Document:

Form of Warrant to Purchase 65,000 Shares of the Company's Common Stock

 EXHIBIT 4.26 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.

 WARRANT 
 TO
PURCHASE 65,000 SHARES OF COMMON STOCK OF 
 TRI-S SECURITY CORPORATION 
  

			
	No. 01092009-    	  	January 9, 2009

 THIS CERTIFIES THAT, for value received,
                     or his registered assigns (the “Holder”) is entitled to purchase from Tri-S Security Corporation, a Georgia
corporation (the “Company”), at any time or from time to time on or after the date hereof and prior to 5:00 p.m., Atlanta, Georgia time, on July 9, 2017 (the “Expiration Date”), at the place where the Warrant
Agency (as hereinafter defined) is located, at the Exercise Price (as hereinafter defined), the number of shares of common stock, $.001 par value (the “Common Stock”), of the Company specified above, subject to the terms and
conditions as hereinafter provided. 
 Capitalized terms used and not otherwise defined in this Warrant shall have the meanings set forth in
Article IV hereof. 
 ARTICLE I 
 EXERCISE OF WARRANTS 
 1.1 Method of Exercise. 
 (a) To exercise this Warrant in whole or in part, the Holder shall deliver to the Company at the Warrant Agency: (i) this Warrant; (ii) a
written notice, substantially in the form of the subscription notice attached hereto as Annex 1, of such Holder’s election to exercise this Warrant, which notice shall specify the number of whole shares of Common Stock to be purchased,
the denominations of the share certificate or certificates desired and the name or names of the Eligible Holder(s) in which such certificates are to be registered (the “Exercise Notice”); and (iii) payment of the full Exercise
Price with respect to such shares of Common Stock. Such payment may be made, at the option of the Holder, by cash, money order, certified or bank cashier’s check, or wire transfer. 

 (b) The Company shall, as promptly as practicable and in any event within five (5) Business Days
thereafter, execute and deliver or cause to be executed and delivered, in accordance with an Exercise Notice delivered pursuant to Section 1.1(a), a certificate or certificates representing the aggregate number of shares of Common Stock
specified in said notice. The share certificate or certificates so delivered shall be in such denominations as may be specified in such notice (or, if such notice shall not specify denominations, one certificate shall be issued) and shall be issued
in the name of the Holder or such other name or names of Eligible Holder(s) as shall be designated in such notice. Such certificate or certificates shall be deemed to have been issued, and such Holder or any other Person so designated to be named
therein shall be deemed to have exercised this Warrant and for all purposes to have become holders of record of such shares, as of the earliest date on which the aforementioned notice and full payment of the Exercise Price with respect to such
notice is received by the Company. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of the certificate or certificates, deliver to the Holder a new Warrant evidencing the right to purchase the
remaining shares of Common Stock called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. The Company shall pay all expenses payable in connection with the preparation, issuance and delivery of share
certificates and new Warrants as contemplated by Section 2.6 below (other than transfer or similar taxes in connection with the transfer of securities), except that, if share certificates or new Warrants shall be registered in a name or names
other than the name of the Holder, funds sufficient to pay all transfer taxes payable as a result of such transfer shall be paid by the Holder at the time of delivering the aforementioned notice or promptly upon receipt of a written request of the
Company for payment. 
 (c) If this Warrant shall be surrendered for exercise within any period during which the transfer books for shares of
the Common Stock purchasable upon the exercise of this Warrant are closed for any purpose, then the Company shall not be required to make delivery of certificates for the Common Stock purchasable upon such exercise until the date of the reopening of
said transfer books. 
 1.2 Shares To Be Fully Paid and Nonassessable. All shares of Common Stock issued upon the exercise of this
Warrant shall be validly issued, fully paid and nonassessable. 
 1.3 No Fractional Shares To Be Issued. The Company shall not be
required to issue fractions of shares of Common Stock upon exercise of this Warrant. The Holder may only elect to exercise this Warrant with respect to a whole number of shares of the Common Stock. 
 1.4 Securities Laws; Share Legend. The Holder, by acceptance of this Warrant, agrees that this Warrant and all shares of Common Stock issuable
upon exercise of this Warrant will be disposed of only in accordance with the Securities Act of 1933, as amended, and any successor Federal statue, and the rules and regulations of the Commission promulgated thereunder (the “Securities
Act”). In addition to any other legend which the Company may deem advisable under the Securities Act and applicable state securities laws, all certificates representing shares of Common Stock (as well as any other securities issued
hereunder in respect of any such shares) issued upon exercise of this Warrant shall be endorsed as follows: 
 THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 
  

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 Any certificate issued at any time in exchange or substitution for any certificate bearing such legend
(except a new certificate issued upon completion of a public distribution pursuant to a registration statement under the Securities Act) shall also bear such legend unless, in the opinion of counsel (in form and substance reasonably satisfactory to
the Company) selected by the Holder of such certificate and reasonably acceptable to the Company, the securities represented thereby need no longer be subject to restrictions on resale under the Securities Act. 
 1.5 Exercise Limitations. Notwithstanding anything herein to the contrary, the Company shall not effect any exercise of this Warrant, and the
Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 1.1 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Exercise Notice, the Holder
(together with such Holder’s Affiliates, and any other Person or entity acting as a group together with the Holder or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation. For
purposes of this Section 1.5, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated
thereunder. To the extent that the limitation contained in this Section 1.5 applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which
portion of this Warrant is exercisable shall be made in good faith by the Company in consultation with the Holder. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder. The “Beneficial Ownership Limitation” shall be 19.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of
shares of Common Stock issuable upon exercise of this Warrant. The provisions of this Section 1.5 shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1.5 to correct this
Section 1.5 (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this Section 1.5 shall apply to all Eligible Holders of this Warrant. 
 ARTICLE II 
 WARRANT AGENCY; TRANSFER, EXCHANGE AND 
 REPLACEMENT OF WARRANT 
 2.1 Warrant Agency. Until such time, if any, as an independent agency shall be appointed by
the Company to perform services described herein with respect to this Warrant (the 

  

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“Warrant Agency”), the Company shall perform the obligations of the Warrant Agency provided herein at its principal office address or such
other address as the Company shall specify by prior written notice to the Holder. 
 2.2 Ownership of Warrant. The Company may deem
and treat the Person in whose name this Warrant is registered as the holder and owner hereof (notwithstanding any notations of ownership or writing hereon made by any Person other than the Company) for all purposes and shall not be affected by any
notice to the contrary, until presentation of this Warrant for registration of transfer as provided in this Article II. 
 2.3 Transfer of
Warrant. This Warrant may only be transferred to a purchaser subject to and in accordance with this Section 2.3 and Section 1.4 hereof, and any attempted transfer which is not in accordance with this Section 2.3 and
Section 1.4 hereof shall be null and void and the transferee shall not be entitled to exercise any of the rights of the holder of this Warrant. The Company agrees to maintain at the Warrant Agency books for the registration of such transfers of
Warrants, and transfer of this Warrant and all rights hereunder shall be registered, in whole or in part, on such books, upon surrender of this Warrant at the Warrant Agency in accordance with this Section 2.3, together with a written
assignment of this Warrant, substantially in the form of the assignment attached hereto as Annex 2, duly executed by the Holder or its duly authorized agent or attorney-in-fact, with signatures guaranteed by a bank or trust company or a
broker or dealer registered with FINRA, and funds sufficient to pay any transfer taxes payable upon such transfer. Upon surrender of this Warrant in accordance with this Section 2.3, the Company (subject to being satisfied that such transfer is
in compliance with Section 1.4 hereof) shall execute and deliver a new Warrant or Warrants of like tenor and representing in the aggregate the right to purchase the same number of shares of Common Stock in the name of the assignee or assignees
and in the denominations specified in the instrument of assignment, and this Warrant shall promptly be canceled. Notwithstanding the foregoing, a Warrant may be exercised by a new holder without having a new Warrant issued. The Company shall not be
required to pay any Federal or state transfer tax or charge that may be payable in respect of any transfer of this Warrant or the issuance or delivery of certificates for Common Stock in a name other than that of the registered holder of this
Warrant. 
 2.4 Division or Combination of Warrants. This Warrant may be divided or combined with other Warrants, in connection with
the partial exercise of this Warrant, upon surrender hereof and of any Warrant or Warrants with which this Warrant is to be combined at the Warrant Agency, together with a written notice specifying the names and denominations in which the new
Warrant or Warrants are to be issued, signed by the holders hereof and thereof or their respective duly authorized agents or attorneys-in-fact. Subject to compliance with Sections 1.4 and 2.3 hereof as to any transfer which may be involved in the
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. 
 2.5 Loss, Theft, Destruction or Mutilation of Warrant Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security (in customary form) reasonably satisfactory to the Company, or, in the case of any such
mutilation, upon surrender and cancellation of such Warrant and upon 

  

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reimbursement of the Company’s reasonable incidental expenses, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated
Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of shares of Common Stock. 
 2.6
Expenses of Delivery of Warrants. Except as otherwise expressly provided herein, the Company shall pay all expenses (other than transfer taxes as described in Section 2.3) and other charges payable in connection with the preparation,
issuance and delivery of Warrants hereunder and shares of Common Stock upon the exercise hereof. 
 ARTICLE III 
 ADJUSTMENT PROVISIONS 
 3.1
Adjustments Generally. The Exercise Price and the number of shares of Common Stock (or other securities or property) issuable upon exercise of this Warrant shall be subject to adjustment from time to time upon the occurrence of certain
events, as provided in this Article III. 
 3.2 Common Share Reorganization and Stock Dividend Payments. If the Company, at any
time this Warrant is outstanding, (a) shall subdivide its outstanding shares of Common Stock into a greater number of shares or consolidate its outstanding shares of Common Stock into a smaller number of shares (any such event being called a
“Common Share Reorganization”), or (b) pay a stock dividend (except scheduled dividends paid on preferred stock which contain a stated dividend rate) or otherwise make a distribution or distributions on shares of its Common
Stock or on any other class of capital stock payable in shares of Common Stock (any such event being called a “Stock Dividend Payment”), then (i) the Exercise Price shall be adjusted, effective immediately after the record date
at which the holders of shares of Common Stock are determined for purposes of a Common Share Reorganization or at which the holders of shares of Common Stock or any other class of capital stock are determined for purposes of a Stock Dividend
Payment, as the case may be, to a price determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding on such record date
before giving effect to such Common Share Reorganization or Stock Dividend Payment, as the case may be, and the denominator of which shall be the number of shares of Common Stock outstanding after giving effect to such Common Share Reorganization or
Stock Dividend Payment, as the case may be, and (ii) the number of shares of Common Stock subject to purchase upon exercise of this Warrant shall be adjusted, effective at such time, to a number determined by multiplying the number of shares of
Common Stock subject to purchase immediately before such Common Share Reorganization or Stock Dividend Payment, as the case may be, by a fraction, the numerator of which shall be the number of shares outstanding after giving effect to such Common
Share Reorganization or Stock Dividend Payment, as the case may be, and the denominator of which shall be the number of shares of Common Stock outstanding immediately before such Common Share Reorganization or Stock Dividend Payment, as the case may
be. 
 3.3 Capital Reorganization. If, at any time this Warrant is outstanding, there shall be any consolidation or merger to which
the Company is a party, other than a consolidation or a merger in which the Company is a continuing corporation and which does not result in any 

  

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reclassification of, or change (other than a Common Share Reorganization, Stock Dividend Payment or a change in par value) in, outstanding shares of Common
Stock, or any sale or conveyance of the property of the Company as an entirety or substantially as an entirety (any such event being called a “Capital Reorganization”), then, effective upon the effective date of such Capital
Reorganization, the Holder shall have the right to purchase, upon exercise of this Warrant, the kind and amount of shares of stock and other securities and property (including cash) which the Holder would have owned or have been entitled to receive
after such Capital Reorganization if this Warrant had been exercised immediately prior to such Capital Reorganization. The provisions of this Section 3.3 shall similarly apply to successive Capital Reorganizations. 
 3.4 Adjustment Rules. 
 (a) Any
adjustments pursuant to this Article III shall be made successively whenever an event referred to herein shall occur. 
 (b) If the Company
shall set a record date to determine the holders of shares of Common Stock or any other class of capital stock, as the case may be, for purposes of a Common Share Reorganization, Stock Dividend Payment or Capital Reorganization and shall legally
abandon such action prior to effecting such action, then no adjustment shall be made pursuant to this Article III in respect of such action. 
 3.5 Notice of Adjustments. The Company shall give notice to the Holder prior to any record date or effective date, as the case may be, in respect of any Common Share Reorganization, Stock Dividend Payment or Capital Reorganization
describing, in each case, such event in reasonable detail and specifying such record date or effective date, as the case may be. In addition, after the record date or effective date, as the case may be, of any Common Share Reorganization, Stock
Dividend Payment or Capital Reorganization, the Company shall promptly give notice to the Holder of such event, describing such event in reasonable detail and specifying the record date or effective date, as the case may be, and, if determinable,
the required adjustment and the computation thereof. If the required adjustment is not determinable at the time of such notice, the Company shall give notice to the Holder of such adjustment and computation promptly after such adjustment becomes
determinable. 
 3.6 Adjustment by Board of Directors. If any event occurs as to which, in the opinion of the Board of Directors of
the Company, the provisions of this Article III are not strictly applicable or if strictly applicable would not fairly protect the rights of the holder of this Warrant in accordance with the essential intent and principles of such provisions, then
the Board of Directors may make, in its discretion, an adjustment in the application of such provisions, in accordance with such essential intent and principles, so as to protect such rights as aforesaid, but in no event shall any adjustment have
the effect of increasing the Exercise Price or decreasing the number of shares of Common Stock into which the Warrant is exercisable as otherwise determined pursuant to any of the provisions of this Article III, except in the case of a combination
of shares of a type contemplated in Section 3.2 and then in no event to an amount larger than the Exercise Price as adjusted pursuant to Section 3.2. 
  

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 ARTICLE IV 
 DEFINITIONS 
 The following terms, as used in this Warrant, have the following respective meanings:

 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by
or is under common control with a Person as such terms are used in and construed under Rule 144 under the Securities Act. 
 “Beneficial Ownership Limitation” has the meaning set forth in Section 1.5. 
 “Business
Days” means each day in which banking institutions in Atlanta, Georgia are not required or authorized by law or executive order to close. 
 “Capital Reorganization” has the meaning set forth in Section 3.3. 
 “Commission” means the
Securities and Exchange Commission. 
 “Common Share Reorganization” has the meaning set forth in Section 3.2.

 “Common Stock” has the meaning set forth in the first paragraph of this Warrant. 
 “Company” has the meaning set forth in the first paragraph of this Warrant. 
 “Eligible Holder” means the Holder and any permitted transferee of the Holder pursuant to and in accordance with this Warrant.

 “Exchange Act” has the meaning set forth in Section 1.5. 
 “Exercise Price” means $2.33 per share of Common Stock, as may be adjusted pursuant to Article III. 
 “Exercise Notice” has the meaning set forth in Section 1.1(a). 
 “FINRA” means the Financial Industry Regulatory Authority. 
 “Holder” has the meaning set forth in the first paragraph of this Warrant. 
 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
 “Securities
Act” has the meaning set forth in Section 1.4. 
 “Stock Dividend Payment” has the meaning set forth in
Section 3.2. 
 “Warrant Agency” has the meaning set forth in Section 2.1. 
  

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 “Warrants” mean this Warrant. 
 ARTICLE V 
 MISCELLANEOUS 
 5.1 Governing Law. This Warrant shall be governed in all respects by the laws of the State of Georgia, without reference to its conflicts of law
principles. 
 5.2 Covenants To Bind Successor and Assigns. All covenants, stipulations, promises and agreements contained in this
Warrant by or on behalf of the Company shall bind its successors and assigns, whether or not so expressed. 
 5.3 Entire Agreement.
This Warrant constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations, or
covenant except as specifically set forth herein or therein, providing that nothing herein shall affect the Subscription Agreement between the Company and the Holders with respect to the Private Placement. 
 5.4 Waivers and Amendments. No failure or delay of the Holder in exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and
remedies of the Holder are cumulative and not exclusive of any rights or remedies which it would otherwise have. The provisions of this Warrant may be amended, modified or waived with (and only with) the written consent of the Company and the Holder
of this Warrant. 
 5.5 Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be
mailed by express, registered or certified mail, postage prepaid, return receipt requested, sent by telecopy (with confirmation of transmission received and followed by the posting of a “hard copy” of the notice or communication by
first-class U.S. mail), or by courier service guaranteeing overnight delivery with charges prepaid, or otherwise delivered by hand or by messenger, and shall be conclusively deemed to have been received by a party hereto and to be effective on the
day on which delivered or telecopied to such party at its address set forth below (or at such other address as such party shall specify to the other parties hereto in writing), or, if sent by registered or certified mail, on the third Business Day
after the day on which mailed, addressed to such party at such address. 
 In the case of the Holder, such notices and communications shall
be addressed to its address as shown on the books maintained by the Warrant Agency, unless the Holder shall notify the Company and the Warrant Agency in writing that notices and communications should be sent to a different address, in which case
such notices and communications shall be sent to the address specified by the Holder. In the case of the Company, such notices and communications shall be addressed as follows: Attention: Chief Financial Officer, Tri-S Security Corporation, Royal
Centre One, 11675 Great Oaks Way Suite 120, Alpharetta, GA 30022. 
  

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 5.6 Survival of Agreements; Representations and Warranties, etc. All warranties, representations
and covenants made by the Company herein shall be considered to have been relied upon by the Holder and shall survive the issuance and delivery of the Warrant, regardless of any investigation made by the Holder, and shall continue in full force and
effect so long as this Warrant is outstanding. 
 5.7 Severability. In case any one or more of the provisions contained in this
Warrant shall be held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall endeavor in
good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 5.8 Section Headings. The section headings used herein are for convenience of reference only, do not constitute a part of this Warrant and shall
not affect the construction of or be taken into consideration in interpreting this Warrant. 
 5.9 No Rights as Shareholder; No
Limitations on Company Action. This Warrant shall not entitle the Holder to any rights as a shareholder of the Company. No provision of this Warrant and no right or option granted or conferred hereunder shall in any way limit, affect or abridge
the exercise by the Company of any of its corporate rights or powers to recapitalize, amend its certificate of incorporation, reorganize, consolidate or merge with or into another corporation or to transfer all or any part of its property or assets,
or the exercise of any other of its corporate rights or powers. 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
representative. 
  

			
	TRI-S SECURITY CORPORATION
		
	By:	 	  

	Name:	 	Nicolas V. Chater
	Title:	 	Chief Financial Officer

  

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 Annex 1 
 EXERCISE NOTICE 

	TO:	Tri-S Security Corporation 

 Royal Centre One 

11675 Great Oaks Way Suite 120 
 Alpharetta, GA 30022 
 Attention:         Chief Financial Officer 
 The undersigned, pursuant to the provisions set forth in the attached Warrant (No.    ), hereby irrevocably elects to purchase
             shares of the Common Stock covered by such Warrant. 
 The
undersigned herewith makes payment of the full Exercise Price for such shares at the price per share provided for in such Warrant, which is $            . Such payment takes the form of
$             in (check one): 
  

			
	  
	  	cash;
		
	  
	  	money order;
		
	  
	  	certified or bank cashier’s check; or
		
	  
	  	wire transfer.

 The undersigned requests that the certificates for such shares be issued in the name of, and
delivered
to                                         
                                        whose address
is
                                         
                                         
              . The undersigned also requests that the certificates for the shares be issued in the following denominations:
                                         
                                   . 
 The undersigned represents and warrants that (i) all offers and sales by the undersigned of the securities issuable upon exercise of the within
Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to an exemption from registration under the Securities Act; and (ii) the undersigned is
an accredited investor within the meaning of Regulation D under the Securities Act. 
  

									
	Dated:	 	  
	 		 	  

		 		 		 	(Signature must conform to name of holder as specified on the face of the Warrant)
		 		 		 	Address:	 	  

		 		 		 		 	  

 Annex 2 
 Assignment 
 For value received, the undersigned hereby sells, assigns and transfers unto:

  

			
	Name:	 	  

		 	(Please type or print in block letters)
		
	Address:	 	  

 the right to purchase Common Stock (as defined in the attached Warrant) represented by the attached Warrant to the
extent of                      shares as to which such right is exercisable and does hereby irrevocably constitute and appoint
                                         
                   , attorney-in-fact, to transfer said Warrant on the books of Tri-S Security Corporation, with full power of substitution in the
premises. 
 Dated:                     

  

							
	Signature:	 	  
	 	
		 	Note:	 	The above signature should correspond exactly with the name on the face of the attached Warrant.	 	
		 		 		 	

  

			
	Printed Name:	 	  

  

			
	Title:Form of 14% Convertible Promissory Note

 EXHIBIT 4.27 
 THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS,
AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO: (A) THE RESTRICTIONS SET FORTH HEREIN AND (B) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO TRI-S SECURITY CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED. 
 14% CONVERTIBLE
PROMISSORY NOTE DUE 2010 
  

			
	No. 02032009-    	 	Issue Date: February 3, 2009
		 	Alpharetta, Georgia

 Tri-S Security Corporation, a Georgia corporation (“Payor”), hereby promises to pay to
                     (“Holder”), at the address such Holder may from time to time designate in writing to Payor, the principal sum of FIFTY
THOUSAND DOLLARS ($50,000.00), together with interest thereon as provided herein, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, in accordance
with the terms and conditions of this promissory note (the “Note”). 
 1. Interest. The outstanding principal balance
hereunder shall bear interest at a rate of 14% per annum from the date of issuance of this Note as indicated above (the “Issue Date”), computed on the basis of a 360-day year consisting of twelve 30-day months. All accrued interest
under this Note shall be payable monthly on the last Trading Day (as hereinafter defined) of each month, commencing the month after the Issue Date. All payments made hereunder shall be applied first to accrued interest and thereafter to principal.
For purposes of this Note, “Trading Day” means any day on which the shares of Payor’s common stock, par value $0.001 per share (the “Common Stock”), are purchased and sold on the principal securities exchange or market on
which the Common Stock is then listed or traded. 
 2. Maturity Date. The outstanding principal balance hereunder and all unpaid,
accrued interest thereon shall be payable on November 13, 2010 (the “Maturity Date”). 
 3. Conversion. Holder may
elect to convert all, but not less than all, of the outstanding principal balance hereunder (the “Converted Amount”) into a number of shares of Common Stock (the “Conversion Shares”) equal to the quotient obtained by dividing the
Converted Amount by the Conversion Price. For purposes of this Note, the “Conversion Price” shall equal $1.75 per share, subject to adjustment as set forth in Section 5 hereof. 
 4. Conversion Procedure. 
 (a) Holder shall exercise the conversion right set forth in Section 3 hereof by delivering to Payor this Note and a completed Notice of Conversion in the form attached hereto as Exhibit A (a “Conversion Notice”). No
later than five Trading Days after 

 
Holder delivers to Payor the Conversion Notice, Payor shall issue to Holder a certificate or certificates representing the Conversion Shares into which the
Converted Amount has been converted. Such conversion shall be deemed to have been effected as of the close of business on the date that this Note and the completed Conversion Notice are delivered to Payor, and Holder will be deemed to have become
the holder of record of the Conversion Shares issuable pursuant to such notice on such date. 
 (b) Payor shall not be
required to pay any Federal or state transfer tax or charge that may be payable in respect of the issuance or delivery of certificates representing the Conversion Shares in a name other than that of Holder. 
 (c) Upon conversion of this Note pursuant to Sections 3 and 4 hereof, Payor will take all such actions as are necessary in order to ensure
that the Conversion Shares will be validly issued, fully paid and nonassessable. 
 (d) If Holder is required to make any
governmental filings or to obtain any governmental approval in connection with the issuance or conversion of this Note, Payor will provide Holder with reasonable assistance in preparing such filings or obtaining such approval. Payor will make all
filings Payor is required to make with the Securities and Exchange Commission (the “SEC”) and the applicable state securities commissions in connection with the issuance of this Note and the Conversion Shares. 
 (e) No fractional share of Common Stock or scrip representing any fractional share of Common Stock shall be issued upon the conversion of
the Converted Amount. If the conversion of the Converted Amount results in a fraction, the number of shares of Common Stock to be issued to Holder shall be rounded up to the nearest whole share. 
 (f) Upon conversion of the entire outstanding principal balance hereunder and the payment of the accrued but unpaid interest due thereon,
the rights of Holder with respect to this Note will cease. 
 5. Adjustment of Conversion Price. In the event that, after the Issue
Date, Payor shall: (i) pay a dividend or make a distribution on the outstanding shares of Common Stock in Payor’s capital stock (which shall include any options, warrants or other rights to acquire capital stock), (ii) subdivide the
outstanding shares of Common Stock into a larger number of shares, (iii) combine the outstanding shares of Common Stock into a smaller number of shares, or (iv) issue any shares of Payor’s capital stock in reclassification of the
Common Stock, then, and in each such case, the Conversion Price in effect immediately prior to such event shall be adjusted so that, upon conversion of the Converted Amount, Holder shall be entitled to receive the number of Conversion Shares or
other securities of Payor that Holder would have owned or would have been entitled to receive upon or by reason of any of the events described above had the Converted Amount been converted immediately prior to the occurrence of such event. In the
event that the outstanding shares of Common Stock are ever converted into a greater or lesser number of shares of another corporation or entity through a merger or similar transaction, a proportionate adjustment shall be made to the Conversion Price
to account for such change. Payor shall give prompt written notice to Holder following the occurrence of any event which requires an adjustment to the Conversion Price pursuant to the terms hereof. 
 6. Limitations on Right to Convert. In no event shall Holder be permitted to convert the outstanding principal balance hereunder pursuant to
Sections 3 and 4 hereof if, upon such 

  

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conversion, the number of Conversion Shares to be issued pursuant to such conversion plus the number of shares of Common Stock beneficially owned by
Holder would exceed 9.99% of the number of shares of Common Stock then issued and outstanding, it being the intent of Payor and Holder that Holder not be deemed at any time to have the power to vote or dispose of greater than 9.99% of the number of
shares of Common Stock issued and outstanding at any time. Nothing contained herein shall be deemed to restrict the right of Holder to convert such excess principal amount at such time as such conversion will not violate the provisions of this
Section 6. As used herein, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. To the extent that the limitation contained in this Section 6 applies (and
without limiting any rights Payor may otherwise have), Payor may rely on Holder’s determination of whether this Note is convertible pursuant to the terms hereof, Payor shall have no obligation whatsoever to verify or confirm the accuracy of
such determination, and the submission of a Conversion Notice by Holder shall be deemed to be Holder’s representation that this Note is convertible pursuant to the terms hereof. 
 7. Securities Laws; Share Legend. Holder, by acceptance of this Note, agrees that the Conversion Shares will be disposed of only in accordance
with the Securities Act and the rules and regulations of the SEC promulgated thereunder. In addition to any other legend which Payor may deem advisable under the Securities Act and applicable state securities laws, all certificates representing the
Conversion Shares (as well as any other securities issued hereunder in respect of any such shares) issued upon conversion of this Note shall be endorsed as follows: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 
 Any certificate issued at any time in exchange or substitution for any certificate bearing such legend (except a new certificate issued upon completion
of a public distribution pursuant to a registration statement under the Securities Act) shall also bear such legend unless, in the opinion of counsel (in form and substance reasonably satisfactory to Payor) selected by Holder of such certificate,
the securities represented thereby need no longer be subject to restrictions on resale under the Securities Act. 
 8. Prepayment.
Payor has the option to prepay all or any portion of the outstanding principal balance hereunder at any time, and from time to time, after the Issue Date with no prepayment penalty. Payor may exercise this right of prepayment by delivering to Holder
a written notice (a “Prepayment Notice”) indicating the amount of the outstanding principal balance hereunder to be prepaid and the date on which Payor intends to make such prepayment, which date may be no earlier than 30 days after the
Prepayment Notice is delivered to Holder. 
 9. Governing Law. The terms of this Note shall be construed in accordance with the laws
of the State of Georgia. 
  

 3 

 10. Restrictions on Transfer. Holder, by acceptance of this Note, agrees and understands that:
(i) this Note may not be transferred, sold pledged or hypothecated by Holder; and (ii) any attempted transfer, sale, pledge or hypothecation of this Note by Holder shall be void and of no effect. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the Payor and Holder have duly executed and delivered this Note, or caused
this Note to be duly executed and delivered, all as of the date first written above. 
  

			
	TRI-S SECURITY CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 5 

 EXHIBIT A 
 NOTICE OF CONVERSION 
 TO: TRI-S SECURITY CORPORATION 
 (1) The undersigned hereby elects to convert the entire outstanding principal balance of that certain 14% Convertible Promissory Note due 2010, issued by
Tri-S Security Corporation (the “Company”) to the undersigned (“the Note”), into              shares (the “Shares”) of the Company’s common stock, $.001
par value per share, pursuant to the terms of the Note. 
 (2) Please issue a certificate or certificates representing the Shares in the
following name: 
  

			
	Name	 	Address
		 	  

	  
	 	  

 (3) The undersigned represents that: (i) the Shares are being acquired for the account of the
undersigned for investment purposes only and not with a view to, or for resale in connection with, the distribution thereof, and the undersigned has no present intention of distributing or reselling the Shares; (ii) the undersigned 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 regarding the undersigned’s investment in the Company; (iii) the
undersigned is experienced in making investments of this type and has such knowledge and background in financial and business maters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the
undersigned’s own interests; (iv) the undersigned understands that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from the registration
provisions of the Securities Act (which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein) and, because the Shares have not been registered under the Securities Act, they may not be sold or
transferred by the undersigned unless so registered or an exemption from such registration is available and the Company has received an opinion to that effect from counsel reasonably satisfactory to the Company; (v) the undersigned is aware
that the Shares may not be sold pursuant to Rule 144 adopted under the Securities Act (the “Rule”) unless certain conditions are met and until the undersigned has held the Shares for the time period prescribed by the Rule and that
among the conditions for use of the Rule is the availability to the public of current information about the Company; and (vi) the undersigned is an “accredited investor” as such term is defined in Rule 501 promulgated pursuant to the
Securities Act. 
  

							
	Date:                     	 	 [NAME OF UNDERSIGNED]

			
		 		 	  

		 		 	By:	 	  

		 		 	Its:	 	  

  

 6

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