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                                WARRANT AGREEMENT

                            Dated as of June 27, 2005

                                     Between

                                iSecureTrac Corp.

                                       and

                                 Mykonos 6420 LP

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<PAGE>
                                WARRANT AGREEMENT

            WARRANT  AGREEMENT  (the  "Agreement"),  dated as of June 27,  2005,
between iSecureTrac Corp., a Delaware  corporation (the "Company"),  and Mykonos
6420 LP, a Texas limited partnership (the "Investor").

                                    RECITALS

            WHEREAS,  the Company  proposes to issue to the Investor a series of
warrants, as hereinafter described (the "Warrants"), to purchase an aggregate of
32,342,315 shares (subject to adjustment), of the Common Stock, $0.001 par value
per  share  (the  "Common  Stock")  of the  Company,  pursuant  to that  certain
Securities  Purchase  Agreement,  dated as of June 21, 2005, between the Company
and the Investor (the "Purchase Agreement").  All capitalized terms used but not
defined  herein  shall  have  the  meanings  ascribed  to them  in the  Purchase
Agreement.

                                    AGREEMENT

            NOW  THEREFORE,  in  consideration  of the  premises  and the mutual
agreements herein set forth, the parties hereto agree as follows:

            SECTION 1. Warrant Certificate. The Company will issue and deliver a
certificate  evidencing the Warrants (the "Warrant Certificate") to the Investor
pursuant  to the  terms of the  Purchase  Agreement.  Warrants  to  purchase  an
aggregate  of  32,342,315  shares of Common  Stock  will be issued as  "Series B
Warrants" in the form of Exhibit A hereto. The Warrant Certificate may have such
notations, legends and endorsements as required by law, rules and regulations of
applicable  stock exchanges or usage.  Such  certificate  shall be in registered
form only and shall be dated the date of issuance by the Company.

            SECTION 2. Execution of Warrant Certificate. The Warrant Certificate
shall be signed on behalf of the  Company  by its  Chairman  of the Board or its
Chief Executive Officer, President or a Vice President. Each such signature upon
the  Warrant  Certificate  may be in the form of a  facsimile  signature  of the
present or any future Chairman of the Board, Chief Executive Officer,  President
or Vice President,  and may be imprinted or otherwise  reproduced on the Warrant
Certificate  and for that  purpose the  Company may adopt and use the  facsimile
signature  of any  person  who shall  have been  Chairman  of the  Board,  Chief
Executive Officer, President or Vice President, notwithstanding the fact that at
the time the Warrant Certificate shall be delivered or disposed of he shall have
ceased to hold such  office.  The  Warrant  Certificate  shall also be  manually
signed on behalf of the Company by its Secretary or an Assistant Secretary under
its  corporate  seal.  The seal of the Company may be in the form of a facsimile
thereof and may be impressed,  affixed, imprinted or otherwise reproduced on the
Warrant Certificate.

            SECTION 3.  Registration.  The Company shall number and register the
Warrant  Certificate  in a register when it is issued.  The Company may deem and
treat the  registered  holder(s)  of the  Warrant  Certificate  as the  absolute
owner(s)  thereof  (notwithstanding  any notation of ownership or other  writing
thereon made by anyone) for all purposes and shall not be affected by any notice
to the contrary.  The Warrants shall be registered  initially in the name of the
Investor.

                                       2
<PAGE>

            SECTION 4. Warrants;  Exercise of Warrants.  Subject to the terms of
this  Agreement,  there  shall be a total of 213  Warrants  numbered  1-213 (the
"Numbered Warrants") with each Numbered Warrant being exercisable for the number
of fully paid and  nonassesable  shares of Common Stock of the Company set forth
on Schedule A for such Numbered Warrant (the  "Applicable  Warrant Shares") upon
payment of the aggregate  Applicable Exercise Price (as hereinafter defined) for
such Numbered  Warrant at any time, or from time to time,  during the Applicable
Exercise Period (as hereinafter defined). The Applicable Exercise Period for any
Numbered  Warrant shall commence on the exercise date for such Numbered  Warrant
set forth on  Schedule A and shall  expire at 5:00 p.m.,  New York time on March
1st of the year  following  the calendar  year of the  expiration  date for such
Numbered Warrant as set forth on Schedule A (the "Applicable  Exercise Period").
The per share Applicable Exercise Price for any Numbered Warrant shall initially
be the  exercise  price for such  Numbered  Warrant set forth on Schedule A (the
"Applicable  Exercise  Price"),  subject  to  adjustment  pursuant  to the terms
hereof.

            A Numbered  Warrant may be exercised  upon  surrender to the Company
(at  its  office  address  set  forth  in  Section  11  hereof)  of the  Warrant
Certificate  to be  exercised  with the form of election  to  purchase  attached
thereto  duly  filled in and  signed,  and upon  payment  to the  Company of the
Applicable Exercise Price for the number of Applicable Warrant Shares in respect
of which such  Numbered  Warrant  is then  exercised.  Payment of the  aggregate
Applicable Exercise Price shall be made in cash or by certified or official bank
check  payable to the order of the Company or by wire  transfer  of  immediately
available funds to an account designated by the Company.

            Subject to the  provisions of Section 6 hereof,  upon such surrender
of the Warrant  Certificate  and payment of the  aggregate  Applicable  Exercise
Price for the  Numbered  Warrant to be  exercised,  the Company  shall issue and
cause to be delivered with all reasonable  dispatch to or upon the written order
of the  Investor  and in such  name or names as the  Investor  may  designate  a
certificate for the number of full  Applicable  Warrant Shares issuable upon the
exercise  of such  Numbered  Warrant  (and such  other  consideration  as may be
deliverable  upon  exercise of such  Numbered  Warrant)  together  with cash for
fractional  Applicable Warrant Shares as provided in Section 9. Such certificate
shall be deemed to have been  issued  and the person so named  therein  shall be
deemed to have become a holder of record of such Applicable Warrant Shares as of
the  date of the  surrender  of such  Warrant  Certificate  and  payment  of the
aggregate  Applicable  Exercise  Price,  irrespective of the date of delivery of
such certificate for Applicable Warrant Shares.

            Each Numbered  Warrant shall be  exercisable  during the  Applicable
Exercise  Period  for such  Numbered  Warrant  set forth on  Schedule  A, at the
election  of the  Investor,  either in full or from time to time in part and, in
the event that a Numbered  Warrant is  exercised in respect of fewer than all of
the Applicable Warrant Shares issuable on such exercise at any time prior to the
date of  expiration of the Numbered  Warrant,  a new  certificate  and a revised
Schedule A evidencing the remaining Applicable Warrant Shares will be issued and
delivered pursuant to the provisions of this Section and Section 2 hereof.

                                       3
<PAGE>

            If all  of  the  213  Warrants  have  been  exercised,  the  Warrant
Certificate shall be cancelled and disposed of by the Company. The Company shall
keep  copies of this  Agreement  and any  notices  given or  received  hereunder
available for  inspection by the Investor  during normal  business  hours at its
office.

            SECTION 5. Payment of Taxes.  The Company  will pay all  documentary
stamp taxes and other governmental  charges  (excluding all foreign,  federal or
state income, franchise,  property, estate, inheritance,  gift or similar taxes)
in  connection  with  the  issuance  or  delivery  of  the  Warrant  Certificate
hereunder,  as well as all such taxes  attributable  to the initial  issuance or
delivery of Applicable  Warrant Shares upon the exercise of Warrants and payment
of the aggregate  Applicable  Exercise Price. The Company shall not, however, be
required  to pay any tax  that  may be  payable  in  respect  of any  subsequent
transfer of the Warrants or any  transfer  involved in the issuance and delivery
of Applicable  Warrant Shares in a name other than that in which the Warrants to
which  such  issuance  relates  were  registered,  and,  if any such  tax  would
otherwise be payable by the Company,  no such issuance or delivery shall be made
unless and until the person requesting such issuance has paid to the Company the
amount of any such tax, or it is, established to the reasonable  satisfaction of
the Company that any such tax has been paid.

            SECTION 6. Mutilated or Missing Warrant Certificate.  If any Warrant
Certificate  or  certificate  evidencing  Applicable  Warrant  Shares  shall  be
mutilated,  lost, stolen or destroyed,  the Company shall issue, in exchange and
substitution   therefore  and  upon   cancellation  of  the  mutilated   Warrant
Certificate or other certificate, or in lieu of and substitution for the Warrant
Certificate  or other  certificate  lost,  stolen or  destroyed,  a new  Warrant
Certificate or other  certificate of like tenor and  representing  an equivalent
number of Applicable Warrant Shares.

            SECTION 7.  Reservation of Warrant Shares.  The Company shall at all
times  reserve  and keep  available,  free from  preemptive  rights,  out of the
aggregate  of  its  authorized  but  unissued  shares  of  Common  Stock  or its
authorized  and  issued  shares of Common  Stock held in its  treasury,  for the
purpose of enabling it to satisfy any obligation to issue the Applicable Warrant
Shares upon  exercise of the  Warrants,  the maximum  number of shares of Common
Stock  which  may then be  deliverable  upon  the  exercise  of all  outstanding
Warrants.

            If on any date, the number of authorized but unissued (and otherwise
unreserved)  shares of Common  Stock is less than the amount  required to enable
the Company to satisfy any  obligation to issue the Warrant Shares upon exercise
of the  Warrants,  then the  Company  shall  use its best  efforts  to amend its
certificate of  incorporation  to increase the number of authorized but unissued
shares  of  Common  Stock to enable it to  fulfill  such  obligation  as soon as
possible and, in any event, no later than the 75th day after such date.

            The  Company or, if  appointed,  the  transfer  agent for the Common
Stock and each  transfer  agent for any shares of the  Company's  capital  stock
issuable upon the exercise of any of the Warrants  (collectively,  the "Transfer
Agent") will be irrevocably authorized and directed at all times to reserve such
number of authorized  shares as shall be required for such purpose.  The Company
shall keep a copy of this Agreement on file with the Transfer Agent. The Company
will  supply  the  Transfer  Agent  with a duly  executed  certificate  for such
purposes and will provide or otherwise  make  available all other  consideration
that may be deliverable upon exercise of the Warrants.  The Company will furnish
such Transfer Agent a copy of all notices of adjustments and certificate related
thereto, transmitted to the Investor pursuant to Section 11 hereof.

                                       4
<PAGE>

            Before taking any action which would cause an adjustment pursuant to
Section 8 hereof to reduce the per share  Applicable  Exercise  Price  below the
then par value of an  Applicable  Warrant  Share,  the  Company  shall  take any
corporate action which may, in the opinion of its counsel, be necessary in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Applicable Warrant Shares at the Applicable Exercise Price as so adjusted.

            The Company  covenants  that all the  Applicable  Warrant Shares and
other capital stock issued upon exercise of the Warrants  will,  upon payment of
the Applicable  Exercise Price  therefore and issue,  be validly  authorized and
issued, fully paid,  nonassessable,  free of preemptive rights and free from all
taxes, liens, charges and security interests with respect to the issue thereof.

            The  Company  shall from time to time take all  action  which may be
necessary or appropriate  so that the Common Stock  issuable upon  conversion of
the  Applicable  Warrant Shares  following an exercise of the Warrants,  will be
listed on the  principal  securities  exchanges  and  markets  within the United
States of America,  if any,  on which  other  shares of the same class of Common
Stock of the Company are then listed.

            SECTION 8. Adjustment of Exercise Price and Number of Warrant Shares
Issuable.  The Applicable  Exercise  Price and the number of Applicable  Warrant
Shares issuable upon the exercise of each Numbered Warrant set forth in Schedule
A (the "Applicable  Warrant Number") are subject to adjustment from time to time
upon the occurrence of the events  enumerated  in, or as otherwise  provided in,
this Section 8.

                  (a) Adjustment for Change in Capital Stock

            If the Company:

                        (1)  pays a  dividend  or  makes a  distribution  on its
                  Common Stock in shares of its Common Stock;

                        (2) subdivides or reclassifies its outstanding shares of
                  Common Stock into a greater number of shares;

                        (3) combines or reclassifies  its outstanding  shares of
                  Common Stock into a smaller number of shares;

                        (4) makes a  distribution  on its Common Stock in shares
                  of its capital stock other than Common Stock; or

                        (5) issues by  reclassification  of its Common Stock any
                  shares of its capital stock;

                                       5
<PAGE>

then the Applicable  Exercise Price in effect  immediately  prior to such action
shall be  proportionately  adjusted so that the holder of any  Numbered  Warrant
thereafter  exercised  may  receive the  aggregate  number and kind of shares of
capital  stock  of the  Company  which  he or it would  have  owned  immediately
following such action if such Numbered  Warrant had been  exercised  immediately
prior to such action.

            The adjustment shall become effective  immediately  after the record
date in the  case of a  dividend  or  distribution  and  immediately  after  the
effective date in the case of a subdivision, combination or reclassification.

            If after an adjustment a holder of a Numbered  Warrant upon exercise
of it may receive shares of two or more classes of capital stock of the Company,
the Company shall determine the allocation of the adjusted  Applicable  Exercise
Price between the classes of capital stock. After such allocation,  the exercise
privilege and the Applicable Exercise Price of each class of capital stock shall
thereafter be subject to adjustment on terms  comparable to those  applicable to
Common Stock in this Section 8.

            Such adjustment shall be made successively whenever any event listed
above shall occur.  If the  occurrence  of any event listed above  results in an
adjustment  under  subsections (b) or (c) below, no further  adjustment shall be
made under this subsection (a).

(b)   Adjustment for Rights Issue

            If the Company distributes any rights,  options or warrants (whether
or not  immediately  exercisable)  to all holders of its Common Stock  entitling
them to  purchase  shares  of Common  Stock at a price  per share  less than the
Current  Market Value per share within 60 days after the record date relating to
such distribution, the Applicable Exercise Price shall be adjusted in accordance
with the formula:

                                         O + N x P
                                            ------
                              E' = E x         M
                                         ---------
                                           O + N

where:

            E' =  the adjusted Applicable Exercise Price.

            E  =  the then current Applicable Exercise Price.

            O  =  the  number of shares of  Common  Stock  outstanding  on the
                  record date for any such distribution.

            N  =  the number of  additional  shares of Common  Stock  issuable
                  upon exercise of such rights, options or warrants.

            P  =  the  exercise  price per share of such  rights,  options  or
                  warrants.

            M  =  the Current  Market  Value per share of Common  Stock on the
                  record date for any such distribution.

                                       6
<PAGE>

            The adjustment shall be made successively  whenever any such rights,
options or warrants are issued and shall become effective  immediately after the
record  date for the  determination  of  stockholders  entitled  to receive  the
rights,  options  or  warrants.  If at the end of the period  during  which such
rights, options or warrants are exercisable, not all rights, options or warrants
shall have been  exercised,  the Applicable  Exercise Price shall be immediately
readjusted  to what it would have been if "N" in the above  formula had been the
number of shares  actually  issued.  No adjustment  shall be required under this
subsection  (b) if at the time of such  distribution  the Company makes the same
distribution  to holders of  Warrants as it makes to holders of shares of Common
Stock pro rata  based on the  number of  shares of Common  Stock for which  such
Warrants are exercisable (whether or not currently  exercisable).  No adjustment
shall be made pursuant to this  subsection (b) which shall be have the effect of
decreasing the number of Applicable  Warrant Shares purchasable upon exercise of
a Numbered Warrant.

(c)   Adjustment for Other Distributions

            If the Company  distributes  to all holders of its Common  Stock (i)
any evidences of  indebtedness of the Company or any of its  subsidiaries,  (ii)
any cash or other assets of the Company or any of its subsidiaries, (iii) shares
of its capital  stock or any other  properties or securities or (iv) any rights,
options or  warrants  to acquire  any of the  foregoing  or to acquire any other
securities of the Company (the items described in the foregoing clauses (i)-(iv)
being collectively referred to as the "Consideration"),  the Applicable Exercise
Price  for each  Numbered  Warrant  shall be  adjusted  in  accordance  with the
formula:

                              E' = E x M - F
                                       -----
                                         M

where:

            E' =  the adjusted Applicable Exercise Price.

            E  =  the then current Applicable Exercise Price.

            M  =  the Current  Market  Value per share of Common  Stock on the
                  record date mentioned below.

            F  =  the fair market value on the record date mentioned  below of
                  the Consideration  distributable to the holder of one share of
                  Common Stock.

            The  adjustment  shall  be  made  successively   whenever  any  such
distribution  is made and shall become  effective  immediately  after the record
date for the determination of stockholders entitled to receive the distribution.
If an  adjustment  is made  pursuant to this  subsection  (c) as a result of the
issuance  of rights,  options or  warrants  and at the end of the period  during
which any such rights, options or warrants are exercisable, not all such rights,
options or warrants shall have been  exercised,  the  Applicable  Exercise Price
shall be  immediately  readjusted  as if "F" in the above  formula  was the fair

                                       7
<PAGE>

market  value  on  the  record  date  of the  indebtedness  or  assets  actually
distributed  upon  exercise of such rights,  options or warrants  divided by the
number of shares of Common Stock  outstanding  on the record date. No adjustment
shall be required under this subsection (c) if at the time of such  distribution
the Company  makes the same  distribution  to holders of Warrants as it makes to
holders  of  shares of Common  Stock pro rata  based on the  number of shares of
Common Stock for which such Warrants are  exercisable  (whether or not currently
exercisable).  No adjustment shall be made pursuant to this subsection (c) which
shall have the effect of  decreasing  the number of  Applicable  Warrant  Shares
purchasable upon exercise of any Numbered Warrant.

            This  subsection does not apply to any  distribution  referred to in
subsection (a) of this Section 9 or to rights,  options or warrants  referred to
in subsection (b) of this Section 9.

                  (d) Current Market Value

            "Current  Market  Value"  per share of Common  Stock or of any other
security (herein collectively referred to as a "Security") at any date shall be:

                        (1) if the  Security is  registered  under the  Exchange
                  Act, the average of the daily Market  Prices for each business
                  day during the period  commencing 15 business days before such
                  date and  ending on the date one day prior to such date or, if
                  the  Security has been  registered  under the Exchange Act for
                  less than 15 consecutive  business days before such date, then
                  the average of the daily Market Prices for all of the business
                  days  before  such  date for which  daily  Market  Prices  are
                  available.  If the  Market  Price is not  determinable  for at
                  least 10 business  days in such  period,  the  Current  Market
                  Value of the Security  shall be  determined as if the Security
                  was not registered under the Exchange Act; or

                        (2)  if  the  Security  is  not  registered   under  the
                  Securities  Exchange Act of 1934,  as amended  (the  "Exchange
                  Act"), (i) the value of the Security  determined in good faith
                  by the Board of  Directors  of the Company and  certified in a
                  board resolution,  based on the most recently  completed arm's
                  length transaction between the Company and a person other than
                  an  Affiliate  of the Company in which such  determination  is
                  necessary  and the  closing  of which  occurs  on such date or
                  shall have occurred within the six months preceding such date,
                  (ii) if no such  transaction  shall have occurred on such date
                  or within such  six-month  period,  the value of the  Security
                  most  recently  determined  as of a date within the six months
                  preceding  such  date by an  Independent  Financial  Expert or
                  (iii) if neither clause (i) nor (ii) is applicable,  the value
                  of the Security  determined as of such date by an  Independent
                  Financial Expert.

            The "Market Price" for any Security on each business day means:  (A)
if such  Security is listed or admitted to trading on any  securities  exchange,
the closing price,  regular way, on such day on the principal  exchange on which
such  Security is traded,  or if no sale takes place on such day, the average of
the closing bid and asked prices on such day,  (B) if such  Security is not then
listed or admitted to trading on any securities exchange, the last reported sale
price on such day, or if there is no such last  reported sale price on such day,
the average of the closing bid and the asked  prices on such day, as reported by

                                       8
<PAGE>

a reputable quotation source designated by the Company, or (C) if neither clause
(A) nor (B) is  applicable,  the average of the reported  high bid and low asked
prices on such day, as reported by a reputable quotation service, or a newspaper
of  general  circulation  in  the  Borough  of  Manhattan,  City  of  New  York,
customarily  published on each business day, designated by the Company. If there
are no such  prices  on a  business  day,  then the  Market  Price  shall not be
determinable for such business day.

            "Independent  Financial  Expert" shall mean a nationally  recognized
investment  banking firm designated by the Company and reasonably  acceptable to
the Investor (i) that does not (and whose  directors,  officers,  employees  and
Affiliates do not) have a direct or indirect material  financial interest in the
Company,  (ii) that has not been, and, at the time it is called upon to serve as
an Independent  Financial  Expert under this Agreement is not (and none of whose
directors, officers, employees or Affiliates is) a promoter, director or officer
of the Company, (iii) that has not been retained by the Company, the Investor or
an Affiliate  of the  Investor for any purpose,  other than to perform an equity
valuation,  within the preceding twelve months, and (iv) that, in the reasonable
judgment of the Board of  Directors of the  Company,  is otherwise  qualified to
serve as an independent financial advisor. Any such person may receive customary
compensation  and  indemnification  by the Company  for  opinions or services it
provides as an Independent Financial Expert.

            "Affiliate" shall mean, with respect to any person, any other person
directly or indirectly  controlling or controlled by or under direct or indirect
common control with such person. For the purposes of this definition, "control,"
when used with respect to any person,  means the power to direct the  management
and  policies  of such  person,  directly  or  indirectly,  whether  through the
ownership  of  voting  securities,  by  contract  or  otherwise;  and the  terms
"controlling" and "controlled" have meanings correlative to the foregoing.

                  (e) When De Minimis Adjustment May Be Deferred

            No adjustment in the  Applicable  Exercise Price need be made unless
the  adjustment  would  require an  increase  or  decrease of at least 1% in the
Applicable  Exercise Price. No adjustment in the Applicable  Warrant Number need
be made unless the adjustment  would require an increase or decrease of at least
0.5% in the Applicable  Warrant Number.  Any adjustments that are not made shall
be carried forward and taken into account in any subsequent adjustment, provided
that no such  adjustment  shall be deferred  beyond the date on which a Numbered
Warrant is exercised.

            All  calculations  under this Section 8 shall be made to the nearest
1/1000th of a share.

                  (f) When No Adjustment Required

            If an adjustment is made upon the  establishment of a record date or
issuance date for a distribution or issuance  subject to subsections (a), (b) or
(c) hereof and such  distribution  or issuance is  subsequently  cancelled,  the
Applicable  Warrant Number then in effect shall be  readjusted,  effective as of
the date when the Board of Directors determines to cancel such distribution,  to
that which would have been in effect if such record date had not been fixed.

                                       9
<PAGE>

            To  the  extent  the  Warrants  become  convertible  into  cash,  no
adjustment  need be made  thereafter  as to the  amount of cash into  which such
Warrants are exercisable. Interest will not accrue on the cash.

                  (g) Notice of Adjustment

            Whenever the Applicable  Exercise  Price or the  Applicable  Warrant
Number is adjusted, the Company shall provide the notices required by Section 11
hereof.

                  (h) When Issuance or Payment May Be Deferred

            In any case in which this Section 8 shall require that an adjustment
in the Applicable Exercise Price and Applicable Warrant Number be made effective
as of a record date for a specified  event, the Company may elect to defer until
the occurrence of such event (i) issuing to the Investor of any Numbered Warrant
exercised after such record date the Applicable Warrant Shares and other capital
stock of the Company,  if any,  issuable  upon such  exercise over and above the
Applicable  Warrant  Shares  and other  capital  stock of the  Company,  if any,
issuable upon such exercise on the basis of the Applicable  Warrant Number prior
to such  adjustment,  and (ii) paying to the Investor any amount in cash in lieu
of a fractional share pursuant to Section 9; provided, however, that the Company
shall  deliver  to the  Investor  a due  bill or  other  appropriate  instrument
evidencing the Investor's  right to receive such additional  Applicable  Warrant
Shares,  other capital stock and cash upon the occurrence of the event requiring
such adjustment.

                  (i) Reorganizations

            In case  of any  capital  reorganization,  other  than in the  cases
referred to in Sections 8(a), (b) or (c) hereof,  or the consolidation or merger
of the  Company  with  or into  another  corporation  (other  than a  merger  or
consolidation  which does not result in any  reclassification of the outstanding
shares  of  Common  Stock  into  shares of other  stock or other  securities  or
property)   (collectively   such  actions  being  hereinafter   referred  to  as
"Reorganizations"),  there shall  thereafter be deliverable upon exercise of any
Warrant  (in  lieu  of  the  number  of  shares  of  Common  Stock   theretofore
deliverable)  the number of shares of stock or other  securities  or property to
which a holder of the number of shares of Common Stock that would otherwise have
been deliverable upon the exercise of such Warrant would have been entitled upon
such  Reorganization  if  such  Numbered  Warrant  had  been  exercised  in full
immediately  prior  to  such  Reorganization.  In  case  of any  Reorganization,
appropriate adjustment, as determined in good faith by the Board of Directors of
the Company, whose determination shall be described in a duly adopted resolution
certified by the Company's  Secretary or Assistant  Secretary,  shall be made in
the  application of the  provisions  herein set forth with respect to the rights
and  interests  of the  Investor so that the  provisions  set forth herein shall
thereafter be  applicable,  as nearly as possible,  in relation to any shares or
other property thereafter deliverable upon exercise of Warrants.

            The Company shall not effect any such Reorganization unless prior to
or simultaneously  with the consummation  thereof the successor  corporation (if
other than the Company) resulting from such  Reorganization or other appropriate

                                       10
<PAGE>

corporation  or  entity  shall  expressly  assume,  by  a  supplemental  Warrant
Agreement or other acknowledgement  executed and delivered to the Investor,  the
obligation to deliver to the Investor such shares of stock, securities or assets
as, in accordance with the foregoing provisions, the Investor may be entitled to
purchase, and all other obligations and liabilities under this Agreement.

(j)   Adjustment in Number of Shares

            Upon each  adjustment of the  Applicable  Exercise Price pursuant to
this Section 9, each  Numbered  Warrant  outstanding  prior to the making of the
adjustment in the Applicable  Exercise Price shall thereafter evidence the right
to receive upon payment of the adjusted Applicable Exercise Price that number of
shares of Common Stock (calculated to the nearest thousandth)  obtained from the
following formula:

                            N' =  N x E
                                      --
                                      E'

where:

            N' =  the adjustment number of Applicable  Warrant Shares issuable
                  upon exercise of a Numbered Warrant by payment of the adjusted
                  Applicable Exercise Price.

            N  =  the number of Applicable Warrant Shares previously  issuable
                  upon  exercise  of such  Numbered  Warrant  by  payment of the
                  applicable exercise price prior to adjustment.

            E' =  the adjusted Applicable Exercise Price.

            E  =  the Applicable Exercise Price prior to adjustment.

                  (k) Form of Warrants

            Irrespective of any adjustments in the Applicable  Exercise Price or
the number or kind of shares  purchasable  upon the  exercise  of the  Warrants,
Warrants theretofore or thereafter issued may continue to express the same price
and number and kind of shares as are stated in the Warrants  initially  issuable
pursuant to this Agreement.

                  (l) Adjustments in Other Securities

            If as a result of any event or for any other reason,  any adjustment
is made which  increases  the  number of shares of Common  Stock  issuable  upon
conversion,  exercise or exchange of, or in the  conversion or exercise price or
exchange ratio applicable to, any outstanding securities of the Company that are
convertible  into,  or  exercisable  or  exchangeable  for,  Common Stock of the
Company, then a corresponding adjustment shall be made hereunder to increase the
number of shares of Common Stock  issuable upon  exercise of the  Warrants,  but
only to the extent that no such  adjustment  has been made  pursuant to Sections
8(a), (b) or (c) hereof with respect to such event or for such other reason.

                                       11
<PAGE>

                  (m) Tender Offers; Exchange Offers

            In the event that the Company or any subsidiary of the Company shall
purchase  shares of Common Stock pursuant to a tender offer or an exchange offer
for a price per share of Common  Stock  that is  greater  than the then  Current
Market  Value per  share of  shares of Common  Stock in effect at the end of the
trading day immediately following the day on which such tender offer or exchange
offer  expires,  then the Company,  or such  subsidiary  of the Company,  shall,
within (10) business days of the expiry of such tender offer or exchange  offer,
offer to purchase the Warrants for comparable  consideration per share of Common
Stock  based on the number of shares of Common  Stock which the  Investor  would
receive  upon  exercise of such  Warrants  (the  "Offer")  (such amount less the
Applicable   Exercise   Price  in  respect  of  such   share,   the  "Per  Share
Consideration"); provided, however, if a tender offer is made for only a portion
of the  outstanding  shares of Common  Stock,  then such offer shall be made for
such shares of Common Stock  issuable  upon exercise of the Warrants in the same
pro rata proportion;  provided,  further, that the Company shall not be required
to make such an Offer if the Per Share  Consideration is an amount less than the
then-existing Exercise Price per share.

            The Offer shall  remain  open for a period of twenty  (20)  business
days  following  its  commencement  and no longer,  except to the extent  that a
longer period is required by applicable law (the "Offer Period").  No later than
five (5) business days after the  termination of the Offer Period (the "Purchase
Date"),  the Company shall  purchase such Warrants for the  applicable Per Share
Consideration.

                  (n) Other Events

            If any event  shall occur as to which the other  provisions  of this
Section 8 are not  strictly  applicable  but the failure to make any  adjustment
would have the  effect of  depriving  the  Investor  of the  benefit of all or a
portion of the exercise rights in respect of any Numbered  Warrant in accordance
with the essential  intent and  principles of this Section 8, then, in each such
case, the Company shall appoint an  Independent  Financial  Expert,  which shall
give its opinion upon the  adjustment,  if any, on a basis  consistent  with the
essential  intent and  principles  established  in this  Section 8 necessary  to
preserve,  without dilution, such exercise rights. Upon receipt of such opinion,
the Company will promptly mail a copy thereof to the Investor and shall make the
adjustments described therein.

                  (o) Miscellaneous

            For  purpose of this  Section 8 the term  "shares  of Common  Stock"
shall mean (i) shares of any class of stock  designated  as Common  Stock of the
Company at the date of this  Agreement,  and (ii)  shares of any other  class of
stock  resulting  from  successive  changes or  reclassification  of such shares
consisting solely of changes in par value, or from par value to no par value, or
from no par value to par value. In the event that at any time, as a result of an
adjustment  made pursuant to this Section 8, the Investor shall become  entitled
to purchase any  securities of the Company other than, or in addition to, shares
of Common  Stock,  thereafter  the number or amount of such other  securities so
purchasable  upon  exercise  of  each  Numbered  Warrant  shall  be  subject  to
adjustment  from time to time in a manner and on terms as nearly  equivalent  as
practicable  to the  provisions  with respect to the  Applicable  Warrant Shares

                                       12
<PAGE>

contained in subsections (a) through (n) of this Section 8,  inclusive,  and the
provisions  of Sections  4, 5, 7 and 8 with  respect to the  Applicable  Warrant
Shares  or the  Common  Stock  shall  apply  on like  terms  to any  such  other
securities.

            SECTION 9. Fractional  Interests.  The Company shall not be required
to issue fractional  Applicable  Warrant Shares on the exercise of the Warrants.
If more than one Numbered Warrant shall be presented for exercise in full at the
same time by the Investor,  the number of full  Applicable  Warrant Shares which
shall be issuable  upon the exercise  thereof  shall be computed on the basis of
the aggregate number of the Applicable Warrant Shares purchasable on exercise of
the Warrants so presented. If any fraction of an Applicable Warrant Share would,
except for the  provisions of this Section 9, be issuable on the exercise of any
Warrants (or specified portion thereof), the Company shall pay an amount in cash
equal to the fair market value of the  Applicable  Warrant Share so issuable (as
determined  in  good  faith  by the  Board  of  Directors),  multiplied  by such
fraction.

            SECTION 10.  Notices to Investor.  Upon any  adjustment  pursuant to
Section 8 hereof,  the Company shall  promptly  thereafter (i) cause to be filed
with the Company a  certificate  of an officer of the Company  setting forth the
Applicable  Warrant  Number  and  the  Applicable   Exercise  Price  after  such
adjustment and setting forth in reasonable  detail the method of calculation and
the facts upon which such  calculations are based, and (ii) cause to be given to
the Investor notice of such adjustments by first class mail,  postage prepaid to
the address of the Investor set forth in Section 11.

            In case:

                        (a) the  Company  shall  authorize  the  issuance to all
                  holders  of shares  of  Common  Stock of  rights,  options  or
                  warrants to subscribe  for or purchase  shares of Common Stock
                  or of any other subscription rights or warrants; or

                        (b) the Company shall authorize the  distribution to all
                  holders of shares of Common Stock of assets,  including  cash,
                  evidences of its indebtedness, or other securities; or

                        (c) of any  consolidation or merger to which the Company
                  is a party and for which approval of any  shareholders  of the
                  Company is required,  or of the  conveyance or transfer of the
                  properties  and  assets  of the  Company  substantially  as an
                  entirety, or of any reclassification or change of Common Stock
                  issuable upon exercise of the Warrants (other than a change in
                  par value,  or from par value to no par value,  or from no par
                  value  to  par  value,  or as a  result  of a  subdivision  or
                  combination),  or a tender offer or exchange  offer for shares
                  of Common Stock; or

                        (d)  of  the  voluntary  or   involuntary   dissolution,
                  liquidation or winding up of the Company; or

                        (e) the  Company  proposes to take any action that would
                  require an adjustment to the Applicable  Warrant Number or the
                  Applicable Exercise Price pursuant to Section 8 hereof;

                                       13
<PAGE>

then the  Company  shall cause to be given to the  Investor,  at the address set
forth in  Section  11 at  least 20 days  prior  to the  applicable  record  date
hereinafter specified,  or 20 days prior to the date of the event in the case of
events for which there is no record date, by first-class mail,  postage prepaid,
a  written  notice  stating  (i) the date as of which the  holders  of record of
shares of Common  Stock to be  entitled  to receive  any such  rights,  options,
warrants or distribution  are to be determined,  or (ii) the initial  expiration
date set forth in any tender offer or exchange offer for shares of Common Stock,
or (iii) the date on which any such consolidation, merger, conveyance, transfer,
dissolution,  liquidation  or  winding up is  expected  to become  effective  or
consummated,  and the date as of which it is expected  that holders of record of
shares of Common Stock shall be entitled to exchange such shares for  securities
or  other   property,   if  any,   deliverable   upon   such   reclassification,
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding
up. The  failure to give the notice  required  by this  Section 11 or any defect
therein  shall not affect the legality or validity of any  distribution,  right,
option,  warrant,  consolidation,  merger,  conveyance,  transfer,  dissolution,
liquidation or winding up, or the vote upon any action.

            SECTION 11.  Notices to the Company  and  Investor.  All notices and
other  communications  provided for or permitted hereunder shall be made by hand
delivery,   first-class  mail,  telex,  telecopier,  or  overnight  air  courier
guaranteeing next day delivery:

                        (a) if to the Investor, at 5449 Sherry Lane, Suite 1900,
                  Dallas, Texas 75225, Attention: Heather Kreager; and

                        (b) if to the Company,  at 5078 S. 111th Street,  Omaha,
                  NE 68137 Attention: Tom Wharton.

All such notices and communications  shall be deemed to have been duly given: at
the time  delivered by hand,  if  personally  delivered;  five (5) business days
after being deposited in the mail,  postage  prepaid,  if mailed;  when answered
back if telexed; when receipt acknowledged, if telecopied; and the next business
day after  timely  delivery to the  courier,  if sent by  overnight  air courier
guaranteeing  next day  delivery.  The parties may change the addresses to which
notices  are to be given by giving  five days'  prior  notice of such  change in
accordance herewith.

      SECTION 12.  Restrictions  on  Transfer;  Registration  of  Transfers  and
Exchanges. The Warrants (and any shares of Common Stock issued upon the exercise
of the Warrants) shall not be  transferable  except in accordance with the terms
of this Agreement.

            Prior to any  proposed  transfer  of the  Warrants  or the shares of
Common Stock issued upon exercise of the Warrants,  the Investor will deliver to
the  Company a  Certificate  of  Transfer  in the form  attached  to the Warrant
Certificate and, if so requested by the Company, such other information relating
to the proposed  transfer and the  identity of the  proposed  transferee  as the
Company may  reasonably  request in order to confirm that the Warrants or shares
of Common Stock,  as  applicable,  may be sold or otherwise  transferred  in the
manner proposed. Upon original issuance thereof, and until such time as the same
shall have been registered under the Securities Act or sold pursuant to Rule 144
promulgated   thereunder  (or  any  similar  rule  or  regulation)  the  Warrant
Certificate and any certificates  evidencing  shares of Common Stock issued upon
exercise of the Warrants shall bear the following legend unless,  in the opinion
of qualified counsel, such legend is no longer required by the Securities Act:

                                       14
<PAGE>

            THE SECURITIES  EVIDENCED BY THIS  CERTIFICATE  HAVE NOT
            BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AS
            AMENDED,  AND HAVE BEEN ACQUIRED FOR  INVESTMENT AND NOT
            WITH A VIEW  TO,  OR IN  CONNECTION  WITH,  THE  SALE OR
            DISTRIBUTION  THEREOF. SUCH SECURITIES GENERALLY MAY NOT
            BE  SOLD  OR   TRANSFERRED   IN  THE   ABSENCE  OF  SUCH
            REGISTRATION OR PURSUANT TO AN APPLICABLE EXEMPTION FROM
            THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF
            SAID ACT.

            The Company  shall from time to time  register  the  transfer of any
outstanding  Warrant  Certificate in a Warrant  register to be maintained by the
Company  upon  surrender  thereof   accompanied  by  a  written   instrument  or
instruments of transfer in form  satisfactory  to the Company,  duly executed by
the Investor or by the duly appointed legal representative  thereof or by a duly
authorized  attorney.  Upon any such  registration  of  transfer,  a new Warrant
Certificate  shall be issued to the  transferee(s)  and the surrendered  Warrant
Certificate shall be canceled and disposed of by the Company.

            The  Warrant  Certificate  may be  exchanged  at the  option  of the
Investor,  when  surrendered  to the Company at its office for  another  Warrant
Certificate  or  other  Warrant   Certificate  of  like  series  and  tenor  and
representing  in the  aggregate a like number of Warrants.  Warrant  Certificate
surrendered for exchange shall be canceled and disposed of by the Company.

            SECTION 13. Supplements and Amendments. The Company may from time to
time supplement or amend this Agreement  without the approval of the Investor in
order to cure any ambiguity or to correct or supplement any provision  contained
herein which may be defective or inconsistent  with any other provision  herein,
or to make any other  provisions  in  regard to  matters  or  questions  arising
hereunder  which the Company may deem necessary or desirable and which shall not
in any way  adversely  affect the  interests  of the  Investor.  An amendment or
supplement to this Warrant  Agreement that has an adverse effect on the Investor
shall require the written consent of the Investor.

            SECTION 14. Successors and Assigns. All the covenants and provisions
of this  Agreement by or for the benefit of the Company  shall bind and inure to
the benefit of its respective successors and assigns hereunder.

            SECTION 15.  Termination.  This Agreement  shall  terminate when all
Warrants have been exercised or have expired pursuant to this Agreement.

            SECTION  16.  No  Rights  or  Liabilities  as  Stockholder.  Nothing
contained  herein shall be construed as conferring  upon the Investor any rights
as a stockholder of the Company or as imposing any obligation on the Investor to
purchase  any  securities  or as imposing any  liabilities  on the Investor as a
stockholder of the Company,  whether such obligation or liabilities are asserted
by the Company or by creditors of the Company.

                                       15
<PAGE>

            SECTION  17.   Governing   Law.  This  Agreement  and  each  Warrant
Certificate  issued  hereunder  shall be deemed to be a contract  made under the
laws of the State of Texas and for all purposes shall be construed in accordance
with the internal laws of said State.

SECTION  18.  Benefits of This  Agreement.  Nothing in this  Agreement  shall be
construed  to give to any person or  corporation  other than the Company and the
Investor any legal or equitable right, remedy or claim under this Agreement; but
this Agreement shall be for the sole and exclusive  benefit of the Company,  the
Investor and transferees of the Investor.

SECTION 19. Construction;  Interpretation. This Agreement shall not be construed
for or against any party by reason of the  authorship  or alleged  authorship of
any provision hereof or by reason of the status of the respective parties.  This
Agreement  shall  be  construed  reasonably  to  carry  out its  intent  without
presumption against or in favor of any party. The natural persons executing this
Agreement on behalf of each party have the full right, power and authority to do
and  affirm  the  foregoing  warranty  on behalf of each  party and on their own
behalf.  The captions on sections are provided for purposes of  convenience  and
are not intended to limit,  define the scope of or aid in  interpretation of any
of the provisions hereof. All pronouns and singular or plural references as used
herein shall be deemed to have interchangeably  (where the sense of the sentence
requires) a masculine, feminine or neuter, and/or singular or plural meaning, as
the case may be.

SECTION  20.  Counterparts.  This  Agreement  may be  executed  in any number of
counterparts and each of such  counterparts  shall for all purposes be deemed to
be an original,  and all such counterparts shall together constitute but one and
the same instrument.

                            [Signature Page Follows]

                                       16
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed, as of the day and year first above written.

                                    COMPANY:

                                    iSecureTrac Corp., a Delaware corporation

                                    By:
                                       ---------------------------------------
                                    Name:
                                    Title:

                                    INVESTOR:

                                    Mykonos 6420, L.P., a Texas limited
                                    partnership

                                    By:  Sponsor Investments LLC
                                    Its: General Partner

                                    By:  Herakles Investments, Inc.
                                    Its: Manager

                                    By:
                                       ---------------------------------------
                                    Name:
                                   Title:

                                       17COMMON
        STOCK SUBSCRIPTION AGREEMENT

      

      The
        undersigned hereby subscribes for ______________ shares of common stock (the
        “Shares”) of Itec Environmental Group, Inc., a Delaware corporation (the
“Company”). 

      

      The
        undersigned is aware that the Shares have not been registered under the
        Securities Act of 1933, as amended (the “Securities Act”), or any state
        securities laws, in reliance on exemptions from such registration. The
        undersigned understands that reliance by the Company on such exemptions is
        predicated in part upon the truth and accuracy of the statements made by
        the
        undersigned in this Common Stock Subscription Agreement.

      

      The
        undersigned hereby represents and warrants that the undersigned:

      

      (i)  either
        alone or with the assistance of the undersigned’s professional advisors, has
        such knowledge and experience in financial and business matters that the
        undersigned is capable of evaluating the merits and risks of the undersigned’s
        purchase of the Shares;

      

      (ii)  has
        sufficient financial resources to be able to bear the risk of the undersigned’s
        investment in the Shares; 

      

      (iii)  has
        either spoken or met with, or been given reasonable opportunity to speak
        with or
        meet with, representatives of the Company for the purpose of asking questions
        of, and receiving answers and information from, such representatives concerning
        the undersigned’s investment in the Shares; and

      

      (iv)  is
        an
        accredited investor as that term is defined in the Securities Act.

      

      The
        undersigned hereby represents and warrants that the undersigned is purchasing
        the Shares for the undersigned’s own account for investment purposes and not
        with a view toward the sale or distribution of all or any part of the Shares.
        No
        one other than the undersigned has any beneficial interest in the Shares,
        except
        as provided by applicable community property laws.

      

      The
        undersigned understands that because the Shares have not been registered
        under
        the Securities Act, (i) the Shares have the status of securities acquired
        in a
        transaction under Section 4(2) of the Securities Act; and (ii) the Shares
        cannot
        be sold unless the Shares are subsequently registered or an exemption from
        registration is available.

      

      The
        undersigned agrees that the undersigned will in no event sell or distribute
        all
        or any part of the Shares unless (i) there is an effective registration
        statement under the Securities Act and applicable state securities laws covering
        any such transaction involving the Shares, or (ii) the Company receives an
        opinion of the undersigned’s legal counsel, in form acceptable to the Company,
        stating that such transaction is exempt from registration, or (iii) the Company
        otherwise satisfies itself that such transaction is exempt from
        registration.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The
        Company hereby agrees that if the Company proposes to register any of its
        securities under the Securities Act (other than pursuant to a Form S-4, Form
        S-8
        or any other successor form of limited purpose), it will give written notice
        by
        registered mail at least thirty (30) business days prior to the filing of
        each
        such registration statement to the undersigned of its intention to do so.
        If the
        undersigned notifies the Company within twenty (20) business days after receipt
        of any such notice of its desire to include any of the Shares in such proposed
        registration statement, the Company shall afford the undersigned the opportunity
        to have any such amount of the Shares registered under such registration
        statement; provided,
        further,
        that
        common stock underlying the Agent’s Warrant (as that term is defined in the BMCI
        Agreement) shall have the same registrations rights as the Shares pursuant
        to
        this Common Stock Subscription Agreement.

      

      The
        undersigned consents to (i) the placing of the legend set forth below on
        the
        certificate representing the Shares stating that the Shares have not been
        registered and setting for the restriction on transfer contemplated hereby
        and
        (ii) the placing of a stop transfer order on the books of the Company and
        with
        any transfer agents against the Shares.

      

      The
        following legend shall be placed on certificates representing the
        Shares:

      

      THE
        SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER FEDERAL
        OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE
        TRANSFERRED FOR VALUE, DIRECTLY OR INDIRECTLY, NOR MAY THE SECURITIES BE
        TRANSFERRED ON THE BOOKS OF THE COMPANY WITHOUT REGISTRATION OF SUCH SECURITIES
        UNDER ALL APPLICABLE UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR
        COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE, AT THE
        OPTION OF THE CORPORATION, TO BE EVIDENCED BY AN OPINION OF SHAREHOLDER’S
        COUNSEL, IN FORM ACCEPTABLE TO THE COMPANY, THAT NO VIOLATION OF SUCH
        REGISTRATION PROVISIONS WOULD RESULT FROM ANY PROPOSED TRANSFER OR
        ASSIGNMENT.

       

      I
        HAVE
        CAREFULLY READ THE FOREGOING AND UNDERSTAND THAT IT RELATES TO RESTRICTIONS
        UPON
        MY ABILITY TO OFFER FOR SALE, SELL AND/OR TRANSFER THE SHARES.

      

      Dated:
        June ___, 2005

      

      

      BREAN
        MURRAY & CO., INC.

      

      

      
        
          

        

      

      By:
        

      Its:
        

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      ACCEPTANCE

      

      The
        foregoing Common Stock Subscription Agreement and the consideration reflected
        therein are hereby accepted.

      

      Dated:
        June ___, 2005

      

      

      ITEC
        ENVIRONMENTAL GROUP, INC.,

      a
        Delaware corporation

      

      

      

      
        
          

        
By:
        

      Its:
        

      
        
           

        

        
          3

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