Document:

Exhibit 10.2

                   CONFESSED JUDGMENT DEMAND PROMISSORY NOTE

$ 25,000.00                                                 DECEMBER 12, 2001
 ----------                                                 -----------------

         THE UNDERSIGNED (IF THERE BE MORE THAN ONE UNDERSIGNED, THEIR LIABILITY
SHALL BE JOINT AND SEVERAL) PROMISES TO PAY TO THE ORDER OF ETHAN HOKIT
(HEREINAFTER CALLED HOLDER) UPON THE EARLIER OF DEMAND OR ON OR BEFORE FEBRUARY
12, 2002, THE SUM OF TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($ 25,000.00),
TOGETHER WITH INTEREST THEREON AT THE RATE OF FIFTEEN PERCENT (15%) PER ANNUM
FROM THE DATE OF DEFAULT UNTIL THE DATE ACTUALLY PAID; PROVIDED HOWEVER, IN LIEU
OF INTEREST THE UNDERSIGNED HEREBY AGREE TO PROVIDE HOLDER WITH TWENTY FIVE
THOUSAND (25,000) RESTRICTED SHARES OF ITS COMMON STOCK AND UPON RECEIPT THEREOF
HOLDER AGREES THAT THIS NOTE SHALL BE A NON-INTEREST BEARING NOTE.

         PROVIDED, THAT UPON THE OCCURRENCE OF ANY OF THE FOLLOWING EVENTS OF
DEFAULT, IF THE HOLDER SO ELECTS, ALL OF THE UNPAID BALANCE HEREUNDER, INCLUDING
INTEREST, SHALL IMMEDIATELY BE DUE AND PAYABLE: (A) IF ANY OBLIGOR SHALL MAKE AN
ASSIGNMENT FOR THE BENEFIT OF CREDITORS OR IF ANY VOLUNTARY OR INVOLUNTARY
PROCEEDINGS BE INSTITUTED BY OR AGAINST ANY OBLIGOR UNDER ANY PROVISION OF THE
BANKRUPTCY ACT OF ANY OTHER FEDERAL OR STATE STATUTE OR RULE PROVIDING FOR THE
RELIEF OF DEBTORS, COMPOSITION OF CREDITORS, ARRANGEMENTS, REORGANIZATIONS,
ORDINARY BANKRUPTCY, OR RECEIVERSHIP OR THE LIKE; (B) THE FAILURE OF ANY OBLIGOR
TO PAY DEBTS AS THEY MATURE IN THE ORDINARY COURSE OF BUSINESS, OR IF THE FAIR
MARKET VALUE OF THE ASSETS OF ANY OBLIGOR SHALL BE LESS THAN THE LIABILITIES OF
SUCH OBLIGOR; (C) THE ENTRY OF ANY JUDGMENT AGAINST ANY OBLIGOR OR THE ISSUING
OF AN ATTACHMENT OR GARNISHMENT AGAINST ANY PROPERTY OF ANY OBLIGOR; (D) THE
OCCURRENCE OF ANY ADVERSE CHANGE IN THE FINANCIAL CONDITION OF ANY OBLIGOR IN
WHICH CASE THE HOLDER DEEMS ITS POSITION TO HAVE BECOME IMPAIRED; (E) THE
DISSOLUTION, MERGER, CONSOLIDATION OR REORGANIZATION OF ANY OBLIGOR WHICH IS A
CORPORATION, PARTNER- SHIP, JOINT VENTURE, BUSINESS TRUST OR OTHER ASSOCIATION;
(F) THE ASSESSMENT, IMPOSITION OR EXISTENCE, OF ANY GENERAL OR SPECIFIC LIEN FOR
ANY FEDERAL, STATE OR LOCAL TAXES OR CHARGES AGAINST ANY PROPERTY FOR ANY
OBLIGOR; AND (G) THE DEATH OF ANY OBLIGOR WHO IS A NATURAL PERSON. THE TERM
"OBLIGOR" INCLUDES ALL UNDERSIGNED MAKERS AND ALL ENDORSERS, GUARANTORS AND
SURETIES.

         EACH AND EVERY OBLIGOR HEREBY AUTHORIZES RICHARD H. TANENBAUM, ESQUIRE
OR ANY ATTORNEY OR CLERK OR ANY MEMBER OF ANY COURT WITHIN THE UNITED STATES OR
ELSEWHERE TO ENTER AN APPEARANCE ON THEIR BEHALF AND TO CONFESS JUDGMENT AGAINST
OBLIGERS, EITHER JOINTLY OR SEVERALLY, TO BE ENTERED BY THE PROPER OFFICIAL, AT
ANY TIME AFTER THIS NOTE IS DUE (WHETHER UPON NORMAL MATURITY OR ACCELERATION
HEREUNDER), HEREBY WAIVING ALL EXEMPTIONS, FOR THE PRINCIPAL AMOUNT OF THIS NOTE
AND INTEREST AND 15% ATTORNEYS' FEES AND COURT COSTS. IF THIS NOTE IS REFERRED
TO AN ATTORNEY FOR COLLECTION, AND PAYMENT IS OBTAINED WITHOUT THE ENTRY OF A
JUDGMENT, THEN OBLIGERS SHALL PAY TO HOLDER ATTORNEYS' FEES IN THE AMOUNT
AFORESAID.

         EXECUTED UNDER SEAL ON THE DAY AND YEAR FIRST ABOVE WRITTEN.

WITNESS:

                                                   MILITARY RESALE GROUP, INC.
                                                   ---------------------------

                                                   BY                   [SEAL]
                                                   ---------------------------
                                                   EDWARD T. WHELAN, CHAIRMANExhibit 10.3

                           MILITARY RESALE GROUP, INC.

                             2001 STOCK OPTION PLAN

                  Adopted and Effective as of November 15, 2001

<PAGE>

                           MILITARY RESALE GROUP, INC.
                             2001 STOCK OPTION PLAN

1.       PURPOSE OF THE PLAN.

         This Military Resale Group, Inc. 2001 Stock Option Plan is intended to
promote the interests of the Company and its shareholders by providing the
Company's officers, directors, key employees and consultants, on whose judgment,
initiative and efforts the successful conduct of the business of the Company
depends, and who are responsible for the management, growth and protection of
the business, with appropriate incentives and rewards to encourage them to
continue in the employ of the Company and to maximize their performance.

2.       DEFINITIONS.

         As used in the Plan, the following definitions apply to the terms
indicated below:

         (a) "Board of Directors" shall mean the Board of Directors of the
 Company.

         (b) "Cause" shall mean, when used in connection with the termination of
a Participant's employment, the termination of the Participant's employment on
account of: (i) the willful and continued failure by the Participant
substantially to perform his or her duties and obligations to the Company (other
than any such failure resulting from incapacity due to physical or mental
illness), (ii) the willful violation by the Participant of (A) any federal or
state law or (B) any rule of the Company, which violation would materially
reflect on the Participant's character, competence or integrity, (iii) a breach
by a Participant of the Participant's duty of loyalty to the Company such as
Participant's solicitation of customers or employees of the Company on behalf of
any other Person, (iv) the Participant's unauthorized removal from the Company's
premises of any document (in any medium or form) relating to the Company, its
business or its customers, provided, however, that no such removal shall be
deemed "unauthorized" if it is in furtherance of an individual's duties and
obligations to the Company and such removal is a common practice at the Company,
(v) the Participant's unauthorized disclosure to any Person of any confidential
information regarding the Company, (vi) the willful engaging by the Participant
in any other misconduct which is materially injurious to the Company or (vii)
any event that constitutes "cause" (or any similar term that constitutes the
basis on which the Company may terminate the employee's employment with the
Company) for purposes of an employment agreement between the Participant and the
Company. For purposes of this Section 2(b), no act, or failure to act, on a
Participant's part shall be considered "willful" unless done, or omitted to be
done, by the Participant in bad faith and without reasonable belief that the
action or omission was in the best interests of the Company. Any rights the
Company may have hereunder in respect of the events giving rise to Cause shall
be in addition to the rights the Company may have under any other agreement with
the Participant or at law or in equity. If, subsequent to the termination of a
Participant's employment without Cause, it is determined by the Board of

<PAGE>

Directors that the Participant's employment could have been terminated for
Cause, such Participant's employment shall, at the election of the Committee in
its sole discretion, be deemed to have been terminated for Cause.

         (c) "Code" shall mean the Internal Revenue Code of 1986, as amended.

         (d) "Committee" shall mean the Compensation Committee of the Board;
PROVIDED, HOWEVER, the Compensation Committee shall not take any action under
the Plan unless it is at all times composed solely of not less than two
"Non-Employee Directors" within the meaning of Rule 16b-3, as promulgated under
the Securities Exchange Act of 1934, as amended. In the event the Compensation
Committee is not composed of at least two Non-Employee Directors when the
Company is subject to the Securities Act, or, in the event the Committee is
unable to act, the Board shall take any and all actions required or permitted to
be taken by the Committee under the Plan and shall serve as the Committee.

         (e) "Company" shall mean Military Resale Group, Inc., a New York
corporation.

         (f) "Company Stock" shall mean the common stock, par value $.001
 per share, of the Company.

         (g) "Disability" shall mean any physical or mental condition as a
result of which a Participant is disabled within the meaning of Section
422(c)(6) of the Code.

         (h) "Exchange Act" shall mean the Securities Exchange Act of 1934,
 as amended.

         (i) "Fair Market Value" with respect to a share of Company Stock on any
relevant date shall be determined in accordance with the following provisions:

                  (1) If, at the time an Option is granted under the Plan, the
         Company is publicly traded, "Fair Market Value" shall be determined as
         of the last business day for which the prices or quotes discussed in
         this sentence are available prior to the date such Option is granted
         and shall mean (i) the closing selling price per share on that date of
         the Company Stock on the principal national securities exchange on
         which the Company Stock is traded, if the Company Stock is then traded
         on a national securities exchange; or (ii) the closing selling price
         per share on that date of the Company Stock on the NASDAQ National
         Market List, if the Company Stock is not then traded on a national
         securities exchange; or (iii) the closing bid price per share last
         quoted on that date by an established quotation service for
         over-the-counter securities, if the Company Stock is not reported on
         the NASDAQ National Market List.

                  (2) If the Company Stock is not publicly traded at the time an
         Option is granted under the Plan, "Fair Market Value" shall be deemed
         to be the fair value of the Company Stock as determined by the
         Committee after taking into consideration all factors which it deems
         appropriate, including, without limitation, recent sale and offer
         prices of the Company Stock in private transactions negotiated at arm's
         length.

                                       2

<PAGE>

          (j) "Incentive Award" shall mean an Option, a SAR, a Restricted Stock,
or a Stock Bonus Award granted pursuant to the terms of the Plan.

         (k) "Incentive Stock Option" shall mean an Option that is an "incentive
stock option" within the meaning of Section 422 of the Code and that is
identified as an Incentive Stock Option in the agreement by which it is
evidenced.

         (l) "Issue Date" shall mean the date established by the Committee on
which certificates representing shares of Restricted Stock shall be issued by
the Company pursuant to the terms of Section 8(d) hereof.

         (m) "Non-Qualified Stock Option" shall mean an Option that is not
 an Incentive Stock Option.

         (n) "Option" shall mean an option to purchase shares of Company Stock
granted pursuant to Section 6 hereof. Each Option, or portion thereof, shall be
identified as either an Incentive Stock Option or a Non-Qualified Stock Option
in the agreement by which such Option is evidenced.

         (o) "Participant" shall mean an employee, officer or director of the
Company or any subsidiary of the Company or a consultant to the Company or any
subsidiary of the Company selected to participate in the Plan and to whom an
Incentive Award is granted pursuant to the Plan, and, upon his or her death,
that Person's successors, heirs, executors and administrators, as the case may
be.

         (p) "Person" shall mean a "person," such as term is used in
Sections 13(d) and 14(d) of the Exchange Act.

         (q) "Plan" shall mean this Interactive Marketing Technology, Inc.
 2000 Stock Option Plan, as it may be amended from time to time.

         (r) "Restricted Stock" shall mean a share of Company Stock that is
granted pursuant to the terms of Section 8 hereof and that is subject to the
restrictions set forth in Section 8(c) hereof for as long as such restrictions
continue to apply to such share.

         (s) "Retirement" shall mean a Participant's termination of employment
(other than by reason of death or Disability and other than a termination that
is (or is deemed to have been) for Cause) on or after the later of (i) the date
the Participant attains age 65 and (ii) the date the Participant has completed
five years of service with the Company.

         (t) "Securities Act" shall mean the Securities Act of 1933, as
amended.

         (u) "SAR" shall mean a stock appreciation right granted pursuant
 to Section 7 hereof.

                                       3
<PAGE>

         (v) "Stock Bonus" shall mean a grant of a bonus payable in shares of
Company Stock pursuant to Section 9 hereof.

         (w) "Vesting Date" shall mean the date and/or dates established by the
Committee on which an Incentive Award may vest. In the absence of provisions in
an individual grant agreement to the contrary, Options shall vest ratably over a
three (3) year period, at thirty-three and one-third (33-1/3%) percent per year.

3.       STOCK SUBJECT TO THE PLAN.

         (a)      PLAN AWARDS.
                  -----------

                  Under the Plan, the Committee may, in its sole and absolute
discretion, grant any or all of the following types of Incentive Awards to a
Participant: an Option, a SAR, a Restricted Stock, or a Stock Bonus Award.

         (b)      INDIVIDUAL AWARDS.
                  -----------------

                  Incentive Awards granted under the Plan may be made up
entirely of one type of Incentive Award or any combination of types of Incentive
Awards available under the Plan, in the Committee's sole discretion.

         (c)      AGGREGATE PLAN SHARE RESERVE.
                  ----------------------------

                  The total number of shares of Company Stock available for
grants of Incentive Awards under the Plan shall be 1,500,000, subject to
adjustment in accordance with Section 10 of the Plan. These shares may be either
authorized but unissued shares, newly-issued shares or reacquired shares of
Company Stock. If an Incentive Award or portion thereof shall expire or
terminate for any reason without having been exercised in full, the unexercised
shares covered by such Incentive Award shall be available for future grants of
Incentive Awards under the Plan.

4.       ADMINISTRATION OF THE PLAN.

         The Plan shall be administered by the Committee. The Committee shall
from time to time designate the employees, officers and directors of the Company
or any subsidiary of the Company or consultants to the Company or any subsidiary
of the Company who shall be granted Incentive Awards and the amount and type of
such Incentive Awards.

         The Committee shall have the full authority and discretion to
administer the Plan, including authority to interpret and construe any provision
of the Plan and the terms of any Incentive Award issued under the Plan. The
Committee may also adopt any rules and regulations for administering the Plan as
it may deem necessary or appropriate. Decisions of the Committee shall be final
and binding on all parties.

                                       4

<PAGE>

         The Committee may, in its absolute discretion, without amendment to the
Plan, (i) accelerate the date on which any Option or SAR granted under the Plan
becomes exercisable or otherwise adjust any of the terms of such Option or SAR
(except that no such adjustment shall, without the consent of a Participant,
reduce the Participant's rights under any previously granted and outstanding
Incentive Award), (ii) accelerate the Vesting Date or Issue Date of any share of
Restricted Stock issued under the Plan, or waive any condition imposed
thereunder, and (iii) otherwise adjust or waive any condition imposed on any
Incentive Award made hereunder.

         In addition, the Committee may, in its absolute discretion and without
amendment to the Plan, grant Incentive Awards of any type to Participants on the
condition that such Participants surrender to the Committee for cancellation
such other Incentive Awards of the same or any other type (including, without
limitation, Incentive Awards with higher exercise prices or values) as the
Committee specifies. Notwithstanding Section 3(c) herein, prior to the surrender
of such other Incentive Awards, Incentive Awards granted pursuant to the
preceding sentence of this Section 4 shall not count against the limit set forth
in such Section 3(c).

         Whether an authorized leave of absence, or absence in military or
government service, shall constitute termination of employment shall be
determined by the Committee, subject to applicable laws.

         No member of the Committee shall be liable for any action, omission or
determination relating to the Plan, and the Company (and any affiliate that may
adopt the Plan), jointly and severally, shall indemnify and hold harmless each
member of the Committee and each other director or employee of the Company (or
affiliate) to whom any duty or power relating to the administration or
interpretation of the Plan has been delegated against any cost or expense
(including counsel fees) or liability (including any sum paid in settlement of a
claim with the approval of the Committee) arising out of any action, omission or
determination unless such action, omission or determination was taken or made by
such member, director or employee in bad faith and without reasonable belief
that it was in the best interests of the Company and its affiliates, as the case
may be.

5.       ELIGIBILITY.

         The Persons who shall be eligible to receive Incentive Awards pursuant
to the Plan shall be those employees, officers and directors of the Company or
any subsidiary of the Company or consultants to the Company or any subsidiary of
the Company who are responsible for the management, growth and protection of the
business of the Company; PROVIDED, HOWEVER, that only employees of the Company
or any subsidiary of the Company shall be eligible to receive Incentive Awards
consisting of Incentive Stock Options.

                                       5

<PAGE>

6.       STOCK OPTION AWARDS.

         The Committee may grant Options pursuant to the Plan. Such Options
shall be evidenced by agreements in such form as the Committee shall from time
to time approve. Options shall comply with and be subject to the following terms
and conditions:

         (a)      IDENTIFICATION OF OPTIONS.

                  All Options granted under the Plan shall be clearly identified
in the agreement evidencing such Options as either Incentive Stock Options or as
Non-Qualified Stock Options or a combination of both.

         (b)      EXERCISE PRICE.

                  The exercise price of any Non-Qualified Stock Option granted
under the Plan shall be such price as the Committee shall determine, which may
be greater than, equal to or less than the Fair Market Value of a share of
Company Stock on the date such Non-Qualified Stock Option is granted; PROVIDED,
that such price may not be less than the minimum price required by law. The
exercise price of any Incentive Stock Option granted under the Plan shall be not
less than 100% of the Fair Market Value of a share of Company Stock on the date
on which such Incentive Stock Option is granted.

         (c)      TERM AND EXERCISE OF OPTIONS.

                  (i) Each Option shall be exercisable on such date or dates,
during such period, and for such number of shares of Company Stock as shall be
determined by the Committee on the day on which such Option is granted and set
forth in the Option agreement with respect to such Option; PROVIDED, HOWEVER
that no Option shall be exercisable after the expiration of ten years from the
date such Option was granted; AND, PROVIDED, FURTHER, that each Option shall be
subject to earlier termination, expiration or cancellation as provided in the
Plan.

                  (ii) Each Option shall be exercisable in whole or in part. The
partial exercise of an Option shall not cause the expiration, termination or
cancellation of the remaining portion thereof. Upon the partial exercise of an
Option, the agreement evidencing such Option, marked with such notations as the
Committee may deem appropriate to evidence such partial exercise, shall be
returned to the Participant exercising such Option together with the delivery of
the certificates described in Section 6(e) hereof.

                  (iii) An Option shall be exercised by delivering a written
notice to the Company's principal office to the attention of its Secretary. Such
notice shall specify the number of shares of Company Stock with respect to which
the Option is being exercised, shall be signed by the Participant, and shall be
accompanied by the agreement (or agreements) evidencing the Option and payment
in full of the applicable exercise price for shares of Company Stock purchased
in any combination of the forms specified below:

                                       6

<PAGE>

                           (A) in cash, by certified check, bank cashier's
         check or wire transfer,

                           (B) subject to the approval of the Committee, in
         shares of Company Stock owned by the Participant and valued at their
         Fair Market Value on the date of such exercise,

                           (C) subject to the approval of the Committee,
         pursuant to a "cashless exercise" pursuant to procedures adopted by the
         Committee whereby the Participant, by a properly written notice,
         directs (a) an immediate market sale or margin loan respecting all or a
         part of the shares of Company Stock to which the Participant is
         entitled upon exercise pursuant to an extension of credit by the
         Company to the Participant of the exercise price, (b) the delivery of
         the shares of the Company Stock from the Company directly to the
         brokerage firm, and (c) the delivery of the exercise price from the
         sale or margin loan proceeds from the brokerage firm directly to the
         Company, or

                           (D) such other methods as the Committee may approve,
         from time to time.

Any payments in shares of Company Stock shall be effected by the delivery of
such shares to the Secretary of the Company, duly endorsed in blank or
accompanied by stock powers duly executed in blank, together with any other
documents and evidences as the Secretary of the Company shall require from time
to time

         (d)      NONASSIGNABILITY.

                  During the lifetime of a Participant, each Option granted to
him or her shall be exercisable only by him or her. No Option shall be
assignable or transferable otherwise than by will or by the laws of descent and
distribution.

         (e)      ISSUANCE OF CERTIFICATES.

                  Certificates for shares of Company Stock purchased upon the
exercise of an Option shall be issued in the name of the Participant or his or
her beneficiary, as the case may be, and delivered to the Participant or his or
her beneficiary, as the case may be, as soon as practicable following the date
on which the Option is exercised.

         (f)      LIMITATIONS ON GRANT OF INCENTIVE STOCK OPTIONS.

                  (i) The aggregate Fair Market Value of shares of Company Stock
with respect to which Incentive Stock Options granted hereunder are exercisable
for the first time by a Participant during any calendar year under the Plan and
any other stock option plan of the Company (or any "subsidiary corporation" of
the Company within the meaning of Section 424 of the Code) shall not exceed
$100,000. Such Fair Market Value shall be determined as of the date on which
each such Incentive Stock Option is granted. In the event that the aggregate
Fair Market Value of shares of Company Stock with respect to such Incentive
Stock Options exceeds

                                       7

<PAGE>

$100,000, then Incentive Stock Options granted hereunder to such Participant
shall, to the extent and in the order in which they were granted, automatically
be deemed to be Non-Qualified Stock Options, but all other terms and provisions
of such Incentive Stock Options shall remain unchanged.

                  (ii) No Incentive Stock Option may be granted to an individual
if, at the time of the proposed grant, such individual owns stock possessing
more than 10% of the total combined voting power of all classes of stock of the
Company or any of its "subsidiary corporations" (within the meaning of Section
424 of the Code), unless (I) the exercise price of such Incentive Stock Option
is at least 110% of the Fair Market Value of a share of Company Stock at the
time such Incentive Stock Option is granted and (II) such Incentive Stock Option
is not exercisable after the expiration of five years from the date such
Incentive Stock Option is granted.

                  (iii) No Incentive Stock Option may be granted to an
individual if, at the time of the proposed grant, such individual is not an
employee of the Company.

         (g)      EFFECT OF TERMINATION OF EMPLOYMENT.

                  (i) In the event the employment of a Participant with the
Company shall terminate (as determined by the Committee in its sole discretion)
for any reason other than Retirement, Disability, death or for Cause, (A)
Options granted to such Participant, to the extent that they were exercisable at
the time of such termination, shall remain exercisable until 90 days after the
date of such termination, on which date they shall expire, and (B) Options
granted to such Participant, to the extent that they were not exercisable at the
time of such termination, shall expire at the close of business on the date of
such termination; PROVIDED, HOWEVER, that no Option shall be exercisable after
the expiration of its term.

                  (ii) In the event that the employment of a Participant with
the Company shall terminate on account of the Retirement, Disability or death of
the Participant, (A) Options granted to such Participant, to the extent that
they were exercisable at the time of such termination, shall remain exercisable
until the expiration of their term and (B) Options granted to such Participant,
to the extent that they were not exercisable at the time of such termination,
shall expire at the close of business on the date of such termination. The
effect of exercising any Incentive Stock Option on a day that is more than 90
days after the date of such termination (or, in the case of a termination of
employment on account of Disability, on a day that is more than one year after
the date of such termination) will be to cause such Incentive Stock Option to be
treated as a Non-Qualified Stock Option.

                  (iii) In the event of the termination of a Participant's
employment for Cause, all outstanding Options granted to such Participant shall
automatically expire at the commencement of business as of the date of such
termination.

                                       8

<PAGE>

7.       SARS.

         The Committee may grant SARs pursuant to the Plan, which SARs shall be
evidenced by agreements in such form as the Committee shall from time to time
approve. SARs shall comply with and be subject to the following terms and
conditions:

         (a)      EXERCISE PRICE.

                  The exercise price of any SAR granted under the Plan shall be
determined by the Committee in its discretion at the time of the grant of such
SAR.

         (b)      BENEFIT UPON EXERCISE.

                  (i) The exercise of a SAR with respect to any number of shares
of Company Stock shall entitle a Participant to a cash payment, for each such
share, equal to the excess of (A) the Fair Market Value of a share of Company
Stock on the exercise date over (B) the exercise price of the SAR (subject to
applicable withholding payment requirements).

                  (ii) All payments under this Section 7(b) shall be made as
soon as practicable, but in no event later than five business days, after the
date of the exercise.

         (c)      TERM AND EXERCISE OF SARS.

                  (i) Each SAR shall be exercisable on such date or dates,
during such period, and for such number of shares of Company Stock as shall be
determined by the Committee and set forth in the SAR agreement with respect to
such SAR; PROVIDED, HOWEVER, that no SAR shall be exercisable after the
expiration of ten years from the date such SAR was granted; AND PROVIDED,
FURTHER, HOWEVER, that each SAR shall be subject to earlier termination,
expiration or cancellation as provided in the Plan.

                  (ii) Each SAR may be exercised in whole or in part. The
partial exercise of a SAR shall not cause the expiration, termination or
cancellation of the remaining portion thereof. Upon the partial exercise of a
SAR, the agreement evidencing such SAR, marked with such notations as the
Committee may deem appropriate to evidence such partial exercise, shall be
returned to the Participant exercising such SAR together with the payment
described in Section 7(b) or 7(b)(ii) hereof.

                  (iii) A SAR shall be exercised by delivering written notice to
the Company's principal office, to the attention of its Secretary. Such notice
shall be accompanied by the applicable agreement (or agreements) evidencing the
SAR, shall specify the number of shares of Company Stock with respect to which
the SAR is being exercised, and shall be signed by the Participant. The date
upon which such written notice is received by the Company shall be the exercise
date for the SAR.

                                       9

<PAGE>

                  (iv) During the lifetime of a Participant, each SAR granted to
him or her shall be exercisable only by him or her. No SAR shall be assignable
or transferable otherwise than by will or by the laws of descent and
distribution.

         (d)      TERMINATION OF EMPLOYMENT.

                  (i) In the event that the employment of a Participant with the
Company shall terminate (as determined by the Committee in its sole discretion)
for any reason other than Retirement, Disability, death or for Cause, (A) SARs
granted to such Participant, to the extent that they were exercisable at the
time of such termination, shall remain exercisable until the 30th day after such
termination, on which date they shall expire and (B) SARs granted to such
Participant, to the extent that they were not exercisable at the time of such
termination, shall expire at the close of business on the date of such
termination; PROVIDED, HOWEVER, that no SAR shall be exercisable after the
expiration of its term.

                  (ii) In the event that the employment of a Participant with
the Company shall terminate on account of the Retirement, Disability or death of
the Participant, (A) SARs granted to such Participant, to the extent that they
were exercisable at the time of such termination, shall remain exercisable until
the expiration of their term and (B) SARs granted to such Participant, to the
extent that they were not exercisable at the time of such termination, shall
expire at the close of business on the date of such termination.

                  (iii) In the event of the termination of the Participant's
employment for Cause, all outstanding SARs granted to such Participant shall
automatically expire at the commencement of business as of the date of such
termination.

         (e)      TANDEM SARS.

                  SARs may be granted in tandem with Options (or on a
stand-alone basis). To the extent SARs are granted in tandem with Options and
SARs are exercised, the related Options shall be cancelled. Similarly, if the
Options are exercised, the related SARs shall be cancelled.

8.       RESTRICTED STOCK.

         The Committee may grant shares of Restricted Stock pursuant to the
Plan. Each grant of shares of Restricted Stock shall be evidenced by an
agreement in such form as the Committee shall from time to time approve. Each
grant of shares of Restricted Stock shall comply with and be subject to the
following terms and conditions:

         (a)      ISSUE DATE AND VESTING DATE.

                  At the time of the grant of shares of Restricted Stock, the
Committee shall establish an Issue Date or Issue Dates and a Vesting Date or
Vesting Dates with respect to such shares. The Committee may divide such shares
into classes and assign a different Issue Date

                                       10

<PAGE>

and/or Vesting Date for each class. Except as provided in Sections 8(c) and 8(f)
hereof, upon the occurrence of the Issue Date with respect to a share of
Restricted Stock, a share of Restricted Stock shall be issued in accordance with
the provisions of Section 8(d) hereof. Provided that all conditions to the
vesting of a share of Restricted Stock imposed pursuant to Section 8(b) hereof
are satisfied, and except as provided in Sections 8(c) and 8(f) hereof, upon the
occurrence of the Vesting Date with respect to a share of Restricted Stock, such
share shall vest and the restrictions of Section 8(c) hereof shall cease to
apply to such share.

         (b)      CONDITIONS TO VESTING.

                  At the time of the grant of shares of Restricted Stock, the
Committee may impose such restrictions or conditions, not inconsistent with the
provisions hereof, to the vesting of such shares as it, in its absolute
discretion, deems appropriate. By way of example and not by way of limitation,
the Committee may require, as a condition to the vesting of any shares of
Restricted Stock, that the Participant or the Company achieve such performance
criteria as the Committee may specify at the time of the grant of such shares.

         (c)      RESTRICTIONS ON TRANSFER PRIOR TO VESTING.

                  Prior to the vesting of a share of Restricted Stock, no
transfer of a Participant's rights to such share, whether voluntary or
involuntary, by operation of law or otherwise, shall vest the transferee with
any interest, or right in, or with respect to, such share, but immediately upon
any attempt to transfer such rights, such share, and all the rights related
thereto, shall be forfeited by the Participant and the transfer shall be of no
force or effect.

         (d)      ISSUANCE OF CERTIFICATES.

                  (i) Except as provided in Sections 8(c) or 8(f) hereof,
reasonably promptly after the Issue Date with respect to shares of Restricted
Stock, the Company shall cause to be issued a stock certificate, registered in
the name of the Participant to whom such shares were granted, evidencing such
shares, PROVIDED, that the Company shall not cause to be issued such stock
certificate unless it has received a stock power duly endorsed in blank with
respect to such shares. Each such stock certificate shall bear the following
legend:

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED
HEREBY ARE SUBJECT TO THE RESTRICTIONS, TERMS, AND CONDITIONS (INCLUDING
FORFEITURE PROVISIONS AND RESTRICTIONS AGAINST TRANSFER) CONTAINED IN THE
MILITARY RESALE GROUP, INC.TECHNOLOGIES INC. 2001 STOCK OPTION PLAN AND
INCENTIVE AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER OF SUCH
SHARES AND MILITARY RESALE GROUP, INC. A COPY OF THE PLAN AND AGREEMENT IS ON
FILE IN THE OFFICE OF THE SECRETARY OF MILITARY RESALE GROUP, INC., 2180
EXECUTIVE CIRCLE, COLORADO SPRINGS, COLORADO.

                                       11

<PAGE>

Such legend shall not be removed from the certificate evidencing such shares
until such shares vest pursuant to the terms hereof.

                  (ii) Each certificate issued pursuant to Section 8(d)(i)
hereof, together with the stock powers relating to the shares of Restricted
Stock evidenced by such certificate, shall be deposited by the Company with a
custodian designed by the Company. The Company shall cause such custodian to
issue to the Participant a receipt evidencing the certificates held by it which
are registered in the name of the Participant.

         (e)      CONSEQUENCES UPON VESTING.

                  Upon the vesting of a share of Restricted Stock pursuant to
the terms hereof, the restrictions of Section 8(c) hereof shall cease to apply
to such share. Reasonably promptly after a share of Restricted Stock vests
pursuant to the terms hereof, the Company shall cause to be issued and delivered
to the Participant to whom such share was granted, a certificate evidencing such
share, free of the legend set forth in Section 8(d)(i) hereof, together with any
other property of the Participant held by the custodian pursuant to Section
8(d)(ii) hereof.

         (f)      EFFECT OF TERMINATION OF EMPLOYMENT.

                  (i) In the event that the employment of a Participant with the
Company shall terminate for any reason other than Cause prior to the vesting of
shares of Restricted Stock granted to such Participant, shall be forfeited on
the date of such termination; provided, however, that the Committee may, in its
sole and absolute discretion, vest the Participant in all or any portion of
shares of Restricted Stock which would otherwise be forfeited pursuant to the
provisions of this Section.

                  (ii) In the event of the termination of a Participant's
employment for Cause, all shares of Restricted Stock granted to such Participant
which have not vested as of the date of such termination shall immediately be
forfeited.

9.       STOCK BONUSES.

         The Committee may grant Stock Bonuses in such amounts as it shall
determine from time to time. A Stock Bonus shall be paid at such time and
subject to such conditions as the Committee shall determine at the time of the
grant of such Stock Bonus. Certificates for shares of Company Stock granted as a
Stock Bonus shall be issued in the name of the Participant to whom such grant
was made and delivered to such Participant as soon as practicable after the date
on which such Stock Bonus is required to be paid.

10.      ADJUSTMENT UPON CHANGES IN COMPANY STOCK.

         (a)      SHARES AVAILABLE FOR GRANTS.

                  In the event of any change in the number of shares of Company
Stock outstanding by reason of any stock dividend or split, reverse stock split,
recapitalization, merger,

                                       12
<PAGE>

consolidation, combination or exchange of shares or similar corporate change,
the maximum number of shares of Company Stock with respect to which the
Committee may grant Options, SARs, shares of Restricted Stock, and Stock Bonuses
under Section 3 hereof shall be appropriately adjusted by the Committee. In the
event of any change in the number of shares of Company Stock outstanding by
reason of any other event or transaction, the Committee may, but need not, make
such adjustments in the number of shares of Company Stock with respect to which
Options, SARs, shares of Restricted Stock, and Stock Bonuses may be granted
under Section 3 hereof as the Committee may deem appropriate.

         (b)      OUTSTANDING RESTRICTED STOCK.

                  Unless the Committee in its absolute discretion otherwise
determines, any securities or other property (including dividends paid in cash)
received by a Participant with respect to a share of Restricted Stock, the Issue
Date with respect to which occurs prior to such event, but which has not vested
as of the date of such event, as a result of any dividend, stock split, reverse
stock split, recapitalization, merger, consolidation, combination, exchange of
shares or similar corporate exchange will not vest until such share of
Restricted Stock vests and shall be promptly deposited with the custodian
designated pursuant to Section 8(d)(ii) hereof.

                  The Committee may, in its absolute discretion, adjust any
grant of shares of Restricted Stock, the Issue Date with respect to which has
not occurred as of the date of the occurrence of any of the following events, to
reflect any dividend, stock split, reverse stock split, recapitalization,
merger, consolidation, combination, exchange of shares or similar corporate
change as the Committee may deem appropriate to prevent the enlargement or
dilution of rights of Participants under the grant.

         (c)      Outstanding Options and SARs - Increase
                  OR DECREASE IN ISSUED SHARES WITHOUT CONSIDERATION.

                  Subject to any required action by the shareholders of the
Company, in the event of any increase or decrease in the number of issued shares
of Company Stock resulting from a subdivision or consolidations of shares of
Company Stock or the payment of a stock dividend on the shares of Company Stock,
or any other increase or decrease in the number of such shares effected without
receipt of consideration by the Company, the Company shall proportionally adjust
the number of shares of Company Stock subject to each outstanding Option and
SAR, and the exercise price per share of Company Stock of each such Option and
SAR.

         (d)      OUTSTANDING OPTIONS AND SARS - CERTAIN MERGERS.

                  Subject to any required action by the shareholders of the
Company, in the event that the Company shall be the surviving corporation in any
merger or consolidation (except a merger or consolidation as a result of which
the holders of shares of Company Stock receive securities of another
corporation), each Option and SAR outstanding on the date of such merger or
consolidation shall pertain to and apply to the securities which a holder of the
number of

                                       13

<PAGE>

shares of Company Stock subject to such Option or SAR would have received in
such merger or consolidation.

         (e)      OUTSTANDING OPTIONS, SARS - CERTAIN OTHER TRANSACTIONS.

                  In the event of a dissolution or liquidation of the Company; a
sale of substantially all of the Company's assets; a merger or consolidation
involving the Company in which the Company is not the surviving corporation; or
a merger or consolidation involving the Company in which the Company is the
surviving corporation but the holders of shares of Company Stock receive
securities of another corporation and/or other property, including cash, the
Committee shall, in its absolute discretion, have the power to:

                  (i) cancel, effective immediately prior to the occurrence of
         such event, each Option and SAR outstanding immediately prior to such
         event (whether or not then exercisable), and, in full consideration of
         such cancellation, pay to the Participant to whom such Option or SAR
         was granted an amount in cash, for each share of Company Stock subject
         to such Option or SAR, respectively, equal to the excess of (A) the
         value, as determined by the Committee in its absolute discretion, of
         the property (including cash) received by the holder of a share of
         Company Stock as a result of such event over (B) the exercise price of
         such Option or SAR (subject to applicable withholding payment
         requirements); or

                  (ii) provide for the exchange of each Option and SAR
         outstanding immediately prior to such event (whether or not then
         exercisable) for an option on or stock appreciation right with respect
         to, as appropriate, some or all of the property for which such Option
         or SAR is exchanged and, incident thereto, make an equitable adjustment
         as determined by the Committee in its absolute discretion in the
         exercise price of the option or stock appreciation right, or, if
         appropriate, provide for a cash payment to the Participant to whom such
         Option or SAR was granted in partial consideration for the exchange of
         the Option or SAR.

         (f)      OUTSTANDING OPTIONS AND SARS - OTHER CHANGES.

                  In the event of any change in the capitalization of the
Company or a corporate change other than those specifically referred to in
Section 10(c),(d) or (e) hereof, the Committee may in its absolute discretion,
make such adjustments in the number of shares subject to Options or SARs
outstanding on the date on which such change occurs and in the per share
exercise price of each such Option and SAR as the Committee may consider
appropriate to prevent dilution or enlargement or rights.

         (g)      NO OTHER RIGHTS.

                  Except as expressly provided in the Plan, no Participant shall
have any rights by reason of any subdivision or consolidation of Company Stock,
the payment of any dividend, any increase or decrease in the number of shares of
Company Stock or any dissolution, liquidation,

                                       14

<PAGE>

merger or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan, no issuance by the Company of Company Stock, or
securities convertible into shares of Company Stock, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number of shares
of Company Stock subject to an Incentive Award or the exercise price of any
Option or SAR.

11.      RIGHTS AS A STOCKHOLDER.

         (a)      NO RIGHTS AS A STOCKHOLDER.

                  No Person shall have any rights as a stockholder with respect
to any shares of Company Stock covered by or relating to any Incentive Award
granted pursuant to the Plan until the date the Person becomes the owner of
record with respect to such shares. Except as otherwise expressly provided in
Section 10 hereof, no adjustment to any Incentive Award shall be made for
dividends or other rights for which the record date occurs prior to the date
such stock certificate is issued.

         (b)      ACCRUAL OF DIVIDENDS.

                  Whenever Restricted Shares are paid to a Participant or
beneficiary under the Plan, such Participant or beneficiary shall also be
entitled to receive, with respect to each Restricted Share paid, an amount equal
to any cash dividends, and number of shares of Company Stock equal to any stock
dividends, declared and paid with respect to a share of Company Stock between
the date the relevant Restricted Share award was granted and the date the
Restricted Shares are being distributed. At the discretion of the Committee,
interest may be paid on the amount of cash dividends withheld, including cash
dividends on stock dividends, at a rate and subject to such terms as determined
by the Committee.

12.      NO SPECIAL EMPLOYMENT RIGHTS; NO RIGHTS TO INCENTIVE AWARD.

         (a)      NO SPECIAL EMPLOYMENT RIGHTS.

                  Nothing contained in the Plan or any Incentive Award shall
confer upon any Participant any right with respect to the continuation of his or
her employment by or service with the Company or any subsidiary of the Company
or interfere in any way with the right of the Company, subject to the terms of
any separate employment or consulting agreement to the contrary, at any time to
terminate such employment or service or to increase or decrease the compensation
of the Participant from the rate in existence at the time of the grant of an
Incentive Award.

                                       15
<PAGE>

         (b)      NO RIGHTS TO INCENTIVE AWARDS.

                  No Person shall have any claim or right to receive an
Incentive Award hereunder. The Committee's granting of an Incentive Award to a
Participant at any time shall neither require the Committee to grant an
Incentive Award to such Participant or any other Participant or other Person at
any time nor preclude the Committee from making subsequent grants to such
Participant or any other Participant or other Person.

13.      SECURITIES MATTERS.

         (a) The Company shall be under no obligation to effect the registration
pursuant to the Securities Act of any interests in the Plan or any shares of
Company Stock to be issued hereunder or to effect similar compliance under any
state laws. Notwithstanding anything herein to the contrary, the Company shall
not be obligated to cause to be issued or delivered any certificates evidencing
shares of Company Stock pursuant to the Plan unless and until the Company is
advised by its counsel that the issuance and delivery of such certificates is in
compliance with all applicable laws, regulations of governmental authority, and
the requirements of NASDAQ and any other securities exchange on which shares of
Company Stock are traded. The Committee may require, as a condition of the
issuance and delivery of certificates evidencing shares of Company Stock
pursuant to the terms hereof, that the recipient of such shares make such
covenants, agreements and representations, and that such certificates bear such
legends, as the Committee, in its sole discretion, deems necessary or desirable.

         (b) The exercise of any Option granted hereunder shall be effective
only at such time as counsel to the Company shall have determined that the
issuance and delivery of shares of Company Stock pursuant to such exercise is in
compliance with all applicable laws, regulations of governmental authority, and
the requirements of NASDAQ and any other securities exchange on which shares of
Company Stock are traded. The Committee may, in its sole discretion, defer the
effectiveness of any exercise of an Option granted hereunder in order to allow
the issuance of shares of Company Stock pursuant thereto to be made pursuant to
registration or an exemption from registration or other methods for compliance
available under federal or state securities laws. The Committee shall inform the
Participant in writing of its decision to defer the effectiveness of the
exercise of an Option granted hereunder. During the period that the
effectiveness of the exercise of an Option has been deferred, the Participant
may, by written notice, withdraw such exercise and obtain a refund of any amount
paid with respect thereto.

         (c) All Company Stock issued pursuant to the terms of the Plan shall
constitute "restricted securities," as that term is defined in Rule 144
promulgated pursuant to the Securities Act, and may not be transferred except in
compliance with the registration requirements of the Securities Act or an
exemption therefrom.

         (d) Certificates for shares of Company Stock, when issued, may have
substantially the following legend, or statements of other applicable
restrictions, endorsed thereon, and may not be immediately transferable:

                                       16

<PAGE>

         THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
         SECURITIES LAWS. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED,
         TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES
         EVIDENCE SATISFACTORY TO THE ISSUER (WHICH, IN THE DISCRETION OF THE
         ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER)
         THAT SUCH OFFER SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT
         VIOLATE APPLICABLE FEDERAL OR STATE LAWS.

This legend shall not be required for shares of Company Stock issued pursuant to
an effective registration statement under the Securities Act and in accordance
with applicable state securities laws.

14.      WITHHOLDING TAXES.

         (a)      CASH REMITTANCE.

                  Whenever shares of Company Stock are to be issued upon the
exercise of an Option, the occurrence of the Issue Date or Vesting Date with
respect to a share of Restricted Stock or the payment of a Stock Bonus, the
Company shall have the right to require the Participant to remit to the Company
in cash an amount sufficient to satisfy federal, state, and local withholding
tax requirements, if any, attributable to such exercise, occurrence or payment
prior to the delivery of any certificate or certificates for such shares. In
addition, upon the exercise of an SAR, the Company shall have the right to
withhold from any cash payment required to be made pursuant thereto an amount
sufficient to satisfy the federal, state and local withholding tax requirements,
if any, attributable to such exercise or grant.

         (b)      STOCK REMITTANCE.

                  Subject to Section 14(c) hereof, at the election of the
Participant, subject to the approval of the Committee, when shares of Company
Stock are to be issued upon the exercise of an Option, the occurrence of the
Issue Date or the Vesting Date with respect to a share of Restricted Stock, or
the grant of a Stock Bonus, in lieu of the remittance required by Section 14(a)
hereof, the Participant may tender to the Company a number of shares of Company
Stock determined by such Participant, the Fair Market Value of which at the
tender date the Committee determines to be sufficient to satisfy the minimum
federal, state and local withholding tax requirements, if any, attributable to
such exercise, occurrence or grant and not greater than the Participant's
estimated total federal, state and local tax obligations associated with such
exercise, occurrence or grant.

         (c)      STOCK WITHHOLDING.

                                       17

<PAGE>

                  The Company shall have the right, when shares of Company Stock
are to be issued upon the exercise of an Option, the occurrence of the Issue
Date or the Vesting Date with respect to a share of Restricted Stock or the
grant of a Stock Bonus, in lieu of requiring the remittance required by Section
14(a) hereof, to withhold a number of such shares, the Fair Market Value of
which at the exercise date the Committee determines to be sufficient to satisfy
the federal, state and local withholding tax requirements, if any, attributable
to such exercise, occurrence or grant and is not greater than the Participant's
estimated total, federal, state and local tax obligations associated with such
exercise, occurrence or grant.

15.      AMENDMENT OR TERMINATION OF THE PLAN.

         The Board may at any time, or from time to time, suspend or terminate
the Plan in whole or in part, or amend it in such respects as the Board may deem
appropriate. No amendment, suspension or termination of the Plan shall, without
the Participant's consent, alter or impair any of the rights or obligations
under any Option theretofore granted to an Participant under the Plan. The Board
may amend the Plan, subject to the limitations cited above, in such manner as it
deems necessary to permit the granting of Incentive Awards meeting the
requirements of future amendments or issued regulations, if any, to the Code or
to the Exchange Act.

                                       18

<PAGE>

16.      NO OBLIGATION TO EXERCISE.

         The grant to a Participant of an Option or a SAR shall impose no
obligation upon such Participant to exercise such Option or SAR.

17.      TRANSFERS UPON DEATH.

         Upon the death of a Participant, outstanding Incentive Awards granted
to such Participant may be exercised only by the executors or administrators of
the Participant's estate or by any Person or Persons who shall have acquired
such right to exercise by will or by the laws of descent and distribution. No
transfer by will or the laws of descent and distribution of any Incentive Award,
or the right to exercise any Incentive Award, shall be effective to bind the
Company unless the Committee shall have been furnished with (a) written notice
thereof and with a copy of the will and/or such evidence as the Committee may
deem necessary to establish the validity of the transfer and (b) an agreement by
the transferee to comply with all the terms and conditions of the Incentive
Award that are or would have been applicable to the Participant and to be bound
by the acknowledgments made by the Participant in connection with the grant of
the Incentive Award. Except as provided in this Section 17, no Incentive Award
shall be transferable, and shall be exercisable only by a Participant during the
Participant's lifetime.

18.      EXPENSES AND RECEIPTS.

         The expenses of the Plan shall be paid by the Company. Any proceeds
received by the Company in connection with any Incentive Award will be used for
general purposes.

19.      FAILURE TO COMPLY.

         In addition to the remedies of the Company elsewhere provided for
herein, a failure by a Participant (or beneficiary) to comply with any of the
terms and conditions of the Plan or the agreement executed by such Participant
(or beneficiary) evidencing an Incentive Award, unless such failure is remedied
by such Participant (or beneficiary) within ten days after having been notified
of such failure by the Committee, shall be grounds for the cancellation and
forfeiture of such Incentive Award, in whole or in part, as the Committee, in
its absolute discretion may determine.

20.      ADOPTION AND  EFFECTIVE DATE OF PLAN.

         The Plan was adopted by unanimous written consent of the Board of
Directors of the Company, in lieu of a meeting of the Board, effective as of
March 28, 2000. If determined by the Board, the Plan may subsequently be
ratified and approved by the shareholders of the Company.

                                       19

<PAGE>

21.      TERM OF THE PLAN.

         The right to grant Incentive Awards under the Plan will terminate upon
the expiration of ten years from the date the Plan was initially adopted.

22.      APPLICABLE LAW.

         Except to the extent preempted by an applicable federal law, the Plan
will be construed and administered in accordance with the laws of the State of
New York, without reference to the principles of conflicts of law.

                                       20

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