Document:

Exhibit 10.16

                                ESCROW AGREEMENT

      This Escrow Agreement is entered into as of March 4, 2005, by and among
ELECTRONIC CONTROL SECURITY, INC., a New Jersey corporation (the "Parent")
CLARION SENSING SYSTEMS, INC., an Indiana corporation (the "Company"); the
shareholders of the Company, all of whom are listed on Attachment A (the
"Shareholders"); and Lasser Hochman, L.L.C., (the "Escrow Agent").

                                    RECITALS

      A. Clarion Sensing Systems Acquisition Corp., a New Jersey corporation and
a wholly-owned subsidiary of Parent ("Sub"), and the Company have entered into
an Asset Purchase Agreement of even date herewith (the "Purchase Agreement")
which provides that the Sub shall acquire substantially all of the assets and
assume certain specified liabilities of the Company, on the terms and conditions
set forth therein. The Shareholders and Sub have entered into an Agreement with
Target Stockholders ("Target Stockholders Agreement") under which the
Shareholders agree to indemnify the Sub in the event of a breach of the terms
and conditions of the Purchase Agreement.

      B. The Purchase Agreement contemplates the establishment of an escrow
arrangement to secure the indemnification and other obligations of Company and
the Shareholders under the Purchase Agreement and various related agreements. As
a condition precedent to Sub's and Parent's execution of the Purchase Agreement
and related agreements and to more fully secure unto Parent and Sub the benefits
under the Purchase Agreement, Parent and Sub have required that the Company and
the Shareholders enter into this Agreement ; and Parent and the Shareholders
have agreed to enter into this Agreement in order to induce Parent and Sub to
consummate the transaction described in the Purchase Agreement.

                                    AGREEMENT

      The parties to this Escrow Agreement, intending to be legally bound, agree
as follows:

Section 1. Defined Terms

      Capitalized terms used and not otherwise defined in this Escrow Agreement
shall have the meanings assigned to them in the Purchase Agreement.

Section 2. Escrow

      2.1 Shares to be Placed in Escrow. On the date of the Closing (the
"Closing Date"), Parent shall issue a certificate for 394,682 shares of the
Common Stock of Parent (the "Parent Common Stock") to be issued pursuant to the
Purchase Agreement (the "Escrow Shares"), in the

<PAGE>

name of Escrow Agent or its nominee, evidencing the shares of the Parent Common
Stock to be held in escrow in accordance with this Escrow Agreement. The Escrow
Shares shall be held as a trust fund and shall not be subject to any lien,
attachment, trustee process or any other judicial process of any creditor of any
party hereto. The Escrow Agent agrees to accept delivery of the Escrow Shares
and to hold the Escrow Shares in escrow (the "Escrow"), subject to the terms and
conditions of this Agreement.

      2.2. Indemnification. The Shareholders have agreed in the Target
Stockholder Agreement to indemnify and hold harmless each Parent and Sub from
and against, and shall compensate and reimburse each of them for Adverse
Consequences, as set forth therein. The Escrow Shares shall be security for such
indemnity obligation, subject to the limitations, and in the manner provided, in
this Agreement.

      2.3 Voting Shares. On any matter brought before the Parent stockholders
for a vote, the Escrow Agent shall vote the Escrow Shares as directed by the
Shareholders individually. Each Shareholder shall have the right to direct the
vote of the number of shares resulting from the multiplication of the
Shareholder's percentage set forth on Attachment A by the total number of Escrow
Shares held by the Escrow Agent on the record date for the vote.

      2.4 Dividends Etc. Any cash, securities or other property distributable
(whether by way of dividend, stock split or otherwise) in respect of or in
exchange for any of the Escrow Shares shall be held by the Escrow Agent in the
Escrow. At the time any of the Escrow Shares are required to be released from
the Escrow to any person pursuant to this Escrow Agreement, any cash, securities
or other property previously distributed in respect of or in exchange for such
Escrow Shares shall be released from the Escrow to such person.

      2.5 Transferability. The interests of the Company in the Escrow and in the
Escrow Shares held in the Escrow shall not be assignable or transferable, other
than by operation of law . No transfer of any of such interests by operation of
law shall be recognized or given effect until Parent shall have received written
notice of such transfer.

      2.6 Fractional Shares. No fractional shares of Parent Common Stock shall
be retained in or released from the Escrow pursuant to this Escrow Agreement. In
connection with any release of shares from the Escrow, the Escrow Agent shall be
permitted to "round down" or to follow such other rounding procedures as the
Escrow Agent reasonably determines to be appropriate in order to avoid (i)
retaining any fractional shares in the Escrow or (ii) releasing any fractional
share from the Escrow.

Section 3. Claim Procedures

      3.1 Claim Notice. If Parent or Sub determines in good faith that there is
or has been a possible inaccuracy in or breach of any representation, warranty,
covenant or other provision set forth in any of the Asset Purchase Agreement or
related agreements, or in any document or instrument delivered pursuant thereto
or in connection therewith (collectively, the "Transactional

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<PAGE>

Agreements") and if Parent or Sub is entitled, under the terms of the
Transactional Agreements or any of them, to make a claim against the Escrow with
respect to such possible inaccuracy or breach, then Parent may deliver to the
Shareholders Representative (as defined in Section 4.1 herein) and the Escrow
Agent a written notice of such possible inaccuracy or breach (a "Claim Notice")
setting forth (i) a brief description of the circumstances supporting Parent's
or Sub's belief that such possible inaccuracy or breach exists or has occurred,
and (ii) to the extent possible, a non-binding, preliminary estimate of the
aggregate dollar amount of all Adverse Consequences that have arisen and may
arise as a result of such possible inaccuracy or breach (such aggregate amount
being referred to as the "Claim Amount"). Such Claim Notice must be delivered
prior to the Terminate Date (as defined in Section 6.1 hereto).

      3.2 Response Notice. Within thirty (30) days after the delivery of a Claim
Notice to the Shareholders Representative, the Shareholders Representative shall
deliver to Parent, with a copy to the Escrow Agent, a written notice (the
"Response Notice") containing: (i) instructions to the effect that shares of
Parent Common Stock having a Stipulated Value (as defined in Section 7 of this
Escrow Agreement) equal to the entire Claim Amount set forth in such Claim
Notice are to be released from the Escrow to Parent; or (ii) instructions to the
effect that shares of Parent Common Stock having a Stipulated Value equal to a
specified portion (but not the entire amount) of the Claim Amount set forth in
such Claim Notice are to be released from the Escrow Agent, together with a
statement that the remaining portion of such Claim Amount is being disputed; or
(iii) a statement that the entire Claim Amount set forth in such Claim Notice is
being disputed. If no Response Notice is received by Parent from the
Shareholders Representative within thirty (30) days after the delivery of a
Claim Notice to the Shareholders Representative, then the Shareholders
Representative shall be deemed to have given instructions that shares of Parent
Common Stock having a Stipulated Value equal to the entire Claim Amount set
forth in such Claim Notice are to be released to Parent from the Escrow.

      3.3 Release of Shares to Parent.

            (a) If the Shareholders Representatives give (or is deemed to have
given) instructions that shares of Parent Common Stock having a Stipulated Value
equal to the entire Claim Amount set forth in a Claim Notice are to be released
from the Escrow to Parent, then the Escrow Agent shall promptly following the
required delivery date for the Response Notice transfer, deliver and assign to
Parent such number of Escrow Shares held in the Escrow as have a Stipulated
Value equal to the Claim Amount (or such lesser number of Escrow Shares as is
then held in the Escrow).

            (b) If a Response Notice delivered by the Shareholders
Representative in response to a Claim Notice contains instructions to the effect
that shares of Parent Common Stock having a Stipulated Value equal to a
specified portion (but not the entire amount) of the Claim Amount set forth in
such Claim Notice are to be released from the Escrow to Parent, then (i) the
Escrow Agent shall promptly following the required delivery date for the
Response Notice transfer, deliver and assign to Parent such number of Escrow
Shares held in the Escrow as have a Stipulated Value equal to such specified
portion of such Claim Amount, and (ii) the procedures

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set forth in Section 3.3(c) of this Escrow Agreement shall be followed with
respect to the remaining portion of such Claim Amount.

            (c) If a Response Notice delivered by the Shareholders
Representative in response to a Claim Notice contains a statement that all or a
portion of the Claim Amount set forth in such Claim Notice is being disputed
(such Claim Amount or the disputed portion thereof being referred to as the
"Disputed Amount"), then, notwithstanding anything contained in Section 6 of
this Escrow Agreement, the Escrow Agent shall continue to hold in the Escrow (in
addition to any other shares of Parent Common Stock permitted to be retained in
the Escrow), shares of Parent Common Stock having a Stipulated Value equal to
110% of the Disputed Amount. Such shares of Parent Common Stock shall continue
to be held in the Escrow until (i) delivery of a notice executed by Parent and
the Shareholders Representative setting forth instructions to the Escrow Agent
regarding the release of such shares, or (ii) delivery of a copy of an
arbitrator's award (as defined in Section 3.3(e) setting forth instructions to
the Escrow Agent as to the release of such shares. The Escrow Agent shall
thereupon release shares of Parent Common Stock from the Escrow in accordance
with the instructions set forth in such notice or arbitrator's award. (The
parties acknowledge that it is appropriate to retain more than 100% of a Claim
Amount in the Escrow in recognition of the fact that Parent may have
underestimated the aggregate amount of the actual and potential Adverse
Consequences arising in connection with a particular Claim Notice).

            (d) In the event that any Response Notice indicates that there is a
Disputed Amount, the Shareholders Representative and Parent (acting on its own
behalf or on behalf of Sub) shall for a period of 60 days attempt in good faith
to resolve th rights of the respective parties with respect to such claims. If
the Shareholders Representative and Parent should so agree, a notice setting
forth such agreement shall be signed by both parties and sent to the Escrow
Agent who shall thereupon transfer, deliver and assign to Parent such number of
Escrow Shares held in Escrow as have a Stipulated Value equal to the agreed upon
amount (or such lesser number of shares as is then held in Escrow).

            (e) If no such agreement can be reached within such 60 day period,
either Parent or the Shareholders Representative may demand arbitration of the
matter unless the amount of Adverse Consequences at issue is the subject of
pending litigation (or alternative dispute resolution) with a third party, in
which event arbitration shall not be commenced until such litigation is
concluded or both parties request arbitration. Arbitration shall be held in
Cincinnati, Ohio. The arbitration shall be conducted under the auspices of the
American Arbitration Association or another body selected by the parties. The
parties shall use commercially reasonable efforts to agree on a single
arbitrator. If they are unable to do so within 15 days after notice of
commencement of the arbitration is given, then any party to the dispute may
request the American Arbitration Association to supply a list of five
prospective arbitrators. The parties shall alternately strike one name from the
list, beginning with the party who commenced the arbitration, until only one
name remains, and the last person remaining on the list shall be the arbitrator.
By mutual agreement, the parties may reject an entire list and request another.
Judgment on an award of the arbitrator may be entered by any court of competent

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jurisdiction. The arbitrators shall have the authority to grant equitable
relief. The prevailing party in any arbitration shall be entitled to recover, in
addition to any other relief awarded by the arbitrator, its reasonable costs and
expenses, including attorneys' fees, of preparing for an participating in the
arbitration. If each party prevails on specific issues in the arbitration, the
arbitrator may allocate the costs incurred by all parties on a basis he deems
appropriate. Arbitration will be limited to determining, to the extent in
dispute by the parties, the existence and amount, if any, of indemnifiable
Adverse Consequences under the Transactional Agreements, or any of them.

Section 4. Shareholders Representative.

      4.1 Shareholders Representative.

            (a) The Shareholders shall be represented hereunder by H. Martin
Harmless II ("Shareholders Representative"). The Shareholders Representative is
hereby empowered by each Shareholder to give and receive notices and
communications, to authorize delivery to Parent of Parent Common Stock or other
property placed in Escrow in satisfaction of claims by Parent or Sub, to object
to such deliveries, to agree to, negotiate, enter into settlements and
compromises of, demand arbitration of and comply with awards of arbitrators with
respect to such claims and to take any and all actions necessary or appropriate
in the judgment of the Shareholders Representative for the accomplishment of the
foregoing.

            (b) In the event a Shareholder Representative shall die or resign or
otherwise terminate this status as such, a successor, who shall be a
Shareholder, shall be appointed by a majority-in-interest of the Shareholders.
All decisions of the Shareholders Representative shall be made by a majority
vote or agreement if there shall be more than two Shareholder Representatives.
The Shareholders Representative shall receive no compensation for his services.

            (c) The Shareholders Representative shall not be liable to the
Shareholders or the Company for any act done or omitted hereunder while acting
in good faith and in the exercise of reasonable judgment. The Shareholders and
Company hereby agree to indemnify and hold the Shareholders Representative
harmless against any loss, liability, or expenses incurred by Shareholders
Representative in his capacity as such, except to the extent such loss,
liability or expense is due to bad faith or negligent conduct. The Shareholders
Representative shall be entitled to reimbursement by the Shareholders, pro rata
to the percentages set forth opposite the names of the Shareholders on
Attachment A hereto, for attorneys fees and other out-of-pocket expenses
incurred by Shareholders Representative in accordance with this Agreement.

            (d) A decision by the Shareholders Representative shall constitute a
decision of all of the Shareholders and the Company, and shall be final, binding
and conclusive upon each of them. Parent, Sub and the Escrow Agent may rely upon
any act, decision, consent or instruction of the Shareholders Representative as
being the act, decision, consent or instruction of each and all of the
Shareholders, and Parent, Sub and the Escrow Agent are hereby relieved

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from any liability to any person for any acts done by them in accordance with
any act, decision, consent or instruction of the Shareholders Representative.

Section 5. Third Party Claims

      In the event Parent becomes aware of any third-party claim which Parent
believes may result in a claim for indemnification, Parent shall notify the
Shareholders Representative of such claim.

Section 6. Release of Shares to Shareholders

      6.1 Shares to be Released. On the earlier of: (i) three years after the
date of the Asset Purchase Agreement or (ii) the earliest practicable date
following the fiscal year in which Sub achieves sales in excess of $3,000,000
and net earnings before taxes in excess of $600,000, all determined in
accordance with generally accepted accounting principles consistently applied.
the Escrow Agent shall release to the Company from the Escrow all shares of
Parent Common Stock then held in the Escrow, except for any shares of Parent
Common Stock that are to be retained in the Escrow in accordance with Section
3.3(c) of this Escrow Agreement

Section 7. Valuation of Shares Held in Escrow.

      For purposes of this Escrow Agreement, the "Stipulated Value" of each of
the Escrow Shares shall be deemed to be equal to the closing ask price of a
share of Parent Common Stock on the date such Escrow Shares shall be released
from Escrow to the Parent.

Section 8. Fees and Expenses

      8.1 The Escrow Agent will be entitled to no fee in its capacity as Escrow
Agent. The Escrow Agent will be entitled to reimbursement for extraordinary
expenses incurred in performance of its duties hereunder. Each of (i) Parent and
(ii) the Shareholders shall be liable for one-half (1/2) of such amounts and
Parent shall be entitled to reimbursement from the Escrow Shares of the
Shareholders' share of any such extraordinary expenses, if such share is paid by
Parent.

      8.2 Except as may otherwise be provided herein, all expenses (including
attorneys' fees) incurred by any Shareholder in connection with this Agreement
shall be borne by such Shareholder.

      8.3 Upon a notice in writing delivered to the Escrow Agent by Parent in
respect of Section 8.1, the Escrow Agent shall transfer, deliver and assign to
Parent, in reimbursement of fees and expenses pursuant to Section 8.1 or to
Section 9.2, such number of Escrow Shares held in the Escrow which have a
Stipulated Value equal to the amount to be reimbursed.

Section 9. Duties of Escrow Agent; Limitation of Escrow Agent's Liability.

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      9.1 The sole duty of the Escrow Agent, other than as herein specified,
shall be to receive and hold the Escrow Shares, subject to disbursement in
accordance with this Agreement, and the Escrow Agent shall be under no duty to
determine whether Parent, the Shareholders Representative or the Shareholders
are complying with the requirements of this Agreement or any other agreement.
The Escrow Agent shall not be liable for losses due to act of God, war, loss of
electrical power or the failure of communication devices.

      9.2 The Escrow Agent shall incur no liability with respect to any action
taken or suffered by it in reliance upon any notice, direction, instruction,
consent, statement or other documents believed by it to be genuine and duly
authorized, nor for other action or inaction except its own willful misconduct
or negligence. The Escrow Agent shall not be responsible for the validity or
sufficiency of this Agreement. In all questions arising under the Escrow
Agreement, the Escrow Agent may rely on the advice of counsel, and for anything
done, omitted or suffered in good faith by the Escrow Agent based on such advice
the Escrow Agent shall not be liable to anyone. The Escrow Agent shall not be
required to take any action hereunder involving any expense unless the payment
of such expense is made or provided for in a manner reasonably satisfactory to
it.

      9.3 Parent and the Shareholders, jointly and severally, hereby agree to
indemnify the Escrow Agent for, and hold it harmless against, any loss,
liability or expense incurred without negligence or willful misconduct on the
part of Escrow Agent, arising out of or in connection with its carrying out of
its duties hereunder. As among themselves, each of (i) Parent and (ii) the
Shareholders shall be liable for one-half (1/2) of such amounts and Parent shall
be entitled to reimbursement from the Escrow Shares of the Shareholders' share
of any such loss, liability or expense, if such share is paid by Parent.

Section 10. General

      10.1 Other Agreements. Nothing in this Escrow Agreement is intended to
limit any of Parent's or the Shareholders' rights, or any obligation of any
Shareholder, or of Parent under the Transactional Agreements.

      10.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey, without giving effect to
the conflict of laws provisions thereunder.

      10.3 Assignment; Binding Upon Successors and Assigns. No party hereto may
assign any of its rights or obligations hereunder without the prior written
consent of the other party hereto. This Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
permitted assigns.

      10.4 Severability. If any provision of this Agreement, or the application
thereof, is for any reason and to any extent found to be invalid or
unenforceable, the remainder of this

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Agreement and application of such provision to other persons or circumstances
will be interpreted so as reasonably to effect the intent of the parties hereto.
The parties further agree to replace such void or unenforceable provision of
this Agreement with a valid and enforceable provision that will achieve, to the
greatest extent possible, the economic, business and other purposes of the void
or unenforceable provision.

      10.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
shall constitute one and the same instrument. This Agreement will become binding
when one ore more counterparts hereof, individually or taken together, bear the
signatures of all the parties reflected hereon as signatories.

      10.6 Amendment and Waivers. Any term or provision of this Agreement may be
amended, and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only by a writing signed by the party to be bound thereby; provided that this
Agreement may be amended on behalf of all of the Shareholders by (i) the
Shareholders Representative or (ii) a majority in interest of the Shareholders.
Notwithstanding any rights that may be created in any third party under the
terms of this Agreement, no such amendment or waiver will require the consent of
such third party to be effective. The waiver by a party of any breach hereof or
default in the performance hereof will not be deemed to constitute a waiver of
any other default or any succeeding breach or default.

      10.7 Attorneys' Fees. Should suit be brought to enforce or interpret any
part of this Agreement, the prevailing party will be entitled to recover, as an
element of the costs of suit and not as damages, reasonable attorneys' fees to
be fixed by the court (including, without limitation, costs, expenses and fees
on any appeal). The prevailing party will be entitled to recover its costs of
suit, regardless of whether such suit proceeds to final judgment.

      10.8 Notices. All notices and other communications pursuant to this
Agreement shall be in writing and deemed to be sufficient if contained in a
written instrument and shall be deemed given if delivered personally,
telecopied, sent by nationally-recognized overnight courier or mailed by
registered or certified mail (return receipt requested), postage prepaid, to the
parties at the following address (or such other address for a party as shall be
specified by like notice):

If to Parent:
                                Electronic Control Security,  Inc.
                                790 Bloomfield Avenue
                                Building C - Suite 1
                                Clifton, NJ 07012
                                Attention: Mr. Arthur Birch
                                Phone No. 973-574-8555
                                Fax No. 973-574-8562

                                       8
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With a copy to:                 Lasser Hochman, L.L.C.
                                75 Eisenhower Parkway
                                Roseland, New Jersey 07068
                                Attention: David Silver, Esq.
                                Phone No. 973-226-2700
                                Fax No. 973-226-0844

If to the
Shareholders
Representative:                 Mr. Martin Harmless
                                Clarion Sensing Systems, Inc.
                                3901 W. 30th Street
                                Indianapolis, IN 46222
                                Phone No.
                                Fax No.

With a copy to:                 John W. Boyd
                                Barnes & Thornburg, LLP
                                11 South Meridian Street
                                Indianapolis, Indiana 46204
                                Phone No. 317-231-7773
                                Fax No. 317-231-7433

If to Escrow Agent to:          Lasser Hochman, L.L.C.
                                75 Eisenhower Parkway
                                Roseland, New Jersey 07068
                                Attention: David Silver, Esq.
                                Phone No. 973-226-2700
                                Fax No. 973-226-0844

      All such notices and other communications shall be deemed to have been
received (a) in the case of personal delivery, on the date of such delivery, (b)
in the case of a telecopy, when the party receiving such copy shall have
confirmed receipt of the communication, (c) in the case of delivery by
nationally-recognized overnight courier, on the business day following dispatch,
and (d) in the case of mailing, on the third business day following such
mailing.

      10.9 Construction of Agreement. This Agreement has been negotiated by the
respective parties hereto and their attorneys and the language hereof will not
be construed for or against either party. A reference to a Section or an exhibit
or attachment will mean a Section in, or exhibit or attachment to, this
Agreement unless otherwise explicitly set forth. The titles and

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<PAGE>

headings herein are for reference purposes only and will not in any manner limit
the construction of this Agreement, which will be considered as a whole.

      10.10 Further Assurances. Each party agrees to cooperate fully with the
other parties and to execute such further instruments, documents and agreements
and to give such further written assurances as may be reasonably requested by
any other party to evidence and reflect the transactions described herein and
contemplated hereby an to carry into effect the intents and purposes of this
Agreement.

      10.11 Absence of Third Party Beneficiary Rights. No provisions of this
Agreement be intended, nor will be interpreted, to provide or create any third
party beneficiary rights or any other rights of any kind in any client,
customer, affiliate, stockholder, partner or any party hereto or any other
person or entity unless specifically provided otherwise herein, and, except as
so provided, all provisions hereof will be personal solely between the parties
and this Agreement.

      10.12 Entire Agreement. This Agreement, the Transactional Agreements and
the Attachment hereto and thereto constitute the entire understanding and
agreement of the parties hereto with respect tot he subject matter hereof and
supersede all prior and contemporaneous agreement or understandings, inducements
or conditions, express or implied, written or oral, agreements or
understandings, inducements or conditions, express or implied, written or oral
between the parties with respect hereto. The express terms hereof control and
supersede any course of performance or usage of the trade inconsistent with any
of the term hereof.

      10.13 Resignation or Replacement of Escrow Agent. At its cost, Parent may
substitute a successor Escrow Agent for the Escrow Agent upon thirty days
advance written notice to the Shareholders Representative and the Escrow Agent.
Escrow Agent may resign upon 30 days advance written notice to Parent and the
Shareholders Representative. Within such 30 day period, Parent shall appoint a
successor Escrow Agent in accordance with this Section 10.13. If Parent has not
appointed a successor Escrow Agent within such period, the Escrow Agent may
petition any court of competent jurisdiction to name a successor escrow agent.

      10.14 Compliance with Securities Laws. Prior to release of the Escrow
Shares, the recipient thereof and Parent shall take such actions as may be
necessary to comply with the securities laws of the United States or any state;
provided however, Parent is under no obligation to register the Escrow Shares or
to make an exemption from registration available.

      IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of
the day of              , 2005.

                                         ELECTRONIC CONTROL SECURITY, INC.

                                         By:
                                            ------------------------------------
                                                  Arthur Barchenko, President

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<PAGE>

                                         CLARION SENSING SYSTEMS, INC.

                                         By:
                                            ------------------------------------
                                              H. Martin Harmless II, President

                                         LASSER HOCHMAN, L.L.C.

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

                                         SHAREHOLDER OF THE COMPANY

                                         Name:
                                              ----------------------------------
                                               BETTY HARMLESS

                                         Name:
                                              ----------------------------------
                                              BARRY PACHCIARZ

                                         Name:
                                              ----------------------------------
                                              TONY HARMLESS

                                         Name:
                                              ----------------------------------
                                              H. MARTIN HARMLESS II

                                         Name:
                                              ----------------------------------
                                              JON PAYNE

                                         Name:
                                              ----------------------------------
                                              CARRIE BELLOCK

                                         Name:
                                              ----------------------------------
                                              JERRY GOULD

                                         Name:
                                              ----------------------------------
                                              BOB PLUMMER

                                         Name:
                                              ----------------------------------
                                              BRIAN O'DELL

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<PAGE>

                                         Name:
                                              ----------------------------------
                                              ANDY EASLY

                                         Name:
                                              ----------------------------------
                                              ART PATTERSON

                                         Name:
                                              ----------------------------------
                                              SUSAN BOATRIGHT

                                         Name:
                                              ----------------------------------
                                              DICK CHEGAR

                                         Name:
                                              ----------------------------------
                                              SCOTT CRONK

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                                  ATTACHMENT A

Shareholder                                                   Percentage
-----------                                                   ----------

Betty Harmless                                                    9.239%

Barry Pachciarz                                                  28.380%

Tony Harmless                                                    30.554%

Marty Harmless                                                    8.066%

Jon Payne                                                         9.602%

Carrie Bellock                                                     .076%

Jerry Gould                                                        .015%

Bob Blummer                                                         .03%

Brian O'Dell                                                        .03%

Andy Easly                                                         .015%

Art Patterson                                                     1.146%

Susan Boatright                                                   5.824%

Dick Chegar                                                       6.495%

Scott Cronk                                                        .528%

                                       13Exhibit 10.17

                       AGREEMENT WITH TARGET STOCKHOLDERS

      Agreement dated March 4, 2005 among Clarion Sensing Systems Acquisition
Corp., a New Jersey corporation (the "Buyer"), and the stockholders (the "Target
Stockholders") of Clarion Sensing Systems, Inc., an Indiana corporation (the
"Target"). Buyer and Target Stockholders are referred to collectively herein as
the "Parties."

      The Buyer and the Target are entering into an Asset Purchase Agreement
concurrently herewith ("Asset Purchase Agreement"). The Asset Purchase Agreement
contemplates a transaction in which the Buyer will purchase the Acquired Assets
(and accept responsibility for the Assumed Liabilities) of the Target in return
for cash and the Parent Shares.

      The Buyer and the Target make certain representations, warranties, and
covenants in the Asset Purchase Agreement which will survive the Closing for
purposes of potential indemnification. The Target Stockholders, however, intend
to cause the Target to liquidate and dissolve after the Closing. The Buyer and
the Target Stockholders therefore wish to provide for post-Closing
indemnification against breaches of these representations, warranties, and
covenants and to make certain other covenants among themselves.

      Now, therefore, in consideration of the premises and the mutual promises
herein made, the Buyer and the Target Stockholders agree as follows.

      1. Definitions.

      "Adverse Consequences" means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid
in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and
fees, including court costs and reasonable attorneys' fees and expenses.

      "Annex" has the meaning set forth in ss.2 below.

      "Asset Purchase Agreement" has the meaning set forth in the preface above.

      "Confidential Information" means any information concerning the businesses
and affairs of the Target that is not already generally available to the public.

      "Escrow Agreement" means that certain escrow agreement among ECSI
International, Inc., Target and the Target Stockholders of even date herewith.

      "Indemnified Party" has the meaning set forth in ss.4(d) below.

      "Indemnifying Party" has the meaning set forth in ss.4(d) below.

                                      -1-
<PAGE>

      "Party" has the meaning set forth in the preface above.

      "Requisite Target Stockholders" means Target Stockholders holding a
majority in interest of the total number of Target Shares that all of the Target
Stockholders hold in the aggregate as set forth in the Annex.

      "Third Party Claim" has the meaning set forth in ss.4(d) below.

      Any capitalized term not otherwise defined in this Agreement has the
meaning ascribed in the Asset Purchase Agreement.

      2. Representations and Warranties of the Target Stockholders. Each of the
Target Stockholders represents and warrants to the Buyer that the statements
contained in this ss.2 are correct and complete as of the date of this Agreement
and will be correct and complete as of the Closing Date (as though made then and
as though the Closing Date were substituted for the date of this Agreement
throughout this ss.2) with respect to himself or itself, except as set forth in
the Annex attached hereto (the "Annex").

      (a) Authorization. The Target Stockholder has full power and authority to
execute and deliver this Agreement and to perform his or its obligations
hereunder. This Agreement constitutes the valid and legally binding obligation
of the Target Stockholder, enforceable in accordance with its terms and
conditions, except that the enforceability hereof may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally and that the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
equitable defenses and to the discretion of the court before which any
proceeding may be brought.

      (b) Noncontravention. Neither the execution and the delivery of this
Agreement by the Target Stockholder, nor the performance by the Target
Stockholder of his or its obligations hereunder, will (i) violate any
constitution, statute, regulation, rule, injunction, judgment, order, decree,
stipulation, ruling, charge, or other restriction of any government,
governmental agency, or court to which the Target Stockholder is subject or (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which the Target Stockholder is a party or
by which he or it is bound or to which any of his or its assets is subject.

      (c) Target Shares. The Target Stockholder holds of record the number of
Target Shares set forth next to his or its name on the Annex.

      3. Post-Closing Covenants. The Parties agree as follows with respect to
the period following the Closing.

      (a) General. In case at any time after the Closing any further action is
necessary or desirable to carry out the purposes of the Asset Purchase
Agreement, each of the Parties will take

                                      -2-
<PAGE>

such further action (including the execution and delivery of such further
instruments and documents) as any other Party reasonably may request, all the
sole cost and expense of the requesting Party (unless the requesting Party is
entitled to indemnification therefor under ss.4 below). The Target Stockholders
acknowledge and agree that from and after the Closing the Buyer will be entitled
to possession of all documents, books, records (including Tax records),
agreements, and financial data of any sort relating to the Target, other than
those expressly agreed to in writing by Buyer and Target prior to the Closing.

      (b) Litigation Support. In the event and for so long as any Party actively
is contesting or defending against any action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand in connection with (i) any
transaction contemplated under the Asset Purchase Agreement or (ii) any fact,
situation, circumstance, status, condition, activity, practice, plan,
occurrence, event, incident, action, failure to act, or transaction on or prior
to the Closing Date involving the Target, each of the other Parties will
cooperate with the contesting or defending Party and his or its counsel in the
contest or defense, make available his or its personnel, and provide such
testimony and access to his or its books and records as shall be necessary in
connection with the contest or defense, all at the sole cost and expense of the
contesting or defending Party (unless the contesting or defending Party is
entitled to indemnification therefor under ss.4 below).

      (c) Transition. For three (3) years following the date hereof, none of the
Target Stockholders will take any action that is designed or intended to have
the effect of discouraging any lessor, licensor, customer, supplier, or other
business associate of the Target from maintaining the same business
relationships with the Buyer after the Closing as it maintained with the Target
prior to the Closing. For three (3) years following the date hereof, each of the
Target Stockholders will refer all customer inquiries relating to the businesses
of the Target to the Buyer from and after the Closing. In the event a Target
Stockholder shall be party to an agreement which would require such Target
Stockholder not to discourage such business associates from maintaining the same
business relationship with Buyer after the Closing as it maintained with Target
prior to Closing following three (3) years from the date hereof, this Agreement
shall in no way affect the application of such other agreement.

      (d) Confidentiality. Each of the Target Stockholders will treat and hold
as such all of the Confidential Information, refrain from using any of the
Confidential Information except in connection with this Agreement, and deliver
promptly to the Buyer or destroy, at the request and option of the Buyer, all
tangible embodiments (and all copies) of the Confidential Information which are
in his or its possession. In the event that any of the Target Stockholders is
requested or required (by oral question or request for information or documents
in any legal proceeding, interrogatory, subpoena, civil investigative demand, or
similar process) to disclose any Confidential Information, that Target
Stockholder will notify the Buyer promptly of the request or requirement so that
the Buyer may seek an appropriate protective order or waive compliance with the
provisions of this ss.3(d). If, in the absence of a protective order or the
receipt of a waiver hereunder, any of the Target Stockholders is, on the advice
of counsel, compelled to disclose any Confidential Information to any tribunal
or else stand liable for contempt, that Target Stockholder may disclose the
Confidential Information to the tribunal; provided, however, that

                                      -3-
<PAGE>

the disclosing Target Stockholder shall use his or its reasonable best efforts
to obtain, at the reasonable request of the Buyer, an order or other assurance
that confidential treatment will be accorded to such portion of the Confidential
Information required to be disclosed as the Buyer shall designate.

      (e) Post-Closing Covenant. The Parties intend that the transaction will be
treated for income tax purposes as a taxable purchase of assets and not a
tax-free reorganization. The Target Stockholders shall take no action or fail to
take an action contrary to this intention, including but not limited to (i)
causing the distribution of any property Target receives in connection with the
transaction contemplated by the Asset Purchase Agreement pursuant to a plan of
reorganization or (ii) taking the position for tax or other purposes to the
effect that said transaction is a tax-free reorganization.

      4. Remedies for Breaches of this Agreement and the Asset Purchase
Agreement.

      (a) Survival of Representations and Warranties. All of the representations
and warranties of the Target contained in ss.3(g)-(j), ss.3(l)-(w), ss.3(y) and
ss.3(a)(a) - ss.3(a)(c) of the Asset Purchase Agreement shall survive the
Closing and continue in full force and effect until three (3) years following
the date hereof. All of the other representations and warranties of the Target
and the Target Stockholders contained in the Asset Purchase Agreement (including
the representations and warranties of the Target contained in ss.3(a)-(f),
ss.3(k), ss.3(x) and ss.3(z) thereof) and in this Agreement or in any related
agreement or in any document or instrument delivered pursuant thereto or in
connection therewith, including without limitation any Side Agreement, shall
survive the Closing (even if the damaged Party knew or had reason to know of any
misrepresentation or breach of warranty at the time of Closing) and continue in
full force and effect forever thereafter (subject to any applicable statutes of
limitations).

      (b) Indemnification Provisions for Benefit of the Buyer.

      (i) In the event the Target breaches (or in the event any third party
      alleges facts that, if true, would mean the Target has breached) any of
      its representations, warranties, and covenants contained in the Asset
      Purchase Agreement or any related agreement or in any document or
      instrument delivered pursuant thereto or in connection therewith,
      including without limitation any Side Agreement, and, if there is an
      applicable survival period pursuant to ss.4(a) above, provided that the
      Buyer makes a written claim for indemnification against any of the Target
      Stockholders pursuant to ss.6(h) below within such survival period, then
      each of the Target Stockholders agrees, jointly and severally, to
      indemnify the Buyer and Parent from and against the entirety of any
      Adverse Consequences the Buyer and Parent may suffer through and after the
      date of the claim for indemnification (including any Adverse Consequences
      the Buyer and Parent may suffer after the end of any applicable survival
      period) resulting from, arising out of, relating to, in the nature of, or
      caused by the breach (or the alleged breach). The Buyer may elect (x) to
      make a claim under the Escrow Agreement in accordance with the terms
      thereof (y), to make a claim for cash indemnification hereunder or (z) to
      make claims under both clauses (x) and (y) of this sentence; provided
      however, the total amount of

                                      -4-
<PAGE>

      indemnification payable to Buyer shall not exceed the amount of the
      Adverse Consequences.

      (ii) In the event any of the Target Stockholders breaches (or in the event
      any third party alleges facts that, if true, would mean any of the Target
      Stockholders has breached) any of his or its representations, warranties,
      and covenants contained in this Agreement or the Asset Purchase Agreement
      or any related agreement or in any document or instrument delivered
      pursuant thereto or in connection therewith, including without limitation
      any Side Agreement, and, if there is an applicable survival period
      pursuant to ss.4(a) above, provided that the Buyer or Parent makes a
      written claim for indemnification against the Target Stockholder pursuant
      to ss.6(h) below within such survival period, then the Target Stockholder
      agrees to indemnify the Buyer or Parent from and against the entirety of
      any Adverse Consequences the Buyer or Parent incurs through and after the
      date of the claim for indemnification (including any Adverse Consequences
      the Buyer incurs after the end of any applicable survival period)
      resulting from, arising out of, or caused by the breach (or the alleged
      breach).

      (iii) Each of the Target Stockholders agrees, jointly and severally, to
      indemnify the Buyer or Parent from and against the entirety of any Adverse
      Consequences the Buyer incurs resulting from, arising out of, relating to,
      or caused by any Liability of the Target which is not an Assumed Liability
      (including any Liability of the Target that becomes a Liability of the
      Buyer or Parent under any bulk transfer law of any jurisdiction, under any
      common law doctrine of de facto merger or successor liability, under
      Environmental, Health, and Safety Requirements, under any Tax law or
      otherwise by operation of law);

      (c) Indemnification Provisions for Benefit of the Target Stockholders.

      (i) All of the representations and warranties of the Buyer contained in
      the Asset Purchase Agreement shall survive the Closing (even if the
      damaged Party knew or had reason to know of any misrepresentation or
      breach of warranty at the time of Closing) and continue in full force and
      effect forever thereafter (subject to any applicable statutes of
      limitations).

      (ii) In the event the Buyer breaches (or in the event any third party
      alleges facts that, if true, would mean the Buyer has breached) any of its
      representations, warranties, and covenants contained in the Asset Purchase
      Agreement and in this Agreement, and, if there is an applicable survival
      period pursuant to ss.4(c)(i) above, provided that any of the Target
      Stockholders makes a written claim for indemnification against the Buyer
      pursuant to ss.6(h) below within such survival period, then the Buyer
      agrees to indemnify each of the Target Stockholders from and against the
      entirety of any Adverse Consequences the Target Stockholder may suffer
      through and after the date of the claim for indemnification (including any
      Adverse Consequences the Target Stockholder may suffer after the end of
      any applicable survival period) resulting from, arising out of, relating
      to, in the nature of, or caused by the breach (or the alleged breach).

                                      -5-
<PAGE>

      (iii) The Buyer agrees to indemnify each of the Target Stockholders from
      and against the entirety of any Adverse Consequences the Target
      Stockholder may suffer resulting from, arising out of, relating to, in the
      nature of, or caused by any Assumed Liability.

      (d) Matters Involving Third Parties.

      (i) If any third party shall notify any Party (the "Indemnified Party")
      with respect to any matter (a "Third Party Claim") which may give rise to
      a claim for indemnification against any other Party (the "Indemnifying
      Party") under this ss.4, then the Indemnified Party shall promptly notify
      each Indemnifying Party thereof in writing; provided, however, that no
      delay on the part of the Indemnified Party in notifying any Indemnifying
      Party shall relieve the Indemnifying Party from any obligation hereunder
      unless (and then solely to the extent) the Indemnifying Party thereby is
      prejudiced.

      (ii) Any Indemnifying Party will have the right to defend the Indemnified
      Party against the Third Party Claim with counsel of its choice reasonably
      satisfactory to the Indemnified Party so long as (A) the Indemnifying
      Party notifies the Indemnified Party in writing within 15 days after the
      Indemnified Party has given notice of the Third Party Claim that the
      Indemnifying Party will defend the Indemnified Party from and against any
      Adverse Consequences the Indemnified Party incur resulting from, arising
      out of, relating to, or caused by the Third Party Claim, (B) the
      Indemnifying Party provides the Indemnified Party with evidence reasonably
      acceptable to the Indemnified Party that the Indemnifying Party will have
      the financial resources to defend against the Third Party Claim and
      fulfill its indemnification obligations hereunder, (C) the Third Party
      Claim involves only money damages and does not seek an injunction or other
      equitable relief, (D) settlement of, or an adverse judgment with respect
      to, the Third Party Claim is not, in the good faith judgment of the
      Indemnified Party, likely to establish a precedential custom or practice
      materially adverse to the continuing business interests of the Indemnified
      Party, and (E) the Indemnifying Party conducts the defense of the Third
      Party Claim actively and diligently.

      (iii) So long as the Indemnifying Party is conducting the defense of the
      Third Party Claim in accordance with ss.4(d)(ii) above, (A) the
      Indemnified Party may retain separate co-counsel at its sole cost and
      expense and participate in the defense of the Third Party Claim, (B) the
      Indemnified Party will not consent to the entry of any judgment or enter
      into any settlement with respect to the Third Party Claim without the
      prior written consent of the Indemnifying Party (not to be withheld
      unreasonably), (C) the Indemnifying Party will not consent to the entry of
      any judgment or enter into any settlement with respect to the Third Party
      Claim without the prior written consent of the Indemnified Party (not to
      be withheld unreasonably), and (D) the Indemnifying Party shall not be
      liable for any amounts in excess of the amount payable pursuant to a
      settlement or judgment if the Indemnified Party does not consent to such
      settlement or entry of judgment referred to in clause (C) above, unless
      the withholding of such consent was reasonable.

                                      -6-
<PAGE>

      (iv) In the event any of the conditions in ss.4(d)(ii) above is or becomes
      unsatisfied, however, (A) the Indemnified Party may defend against, and
      consent to the entry of any judgment or enter into any settlement with
      respect to, the Third Party Claim in any manner it reasonably may deem
      appropriate (and the Indemnified Party need not consult with, or obtain
      any consent from, any Indemnifying Party in connection therewith), (B) the
      Indemnifying Parties will reimburse the Indemnified Party promptly and
      periodically for the costs of defending against the Third Party Claim
      (including reasonable attorneys' fees and expenses), and (C) the
      Indemnifying Parties will remain responsible for any Adverse Consequences
      the Indemnified Party may suffer resulting from, arising out of, relating
      to, in the nature of, or caused by the Third Party Claim to the fullest
      extent provided in this ss.4.

      (e) Other Indemnification Provisions. The foregoing indemnification
provisions are in addition to, and not in derogation of, any statutory,
equitable, or common law remedy (including without limitation any such remedy
arising under Environmental, Health, and Safety Requirements) any Party may have
with respect to the Target or the transactions contemplated by this Agreement.
Each of the Target Stockholders hereby agrees that he or it will not make any
claim for indemnification against the Buyer by reason of the fact that he or it
was a director, officer, employee, or agent of the Target or was serving at the
request of any such entity as a partner, trustee, director, officer, employee,
or agent of another entity (whether such claim is for judgments, damages,
penalties, fines, costs, amounts paid in settlement, losses, expenses, or
otherwise and whether such claim is pursuant to any statute, charter document,
bylaw, agreement, or otherwise) with respect to any action, suit, proceeding,
complaint, claim, or demand brought by the Buyer against such Target Stockholder
(whether such action, suit, proceeding, complaint, claim, or demand is pursuant
to this Agreement, applicable law, or otherwise).

      5. Termination. This Agreement shall terminate if and only if the Asset
Purchase Agreement is terminated prior to the Closing in accordance with and
pursuant to the terms thereof.

      6. Miscellaneous.

      (a) Exclusivity. None of the Target Stockholders will (i) solicit,
initiate, or encourage the submission of any proposal or offer from any Person
relating to the acquisition of any capital stock or other voting securities, or
any substantial portion of the assets, of any of the Target and its Subsidiaries
(including any acquisition structured as a merger, consolidation, or share
exchange) or (ii) participate in any discussions or negotiations regarding,
furnish any information with respect to, assist or participate in, or facilitate
in any other manner any effort or attempt by any Person to do or seek any of the
foregoing. Each Target Stockholder will notify the Buyer immediately if he or it
becomes aware that any Person has made any proposal, offer, inquiry, or contact
with respect to any of the foregoing.

                                      -7-
<PAGE>

      (b) Press Releases and Public Announcements. None of the Target
Stockholders shall issue any press release or make any public announcement
relating to the subject matter of the Asset Purchase Agreement prior to the
Closing without the prior written approval of the Buyer.

      (c) No Third Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any Person other than the Parties and their respective
successors and permitted assigns.

      (d) Entire Agreement. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the Parties and supersedes any
prior understandings, agreements, or representations by or among the Parties,
written or oral, to the extent they related in any way to the subject matter
hereof.

      (e) Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign either this Agreement or any of his
or its rights, interests, or obligations hereunder without the prior written
approval of the Buyer and the Requisite Target Stockholders; provided, however,
that the Buyer may (i) assign any or all of its rights and interests hereunder
to one or more of its Affiliates and (ii) designate one or more of its
Affiliates to perform its obligations hereunder (in any or all of which cases
the Buyer nonetheless shall remain liable and responsible for the performance of
all of its obligations hereunder).

      (f) Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

      (g) Headings. The section headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

      (h) Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given if (and then two
business days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

      If to the Target:
      Clarion Sensing System, Inc.
      3901 West 30th Street
      Indianapolis, IN 46222
      Attention: H. Martin Harmless
      Phone No. 317-295-1433
      Fax No. 317 - 295-1436

                                      -8-
<PAGE>

      Copy to:

      Jay W. Boyd, Esq.
      Barnes & Thornburg
      11 South Meridian Street
      Indianapolis, Indiana 46204-3535
      Phone No.317-231-7773
      Fax No. 317-231-7433

      If to the Buyer:

      ECSI Subsidiary
      790 Bloomfield Avenue
      Buiding C - Suite 1
      Clifton, NJ 07012
      Attention: Mr. Arthur Birch
      Phone No. 973-574-8555
      Fax No. 973-574-8562

      Copy to:

      Lasser Hochman, L.L.C.
      75 Eisenhower Parkway
      Roseland, New Jersey 07068
      Attention: David Silver, Esq.
      Phone No. 973-226-2700
      Fax No. 973-226-0844

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Parties
notice in the manner herein set forth.

      (i) Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New Jersey without giving
effect to any choice or conflict of law provision or rule (whether of the State
of New Jersey or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of New Jersey.

      (j) Arbitration. Any dispute arising under this Agreement shall be
submitted to binding arbitration in Cincinnati, Ohio. The arbitration shall be
conducted under the auspices of the

                                      -9-
<PAGE>

American Arbitration Association or another body selected by the parties. The
parties shall use commercially reasonable efforts to agree on a single
arbitrator. If they are unable to do so within 15 days after notice of
commencement of the arbitration is given, then any party to the dispute may
request the American Arbitration Association to supply a list of five
prospective arbitrators. The parties shall alternately strike one name from the
list, beginning with the party who commenced the arbitration, until only one
name remains, and the last person remaining on the list shall be the arbitrator.
By mutual agreement, the parties may reject an entire list and request another.
Judgment on an award of the arbitrator may be entered by any court of competent
jurisdiction. The arbitrators shall have the authority to grant equitable
relief. The prevailing party in any arbitration shall be entitled to recover, in
addition to any other relief awarded by the arbitrator, its reasonable costs and
expenses, including attorneys' fees, of preparing for and participating in the
arbitration. If each party prevails on specific issues in the arbitration, the
arbitrator may allocate the costs incurred by all parties on a basis he deems
appropriate.

      (k) Amendments and Waivers. No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by the
Buyer and the Requisite Target Stockholders. No waiver by any Party of any
default, misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

      (l) Severability. Any term or provision of this Agreement that is invalid
or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

      (m) Expenses. Each of the Parties will bear his or its own costs and
expenses (including legal fees and expenses) incurred in connection with this
Agreement and the transactions contemplated hereby (except as otherwise provided
herein).

      (n) Construction. The Parties have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation.

      (o) Incorporation of Annex. The Annex is incorporated herein by reference
and made a part hereof.

                                      -10-
<PAGE>

      IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
date first above written.

                                       CLARION SENSING SYSTEMS ACQUISITION CORP.

                                       By:
                                          --------------------------------------
                                                Arthur Birch, President

                                       -----------------------------------------
                                       BETTY HARMLESS

                                       -----------------------------------------
                                       BARRY PACHCIARZ

                                       -----------------------------------------
                                       TONY HARMLESS

                                       -----------------------------------------
                                       H. MARTIN HARMLESS

                                       -----------------------------------------
                                       JON PAYNE

                                       -----------------------------------------
                                       CARRIE BELLOCK

                                       -----------------------------------------
                                       JERRY GOULD

                                       -----------------------------------------
                                       BOB PLUMMER

                                       -----------------------------------------
                                       BRIAN O'DELL

                                       -----------------------------------------
                                       ANDY EASLEY

                                       -----------------------------------------
                                       ART PATTERSON

                                      -11-
<PAGE>

                                       -----------------------------------------
                                       SUSAN BOATRIGHT

                                       -----------------------------------------
                                       DICK CHEGAR

                                       -----------------------------------------
                                       SCOTT CRONK

                                      -12-
<PAGE>

                                      ANNEX

                                      None

                                      -13-

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