EXHIBIT 10.62

AMENDMENT TO AMENDMENT AND FORBEARANCE

This AMENDMENT TO AMENDMENT AND FORBEARANCE (“Amendment”) to is entered into as
of December 12, 2008 by and between LSQ Funding Group, L.C. and BRE LLC
(collectively, “Lender”), and Tri-S Security Corporation (“TSS”), Paragon
Systems, Inc. (“Paragon”), The Cornwall Group, Inc., Vanguard Security, Inc.,
Forestville Corporation, Vanguard Security of Broward County, Inc., On Guard
Security and Investigations, Inc., Armor Security, Inc. (“Armor”), Protection
Technologies Corporation, International Monitoring, Inc., Guardsource Corp. and
Virtual Guard Source, Inc. (collectively, “Borrower”).

WHEREAS, Lender and Borrower have, entered into that certain AMENDMENT AND
FORBEARANCE AGREEMENT, dated March 26, 2008 (“Forbearance Agreement “);

WHEREAS, Borrower has requested that Lender extend the terms of the Forbearance
Agreement from the date hereof through the earlier of January 1, 2010, or the
occurrence of an Event of Default other than an Existing Default (the
“Forbearance Period”); and

WHEREAS, all capitalized terms used herein and not otherwise defined herein are
as defined in the Forbearance Agreement

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, and intending to be legally bound, the parties hereto agree as
follows:

1. Agreement. The Forbearance Period is hereby extended until the earlier of
January 1, 2010, or the occurrence of an Event of Default other than an Existing
Default.

2. Representations and Warranties. To induce Lender to enter into this
Amendment, Borrower hereby reconfirms all of the representations and warranties
made in the Forbearance Agreement, as of and after giving effect to this
Amendment.

3. Prior Agreement. The Loan Documents are hereby ratified and reaffirmed and
shall remain in full force and effect. The Forbearance Agreement and this
Amendment (“Modifications”) do not constitute a novation and the terms and
conditions of the Modifications shall be in addition to and supplemental to all
terms and conditions set forth in the Loan Documents. In the event of any
conflict or inconsistency between the Modifications and the terms of the Loan
Documents, the terms of the Modifications shall be controlling.

4. Release by Borrower.

4.1 FOR GOOD AND VALUABLE CONSIDERATION, Borrower hereby forever relieves,
releases, and discharges Lender and its present or former employees, officers,
directors, agents, representatives, attorneys, and each of them, from any and
all claims, debts, liabilities, demands, obligations, promises, acts,
agreements, costs and expenses, actions and

 

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causes of action, of every type, kind, nature, description or character
whatsoever, whether known or unknown, suspected or unsuspected, absolute or
contingent, arising out of or in any manner whatsoever connected with or related
to facts, circumstances, issues, controversies or claims existing or arising
from the beginning of time through and including the date of execution of this
Amendment (collectively “Released Claims”). Without limiting the foregoing, the
Released Claims shall include any and all liabilities or claims arising out of
or in any manner whatsoever connected with or related to the Loan Documents, the
Recitals hereto, any instruments, agreements or documents executed in connection
with any of the foregoing or the origination, negotiation, administration,
servicing and/or enforcement of any of the foregoing.

4.2 In furtherance of this release, Borrower expressly acknowledges and waives
any and all rights under Section 1542 of the California Civil Code, or any
equivalent statute or rule that may be applicable, which provides as follows:

“A general release does not extend to claims which the creditor does not know or
expect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor.”
(Emphasis added.)

4.3 By entering into this release, Borrower recognizes that no facts or
representations are ever absolutely certain and it may hereafter discover facts
in addition to or different from those which it presently knows or believes to
be true, but that it is the intention of Borrower hereby to fully, finally and
forever settle and release all matters, disputes and differences, known or
unknown, suspected or unsuspected; accordingly, if Borrower should subsequently
discover that any fact that it relied upon in entering into this release was
untrue, or that any understanding of the facts was incorrect, Borrower shall not
be entitled to set aside this release by reason thereof, regardless of any claim
of mistake of fact or law or any other circumstances whatsoever. Borrower
acknowledges that it is not relying upon and has not relied upon any
representation or statement made by Lender with respect to the facts underlying
this release or with regard to any of such party’s rights or asserted rights.

4.4 This release may be pleaded as a full and complete defense and/or as a
cross-complaint or counterclaim against any action, suit, or other proceeding
that may be instituted, prosecuted or attempted in breach of this release.
Borrower acknowledges that the release contained herein constitutes a material
inducement to Lender to enter into this Amendment, and that Lender would not
have done so but for Lender’s expectation that such release is valid and
enforceable in all events.

4.5 Borrower hereby represents and warrants to Lender, and Lender is relying
thereon, as follows:

(a) Except as expressly stated in this Amendment, neither Lender nor any agent,
employee or representative of Lender has made any statement or representation to
Borrower regarding any fact relied upon by Borrower in entering into this
Amendment.

(b) Borrower has made such investigation of the facts pertaining to this
Amendment and all of the matters appertaining thereto, as it deems necessary.

 

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(c) The terms of this Amendment are contractual and not a mere recital.

(d) This Amendment has been carefully read by Borrower, the contents hereof are
known and understood by Borrower, and is signed freely, and without duress, by
Borrower.

(e) Borrower represents and warrants that it is the sole and lawful owner of all
right, title and interest in and to every claim and every other matter which it
releases herein, and that it has not heretofore assigned or transferred, or
purported to assign or transfer, to any person, firm or entity any claims or
other matters herein released. Borrower shall indemnify Lender, defend and hold
it harmless from and against all claims based upon or arising in connection with
prior assignments or purported assignments or transfers of any claims or matters
released herein.

5. Counterparts. This Agreement may be executed in any number of counterparts
and all of such counterparts taken together shall be deemed to constitute one
and the same instrument.

6. Effectiveness. This Amendment shall be deemed effective upon (a) the due
execution and delivery to Lender of this Amendment by each party hereto,
(b) Borrower’s payment of all legal fees and costs in connection with this
Amendment which are outstanding, and (c) Lender’s receipt of the Acknowledgment
of Forbearance and Reaffirmation of Guaranty substantially in the form attached
hereto.

7. Governing Law. This Amendment and the rights and obligations of the parties
hereto shall be governed by and construed in accordance with the laws of the
State of Florida.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

 

  BORROWER:   TRI-S SECURITY CORPORATION   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  PARAGON SYSTEMS, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

 

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  THE CORNWALL GROUP, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  VANGUARD SECURITY, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  FORESTVILLE CORPORATION   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  VANGUARD SECURITY OF BROWARD COUNTY, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

 

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  ON GUARD SECURITY AND INVESTIGATIONS, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  ARMOR SECURITY, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  PROTECTION TECHNOLOGIES CORPORATION   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  INTERNATIONAL MONITORING, INC.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

 

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  GUARDSOURCE CORP.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

 

VIRTUAL GUARD SOURCE CORP.

  By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

LENDER:

  LSQ FUNDING GROUP, L.C.   By:  

/s/ A. Maxwell Eliscu

  Name:  

A. Maxwell Eliscu

  Title:  

Manager

 

BRE LLC

  By  

/s/ A. Maxwell Eliscu

  Name:  

A. Maxwell Eliscu

  Title:  

Manager

 

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ACKNOWLEDGMENT OF FORBEARANCE

AND REAFFIRMATION OF GUARANTY

Section 1. Guarantor hereby acknowledges and confirms that it has reviewed and
approved the terms and conditions of the Amendment and Forbearance, as amended
(the “Forbearance”).

Section 2. Guarantor hereby consents to the Forbearance and agrees that the
Guaranty relating to the Obligations of Borrower under the Loan Documents shall
continue in full force and effect, shall be valid and enforceable and shall not
be impaired or otherwise affected by the execution of the Forbearance or any
other document or instrument delivered in connection herewith.

Section 3. Guarantor represents and warrants that, after giving effect to the
Forbearance, all representations and warranties contained in the Guaranty are
true, accurate and complete as if made the date hereof.

Dated as of December     , 2008.

 

GUARANTOR: TRI-S SECURITY CORPORATION By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

PARAGON SYSTEMS, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

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THE CORNWALL GROUP, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

VANGUARD SECURITY, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

FORESTVILLE CORPORATION By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

VANGUARD SECURITY OF BROWARD COUNTY, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

 

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ON GUARD SECURITY AND INVESTIGATIONS, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

ARMOR SECURITY, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

PROTECTION TECHNOLOGIES CORPORATION By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

INTERNATIONAL MONITORING, INC. By:  

/s/ R.G. Farrell

Name:  

R.G. Farrell

Title:  

Chairman / CEO

 

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  GUARDSOURCE CORP.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

  VIRTUAL GUARD SOURCE CORP.   By:  

/s/ R.G. Farrell

  Name:  

R.G. Farrell

  Title:  

Chairman / CEO

LENDER:   LSQ FUNDING GROUP, L.C.   By:  

/s/ A. Maxwell Eliscu

  Name:  

Maxwell Eliscu

  Title:  

Manager

  BRE LLC   By:  

/s/ A. Maxwell Eliscu

  Name:  

Max Eliscu

  Title:  

Manager

 

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The undersigned hereby consent to the AMENDMENT TO AMENDMENT AND FORBEARANCE as
of the date thereof.

 

LENDERS FUNDING, LLC,

a New York limited liability company

By:  

/s/ Robert A. Zadek

  Robert A. Zadek, Manager

CRESTMARK COMMERCIAL CAPITAL LENDING LLC,

a Michigan limited liability company

By:  

/s/ Jack Talkington

Name:   Jack Talkington Title:   Chief Financial Officer GULF COAST BANK AND
TRUST CO. By:  

/s/ Allen E. Frederic Jr.

Name:   Allen E. Frederic Jr. Title:   President

 

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