Document:

Amendment to Amended and Restated Supplemental Agreement

 Exhibit 10.2 
 AMENDMENT TO 
 AMENDED AND RESTATED SUPPLEMENTAL AGREEMENT AND AMENDMENT 
 TO 
 AMENDED AND RESTATED CREDIT
AGREEMENT 
 THIS AMENDMENT (the “Amendment”) is executed as of September 12, 2008 (“Execution Date”) and amends that
certain AMENDED AND RESTATED SUPPLEMENTAL AGREEMENT AND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, executed as of July 30, 2008 (the “Supplement”), by and between LSQ Funding Group, L.C. (“LSQ”) and BRE LLC
(collectively “Lender”), and Tri-S Security Corporation (“Tri-S”), for itself and as agent for Paragon Systems, Inc., The Cornwall Group, Inc., Vanguard Security, Inc., Forestville Corporation, Vanguard Security of Broward
County, Inc., On Guard Security and Investigations, Inc., Armor Security, Inc., Protection Technologies Corporation, International Monitoring, Inc., and Guardsource Corp (collectively, “Borrower”), and amends Section 1.1 of the Credit
Agreement (as defined below). 
 WHEREAS, Lender and Borrower have, entered into that certain AMENDED AND RESTATED CREDIT AGREEMENT,
dated as of December 31, 2007, as the same may be amended from time to time (the “Credit Agreement”), and pursuant thereto, Lender has made the Term Loan; 
 WHEREAS, Borrower and LSQ have entered into a Loan and Security Agreement, dated as of December 31, 2007, as the same may be amended from time to time (the “ABL Agreement”), and pursuant thereto
LSQ may make Advances to Borrower on the terms set forth therein; and 
 WHEREAS, Borrower has requested and Lender has agreed to the
terms of the Credit Agreement as supplemented by the Supplement and this Amendment; 
 NOW, THEREFORE, for valuable consideration, the
parties hereby agree as follows: 

 1. Paragraph 1 of the Supplement is hereby amended and restated as follows: 
 Within five Business Days of the end of each month that any portion of the Term Loan is outstanding, in addition to all other fees and interest due under
the Credit Agreement, and as long as any Unbilled Accounts are included in the Borrowing Base for purposes of making an Advance under the ABL Agreement, Borrower shall pay a monthly fee (“Overadvance Fee”) to Lender equal to: i) from
September 1, 2008, until December 31, 2008, one and one-quarter percent (1.25%), and after January 1, 2009 one and three-quarter percent (1.75%) of the Highest Daily Overadvance, less ii) $60,000, or such lesser amount as will
reduce the Overadvance Fee to $0. As used herein, the term Highest Daily Overadvance shall mean the highest daily total in any given month of the: a) outstanding Term Loan, plus b) the outstanding Advances, less c) the Borrowing Base. 
 2. Upon execution of this Amendment, Tri-S shall issue to Lender a four-year warrant, in the form of Exhibit “A” attached hereto, to
purchase 125,000 shares of Tri-S common stock at an exercise price equal to 110% of the closing sales price per share of the Tri-S common stock on the Execution Date. Notwithstanding anything herein or in the Supplement to the contrary, all warrants
to purchase Tri-S common stock issued pursuant to this Amendment or the Supplement shall not be exercisable in the aggregate for greater than 420,000 shares of Tri-S common stock. 
 3. The definition of “Term Loan Maturity Date” in Section 1.1 of the Credit Agreement is hereby amended and restated as follows:

 “Term Loan Maturity Date” means, with respect to the Term Loan, March 28, 2010, or such earlier date as is required
pursuant to any agreement or note that is entered into or is issued in connection with the Term Loan. 
 4. Lender and Borrower agree that,
except as expressly supplemented or amended hereby or by the Supplement, the Credit Agreement, and each and every document incident thereto or connected therewith, is and shall at all times remain in full force and effect. In the event of any
conflict between the provisions of the Credit Agreement and the provisions of the Supplement, as may be amended from time to time, provisions of the Supplement, as may be amended from time to time, shall control. 
  

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 5. Any capitalized term not specifically defined in this Amendment or the Supplement shall have the
meaning ascribed to it in the Credit Agreement and/or the ABL Agreement. 
 IN WITNESS WHEREOF, the parties have executed this Amendment as
of the date first above written. 
 [SIGNATURE PAGES FOLLOW] 
  

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	 BORROWER:
  
 TRI-S SECURITY CORPORATION

		
	By:	 	 /s/  Ronald G. Farrell

	Name:	 	 Ronald G. Farrell

	Title:	 	 President

	
	PARAGON SYSTEMS, INC.
		
	By:	 	 /s/  Ronald G. Farrell

	Name:	 	 Ronald G. Farrell

	Title:	 	 President

  

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	THE CORNWALL GROUP, INC.
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

	
	VANGUARD SECURITY, INC.
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

	
	FORESTVILLE CORPORATION
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

	
	VANGUARD SECURITY OF BROWARD COUNTY, INC.
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

  

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	ON GUARD SECURITY AND INVESTIGATIONS, INC.
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

	
	ARMOR SECURITY, INC.
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

	
	PROTECTION TECHNOLOGIES CORPORATION
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

	
	INTERNATIONAL MONITORING, INC.
		
	By:	 	 /s/  R.G. Farrell

	Name:	 	 R.G. Farrell

	Title:	 	 President

  

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		 		 		 	GUARDSOURCE CORP.
					
		 		 		 	By:	 	 /s/  R.G. Farrell

		 		 		 	Name:	 	 R.G. Farrell

		 		 		 	Title:	 	 President

			
	LENDER:	 		 	LSQ FUNDING GROUP, L.C.
					
		 		 		 	By:	 	 /s/  A. Maxwell Eliscu

		 		 		 	Name:	 	Max Eliscu
		 		 		 	Title:	 	Authorized Agent
				
		 		 		 	BRE LLC
					
		 		 		 	By	 	 /s/  A. Maxwell Eliscu

		 		 		 	Name:	 	A. Maxwell Eliscu
		 		 		 	Title:	 	Authorized Agent

  

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 Exhibit A 
 THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR
PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. 
 WARRANT TO PURCHASE STOCK 
 Issuer: Tri-S Security Corporation, a Georgia corporation (the “Company”) 
 Number of Shares: 125,000 shares of the Company’s common stock (the “Shares”), as provided in that certain Amended and Restated Supplemental
Agreement and Amendment to Amended and Restated Credit Agreement effective as of May 1, 2008, as amended by that certain Amendment to Amended and Restated Supplemental Agreement and Amendment to Amended and Restated Credit Agreement dated
September     , 2008 (as so amended, the “Supplement”). 
 Exercise Price:
$             per share, as the price may be from time to time adjusted pursuant to Article 2 hereof. 
 Issue Date: September     , 2008. 
 Expiration Date: September
    , 2112. 
 THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and valuable consideration,
BRE LLC (“Holder”) is entitled to purchase the number of fully paid and nonassessable Shares of the Company at the Exercise Price per Share set forth, subject to the provisions and upon the terms and conditions set forth in this
Warrant. 
 ARTICLE 1 EXERCISE. 
 1.1
Method of Exercise. Subject to Section 1.6 below, this Warrant is exercisable, in whole or in part, at any time and from time to time on or before the Expiration Date set forth above. Holder may exercise this Warrant by delivering a duly
executed Notice of Exercise, in substantially the form attached as Appendix 1, to the principal office of the Company together with a check for the aggregate Exercise Price for Shares being purchased. 
 1.2 Fair Market Value. If the Shares are traded in a public market, the fair market value of the Shares shall be the closing price of the Shares
(or the closing price of the Company’s stock into which the Shares are convertible) reported for the business day immediately before Holder delivers its Notice of Exercise to the Company. If the Shares are not traded in a public market, the
Board of Directors of the Company shall determine fair market value in its reasonable good faith judgment. The foregoing notwithstanding, if Holder advises the Board of Directors in writing that Holder disagrees with such determination, then the
Company and Holder shall promptly agree upon a reputable investment banking firm to undertake such valuation. If the valuation of such investment banking firm is greater than that determined by the 

 
Board of Directors, then all fees and expenses of such investment banking firm shall be paid by the Company. In all other circumstances, such fees and
expenses shall be paid by Holder. 
 1.3 Delivery of Certificate and New Warrant. Promptly after Holder exercises this Warrant, the
Company shall deliver to Holder certificates for Shares acquired and, if this Warrant has not been fully exercised and has not expired, a new Warrant representing Shares not so acquired. 
 1.4 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at its
expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 
 1.5 Repurchase on Sale, Merger, or
Consolidation of the Company. For the purpose of this Warrant, “Acquisition” means any sale, license, or other disposition of all or substantially all of the assets of the Company, or any reorganization, consolidation, or merger of the
Company where the holders of the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. Upon the closing of any Acquisition, the successor
entity shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and property as would be payable for Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares
were outstanding on the record date for the Acquisition and subsequent closing, and the Exercise Price shall be adjusted accordingly; provided that if pursuant to such Acquisition the entire outstanding class of Shares issuable upon exercise
of the unexercised portion of this Warrant are cancelled and the total consideration payable to the holders of such class of Shares consists entirely of cash, then, upon payment to the holder of this Warrant of an amount equal to the amount such
holder would receive if such holder held Shares issuable upon exercise of the unexercised portion of this Warrant and such Shares were outstanding on the record date for the Acquisition less the aggregate Exercise Price of such Shares, this
Warrant shall be cancelled. 
 1.6 Limitations on Exercise. 
 1.6.1 Shareholder Approval. In the event that Shareholder Approval is required, the Holder of this Warrant shall not be permitted
to exercise this Warrant or any portion hereof pursuant to Article 1 hereof until the Company has obtained Shareholder Approval. If necessary, no later than thirty (30) days after the date of this Warrant, the Company shall file with the
Securities and Exchange Commission a preliminary proxy statement pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in connection with a Shareholder Meeting and shall seek to convene such meeting as promptly
thereafter as practicable. 
 1.6.2 Beneficial Ownership. In no event shall the Holder of this Warrant be permitted to
exercise this Warrant or any portion hereof pursuant to Article 1 hereof if, upon such exercise, the number of shares of common stock of the Company (the “Common Stock”) to be issued pursuant to such exercise plus the number of
shares of 

  

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Common Stock beneficially owned by the Holder would exceed 9.99% of the number of shares of Common Stock then issued and outstanding, it being the intent of
the Company and the Holder that the 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 the Holder to exercise this Warrant or any portion thereof at such time as such exercise will not violate the provisions of this Section 1.6.2. As used herein, beneficial ownership shall be determined in accordance with
Section 13(d) of the Exchange Act. To the extent that the limitation contained in this Section 1.6.2 applies (and without limiting any rights the Company may otherwise have), the Company may rely on the Holder’s determination of
whether this Warrant is exercisable pursuant to the terms hereof, the Company shall have no obligation whatsoever to verify or confirm the accuracy of such determination, and the submission of a Notice of Exercise by the Holder shall be deemed to be
the Holder’s representation that this Warrant is exercisable pursuant to the terms hereof. 
 1.6.3 Certain
Definitions. The following terms used in this Section 1.6 have the following respective meanings: 
 “Shareholder Approval” means the affirmative vote of at least a majority of the votes cast at a Shareholder Meeting at which a quorum is present to approve the potential issuance of shares of Common Stock for purpose of
complying with this warrant and the rules governing The Nasdaq Stock Market, Inc. 
 “Shareholder Meeting”
means a meeting of the Company’s shareholders. 
 1.7 General Share Limitation. Notwithstanding anything in this Warrant or in
the Supplement, this Warrant, together with all warrants issued pursuant to the Supplement, shall not be exercisable for greater than an aggregate of 420,000 shares of Common Stock. 
 ARTICLE 2 ADJUSTMENTS. 
 2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a
dividend on its common stock (or Shares if Shares are securities other than common stock) payable in common stock or other securities, subdivides the outstanding common stock into a greater amount of common stock, or, if Shares are securities other
than common stock, subdivides Shares in a transaction that increases the amount of common stock into which Shares are convertible, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total
number and kind of securities to which Holder would have been entitled had Holder owned Shares of record as of the date the dividend or subdivision occurred. 
 2.2 Reclassification, Exchange or Substitution. Except in the case of an Acquisition to which Section 1.5 is applicable, upon any reclassification, exchange, substitution, or other event that results in a
change of the number and/or class of the securities issuable upon exercise of this Warrant, Holder shall be entitled to receive, upon exercise of this Warrant, the number and kind of securities and property that Holder would have received for Shares
if this Warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. The Company or its successor shall promptly issue to Holder a new Warrant for such new 

  

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securities or other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 2 including, without limitation, adjustments to the Exercise Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this Section 2.2 shall similarly apply to
successive reclassifications, exchanges, substitutions, or other events. 
 2.3 Adjustments for Combinations, Etc. If the outstanding
Shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Exercise Price shall be proportionately increased and the number of Shares as to which this warrant is exercisable shall be proportionately
decreased. 
 2.4 [Intentionally Deleted] 
 2.5 No Impairment. The Company shall not, by amendment of its Articles of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this
Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under this Article against impairment. 
 2.6 Fractional Shares. No fractional Shares shall be issuable upon exercise of the Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any
exercise of the Warrant, the Company shall eliminate such fractional share interest by paying Holder an amount computed by multiplying the fractional interest by the fair market value of a full Share. 
 2.7 Certificate as to Adjustments. Upon each adjustment of the Exercise Price, the Company at its expense shall promptly compute such adjustment,
and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a certificate setting forth the Exercise
Price in effect upon the date thereof and the series of adjustments leading to such Exercise Price. 
 ARTICLE 3 COVENANTS OF THE COMPANY. 

3.1 Valid Issuance. The Company shall take all steps necessary to insure that all Shares which may be issued upon the exercise of this Warrant
shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws. 

3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any dividend or distribution upon its common stock,
whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to the holders of any class or series of its stock any additional shares of stock of any class or series or
other rights; (c) to effect any reclassification or recapitalization of common stock; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or 

  

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substantially all of its assets, or to liquidate, dissolve or wind up; or (e) offer holders of registration rights the opportunity to participate in an
underwritten public offering of the company’s securities for cash, then, in connection with each such event, the Company shall give Holder (1) in the case of the matters referred to in (a) and (b) above at least 20 days
prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if
any, in respect of the matters referred to in (c) and (d) above; (2) in the case of the matters referred to in (c) and (d) above at least 20 days prior written notice of the date when the same will take place (and
specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event); and (3) in the case of the matter referred to in
(e) above, the same notice as is given to the holders of such registration rights. 
 3.3 Information. So long as the Holder
holds this Warrant and/or any of the Shares, the Company shall deliver to Holder (a) promptly, copies of all notices or other written communications to which Holder would be entitled if it held Shares as to which this Warrant was then
exercisable and (b) such other financial statements required under and in accordance with any loan documents between Holder and the Company, or if there are no such requirements [or if the subject loan(s) are no longer are outstanding, then
within 45 days after the end of each of the first three quarters of each fiscal year, the Company’s quarterly, unaudited financial statements and within 120 days after the end of each fiscal year, the Company’s annual, audited financial
statements. 
 3.4 Notice of Expiration. The Company shall give Holder written notice of Holder’s right to exercise this Warrant
in the form attached as Appendix 2 not more than 90 days and not less than 15 days before the Expiration Date and, in the case of an Acquisition to which the proviso of Section 1.5 shall be applicable, 15 days notice of such
Acquisition. If the notice is not so given, the Expiration Date shall automatically be extended until 15 days after the date the Company delivers the notice to Holder. 
 3.5 Registration Rights. The Shares issuable upon exercise of this Warrant shall have the same registration rights as the Company grants to the
investors in its next equity capital raising transaction completed after the Issue Date. 
 ARTICLE 4 MISCELLANEOUS. 
 4.1 Legends. This Warrant and the Shares shall be imprinted with a legend in substantially the following form: 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 
  

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 4.2 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon
exercise of this Warrant may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment
representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or, if
current information, as referenced in Rule 144(c), is available, Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents that it has complied with Rule 144(f) and the Company
is provided with a copy of Holder’s notice of proposed sale. 
 4.3 Transfer Procedure. Subject to the provisions of
Section 4.3 Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant at any time to LSQ LLC, or to any other transferee acceptable to the Company (which acceptance shall not be unreasonably withheld
or delayed) by giving the Company notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this Warrant to the Company for reissuance to the
transferee(s) (and Holder if applicable). The Company shall have the right to refuse to transfer any portion of this Warrant to any person who directly competes with the Company. 
 4.4 Notices. All notices and other communications from the Company to Holder, or vice versa, shall be in writing and shall be deemed delivered and
effective when given personally or mailed by first-class registered or certified mail, postage prepaid, or by overnight courier, at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or
such Holder from time to time. 
 4.5 Attorneys Fees. In the event of any dispute between the parties concerning the terms and
provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 
 4.6 Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of Georgia, without giving effect to
its principles regarding conflicts of law. 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
officers, all as of the day and year first above written. 
  

			
	 COMPANY 
  
 TRI-S SECURITY CORPORATION

		
	By	 	 
	Name:	 	 
	Title:	 	 

  

			
	 The undersigned Holder acknowledges and accepts the terms of this Warrant and represents that it is an “accredited investor,”
as that term is defined in Rule 501 under the Securities Act of 1933, as amended:
  
 BRE, LLC

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

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 APPENDIX 1 
 Notice of Exercise 
 1. The undersigned hereby elects to purchase
                 shares of the Common Stock of Tri-S Security Corporation pursuant to the terms of the attached Warrant, and tenders herewith payment of
the purchase price of such shares in full. 
 2. Please issue a certificate or certificates representing said shares in the name of the
undersigned or in such other name as is specified below: 
  

			
	Name:	 	 
	Address:	 	 
	 	 	 

 3. The undersigned represents it is an “accredited investor” within the meaning of Rule
501 of the Securities Act of 1933, as amended, and it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution thereof except in compliance with applicable
securities laws. 
  

	
	  
	(Signature)
	
	 
	(Date)

 APPENDIX 2 
 Notice that Warrant Is About to Expire 
 [Insert Date of Notice] 
  

					
	To:    	 	 
		 	Attn:	 	 
		 	 
		 	 

 The Warrant issued to you described below will expire on
                                . 
 Issuer: Tri-S Security Corporation 
 Issue Date:
                                . 
 Class of Security Issuable: Common Stock 
 Exercise Price per
Share: $             
 Number of Shares Issuable:
                     
 Procedure for
Exercise: 
 Please contact __________ at (            )
            -             with any questions you may have concerning exercise of the Warrant. This is your only
notice of pending expiration. 
  

			
	TRI-S SECURITY CORPORATION
		
	By	 	 
		
	Its:Director Designation Agreement

 Exhibit 10.3 
 DIRECTOR DESIGNATION AGREEMENT 
 THIS DIRECTOR DESIGNATION AGREEMENT (this
“Agreement”) is made and entered into as of October 16, 2008, by and among TRI-S SECURITY CORPORATION, a Georgia corporation (the “Company”), and Select Contrarian Value Partners, L.P. (“Select
Contrarian”). 
 RECITALS 
 WHEREAS, the Company desires to enter into this Agreement to induce Select Contrarian to tender that certain 10% Callable, Convertible Promissory Note dated October 14, 2005, in the original principal amount of
$1,500,000, payable by the Company to Select Contrarian (“Select Contrarian’s Existing Note”), in connection with the exchange offer contemplated by that certain tender offer statement on Schedule TO under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), initially filed by the Company with the Securities and Exchange Commission (the “SEC”) on August 20, 2008 (File No. 005-81576) (as may be amended from
time to time, together with each exhibit and other item related thereto, the “Tender Offer Documents”); and 
 WHEREAS, each
party hereto is entering into this Agreement to provide for certain matters with respect to the board of directors of the Company (the “Board of Directors”), including, without limitation, the number of directors of the Company
(each, a “Director” and, collectively, the “Directors”), the composition of committees, and the designation and election of certain natural persons as directors, their term of office and manner of selection and
removal, and the relationship among such directors, the Company and Select Contrarian; 
 AGREEMENT 
 NOW, THEREFORE, in and as consideration of and for the provisions hereof, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, each party here, intending to be legally bound, hereby agrees as follows: 
 1. Definitions. Each capitalized
term used and not otherwise defined herein shall have the meaning(s) assigned to such term in the Tender Offer Documents, which are incorporated herein by reference. 
 2. Board Designees. Select Contrarian shall be entitled to designate two (2) natural persons to be elected as Directors (each, a “Designee” and, together, the
“Designees”); provided, however, that each Designee must (i) qualify as an “independent director” (as defined in the rules of the exchange applicable to the Company); (ii) agree in writing to resign
from the Board of Directors effective as of the termination of this Agreement; and (iii) as a condition of, and in connection with, such Designee’s election to the Board of Directors, deliver to the Company a written notice pursuant to
which such Designee resigns from the Board of Directors effective as of the termination of this Agreement. The Company shall in good faith use commercially reasonable efforts to adequately inform the Board of Directors (and cooperate with the other
party hereto) in connection with the determination by the Board of Directors of the independence and acceptability of each Designee. 
 3.
Number of Directors. Upon the effectiveness of this Agreement and until its termination (the “Term”), the total authorized number of Directors shall be fixed at four (4) unless and until changed in any manner provided
herein. No later than two (2) weeks after Select Contrarian delivers the Designee Notice (as defined below) to the Company, and subject to the occurrence of the Exchange Date and the satisfaction of the requirements of Section 2(i)
–(iii), the total authorized number of Directors shall be fixed at six (6) unless and until changed in any manner provided herein. The total authorized number of 

 
Directors may be changed (and any newly created directorship resulting from any increase in the total authorized number of Directors may be filled) from time
to time only in accordance with the Company’s Bylaws and Articles of Incorporation (together, the “Organizational Documents”) and applicable law. 
 For purposes of this Agreement, the “Designee Notice” means a written notice from Select Contrarian to the Company which identifies the Designees (or any successor Designee designated pursuant to
Section 5) and provides the information about each such Designee which would be required to be delivered to the Company pursuant to Section 2.05(b) of the Company’s Bylaws if such Designee were being nominated by a shareholder of the
Company for election as a Director. 
 4. Board Membership. No later than two (2) weeks after Select Contrarian delivers the
Designee Notice to the Company, and subject to the occurrence of the Exchange Date and the satisfaction of the requirements of Section 2(i)-(iii), the Company shall cause the Board of Directors to elect the Designees as Directors and apportion
the Designees among the Director classes as required by the Organizational Documents and applicable law. The Company shall use commercially reasonably efforts to cause the Board of Directors to continue to include throughout the Term the two
(2) Designees designated by Select Contrarian (or any successor Designee designated by Select Contrarian pursuant to Section 5). The Company shall deliver to the Designees notice of all meetings of the independent Directors in the same
manner and at the time such notice is delivered to the independent Directors who are not Designees. 
 5. Removal; Vacancies. Any
Designee may be removed from the Board of Directors at any time in accordance with the Organizational Documents and applicable law. Select Contrarian has the right to designate a natural person to fill any vacancy on the Board of Directors created
prior to the end of the Term by the death, removal, or resignation of any Designee or the inability or unwillingness of any Designee to serve as a Director; provided, however, that any person designated pursuant to this Section 5
must satisfy the requirements of Section 2(i)-(iii), and Select Contrarian must deliver to the Company a Designee Notice with respect to any such person. During the Term, the Company shall not amend its Bylaws to permit the removal of Directors
from the Board of Directors by action of the Board of Directors. 
 6. Liability and Indemnification. At all times from the date
hereof until the termination of this Agreement, the Company shall maintain in full force and effect (i) the indemnification protections for Directors and officers of the Company as set forth in the Organizational Documents and otherwise in any
contract, agreement and arrangement with any officer or Director and (ii) such director’s and officer’s liability insurance as is customary in the industry. 
 7. Support. At and for any annual or special meeting of Directors and/or shareholders of the Company, and otherwise whenever the Directors and/or
shareholders of the Company act or are asked to act, including, without limitation, by written consent and/or with respect to election of Directors, each party hereto shall take all necessary and appropriate actions within its reasonable control to
(i) cause this Agreement to be effectuated and to carry out the intent and purposes hereof (including, without limitation, the approval, nomination, appointment, election, removal, and/or replacement of each Designee and the indemnification of
Directors and officers pursuant to and in accordance with this Agreement) and (ii) ensure that the Organizational Documents do not conflict in any respect with this Agreement. No party hereto shall (a) grant any proxy that is inconsistent
with this Agreement or enter into or agree to be bound by any voting agreement or voting trust that is inconsistent with this Agreement, except as otherwise expressly provided herein, or (b) enter into any shareholder agreement or other
arrangement of any kind with any person that is inconsistent with this Agreement. 
  

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 8. Fees and Expenses. The Company shall promptly reimburse each Designee for any and all
reasonable out-of-pocket fees and expenses actually incurred by such Designee in connection with the participation by such Designee in any meeting of the Board of Directors or any committee of the Board of Directors (each, a
“Committee” and, collectively, the “Committees”) or any meeting of the shareholders of the Company and otherwise in connection with the service by such Designee as a Director. 
 9. Compensation. Each Designee shall be entitled to receive, in addition to the fees and expenses otherwise provided for herein, such compensation
as determined, or recommended to the Board of Directors for determination, by (i) a majority of the independent Directors then in office or (ii) a duly appointed and qualified Compensation Committee of the Board of Directors. 

10. Committees. Select Contrarian shall have the right and option (but not the obligation) to choose one (1) Designee to be appointed as a
member of the Audit Committee, the Compensation Committee and each other Committee (if any); provided, however, that each Designee appointed to any Committee must satisfy the requirements applicable to members of such Committee set
forth in the (i) rules of the exchange applicable to the Company, (ii) rules and regulations of the SEC and (iii) provisions of the charter of the such Committee. The Company shall in good faith use commercially reasonable efforts to
adequately inform the Board of Directors (and cooperate with the other parties hereto) in connection with the determination by the Board of Directors regarding the qualifications of each Designee to be appointed to any Committee. During the Term,
the Company shall not amend the charter of any Committee in a manner intended to disqualify the Designee appointed to such Committee from serving thereon; provided, however, that nothing in this Agreement shall prohibit the Board of
Directors from amending any such charter in any manner which the Board of Directors deems necessary or desirable in order to comply with the rules of the exchange applicable to the Company, any rules or regulations of the SEC or other applicable
law. 
 11. Effectiveness; Termination. Notwithstanding anything herein to the contrary, this Agreement will not become effective or
enforceable against the Company unless and until such time as (i) Select Contrarian validly tenders Select Contrarian’s Existing Note in the Exchange Offer and (ii) the Exchange Date has occurred. This Agreement shall terminate
automatically if and when, and at and as of the time that, (a) the Company shall have fully and completely satisfied each obligation owed by the Company to Select Contrarian under the New Note issued to Select Contrarian in the Exchange Offer
or (b) Select Contrarian shall have assigned its interest under such New Note to another party. Select Contrarian may assign its New Note to another party subject to the consent of the Company, which shall not be unreasonably withheld,
conditioned or delayed; provided, however, that it shall be unreasonable to withhold, condition, and/or delay consent to an assignment by Select Contrarian of its New Note to any person other than: (i) a convicted felon,
(ii) a direct competitor of the Company, or (iii) a person who is not an “accredited investor”, as such term is defined under Rule 501 of the Securities Act of 1933, as amended. 
 12. Fees and Expenses. The Company agrees to reimburse Select Contrarian its documented, out-of-pocket fees and expenses (including legal
fees) incurred in connection with the preparation and negotiation of this Agreement in an amount not to exceed FIVE THOUSAND DOLLARS ($5,000.00) in the aggregate. Except as otherwise expressly provided herein, each party hereto shall bear and pay
the fees and expenses of such party incurred in connection with this Agreement. Notwithstanding anything to the contrary herein, the prevailing party in any dispute shall be entitled to recovery of any and all fees and expenses of such party,
including, without, limitation, any and all reasonable fees and expenses of any attorney of such party, incurred in connection with such dispute. 
 13. Further Assurances; Legal Prohibitions. Each party hereto shall (i) furnish such information, (ii) execute and deliver such documents, and (iii) do all other such acts and things, in each

  

 3 

 
case, if and as reasonably requested by the other party hereto for the purpose of carrying out the intents and purposes of this Agreement. If the performance
by the Company of any obligation of the Company under this Agreement may be prohibited or otherwise limited by applicable law, the Company shall use commercially reasonable efforts to enable the Company to fully satisfy, fulfill, and perform such
obligation and otherwise satisfy, fulfill, and perform such obligation to the extent not prohibited by applicable law. 
 14. Waiver.
Neither the failure to exercise, nor any delay by either party hereto in exercising, any right, power, or privilege under this Agreement shall operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such
right, power, or privilege shall preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege. 
 15. Entire Agreement; Modification. This Agreement terminates, supersedes, and replaces all prior written and oral agreements between the parties hereto with respect to the subject matter hereof and constitutes
a complete and exclusive statement of the terms of the agreement between the parties hereto with respect to the subject matter hereof. This Agreement may not be amended or otherwise modified except by a written agreement executed by each party
hereto. 
 16. Assignment. Except as otherwise expressly provided by this Agreement, neither party may assign any right or
obligation of such party under this Agreement without the prior express written consent of the other party hereto. This Agreement shall apply to, be binding in all respects upon, and inure to the benefit of each successor, personal representative,
and permitted assign of each party hereto. 
 17. Severability. If any provision hereof is held to be illegal, invalid or
unenforceable under any present or future law, and if any rights or obligation of either party hereto hereunder shall not be materially and adversely affected thereby, (i) such provision shall be fully severable, (ii) this Agreement shall
be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (iii) each remaining provision hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom, and (iv) in lieu of such illegal, invalid or unenforceable provision, there shall be added, automatically as a part hereof, a legal, valid and enforceable provision as similar in terms to
such illegal, invalid or unenforceable provision as may be possible or otherwise acceptable to each party hereto. 
 18. Time of the
Essence. With regard to each date and time period set forth or referred to herein, time is of the essence. 
 19. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original copy of this Agreement and all of which, when taken together, shall be deemed to constitute one (1) and the same agreement. 

20. Specific Enforcement. Each party hereto expressly agrees that each party hereto may be irreparably damaged if this Agreement is not
specifically enforced. In any proceeding or other action to specifically enforce this Agreement, each party hereto shall waive the claim or defense that the other party hereto or claimant has an adequate remedy at law, and such party shall not urge
a claim or defense that such remedy at law exists. Upon a breach or threatened breach hereof by either party hereto, the other party hereto shall, in addition to all other remedies available with respect to such breach, be entitled to a temporary or
permanent injunction, without showing any actual damage, and/or a decree for specific performance. This Agreement shall not prevent either party hereto from seeking a remedy at law in connection with any breach hereof. 
  

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 IN WITNESS WHEREOF, each party hereto has caused this Director Designation Agreement to be duly executed
and effective as of the date first written above. 
  

			
	TRI-S SECURITY CORPORATION
		
	By:	 	 /s/  Ronald G. Farrell

	Name:	 	 Ronald G. Farrell

	Title:	 	 Chief Executive Officer

	
	SELECT CONTRARIAN VALUE PARTNERS, L.P.
		
	By:	 	Kaizen Management, L.P.
	Title:	 	General Partner
		
	By:	 	Kaizen Capital, L.L.C.
	Title:	 	General Partner
		
	By:	 	 /s/  David W. Berry

	Name:	 	 David W. Berry

	Title:	 	 Manager

 Signature Page to Director Designation Agreement.

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