Document:

United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 4.8

NEITHER THIS SECURITY NOR THE SECURITY INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

		
	#W-2006-000X

	                     Warrants

Void after 5:00 p.m., Eastern Standard Time on December 17, 2011

COMMON STOCK PURCHASE 

WARRANT

OF

TACTICAL SOLUTION PARTNERS, INC.

TACTICAL SOLUTION PARTNERS, INC., a Delaware corporation (the “Company”), hereby certifies that, for value received, Sierra Equity Group, Ltd. Inc., an Illinois corporation (“Sierra” or “Warrant Holder” and together with other holders hereunder as a result of permitted transfers hereof, collectively, “Holders”) is the owner of the number of common stock purchase warrants (“Warrants”) specified above, each of which entitles the Holder to purchase, at any time during the period commencing on the Commencement Date (as defined herein) and ending on the Expiration Date (as defined herein), one fully paid and non-assessable share of common stock, par value $.0001 per share (“Common Stock”), of the Company at a purchase price equal to the Exercise Price of $0.25 per share in lawful money of the United States of America in cash, subject to adjustment as hereinafter provided.  

1.

WARRANT; EXERCISE PRICE.

1.1

Each Warrant shall entitle the Warrant Holder the right to purchase one share of Common Stock of the Company (individually, a “Warrant Share” severally, the “Warrant Shares”). 

1.2

The purchase price payable upon exercise of each Warrant (“Exercise Price”) shall be $0.25 per Warrant Share. The Exercise Price and number of Warrant Shares purchasable pursuant to each Warrant are subject to adjustment as provided in Section 8. 

2.

EXERCISE OF  WARRANT; EXPIRATION DATE. 

2.1

(a)

This Warrant is exercisable at any time and from time to time commencing the date hereof (“Commencement Date”) and ending at 5:00 p.m., Eastern Standard Time on December 17, 2011, or if such date shall in the State of Delaware be a holiday or a day on which banks are authorized to close, then 5:00 p.m., Eastern Standard Time the next following day which in the State of Delaware is not a holiday or a day on which banks are authorized to close (the “Expiration Date”), in whole or from time to time in part, at the option of the Warrant Holder, upon surrender of this Warrant to the Company together with a duly completed Notice of Exercise in the form attached hereto and payment of an amount equal to the then applicable Exercise Price multiplied by the number of Warrant Shares then being purchased upon such exercise, except as provided in Section 2.1(b) hereunder.  

(b)

If the Common Stock is registered under Section 12 of the Securities Exchange Act of 1934, as amended, the Warrant Holder may elect to pay all or part of the Exercise Price by surrendering shares of Common Stock to the Company, including by allowing the Company to deduct from the number of Warrant Shares deliverable upon exercise of this Warrant, a number of such shares which has an aggregate Fair Market Value, determined as of the average of the last sale price (defined hereunder) of the Common Stock for the 20 consecutive trading days immediately preceding the date of exercise of this Warrant, equal to the aggregate Exercise Price. In the event that the Warrant Holder elects to utilize the “cashless exercise” procedure contained in Section 2.1(b), this Warrant is exercisable upon surrender of this Warrant to the Company together with a duly completed Notice of Exercise in the form attached hereto and surrender of that number of shares of Common Stock equal to the aggregate Exercise Price determined in accordance with this Section 2.1(b)(i) or (ii). “Fair Market Value” per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

(i)

If the Common Stock is at the time traded on the NASD OTC Bulletin Board or other electronic quotation service, then the Fair Market Value shall be the average of the last sale price per share of the Common Stock for the 20 consecutive trading days preceding the date of exercise of this Warrant; or

(ii)

If the Common Stock is at the time listed on any Exchange, then the Fair Market Value shall be the average of the last sale price per share of the Common Stock for the 20 consecutive trading days preceding the date of exercise of this Warrant, on the Exchange determined to be the primary market for the Common Stock. "Exchange" shall mean any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions 

commonly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange.

2.2

Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 2.1.  At such time, the person or persons in whose name or names any certificates for Warrant Shares shall be issuable upon such exercise as provided in subsection 2.3 below shall be deemed to have become the holder or holders of record of the Warrant Shares represented by such certificates.

2.3

Within three business days after the exercise of the purchase right represented by this Warrant, the Company at its expense will use its best efforts to cause to be issued in the name of, and delivered to, the Warrant Holder, or, subject to the terms and conditions hereof, to such other individual or entity as such Warrant Holder (upon payment by such Warrant Holder of any applicable transfer taxes) may direct: 

(a)

a certificate or certificates for the number of full Warrant Shares to which such Warrant Holder shall be entitled upon such exercise plus, in lieu of any fractional share to which such Warrant Holder would otherwise be entitled, cash in an amount determined pursuant to Section 2.4 hereof, and 

(b)

in case such exercise is in part only, a new Warrant or Warrants (dated the date hereof) of like tenor, stating on the face or faces thereof the number of shares currently stated on the face of this Warrant minus the number of such shares purchased by the Warrant Holder upon such exercise as provided in subsection 2.1 ( in each case prior to any adjustments made thereto pursuant to the provisions of this Warrant).

2.4

The Company shall not be required upon the exercise of this Warrant to issue any fractional shares, but shall make an adjustment thereof in cash on the basis of the “last sale price” (as defined below) of the Company's Common Stock on the trading day immediately prior to the date of exercise.  For purposes of Sections 2.1 and 2.4, “last sale price” shall mean (i) if the Common Stock is listed on an Exchange or quoted on the Nasdaq markets or NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the last sale price of the Common Stock in the principal trading market for the Common Stock as reported by the Exchange, Nasdaq or the NASD, as the case may be; (ii) if the Common Stock is not listed on an Exchange or quoted on the Nasdaq markets, or the NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), but is traded in the over-the-counter market, the closing bid price for the Common Stock on the last trading day preceding the date in question for which such quotations are reported by the Pink Sheets, LLC or similar publisher of such quotations; and (iii) if the fair market value of the Common Stock cannot be determined pursuant to clause (i) or (ii) above, such price as the Board of Directors of the Company shall determine, in good faith, in the Board’s sole discretion.  

3.

REGISTRATION AND TRANSFER ON COMPANY BOOKS. 

3.1

The Company (or an agent of the Company) will maintain a register containing the names and addresses of the Warrant Holders.  Any Warrant Holder may change its, his or her address as shown on the warrant register by written notice to the Company requesting such change. 

3.2

The Company shall register upon its books any transfer of a Warrant upon surrender of same as provided in Section 5.  

4.

RESERVATION OF SHARES.  The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of this Warrant, such Warrant Shares and other stock, securities and property, as from time to time shall be issuable upon the exercise of this Warrant.  As long as the Warrant shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Warrant Shares issuable upon exercise of the Warrants to be listed (subject to official notice of issuance) on each Exchange (or, if applicable on Nasdaq, NASD OTC Bulletin Board or Pink Sheets, LLC or any successor electronic quotation service and trading market) on which the Common Stock is then listed and/or quoted, if any. 

5.

EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OR MUTILATION OF  WARRANTS.  This Warrant is exchangeable, without expense, at the option of the Warrant Holder, upon presentation and surrender hereof to the Company for other warrants of different denominations entitling the holder thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder.  Subject to the terms of Section 6, upon surrender of this Warrant to the Company at its principal office or at the office of its transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall be promptly canceled.  This Warrant may be divided or combined with other warrants which carry the same rights upon presentation hereof at the principal office of the Company together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by the Warrant Holder hereof.  The term “Warrant” as used herein includes any Warrants into which this Warrant may be divided or exchanged.  Upon receipt by the Company of reasonable evidence of the ownership of and the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, of indemnity reasonably satisfactory to the Company, or, in the case of mutilation, upon surrender and cancellation of the mutilated Warrant, the Company shall execute and deliver in lieu thereof a new Warrant of like tenor and date representing an equal number of Warrants. 

6.

LIMITATION ON EXERCISE AND SALES.  

(a)

Each holder of this Warrant acknowledges that this Warrant and the Warrant Shares have not been registered under the Securities Act, as of the date of issuance hereof.  This Warrant only may be transferred to a transferee who certifies in writing to the Warrant Holder and to the Company that such transferee is an “accredited investor” within the meaning of 

Rule 501 of Regulation D promulgated by the Commission under the Securities Act. The Company shall be under no obligation to issue the shares covered by such exercise unless and until the Warrant Holder shall have executed the form of exercise annexed hereto that states that at the time of such exercise that it is then an “accredited investor” within the meaning of Rule 501 of Regulation D, is acquiring such shares for its own account, and will not transfer the Warrant Shares unless pursuant to an effective and current registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act and any other applicable restrictions, in which event the Warrant Holder shall be bound by the provisions of a legend or legends to such effect that shall be endorsed upon the certificate(s) representing the Warrant Shares issued pursuant to such exercise.  In such event, the Warrant Shares issued upon exercise hereof shall be imprinted with a legend in substantially the form provided in Section 7(b). 

(b)

Warrant Holder represents and warrants that it is acquiring this Warrant for its own account, for purposes of investment, and not with a view to, or for sale in connection with, any distribution thereof within the meaning of the Securities Act and the rules and regulations promulgated thereunder.  Warrant Holder represents, warrants and agrees that it will not sell, exercise, transfer or otherwise dispose of this Warrant (or any interest therein) or any of the Common Stock purchasable upon exercise hereof, except pursuant to (i) an effective registration statement under the Securities Act and applicable state securities laws or (ii) an opinion of counsel, satisfactory to Company, that an exemption from registration under the Securities Act and such laws is available.  Warrant Holder further acknowledges and agrees that Company is not required, legally or contractually, so to register or qualify the Warrant or such Common Stock or to take any action to make such an exemption available.  Warrant Holder understands that Company will be relying upon the truth and accuracy of the representations and warranties contained in this Section 6 in issuing this Warrant and such Common Stock without first registering the issuance thereof under the Securities Act or qualifying or registering the issuance thereof under any state securities laws that may be applicable.

(c)

Warrant Holder acknowledges that (i) there is not now, and there will not be in the future, any public market for the Warrant, (ii) although there currently is a public trading market for the Common Stock, there can be no assurance that any such market will be sustained, and (iii) there can be no assurance that Warrant Holder will be able to liquidate its investment in Company.  Warrant Holder represents and warrants that it is familiar with and understands the terms and conditions of Rule 144 promulgated under the Securities Act.

(d)

Warrant Holder represents and warrants to Company that (i) it has such knowledge and experience in financial and business matters as is necessary to enable it to evaluate the merits and risks of any investments in Company and is not utilizing any other person to be a purchaser representative in connection with evaluation of such merits and risks; and (ii) it has no need for liquidity in an investment in Company and is able to bear the risk of that investment for an indefinite period and to afford a complete loss thereof.

(e)

Warrant Holder represents and warrants that it has had access to, and has been furnished with, all of the information it has requested from Company and has had an opportunity 

to review the books and records of Company and to discuss with management and members of the board of directors of Company the business and financial affairs of Company.

(f)

Warrant Holder agrees that at the time of each exercise of this Warrant, unless the issuance of shares of Common Stock issuable thereupon is pursuant to an effective registration statement under the Securities Act and under applicable state blue sky laws, Warrant Holder will provide Company with a letter embodying the representations and warranties set forth in subsections (b) through (e), in form and substance satisfactory to Company, and agrees that the certificate(s) representing any shares issued to it upon any exercise of this Warrant may bear such restrictive legend as Company may deem necessary to reflect the restricted status of such shares under the Securities Act unless Company shall have received from Warrant Holder an opinion of counsel to Warrant Holder, reasonably satisfactory in form and substance to Company and its counsel, that such restrictive legend is not required

7.

Transfer Restrictions

(a)

Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Warrant Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions and reasonably satisfactory to counsel for the Company) to the effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Regulation D promulgated under the Securities Act.

(b)

Legends.

The Common Stock issuable on the exercise of the Warrant shall bear the following legend:

THESE SECURITIES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”) OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 

(c)

Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

8.

ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES DELIVERABLE. The Exercise Price and the number of Warrant Shares purchasable pursuant to each Warrant shall be subject to adjustment from time to time as hereinafter set forth in this Section 8: 

(a)

In case, prior to the expiration of this Warrant by exercise or by its terms, the Company shall issue any shares of its Common Stock as a stock dividend or subdivide the number of outstanding shares of its Common Stock into a greater number of shares, then in either of such cases, the then applicable Exercise Price per Warrant Share purchasable pursuant to this Warrant in effect at the time of such action shall be proportionately reduced and the number of Warrant Shares at that time purchasable pursuant to this Warrant shall be proportionately increased; and conversely, in the event the Company shall reduce the number of outstanding shares of Common Stock by combining such shares into a smaller number of shares, then, in such case, the then applicable Exercise Price per Warrant Share purchasable pursuant to this Warrant in effect at the time of such action shall be proportionately increased and the number of Warrant Shares at that time purchasable pursuant to this Warrant shall be proportionately decreased.  If the Company shall, at any time during the life of this Warrant, declare a dividend payable in cash on its Common Stock and shall at substantially the same time offer to its stockholders a right to purchase new Common Stock from the proceeds of such dividend or for an amount substantially equal to the dividend, all Common Stock so issued shall, for the purpose of this Warrant, be deemed to have been issued as a stock dividend.  Any dividend paid or distributed upon the Common Stock in stock of any other class of securities convertible into shares of Common Stock shall be treated as a dividend paid in Common Stock to the extent that shares of Common Stock are issuable upon conversion thereof.

(b)

In case, prior to the expiration of this Warrant by exercise or by its terms, the Company shall be recapitalized by reclassifying its outstanding Common Stock, (other than a change in par value to no par value), or the corporation or a successor corporation shall consolidate or merge with or convey all or substantially all of its or of any successor corporation’s property and assets to any other corporation or corporations (any such other corporations being included within the meaning of the term “successor corporation” hereinbefore used in the event of any consolidation or merger of any such other corporation with, or the sale of all or substantially all of the property of any such other corporation to, another corporation or corporations), then, as a condition of such recapitalization, consolidation, merger or conveyance, lawful and adequate provision shall be made whereby the holder of this Warrant shall thereafter have the right to purchase, upon the basis and on the terms and conditions specified in this Warrant, in lieu of the Warrant Shares theretofore purchasable upon the exercise of this Warrant, such shares of stock, securities or assets as may be issued or payable with respect to, or in exchange for, the number of Warrant Shares theretofore purchasable upon the exercise of this Warrant, had such recapitalization, consolidation, merger, or conveyance not taken place; and in any such event, the rights of the Warrant Holder to any adjustment in the number of Warrant Shares purchasable upon the exercise of this Warrant, as herein provided, shall continue and be preserved in respect of any stock which the Warrant Holder becomes entitled to purchase.

(c)

In case the Company at any time while this Warrant shall remain unexpired and unexercised shall sell all or substantially all of its property or dissolve, liquidate, or wind up its 

affairs, lawful provision shall be made as part of the terms of any such sale, dissolution, liquidation or winding up, so that the holder of this Warrant may thereafter receive upon exercise hereof in lieu of each Warrant Share that it would have been entitled to receive, the same kind and amount of any securities or assets as may be issuable, distributable or payable upon any such sale, dissolution, liquidation or winding up with respect to each share of Common Stock of the Company, provided, however, that in any case of any such sale or of dissolution, liquidation or winding up, the right to exercise this Warrant shall terminate on a date fixed by the Company; such date so fixed to be not earlier than 5:00 p.m., Eastern Standard Time, on the forty-fifth day next succeeding the date on which notice of such termination of the right to exercise this Warrant has been given by mail to the registered holder of this Warrant at its address as it appears on the books of the Company.

(d)

Except as provided in Section 8(e) hereof, from the Commencement Date until the first anniversary of the Commencement Date, if the Company shall issue or sell, or is, deemed to have issued or sold, any shares of Common Stock for a consideration per share less than the Exercise Price in effect immediately prior to the time of such issue or sale, then and in each such case (a “Trigger Issuance”) the then-existing Exercise Price shall be reduced, as of the close of business on the effective date of the Trigger Issuance, to a Exercise Price equal to the lowest price per share at which any share of Common Stock was issued or sold or deemed to be issued or sold in such Trigger Issuance.  Upon each adjustment in the Exercise Price pursuant to this Section 8(d), the number of Warrant Shares purchasable hereunder shall be adjusted, to the nearest whole share, to the product obtained by multiplying the number of Warrant Shares purchasable immediately prior to such adjustment by a fraction, (i) the numerator of which shall be the Exercise Price immediately prior to such adjustment, and (ii) the denominator of which shall be the Exercise Price immediately thereafter.

(e)

The Company shall not be required to make any adjustment of the Exercise Price in accordance with Section 8(d) in the case of (i) issuances of shares of Common Stock upon grant or exercise of options which may hereafter be granted or exercised under any stock option plan or stock option agreement of the Company, in the ordinary course of operations; (ii) issuances of securities related to the acquisition of businesses consistent with the Company’s current operations; (iii) issuances of securities as consideration for a merger or consolidation with (provided, that, the stockholders of the Company possessing the power to elect a majority of the Board of Directors of the Company prior to such merger or consolidation continue to possess such power with respect to such surviving entity following the merger or consolidation), or purchase of assets from, a non-affiliated third party or in connection with any strategic partnership or joint venture with a non-affiliated third party with the Company (the primary purpose of any such action is not to raise equity capital); (iv) issuances of shares of Common Stock in the ordinary course of business as payment for services rendered (and not for cash) to the Company so long as the aggregate amount of all such issuances do not exceed ten percent (10%) of the total number of shares of Common Stock outstanding as of the date of issuance of this Warrant; (v) shares of Common Stock issued or issuable upon the conversion or exercise of options or convertible securities outstanding on the Commencement Date; (vi) shares of Common Stock issued or issuable by reason of a dividend, stock split or other distribution payable pro rata to all holders of Common Stock; and (vii) shares of Common Stock issued or 

issuable in connection with this Warrant or in connection with the financing pursuant to which this Warrant was issued by the Company.

9.

VOLUNTARY ADJUSTMENT BY THE COMPANY.  The Company may, at its option, at any time during the term of the Warrants, reduce the then current Exercise Price to any amount deemed appropriate by the Board of Directors of the Company and/or extend the date of the expiration of the Warrants. 

10.

RIGHTS OF THE HOLDER. The Warrant Holder shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or equity, and the rights of the Warrant Holder are limited to those expressed in this Warrant and are not enforceable against the Company except to the extent set forth herein. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the Exercise Date and then only with respect to the Warrant Shares to be issued with respect thereto.  

11.

NOTICES OF RECORD DATE.  In case: 

(a)

the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of any class or any other securities, or to receive any other right, or 

(b)

of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company, or 

(c)

of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, 

then, and in each such case, the Company will mail or cause to be mailed to the Warrant Holder a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon the exercise of this  Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up.  Such notice shall be mailed at least thirty days prior to the record date or effective date for the event specified in such notice, provided that the failure to mail such notice shall not affect the legality or validity of any such action.

12.

SUCCESSORS.  The rights and obligations of the parties to this Warrant will inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors, assigns, pledgees, transferees and purchasers.  

13.

CHANGE OR WAIVER.  Any term of this Warrant may be changed or waived only by an instrument in writing signed by the party against whom enforcement of the change or waiver is sought. 

14.

HEADINGS.  The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

15.

GOVERNING LAW; VENUE.  All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  Each party agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the State of Maryland. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Maryland for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. The parties hereto hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Warrant or the transactions contemplated hereby. If any party shall commence a proceeding to enforce any provisions of this Warrant, then the prevailing party in such proceeding shall be reimbursed by the other party for its reasonable attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such proceeding.

16.

MAILING OF NOTICES, ETC.  All notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given one (1) business day after delivery to an overnight carrier with instructions to deliver to the applicable address set forth below, or, if sent by facsimile, upon receipt of a confirmation of delivery: 

Registered Holder:

To his or her last known address as indicated on the Company’s books and records.

The Company:

Tactical Solution Partners, Inc.

2408 Peppermill Drive, Suite I

Glen Burnie, Maryland 21061

Attention:  Ryan E. Kirch, CFO

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer as of December 18, 2006.

			
	                                                       

	TACTICAL SOLUTION PARTNERS, INC.

	 
	 

	 
	 
	 

	 
	By:  

	 

	 
	Name: Ryan E. Kirch

	 
	Title: Chief Financial Officer

Notice of Exercise

To Be Executed by the Warrant Holder

In Order to Exercise Warrants

TO:   Tactical Solution Partners, Inc.

The undersigned hereby: (1) irrevocably subscribes for and offers to purchase _______ shares of the common stock, par value $.0001 per share (“Common Stock”), of Tactical Solution Partners, Inc., pursuant to Warrant No. ___ heretofore issued to Sierra Equity Group, Ltd. Inc. on December 17, 2011; (2) encloses a cash payment of $__________; or (3) surrenders shares of Common Stock or Warrant Shares pursuant to the cashless exercise procedure provided for in the following paragraph; and (4) requests that a certificate for the Warrant Shares be issued in the name of the undersigned, or the undersigned's designee, and delivered to the undersigned, or the undersigned's designee, at the address specified below. 

The undersigned hereby elects to subscribe for Warrant Shares by cashless exercise of the Warrant in accordance with Section 2.1(b), and indicates below the number of shares of Common Stock or Warrant Shares to be surrendered and provides the calculation (pursuant to Section 2.1(b)(i) or (ii) of the Warrant) for the number of shares to be surrendered:

Number of shares to be Surrendered:

________________________

Calculation Pursuant to Section 2.1(b):

________________________

The undersigned hereby represents and warrants to the Company that it is an “Accredited Investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and is acquiring these securities for its own account and not with a view to, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the same.  The undersigned further represents that it does not have any contract, agreement, understanding or arrangement with any person to sell, transfer or grant the shares of Common Stock issuable under this Warrant.  The undersigned understands that the shares it will be receiving are “restricted securities” under Federal securities laws inasmuch as they are being acquired from Tactical Solution Partners, Inc., in transactions not including any public offering and that under such laws, such shares may only be sold pursuant to an effective and current registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act and any other applicable restrictions, in which event a legend or legends will be placed upon the certificate(s) representing the Common Stock issuable under this Warrant denoting such restrictions.  The undersigned understands and acknowledges that the Company will rely on the accuracy of these representations and warranties in issuing the securities underlying the Warrant.

[warrant notice of exercise signature page to follow]

[warrant notice of exercise signature page]

Date:

________________________________________________________________________

Investor Name:

_________________________________________________________________

Taxpayer Identification Number:

____________________________________________________

By: ________________________________________________________________________________

Printed Name:

_________________________________________________________________

Title:

________________________________________________________________________

Address:   

________________________________________________________________________

Note: The above signature should correspond exactly with the name on the face of this Warrant or with the name of assignee appearing in assignment form below. 

AND, if said number of shares shall not be all the shares purchasable under the within Warrant, a new Warrant is to be issued in the name of said undersigned for the balance remaining of the shares purchasable thereunder less any fraction of a share paid in cash and delivered to the address stated above.

ASSIGNMENT FORM

To be executed by the Warrant Holder

In order to Assign Warrants

FOR VALUE RECEIVED,____________________________________ hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

	
	                                                                         

	 

                                                                                                                                                                          

                                                                                                                                                                          

                                                                                                                                                                          

(Please print or type name and address)

______________________ of the Warrants represented by this Warrant, and hereby irrevocably constitutes and appoints ________________________ Attorney to transfer this Warrant on the books of the Company, with full power of substitution in the premises.

				
	Dated: 

	 
	 
	                                                                             

	 
	                                      

	     

	(Signature of Registered Holder)

THE SIGNATURE ON THE EXERCISE FORM OR THE ASSIGNMENT FORM MUST CORRESPOND TO THE NAME AS WRITTEN UPON THE FACE OF THIS WARRANT IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER,.

CERTIFICATION OF STATUS OF TRANSFEREE

TO BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT

The undersigned transferee hereby certifies to the registered holder of this Warrant and to TACTICAL SOLUTION PARTNERS, INC. that the transferee is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended.

				
	Dated:

	 
	 
	                                                                             

	 
	                                      

	     

	(Signature of Transferee)<<<### Document last closed 4:40:53 PM November 1, 1996 ###>>>

EXHIBIT 4.9

TACTICAL SOLUTION PARTNERS, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

Tactical Solution Partners, Inc., a Delaware corporation (the “Company”), hereby grants to      (the “Optionee”) as of        (the “Option Date”), a non-qualified option to purchase from the Company (the “Option”)      shares of its common stock, $0.0001 par value (“Stock”), at the price of      per share, upon and subject to the terms and conditions set forth in this agreement (the “Agreement”).

1.

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

2.

Time and Manner of Exercise of Option.

2.1.

Maximum Term of Option.  In no event may the Option be exercised, in whole or in part, after          (the “Expiration Date”).

2.2.

Exercise of Option.  (a)  In General.  Except as otherwise provided in Sections 2.2(b) through 2.2(e) and Section 3.11 hereof, the Option shall become exercisable on the last day of each            after the Option Date with respect to                   of the shares of Stock subject to the Option on the Option Date; provided, however, that the Option shall become exercisable on      with respect to the remaining      of the shares of Stock subject to the Option on the Option Date.

(a)

Incapacity.  If the Optionee’s employment with the Company terminates by reason of Incapacity, the Option shall be exercisable with respect to all of the shares of Stock subject to the Option on the effective date of the Optionee’s termination of employment and may thereafter be exercised by the Optionee or the Optionee’s Legal Representative or Permitted Transferee, as the case may be, until and including the earlier to occur of (i) the date which is 3 years after the effective date of the Optionee’s termination of employment and (ii) the Expiration Date.

(b)

Death.  If the Optionee’s employment with the Company terminates by reason of the Optionee’s death, the Option shall be exercisable with respect to all of the shares of Stock subject to the Option on the date of the Optionee’s death and may thereafter be exercised by the Optionee’s Legal Representative or Permitted Transferee, as the case may be, until and including the earlier to occur of (i) the date which is 3 years after the date of the Optionee’s death and (ii) the Expiration Date.

(c)

Termination for Cause.  If the Optionee’s employment with the Company is terminated by the Company for Cause, the Option shall terminate automatically on the effective date of the Optionee’s termination of employment.

(d)

Other Termination.  If the Optionee’s employment with the Company terminates for any reason other than Incapacity, death or Cause, the Option shall be exercisable only to the extent it is exercisable on the effective date of the Optionee’s termination of employment and may thereafter be exercised by the Optionee or the Optionee’s Legal Representative or Permitted Transferee, as the case may be, until the Expiration Date.

(e)

Death following Termination.  If the Optionee dies following a termination of employment described in Section 2.2(b) or (e), and during the period for exercise of the Option set forth in such sections, the Option shall be exercisable only to the extent it is exercisable on the date of the Optionee’s death and may thereafter be exercised by the Optionee’s Legal Representative or Permitted Transferee, as the case may be, until and including the earlier to occur of (i) the date which is 6 months after the last day of the period for exercise of the Option set forth in Section 2.2(b) or (e), as applicable and (ii) the Expiration Date.

2.3.

Method of Exercise.  The Option may be exercised only with respect to whole shares of Stock.  Subject to the limitations set forth in this Agreement, the Option may be exercised (1) by delivering to the Company an Exercise Notice and Share Repurchase Agreement in the form attached hereto as Exhibit A specifying the number of whole shares of Stock to be purchased and by accompanying such notice with payment therefor in full (or by arranging for such payment to the Company’s satisfaction) (i) in cash or (ii) if the Stock has been registered under the Securities Act and is publicly traded, (A) in cash, (B) by delivery (either actual delivery or by attestation procedures established by the Company) of previously owned whole shares of Stock (which the Optionee has held for at least six months prior to the delivery of such shares or which the Optionee purchased on the open market and in each case for which the Optionee has good title, free and clear of all liens and encumbrances) having an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable pursuant to the Option by reason of such exercise, (C) if legally permissible, in cash by a broker-dealer acceptable to the Company to whom the Optionee has submitted an irrevocable notice of exercise or (D) by a combination of (A) and (B), and (2) by executing such documents as the Company may reasonably request.  Any fraction of a share of Stock which would be required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash.  No certificate representing a share of Stock shall be issued or delivered until the full purchase price therefor and any withholding taxes thereon, as described in Section 3.3, have been paid (or arrangement made for such payment to the Company’s satisfaction).  If shares of Stock have not been registered under the Securities Act at the time the Option is exercised, if requested by the Company the Optionee shall concurrently with the exercise of the Option deliver to the Company an executed Investment Representation Statement in the form attached hereto as Exhibit B.

2.4.

Termination of Option.  (a)  In no event may the Option be exercised after it terminates as set forth in this Section 2.4.  The Option shall terminate, to the extent not earlier terminated pursuant to Section 2.2 or earlier exercised pursuant to Section 2.3, at 5:00 p.m. Central time on the Expiration Date.

(a)

In the event that rights to purchase all or a portion of the shares of Stock subject to the Option expire or are exercised, cancelled or forfeited, the Optionee shall, upon the Company’s request, promptly return this Agreement to the Company for full or partial 

2

cancellation, as the case may be.  Such cancellation shall be effective regardless of whether the Optionee returns this Agreement.  If the Optionee continues to have rights to purchase shares of Stock hereunder, the Company shall, within 10 days of the Optionee’s delivery of this Agreement to the Company, either (i) mark this Agreement to indicate the extent to which the Option has expired or been exercised, cancelled or forfeited or (ii) issue to the Optionee a substitute stock option agreement applicable to such rights, which agreement shall otherwise be substantially similar to this Agreement in form and substance.

3.

Additional Terms and Conditions of Option.

3.1.

Transferability of Option; Transferability of Stock.  (a)  The Option may not be transferred other than (i) by will or the laws of descent and distribution, (ii) pursuant to the beneficiary designation procedures set forth in Section 4.4 or (iii) by gift to a Permitted Transferee.  During the Optionee’s lifetime the Option is exercisable only by the Optionee (or the Optionee’s Legal Representative) or a Permitted Transferee (or a Permitted Transferee’s Legal Representative).  Except to the extent permitted by the second preceding sentence, the Option may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process.  Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of the Option, the Option and all rights hereunder shall immediately become null and void.

(b)

The shares of Stock purchased pursuant to the exercise of the Option shall be subject to transfer restrictions and repurchase by the Company upon such terms and conditions as set forth in the Exercise Notice and Share Repurchase Agreement.

3.2.

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

3.3.

Withholding Taxes.  (a)  As a condition precedent to the issuance or delivery of Stock upon exercise of the Option, the Optionee shall, upon request by the Company, pay to the Company in addition to the purchase price of the shares, such amount as the Company may be required, under all applicable Federal, state, local or other laws or regulations, to withhold and pay over as income or other withholding taxes (the “Required Tax Payments”) with 

3

respect to such exercise of the Option.  If the Optionee shall fail to advance the Required Tax Payments after request by the Company, the Company may, in its discretion, deduct any Required Tax Payments from any amount then or thereafter payable by the Company to the Optionee.

(a)

The Optionee shall satisfy his or her obligation to advance the Required Tax Payments by means of (i) a cash payment to the Company or (ii) if the Stock has been registered under the Securities Act and is publicly traded, (A) a cash payment to the Company, (B) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of whole shares of Stock having an aggregate Fair Market Value, determined as of the date the obligation to withhold or pay taxes first arises in connection with the Option (the “Tax Date”), equal to the Required Tax Payments, (C) authorizing the Company to withhold whole shares of Stock which would otherwise be delivered upon exercise of the Option having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Required Tax Payments, (D) if legally permissible, a cash payment by a broker-dealer acceptable to the Company to whom the Optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B) and (C).  Shares of Stock to be delivered or withheld may not have a Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate.  Any fraction of a share of Stock which would be required to satisfy any such obligation shall be disregarded and the remaining amount due shall be paid in cash.  No certificate representing a share of Stock shall be issued or delivered until the Required Tax Payments have been paid (or arrangement made for such payment to the Company’s satisfaction).

3.4.

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

3.5.

Compliance with Applicable Law.  The Option is subject to the condition that if the listing, registration or qualification of the shares subject to the Option upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the purchase or delivery of shares hereunder, the Option may not be exercised, in whole or in part, and such shares shall not be delivered, unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company.  The Company may require that certificates evidencing shares of Stock delivered pursuant to the exercise of the Option bear a legend indicating (i) that the sale, 

4

transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act and the rules and regulations thereunder and (ii) such other restrictions, if any, specified in the Exercise Notice and Share Repurchase Agreement.

3.6.

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

3.7.

Option Confers No Right as Stockholder.  The Optionee shall not be entitled to any privileges of ownership with respect to any shares of Stock or other equity security subject to the Option unless and until such shares are purchased and delivered upon the exercise of the Option, in whole or in part, and the Optionee becomes a stockholder of record with respect to such delivered shares.  The Optionee shall be subject to and bound by all of the terms and conditions of any other agreement between the Company and the Optionee regarding the shares of Stock purchased hereunder, including without limitation the Exercise Notice and Share Repurchase Agreement.

3.8.

Option Confers No Right to Continued Employment.  In no event shall the granting of the Option or its acceptance by the Optionee, or any provision of this Agreement, give or be deemed to give the Optionee any right to continued employment by the Company or any subsidiary or affiliate of the Company.

3.9.

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

3.10.

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

3.11.

Change in Control.

(a)

(1)  Notwithstanding any provision in this Agreement, in the event of a Change in Control pursuant to Section (b)(3) or (4) below in connection with which the holders of Stock receive shares of common stock that are registered under Section 12 of the Exchange Act, the Option shall immediately become exercisable in full and there shall be substituted for each share of Stock subject to the Option, the number and class of shares into which each outstanding share of Stock shall be converted pursuant to such Change in Control.  In the event of any such substitution, the purchase price per share shall be appropriately adjusted by the Board (whose determination shall be final, binding and conclusive), such adjustment to be made without an increase in the aggregate purchase price.

(2)

Notwithstanding any provision in this Agreement, in the event of a Change in Control pursuant to Section (b)(1) or (2) below, or in the event of a Change in Control 

5

pursuant to Section (b)(3) or (4) below in connection with which the holders of Stock receive consideration other than shares of common stock that are registered under Section 12 of the Exchange Act, the Option shall be surrendered to the Company and immediately canceled by the Company, and the Optionee shall receive, within ten days of the occurrence of a Change in Control, a cash payment from the Company in an amount equal to (i) the number of shares of Stock then subject to the Option, multiplied by the excess, if any, of the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of Stock on the date of occurrence of the Change in Control, over the purchase price per share of Stock subject to the Option.

(b)

“Change in Control” shall mean the occurrence of any of the following on or after December 31, 2002:

(1)

the acquisition by any individual, entity or group (a “Person”), including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 40% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); excluding, however, the following:  (A) any acquisition directly from the Company (excluding any acquisition resulting from the exercise of an exercise, conversion or exchange privilege unless the security being so exercised, converted or exchanged was acquired directly from the Company), (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (3) of this Section 3.11(b); provided further, that for purposes of clause (B), if any Person (other than the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall become the beneficial owner of 40% or more of the Outstanding Common Stock or 40% or more of the Outstanding Voting Securities by reason of an acquisition by the Company, and such Person shall, after such acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control;

(2)

individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that any individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall not be deemed a member of the Incumbent Board;

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(3)

the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to which (i) all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or indirectly) in substantially the same proportions relative to each other as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common Stock and the Outstanding Voting Securities, as the case may be, (ii) no Person (other than:  the Company; any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; the corporation resulting from such Corporate Transaction; and any Person which beneficially owned, immediately prior to such Corporate Transaction, directly or indirectly, 40% or more of the Outstanding Common Stock or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or indirectly, 40% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors and (iii) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

(4)

the consummation of a plan of complete liquidation or dissolution of the Company.

4.

Miscellaneous Provisions.

4.1.

Designation as Non-Qualified Stock Option.  The Option hereby is designated as not constituting an “incentive stock option” within the meaning of section 422 of the Code; this Agreement shall be interpreted and treated consistently with such designation.

4.2.

Meaning of Certain Terms.  (a)  References in this Agreement to employment shall also mean an agency or independent contractor relationship and references in this Agreement to employment by the Company shall also mean employment by a subsidiary of the Company.

(b)

As used herein, the following terms shall have the meanings set forth below:

“Board” shall mean the Board of Directors of the Company.

“Cause” shall mean (i) the continued failure to substantially perform the duties assigned by the Company (other than a failure resulting from the Optionee’s Incapacity), (ii) the engaging in conduct which is demonstrably injurious to the Company or any subsidiary, monetarily or otherwise, including conduct that, in 

7

the reasonable judgment of the Company, no longer conforms to the standard of the Company’s executives or employees or (iii) any act of dishonesty, commission of a felony or a significant violation of any statutory or common law duty of loyalty to the Company or any subsidiary.

“Change in Control” shall have the meaning set forth in Section 3.11(b).

“Code” shall mean the Internal Revenue Code of 1986, as amended, or any successor internal revenue law.

“Corporate Transaction” shall have the meaning set forth in Section 3.11(b)(3).

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Fair Market Value” shall mean, as of any date, the value of a share of Stock determined as follows:

(i) if the Stock is listed on any established stock exchange or a national market system, Fair Market Value shall be the closing transaction price of a share of Stock as quoted on such exchange or system on the date as of which such value is being determined, as reported in The Wall Street Journal or such other source as the Board deems reliable, or if there shall be no reported transaction for such date, on the next preceding date for which a transaction was reported; or

(ii) if Fair Market Value for any date cannot be so determined, Fair Market Value shall be determined by the Board by whatever means or method as the Board, in the good faith exercise of its discretion, shall at such time deem appropriate.

“Incapacity” shall mean the inability of the Optionee to perform the Optionee’s duties and responsibilities for a continuous period of at least six months as a result of the Optionee’s physical or mental incapacity, as determined solely by the Board.

“Incumbent Board” shall have the meaning set forth in Section 3.11(b)(2).

“Legal Representative” shall mean an executor, administrator, legal representative, guardian or similar person.

“Outstanding Common Stock” shall have the meaning set forth in Section 3.11(b)(1).

“Outstanding Voting Securities” shall have the meaning set forth in Section 3.11(b)(1).

“Permitted Transferee” shall mean (i) the Optionee’s spouse or former spouse, (ii) any of the Optionee’s lineal descendants, lineal ancestors or siblings, (iii) the Optionee’s mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, (iv) a trust of which one or more of the persons described in 

8

clauses (i)-(iii) hereof are the only beneficiaries, (v) a partnership in which no person is a partner other than the Optionee or one or more of the persons described in clauses (i)-(vi) hereof or (vi) a limited liability company in which no person is a member other than the Optionee or one or more of the persons described in clauses (i)-(vi) hereof, provided that any person described in clauses (i)-(vi) hereof has entered into a written agreement with the Company to withhold whole shares of Stock which would otherwise be delivered to such person to pay any Federal, state, local or other taxes that may be required to be withheld or paid in connection with the exercise of the Option in the event that the Optionee does not provide for an arrangement satisfactory to the Company to assure that such taxes will be paid.

“Person” shall have the meaning set forth in Section 3.11(b)(1).

“Securities Act” shall mean the Securities Act of 1933, as amended.

4.3.

Successors.  This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any Permitted Transferees or persons who shall, upon the death of the Optionee, acquire any rights hereunder in accordance with Section 4.4 hereof.

4.4.

Designation of Beneficiary.  The Optionee may file with the Board a written designation of one or more persons as the Optionee’s beneficiary or beneficiaries (both primary and contingent) in the event of the Optionee’s death.  To the extent the Option is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such Option.  Each beneficiary designation shall become effective only when filed in writing with the Board during the Optionee’s lifetime on a form prescribed by the Board.  The filing with the Board of a new beneficiary designation shall cancel all previously filed beneficiary designations.  If the Optionee fails to designate a beneficiary, or if all designated beneficiaries of the Optionee predecease the Optionee, then the Option, to the extent exercisable, may be exercised by the Optionee’s Legal Representative.

4.5.

Notices.  All notices, requests or other communications provided for in this Agreement shall be made, if to the Company, to Tactical Solution Partners, Inc., 2408 Peppermill Drive, Suite I, Glen Burnie, MD, 21061; and if to the Optionee, to                   .  All notices, requests or other communications provided for in this Agreement shall be made in writing either (a) by personal delivery, (b) by facsimile with confirmation of receipt, (c) by mailing in the United States mail, return receipt requested or (d) by express courier service, with a signature of the recipient required.  The notice, request or other communication shall be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile transmission or upon receipt by the party entitled thereto if by United States mail or express courier service; provided, however, that if a notice, request or other communication sent to the Company is not received during regular business hours, it shall be deemed to be received on the next succeeding business day of the Company.

4.6.

Amendment and Waiver.  The provisions of this Agreement may be amended or waived only by the written agreement of the Company and the Optionee, and no 

9

course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.

4.7.

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

4.8.

Entire Agreement.  This Agreement, the Exercise Notice and Share Repurchase Agreement and the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Optionee with respect to the subject matter hereof.

4.9.

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

				
	 
	TACTICAL SOLUTION PARTNERS, INC.

	  

	 
	 

	  

	 
	 

	 
	By:

	 

	                                                                

	 
	 

	 
	 
	Name:

	                                              

	  

	 
	 

	 
	 
	Title:

	                                              

	 
	 
	 

	Accepted this ___ day of _______, 200__.

	 
	 

	  

	 
	 

	 
	 
	 

	Optionee

	 
	 

EXHIBIT A

TACTICAL SOLTION PARTNERS, INC. STOCK OPTION AGREEMENT

EXERCISE NOTICE AND SHARE REPURCHASE AGREEMENT

Tactical Solution Partners, Inc.

3422 Old Capitol Trail, Suite 594

Wilmington, DE, 19808-6192

Attention:  Charles A. Wall, President & CEO

1.

Exercise of Option.  Effective as of today, ___________, 20___, the undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase _____ shares of the common stock, $0.0001 par value per share (the “Shares”) of Tactical Solution Partners, Inc. (the “Company”) under and pursuant to the Tactical Solution Partners, Inc. Stock Option Agreement dated ________, 20___ (the “Option Agreement”).

2.

Delivery of Payment.  Optionee herewith delivers to the Company the full purchase price of the Shares, as set forth in the Option Agreement.

3.

Representations of Optionee.  Optionee acknowledges that Optionee has received, read and understands this Exercise Notice and Share Repurchase Agreement (this “Agreement”) and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

4.

Rights as Shareholder.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares subject to the Option, notwithstanding the exercise of the Option.  The Shares shall be issued to the Optionee as soon as practicable after the Option is exercised.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance.

5.

Right of First Refusal.  Before any Option Shares held by the Optionee or any transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase the Option Shares on the terms and conditions set forth in this Section (the “Right of First Refusal”).

(a)

Notice of Proposed Transfer.  The Holder of the Option Shares shall deliver to the Company a written notice (the “Notice”) stating:  (i) the Holder’s bona fide intention to sell or otherwise transfer such Option Shares; (ii) the name of each proposed purchaser or other transferee (the “Proposed Transferee”); (iii) the number of Option Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Option Shares (the “Offered Price”), and the Holder shall offer the Option Shares at the Offered Price to the Company or its assignee(s).

1

(b)

Exercise of Right of First Refusal.  At any time within ninety (90) days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase some or all of the Option Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price determined in accordance with subsection (c) below.

(c)

Purchase Price.  The purchase price (the “Purchase Price”) for the Option Shares purchased by the Company or its assignee(s) under this Section shall be the Offered Price.  If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Company in good faith.

(d)

Payment.  Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within 90 days after receipt of the Notice or in such other manner and at such other time mutually agreeable to the parties.

(e)

Holder’s Right to Transfer.  If all of the Option Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Option Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer is consummated within 120 days after the date of the Notice, that any such sale or other transfer is effected in accordance with any applicable securities laws and that the Proposed Transferee agrees in writing that the provisions of this Section shall continue to apply to the Option Shares in the hands of such Proposed Transferee.  If the Option Shares described in the Notice are not transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Option Shares held by the Holder may be sold or otherwise transferred.

6.

Share Repurchase.  (a)  If the Optionee’s employment with the Company terminates for any reason or if the Optionee breaches any covenant set forth in any employment, noncompetition, nonsolicitation, confidentiality, inventions or similar agreement between the Company and the Optionee (an “Employment Agreement”) at any time, the Company or its assignee shall have the right (but not the obligation) in its sole discretion to repurchase any or all of the Option Shares held by such Optionee (the “Share Repurchase Option”).  If the Company or its assignee repurchases any Option Shares pursuant to this Section, it shall pay to the Optionee or his or her Legal Representative a purchase price equal to:  (i) in the case of the Optionee’s termination of employment for any reason other than Cause, the Fair Market Value of such Option Shares as of the date the Company or its assignee elects to repurchase such Option Shares; and (ii) in the case of the Optionee’s termination of employment for Cause or the Optionee’s breach of an Employment Agreement, the lesser of the exercise price, as adjusted pursuant to Section 3.4 of the Option Agreement, and the Fair Market Value of the Option Shares as of the date the Company or its assignee elects to repurchase such Option Shares.

(a)

The right of the Company or its assignee to repurchase such Option Shares shall expire 90 days after the date of the Optionee's termination of employment or breach, as 

A-2

applicable, or, if later, 90 days after the date the Option is exercised.  The repurchase rights shall be in addition to any other rights or remedies that the Company or its assignee may have under this Agreement or otherwise.  If the Company or its assignee elects to repurchase any Option Shares pursuant to this Section, (i) the Company or its assignee shall deliver to the Optionee, within the 90-day period described in this Section, a notice setting forth the number of Option Shares which it has elected to repurchase and (ii) the Optionee shall deliver to the Company a certificate or certificates for the Option Shares being repurchased, duly endorsed or otherwise in proper form for transfer, against payment of the required repurchase price in cash (by check).

7.

Termination of Right of First Refusal and Share Repurchase Option.  The Right of First Refusal and Share Repurchase Option, as set forth in Sections 5 and 6 hereof, shall terminate as to any Option Shares upon the first sale of shares of common stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act.

8.

Tax Consultation.  Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition of the Shares.  Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

9.

Restrictive Legends and Stop-Transfer Orders.

(a)

Legends.  Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by federal, state or foreign securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT THEREOF OR UNLESS THE TRANSFER IS OTHERWISE EXEMPT FROM REGISTRATION.  THE COMPANY MAY REQUIRE A WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH ANY PROPOSED SALE, PLEDGE, HYPOTHECATION OR OTHER TRANSFER OF THE SHARES.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER HELD BY THE ISSUER OR ITS ASSIGNEE(S) AND CERTAIN PURCHASE RIGHTS IN FAVOR OF THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THE OPTION RELATING TO THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.  SUCH TRANSFER 

A-3

RESTRICTIONS AND PURCHASE RIGHTS ARE BINDING ON TRANSFEREES OF THESE SHARES.

(b)

Stop-Transfer Orders.  Optionee agrees that in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

(c)

Refusal to Transfer.  The Company shall not be required (i) to transfer any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

10.

Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assigns, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  This Agreement shall be binding upon Optionee and, subject to the restrictions on transfer set forth herein, his or her heirs, executors, administrators, successors and assigns.

11.

Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted to the Board which shall review such dispute at its next regular meeting.  The resolution of such a dispute by the Board shall be final, binding and conclusive on all parties.

12.

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

13.

Entire Agreement.  The Option Agreement is incorporated herein by reference.  Capitalized terms not defined herein shall have the meanings specified in the Option Agreement.  This Agreement, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof.  This Agreement may not be modified except by means of a writing signed by the Company and Optionee.

			
	Submitted by:

	 
	Accepted by:

	Optionee:

	 
	TACTICAL SOLUTION PARTNERS, INC.

	____________________________

	     

	____________________________

	Signature

	 
	By:

	____________________________

	 
	____________________________

	Print Name

	 
	Its:

	 
	 
	____________________________

Date Receive

A-4

EXHIBIT B

TACTICAL SOLUTION PARTNERS, INC. STOCK OPTION AGREEMENT

INVESTMENT REPRESENTATION STATEMENT

Optionee:

_____________________

Company:

Tactical Solution Partners, Inc.

Security:

Common Stock, $0.0001 par value

Number of Shares:

_____________________

Aggregate Exercise Price:

_____________________

Date:

_____________________

In connection with the purchase of the above-listed Securities, the undersigned Optionee represents to the Company the following:

(a)

Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities.  Optionee is acquiring these Securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

(b)

Optionee acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee’s investment intent as expressed herein.  In this connection, Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future.  Optionee further understands that:  (i) the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available; (ii) the Company is under no obligation to register the Securities; and (iii) the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company, and any other legend required under applicable state securities laws.

(c)

Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.  Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act.  In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including:  (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any three month period not exceeding the limitations specified in Rule 144(e) and (4) the timely filing of a Form 144, if applicable.

In the event that the Company does not qualify under Rule 701 at the time of the grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the later of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than one year, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above.

(d)

Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and other than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.  Optionee understands that no assurances can be given that any such other registration exemption will be available in such event.

		
	                                                                              

	Signature of Optionee

	   

	 

	  

	_________________________________

	 
	Date: _____________________________

B-2

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