Executive's termination of employment;

(ii)     the Annual Bonus, if any, that the Executive would have received for
the fiscal year in which the Executive's termination of employment occurs had he
remained employed through the end of such year, reduced pro rata for that
portion of such fiscal year not completed by the Executive and payable at such
time as the Executive would have received such Annual Bonus had he remained
employed through the end of such fiscal year; and

(iii)    other Employee Benefits to which the Executive is entitled upon
termination of employment in accordance with the terms of the plans and programs
of the Company.

(c)      Cause. (i) The Company may, at its option, terminate the Executive's
employment under this Agreement for Cause (as hereinafter defined) upon written
notice to the Executive (the "Cause Notice"). Any such termination for Cause
shall be authorized by the Board. The Cause Notice shall state the particular
action(s) or inaction(s) giving rise to termination for Cause.

(ii)     As used in this Agreement, the term "Cause" shall mean any one or more
of the following:

(A)      The Executive's commission of a felony or any other crime involving
moral turpitude, fraud, misrepresentation, embezzlement, or theft,

(B)      The Executive's engaging in any other activity that is harmful
(including alcoholic or other self-induced affliction), in a material respect,
to the Company, any of its subsidiaries or the Parent monetarily or otherwise,
as determined by a majority of the Board;

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(C)      The Executive's material malfeasance (including, without limitation,
any intentional act of fraud or theft), misconduct, or gross negligence in
connection with the performance of his duties hereunder;

(D)      The Executive's significant violation of any statutory or common law
duty of loyalty to the Company, any of its subsidiaries or the Parent;

(E)      The Executive's material breach of this Agreement or of a material
policy of the Company or the Parent (including, without limitation, disclosure
or misuse of any confidential or competitively sensitive information or trade
secrets of the Company, any of its subsidiaries or the Parent);

(F)      The Executive's refusal or failure to carry out directives or
instructions of the majority of the Board that are consistent with the scope and
nature of the Executive's duties and responsibilities set forth herein; or

(G)      Any breach by the Executive of any one or more of the covenants
contained in Section 6, 7, 8, 9 or 10 hereof.

(iii) With respect to E and F above, the Executive shall have ten days after the
Cause Notice is given to cure the particular action(s) or inaction(s), to the
extent a cure is possible. If the Executive so effects a cure to the
satisfaction of the Board, the Cause Notice shall be deemed rescinded and of no
force or effect.

(iv)     The exercise of the right of the Company to terminate this Agreement
pursuant to this Section 4(c) shall not abrogate the rights or remedies of the
Company in respect of the breach giving rise to such termination.

(v)      If the Company terminates the Executive's employment for Cause, all
obligations of the Company hereunder shall cease, except that the Executive
shall be entitled to the payments and benefits specified in Sections 4(b)(i) and
4(b)(iii) hereof.

(d)      Termination Without Cause. The Company may, at its option, terminate
the Executive's employment under this Agreement upon written notice to the
Executive for a reason other than a reason set forth in Section 4(a), 4(b) or
4(c). Any such termination shall be authorized by the Board. If the Company
terminates the Executive's employment for any such reason, all obligations of
the Company hereunder shall cease immediately, except that the Executive shall
be entitled to:

(i)      accrued Base Salary through and including the date of the Executive's
termination of employment;

(ii)     other Employee Benefits to which the Executive is entitled upon
termination of employment in accordance with the terms of the plans and programs
of the Company; and

(iii)    an amount equal to the Executive's Base Salary as in effect immediately
prior to the Executive's termination of employment, payable in substantially
equal monthly installments during the 24-month period following the Executive's
termination of employment with the Company.

Notwithstanding Section 4(d)(iii), the amount payable to the Executive under
such Section 4(d)(iii) during the last 12 months for which such amount is
payable shall be reduced by the amount of salary, bonus or other compensation
which the Executive receives from any company other than the Company in exchange
for the Executive's services as an employee or director of or consultant to such
company during such 12-month period. The Executive shall use his best efforts to
seek other employment or a consulting engagement for this purpose and to
otherwise mitigate the amount payable pursuant to Section 4(d)(iii) hereof.

(e)      Voluntary Termination for Good Reason. If the Executive reasonably
believes he has Good Reason (as defined below) to terminate employment he must
give the Board 60 days prior written notice (or such shorter period as may be
permitted by the Board) and a reasonable opportunity to cure, which shall be a
minimum of 30 days. If the Board fails to cure the Good Reason within such
reasonable time, the Executive may voluntarily terminate his employment with the
Company prior to the end of the Employment Period. If the Executive voluntarily
terminates his employment pursuant to this Section 4(e), the Executive shall be
entitled to receive the payments and benefits specified by Section 4(d), payable
in accordance with and subject to the conditions of such Section. For purposes
of this Agreement, "Good Reason" shall mean (i) the assignment to the Executive
of duties inconsistent with the position of President and Chief Executive
Officer of the Company or (ii) the assignment of the Executive to a position of
lesser dignity. Any dispute which may arise concerning whether a voluntary
termination of employment by the Executive is for Good Reason shall be resolved
by an arbitrator appointed pursuant to Section 15.

(f)      Other Voluntary Termination. Upon 60 days prior written notice to the
Company (or such shorter period as may be permitted by the Board), the Executive
may voluntarily terminate the Executive's employment with the Company for any
reason. If the Executive voluntarily terminates the Executive's

                                    Page 39
<PAGE>   4

employment pursuant to this Section 4(f), all obligations of the Company
hereunder shall cease immediately, except that the Executive shall be entitled
to the payments and benefits specified in Sections 4(d)(i) and 4(d)(ii) hereof.

5.       Federal and State Withholding. The Company shall deduct from the
amounts payable to the Executive pursuant to this Agreement the amount of all
required federal, state and local withholding taxes in accordance with all
applicable federal employment taxes.

6.       Noncompetition; Nonsolicitation. (a) General. The Executive
acknowledges that in the course of the Executive's employment with the Company
the Executive has and will become familiar with trade secrets and other
confidential information concerning the Company, its subsidiaries and the Parent
and that the Executive' s services will be of special, unique and extraordinary
value to the Company, its subsidiaries and the Parent.

(b)      Noncompetition. The Executive agrees that during the period of the
Executive's employment with the Company, the period, if any, during which the
Executive is receiving payments from the Company pursuant to Section 4, and for
a period of two years thereafter the Executive shall not in any manner, directly
or indirectly, through any person, firm or corporation, alone or as a member of
a partnership or as an officer, director, stockholder, investor or employee of
or consultant or other agent to any other corporation or enterprise or
otherwise, engage or be engaged, or assist any other person, firm, corporation
or enterprise in engaging or being engaged, in any business, in which the
Executive was involved or had knowledge, being conducted by, or contemplated by,
the Company or any of its subsidiaries as of the termination of the Executive's
employment in any geographic area in which the Company, any of its subsidiaries
or the Parent is then conducting or is contemplating conducting such business.

(c)      Nonsolicitation. The Executive further agrees that during the period of
the Executive's employment with the Company, the period if any during which the
Executive is receiving payments from the Company pursuant to Section 4, and for
a period of three years thereafter, the Executive shall not (i) in any manner,
directly or indirectly, induce or attempt to induce any employee of the Company,
any of its subsidiaries or the Parent to terminate or abandon his or her
employment for any purpose whatsoever or (ii) in connection with any business to
which Section 6(b) applies, call on, service, solicit or otherwise do business
with any customer of the Company, any of its subsidiaries or the Parent;
provided, however, the Executive may solicit business with any customer of the
Company, any of its subsidiaries or the Parent to the extent that such business
is unrelated to the business conducted or contemplated being conducted between
the Company, its subsidiaries or the Parent and their customers.

(d)      Exceptions. Nothing in this Section 6 shall prohibit the Executive from
being (i) a stockholder in a mutual fund or a diversified investment company or
(ii) an owner of not more than two percent of the outstanding stock of any class
of a corporation, any securities of which are publicly traded, so long as the
Executive has no active participation in the business of such corporation.

(e)      Reformation. If, at any time of enforcement of this Section 6, a court
or an arbitrator holds that the restrictions stated herein are unreasonable
under circumstances then existing, the parties hereto agree that the maximum
period, scope or geographical area reasonable under such circumstances shall be
substituted for the stated period, scope or area and that the court or
arbitrator shall be allowed to revise the restrictions contained herein to cover
the maximum period, scope and area permitted by law. This Agreement shall not
authorize a court or arbitrator to increase or broaden any of the restrictions
in this Section 6.

7.       Nondisparagement. The Executive agrees that during the Executive' s
employment with the Company and thereafter, the Executive shall not directly (or
through any other person or entity) make any public or private statements
(whether oral or in writing) that are derogatory or damaging to the Company or
the Parent, including, but not limited to its businesses, activities,
operations, affairs, reputation or prospects or any of their officers,
employees, or current or former directors or shareholders. The Company also
agrees that during the Executive's employment with the Company and thereafter,
the Company shall not at any time make any defamatory public or private
statements, whether oral or in writing, concerning the Executive.

8.       Confidentiality. The Executive shall not, at any time during the
Employment Period or thereafter, make use of or disclose, directly or
indirectly, any (i) trade secret or other confidential or secret information of
the Company, any of its subsidiaries or the Parent or (ii) other technical,
business, proprietary or financial information of the Company, any of its
subsidiaries or the Parent not available to the public generally ("Confidential
Information"), except to the extent that such Confidential Information (a)
becomes a matter of public record or is published in a newspaper, magazine or
other periodical or on electronic or other media available to the general
public, other than as a result of any act or omission of the Executive, (b) is
required to be disclosed by any law, regulation or order of any court or
regulatory commission, department or agency, provided that the Executive gives
prompt notice of such requirement to the Company to enable the Company to seek
an appropriate protective order, or (c) is required to be used or disclosed by
the Executive to perform properly the Executive's duties under this Agreement.
Promptly following the termination of the Employment Period, the Executive shall
surrender to

                                    Page 40
<PAGE>   5

the Company all records, memoranda, notes, plans, reports, computer tapes and
software and other documents and data which constitute Confidential Information
which the Executive may then possess or have under the Executive's control
(together with all copies thereof).

9.       Standstill. The Executive hereby agrees that, unless specifically
requested in writing in advance by the Board, the Executive will not at any time
during the period of the Executive's employment with the Company, the period, if
any, during which the Executive is receiving payments from the Company pursuant
to Section 4, and for a period of three years thereafter (and the Executive will
not at any time during such period assist or encourage others to) participate,
directly or indirectly in any activity that, if consummated, would result in a
Change in Control of the Parent. For purposes of this Section 9, a Change in
Control of the Parent shall mean (a) any sale or other disposition of all or
substantially all of the assets of the Parent, (b) any acquisition of more than
40% of the then outstanding shares of common stock of the Parent, (c) any merger
in which the existing stockholders of the Parent fail to own 50% or more of the
corporation resulting from such merger or (d) any change in the membership of
the Board such that the individuals who, as of the date of this Agreement,
constitute the Board (the "Incumbent Board") cease for any reason to constitute
at least a majority of such Board; provided, however, that any individual who
becomes a director of the Parent subsequent to the date of this Agreement whose
election, or nomination for election by the Parent's stockholders, was approved
by the vote of at least a majority of the directors then comprising the
Incumbent Board shall be deemed a member of the Incumbent Board; and provided
further, that no individual who was initially elected as a director of the
Parent as a result of an actual or threatened election contest, as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or any other actual or
threatened solicitation of proxies or consents by or on behalf of any
individual, entity or group, including any "person" within the meaning of
Section 13(d) of the Exchange Act, other than the Board shall be deemed a member
of the Incumbent Board.

10.      Inventions. The Executive agrees to disclose fully and promptly to the
Company in writing, upon the Company's request, all discoveries and
improvements, patentable or otherwise, trade secrets and ideas, writings and
copyrightable material which may be conceived by the Executive or developed or
acquired by the Executive during the Employment Period or the six-month period
thereafter and which may pertain directly or indirectly to the business of the
Company, any of its subsidiaries or the Parent (collectively, "Inventions"). All
Inventions shall constitute works made for hire owned by the Company and shall
be the exclusive property of the Company. To the extent any Invention does not
constitute a work made for hire, the Executive hereby assigns to the Company,
without further consideration, the Executive's entire right, title and interest
in and to such Invention, under patent, copyright, trade secret and trademark
law, in perpetuity or for the longest period otherwise permitted by law. The
Executive shall, upon the Company's request, execute, acknowledge and deliver to
the Company all instruments and do all other acts which are necessary or in the
Company's opinion desirable to evidence more fully transfer of ownership of any
Invention to the Company, or to enable the Company, any of its subsidiaries or
the Parent, to file and prosecute applications for, and to acquire, maintain and
enforce, all patents, trademarks and copyrights in all countries.

11.      Key Man Insurance. The Executive agrees to cooperate fully with the
Company, including but not limited to submitting to a medical examination, in
securing key man insurance (the entire cost of which shall be borne by the
Company) on the life of the Executive.

12.      Enforcement. The parties hereto agree that the Company, its
subsidiaries and the Parent would be damaged irreparably in the event that any
provision of Section 6, 7, 8, 9 or 10 of this Agreement were not performed in
accordance with its terms or were otherwise breached and that money damages
would be an inadequate remedy for any such nonperformance or breach.
Accordingly, the Company and the Parent and their successors and permitted
assigns shall be entitled, in addition to other rights and remedies existing in
their favor, to an injunction or injunctions to prevent any breach or threatened
breach of any of such provisions and to enforce such provisions specifically
(without posting a bond or other security). The Executive agrees that the
Executive will submit to the personal jurisdiction of the courts of the State of
Delaware in any action by the Company or the Parent enforce an arbitration award
against the Executive or to obtain interim injunctive or other relief pending an
arbitration decision.

13.      Representations. The Executive represents and warrants to the Company
that (a) the execution, delivery and performance of this Agreement by the
Executive does not and will not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which the Executive is a party or by which the Executive is bound, (b) the
Executive is not a party to or bound by any employment agreement, noncompetition
agreement or confidentiality agreement with any other person or entity and (c)
upon the execution and delivery of this Agreement by the Company, this Agreement
shall be the valid and binding obligation of the Executive, enforceable in
accordance with its terms.

14.      Survival. Sections 6, 7, 8, 9 and 10 of this Agreement shall survive
and continue in full force and effect in accordance with their respective terms,
notwithstanding any termination of the Employment Period.

15.      Arbitration. Except as otherwise set forth in Section 12 hereof, any
dispute or controversy between the Company or the Parent and the Executive,
whether arising out of or relating to this Agreement, the breach of this
Agreement, or otherwise, shall be settled by arbitration in the State of

                                    Page 41
<PAGE>   6

Delaware administered by the American Arbitration Association, with any such
dispute or controversy arising under this Agreement being so administered in
accordance with its Commercial Rules then in effect, and judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The arbitrator shall have the authority to award any remedy or relief
that a court of competent jurisdiction could order or grant, including, without
limitation, the issuance of an injunction. However, either party may, without
inconsistency with this arbitration provision, apply to any court having
jurisdiction over such dispute or controversy and seek interim provisional,
injunctive or other equitable relief until the arbitration award is rendered or
the controversy is otherwise resolved. Except as necessary in court proceedings
to enforce this arbitration provision or an award rendered hereunder, or to
obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior
written consent of the Company and the Executive. The Company and the Executive
acknowledge that this Agreement evidences a transaction involving interstate
commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the
interpretation and enforcement of this arbitration provision.

16.      Notices. All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed given when (a) delivered
personally or by overnight courier to the following address of the other party
hereto (or such other address for such party as shall be specified by notice
given pursuant to this Section) or (b) sent by facsimile to the following
facsimile number of the other party hereto (or such other facsimile number for
such party as shall be specified by notice given pursuant to this Section), with
the confirmatory copy delivered by overnight courier to the address of such
party pursuant to this Section 16:

If to the Company, to:
FATS, Inc.
7340 McGinnis Ferry Road
Suwanee, Georgia 30174
Attention: Chairman of the Board of Directors of Firearms Training Systems, Inc.

With copies to:
Scott Perekslis
Centre Partners Management LLC
30 Rockefeller Plaza
New York, New York 10020

James G. Archer
Sidley & Austin
875 Third Avenue
New York, New York 10022

If to the Executive, to:
Robert F. Mecredy
1545 Lockridge Dr.
Cumming, GA  30141

17.      Severability. Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of any other provision of this Agreement or the
validity, legality or enforceability of such provision in any other
jurisdiction, but this Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

18.      Entire Agreement. This Agreement, and the agreements referenced herein,
constitute the entire agreement and understanding between the parties with
respect to the subject matter hereof and supersedes and preempts any prior
understandings, agreements or representations by or between the parties, written
or oral, which may have related in any manner to the subject matter hereof.

19.      Successors and Assigns. This Agreement shall be enforceable by the
Executive and the Executive's heirs, executors, administrators and legal
representatives, and by the Company and its successors and assigns.

20.      Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of Delaware without
regard to principles of conflict of laws.

21.      Amendment and Waiver. The provisions of this Agreement may be amended
or waived only by the written agreement of the Company and the Executive, and no
course of conduct or failure or delay in enforcing the provisions of this
Agreement shall affect the validity, binding effect or enforceability of this
Agreement.

                                    Page 42
<PAGE>   7

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

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

FATS, INC.

By:
   -----------------------------------

Title:
      --------------------------------

ROBERT F. MECREDY

--------------------------------------

                                    Page 43

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