Document:

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                                                                    Exhibit 10.2

                                STEELCLOUD, INC.
                             2002 STOCK OPTION PLAN

                             As adopted May 15, 2002

                                       1
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1.       PURPOSE OF PLAN; ADMINISTRATION

         1.1      Purpose.
                  -------

         The SteelCloud, Inc. 2002 Stock Option Plan (hereinafter, the "Plan")
is hereby established to grant to officers and other employees of SteelCloud,
Inc. (the "Company") or of its parents or subsidiaries (as defined in Sections
424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended
(the "Code")), if any (individually and collectively, the Company"), and to
non-employee directors, consultants and advisors and other persons who may
perform significant services for or on behalf of the Company, a favorable
opportunity to acquire common stock, $.001 par value ("Common Stock"), of the
Company and, thereby, to create an incentive for such persons to remain in the
employ of or provide services to the Company and to contribute to its success.

         The Company may grant under the Plan both incentive stock options
within the meaning of Section 422 of the Code ("Incentive Stock Options") and
stock options that do not qualify for treatment as Incentive Stock Options
("Nonstatutory Options"). Unless expressly provided to the contrary herein, all
references herein to "options," shall include both incentive Stock Options and
Nonstatutory Options.

         1.2      Administration.
                  --------------

         The Plan shall be administered by the Board of Directors of the Company
(the "Board"), if each member is a "Non-Employee Director" within the meaning of
Rule 16b-3 under the Securities Exchange Act of 1934, as amended ("Rule 16b-3"),
or a committee (the "Committee") of two or more directors, each of whom is a
Non-Employee Director. Appointment of Committee members shall be effective upon
acceptance of appointment. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee may be filled
by the Board. Until such time that the Committee is properly appointed, the
Board shall administer the Plan in accordance with the terms of this Section
1.2.

         A majority of the members of the Committee shall constitute a quorum
for the purposes of the Plan. Provided a quorum is present, the Committee may
take action by affirmative vote or consent of a majority of its members present
at a meeting. Meetings may be held telephonically as long as all members are
able to hear one another, and a member of the Committee shall be deemed to be
present for this purpose if he or she is in simultaneous communication by
telephone with the other members who are able to hear one another. In lieu of
action at a meeting, the Committee may act by written consent of a majority of
its members.

         Subject to the express provisions of the Plan, the Committee shall have
the authority to construe and interpret the Plan and all Stock Option Agreements
(as defined in Section 3.4) entered into pursuant hereto and to define the terms
used therein, to prescribe, adopt, amend and rescind rules and regulations
relating to the administration of the Plan and to make all other determinations
necessary or advisable for the administration of the Plan; provided, however,
that the Committee may delegate nondiscretionary administrative duties to such
employees of the Company as it deems proper; and, provided, further, in its
absolute discretion, the Board may at any time and from time to time exercise

                                       2
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any and all rights and duties of the Committee under the Plan. Subject to the
express limitations of the Plan, the Committee shall designate the individuals
from among the class of persons eligible to participate as provided in Section
1.3 who shall receive options, whether an optionee will receive Incentive Stock
Options or Nonstatutory Options, or both, and the amount, price, restrictions
and all other terms and provisions of such options (which need not be
identical).

         Members of the Committee shall receive such compensation for their
services as members as may be determined by the Board. All expenses and
liabilities which members of the Committee incur in connection with the
administration of this Plan shall be borne by the Company. The Committee may,
with the approval of the Board, employ attorneys, consultants, accountants,
appraisers, brokers or other persons. The Committee, the Company and the
Company's officers and directors shall be entitled to rely upon the advice,
opinions or valuations of any such persons. No members of the Committee or Board
shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, and all members of the Committee shall
be fully protected by the Company in respect of any such action, determination
or interpretation.

         1.3      Participation.
                  -------------

         Officers and other employees of the Company, non-employee directors,
consultants and advisors and other persons who may perform significant services
on behalf of the Company shall be eligible for selection to participate in the
Plan upon approval by the Committee; provided, however, that only "employees"
(within the meaning of Section 3401(c) of the Code) of the Company shall be
eligible for the grant of Incentive Stock Options. An individual who has been
granted an option may, if otherwise eligible, be granted additional options if
the Committee shall so determine. No person is eligible to participate in the
Plan by matter of right; only those eligible persons who are selected by the
Committee in its discretion shall participate in the Plan.

         1.4      Stock Subject to the Plan.

         Subject to adjustment as provided in Section 3.5, the stock to be
offered under the Plan shall be shares of authorized but unissued Common Stock,
including any shares repurchased under the terms of the Plan or any Stock Option
Agreement entered into pursuant hereto. The cumulative aggregate number of
shares of Common Stock to be issued under the Plan shall not exceed 500,000,
subject to adjustment as set forth in Section 3.5.

         If any option granted hereunder shall expire or terminate for any
reason without having been fully exercised, the unpurchased shares subject
thereto shall again be available for the purposes of the Plan. For purposes of
this Section 1.4, where the exercise price of options is paid by means of the
grantee's surrender of previously owned shares of Common Stock, only the net
number of additional shares issued and which remain outstanding in connection
with such exercise shall be deemed "issued" for purposes of the Plan.

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2.       STOCK OPTIONS

         2.1      Exercise Price; Payment.
                  -----------------------

         (a) The exercise price of each Incentive Stock Option granted under the
Plan shall be determined by the Committee, but shall not be less than 100% of
the "Fair Market Value" (as defined below) of Common Stock on the date of grant.
If an Incentive Stock Option is granted to an employee who at the time such
option is granted owns (within the meaning of section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of capital stock of
the Company, the option exercise price shall be at least 110% of the Fair Market
Value of Common Stock on the date of grant. The exercise price of each
Nonstatutory Option also shall be determined by the Committee, but shall not be
less than 85% of the Fair Market Value of Common Stock on the date of grant. The
status of each option granted under the Plan as either an Incentive Stock Option
or a Nonstatutory Option shall be determined by the Committee at the time the
Committee acts to grant the option, and shall be clearly identified as such in
the Stock Option Agreement relating thereto.

         "Fair Market Value" for purposes of the Plan shall mean: (i) the
closing price of a share of Common Stock on the principal exchange on which
shares of Common Stock are then trading, if any, on the day immediately
preceding the date of grant, or, if shares were not traded on the day preceding
such date of grant, then on the next preceding trading day during which a sale
occurred; or (ii) if Common Stock is not traded on an exchange but is quoted on
Nasdaq or a successor quotation system, (1) the last sales price (if Common
Stock is then listed on the Nasdaq Stock Market) or (2) the mean between the
closing representative bid and asked price (in all other cases) for Common Stock
on the day prior to the date of grant as reported by Nasdaq or such successor
quotation system; or (iii) if there is no listing or trading of Common Stock
either on a national exchange or over-the-counter, that price determined in good
faith by the Committee to be the fair value per share of Common Stock, based
upon such evidence as it deems necessary or advisable.

         (b) In the discretion of the Committee at the time the option is
exercised, the exercise price of any option granted under the Plan shall be paid
in full in cash, by check or by the optionee's interest-bearing promissory note
(subject to any limitations of applicable state corporations law) delivered at
the time of exercise; provided, however, that subject to the timing requirements
of Section 2.7, in the discretion of the Committee and upon receipt of all
regulatory approvals, the person exercising the option may deliver as payment in
whole or in part of such exercise price certificates for Common Stock of the
Company (duly endorsed or with duly executed stock powers attached), which shall
be valued at its Fair Market Value on the day of exercise of the option, or
other property deemed appropriate by the Committee; and, provided further, that,
subject to Section 422 of the Code, so-called cashless exercises as permitted
under applicable rules and regulations of the Securities and Exchange Commission
and the Federal Reserve Board shall be permitted in the discretion of the
Committee. Without limiting the Committee's discretion in this regard,
consecutive book entry stock-for-stock exercises of options (or "pyramiding")
also are permitted in the Committee's discretion.

         Irrespective of the form of payment, the delivery of shares issuable
upon the exercise of an option shall be conditioned upon payment by the optionee
to the Company of amounts sufficient to enable the Company to pay all federal,
state, and local withholding taxes resulting, in the Company's judgment, from
the exercise. In the discretion of the Committee, such payment to the Company
may be effected through (i) the Company's withholding from the number of shares
of Common Stock that would otherwise be delivered to the optionee by the Company

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on exercise of the option a number of shares of Common Stock equal in value (as
determined by the Fair Market Value of Common Stock on the date of exercise) to
the aggregate withholding taxes, (ii) payment by the optionee to the Company of
the aggregate withholding taxes in cash, (iii) withholding by the Company from
other amounts contemporaneously owed by the Company to the optionee, or (iv) any
combination of these three methods, as determined by the Committee in its
discretion.

         2.2      Option Period.
                  -------------

         (a) The Committee shall provide, in the terms of each Stock Option
Agreement, when the option subject to such agreement expires and becomes
unexercisable, but in no event will an Incentive Stock Option granted under the
Plan be exercisable after the expiration of ten years from the date it is
granted. Without limiting the generality of the foregoing, the Committee may
provide in the Stock Option Agreement that the option subject thereto expires 30
days following a Termination of Employment (as defined in Section 3.2 hereof)
for any reason other than death or disability, or six months following a
Termination of Employment for disability or following an optionee's death.

         (b) Outside Date for Exercise. Notwithstanding any provision of this
Section 2.2, in no event shall any option granted under the Plan be exercised
after the expiration date of such option set forth in the applicable Stock
Option Agreement.

         2.3      Exercise of Options.
                  -------------------

         Each option granted under the Plan shall become exercisable and the
total number of shares subject thereto shall be purchasable, in a lump sum or in
such installments, which need not be equal, as the Committee shall determine;
provided, however, that each option shall become exercisable in full no later
than ten years after such option is granted, and each option shall become
exercisable as to at least 10% of the shares of Common Stock covered thereby on
each anniversary of the date such option is granted; and provided, further, that
if the holder of an option shall not in any given installment period purchase
all of the shares which such holder is entitled to purchase in such installment
period, such holder's right to purchase any shares not purchased in such
installment period shall continue until the expiration or sooner termination of
such holder's option. The Committee may, at any time after grant of the option
and from time to time, increase the number of shares purchasable in any
installment, subject to the total number of shares subject to the option and the
limitations set forth in Section 2.5. At any time and from time to time prior to
the time when any exercisable option or exercisable portion thereof becomes
unexercisable under the Plan or the applicable Stock Option Agreement, such
option or portion thereof may be exercised in whole or in part; provided,
however, that the Committee may, by the terms of the option, require any partial
exercise to be with respect to a specified minimum number of shares. No option
or installment thereof shall be exercisable except with respect to whole shares.
Fractional share interests shall be disregarded, except that they may be
accumulated as provided above and except that if such a fractional share
interest constitutes the total shares of Common Stock remaining available for
purchase under an option at the time of exercise, the optionee shall be entitled
to receive on exercise a certified or bank cashier's check in an amount equal to
the Fair Market Value of such fractional share of stock.

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         2.4      Transferability of Options.
                  --------------------------

         Except as the Committee may determine as aforesaid, an option granted
under the Plan shall, by its terms, be nontransferable by the optionee other
than by will or the laws of descent and distribution, or pursuant to a qualified
domestic relations order (as defined by the Code), and shall be exercisable
during the optionee's lifetime only by the optionee or by his or her guardian or
legal representative. More particularly, but without limiting the generality of
the immediately preceding sentence, an option may not be assigned, transferred
(except as provided in the preceding sentence), pledged or hypothecated (whether
by operation of law or otherwise), and shall not be subject to execution,
attachment or similar process. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of any option contrary to the provisions of
the Plan and the applicable Stock Option Agreement, and any levy of any
attachment or similar process upon an option, shall be null and void, and
otherwise without effect, and the Committee may, in its sole discretion, upon
the happening of any such event, terminate such option forthwith.

         2.5      Limitation on Exercise of Incentive Stock Options.
                  -------------------------------------------------

         To the extent that the aggregate Fair Market Value (determined on the
date of grant as provided in Section 2.1 above) of the Common Stock with respect
to which Incentive Stock Options granted hereunder (together with all other
Incentive Stock Option plans of the Company) are exercisable for the first time
by an optionee in any calendar year under the Plan exceeds $100,000, such
options granted hereunder shall be treated as Nonstatutory Options to the extent
required by Section 422 of the Code. The rule set forth in the preceding
sentence shall be applied by taking options into account in the order in which
they were granted.

         2.6      Disqualifying Dispositions of Incentive Stock Options.
                  -----------------------------------------------------

         If Common Stock acquired upon exercise of any Incentive Stock Option is
disposed of in a disposition that, under Section 422 of the Code, disqualifies
the option holder from the application of Section 421(a) of the Code, the holder
of the Common Stock immediately before the disposition shall comply with any
requirements imposed by the Company in order to enable the Company to secure the
related income tax deduction to which it is entitled in such event.

         2.7      Certain Timing Requirements.
                  ---------------------------

         At the discretion of the Committee, shares of Common Stock issuable to
the optionee upon exercise of an option may be used to satisfy the option
exercise price or the tax withholding consequences of such exercise, in the case
of persons subject to Section 16 of the Securities Exchange Act of 1934, as
amended, only (i) during the period beginning on the third business day
following the date of release of the quarterly or annual summary statement of
sales and earnings of the Company and ending on the twelfth business day
following such date or (ii) pursuant to an irrevocable written election by the
optionee to use shares of Common Stock issuable to the optionee upon exercise of
the option to pay all or part of the option price or the withholding taxes made
at least six months prior to the payment of such option price or withholding
taxes.

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         2.8      No Effect on Employment.
                  -----------------------

         Nothing in the Plan or in any Stock Option Agreement hereunder shall
confer upon any optionee any right to continue in the employ of the Company, any
Parent Corporation or any Subsidiary or shall interfere with or restrict in any
way the rights of the Company, its Parent Corporation and its Subsidiaries,
which are hereby expressly reserved, to discharge any optionee at any time for
any reason whatsoever, with or without cause.

         For purposes of the Plan, "Parent Corporation" shall mean any
corporation in an unbroken chain of corporations ending with the Company if each
of the corporations other than the Company then owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. For purposes of the Plan, "Subsidiary" shall
mean any corporation in an unbroken chain of corporations beginning with the
Company if each of the corporations other than the last corporation in the
unbroken chain then owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in such
chain.

3.       OTHER PROVISIONS

         3.1      Sick Leave and Leaves of Absence.
                  --------------------------------

         Unless otherwise provided in the Stock Option Agreement, and to the
extent permitted by Section 422 of the Code, an optionee's employment shall not
be deemed to terminate by reason of sick leave, military leave or other leave of
absence approved by the Company if the period of any such leave does not exceed
a period approved by the Company, or, if longer, if the optionee's right to
reemployment by the Company is guaranteed either contractually or by statute. A
Stock Option Agreement may contain such additional or different provisions with
respect to leave of absence as the Committee may approve, either at the time of
grant of an option or at a later time.

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         3.2      Termination of Employment.
                  -------------------------

         For purposes of the Plan "Termination of Employment," shall mean the
time when the employee-employer relationship between the optionee and the
Company, any Subsidiary or any Parent Corporation is terminated for any reason,
including, but not by way of limitation, a termination by resignation,
discharge, death, disability or retirement; but excluding (i) terminations where
there is a simultaneous reemployment or continuing employment of an optionee by
the Company, any Subsidiary or any Parent Corporation, (ii) at the discretion of
the Committee, terminations which result in a temporary severance of the
employee-employer relationship, and (iii) at the discretion of the Committee,
terminations which are followed by the simultaneous establishment of a
consulting relationship by the Company, a Subsidiary or any Parent Corporation
with the former employee. Subject to Section 3.1, the Committee, in its absolute
discretion, shall determine the affect of all matters and questions relating to
Termination of Employment; provided, however, that, with respect to Incentive
Stock Options, a leave of absence or other change in the employee-employer
relationship shall constitute a Termination of Employment if, and to the extent
that such leave of absence or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then-applicable regulations
and revenue rulings under said Section.

         3.3      Issuance of Stock Certificates.
                  ------------------------------

         Upon exercise of an option, the Company shall deliver to the person
exercising such option a stock certificate evidencing the shares of Common Stock
acquired upon exercise. Notwithstanding the foregoing, the Committee in its
discretion may require the Company to retain possession of any certificate
evidencing stock acquired upon exercise of an option which remains subject to
repurchase under the provisions of the Stock Option Agreement or any other
agreement signed by the optionee in order to facilitate such repurchase
provisions.

         3.4      Terms and Conditions of Options.
                  -------------------------------

         Each option granted under the Plan shall be evidenced by a written
Stock Option Agreement ("Stock Option Agreement") between the option holder and
the Company providing that the option is subject to the terms and conditions of
the Plan and to such other terms and conditions not inconsistent therewith as
the Committee may deem appropriate in each case.

         3.5      Adjustments Upon Changes in Capitalization; Merger
                  and Consolidation.
                  ---------------------------------------------------

         If the outstanding shares of Common Stock are changed into, or
exchanged for cash or a different number or kind of shares or securities of the
Company or of another corporation through reorganization, merger,
recapitalization, reclassification, stock split-up, reverse stock split, stock
dividend, stock consolidation, stock combination, stock reclassification or
similar transaction, an appropriate adjustment shall be made by the Committee in
the number and kind of shares as to which options may be granted. In the event
of such a change or exchange, other than for shares or securities of another
corporation or by reason of reorganization, the Committee shall also make a
corresponding adjustment changing the number or kind of shares and the exercise

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price per share allocated to unexercised options or portions thereof, which
shall have been granted prior to any such change, shall likewise be made. Any
such adjustment, however, shall be made without change in the total price
applicable to the unexercised portion of the option (except for any change in
the aggregate price resulting from rounding-off of share quantities or prices).

         In the event of a "spin-off" or other substantial distribution of
assets of the Company which has a material diminutive effect upon the Fair
Market Value of the Common Stock, the Committee in its discretion shall make an
appropriate and equitable adjustment to the exercise prices of options then
outstanding under the Plan.

         Where an adjustment under this Section 3.5 of the type described above
is made to an Incentive Stock Option, the adjustment will be made in a manner
which will not be considered a "modification" under the provisions of subsection
424(b)(3) of the Code.

         In connection with the dissolution or liquidation of the Company or a
partial liquidation involving 50% or more of the assets of the Company, a
reorganization of the Company in which another entity is the survivor, a merger
or reorganization of the Company under which more than 50% of the Common Stock
outstanding prior to the merger or reorganization is converted into cash or into
a security of another entity, a sale of more than 50% of the Company's assets,
or a similar event that the Committee determines, in its discretion, would
materially alter the structure of the Company or its ownership, the Committee,
upon 30 days prior written notice to the option holders, may, in its discretion,
do one or more of the following: (i) shorten the period during which options are
exercisable (provided they remain exercisable for at least 30 days after the
date the notice is given); (ii) accelerate any vesting schedule to which an
option is subject; (iii) arrange to have the surviving or successor entity grant
replacement options with appropriate adjustments in the number and kind of
securities and option prices, or (iv) cancel options upon payment to the option
holders in cash, with respect to each option to the extent then exercisable
(including any options as to which the exercise has been accelerated as
contemplated in clause (ii) above), of any amount that is the equivalent of the
Fair Market Value of the Common Stock (at the effective time of the dissolution,
liquidation, merger, reorganization, sale or other event) or the fair market
value of the option. In the case of a change in corporate control, the Committee
may, in considering the advisability or the terms and conditions of any
acceleration of the exercisability of any option pursuant to this Section 3.5,
take into account the penalties that may result directly or indirectly from such
acceleration to either the Company or the option holder, or both, under Section
280G of the Code, and may decide to limit such acceleration to the extent
necessary to avoid or mitigate such penalties or their effects.

         No fractional share of Common Stock shall be issued under the Plan on
account of any adjustment under this Section 3.5.

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         3.6      Rights of Participants and Beneficiaries.
                  ----------------------------------------

         The Company shall pay all amounts payable hereunder only to the option
holder or beneficiaries entitled thereto pursuant to the Plan. The Company shall
not be liable for the debts, contracts or engagements of any optionee or his or
her beneficiaries, and rights to cash payments under the Plan may not be taken
in execution by attachment or garnishment, or by any other legal or equitable
proceeding while in the hands of the Company.

         3.7      Government Regulations.
                  ----------------------

         The Plan, and the grant and exercise of options and the issuance and
delivery of shares of Common Stock under options granted hereunder, shall be
subject to compliance with all applicable federal and state laws, rules and
regulations (including but not limited to state and federal securities law) and
federal margin requirements and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. Any securities delivered under
the Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and
representations to the Company as the Company may deem necessary or desirable to
assure compliance with all applicable legal requirements. To the extent
permitted by applicable law, the Plan and options granted hereunder shall be
deemed amended to the extent necessary to conform to such laws, rules and
regulations.

         3.8      Amendment and Termination.
                  -------------------------

         The Board or the Committee may at any time suspend, amend or terminate
the Plan and may, with the consent of the option holder, make such modifications
of the terms and conditions of such option holder's option as it shall deem
advisable, provided, however, that, without approval of the Company's
stockholders given within twelve months before or after the action by the Board
or the Committee, no action of the Board or the Committee may, (A) materially
increase the benefits accruing to participants under the Plan; (B) materially
increase the number of securities which may be issued under the Plan; or (C)
materially modify the requirements as to eligibility for participation in the
Plan. No option may be granted during any suspension of the Plan or after such
termination. The amendment, suspension or termination of the Plan shall not,
without the consent of the option holder affected thereby, alter or impair any
rights or obligations under any option theretofore granted under the Plan. No
option way be granted during any period of suspension nor after termination of
the Plan, and in no event may any option be granted under the Plan after the
expiration of ten years from the date the Plan is adopted by the Board.

         3.9      Time of Grant And Exercise of Option.
                  ------------------------------------

         An option shall be deemed to be exercised when the Secretary of the
Company receives written notice from an option holder of such exercise, payment
of the exercise price determined pursuant to Section 2.1 of the Plan and set
forth in the Stock Option Agreement, and all representations, indemnifications
and documents reasonably requested by the Committee.

                                       10
<PAGE>

         3.10     Privileges of Stock Ownership; Non-Distributive Intent;
                  Reports to Option Holders.
                  --------------------------------------------------------

         A participant in the Plan shall not be entitled to the privilege of
stock ownership as to any shares of Common Stock not actually issued to the
optionee. Upon exercise of an option at a time when there is not in effect under
the Securities Act of 1933, as amended, a Registration Statement relating to the
Common Stock issuable upon exercise or payment therefor and available for
delivery a Prospectus meeting the requirements of Section 10(a)(3) of said Act,
the optionee shall represent and warrant in writing to the Company that the
shares purchased are being acquired for investment and not with a view to the
distribution thereof.

         The Company shall furnish to each optionee under the Plan the Company's
annual report and such other periodic reports, if any, as are disseminated by
the Company in the ordinary course to its stockholders.

         3.11     Legending Share Certificates.
                  ----------------------------

         In order to enforce any restrictions imposed upon Common Stock issued
upon exercise of an option granted under the Plan or to which such Common Stock
may be subject, the Committee may cause a legend or legends to be placed on any
share certificates representing such Common Stock, which legend or legends shall
make appropriate reference to such restrictions, including, but not limited to,
a restriction against sale of such Common Stock for any period of time as may be
required by applicable laws or regulations. If any restriction with respect to
which a legend was placed on any certificate ceases to apply to Common Stock
represented by such certificate, the owner of the Common Stock represented by
such certificate may require the Company to cause the issuance of a new
certificate not bearing the legend.

         Additionally, and not by way of limitation, the Committee may impose
such restrictions on any Common Stock issued pursuant to the Plan as it may deem
advisable, including, without limitation, restrictions under the requirements of
any stock exchange upon which Common Stock is then traded.

         3.12     Use of Proceeds.
                  ---------------

         Proceeds realized pursuant to the exercise of options under the Plan
shall constitute general funds of the Company.

         3.13     Changes in Capital Structure; No Impediment to
                  Corporate Transactions.
                  -----------------------------------------------

         The existence of outstanding options under the Plan shall not affect
the Company's right to effect adjustments, recapitalizations, reorganizations or
other changes in its or any other corporation's capital structure or business,
any merger or consolidation, any issuance of bonds, debentures, preferred or
prior preference stock ahead of or affecting Common Stock, the dissolution or
liquidation of the Company's or any other corporation's assets or business, or
any other corporate act, whether similar to the events described above or
otherwise.

         3.14     Effective Date of the Plan.
                  --------------------------

         The Plan shall be effective as of the date of its approval by the
stockholders of the Company within twelve months after the date of the Board's
initial adoption of the Plan. Options may be granted but not exercised prior to
stockholder approval of the Plan. If any options are so granted and stockholder
approval shall not have been obtained within twelve months of the date of
adoption of this Plan by the Board of Directors, such options shall terminate
retroactively as of the date they were granted.

                                       11
<PAGE>

         3.15     Termination.
                  -----------

         The Plan shall terminate automatically as of the close of business on
the day preceding the tenth anniversary date of its adoption by the Board or
earlier as provided in Section 3.8. Unless otherwise provided herein, the
termination of the Plan shall not affect the validity of any option agreement
outstanding at the date of such termination.

         3.16     No Effect on Other Plans.
                  ------------------------

         The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company, any Subsidiary or any Parent
Corporation. Nothing in the Plan shall be construed to limit the right of the
Company (i) to establish any other forms of incentives or compensation for
employees of the Company, any Subsidiary or any Parent Corporation or (ii) to
grant or assume options or other rights otherwise than under the Plan in
connection with any proper corporate purpose including but not by way of
limitation, the grant or assumption of options in connection with the
acquisition by purchase, lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, partnership, firm or association.

                                        *

                                       12<PAGE>

Exhibit 10.8 Form of Convertible Note

         THIS NOTE AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT
         BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
         EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR
         AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH
         REGISTRATION IS NOT REQUIRED.

                             THE MACREPORT.NET, INC
                           CONVERTIBLE PROMISSORY NOTE

         Note No. 2002 - __                                        June __, 2002

         $__,000.00                                           New York, New York

         FOR VALUE RECEIVED, THE MACREPORT.NET, INC a Delaware corporation
("Company") promises to pay to _________________ ("Holder") or its registered
assigns, the principal sum of $__,000.00, or such lesser amount as shall then
equal the outstanding principal amount hereof, together with simple interest
from the date of this Note on the unpaid principal balance at a rate equal to
eight percent (8%) per annum, computed on the basis of the actual number of days
elapsed and a year of 365 days. All unpaid principal, together with any then
unpaid and accrued interest and other amounts payable hereunder, shall be due
and payable on the earlier of (i) June 1, 2003 (the "Maturity Date") or (ii)
when such amounts are made automatically due and payable upon or after the
occurrence of an Event of Default (as defined below).

         This Note is one of a series of Notes having serial numbers: "2002 -
01" et. seq. (the "Notes") issued in June 2002, not to exceed $___00,000 in
total principal amount. The Notes shall rank equally without preference or
priority of any kind over one another and all payments on account of principal
and interest with respect to any of the Notes shall be applied ratably and
proportionately on all outstanding Notes on the basis of the principal amount of
outstanding indebtedness represented thereby.

         The following is a statement of the rights of Holder and the conditions
to which this Note is subject, and to which the Holder hereof, by the acceptance
of this Note, agrees:

1.       Definitions. As used in this Note, the following capitalized terms have
the following meanings:

         (a) For purposes of the foregoing, the "Articles" shall mean the
Articles of Incorporation of Company.
<PAGE>

         (b) "Commission" shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act.

         (c) "Company" includes the corporation initially executing this Note
and any Person which shall succeed to or assume the obligations of Company under
this Note.

         (d) "Holder" shall mean the Person specified in the introductory
paragraph of this Note or any Person who shall at the time be the registered
holder of this Note.

         (e) "Indebtedness" of shall mean and include the aggregate amount of,
without duplication (i) all obligations for borrowed money, (ii) all obligations
evidenced by bonds, debentures, notes or other similar instruments, (iii) all
obligations to pay the deferred purchase price of property or services (other
than accounts payable incurred in the ordinary course of business determined in
accordance with generally accepted accounting principals), (iv) all obligations
with respect to capital leases, (v) all guaranty obligations, (vi) all
obligations created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person, and (vii)
all reimbursement and other payment obligations, contingent or otherwise, in
respect of letters of credit.

         (f) "Investment" of any Person shall mean any loan or advance of funds
by such Person to any other Person (other than advances to employees of such
Person for moving and travel expense, drawing accounts and similar expenditures
in the ordinary course of business), any purchase or other acquisition of any
equity securities or Indebtedness of any other Person, any capital contribution
by such Person to or any other investment by such Person in any other Person
(including, without limitation, any Indebtedness incurred by such Person of the
type described in clauses (i) and (ii) of the definition of "Indebtedness" on
behalf of any other Person); provided, however, that Investments shall not
include accounts receivable or other indebtedness owed by customers of such
Person which are current assets and arose from sales in the ordinary course of
such Person's business.

         (g) "Person" shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, a limited
liability company, an unincorporated association, a joint venture or other
entity or a governmental authority.

         (h) "Restricted Securities" shall mean the securities of the Company
required to bear the legend set forth in Section 9.(c) hereof.

2.       Interest. Accrued interest on this Note shall be payable at such time
as the outstanding principal amount hereof shall be paid in full.

3.       Events of Default. The occurrence of any of the following shall
constitute an "Event of Default" under this Note:

<PAGE>

         (a) Failure to Pay. If this Note has not been previously converted
pursuant to the terms hereunder, Company shall fail to pay any principal or
interest payment within seven (7) business days of the Maturity Date hereunder;
or

         (b) Voluntary Bankruptcy or Insolvency Proceedings. Company shall (i)
apply for or consent to the appointment of a receiver, trustee, liquidator or
custodian of itself or of all or a substantial part of its property, (ii) make a
general assignment for the benefit of its or any of its creditors, (iii) be
dissolved or liquidated in full or in part, or (iv) commence a voluntary case or
other proceeding seeking liquidation, reorganization or other relief with
respect to itself or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect or consent to any such relief or to the
appointment of or taking possession of its property by any official in an
involuntary case or other proceeding commenced against it; or

         (c) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for
the appointment of a receiver, trustee, liquidator or custodian of Company or of
all or a substantial part of the property thereof, or an involuntary case or
other proceedings seeking liquidation, reorganization or other relief with
respect to Company or the debts thereof under any bankruptcy, insolvency or
other similar law now or hereafter in effect shall be commenced and an order for
relief entered or such proceeding shall not be dismissed or discharged within
one hundred twenty (120) days of commencement.

4.       Rights of Holder upon Default. Upon the occurrence or existence of an
Event of Default referred to in Paragraph 3(a) and at any time thereafter during
the continuance of such Event of Default, Holder may, by written notice to
Company, declare all outstanding obligations payable by Company hereunder to be
immediately due and payable without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived, anything contained
herein to the contrary notwithstanding. Upon the occurrence or existence of any
Event of Default described in Paragraphs 3(b) and 3(c), immediately and without
notice, all outstanding obligations payable by Company hereunder shall
automatically become immediately due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived, anything contained herein to the contrary notwithstanding.

5.       Conversion.

         (a) Voluntary Conversion. If this Note has not been (i) converted
pursuant to Section 5(c) hereof; or (ii) prepaid pursuant to Section 14 hereof,
during the period, if any, beginning upon the closing of a merger or
consolidation of the Company in which the stockholders of the Company as of the
date hereof own, in the aggregate, less than 50% of the combined voting power of
the entity and ending on the Maturity Date, the Holders shall have the option,
in their sole discretion, to convert this Note into shares of common stock of
the Company ("Common Stock"). The Company shall give the Holders ten (10) days
prior written notice of such merger or consolidation of the Company. In the
event of the conversion of this Note into shares of Common Stock pursuant to
this Section 5(a), this Note shall convert into that number of fully paid and
nonassessable shares of Common Stock determined by dividing all of the unpaid
principal and interest due on this Note as of the date of conversion by the per
share purchase price of the Company's Common Stock that shall be equal to the
greater of: (i) two dollars ($2.00) per share of the Company's Common Stock; or
(ii) if the Common stock is listed on an exchange, the average of the closing
bid prices per share for the Common Stock, as reported on the over-the-counter
electronic bulletin board, or such other public market that the Company's Common
Stock is then traded, during the 30 trading days prior to date of the
conversion. The Conversion Price shall be subject to adjustment for stock
splits, stock dividends and the like. As a condition precedent to conversion of
this Note into shares of Common Stock, the Holders will be required to execute a
stock purchase agreement and other agreements customarily prepared in connection
with the conversion of a Note into shares of Common Stock.

<PAGE>

         (b) Conversion at Maturity Date. If this Note has not been (i)
converted pursuant to Section 5(a) or Section 5(c) hereof; or (ii) prepaid
pursuant to Section 14 hereof, on the Maturity Date, the Holder shall have the
option to choose to receive from the Company, in lieu of cash, that number of
fully paid and nonassessable shares of Common Stock determined by dividing all
of the unpaid principal and interest due on this Note as of the date of
conversion by the per share purchase price of the Company's Common Stock that
shall be equal to the greater of: (i) two dollars ($2.00) per share of the
Company's Common Stock; or (ii) if the Common stock is listed on an exchange,
the average of the closing bid prices per share for the Common Stock, as
reported on the over-the-counter electronic bulletin board, or such other public
market that the Company's Common Stock is then traded, during the 30 trading
days prior to date of the conversion. As a condition precedent to conversion of
this Note into shares of Common Stock, the Holders will be required to execute a
stock purchase agreement and other agreements customarily prepared in connection
with the conversion of a Note into shares of Common Stock.

         (c) Prepayment Conversion. Notwithstanding anything contained in this
Note to the contrary, the Company shall have the option at any time on or prior
to the Maturity Date to prepay this Note by issuing that number of fully paid
and nonassessable shares of Common Stock determined by dividing all of the
unpaid principal and interest due on this Note as of the date of conversion by
the per share purchase price of the Company's Common Stock that shall be equal
to the greater of: (i) two dollars ($2.00) per share of the Company's Common
Stock; or (ii) if the Common stock is listed on an exchange, the average of the
closing bid prices per share for the Common Stock, as reported on the
over-the-counter electronic bulletin board, or such other public market that the
Company's Common Stock is then traded, during the 30 trading days prior to date
of the conversion. As a condition precedent to conversion of this Note into
shares of Common Stock, the Holders will be required to execute a stock purchase
agreement and other agreements customarily prepared in connection with the
conversion of a Note into shares of Common Stock.

         (d) Issuance of Securities on Conversion. As soon as practicable after
conversion of this Note, the Company, at its expense, will cause to be issued in
the name of and delivered to the Holder of this Note, a certificate or
certificates representing the number of fully paid and nonassessable shares of
Common Stock to which Holder shall be entitled on such conversion. No fractional
shares will be issued on conversion of this Note. If Holder would otherwise be
entitled to a fractional share, Holder shall receive a cash payment equal to the
per share price of the Common Stock (subject to adjustment, as applicable)
multiplied by the fractional share the Holder would otherwise be entitled to
receive.

<PAGE>

         (e) Termination of Rights. All rights with respect to this Note shall
terminate upon (i) the issuance of shares of Common Stock (as applicable) upon
conversion of this Note pursuant to this Section 5; or (ii) upon prepayment
pursuant to Section 14 hereof, whether or not this Note has been surrendered.
Notwithstanding the foregoing, the Holder agrees to surrender this Note to the
Company for cancellation as soon as is practicable following conversion of this
Note.

6.       Representations of the Company. The Company represents and warrants to
the Holder as follows:

         (a) Organization and Standing. The Company is a corporation duly
organized and existing under, and by virtue of, the laws of the State of
Delaware and is in good standing under such laws. The Company has requisite
corporate power and authority to carry on its business as presently conducted.

         (b) Corporate Power. The Company has all requisite legal and corporate
power and authority to execute and deliver this Note and to carry out and
perform its obligations under the terms of this Note.

         (c) Authorization. All corporate action on the part of the Company and
its directors necessary for the authorization, sale, issuance and delivery of
this Note and the performance of all of the Company's obligations hereunder has
been taken.

         (d) Compliance With Other Instruments. The Company is not in violation
of any provisions of its Articles of Incorporation or Bylaws or in violation or
default of any provision of any instrument, judgment, order, writ, decree or
contract to which it is a party or by which it is bound or any provision of
federal or state statute, rule or regulation applicable to the Company, where
such violation or default would have a material adverse effect on the business
of the Company.

7.       Representations of the Holder. The Holder hereby represents and
warrants to the Company with respect to the purchase of this Note as follows:

         (a) Investment. Holder understands that the investment in this Note is
a speculative investment, and represents that it is aware of the business
affairs and financial condition of the Company, and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision to
acquire this Note, and that it is purchasing this Note for investment for its
own account only and not with a view to, or for resale in connection with, any
"distribution" within the meaning of the Securities Act of 1933, as amended (the
"Securities Act") or applicable state securities laws. The Holder further
represents that it understands that this Note and any shares of equity
securities of the Company issued upon conversion of this Note (the "Note
Shares") have not been registered under the Securities Act or applicable state
securities laws by reason of specific exemptions therefrom, which exemptions
depend upon, among other things, the bona fide nature of the Holder's investment
intent as expressed herein. The Holder acknowledges and understands that this
Note and the Note Shares must be held indefinitely unless subsequently
registered under the Securities Act and qualified under applicable state
securities laws or unless exemptions from such registration and qualification
requirements are available, and that the Company is under no obligation to
register or qualify this Note or the Note Shares.

<PAGE>

         (b) Access to Data. The Holder acknowledges that it has received and
reviewed this Note and all the information it considers necessary or appropriate
for deciding whether to purchase this Note. The Holder has had an opportunity to
discuss the Company's business, management, financial affairs, financial
condition, prospects, properties and assets with its officers and directors. The
Holder understands that such discussions as well as any written information
issued by the Company were intended to describe the aspects of the Company's
business and prospects which it believes to be material but were not necessarily
a thorough or exhaustive description.

         (c) Accredited Investor. The Holder is an "accredited investor" within
the meaning of Rule 501 of Regulation D under the Securities Act, as defined
herein.

8.       Registration. The Company shall treat the person or entity in whose
name this Note shall be registered as the absolute owner of this Note for the
purpose of receiving payment of principal and interest and for all other
purposes. This Note may be exchanged only upon the surrender thereof by the
registered holder at the office or agency of the Company, for a new Note of like
tenor and dated as of such exchange. The Company shall maintain at the
above-mentioned office or agency a registry showing the name and address of the
registered holder of this Note. This Note may be surrendered for exchange or
transfer at such office or agency. The Company shall be entitled to rely in all
respects upon such registry and shall not be obligated to honor any notice to
the contrary.

9.       Restrictions on Transferability of Securities; Compliance with
Securities Act.

         (a) Restrictions on Transferability. This Note and the Note Shares
shall not be sold, assigned, transferred or pledged except upon the conditions
specified in this Section 9, which conditions are intended to ensure compliance
with the provisions of the Securities Act. The Holder will cause any proposed
purchaser, assignee, transferee, or pledgee of this Note or the Note Shares held
by the Holder to agree to take and hold such securities subject to the
provisions and upon the conditions specified in this Section 9.

         (b) Restrictive Legends. Each certificate or note representing this
Note or the Note Shares and any other securities issued in respect of the Note
Shares upon any stock split, stock dividend, recapitalization, merger,
consolidation or similar event, shall (unless otherwise permitted by the
provisions of Section 9(c) below) be stamped or otherwise imprinted with legends
in substantially the following form (in addition to any legend required under
applicable state securities laws):

<PAGE>

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
         INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "ACT" OR "SECURITIES ACT"). SUCH SECURITIES MAY
         NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS
         THE TRANSFER IS IN ACCORDANCE WITH RULE 144 OR A SIMILAR RULE AS THEN
         IN EFFECT UNDER THE ACT OR UNLESS THE CORPORATION RECEIVES AN OPINION
         OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR
         TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
         REQUIREMENTS OF THE ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE
         OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT
         NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS
         CERTIFICATE TO THE SECRETARY OF THE CORPORATION AT THE PRINCIPAL
         EXECUTIVE OFFICES OF THE CORPORATION.

         The Holder consents to the Company making a notation on its records and
giving instructions to any transfer agent of this Note or the Note Shares in
order to implement the restrictions on transfer established in this Section 9.

         (c) Notice of Proposed Transfers. The Holder of each certificate
representing Restricted Securities by acceptance thereof agrees to comply in all
respects with the provisions of this Section 9(c). Prior to any proposed sale,
assignment, transfer or pledge of any Restricted Securities, unless there is in
effect a registration statement under the Securities Act covering the proposed
transfer, the Holder thereof shall give written notice to the Company of such
Holder's intention to effect such transfer, sale, assignment or pledge. Each
such notice shall describe the manner and circumstances of the proposed
transfer, sale, assignment or pledge in sufficient detail, and shall be
accomplished at such Holder's expense by an unqualified written opinion of legal
counsel who shall be, and whose legal opinion shall be, reasonably satisfactory
to the Company, addressed to the Company, to the effect that the proposed
transfer of the Restricted Securities may be effected without registration under
the Securities Act, whereupon the Holder of such Restricted Securities shall be
entitled to transfer such Restricted Securities in accordance with the terms of
the notice delivered by the holder to the Company. Each certificate evidencing
the Restricted Securities transferred as above provided shall bear, except if
such transfer is made pursuant to Rule 144, the appropriate restrictive legend
set forth in Section 9(b) above, except that such certificate shall not bear
such restrictive legend if in the opinion of counsel for such holder and the
Company such legend is not required in order to establish compliance with any
provisions of the Securities Act.

10.      Successors and Assigns. Subject to the restrictions on transfer
described in Sections 9 and 12, the rights and obligations of Company and Holder
hereunder shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the parties.

<PAGE>

11.      Waiver and Amendment. Any provision of this Note may be amended, waived
or modified upon the written consent of Company and Holder.

12.      Assignment by Company. Neither this Note nor any of the rights,
interests or obligations hereunder may be assigned, by operation of law or
otherwise, in whole or in part, by Company without the prior written consent of
Holder except in connection with an assignment in whole to a successor
corporation to Company, provided, that, such successor corporation acquires all
or substantially all of Company's property and assets.

13.      Notices. All notices and other communications required or permitted
hereunder shall be in writing, shall be effective when given, and shall in any
event be deemed to be given upon receipt or, if earlier, (a) five (5) days after
deposit with the U.S. Postal Service or other applicable postal service, if
delivered by first class mail, postage prepaid, (b) upon delivery, if delivered
by hand, (c) one business day after the business day of deposit with Federal
Express or similar overnight courier, freight prepaid or (d) one business day
after the business day of a facsimile transmission, if delivered by facsimile
transmission with copy by first class mail, postage prepaid, and shall be
addressed (i) if to the Holder, to ___________________________________________,
and (ii) if to the Company, at the address of its principal corporate offices
(Attn: V. William Lucchetti, Jr. President), or at such other address as a party
may designate by ten (10) days' advance written notice to the other party
pursuant to the provisions above.

14.      Payment; Prepayment.

         (a) Payment shall be made in lawful tender of the United States, if
this note is not otherwise converted pursuant to the terms hereunder.

         (b) The Company shall have the right to prepay at any time, without
penalty, in whole or in part, the unpaid principal and interest due on this
Note.

15.      Default Rate; Usury. In the event that any payment of principal or
interest provided for herein is not paid by Company when due (including the
entire unpaid balance of this Note in the event such amount is made immediately
due and payable pursuant to the terms hereof), then Company shall pay interest
on such amounts not paid when due at a rate per annum one percent (1%) higher
than the rate otherwise applicable hereunder. In the event any interest is paid
on this Note which is deemed to be in excess of the then legal maximum rate,
then that portion of the interest payment representing an amount in excess of
the then legal maximum rate shall be deemed a payment of principal and applied
against the principal of this Note.

16.      Governing Law. This Note and all actions arising out of or in
connection with this Note shall be governed by and construed in accordance with
the laws of the State of New York, without regard to the conflicts of law
provisions of the State of New York or of any other state.

         [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

<PAGE>

         IN WITNESS WHEREOF, Company has caused this Note to be issued as of the
date first written above.

                                           THE MACREPORT.NET, INC.

                                           By:
                                               -------------------------------
         ATTEST:                           V. William Lucchetti, Jr.
                                           Chairman, Chief Executive Officer and
                                           President
         --------------------------

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