Document:

Exhibit
10.9

 

FIRST AMENDMENT TO
LEASE AGREEMENT

 

This First Amendment to
Lease Agreement (this Amendment) is made and entered into as of The19th day of
January, 2007 by and between Frost National Bank, Trustee for a Designated
Trust (“Landlord”) and Argyle Security Acquisition Corporation (“Tenant”).

 

WITNESSETH

 

WHEREAS, Landlord and
Tenant entered into that certain Lease Agreement dated April 20, 2006 (the “Lease”)
pursuant to which the Landlord has leased to Tenant, and Tenant has leased from
Landlord the Premises identified as Suite 700 containing 2,547 rentable square
feet in the Building known as Concord Plaza, 200 Concord Plaza, San Antonio,
Texas 78216 (the “Premises”).

 

WHEREAS, Landlord and
Tenant now desire to amend the Lease pursuant to the terms and provisions set
forth herein.

 

NOW, THEREFORE, for and
in consideration of Ten and No/l00 Dollars ($10.00), the premises and mutual
agreements contained herein, and the exchange of other good and valuable
consideration between the parties hereto, the receipt and sufficiency of which
is hereby acknowledged, Landlord and Tenant agree that the Lease is amended as
follows:

 

1.                                       All
capitalized terms used in this Amendment, to the extent not otherwise expressly
defined herein, shall have the same meanings ascribed to such terms in the
Lease.

 

2.                                       The
Term of the Lease is hereby extended for six (6) months commencing February 1,
2007 and ending at 6:00 p.m. on July 31, 2007 (“Extended Term”).

 

3.                                       Except
as amended herein, the terms and conditions of the Lease shall continue in full
force and effect and are hereby ratified in their entirety. To the extent, if
any, that the terms and conditions of this Amendment conflict with the terms
and conditions of the Lease, the Lease as amended accordingly, and the terms and
conditions of this Amendment shall control.

 

4.                                       This
Amendment may be executed in one (1) or more counterparts, each of which when
taken together shall constitute but one and the same Amendment. Counterparts
bearing facsimile signatures shall be deemed to constitute originals.

 

Executed as of the date
first written above.

 

	
  LANDLORD:

  	
   

  	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FROST NATIONAL BANK,
  TRUSTEE

  	
   

  	
   

  	
   

  	
   ARGYLE SECURITY
  ACQUISITION 

  
	
  FOR A DESIGNATED TRUST

  	
   

  	
   

  	
   

  	
  CORPORATION

  

 

	
  By:

  	
   

  	
    REOC
  Partners, Ltd., a Texas limited

  	
  By:

  	
  /Bob Marbut/ 

  
	
   

  	
   

  	
  partnership As Agent
  for Landlord

  	
    Name:  Robert Marbut

  
	
   

  	
   

  	
   

  	
  Title: CEO and Chairman

  
	
  By:

  	
   

  	
    GWHLT,
  L.L.C., a Texas limited liability 

  	
   

  	
   

  
	
   

  	
   

  	
  Company, Its General
  Partner

  	
   

  	
   

  

 

	
  By:

  	
    /Todd A.
  Gold/

  	
   

  
	
  Name:

  	
      Todd
  A. Gold 

  
	
  Title:

  	
  PresidentExhibit
10.10

 

SECOND AMENDMENT
TO LEASE AGREEMENT

 

This Second Amendment to
Lease Agreement (this “Amendment”) is made and entered into as of the 18th day
of January , 2008 by and between Frost National Bank, Trustee for a Designated
Trust (“Landlord”) and Argyle Security, Inc. as successor in interest to
Argyle Security Acquisition Corporation (“Tenant”).

 

WITNESSETH

 

WHEREAS, Landlord and
Tenant entered into that certain Lease Agreement dated April 20, 2006 (the
“Lease”) pursuant to which the Landlord has leased to Tenant, and Tenant has
leased from Landlord the Premises identified as Suite 700 containing 2,547
rentable square feet in the Building known as Concord Plaza, 200 Concord Plaza,
San Antonio, Texas 78216 (the “Premises”).

 

WHEREAS, Landlord and Tenant
now desire to further amend the Lease pursuant to the terms and provisions set
forth herein.

 

NOW, THEREFORE, for and
in consideration of Ten and No/100 Dollars ($10.00), the premises and mutual
agreements contained herein, and the exchange of other good and valuable
consideration between the parties hereto, the receipt and sufficiency of which
is hereby acknowledged, Landlord and Tenant agree that the Lease is amended as
follows:

 

1.               All capitalized terms used in this Amendment, to the
extent not otherwise expressly defined herein, shall have the same meanings
ascribed to such terms in the Lease.

 

2.               Term. The Term of the Lease is hereby extended for
sixty (60) months commencing February 1, 2008 and ending at 6:00 p.m. on January 31,
2013 (“Extended Term”).

 

3.               Expansion Space. Effective February 1, 2008 (“Expansion
Space Commencement Date”), the Premises shall be expanded to include an
additional 2,910 square feet of Rentable Area (the ‘Expansion Space’ ) located
on the seventh floor of the Building as shown on Exhibit A 1 attached hereto
and incorporated herein by this reference for all purposes. In the event
Landlord is unable to deliver Expansion Space by the Expansion Space
Commencement Date, Tenant’s Base Rental shall be reduced by the equivalent of
$165.71 per day of such delay and the term of this Lease shall be for the
number of full lease months plus the number of days remaining in the month in
which the Term commences.

 

4.               Premises as of Expansion Space Commencement Date.  Effective as of the Expansion Space Commencement
Date, the Expansion Space shall be included in the Premises and shall he
subject to all of the terms, conditions and provisions of the Lease (as amended
hereby). As of the Expansion Space Commencement Date, the Rentable Area of the
Premises shall be 5,457 square feet.

 

5.               New Base Rent for the Premises (including Expansion Space.
Effective from and after the Expansion Space Commencement Date, the new Base
Rental (exclusive of the Base Rental Adjustment) for the entire Premises (including
the Expansion Space), shall be as follows:

 

	
  Term

  	
   

  	
  Rate(1)

  	
   

  	
  Annual Amount

  	
   

  	
  Monthly Installment

  	
   

  
	
  02/01/08 -
  03/31/08

  	
   

  	
  $

  	
  21.43

  	
   

  	
  $

  	
  116,962.56

  	
   

  	
  $

  	
  9,746.88

  	
   

  
	
  04/01/08 -
  03/31/09

  	
   

  	
  $

  	
  22.50

  	
   

  	
  $

  	
  122,782.50

  	
   

  	
  $

  	
  10,231.88

  	
   

  
	
  04/01/09 -
  03/31/10

  	
   

  	
  $

  	
  23.00

  	
   

  	
  $

  	
  125,511.00

  	
   

  	
  $

  	
  10,459.25

  	
   

  
	
  04/01/10 -
  03/31/11

  	
   

  	
  $

  	
  23.50

  	
   

  	
  $

  	
  128,239.50

  	
   

  	
  $

  	
  10,686.63

  	
   

  
	
  04/01/11 -
  03/31/12

  	
   

  	
  $

  	
  24.00

  	
   

  	
  $

  	
  130,968.00

  	
   

  	
  $

  	
  10,914.00

  	
   

  
	
  04/01/12-01/31/13

  	
   

  	
  $

  	
  24.50

  	
   

  	
  $

  	
  133,696.50

  	
   

  	
  $

  	
  11,141.38

  	
   

  

 

(1) Based on per square
foot of Rentable Area per annum.

 

1

 

6.               Tenant Improvements.  Except as otherwise
provided below and subject to the Tenant Allowance (as defined below), Landlord
agrees to cause the construction of alterations, improvements and finish-out to
the Premises for Tenant’s use (the “Tenant Improvements”) in accordance with
Final Working Drawings and Specifications approved by Landlord and Tenant in
the following manner. Landlord hereby acknowledges receipt and approval of
Tenant’s preliminary plans and specifications for the Tenant Improvements which
are annexed hereto as Exhibit “B- 1” (the “Preliminary Plans”). Within
fifteen days from the Effective Date of this Amendment, Landlord will cause to
be prepared by Landlord’s architect (the “Architect”) and delivered to Tenant working
drawings and specifications for the Tenant Improvements (the “Proposed Working Drawings”)
which shall substantially conform to the Preliminary Plans and shall include reasonably
detailed plans and specifications for the Tenant Improvements in form and
content and containing sufficient information and detail to allow for
competitive bidding or negotiated pricing by contractor(s) selected and
engaged by Landlord. Within five (5) days following Tenant’s receipt of
such Proposed Working Drawings from Landlord, Tenant will advise Landlord of
any required revisions to the Proposed Working Drawings, provided however such required
revisions shall not increase the Construction Costs, delay the Substantial
Completion of the Tenant Improvements, or materially deviate from the
Preliminary Plans (the “Requested Changes”). Within fifteen (15) days following
receipt of the Requested Changes, Landlord shall deliver Tenant revised
Proposed Working Drawings incorporating the Requested Changes. The Proposed
Working Drawings as revised by the Requested Changes will constitute the “Final
Working Drawings and Specifications.”

 

Landlord will promptly
begin construction of the Tenant Improvements described in the Final Working
Drawings and Specifications and will pursue construction with reasonable
diligence to completion.

 

Tenant Improvement
Allowance.  Landlord agrees to provide up to, but not in excess of
seventy eight thousand four hundred one and 00/100 Dollars 78,401 .00) (calculated
at $14.45 per square foot of the Rentable Area of the Premises) for costs of
constructing the Tenant Improvements (the “Tenant Allowance”). Any excess costs
must be paid by Tenant. The cost of constructing Tenant Improvements will
include (a) costs of labor and materials, (b) fees and other charges
payable to contractors, (c) fees to governmental authorities for permits,
inspections, and certificates of occupancy, and (d) other third party
out-of-pocket costs and expenses incurred by Landlord that are directly related
to the preparation of the Final Working Drawings and Specifications or the construction
of the Tenant Improvements. The Tenant Allowance shall not be utilized toward
any of Tenant’s furniture, fixtures or equipment including cabling. Tenant must
pay Landlord the estimated cost of constructing the Tenant Improvements in
excess of the Tenant Allowance in full within ten (10) days of receipt of
such estimate in writing. Any underpayment based on such estimate must be paid
by Tenant to Landlord within fifteen (15) days alter delivery of Landlord’s invoice
to Tenant reflecting the final accounting of the Construction Costs of the
Tenant Improvements.

 

Changes to Tenant
Improvements. If Tenant requests any changes in the Final Working Drawings and
Specifications, Tenant must submit revised drawings and specifications for
Landlord’s approval. If Landlord approves the changes, Landlord will
incorporate the changes in the Tenant Improvements following Landlord’s receipt
of a change order executed by Tenant. As a condition to Landlord’s approval,
Tenant must pay Landlord in advance the estimated amount by which the increased
cost of constructing the Tenant Improvements attributable to the change which
exceeds the Tenant Allowance.

 

Substantial Completion
Date. The “Substantial Completion Date” will be the date on which the Tenant
Improvements are completed in all material respects in substantial compliance
with the Final Working Drawings and Specifications (including any changes
approved by a change order executed by Landlord and Tenant). The Substantial
Completion Date will be reasonably determined by the Architect, whose good
faith determination will bind Landlord and Tenant. After the Substantial
Completion Date, Landlord will promptly complete any work required to

 

2

 

complete the Leasehold
Improvements, and Landlord may enter the Premises for that purpose at any time
without prior notice to Tenant.

 

7.               Expense Stop.  Effective upon the Expansion Space Commencement
Date, the Base Year for Operating Expenses shall be the calendar year 2008.

 

8.               Renewal Option. Provided that Tenant is not in default
of its Lease beyond any notice and cure period, and gives written notice to
Landlord not more than nine (9) months and not less than six (6) months
prior to it’s Lease expiration of its intent to renew, Tenant shall have one
option to renew this Lease for one additional period of five (5) years
under the same terms and conditions except that Base Rental for such renewal
term shall be reestablished at the then current market rate for buildings of
similar class and location as mutually agreed upon by Landlord and Tenant. At
Tenant’s election, the Expansion Space may be excluded from this renewal
option. If on or before thirty (30) days after the delivery of the renewal
notice Landlord and Tenant cannot agree in writing to the “current market rate”
to be applicable during the renewal term, either Landlord or Tenant may
terminate the Renewal Option (notwithstanding its earlier exercise) by
delivering written notice of such termination to the other party not later than
the original termination date of this Lease. In the event of termination of the
Renewal Option, the Renewal Option shall therefore be null and void and of no
further force and effect, and the Lease shall expire at the expiration of its
Term. Any termination of the Lease shall also terminate the Renewal Option.
This Renewal Option is personal to Tenant and shall not apply to any of Tenant’s
Assignee(s) or Sublessee(s).

 

9.               Conflict. Except as amended herein, the terms and
conditions of the Lease shall continue in full force and effect and are hereby
ratified in their entirety. To the extent, if any, that the terms amid conditions
of this Amendment conflict with the terms and conditions of the Lease, the
Lease as amended accordingly, the terms and conditions of this Amendment shall
control.

 

10.         Counterparts.  This Amendment may be executed in one (1) or
more counterparts, each of which when taken together shall constitute but one
and the same Amendment. Counterparts bearing facsimile signatures shall be
deemed to constitute originals.

 

Executed in multiple
copies as of the date first written above.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FROST NATIONAL BANK,
  TRUSTEE

  	
  ARGYLE SECURITY INC.

  
	
   

  	
   

  	
   

  
	
  FOR A DESIGNATED TRUST

  	
  By:

  	
  /Bob Marbut/

  
	
  By:

  	
  REOC
  Partners, Ltd., a Texas limited

  	
  Name:  Robert Marbut

  	
   

  
	
   

  	
  partnership As Agent
  for Landlord

  	
  Title:  CEO and Chairman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  REOC
  General Partner, LLC., a Texas

  	
   

  	
   

  
	
   

  	
  limited liability
  company (f/k/a GWHLT, LLC)

  	
   

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  / Todd A. Gold/

  	
   

  	
   

  
	
  Name:  Todd A. Gold

  	
   

  	
   

  
	
  Title:  Manager

  	
   

  	
   

  
						

 

3

 

EXHIBIT “A-1”

PRELIMINARY PLANS
EXPANSION SPACE

 

Exhibit is a floor
plan and could not be included in this document as is not convertible to HTML
format for submission to the SEC. Copy of plans may be requested from investor
relations if so required.

 

 

EXHIBIT “B-I”

PRELIMINARY PLANS

 

ARGYLE SECURITY

Concord Plaza Level 7

11/5/07

11/6/07 Revision

 

Preliminary Pricing Notes

 

GENERAL CONDITIONS

 

1.               These notes are for preliminary pricing only and not
for construction. Contractor to visit site and verify existing conditions.

 

2.               Modify existing HVAC system as required for new wall configurations
and to meet all applicable codes

 

3.               Provide all safety systems and items required, such as
exit signs, emergency lights, fire extinguishers, smoke detectors, sprinkler
heads and fire alarms, to meet all applicable codes. All systems to be tied into
building system as required.

 

4.               All Interior partitions to match building standard
unless noted otherwise.

 

5.               All new interior doors, frames, and hardware to match
existing unless noted otherwise. All hardware is to be lever type.

 

6.               Ceiling tile and grid is existing to remain. Replace
any damaged or discolored tile.

 

7.     Reuse all building standard materials. Salvage where possible.
Coordinate the use of any stockpiled building standard materials with building
representative.

 

ALLOW FOR:

 

New dedicated duplex wall
outlets.

New duplex wall outlets

Voice/data wall outlets

New dual wall switches

Existing 2x4 light
fixtures to be relocated

New fluorescent downlights

 

KEYED NOTES:

 

1.               Replace existing wood door with new paired ~4”
tempered glass doors with polished stainless steel trim & push/pull.

 

2.               Remove existing plastic laminate top and replace with
new, relocate existing base & wail cabs from demo.

 

3.               Provide for exhaust fan with thermostat with 24 x 24
aluminum floor louver.

 

4.               Add in-wail 2 1⁄2’ sound batt insulation (Remove GWB as
required). Also add 2 Vs” sound batt above ceiling through-out room.

 

5.               Provide & Install new 24” wide dishwasher.
Remove & modify base cabinets, provide for water & drain
lines

 

 

EXHIBIT “B-I”

PRELIMINARY PLANS

 

GENERAL FINISH NOTES:

 

1.               Provide and Install new building standard carpet &
rubber base through-out (existing suite & expansion) except at Work
Room, Coffee1 File & Storage Rooms which are to receive VCT flooring.

 

A. Carpet allowance to be
$20.00 per sq. yd. installed.

B. VCT allowance to be
$2.50 per sq. ft. Installed.

 

2.               All partitions to be prepared and painted with 2 coats
of Interior latex enamel, egg shell finish.(existing suite &
expansion)

 

Exhibit includes a
floor plan and could not be included in this document as is not convertible to
HTML format for submission to the SEC. Copy of plans may be requested from
investor relations if so required.

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