| 1. | TERM.  This      Agreement shall be for an initial term of three years, beginning on August      1, 2010. The Agreement shall continue unless and until terminated by      either party upon thirty days’ written notice prior to the Agreement’s      anniversary/expiration date, or until terminated pursuant to Section 8 of      this Agreement. |
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| 2. | DUTIES OF      EMPLOYEE. |
|----|--------------------------|

|  | (a) | Duties.      Employee shall be employed as Executive Vice      President.  Employee’s duties shall be such executive,      managerial, administrative, and professional duties as are commensurate      with the position of Executive Vice President, and as shall be assigned by      the President and Chief Operating Officer or the Board of Directors of the      Company, or by their authorized designees. The Employee may delegate      duties to other employees of the Company as he reasonably determines is in      the best interest of the Company, consistent with the general authority      and power given to him hereunder.  The principal place of      employment of Employee shall be in the Leesburg, VA  area. |
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|  | (b) | Exclusive      Employment.      Employee shall devote the whole of his business time, attention and      abilities to carrying out his dutieshereunder. |
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|  | (c) | Loyal and      Conscientious Performance.      Employee agrees that to the best of his ability and experience, and in      compliance with all applicable laws and the Company’s policies,      Certificate of Incorporation and Bylaws, as they may be amended from time      to time, he will at all times loyally and conscientiously perform all the      duties and obligations required of him by the terms of this Agreement.      Employee further agrees he shall use his best efforts to promote the      interests and reputation of the Company and its affiliates and not do      anything which is to the detriment of the Company or its      affiliates. |
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| 3. | COMPENSATION AND      BENEFITS. |
|----|---------------------------------|

|  | (a) | Salary.      For all the services to be rendered by Employee in any capacity hereunder,      the Company shall pay Employee, in equal installments consistent with the      Company’s practices for its employees, salary and compensation as set      forth in Schedule 1      attached to this Agreement and incorporated herein. The Company shall have      the ability to withhold from the compensation otherwise due to Employee      under this Agreement any amounts required to be withheld from compensation      from time to time under applicablelaw. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | Severance      Benefits. |
|--------|-----|--------------------------|

|   | (i) | In      the event Employee’s employment with the Company is terminated by the      Company other than as a result of death, disability (as defined in Section      8(a)(ii)), retirement or for “cause” (as defined in Section 8(a)(iii)), or      if Employee’s employment with the Company is terminated by Employee for      the reason set forth in Section 8(d), and upon execution by Employee of a      separation agreement prepared by the Company, the Company will pay      Employee, at normal payroll intervals for twelve (12) months, a sum equal      to the Employee’s annual Base Salary in effect at the time of termination      hereunder, less applicable deductions and  withholdings. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | In      the event that Employee elects to terminate this Agreement for any reason      other than that set forth in Sections 3(b)(ii)(C) or  8(d), or      in the event that this Agreement is terminated due to Employee’s death or      disability, the Company shall not be obligated to pay to Employee any      severance payments whatsoever and Employee shall be entitled only to that      Base Salary and those benefits which he has earned through the date of      such termination. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Fringe      Benefits.      So long as Employee remains in the employ of the Company, Employee shall      be provided those benefits set forth in Schedule 1 to      this Agreement. Employee shall also receive such additional benefits as      may be authorized from time to time by the Company’s Board of      Directors. |
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| 4. | NONCOMPETITION BY      EMPLOYEE. |
|----|----------------------------------|

|   | (a) | During      the term of this Agreement and for a period of two (2) years after      Employee has ceased to be employed by Company for any reason, Employee      shall not, without the prior written consent of a duly authorized officer      of Company, directly or indirectly (i) engage in the business of, or (ii)      assist or have an interest in (whether as proprietor, partner, investor,      stockholders, officer, director or any type of principal whatsoever), or      (iii) enter the employment of or act as an agent, advisor, or consultant      to any person, firm, partnership, association, corporation, business      organization, entity or enterprise that is, or is to become, directly or      indirectly, engaged in any business actually or potentially competitive      with that of Company in any area or territory in which Company offers its      services or products. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | During      the term of this Agreement, and for a period of two (2) years after      Employee has ceased to be employed by Company for any reason, Employee      shall not, without the prior written consent of a duly authorized officer      of Company, solicit from any person, company, firm or organization, or any      affiliate of the foregoing, which was or is a client or associated firm of      Company or which Company was soliciting as a client or associated firm of      Company during any of the twelve (12) months immediately preceding the      termination or expiration of the Agreement, any business substantially      similar to that done by Company, including but not limited to any business      Employee was soliciting or on which he worked while employed by      Company. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5. | CONFIDENTIALITY.      Employee acknowledges, understands and agrees that all trade secrets and      information relating to the business of the Company and/or its affiliates,      including without limitation, procedures, product information,      manufacturing techniques or processes, expertise, records, customer or      prospect lists and information, vendor lists and information, supplier      lists and information, internal operating forms, financial information or      accounting methods, systems, books, manuals, employee information, any      confidential information concerning the business, the Company, its      affiliates, or the business, policies or operations of the business, the      Company or its affiliates which Employee may have learned, possessed or      controlled on or prior to the date hereof or which Employee may learn,      possess or control during the term of Employee’s continued employment by      the Company or any of its affiliates (as an employee, consultant, agent or      otherwise) (collectively, “Trade Secrets”) are confidential and shall      remain the sole and exclusive property of the Company and its affiliates.      Trade Secrets include both written information and information not reduced      to writing. Except as may be required pursuant to any law or the order of      a court, or except as may be public knowledge (which shall not have become      public knowledge as a result of any action of Employee), Employee shall      not, at any time, retain, duplicate, remove from the business premises of      Company or any of its affiliates, make use of, other than in the ordinary      course of fulfilling his duties as an employee of the Company, divulge or      otherwise disclose, directly or indirectly, any Trade Secrets. Employee      shall not publish or disclose, and shall exercise his best efforts to      prevent others from publishing or disclosing, any Trade Secrets and he      shall not use or attempt to use any such knowledge or information which he      may have or acquire in any manner which may injure or cause loss, whether      directly or indirectly, to the Company or its affiliates or use his      personal knowledge or influence over any customers, clients, suppliers or      contractors of the Company or its affiliates so as to take advantage of      the Company’s or its affiliate’s trade or business connections or utilize      information confidentially obtained byhim. |
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| 6. | NON-SOLICITATION.      Employee hereby covenants and agrees that, at all times during his      employment with the Company and for a period of two (2) years immediately      following his termination for any reason, Employee shall not employ or      seek to employ any person employed at the time by the Company or any of      its affiliates, or otherwise engage or entice, either directly or      indirectly, such person to leave such  employment. |
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| 7. | VIOLATION OF      AGREEMENT. |
|----|------------------------------|

|   | (a) | The      restrictions set forth in Sections 4, 5 and 6 shall extend to any and all      activities of the Employee, whether alone or together with or on behalf of      or through any other person orentity. |
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|   | (b) | Employee’s      obligations under Sections 4, 5 and 6 shall survive termination of this      Agreement and of Employee’s employment with the  Company. |
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|   | (c) | Employee      acknowledges that the restrictions contained in Sections 4, 5 and 6, in      view of the nature of the business in which Company is engaged, are      reasonable and necessary to protect the legitimate interests of      Company.  Employee understands that the remedies at law for his      violation of any of the covenants or provisions of Sections 4, 5 and 6      will be inadequate, that such violations will cause irreparable injury      within a short period of time, and that Company shall be entitled to      preliminary injunctive relief and other injunctive relief against such      violation.  Such injunctive relief shall be in addition to, and      in no way in limitation of, any and all other remedies that Company shall      have in law and equity for the enforcement of those covenants and      provisions.  Employee further acknowledges that should he      violate any of the covenants or provisions of Sections 4, 5 and 6, he will      reimburse Company for its reasonable costs and attorneys’ fees incurred to      enforce the terms of thisAgreement. |
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| 8. | TERMINATION. |
|----|--------------|

|   | (a) | The      Employee’s employment hereunder may be terminated by the Company      immediately upon the occurrence of any of the following events, and the      Company shall have no obligations to the Employee for any period after the      effective date of such termination, except vested benefits or as otherwise      provided in Section 3 herein: |
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|   | (i) | The      death of Employee. |
|--------|-----|-----------------------------|

|   | (ii) | A      mental or physical illness or injury that prevents Employee from      performing his duties hereunder for a period of 90 consecutive days or for      120 days in any 360 day period, or the Employee has been declared by a      court of competent jurisdiction to be mentally incompetent or incapable of      managing his affairs. |
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|   | (iii) | For      “cause” which, for the purposes of this Section, shall    mean: |
|--------|-------|--------------------------------------------------------------------------------------|

|   | (A) | Continued      neglect or failure to perform his duties and responsibilities;      or |
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|   | (B) | Formally      being charged, either criminally or civilly, with committing fraud,      misappropriation or embezzlement, whether or not in the performance of      Employee’s duties as an employee of the Company;  or |
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|   | (C) | Violations      of any law which violation materially affects the Employee’s performance      of his duties to the Company; or |
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|   | (D) | The      conviction of, or plea of guilty or nolo contendere to, a felony or crime      involving moral turpitude; or |
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|   | (E) | Willfully      engaging in conduct materially injurious to the Company or its affiliates;      or |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (F) | Diverting      any business opportunity of the Company or its affiliates for Employee’s      direct or indirect personal gain;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (G) | Failure      to observe or perform the covenants and agreements contained in this      Agreement, including but not limited to those contained in Sections 4, 5      and 6 of this Agreement. |
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|   | (b) | The      Employee’s employment hereunder may be terminated at any time after August      1, 2012 by either party. |
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|   | (c) | The      Employee’s employment hereunder may be terminated by either party with      thirty (30) days of written notice thereof.  Notwithstanding the      foregoing, if Employee’s employment hereunder is terminated without      “cause” during the initial term of this Agreement, Employee shall be paid      any applicable severance benefits as set forth in Section 3(b) less      applicable deductions andwithholdings. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The      Employee may terminate his employment hereunder for Good Reason as defined      in Section 3(b)(ii)(c) or upon any breach by      the Company of any material provision of this Agreement not cured within      sixty (60) days of written noticethereof. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Except      as may otherwise be set forth herein, in the event of termination of the      Employee’s employment by the Company as permitted under clause (a) of this      Section, Employee shall be entitled only to his Base Salary and other      compensation and benefits earned through the date of      termination. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Upon      the termination of his employment hereunder for any reason whatsoever,      Employee shall immediately deliver to the Company all documents,      statistics, accounts, records, programs and other items of whatever nature      or description (the “Documents”) which may be in his possession or under      his control which relate in any way to the Trade Secrets or the business      or affairs of the Company or of any of its affiliates, and no copies of      any such Documents or any part thereof shall be retained by      him. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | In      the event of the termination of Employee’s employment under this      Agreement, Employee shall be deemed to have resigned from all positions      held in the Company. Upon request of the Company, Employee shall promptly      sign any and all documents reflecting such resignations as of the date of      termination of his employment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | REPRESENTATIONS.      Employee hereby represents and warrants that this Agreement constitutes      his valid and binding obligation enforceable in accordance with its terms      and the execution, delivery and performance of this Agreement does not      violate any agreement, arrangement or restriction of any kind to which      Employee is a party or by which he isbound. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | MISREPRESENTATION.      Neither party hereto shall knowingly at any time make any untrue statement      in relation to the other or any of their affiliates and in particular      Employee shall not after the termination of his employment hereunder      wrongfully represent himself as being employed by or connected with the      Company or any affiliate of theCompany. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | REIMBURSEMENT OF      EXPENSES.      The Company shall reimburse Employee for all ordinary and necessary      out-of-pocket expenses reasonably incurred by Employee on behalf of the      business of the Company. Employee agrees that expense reports must be      submitted to obtain reimbursement of expenses as well as presentation of      such supporting documentation as the Company may reasonably require.      Employee further agrees to submit with expense reports such records and      logs as may be required by the relevant taxing authorities for the      substantiation of each such business expense as a deduction on the      Company’s income tax returns. |
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| 12. | INVENTIONS,      ETC. |
|-----|-----------------------|

|   | (a) | It      shall be part of the normal duties of Employee at all times to consider in      what manner and by what new methods or devices the products, services,      processes, equipment or systems of the Company or any of its affiliates      with which he is concerned or for which he is responsible might be      improved, and promptly to give to the President of the Company or Board of      Directors full details of any invention or improvement which he may from      time to time make or discover in the course of his duties, and to further      the interests of the Company with regard thereto. Subject only to any      contrary provisions of the laws of the United States or the Commonwealth      of Massachusetts, all such materials, inventions, improvements, methods,      products, services, equipment or systems shall be deemed to be “works made      for hire”, and to the extent such items are not works made for hire, the      Employee hereby irrevocably grants and assigns such materials, inventions,      improvements, methods, products, services, equipment or systems to the      Company which shall be entitled, free of charge, to the sole ownership of      any such invention or improvement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Employee      shall, if and when required so to do by the Company, at the expense of the      Company, apply or join with the Company in applying for patents or other      protection in any part of the world for any such discovery, invention or      process as aforesaid and shall at the expense of the Company, execute and      do or cause to be done all instruments and things reasonably necessary for      vesting the said patent or other protection when obtained and all right,      title and interest to and in the same in the Company or in such other      person as the Company maydesignate. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | For      the purpose of this clause Employee hereby irrevocably authorizes the      company as his attorney in his name to execute any documents or take any      actions which are required in, order to give effect to the provisions of      this Section and the Company is hereby empowered to appoint and remove at      its pleasure any person as agent and substitute for and on behalf of the      Company in respect of all or any of the matters  aforesaid. |
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| 13. | NOTICES.      Any notices to be given hereunder by either party to the other may be      effectuated either by personal delivery in writing, by electronic      facsimile transmission, by commercial overnight courier or by mail,      postage prepaid, with return receipt requested. Notices shall be addressed      to the parties as follows: |
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| 14. | ATTORNEYS’      FEES.      If any party shall bring an action to enforce this Agreement, each party      will bear her/his/its own attorneys’ fees and  costs. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | WAIVER OF      BREACH.      The waiver by any party to a breach of any provision in this Agreement      cannot operate or be construed as a waiver of any subsequent breach by a      party. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | SEVERABILITY.      The invalidity or unenforceability of any particular provision in this      Agreement shall not affect the other provisions hereof, and this Agreement      shall be construed in all respects as if the invalid or unenforceable      provision were omitted. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17. | ENTIRE      AGREEMENT.      Except as otherwise provided herein, this Agreement covers the entire      understanding of the parties as to the employment of Employee, superseding      all prior understandings and agreements, and no modification or amendment      of its terms and conditions shall be effective unless in writing and      signed by the parties or their respective duly authorized      agents. |
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| 18. | GOVERNING      LAW.      This Agreement shall be interpreted, construed and governed according to      the laws of Delaware, without giving effect to principles of conflicts or      choice of laws of Delaware or of any other  jurisdiction. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | CONSENT TO      JURISDICTION.      Employee hereby irrevocably submits to the jurisdiction of any court of      Delaware or any federal court sitting in the State of Delaware over any      suit, action or proceeding arising out of or relating to this Agreement.      Employee hereby agrees that a final judgment in any such suit, action or      proceeding brought in any such court, after all appropriate appeals, shall      be conclusive and binding uponhim. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20. | SUCCESSORS AND      ASSIGNS.      This Agreement shall be binding upon and inure to the benefit of the      parties hereto and their successors, permitted assigns, legal      representatives and heirs, but neither this Agreement nor any rights      hereunder shall be assignable by any of its parties except as permitted by      this Section. Employee agrees that this Agreement may be assigned or      transferred by operation of law by the Company upon a sale, merger,      reorganization or other business combination of or involving the Company;      provided, however, that (i) such assignee or other successor to the      Company shall assume all obligations of the Company hereunder and (ii)      that Employee shall perform all services required pursuant to this      Agreement for any such assignee orsuccessor. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 21. | MISCELLANEOUS.      The Section headings of this Agreement are for convenience of reference      only and do not form a part hereof and do not in any way modify,      interpret, or construe the intentions of the parties. This Agreement may      be executed in one or more counterparts and all such counterparts shall      constitute one and the sameinstrument. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22. | RIGHT OF      SET-OFF.      The Company may at any time offset against any compensation or other      remuneration due or to become due to the Employee, or anyone claiming      through or under the Employee, any debt or debts due or to become due from      the Employee to the Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |        | [COMPANY]                    |
|--------|-------------|------------------------------|
|   | By:         | /s/      Derek Dunaway       |
|   | Name:  | Derek      Dunaway           |
|   | Title:      | Chief      Executive Officer |
|   |        |                         |
|   |        | /s/      MontePickens        |

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| 1. | Salary       .      The Company shall pay Employee an annual base salary (“Base Salary”) of      Two-hundred fifty thousand ($250,000.00), at normal payroll intervals and      less applicable deductions and withholdings, which shall be subject to      annual adjustments at the sole discretion of the Board of Directors of the      Company. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Signing      Bonus.  Upon signing Employment Agreement, Employee will      be given 15,000 options.  Such options will be vested over a      period of 3 years. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Cash Bonus and Equity      Bonus Awards |
|----|-----------------------------------------|

| Cash      Bonus (Up to 35% of Base Pay) |
|-----------------------------------------|
| Criteria                                |   | Maximum % ofTotal Award |   | Award |
| Revenue      goals                      |   | 25 |   | 100%      if the Company achieves 100% of Revenue goal; 80% if the Company achieves      80% of Revenue goal.  If the Company achieves percentages of its      budgeted Revenue between the limits above, the bonus will be awarded pro      rata. |
|                                    |   |   |   |   |
| EBITDA      goals                       |   | 25 |   | 100%      if the Company achieves 100% of EBITDA goal; 80% if the Company achieves      80% of EBITDA goal.  If the Company achieves percentages of its      budgeted EBITDA between the limits above, the bonus will be awarded pro      rata. |
|                                    |   |   |   |   |
| Specific      objectives                |    | 50 |    | Percentage      determined by CEO based on specific objective    accomplishments |

|   | 25%      of the bonus will be based on the Company achieving overall Revenue      targets |
|--------|-------------------------------------------------------------------------------------------|

|   | 25%      of the bonus will be based on the Company achieving overall EBITDA      targets |
|--------|------------------------------------------------------------------------------------------|

|   | § | Development      and execution of international military sales  strategy |
|--------|--------|--------------------------------------------------------------------------|

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|   | § | Development      and execution of business plan forammunition |
|--------|--------|---------------------------------------------------------------|

|   | § | Development      and execution of the European military business  plan |
|--------|--------|------------------------------------------------------------------------|

|   | Employee      shall be entitled to receive equity compensation of up to 40% of base      salary in the form of restricted stock.  Such restricted stock      shall be vested over a period of threeyears. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Equity Bonus (Up to 40% of Base Pay) |
|-------------------------------------------------------------------------|
| Criteria                                                                |   | Maximum % ofTotal Award |   | Award |
| Revenue      goals                                                      |   | 25 |   | 100%      if the Company achieves 100% of Revenue goal; 80% if the Company achieves      80% of Revenue goal.  If the Company achieves percentages of its      budgeted Revenue between the limits above, the bonus will be awarded pro      rata. |
|                                                                    |   |   |   |   |
| EBITDA      goals                                                       |   | 25 |   | 100%      if the Company achieves 100% of EBITDA goal; 80% if the Company achieves      80% of EBITDA goal.  If the Company achieves percentages of its      budgeted EBITDA between the limits above, the bonus will be awarded pro      rata. |
|                                                                    |   |   |   |   |
| Specific      objectives                                                |    | 50 |    | Percentage      determined by CEO based on specific objective    accomplishments |

|   | § | Development      and execution of international military sales  strategy |
|--------|--------|--------------------------------------------------------------------------|

|   | § | Development      and execution of business plan forammunition |
|--------|--------|---------------------------------------------------------------|

|   | § | Development      and execution of the European military business  plan |
|--------|--------|------------------------------------------------------------------------|

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| 4. | Benefits. Employee      shall be provided with health, life, and disability insurance coverages      and other similar benefits substantially equivalent to those provided to      employees of the Company from time to time, all in accordance with the      standard policies of the Company.  Employee shall be permitted      to participate in the Company’s 401(k) Retirement  Plan. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Paid Time Off/Sick      Days. Employee      shall be provided with three (3) weeks of PTO, accrued on a monthly basis,      and with sick days in accordance with the standard policies of the      Company. Employee shall be permitted to carry over any unused PTO into any      subsequent period. Upon termination of employment, Employee shall not be      paid for unused sick days, but will be paid for accrued, unused      PTO. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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