Document:

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                                                                   EXHIBIT 10.11

THIS PROMISSORY NOTE AND THE SHARES ISSUABLE UPON CONVERSION HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS (COLLECTIVELY, THE "ACTS"), AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, ASSIGNED OR DISPOSED OF EXCEPT PURSUANT TO REGISTRATION
UNDER SUCH ACTS OR UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL, OR
OTHER EVIDENCE REASONABLY SATISFACTORY TO THE CORPORATION, THAT SUCH
REGISTRATION IS NOT REQUIRED.

                       SECURED CONVERTIBLE PROMISSORY NOTE

$2,000,000.00                   Austin, Texas                   January 14, 2000

         FOR VALUE RECEIVED, the undersigned, MSI Holdings, Inc., a Utah
corporation ("Borrower"), promises to pay to the order of TSG Financial Limited
Partnership ("Lender"), the sum of Two Million and No/100 Dollars
($2,000,000.00) or such lesser amount as is actually advanced by Lender to
Borrower, with interest from the date of advancement on the unpaid balance
hereof from time to time remaining unpaid at the prime rate per annum, until
maturity (the "Note"), in (i) lawful money of the United States of America or
(ii) equity securities of the Borrower as and to the extent provided herein,
both principal and interest being payable at the address designated in numbered
paragraph 13 below or at such other place as Lender may, from time to time,
designate in writing. For purposes of this Note, "prime rate" shall mean the
prime rate published in the Wall Street Journal newspaper.

         The principal of this Note shall mature and be due and payable on the
earliest to occur of (i) the closing of a Financing (as defined in numbered
paragraph 1 below) or (ii) June 30, 2000. All accrued and unpaid interest shall
be payable in arrears at the maturity of the principal of this Note (whether at
scheduled maturity, upon acceleration of maturity following an "Event of
Default" (as defined in the Security Agreement referred to below) or otherwise).

         All past due principal and accrued interest on this Note shall bear
interest from maturity (whether at scheduled maturity, upon acceleration of
maturity following an Event of Default or otherwise) until paid at the lesser of
(i) the rate of 18% per annum or (ii) the highest rate for which Borrower may
legally contract under applicable law. All payments hereunder shall be payable
in lawful money of the United States of America which shall be legal tender for
public and private debts at the time of payments.

         This Note evidences indebtedness incurred by Borrower for interim
financing provided to Borrower prior to the consummation of a Financing, and is
subject to the terms of a Security Agreement dated as of January 12, 2000
between Borrower and Lender (the "Security Agreement").

         1. Conversion; Right of Offset and Reduction. If Borrower issues or
sells any preferred stock, common stock or other stock or similar securities or
any security convertible

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into or exchangeable for preferred stock, common stock or other stock or similar
securities ("Equity Securities") with aggregate proceeds to the Borrower in
excess of $5 million during the term of this Note (a "Financing"), all or any
portion of the unpaid principal of this Note, plus accrued interest hereon,
shall be convertible, at the option of the holder hereof, into the same class or
series of Equity Securities as are issued and sold by Borrower in such Financing
(or a class or series of Equity Securities identical in all respects to and
ranking pari passu with the class or series of Equity Securities issued and sold
in such Financing) at a price per share or unit equal to the lowest price per
share or unit at which such Equity Securities were issued and sold in such
Financing. Alternatively, any time prior to the payment of this Note, Lender
shall be entitled to set off against and reduce the principal amount outstanding
under this Note, and any payment of accrued but unpaid interest hereunder, by
the amount of any obligation of Lender to Borrower for the purchase price of
Equity Securities offered for sale by Borrower and purchased by Lender.
Effective as of the date of such set-off and reduction, interest will cease to
accrue on the principal amount hereof so set-off against and reduced.

         2. Prepayments. This Note may be prepaid by Borrower in whole or in
part without the consent of the holder and without prepayment penalty of any
kind; provided, that upon and as a condition to any such prepayment, Borrower
shall execute and deliver to the holder a warrant or other agreement, in form
and substance satisfactory to the holder, entitling the holder to purchase
Equity Securities in a Financing in an amount up to one-half (1/2) the prepaid
principal amount of this Note upon the terms and conditions described in
numbered paragraph 1 above and the remaining one-half (1/2) of the prepaid
principal amount to be paid in lawful money of the United States of America.

         3. Default; Remedies. The entire unpaid principal balance of this Note
shall immediately be due and payable upon the occurrence of any one or more of
the Events of Default, as defined in the Security Agreement.

         4. No Waiver; Cumulative Rights. No delay on the part of the holder of
this Note in the exercise of any power or right under this Note or under any
other instrument executed pursuant hereto shall operate as a waiver thereof, nor
shall a single or partial exercise of any power or right preclude other or
further exercise thereof or the exercise of any other power or right.

         5. Waiver. Except as otherwise provided in the Security Agreement,
Borrower and all endorsers, sureties and guarantors of this Note waive demand,
presentment, protest, notice of dishonor, notice of nonpayment, notice of
intention to accelerate, notice of acceleration, notice of protest and any and
all lack of diligence or delay in collection or the filing of suit hereon which
may occur, and agree to all extensions and partial payments, before or after
maturity, without prejudice to the holder hereof.

         6. Collection Costs. In the event that, upon an Event of Default, any
amount under this Note is collected in whole or in part through suit,
arbitration or mediation, then and in any such case there shall be added to the
unpaid principal balance hereof all costs of collection, (including, but not
limited to, reasonable attorneys' fees and expenses) whether or not suit is
filed.

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         7. Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of Texas.

         8. Headings. The headings of the sections of this Note are inserted for
convenience of reference only and shall not be deemed to constitute a part
hereof.

         9. Usury. All agreements between Borrower and the holder of this Note,
whether now existing or hereafter arising and whether written or oral, are
expressly limited so that in no contingency or event whatsoever, whether by
acceleration of the maturity of this Note or otherwise, shall the amount paid,
or agreed to be paid, to the holder hereof for the use, forbearance or detention
of the money to be loaned hereunder or otherwise, exceed the maximum amount
permissible under applicable law. If from any circumstances whatsoever
fulfillment of any provision of this Note or of any other document evidencing,
securing or pertaining to the indebtedness evidenced hereby, at the time
performance of such provision shall be due, shall involve transcending the limit
of validity prescribed by law, then ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity, and if from any such
circumstances the holder of this Note shall ever receive anything of value as
interest or deemed interest by applicable law under this Note or any other
document evidencing, securing or pertaining to the indebtedness evidenced hereby
or otherwise an amount that would exceed the highest lawful rate, such amount
that would be excessive interest shall be applied to the reduction of the
principal amount owing under this Note or on account of any other indebtedness
of Borrower to the holder hereof relating to this Note, and not to the payment
of interest, or if such excessive interest exceeds the unpaid balance of
principal of this Note and such other indebtedness, such excess shall be
refunded to Borrower. In determining whether or not the interest paid or payable
with respect to any indebtedness of Borrower to the holder hereof, under any
specific contingency, exceeds the highest lawful rate, Borrower and the holder
hereof shall, to the maximum extent permitted by applicable law, (i)
characterize any nonprincipal payment as an expense, fee or premium rather than
as interest, (ii) amortize, prorate, allocate and spread the total amount of
interest throughout the full term of such indebtedness so that the actual rate
of interest on account of such indebtedness is uniform throughout the term
thereof and/or (iii) allocate interest between portions of such indebtedness, to
the end that no such portion shall bear interest at a rate greater than that
permitted by law. The terms and provisions of this paragraph shall control and
supersede every other conflicting provision of all agreements between Borrower
and the holder hereof.

         10. Limitations on Additional Indebtedness. Until this Note has been
paid or satisfied, Borrower will not incur, create, assume or suffer to exist
any indebtedness, without the written consent of Lender, except:

                  (a) the Note and other indebtedness to Lender, and any
guarantee thereof or suretyship obligation thereof;

                  (b) accounts payable (for the deferred purchase price of
property or services) from time to time incurred in the ordinary course of
business;

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                  (c) indebtedness under one or more subordinated promissory
notes, provided such indebtedness is subordinated to the Note and other
indebtedness to Lender on terms satisfactory to Lender; and

                  (d) indebtedness of Borrower (i) under equipment and office
leases and (ii) secured by purchase money liens from time to time incurred in
the ordinary course of business.

         11. Successors and Assigns. All of the stipulations, promises and
agreements in this Note made by or on behalf of Borrower shall bind the
successors and assigns of Borrower, whether so expressed or not, and inure to
the benefit of the successors and assigns of Borrower and Lender. Any assignee
of Borrower or Lender shall agree in writing prior to the effectiveness of such
assignment to be bound by the provisions hereof.

         12. Severability. In the event any one or more of the provisions
contained in this Note shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision hereof, and this Note shall be construed as
if such invalid, illegal or unenforceable provision had never been contained
herein.

         13. Notices. All notices and other communications hereunder shall be in
writing or by telex, telegram or facsimile (with confirmed answerback), and
shall be deemed to have been duly made when delivered in person or sent by
telex, telegram, facsimile, same day or overnight courier, or 72 hours after
having been deposited in the United States first class or registered or
certified mail return receipt requested, postage prepaid, to a party at the
address set forth below (which may be changed in accordance with these notice
procedures):

                  If to Lender:

                           TSG Financial Limited Partnership
                           2700 Via Fortuna, Suite 400
                           Austin, Texas 78746
                           Attn: Mr. Michael L. McAllister
                           Fax: (512) 306-1528

                  If to Borrower:

                           MSI Holdings, Inc.
                           1121 East 7th Street
                           Austin, Texas 78701
                           Attn: Robert J. Gibbs
                           Fax: (512) 473-2371

         14. Authorization. The execution, delivery and issuance of this Note
and the reservation of shares to which this Note is convertible has been duly
authorized by the Board of Directors of the Borrower. This Note constitutes a
valid and legally binding obligation of the

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Borrower and no consent or approval is required in connection with the
consummation of the transactions contemplated by this Note which has not been
obtained by Borrower.

                            [SIGNATURE PAGE FOLLOWS]

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                  IN WITNESS WHEREOF, the undersigned has executed this Secured
Convertible Promissory Note on and as of the date first set forth above.

                                             MSI HOLDINGS, INC.

                                             By:
                                                --------------------------------
                                                Robert J. Gibbs
                                                Chief Executive Officer

                 [SIGNATURE PAGE TO CONVERTIBLE PROMISSORY NOTE]<PAGE>   1
                                                                   EXHIBIT 10.12

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Security Agreement") is made and entered
into as of January 14, 2000 (the "Effective Date") by and between MSI Holdings,
Inc., a Utah corporation ("Debtor"), and TSG Financial Limited Partnership (the
"Secured Party").

     1.  Creation of Security Interest. Debtor hereby grants to the Secured
Party a security interest in the Collateral described in Section 2 of this
Security Agreement to secure performance and payment of all obligations and
indebtedness of Debtor to the Secured Party, including, but not limited to, the
obligations and indebtedness of Debtor to the Secured Party described in Section
3 of this Security Agreement (collectively, the "Indebtedness"). Upon payment or
satisfaction of the Indebtedness, this Security Agreement will have no further
effect, and the Secured Party shall release it and the Collateral.

     2.  Collateral. In order to secure the payment when due of any and all
Indebtedness, Debtor hereby pledges to the Secured Party and grants to the
Secured Party a security interest in and to the following properties
(collectively, the "Collateral"):

         (a) All of Debtor's inventory, both now owned and hereafter acquired,
including, without limitation, all goods, merchandise, raw materials, goods in
process, finished goods and other tangible personal property both now owned and
hereafter acquired by Debtor and held for sale or lease or furnished or to be
furnished under contracts of service or used or consumed in Debtor's business,
and all proceeds thereof, as well as all additions and accessions thereto and
substitutions and replacements for any thereof;

         (b) All of Debtor's tangible personal property, both now owned and
hereafter acquired, including, without limitation, all equipment, consumer
goods, furniture, fixtures, machinery, operating equipment, assembly and
production equipment, engineering and electrical equipment, and all proceeds of
any thereof, as well as all additions and accessions thereto and substitutions
and replacements for any thereof;

         (c) All of Debtor's intangible personal property, cash on hand and cash
in and deposits with banks or other financial institutions, whether now owned or
hereafter acquired, including, but not limited to, all accounts, chattel paper,
documents, instruments and general intangibles, as those terms are defined in
the Texas Business and Commerce Code, Chapter 9, as in effect on the date
hereof, all contracts, shares of stock, bonds, notes, evidences of indebtedness
and other securities, bills, notes and accounts receivable, interests in life
insurance policies, trademarks, trade names, patents, patent rights, copyrights,
claims, credits, choses in action, licenses, permits, franchises and grants;

         (d) All rights, title and interests, now owned or hereafter acquired,
to all other property and assets, real, personal or mixed;

         (e) All awards in respect of any "Taking" of any thereof (as used
herein, a "Taking" shall mean a taking, conveyance or sale of all or any part of
the Collateral or any interest therein or right accruing thereto, as a result
of, or in lieu or anticipation of, the exercise of the right of appropriation,
confiscation, condemnation or eminent domain);

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         (f) All rents, income and issues arising from or in connection with,
and all proceeds of, any of the foregoing; and

         (g) All other real, personal and mixed (tangible and intangible)
property of every character and wherever situated, now owned and hereafter
acquired by Debtor.

     3.  Payment Obligations of Debtor.

         (a) Debtor shall pay to the Secured Party any sum or sums due or which
may become due pursuant to any promissory note or notes now or hereafter
executed by Debtor to evidence Debtor's indebtedness to the Secured Party,
including, without limitation, the Secured Convertible Promissory Note of Debtor
dated as of even date herewith payable to the order of the Secured Party in the
original principal amount of Two Million and no/100's Dollars ($2,000,000.00)
(the "Note"), in accordance with the terms of such Note and the terms of this
Security Agreement, as well as all other indebtedness now due and owing the
Secured Party, and any and all indebtedness hereafter to become due and owing
the Secured Party, whether evidenced by note or otherwise, and any and all
renewals, rearrangements or extensions of said indebtedness.

         (b) Debtor shall account fully and faithfully to the Secured Party for
proceeds from disposition of the Collateral in any manner and, following an
Event of Default (as defined below) hereunder, shall pay or turn over promptly
in cash, negotiable instruments, drafts, assigned accounts or chattel paper all
the proceeds from each sale to be applied to Debtor's Indebtedness to the
Secured Party, subject, if other than cash, to final payment or collection.
Application of such proceeds to Indebtedness of Debtor shall be in the sole
discretion of the Secured Party, provided such application of proceeds is made
by the Secured Party in a reasonable manner.

         (c) Following an Event of Default hereunder or under the Note, Debtor
shall pay to the Secured Party on demand all expenses and expenditures
(including, but not limited to, reasonable fees and expenses of legal counsel)
incurred or paid by the Secured Party in exercising or protecting its interests,
rights and remedies under this Security Agreement, plus interest thereon at the
lesser of (i) 18% per annum or (ii) the highest rate of interest then allowed by
law.

         (d) Debtor shall pay immediately, without notice, the entire unpaid
Indebtedness of Debtor to the Secured Party whether created or incurred pursuant
to this Security Agreement or otherwise, upon Debtor's default under Section 5
of this Security Agreement.

     4.  Representations, Warranties and Agreements of Debtor.

         (a) All information supplied and statements made by Debtor in any
financial, credit or accounting statement or application for credit prior to,
contemporaneously with or subsequent to the execution of this Security Agreement
are and shall be true, correct, complete, valid and genuine in all material
respects.

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         (b) Except for the security interest granted in this Security
Agreement, no financing statement covering the Collateral or its proceeds is on
file in any public office and there is no lien, security interest or encumbrance
in or on the Collateral.

         (c) The location where Debtor maintains its chief executive office is
1121 East 7th Street, Austin, Texas 78701.

         (d) The Collateral shall remain in Debtor's possession or control at
all times at Debtor's risk of loss and be kept at the address shown in paragraph
4(c) above, where the Secured Party may inspect it at any time, except for its
temporary removal in connection with its ordinary use or unless Debtor notifies
the Secured Party in writing and the Secured Party consents in writing in
advance of its removal to another location.

         (e) Until an Event of Default, Debtor may use the Collateral in any
lawful manner not inconsistent with this Security Agreement or with the terms or
conditions of any policy of insurance thereon and except for accounts and
contract rights may also sell the Collateral in the ordinary course of business.
The Secured Party security interest shall attach to all proceeds of sales and
other dispositions of the Collateral.

         (f) Debtor will promptly notify the Secured Party in writing of any
change in the location of its chief executive office as set forth in paragraph
4(c) of this Security Agreement.

         (g) Debtor shall pay prior to delinquency all material taxes, charges,
liens and assessments against the Collateral except those Debtor is contesting
in good faith and for which adequate accruals have been made, and upon Debtor's
failure to do so after ten days' prior written notice, the Secured Party at its
option may pay any of them and shall be the sole judge of the legality or
validity thereof and the amount necessary to discharge the same. Such payment
shall become part of the Indebtedness secured by this Security Agreement and
shall be paid to the Secured Party by Debtor immediately and without demand,
with interest thereon at the rate set forth in paragraph 3(c) hereof.

         (h) Debtor will have and maintain insurance at all times with respect
to all Collateral against risks of fire, theft and such other risks as the
Secured Party may reasonably require, including extended coverage, and in the
case of motor vehicles, including collision coverage. Such insurance policies
shall also contain a standard mortgagee's endorsement providing for payment of
any loss to the Secured Party. All policies of insurance shall provide for ten
days' written minimum cancellation notice to the Secured Party. Debtor shall
furnish the Secured Party evidence of compliance with the foregoing insurance
provisions. Following an Event of Default, the Secured Party may act as
attorneys for Debtor in obtaining, adjusting, settling and canceling such
insurance and endorsing any drafts drawn by insurers of the Collateral. The
Secured Party may apply any proceeds of such insurance which may be received by
it in payment on account of the obligations secured hereby, whether due or not.

         (i) Debtor shall, at its own expense, do, make, procure, execute and
deliver all acts, things, writings and assurances as the Secured Party may at
any time reasonably request to protect, assure or enforce its interests, rights
and remedies created by, provided in or emanating from this Security Agreement.

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         (j) Except in the ordinary course of business, Debtor shall not sell,
lend, rent, lease or otherwise dispose of the Collateral or any interest therein
except as authorized in this Security Agreement or in writing by the Secured
Party, and Debtor shall keep the Collateral, including the proceeds thereof,
free from unpaid charges, including taxes, and from liens, encumbrances and
security interests other than that of the Secured Party.

         (k) Debtor shall sign and execute alone or with the Secured Party any
Financing Statement or other document or procure any document and pay all
connected costs reasonably incurred, necessary to protect the security interest
under this Security Agreement against the rights or interests of third persons.

         (l) Debtor shall at all times keep the proceeds of the Collateral
separate and distinct from other property of Debtor and shall keep accurate and
complete records of the Collateral and its proceeds.

         (m) Debtor is the owner of the Collateral free of all liens, claims and
encumbrances, except as created by this Security Agreement and the security
interest granted in favor of the Secured Party, EXCEPT AS OTHERWISE SET FORTH ON
SCHEDULE A.

         (n) As to that portion of the Collateral which is accounts, Debtor
represents, warrants and agrees with respect to each such account that:

               (i) The account arose from the performance of services by Debtor
         which have been fully and satisfactorily performed or from the lease
         or the absolute sale of goods by Debtor in which Debtor had the sole
         and complete ownership, and the goods have been shipped or delivered
         to the account debtor.

               (ii) The account is not subject to any prior or subsequent
         assignment, claim, lien or security interest other than that of the
         Secured Party.

               (iii) The account is not subject to set-off, counterclaim,
         defense, allowance or adjustment other than discounts for prompt
         payment shown on the invoice, or to dispute, objection or complaint by
         the account debtor concerning his liability on the account, and the
         goods, the sale or lease of which gave rise to the account, have not
         been returned, rejected, lost or damaged.

               The account arose in the ordinary course of Debtor's business,
         and no notice of bankruptcy, insolvency or financial hardship of the
         account debtor has been received by Debtor.

         (o) Debtor further represents and warrants as follows:

               (i) Organization. Debtor is a corporation duly incorporated,
         validly existing and in good standing under the laws of its
         jurisdiction of organization. Debtor has the corporate power to own
         its properties and to

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          carry on its business as now being conducted and as proposed to be
          conducted and is duly qualified to do business and is in good standing
          in each jurisdiction in which the failure to be so qualified and in
          good standing would have a material adverse effect on its business,
          financial condition, results of operations or prospects;

               (ii) Authority. Debtor has all requisite corporate power and
          authority to execute and deliver the Note and this Security Agreement
          and to carry out and perform its obligations thereunder and hereunder;

               (iii) No Conflicts. The execution, delivery and performance of
          the Note and this Security Agreement will not result in any violation
          of, conflict with, or constitute a breach or default or give rise to a
          right of termination, cancellation or acceleration under any provision
          of (A) Debtor's charter or governing documents; (B) any judgment,
          decree or order or any agreement, contract, understanding, indenture
          or other instrument to which Debtor is a party or by which it or its
          assets may be bound; or (C) any statute, rule or governmental
          regulation to which Debtor may be subject; and

               (iv) Enforceability. The Note and this Security Agreement
          constitute the valid and binding obligations of Debtor, enforceable
          against Debtor in accordance with their respective terms.

     5.   Events of Default. Debtor shall be in default under this Security
Agreement upon the happening of any condition or event set forth below (each, an
"Event of Default"):

          (a) Debtor's failure to pay any Indebtedness secured by this Security
Agreement within ten business days after such Indebtedness becomes due in
accordance with the terms of this Security Agreement or the Note.

          (b) Default by Debtor in punctual performance of any of the
obligations, covenants, terms or provisions contained or referred to in this
Security Agreement or in any note secured hereby, if such default shall continue
unremedied for a period of twenty business days following written notice of
default by the Secured Party to Debtor.

          (c) Any warranty, representation or statement contained in this
Security Agreement or made or furnished to the Secured Party by or on behalf of
Debtor in connection with this Security Agreement or to induce the Secured Party
to make a loan to Debtor proves to have been false in any material respect when
made or furnished.

          (d) Loss, theft, substantial damage, destruction, sale (except as
authorized in this Security Agreement) or encumbrance to or of any material
portion of the Collateral, or the making of any levy, seizure or attachment
thereof or thereon.

          (e) Debtor's dissolution, termination of existence, insolvency or
business failure; the appointment of a receiver of all or any part of the
property of Debtor; an assignment for the benefit of creditors by Debtor; or the
commencement of any proceeding under any

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bankruptcy or insolvency laws by or against Debtor or any guarantor, surety or
endorser for Debtor which results in the entry of an order for relief or which
remains undismissed, undischarged or unbonded for a period of 60 days or more.

          (f) Any statement of the financial condition of Debtor or of any
guarantor, surety or endorser of any liability of Debtor to the Secured Party
submitted to the Secured Party by Debtor or any such guarantor, surety or
endorser proves to be false in any material respect.

     6.   Secured Party' Rights and Remedies.

          (a) Rights Exclusive of Default.

               (i) This Security Agreement, the Secured Party's rights hereunder
          or the Indebtedness hereby secured may be assigned by the Secured
          Party (or any subsequent assignee) from time to time, and in any such
          case the assignee shall be entitled to all of the rights, privileges
          and remedies granted in this Security Agreement to the Secured Party;
          and in such event Debtor will assert no claims or defenses, other than
          a defense that it has performed its obligations under the Note and
          this Security Agreement, it may have against the Secured Party against
          the assignee, except those granted in this Security Agreement.

               (ii) The Secured Party may enter Debtor's premises at any
          reasonable time without interruption of Debtor's business and without
          any breach of the peace to inspect the Collateral and Debtor's books
          and records pertaining to the Collateral, and Debtor shall assist the
          Secured Party in making any such inspection; provided, that the
          Secured Party and its agents shall keep confidential all Debtor's
          proprietary information and confidential information and shall not use
          such proprietary information and confidential information except in
          connection with enforcing the Secured Party's rights under this
          Security Agreement or unless required to disclose such information
          pursuant to a judicial or governmental order.

               (iii) The Secured Party may execute, sign, endorse, transfer or
          deliver in the name of Debtor, notes, checks, drafts or other
          instruments for the payment of money and receipts, certificates of
          origin, applications for certificates of title or any other documents,
          necessary to evidence, perfect or upon an Event of Default realize
          upon the security interest and obligations created by this Security
          Agreement.

               (iv) At its option, the Secured Party may discharge taxes, liens
          or security interests or other encumbrances at any time levied or
          placed on the Collateral, may pay for the insurance on the Collateral
          and may pay for the maintenance and preservation of the Collateral.
          Debtor agrees to reimburse the Secured Party on demand for any payment
          made, or expense incurred by the Secured Party pursuant to the
          foregoing authorization, plus interest thereon at the rate set forth
          in paragraph 3(c) hereof.

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          (b) Rights in Event of Default. In addition to any other rights which
the Secured Party may have at law or hereunder, upon the occurrence of an Event
of Default, and at any time thereafter, the Secured Party may:

               (i) Declare all obligations secured hereby immediately due and
          payable and shall have the rights and remedies of a "secured party"
          under the Texas Business and Commerce Code, including, without
          limitation, the right to sell, lease or otherwise dispose of any or
          all of the Collateral and the right to take possession of the
          Collateral, and for that purpose the Secured Party may enter any
          premises on which the Collateral or any part thereof may be situated
          and remove the same therefrom, so long as the same may be accomplished
          without a breach of the peace. The Secured Party may require Debtor to
          assemble the Collateral and make it available to the Secured Party at
          a place to be designated by the Secured Party which is reasonably
          convenient to the parties. Unless the Collateral is perishable or
          threatens to decline speedily in value or is of a type customarily
          sold on a recognized market, the Secured Party will send Debtor
          reasonable notice of the time and place of any public sale thereof or
          of the time after which any private sale or other disposition thereof
          is to be made. The requirement of sending reasonable notice shall be
          met if such notice is given to Debtor at least ten days before the
          time of the sale or disposition. Expenses of retaking, holding,
          preparing for sale, selling or the like shall include the Secured
          Party's reasonable fees and expenses (including, but not limited to,
          reasonable fees and expenses of legal counsel), and Debtor agrees to
          pay such expenses, plus interest thereon at the rate set forth in
          paragraph 3(c) hereof. Debtor shall remain liable for any deficiency
          hereunder or under the Note;

               (ii) Notify the account of debtors or obligors of any accounts,
          chattel paper, negotiable instruments or other evidences of
          indebtedness remitted by Debtor to the Secured Party as proceeds to
          pay the Secured Party directly;

               (iii) Demand, sue for, collect or make any compromise or
          settlement with reference to the Collateral as the Secured Party, in
          its sole discretion, chooses; and

               (iv) Remedy any default and may waive any default without waiving
          or being deemed to have waived any other prior or subsequent default.

     7.   Miscellaneous.

          (a) Notices. All notices and other communications hereunder shall be
in writing or by telegram or facsimile, and shall be deemed to have been duly
made when delivered in person or sent by telegram or facsimile (with confirmed
receipt), same day or overnight courier, or 72 hours after having been deposited
in the United States first class or registered or

                                       7

<PAGE>   8

certified mail return receipt requested, postage prepaid, to a party at the
address set forth below (which may be changed in accordance with these notice
procedures):

      If to the Secured Party:

                 TSG Financial Limited Partnership
                 2700 Via Fortuna, Suite 400
                 Austin, TX  78746
                 Attn:  Mr. Michael L. McAllister
                 Fax:  (512) 306-1528

         If to Debtor:

                 MSI Holdings, Inc.
                 1121 East 7th Street
                 Austin, Texas 78701
                 Attn:  Mr. Robert J. Gibbs
                 Fax:  (512) 473-2371

         (b) Construction. "Secured Party" and "Debtor", as used in this
instrument, include the administrators, successors, representatives, receivers,
trustees and assigns of such parties.

         (c) Headings. The headings appearing in this instrument have been
inserted for convenience of reference only and shall be given no substantive
meaning or significance whatever in construing the terms and provisions of this
instrument. Terms used in this instrument which are defined in the Texas
Business and Commerce Code are used with the meanings as therein defined.

         (d) Governing Law. The law governing this secured transaction shall be
that of the State of Texas in force at the date of this instrument.

         (e) Further Assurances. All property acquired by Debtor after the date
hereof, which by the terms hereof is required or intended to be subjected to the
lien of this Security Agreement, shall, immediately upon the acquisition thereof
and without further mortgage, conveyance or assignment, become subject to the
lien of this Security Agreement as fully as though now owned by Debtor and
specifically described herein. Nevertheless, Debtor will do all such further
acts and execute, acknowledge and deliver all such further conveyances,
mortgages, financing statements and assurances as the Secured Party shall
reasonably require for accomplishing the purposes of this Security Agreement.

         (f) Expenses. Debtor will pay to the Secured Party all reasonable
expenses and expenditures, including fees and expenses of counsel to the Secured
Party, and other expenses incurred or paid by the Secured Party in connection
with any default or non-payment when due and payable in collection of the Note.

                                       8

<PAGE>   9

         (g) Waiver. Debtor hereby waives all rights to which Debtor may or
might otherwise become entitled to with respect to the provisions of Section
34.02 and 34.03 of the Texas Business and Commerce Code, as amended, and agrees
that the rights of Debtor pursuant to the provisions of Section 34.04 of the
Texas Business and Commerce Code, as amended, shall be subject to, secondary,
subordinate and inferior in all respects to the rights of each Secured Party
pursuant to this Security Agreement.

         (h) Rights Cumulative; No Waiver. The rights and remedies of the
Secured Party hereunder are cumulative, and the exercise (or waiver) of any one
or more of the remedies provided for herein shall not be construed as a waiver
of any of the other rights and remedies of the Secured Party. No delay on the
part of the holder of this Security Agreement in the exercise of any power or
right under this Security Agreement or under any other instrument executed
pursuant hereto shall operate as a waiver thereof, nor shall a single or partial
exercise of any power or right preclude other or further exercise thereof or the
exercise of any other power or right.

         (i) Successors and Assigns. No assignment of this Security Agreement
shall be made without the prior written consent of the Secured Party. Any
assignee of Debtor or the Secured Party shall agree in writing prior to the
effectiveness of such assignment to be bound by the provisions hereof. All of
the stipulations, promises and agreements in this Security Agreement made by or
on behalf of Debtor shall bind the successors and permitted assigns of Debtor,
whether so expressed or not, and inure to the benefit of the successors and
permitted assigns of Debtor and the Secured Party.

         (j) Severability. In the event any one or more of the provisions
contained in this Security Agreement shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision hereof, and this Security
Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein.

                            [SIGNATURE PAGE FOLLOWS]

                                       9

<PAGE>   10

         IN WITNESS WHEREOF, the undersigned parties have executed this Security
Agreement on and as of the Effective Date.

                                       DEBTOR:

                                       MSI HOLDINGS, INC.

                                       By:
                                            -----------------------------------
                                            Robert J. Gibbs
                                            Chief Executive Officer

                                       SECURED PARTY:

                                       TSG FINANCIAL LIMITED PARTNERSHIP

                                       By:
                                            -----------------------------------
                                            Michael L. McAllister
                                            Executive Vice President and
                                            Managing Director

                                       10

<PAGE>   11

                        SCHEDULE A TO SECURITY AGREEMENT

Secured debt consists of:

Austin Community Development Corporation $100,000 equipment loan dated May 29,
1996, secured by equipment and accounts receivable. December 31, 1999 balance is
$50,707.

Austin Community Development Corporation $100,000 working capital loan dated
June 14, 1995, secured by equipment and accounts receivable. December 31, 1999
balance is $14,583.

Neighborhood Commercial Management Program $75,000 loan from City of Austin
dated June 8, 1995, secured by second lien on equipment and accounts receivable.
December 31, 1999 balance is $17,708.

Neighborhood Commercial Management Program $250,000 loan from City of Austin
dated August 12, 1996, secured by second lien on equipment and accounts
receivable. December 31, 1999 balance is $96,284.

Note:
The Collateral discussed in Section 4(m) does not include leased equipment.

                                       11

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