Document:

UNIT
      PURCHASE AGREEMENT

     

    By
      and Between

     

    The
      Individuals listed on Annex
      A

    (collectively,
      the “Seller”),

     

    and

     

    ISI
      Controls, Ltd., A Texas limited partnership,

    (the
      “Purchaser”)

     

    Dated
      as of January 7, 2008

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    UNIT
      PURCHASE
      AGREEMENT

     

    THIS
      UNIT
      PURCHASE AGREEMENT (this “Agreement”),
      dated
      as of January 7, 2008 (the “Effective
      Date”),
      is
      by, between and among the owners and members listed on Annex
      A
      (collectively, the “Seller”)
      of
      Com-Tec Security, LLC, a limited liability company organized under the laws
      of
      Wisconsin (the
      “Company”),
      ISI
      Controls, Ltd., a Texas limited partnership, (including
      any permitted assignee thereof pursuant to Section
      12.11,
      the
“Purchaser”)
      and
      Jeffrey E. Corcoran,
      who
      shall be the representative of the Seller (the “Seller
      Representative”).
      Certain
      capitalized terms used in this Agreement are defined in Article
      XI
      and
      elsewhere in this Agreement.

     

    BACKGROUND

     

    The
      Company
      is
      engaged in the business of custom design, manufacture and installation of
      electronic security and communication systems
      (the
“Business”).
      The
      Seller desires to sell, and the Purchaser desires to purchase, all of the
      outstanding units of ownership of the Company upon the terms and subject to
      the
      conditions set forth in this Agreement.

     

    The
      Seller and the Purchaser desire to make certain representations, warranties,
      covenants and agreements in connection with the purchase and sale contemplated
      by this Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing and mutual representations,
      warranties, covenants and agreements hereinafter set forth, and for other
      consideration, the receipt and sufficiency of which are acknowledged, the
      parties to this Agreement agree as follows:

     

    ARTICLE
      I.

    PURCHASE
      AND SALE OF THE UNITS

     

    Section
      1.1. Closing.
      The
      consummation of the transactions contemplated by this Agreement (the
“Closing”)
      will
      take place at the offices of the Purchaser at 12903 Delivery Drive, San Antonio,
      Texas at 10:00 a.m., local time, to be effective at 11:59 PM on the 31st day
      of
      January, 2008, or at such other place and at such other time and date as may
      be
      mutually agreed upon by the Purchaser and the Seller. The
      date
      and time at which the Closing is effective, is referred to in this Agreement
      as
      the “Closing
      Date.”
All
      proceedings to be taken and all documents to be executed and delivered by all
      parties at the Closing will be deemed to have been taken, executed and delivered
      simultaneously, and no proceedings will be deemed taken nor any documents
      executed or delivered until all have been taken, executed and
      delivered.

     

    Section
      1.2. Purchase
      and Sale of the Units.
      On the
      terms and subject to the conditions set forth in this Agreement, at the Closing,
      the Seller will sell, assign, transfer, convey and deliver to the Purchaser,
      and
      the Purchaser will purchase, acquire and accept from the Seller, an aggregate
      one hundred (100) units of ownership of the Company (the “Units”),
      which
      such Units represent 100% ownership of the Company.

     

    Section
      1.3. Purchase
      Price.
      The
      aggregate consideration (the “Purchase
      Price”)
      to be
      paid at the Closing by the Purchaser to the Seller for the purchase and sale
      of
      the Units, subject to adjustment as set forth in Section
      1.4
      below,
      is $6,515,000 to be paid as follows: 

     

    (a)  payment
      by the Purchaser, by cashier’s check or wire transfer to the accounts designated
      by each Seller at least ten (10) business days prior to the Closing Date, of
      an
      aggregate amount (the “Cash
      Purchase Price”)
      equal
      to $3,000,000, and 

    
      
        
        

      

      
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    (b)  delivery
      of a secured, subordinated promissory note (the “Promissory
      Note”)
      in the
      form attached hereto as Exhibit
      A,
      which
      shall be in an amount equal to $3,515,000, subject to adjustment.

     

    Section
      1.4. Adjustments
      to Purchase Price.

     

    (a) Post-Closing
      Adjustments.
      The
      accounting firm of Clifton Gunderson, LLP, the Company’s auditor (the “Auditor”)
      shall be retained by the Purchaser, and prepare audited financial statements
      for
      the Company for the annual periods ending on December 31, 2006 (the “2006
      Financials’) and December 31, 2007 (“2007
      Financials”)
      and
      such financial statements shall comply with the qualitative requirements of
      Section 2.4. The Auditor, shall make the following calculations as promptly
      as
      practicable after the completion and delivery of the 2007 Financials, and report
      the results to the Purchaser and the Seller in writing, together with a summary
      of the calculations: 

     

    (i) Calculating
      Accounts Receivable.
      The
      Auditor shall determine the specific identity of, and the gross amount of,
      all
      unpaid accounts receivable of the Company as of the Closing (“2007
      Accounts Receivable”).
      For
      purposes of this Section 1.4, retainage shall not be deemed to be an account
      receivable unless and until such retainage has been invoiced as a collectible
      receivable.

     

    (ii) Final
      Working Capital Adjustment.
      The
      Auditor will also determine the Working Capital as of the Closing Date (the
      “Final
      Closing Working Capital”).
      If
      the Final Closing Working Capital is less than $1,592,000 (the “Original
      Estimated Working Capital”),
      the
      then principal balance of the Promissory Note shall be reduced by the difference
      between the Final Closing Working Capital and the Original Estimated Working
      Capital. The Purchase Price shall be correspondingly reduced. If the Final
      Closing Working Capital is equal to or greater than the Original Estimated
      Working Capital, there will be no adjustment to the Promissory Note or the
      Purchase Price. The term “Working Capital” shall be the Company’s current
      assets, less the Company’s current liabilities. The phrase “current assets”
shall be assets that are readily convertible, in the opinion of the Auditor,
      to
      cash within twelve (12) months of the Closing, and the phrase “current
      liabilities” shall be debts that, in the opinion of the Auditor, are likely to
      paid within twelve (12) months of the Closing.

     

    (iii) Accounts
      Receivable Adjustment.
      As
      promptly as practicable following December 31, 2008, the Parties will determine
      the amount of 2007 Accounts Receivable that were collected during the 12 month
      period following the Closing (the “2007
      A/R Collections”).
      The
      sum resulting by deducting the 2007 A/R Collections from the 2007 Accounts
      Receivable is the “A/R Adjustment.” The then outstanding principal balance of
      the Promissory Note shall be reduced by the full amount of the A/R Adjustment.
      After the A/R Adjustment has been calculated, and applied to the Promissory
      Note, the remaining uncollected 2007 Accounts Receivable shall be assigned
      to
      the Seller Representative.

     

    (iv) Backlog
      Adjustment.
      As
      promptly as practicable after the Closing Date, the Auditor will determine
      the
      backlog of the Company on the Closing Date (“Closing
      Backlog”).
      If
      the Closing Backlog is greater than $7,100,000, then any net reduction to the
      Purchase Price required pursuant to Sections
      1.4(a)(i), (ii) and (iii) above
      will be offset by the amount resulting from the following formula, but not
      to
      exceed $100,000:

    
      
        
        

      

      
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    (Closing
      Backlog - $7,100,000) x 0.025.

    

    (v) Accounting
      Treatments, Processes, and Procedures.
      Subject
      to determinations made by the Company’s auditor, Buyer shall not cause or permit
      the Company, after the Closing Date, to change, modify, or alter its internal
      accounting treatments, processes, and procedures in any way which are
      inconsistent with the Company’s internal accounting treatments, processes, and
      procedures before the Closing Date. Subject to determinations made by the
      Company’s auditor, all audits of the Company’s financial records, contemplated
      in this Section 1.4, shall be conducted on the basis of the Company’s pre- and
      post-Closing Date treatments, processes, and procedures being as similar as
      is
      reasonably possible.

     

    (vi) Closing
      Costs.
      All
      Closing Costs of the Company will be expensed by Company. All Closing Costs
      of
      the Company that are paid or accrued as of Closing will be added back to the
      calculation of Working Capital in an aggregate amount not to exceed $30,000.00.
      “Closing Costs” shall include only the accounting and legal fees incurred by
      Company (not Seller) directly related to the Closing of this Transaction. As
      an
      example (without limiting the forgoing) representation of the interests of
      the
      Seller in the drafting of the Definitive Agreement (and other documents related
      to the Transaction), and the commissions of Joe Valentine are not Closing Costs
      of the Company.

     

    (b) Alternative
      Determination.
      If the
      Auditor is unable to complete any calculation or determination required by
      this
Section
      1.4,
      such
      calculation or determination will instead be made by mutual agreement of the
      Purchaser and the Seller. 

     

    (c) Notice
      of Adjustment.
      Prior
      to making any adjustment set forth in Section
      1.4(a),
      the
      Purchaser will provide the Seller Representative written notice of such
      adjustment (the “Closing Adjustment”), including a calculation of how the
      adjustment was determined, and a reasonable opportunity to respond to
      same.

     

    (d) Final
      Determination; Notice of Dispute.
      A
      Closing Adjustment proposed by Purchaser in accordance with Section
      1.4(c)
      will be
      final, conclusive and binding on the Seller unless the Seller Representative
      provides a written notice (a “Dispute
      Notice”)
      to
      Purchaser within thirty (30) Business Days following the Seller Representative’s
      receipt of the Closing Adjustment, setting forth in reasonable detail (a) any
      item of the Closing Adjustment which the Seller Representative believes is
      incorrect and (b) the Seller Representative’s alternative calculation of (or the
      Seller Representative’s identification of a suspected defect in) the Closing
      Adjustment. Any item or amount to which no dispute is raised in the Dispute
      Notice will be final, conclusive and binding on the Seller. Any Dispute Notice
      must specify, with reasonable particularity, all facts that form the basis
      of
      such disagreements and all statements by Persons and documents relied upon
      by
      the Seller Representative as forming the basis of such
      disagreement.

    
      
        
        

      

      
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    (e) Dispute
      Resolution.
      If
      Seller Representative delivers a Dispute Notice, the Purchaser and the Seller
      Representative will attempt to resolve the matters raised in the Dispute Notice
      in good faith for no less than twenty (20) Business Days following delivery
      of
      the Dispute Notice (the “Resolution
      Period”).
      If
      the Purchaser and the Seller Representative cannot reach agreement regarding
      the
      matters raised in such Dispute Notice during the Resolution Period, then either
      the Purchaser or the Seller Representative may provide written notice to the
      other within twenty (20) Business Days following the end of the Resolution
      Period that it elects to submit the disputed items to a nationally recognized
      independent accounting firm chosen jointly by the Purchaser and the Seller
      Representative (the “Referee”).
      Notwithstanding anything contained herein to the contrary, the Referee shall
      have no current or prior (within three (3) years) business relationship with
      the
      Purchaser, the Seller, or with any Affiliate of Purchaser or Seller. In the
      event that the Purchaser and the Seller Representative are unable to mutually
      agree on the choice of the Referee, within ten (10) Business Days of receipt
      by
      the non-moving party of the written notice contemplated above, then the
      Purchaser and the Seller Representative shall submit to one another, in writing,
      the names of their respective nominated Referees and said nominated Referees
      shall select a third nationally recognized independent accounting firm to serve
      as the Referee contemplated herein. The Referee will promptly review only those
      items and amounts specifically set forth and objected to in the Dispute Notice
      and resolve the dispute with respect to each such specific item and amount
      in
      accordance with GAAP. In no event shall the decision of the Referee provide
      for
      a calculation that is (i) more favorable to the Purchaser than a calculation
      shown in the Closing Adjustment or (ii) more favorable to the Seller than (x)
      a
      calculation shown in the Seller Representative’s alternative calculation thereof
      shown in the Dispute Notice or (y) the calculation thereof that results from
      the
      suspected defect identified by the Seller Representative in the Dispute Notice.
      Each of the parties to this Agreement agrees to use its commercially reasonable
      efforts to cooperate with the Referee (including through the provision to the
      Referee of necessary documentation and, in the case of the Seller
      Representative, the names of all Persons whose statements are specified on
      the
      Dispute Notice as forming the basis for the Seller Representative’s disagreement
      with any item of a Closing Adjustment) and to cause the Referee to resolve
      any
      dispute no later than thirty (30) Business Days after selection of the Referee,
      and the decision of the Referee shall be final, conclusive and binding on the
      parties. The Referee shall allocate its costs and expenses equally between
      (i)
      the Purchaser and (ii) the Seller (which shall be allocated among the Persons
      making up the Seller in accordance with their equity ownership percentages
      in
      the Company immediately prior to the Closing).

     

    ARTICLE
      II.

    REPRESENTATIONS
      AND WARRANTIES OF THE SELLER

     

    The
      Persons constituting the Seller jointly and severally represent and warrant
      to
      the Purchaser that the statements contained in this Article
      II
      are true
      and correct, except as set forth in the schedules attached to this Agreement,
      which will be arranged to correspond to the numbered subsections contained
      in
      this Article
      II.
      Except
      for Section 2.1 each reference to “Company” or “Company Contract” in this
      Article II, includes Com-Tec California, LP.

     

    Section
      2.1. Organization
      and Units of the Company.
      

     

    (a) The
      Company is a limited liability company, duly organized, validly existing and
      in
      good standing under the laws of the State of Wisconsin. The
      Company is duly qualified or authorized to do business as a foreign entity,
      and
      is current with respect to all filings required by the Wisconsin Department
      of
      Financial Institutions, under the laws of the State of Wisconsin. The Company
      has full power and authority to own, lease and operate its properties and to
      conduct the portion of the Business conducted by it.

     

    (b) The
      Seller has delivered to the Purchaser true, correct and complete copies of
      the
      Company’s Charter Documents.

    
      
        
        

      

      
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    (c) As
      of the
      date hereof, the Company has one hundred (100) units of ownership issued and
      outstanding, all of which have been validly issued, are fully paid and
      non-assessable and were not issued in violation of any preemptive rights. There
      are no options, warrants, calls, subscriptions, conversion or other rights,
      agreements or commitments obligating the Company to issue any additional units
      of ownership or any other securities convertible into, exchangeable for or
      evidencing the right to subscribe for any units of ownership of the Company.
      The
      Seller owns the Units of record and beneficially, free and clear of any
      Encumbrance. Upon sale of the Units and delivery of certificates (or other
      transfer documents included in the Seller Documents) therefor to the Purchaser
      hereunder, the Purchaser will acquire the legal and beneficial interests in
      the
      Units, free and clear of any Encumbrance and subject to no legal or equitable
      restrictions of any kind.

     

    Section
      2.2. Enforceability.
      Each of
      the Company and the Seller has full power and authority to execute and deliver
      this Agreement and each of the other agreements, certificates and instruments
      to
      be executed in connection with or pursuant to this Agreement (collectively,
      and
      together with this Agreement, the “Seller
      Documents”),
      to
      perform its respective obligations under the Seller Documents and to consummate
      the transactions contemplated by the Seller Documents. The execution and
      delivery by the Seller of the Seller Documents, the performance by the Seller
      of
      its obligations under the Seller Documents and the consummation by the Seller
      of
      the transactions contemplated by the Seller Documents have been duly authorized
      by all necessary action on the part of Seller. This Agreement has been duly
      and
      validly executed and delivered by the Seller and constitutes the legal, valid
      and binding obligation of the Seller enforceable against the Seller in
      accordance with its terms. As of the Closing, the other Seller Documents will
      be
      duly and validly executed and delivered by the Seller that is a party thereto
      and, upon such execution and delivery, will constitute the legal, valid and
      binding obligations of the Seller enforceable against the Seller in accordance
      with their respective terms.

     

    Section
      2.3. No
      Conflicts.
      The
      execution and delivery by the Seller of the Seller Documents, the performance
      by
      the Seller of its obligations under the Seller Documents and the consummation
      by
      the Seller of the transactions contemplated by the Seller Documents do not,
      and
      will not,

     

    (a) violate
      any provision of Law or any Permit;

     

    (b) violate
      any provision of the Charter Documents of the Company;

     

    (c) require
      any consent, waiver, approval, registration, order, action or authorization
      of,
      declaration or filing with or notification to, any Governmental Authority or
      other Person (whether pursuant to a Contract or otherwise), other than a
      consent, waiver, approval, authorization, declaration, filing or notification
      that has been obtained or made prior to the execution and delivery by the Seller
      of this Agreement;

     

    (d) violate,
      conflict with, constitute a default under or breach any term, condition or
      provision of any Seller Contract, Company Contract, or Order (whether with
      the
      passage of time, the giving of notice or otherwise);

     

    (e) result
      in
      the termination of, give rise to a right of termination or cancellation of
      or
      accelerate the performance required pursuant to any Company Contract (whether
      with the passage of time, the giving of notice or otherwise); or

     

    (f) result
      in
      the creation of any Encumbrance with respect to any of the Company’s
      assets.

    
      
        
        

      

      
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    Section
      2.4. Financial
      Statements.
      The
      Seller has previously provided to the Purchaser the unaudited consolidated
      balance sheets of the Company as of June 30, 2007,
      and
      the
      related unaudited statements of operations for the six (6)-month period then
      ended (the “Financial
      Statements”).
      The
      Financial Statements present fairly the financial position of the Company (or
      their respective predecessors) and the results of operations as of the dates
      and
      for the periods therein specified, and have been prepared in accordance with
      GAAP consistently applied throughout the periods involved, subject, in the
      case
      of interim Financial Statements to normal year-end adjustments in an amount
      and
      of a character not materially inconsistent with prior periods. The Financial
      Statements do not contain any items of a special or nonrecurring nature, except
      as expressly stated therein. The Financial Statements have been prepared from
      the books and records of the Company, which accurately and fairly reflect the
      consolidated financial condition and results of operations of the
      Company as
      of the
      respective dates thereof and for the periods indicated.

     

    Section
      2.5. Undisclosed
      Liabilities.
      The
      Company has no Liabilities other than (a) as set forth or reflected on the
      Balance Sheet and (b) current liabilities incurred in the Ordinary Course
      of Business since the Balance Sheet Date.

     

    Section
      2.6. Absence
      of Certain Developments.
      Since
      the Balance Sheet Date, the Company has operated the Business in the Ordinary
      Course of Business, and the Company has incurred no Liabilities other than
      in
      the Ordinary Course of Business and there has not been:

     

    (a) any
      Material Adverse Change, or the occurrence of any event that could reasonably
      be
      expected to result in a Material Adverse Change;

     

    (b) any
      change, not disclosed in the Financial Statements, in the accounting methods,
      practices or principles or cash management practices of the
      Company;

     

    (c) any
      revaluation by the Company of
      any of
      its assets, including without limitation the write-down or write-off of notes,
      accounts receivable or inventory, other than in the Ordinary Course of
      Business;

     

    (d) any
      sale,
      assignment, transfer, distribution, mortgage or pledge of any of the properties
      or assets of Seller, except sales of inventory in the Ordinary Course of
      Business, or the placement of any Encumbrance on any of the properties or assets
      of the Company;

     

    (e) any
      known
      failure to use commercially reasonable efforts to preserve the Business, to
      keep
      available to the Business the services of its key employees and to preserve
      for
      the Business the goodwill of its suppliers, franchisees, customers and others
      having business relations with it;

     

    (f) any
      breach or default (or event that with notice or lapse of time would constitute
      a
      breach or default), acceleration, termination (or threatened termination),
      modification or cancellation of any Company Contract by any party (including
      the
      Company );

     

    (g) except
      as
      set forth on Schedule 2.6(g), any Contract entered into by the Company that
      (i) is not terminable upon thirty (30) days or less notice or
      (ii) involves the payment or receipt by the Company of more than
      $25,000;

     

    (h) any
      (i) increase in the compensation payable or to become payable by the
      Company to any of its employees, including without limitation any bonuses other
      than a three percent (3%) across the board raise given to all of the Company’s
      employees in 2007; (ii) adoption, amendment or increase in the coverage or
      benefits available under any Employee Benefit Plan or Benefit Arrangement or
      (iii) amendment or execution of any employment, deferred compensation,
      severance, consulting, non-competition, employee retention plan or similar
      agreement to which the Company is a party or involving an employee of the
      Company (other than employment terminable at will without
      penalty);

    
      
        
        

      

      
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    (i) any
      termination of employment (whether voluntary or involuntary) of, or receipt
      or
      expectation of receipt of any resignation by, any key employee of the Business,
      or any termination of employment (whether voluntary of involuntary) of employees
      of the Business materially in excess of historical attrition in
      personnel;

     

    (j) except
      as
      set forth on Schedule 2.6(j), any transaction between the Company and a Related
      Party;

     

    (k) any
      cancellations or waivers of any claims or rights of the Company of material
      value;

     

    (l) any
      execution of capital leases by the Company;

     

    (m) any
      other
      transaction, agreement or commitment entered into or affecting the Business
      or
      the assets of the Company not made in the Ordinary Course of Business; or

     

    (n) any
      agreement or understanding to do, or resulting in, any of the
      foregoing.

     

    Section
      2.7. Assets.

     

    (a) Except
      as
      set forth on Schedule 2.7(a), the Company has good and marketable title to
      all
      of the assets and properties used by the Company in the conduct of the Business
      and necessary to conduct the Business as presently conducted, free and clear
      of
      all Encumbrances.

     

    (b) No
      part
      of the Business and no asset, right or interest related to or employed in or
      reasonably necessary for the conduct of the Business is owned or held by any
      Person other than the Company.

     

    (c) To
      the
      best of Seller’s knowledge, the assets of the Company are
      in
      good condition and repair, ordinary wear and tear excepted, and (where
      applicable) are in good working order and have been properly and regularly
      maintained.

     

    (d) The
      Seller does not own, or have any interests in or rights with respect to, any
      real property other than the real property listed on Schedule 2.7(d) (the
“Leased
      Properties”).
      With
      respect to the Leased Properties:

     

    (i) There
      are
      presently no pending or threatened condemnation actions or special assessments
      of any nature on the Leased Properties or any part thereof, the Seller has
      received no notice of any condemnation actions or special assessments being
      contemplated, and Seller does not have any knowledge of any being contemplated.
      The Company has received no request, written or otherwise, from any Governmental
      Authority with regard to dedication of the Leased Properties or any part
      thereof;

     

    (ii) The
      Company has received no notice of, and has no other knowledge or information
      of,
      any pending or contemplated change in any regulation or private restriction
      applicable to the Leased Properties or any part thereof, of any pending or
      threatened judicial or administrative action by adjacent landowners or other
      Persons or of any natural or artificial condition adversely affecting the Leased
      Properties or any part thereof. 

    
      
        
        

      

      
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    (iii) Seller
      has not been served with notice of any pending Legal Proceeding against or
      relating to any portion of the Leased Properties and, to the best of Seller’s
      knowledge, there is no Legal Proceeding threatened against or relating to any
      portion of the Leased Properties;

     

    (iv) Except
      as
      set forth on Schedule 2.7(d)(iv), there are no attachments, executions or
      assignments for the benefit of creditors or voluntary or involuntary proceedings
      in bankruptcy or under any other debtor relief Laws contemplated by a pending
      or
      threatened action or suit against the Seller or the Leased
      Properties;

     

    (v) No
      Person
      has, or at the Closing Date shall have, any right or option to acquire all
      or
      any portion of the Leased Properties; and

     

    (vi) No
      portion of the Leased Properties shall be subject at the Closing Date to any
      agreement (written or oral), except the applicable lease.

     

    Section
      2.8. Contracts.

     

    (a) Schedule
      2.8(a)
      contains
      a correct and complete list of each Company Contract, including without
      limitation each Company Contract of the following types:

     

    (i) Leases
      of
      real property;

     

    (ii) Leases
      of
      personal property, whether capital leases, operating leases or conditional
      sales
      agreements;

     

    (iii) Contracts
      for employment or consulting services and Contracts relating to the termination
      of severance of employment or consulting services (including any Contract in
      which Seller is the beneficiary of a non-competition or similar covenant or
      agreement);

     

    (iv) Contracts
      for the provision of services and/or the sale of goods;

     

    (v) Licenses
      and other Contracts relating to Intellectual Property; and

     

    (b) Each
      Company Contract is a valid and binding agreement of the Company and the other
      party to such agreement, is in full force and effect and enforceable against
      each party thereto in accordance with its terms. There has been no breach or
      default by any party (or event that with the passage of time, the giving of
      notice or both would constitute a breach or default) under any Company Contract.
      The Company has performed all of the obligations required to be performed by
      it
      under each Company Contract and is not in receipt of any notice of termination
      or written claim of default under any such Company Contract. No party to any
      Company Contract has threatened to, or notified the Company or the Seller of
      any
      intention to, terminate or materially alter its relationship with the Business
      as a result of this Agreement or the consummation of the transactions
      contemplated hereby. To the Seller’s knowledge, no party to a Company Contract
      intends to alter its relationship with the Company as a result of or in
      connection with the transactions contemplated by this Agreement. The Seller
      has
      previously provided to the Purchaser a true and correct copy of the written
      Company Contracts set forth on Schedule 2.8(b), together with all amendments,
      waivers or other changes thereto.

    
      
        
        

      

      
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    (c) The
      Company is not a party to, and no asset or property of the Company is bound
      by,
      any of the following types of Contracts:

     

    (i) Contracts
      (including mortgages) pursuant to which any assets or properties of Seller
      are
      subject to any Encumbrance;

     

    (ii) Contracts
      pursuant to which the Company is obligated to provide indemnification to any
      Third Party, except for such Contracts entered into in the Ordinary Course
      of
      Business;

     

    (iii) Contracts
      (including consent decrees) that impose (or could by their terms impose) any
      material restrictions on the Company with respect to its geographical area
      of
      operations or scope or type of business;

     

    (iv) Contracts
      between the Company, on the one hand, and any Related Party, on the other hand
      (other than Contracts for employment or consulting services listed on
Schedule
      2.8(a));
      and

     

    (v) Contracts
      not entered into in the Ordinary Course of Business.

     

    Section
      2.9.  Accounts
      Receivable.
      All
      accounts receivable of the Company are reflected in the Balance Sheet or arose
      in the Ordinary Course of Business since the Balance Sheet Date. All of such
      accounts receivable (net of any allowance for doubtful accounts reflected in
      the
      Balance Sheet) are fully collectible in the Ordinary Course of Business and
      without recourse to any legal proceeding.

     

    Section
      2.10. Intellectual
      Property.

     

    (a) Extent
      of and Title to Intellectual Property.
      All of
      the Intellectual Property that is or has been used, held for use or is
      reasonably necessary for use in the Business shall be referred to herein as
      the
“Business
      Intellectual Property”.
      The
      Company possesses and either owns, is licensed under or has the valid right
      to
      use all of the Business Intellectual Property. The Business Intellectual
      Property owned by the Company (the “Owned
      Intellectual Property”)
      is not
      subject to any outstanding option, license or agreement of any kind, and is
      owned free and clear of all Encumbrances. All Business Intellectual Property
      licensed to the Company (the “Licensed
      Intellectual Property”)
      has
      been licensed pursuant to agreements (the “Licenses”)
      that
      are set forth on Schedule
      2.10(a).
      All
      Business Intellectual Property that is neither Owned Intellectual Property
      nor
      Licensed Intellectual Property is in the public domain. Not later than 5 days
      prior to the Closing, Company shall deliver to Purchaser a written list of
      all
      Business Intellectual Property (which is not in the public domain) including
      but
      not limited to software, and the design, circuit board plot files, gerber files,
      schematics and mask works related to integrated circuit boards manufactured
      by
      third parties for the benefit of Company.

     

    (b) Registered
      Intellectual Property.
      Schedule
      2.10(b)
      sets
      forth a correct and complete list of all of the following Business Intellectual
      Property as of the date of this Agreement, and indicates whether it is Owned
      Intellectual Property or Licensed Intellectual Property: (a) trademark and
      service mark registrations and pending applications for registration;
      (b) patents and pending patent applications; (c) copyright
      registrations and pending applications for registration and (d) tradenames.
      All of the Business Intellectual Property issued by, registered with, or filed
      with a U.S. or foreign patent, trademark or copyright office has been duly
      issued by, registered with or duly filed in such office, as the case may be,
      and
      has been properly processed, maintained and renewed in accordance with all
      applicable provisions of applicable law in the applicable
      country.

    
      
        
        

      

      
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    (c) No
      Restrictions on Transfer.
      No
      Business Intellectual Property is subject to any outstanding Order, Contract
      or
      other Liability restricting in any manner the use thereof by the
      Company.

     

    (d) No
      Infringement by Third Parties.
      To the
      best of Seller’s knowledge, there is no unauthorized use, infringement or
      misappropriation of any Business Intellectual Property by any Person, including
      without limitation any current or former director, officer, employee, consultant
      or other agent of the Company.

     

    (e) No
      Infringement by the Company.
      No
      Person has asserted, or threatened to assert, any Claim with respect to the
      Business Intellectual Property, including any Claim of ownership of or
      infringement by the Business Intellectual Property. There is no reasonable
      basis
      for any bona fide Claim (i) to the effect that the Business as presently
      conducted infringes, violates or misappropriates any Intellectual Property
      of
      any other Person; or (ii) challenging the ownership, validity,
      enforceability or effectiveness of any of the Business Intellectual Property
      or
      any License.

     

    (f) Safeguards
      Taken.
      The
      Company has not taken, or failed to take, any action that would preclude or
      hinder the protection or enforcement of the Business Intellectual
      Property.

     

    (g) No
      Competitive Intellectual Property.
      No
      director, officer, employee, consultant or other agent of the Company owns
      any
      rights in Intellectual Property that are directly or indirectly competitive
      with
      those owned or to be used by the Business or derived from or in connection
      with
      the conduct of the Business.

     

    Section
      2.11. Insurance.
      All of
      the material properties of the Company are insured for the benefit of the
      Company, and will be so insured through the Closing Date, in amounts and against
      risks customary in similar businesses for similar properties.

     

    Section
      2.12. Employees.

     

    (a) Schedule
      2.12(a)
      lists
      the name and address of each officer and employee of the Company and each
      consultant to the Company not terminable at will. Schedule
      2.12(a)
      also
      sets forth, for each such Person, their date of employment, current job title
      or
      relationship to the Company, the aggregate annual cash compensation paid to
      such
      person by the Company, a description of all bonus or benefit plans applicable
      to
      such person and the date and amount of their last increase in
      compensation.

     

    (b) Except
      as
      set forth on Schedule 2.12(b), the Company is not a party to any labor, union
      or
      collective bargaining agreement and there are no labor, union or collective
      bargaining agreements that pertain to any employee of the Company. There is
      no
      organizing activity (including any demand for recognition or certification
      proceeding pending with the National Labor Relations Board) involving any
      employees of the Company by any labor organization or group of employees
      presently pending or threatened. No strike, work stoppage, lockout, labor
      grievance or other labor dispute is presently pending or threatened against
      the
      Company, and no such strike, work stoppage, lockout, labor grievance or other
      labor dispute has occurred since May 17, 2004.

    
      
        
        

      

      
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    (c) Except
      as
      set forth on Schedule 2.12(b), the Company does not have any oral or written
      agreements or understandings to provide their employees pay raises, bonuses,
      stock options or other compensation benefits.

     

    (d) The
      Company does not have any employment agreements with their
      employees.

     

    Section
      2.13. Employee
      Benefits.

     

    (a) Schedule
      2.13(a)
      sets
      forth all material, written “employee benefit plans,” as defined in Section 3(3)
      of ERISA, maintained by the Company or to which the Company contributed or
      is
      obligated to contribute for current or former employees (the “Employee
      Benefit Plans”).
      Schedule
      2.13(a)
      lists
      each Company Contract providing for employment or severance, each plan or
      arrangement providing for insurance coverage, severance, termination or similar
      coverage and all written compensation policies and practices maintained by
      the
      Seller covering any employee or former employee that is not an Employee Benefit
      Plan (a “Benefit
      Arrangement”).

     

    (b) True,
      correct and complete copies of the following documents, with respect to each
      Employee Benefit Plan, have been made available or delivered to the Purchaser
      by
      the Seller: (i) any plans and related trust documents, and amendments thereto;
      (ii) the most recent Form 5500; (iii) the last Internal Revenue Service
      determination letter, if applicable; (iv) summary plan descriptions and (v)
      the last actuarial valuation if the plan is a “defined benefit plan,” as defined
      in Section 3(35) of ERISA.

     

    (c) The
      Employee Benefit Plans intended to qualify under Section 401 of the Code and
      the
      trusts maintained pursuant thereto are exempt from federal income taxation
      under
      Section 501 of the Code, and nothing has occurred with respect to the operation
      of the Employee Benefit Plans that could cause the loss of such qualification
      or
      exemption or the imposition of any liability, penalty or tax under ERISA or
      the
      Code.

     

    (d) The
      Employee Benefit Plans have been operated and maintained in accordance with
      their terms and with all provisions of the Code, ERISA (including the rules
      and
      regulations thereunder) and other Laws.

     

    (e) Each
      Employee Benefit Plan and Benefit Arrangement could be terminated as of the
      Closing Date with no liability to the Company, the Business or the
      Purchaser.

     

    (f) No
      Employee Benefit Plan is a multiemployer plan, as defined in Section 3(37)
      of
      ERISA (a “Multiemployer
      Plan”).

     

    (g) The
      Company does not maintain and has no obligation to contribute to (or any other
      liability with respect to) any funded or unfunded Employee Benefit Plan that
      provides post-retirement health, accident or life insurance benefits to current
      or former employees, current or former independent contractors, current or
      future retirees, their spouses, dependents or beneficiaries, other than limited
      health benefits required to be provided to former employees, their spouses
      and
      other dependents under Code Section 4980B.

    
      
        
        

      

      
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    (h) As
      of the
      Closing Date, none of the employee pension plans (as defined in Section 3(2)
      of
      ERISA) of the Company (“Employee
      Pension Plans”)
      have
      incurred any “accumulated funding deficiency” as such term is defined in Section
      302 of ERISA or Section 412 of the Code, whether or not waived, and no
      proceeding by the PBGC to terminate any such Employee Pension Plan has been
      instituted or threatened. The Company has not incurred any liability to the
      PBGC, the Internal Revenue Service, the Department of Labor, any other
      governmental agency, any Multiemployer Plan or any Person with respect to any
      Employee Benefit Plan currently or previously maintained by members of the
      “controlled group of companies,” as such term is defined in Section 414 of the
      Code, that includes the Company that has not been satisfied in full, and no
      condition exists that presents a material risk to Seller of incurring such
      a
      liability, other than liability for premiums due the PBGC.

     

    Section
      2.14. Compliance
      with Law.
      Company
      (a) is, and at all times has been, in compliance with all regulations with
      respect to the Business, and (b) has otherwise complied with, in all
      material respects, all other applicable Laws relating to the conduct of the
      Business, including without limitation all applicable Laws relating to
      occupational health and safety, product quality and safety and employment and
      labor matters.

     

    Section
      2.15. Permits.
      To the
      best of Seller’s knowledge, Company has all Permits necessary for the conduct of
      the Business as currently conducted. To the best of Seller’s knowledge, all such
      Permits are in full force and effect and, to the best of Seller’s knowledge, the
      Company is in compliance with the requirements of all such Permits. Each such
      Permit is described in Schedule
      2.15.
      No loss
      or expiration of any Permit is pending, threatened or reasonably foreseeable,
      other than expiration of Permits that may be renewed in the Ordinary Course
      of
      Business without lapsing.

     

    Section
      2.16. Environmental
      Matters.

     

    (a) Legal
      Compliance.
      To the
      best of Seller’s knowledge, the Business is now and has always been conducted in
      compliance with all Environmental Laws. The Company has never generated,
      produced, used, stored, transported, processed, released or disposed of any
      Hazardous Materials, in any quantity, except, to the best of Seller’s knowledge,
      in compliance with all Environmental Laws.

     

    (b) Absence
      of Certain Hazardous Materials.
      To the
      best of Seller’s knowledge, none of the real property owned, leased or used in
      the Business contains any Hazardous Materials in amounts exceeding the levels
      permitted by Environmental Laws. There is no asbestos present in any of the
      assets of the Company or in any of the real property owned, leased or used
      in
      the Business by the Company, and no asbestos has been removed from any of the
      Company’s assets or any such real property.

     

    (c) No
      Claims or Proceedings.
      The
      Company is not subject to any pending Claim or Legal Proceeding investigating,
      asserting or alleging the violation of any Environmental Law. Neither the
      Company, nor any of its properties and assets, are subject to any Liability
      relating to any Claim or Legal Proceeding, any settlement thereof or any Order
      asserted, arising under or relating to any Environmental Law. To the best of
      Seller’s knowledge, there are no environmental conditions regarding the Business
      or the assets of the Company that could reasonably be anticipated to (i) form
      the basis of any Claim against the Business, the Company’s assets or Company, or
      (ii) cause the Business or the Company’s assets to be subject to any restriction
      on ownership, occupancy, use or transfer under any Environmental
      Law.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (d) No
      Notices or Threats of Liability.
      The
      Company has not received any notice, demand letter or request for information
      from any Governmental Authority or other Person indicating, asserting or
      alleging that Company is, may be, has or may have violated any Environmental
      Law, may be liable under any Environmental Law or may be a potentially
      responsible party at any Superfund site. No Governmental Authority or other
      Person has threatened to initiate any Claim, Legal Proceeding or investigation
      relating to the violation or possible violation of any Environmental Law by
      the
      Company.

     

    (e) Environmental
      Reports.
      No
      reports have been filed, or are required to be filed, by the Company relating
      to
      the Business or any of its properties or assets, concerning the release of
      any
      Hazardous Material or the threatened or actual violation of any Environmental
      Law. All environmental investigations, studies, audits, tests, reviews and
      other
      analyses regarding compliance or noncompliance with any Environmental Law by
      the
      Company, the Business or the real property owned, leased or used in the Business
      by the Company have been delivered to the Purchaser prior to the date
      hereof.

     

    Section
      2.17. Legal
      Proceedings.
      There
      are no Legal Proceedings pending or threatened that question the validity of
      this Agreement or any action taken or to be taken by the Seller or the Company
      in connection with the consummation of the transactions contemplated by this
      Agreement. Schedule
      2.17
      sets
      forth a true and correct list of all Legal Proceedings pending or, as of the
      date of this Agreement, threatened against Seller, the Company, the Business
      or
      any of the Company’s assets, whether at law or in equity. None of the Seller,
      the Company, the Business and the Company’s assets are subject to or bound by
      any Order currently in effect.

     

    Section
      2.18. Taxes.

     

    (a) The
      Company has (i) duly and timely filed (or there has been filed on its behalf)
      with the appropriate taxing authorities all Tax Returns required to be filed
      by
      it; (ii) timely paid (or there has been paid on its behalf) all Taxes due
      or claimed to be due from it by any taxing authority; (iii) timely and fully
      paid, to all relevant taxing authorities, all estimated payments of Taxes of
      the
      Company, including but not limited to all quarterly estimated payments of Taxes.
      There are no liens for Taxes upon the assets or properties of Seller except
      for
      statutory liens for current Taxes not yet due.

     

    (b) All
      Tax
      Returns previously prepared are, correct and complete in all material respects.
      

     

    (c) Company
      has complied in all material respects with all applicable laws, rules and
      regulations relating to the payment and withholding of Taxes (including, without
      limitation, withholding of Taxes pursuant to Sections 1441 and 1442 of the
      Code
      or similar provisions under any foreign laws) and have, within the time and
      manner prescribed by law, withheld and paid over to the proper Governmental
      Authorities all amounts required to be withheld and paid over under all
      applicable laws.

     

    (d) No
      federal, state, local or foreign audits or other administrative proceedings
      or
      court proceedings (“Audits”)
      exist
      or have been initiated with regard to any Taxes or Tax Returns of the Company,
      and the Company has not received any notice that such an Audit is pending or
      threatened with respect to any the Company due from or with respect to the
      Company or any Tax Return filed by or with respect to Seller.

    
      
        
        

      

      
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    Section
      2.19. Related
      Party Transactions.
      There
      are no intercompany receivables or payables between the Company, on the one
      hand, and any Related Party, on the other hand, except as reflected in the
      Financial Statements.

     

    Section
      2.20. Assumed
      Names.
      Schedule
      2.20
      sets
      forth a list of all assumed names under which the Company operates any portion
      of the Business and all jurisdictions in which any of the assumed names are
      registered.

     

    Section
      2.21. Subsidiaries
      and Investments.
      Except
      as set forth on Schedule 2.21, the Company does not own, directly or indirectly,
      any stock, partnership interest or joint venture interest in, or any security
      or
      debt or equity interest issued by, any Person, or any option or right to acquire
      any of the foregoing.

     

    Section
      2.22. Brokers’
      Fees.
      Neither
      the Seller nor the Company has any liability or obligation to pay any fees
      or
      commissions to any broker, finder or agent with respect to the transactions
      contemplated by this Agreement other than fees payable to Joseph L. Valentine
      of
      Bidco Acquisitions & Divestitures as to which the Seller is solely
      responsible.

     

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER

     

    The
      Purchaser hereby represents and warrants to the Seller that:

     

    Section
      3.1. Organization.
      The
      Purchaser is a corporation, duly organized, validly existing and in good
      standing under the laws of the State of Delaware. The Purchaser is duly
      qualified or authorized to do business as a foreign corporation, and is in
      good
      standing, under the laws of each other jurisdiction where the failure to be
      so
      qualified would have a Material Adverse Effect on the Purchaser. The Purchaser
      has full corporate power and authority to own, lease and operate its properties
      and to conduct its business as presently conducted.

     

    Section
      3.2. Enforceability.
      The
      Purchaser has full corporate power and authority to execute and deliver this
      Agreement and each of the other agreements, certificates and instruments to
      be
      executed by the Purchaser in connection with or pursuant to this Agreement
      (collectively, and together with this Agreement, the “Purchaser
      Documents”),
      to
      perform its obligations under the Purchaser Documents and to consummate the
      transactions contemplated by this Agreement. The execution and delivery by
      the
      Purchaser of the Purchaser Documents, the performance by the Purchaser of its
      obligations under the Purchaser Documents and the consummation by the Purchaser
      of the transactions contemplated by the Purchaser Documents have been duly
      authorized by all necessary corporate action. This Agreement has been duly
      and
      validly executed and delivered by the Purchaser and constitutes the legal,
      valid
      and binding obligation of the Purchaser enforceable against the Purchaser in
      accordance with its terms. As of the Closing, the other Purchaser Documents
      will
      be duly and validly executed and delivered by the Purchaser and, upon such
      execution and delivery, will constitute the legal, valid and binding obligations
      of the Purchaser enforceable against the Purchaser in accordance with their
      respective terms.

     

    Section
      3.3. No
      Conflicts.
      The
      execution and delivery by the Purchaser of the Purchaser Documents, the
      performance by the Purchaser of its obligations under the Purchaser Documents
      and the consummation by the Purchaser of the transactions contemplated by the
      Purchaser Documents do not, and will not, (a) violate any provision of Law,
      (b)
      violate any provision of the Charter Documents of the Purchaser or (c) require
      any consent, waiver, approval or authorization of, declaration or filing with
      or
      notification to any Governmental Authority or other Person (whether pursuant
      to
      a Contract or otherwise), other than a consent, waiver, approval, authorization,
      declaration, filing or notification that has been obtained or made prior to
      the
      execution and delivery by the Purchaser of this Agreement.

    
      
        
        

      

      
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    Section
      3.4. Legal
      Proceedings.
      There
      are no Legal Proceedings pending or threatened that question the validity of
      this Agreement or any action taken or to be taken by the Purchaser in connection
      with the consummation of the transactions contemplated by this
      Agreement.

     

    Section
      3.5. Financial
      Information.
      The
      Purchaser has caused to be delivered to the Seller, the consolidated balance
      sheet of Argyle Security, Inc. (“Argyle”), as of July 31, 2007, prepared by the
      accounting firm of Ernst & Young, LLP (the “Argyle Balance Sheet”). The
      Argyle Balance Sheet represents fairly the financial position of Argyle, and
      its
      indicated Affiliates, and the results of their operations as of the dates and
      for the periods therein specified, and have been prepared in accordance with
      GAAP consistently applied throughout the periods involved. The Argyle Balance
      Sheet does not contain any items of a special or nonrecurring nature, except
      as
      expressly stated therein. The Argyle Balance Sheet has been prepared from the
      books and records of the entities referenced therein, which accurately and
      fairly reflect the consolidated financial condition and results of the
      operations of Argyle and its indicated Affiliates, as of the respective dates
      thereof and for the periods indicated.

     

    Section
      3.6. Undisclosed
      Liabilities.
      To the
      best of Seller’s knowledge, Argyle and its indicated Affiliates have no
      Liabilities other than (a) as set forth or reflected on the Argyle Balance
      Sheet and (b) current liabilities incurred in the Ordinary Course of
      Business since the Argyle Balance Sheet Date.

     

    Section
      3.7. Absence
      of Certain Developments.
      Since
      the end of the period covered by the Argyle Balance Sheet Date, Argyle and
      its
      indicated Affiliates have operated their business in the Ordinary Course of
      Business, and to the best of Purchaser’s knowledge, they have incurred no
      Liabilities other than in the Ordinary Course of Business and there has not
      been:

     

    (a) any
      Material Adverse Change, or to the best of Purchaser’s knowledge, the occurrence
      of any event that could reasonably be expected to result in a Material Adverse
      Change;

     

    (b) any
      change, not disclosed in the Argyle Balance Sheet, in the accounting methods,
      practices or principles or cash management practices of the
      Company;

     

    (c) any
      revaluation by Argyle and its indicated Affiliates of any of their assets,
      including without limitation the write-down or write-off of notes, accounts
      receivable or inventory, other than in the Ordinary Course of
      Business;

     

    (d) any
      sale,
      assignment, transfer, distribution, mortgage or pledge of any of the properties
      or assets of Argyle and its indicated Affiliates, except sales of inventory
      in
      the Ordinary Course of Business, or the placement of any Encumbrance on any
      of
      the properties or assets of Argyle and its indicated Affiliates;

     

    (e) any
      other
      transaction, agreement or commitment entered into or affecting the business
      of
      Argyle and its indicated Affiliates or the assets of Argyle and its indicated
      Affiliates not made in the Ordinary Course of their business; or 

     

    (f) any
      agreement or understanding to do, or resulting in, any of the
      foregoing.

    
      
        
        

      

      
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    ARTICLE
      IV.

    COVENANTS

     

    Section
      4.1. Conduct
      of the Business Pending the Closing.
      Except
      as otherwise expressly contemplated by this Agreement or with the prior written
      consent of the Purchaser, from the date hereof until the Closing Date, the
      Seller will (and will cause the Company to):

     

    (a) operate
      the Business in the Ordinary Course of Business to the best of their ability
      and
      not engage in any transaction outside of the Ordinary Course of
      Business;

     

    (b) provide
      the Purchaser with unaudited consolidated balance sheets of the Seller and
      its
      subsidiaries as of the last day of each month between the Effective Date and
      the
      Closing, and the related unaudited statements of operations, cash flows and
      members’ equity for the year-to-date period then ended, no later than thirty
      (30) days after the end of each such month;

     

    (c) use
      commercially reasonable efforts to preserve the Business, to keep available
      the
      services of key employees and to preserve for the Business the goodwill of
      its
      suppliers, franchisees, customers and others having business relations with
      the
      Company;

     

    (d) maintain
      proper and adequate staffing levels in accordance with Law and historical
      methods of operation;

     

    (e) maintain
      product prices;

     

    (f) maintain
      the books and records of the Company in the usual, regular and ordinary
      manner;

     

    (g) maintain
      in full force and effect all Permits and not sell, transfer, license or
      otherwise dispose of any material rights or interests under any
      Permits;

     

    (h) operate
      the Business in compliance with all applicable Permits and all applicable Laws,
      including all local licensing requirements and local health and fire
      regulations;

     

    (i) keep
      all
      of the Company’s assets of insurable character insured in accordance with
      industry custom and consistent with past practice;

     

    (j) consult
      with the Purchaser regarding all material developments, transactions and
      proposals relating to the Business or the Company;

     

    (k) promptly
      notify the Purchaser of (i) any Material Adverse Change, (ii) any
      physical inventory discrepancy in excess of $10,000 relating to the Business,
      (iii) any theft, condemnation or eminent domain proceeding or material
      damage, destruction or casualty loss affecting any asset or property of the
      Company, whether or not covered by insurance, (iv) any breach or default
      (or event that with notice or lapse of time would constitute a breach or
      default), acceleration, termination (or threatened termination), modification
      or
      cancellation of any Company Contract by any party (including by the Company),
      (v) the termination of employment (whether voluntary or involuntary) of any
      officer or key employee of the Business or the termination of employment
      (whether voluntary of involuntary) of employees of the Business materially
      in
      excess of historical attrition in personnel, (vi) any Legal Proceeding
      commenced by or against the Company and (vii) any Legal Proceeding
      commenced, or threatened against, the Company or the Seller relating to the
      transactions contemplated by this Agreement;

    
      
        
        

      

      
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    (l) not
      enter
      into any Company Contract that (i) is not terminable upon thirty (30) days
      or less notice or (ii) involves the payment or receipt by the Company of
      more than $25,000;

     

    (m) not
      enter
      into, modify or terminate (other than by reason of the expiration thereof)
      any
      labor or collective bargaining agreement or, through negotiation or otherwise,
      make any commitment or incur any Liability to any labor organization with
      respect to the Company;

     

    (n) not
      incur
      or become subject to, or agree to incur or become subject to, any Liability
      of
      the Company except (i) normal trade or business obligations (including
      Company Contracts) incurred in the Ordinary Course of Business and
      (ii) obligations under Company Contracts in effect on the date
      hereof;

     

    (o) not,
      without fair consideration, cancel or compromise any material Liability or
      Claim
      of the Company or waive or release any material right related to the Business
      or
      the Company’s assets;

     

    (p) not
      breach or default (or take any action that with notice or lapse of time would
      constitute a breach or default), accelerate, terminate (or threaten
      termination), cancel or amend any Company Contract;

     

    (q) not
      change accounting principles or methods or cash management practices (including
      the collection of receivables, payment of payables, maintenance of inventory
      control and pricing and credit practices) of the Company, except as required
      by
Section
      4.1(r),
      by law
      or as a result of any mandatory change in accounting standards;

     

    (r) expense
      (and not capitalize) all purchases of equipment, supplies and fixtures (except
      where the size of the purchase requires it to be capitalized pursuant to GAAP
      and notice of such treatment is provided to the Purchaser prior to such
      purchase) of the Company;

     

    (s) not
      make
      any Tax election or settle or compromise any Tax liability with respect to
      the
      Company;

     

    (t) not
      make
      any loans, advances or capital contributions from the Company to, or investments
      by the Company in, any other Person;

     

    (u) not
      engage in any transactions between the Company and any Related
      Party;

     

    (v) not
      increase the aggregate compensation payable or to become payable to any person,
      including employees, consultants and members of the Company, inconsistent with
      the past practices of the Company;

     

    (w) not
      pay
      any dividends, bonuses or other cash or property to any person, including
      employees, consultants and members of the Company, inconsistent with the past
      practices of the Company;

     

    (x) not
      (i)
      increase the coverage or benefits available under (or create any new or
      otherwise amend) any Employee Benefit Plan or Benefit Arrangement or (ii) enter
      into any employment, deferred compensation, severance, consulting,
      non-competition, employee retention plan or similar agreement (or amend any
      such
      existing plan or agreement) involving a director, officer or employee of the
      Company in the capacity of director, officer or employee of the Company (other
      than employment terminable at will without penalty or as required to satisfy
      the
      condition set forth in Section
      5.7);

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (y) not
      terminate the employment of any officer or key employee of the Business or
      terminate the employment of employees of the Business materially in excess
      of
      historical attrition in personnel;

     

    (z) not
      subject any of the Company’s assets to any Encumbrance;

     

    (aa) not
      make
      any payment or transfer of assets (including without limitation any repayment
      of
      indebtedness) of the Company to or for the benefit of any Related Party, other
      than compensation and expense reimbursements paid in the Ordinary Course of
      Business;

     

    (bb) not
      transfer, issue, sell or dispose of shares of capital stock, units of ownership
      or other securities of the Company or grant options, warrants, calls or other
      rights to purchase or otherwise acquire such capital stock or other
      securities;

     

    (cc) not
      consolidate with, or merge with or into, any Person;

     

    (dd) not
      acquire (except for purchases of inventory in the Ordinary Course of Business)
      any Company assets and not sell, assign, transfer, convey, lease or otherwise
      dispose of any of the Company’s assets, whether or not reflected in the
      Financial Statements (except for sales of inventory for fair consideration
      in
      the Ordinary Course of Business);

     

    (ee) not
      take
      any action that would cause any representation or warranty set forth in
Article
      II
      to be
      untrue and incorrect as of the date when made or (except in the case of
      representations and warranties made as of a specific date) as of any future
      date; and

     

    (ff) not
      agree
      to (i) do anything prohibited by this Section
      4.1
      or (ii)
      refrain from doing anything required by this Section
      4.1.

     

    Section
      4.2. Acquisition
      Proposals.
      The
      Seller will not (and will not permit the Company or any of their respective
      Related Parties, agents or representatives to), directly or indirectly,
      initiate, solicit or encourage any third party to make, or facilitate (including
      by the provision of information regarding the Seller or the Business),
      entertain, discuss or negotiate, or endorse, accept or enter into any agreement
      with respect to, any proposal for an Acquisition. The Seller will promptly
      notify the Purchaser of all relevant terms of any inquiry or proposal received
      by them or any Related Party, or any of their agents or representatives relating
      to an Acquisition and, if such inquiry or proposal is in writing, the Seller
      will promptly deliver a copy of such inquiry or proposal to the
      Purchaser.

     

    Section
      4.3. Cooperation
      to Effect Closing.

     

    (a) Affirmative
      Covenant.
      The
      Seller and the Purchaser will each cooperate and use its respective commercially
      reasonable efforts to fulfill the conditions precedent to the obligations of
      the
      other parties to effect the transactions contemplated by this Agreement,
      including without limitation securing as promptly as practicable all consents,
      approvals, waivers and authorizations required in connection with the
      transactions contemplated by this Agreement and necessary to assign to the
      Purchaser all of the Units or any claim, right or benefit arising thereunder
      or
      resulting therefrom. Each party will promptly notify the others upon its
      discovery or determination that any consent from a Governmental Authority is
      required for the consummation of the transactions contemplated by this
      Agreement. The Seller will provide monthly financial statements to the Purchaser
      as soon as reasonably practicable after the end of each calendar month following
      the Effective Date (“Monthly
      Financial Statements”).
      Such
      Monthly Financial Statements shall meet the same standards as those applicable
      to the Financial Statements, as set forth in Section
      2.4
      hereof.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (b) Negative
      Covenant.
      The
      Seller and the Purchaser each agree not to take any action that would cause
      the
      conditions precedent to the obligations of the other parties to effect the
      transactions contemplated by this Agreement not to be fulfilled, including
      without limitation by taking or causing to be taken any action that would cause
      the representations and warranties set forth in this Agreement not to be true
      and correct as of the Closing.

     

    Section
      4.4. Access
      to Information.
      Prior
      to the Closing Date, the Purchaser will be entitled, through its authorized
      officers, employees and representatives (including, without limitation, its
      legal counsel, accountants, investment bankers and other representatives)
      (collectively, the “Purchaser
      Representatives”),
      to
      (a) have reasonable access to the Company’s directors, officers, employees,
      agents, assets and properties and all relevant books, records and documents
      of
      or relating to the Company or the Business, (b) such information, financial
      records and other documents relating to the Company and the Business as any
      Purchaser Representative may request, (c) make extracts and copies of any
      such books, records, documents and information and (d) have reasonable
      access to the Company’s accountants, auditors, customers and suppliers for
      consultation or verification of any information. The Purchaser’s investigation
      and examination will be conducted during regular business hours, under
      reasonable circumstances and upon reasonable prior notice to the Seller.

     

    Section
      4.5. Confidentiality.
      From
      and after the Closing, the Seller will, and will cause their Related Parties
      over whom they have control, and agents and representatives to:
      (a) maintain the confidentiality of the Business Information (as defined
      below), using procedures no less rigorous than those used to protect and
      preserve the confidentiality of their own proprietary information and
      (b) not, directly or indirectly, (i) transfer or disclose any Business
      Information to any Third Party; (ii) use any Business Information; or
      (iii) take any other action with respect to the Business Information that
      is inconsistent with the confidential and proprietary nature thereof.
“Business
      Information”
means
      all information and materials relating to the Company or the Business, whether
      in oral, written, graphic or machine-readable form, that is proprietary in
      nature, including without limitation all specifications, user, operations or
      systems manuals, diagrams, graphs, models, sketches, technical data, research,
      business or financial information, plans, strategies, forecasts, forecast
      assumptions, business practices, marketing information and material, customer
      names, proprietary ideas, concepts, know-how, methodologies and all other
      information related to the Company or the Business; provided,
      however,
      that
“Business
      Information”
will
      not include any of the foregoing that is then in the public domain.

     

    Section
      4.6. Public
      Announcements.
      None of
      the Seller, the Purchaser or their respective agents and representatives will
      issue any press release or public announcement concerning this Agreement or
      the
      transactions contemplated by this Agreement without obtaining the prior written
      approval of the other parties to this Agreement, unless otherwise required
      by
      Law, including any public disclosure which counsel advises should be made in
      order to comply with Law. Prior to making any such public disclosure, the
      disclosing parties will give the other parties a copy of the proposed
      disclosure, the reasons such disclosure is required by Law, the time and place
      the disclosure will be made and reasonable opportunity to comment on the same.
      Notwithstanding the foregoing, the Seller hereby acknowledges that the Purchaser
      is a wholly owned subsidiary of a publicly traded company and, as such, certain
      timely public disclosures by the Purchaser may be required. The Seller hereby
      approves the disclosures the Purchaser may from time to time make in compliance
      with those disclosure obligations. 

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Section
      4.7. Further
      Assurances.
      At or
      following the Closing, and without further consideration, the Seller will
      execute and deliver to the Purchaser such further instruments of conveyance
      and
      transfer as the Purchaser may reasonably request in order to more effectively
      convey and transfer the Units to the Purchaser and to put the Purchaser in
      operational control of the Company and the Business, or for aiding, assisting,
      collecting and reducing to possession any of the Company’s assets or exercising
      any rights with respect thereto. Each party to this Agreement agrees to execute
      any and all documents and to perform such other acts as may be necessary or
      expedient to further the purposes of this Agreement and the transactions
      contemplated hereby.

     

    Section
      4.8. Assistance
      with Permits and Filings.
      The
      Seller will furnish the Purchaser with all information concerning the Company
      or
      the Business that is required for inclusion in any application or filing made
      by
      the Purchaser to any Governmental Authority in connection with the transactions
      contemplated by this Agreement. The Seller will use commercially reasonable
      efforts to assist the Purchaser in obtaining any Permits, or any consents to
      assignment related thereto, that the Purchaser will require in connection with
      the continued operation of the Company and the Business after the Closing.
      

     

    Section
      4.9. Employee
      Benefit Retention.
      The
      Purchaser shall, at its option (i) cause the Company to continue the
      Company’s existing employee health insurance plan for a period of at least
      ninety (90) days after the Closing Date; (ii) pay the costs of the
      Company’s employees’ payments under the Consolidated
      Omnibus Budget Reconciliation Act of 1985
      for a
      period of at least ninety (90) days after the Closing Date; or (iii) cause
      the
      Company to provide a health care insurance plan for the employees of Company
      that is similar to the health insurance plan provided to the employees of
      Purchaser. 

     

    Section
      4.10. Supplemental
      Disclosure.
      The
      Seller will promptly supplement or amend each of the Schedules to this Agreement
      with respect to any matter that arises or is discovered after the date hereof
      that, if existing or known on the date hereof, would have been required to
      be
      set forth or listed in such Schedules.

     

    Section
      4.11. Payment
      of Notes and Release of Liens
      At the
      Closing, Purchaser shall provide to Seller, written confirmation, satisfactory
      to Seller and Seller’s counsel, that the all principal and accrued but unpaid
      interest due and owing by the Company to Nicolet National Bank, Green Bay,
      Wisconsin, relating to the two (2) promissory notes of Company dated January
      9,
      2007, in the original principal amounts of $2,000,000 and $500,000 respectively
      (with a current aggregate balance due of approximately $953,000.00) shall been
      paid in full, and all Encumbrances upon the assets of the Company securing
      such
      notes, shall have been released. 

     

    ARTICLE
      V.

    CONDITIONS
      PRECEDENT TO THE PURCHASER’S OBLIGATIONS

     

    The
      obligation of the Purchaser to consummate the purchase of the Units on the
      Closing Date is, at the option of the Purchaser, subject to the satisfaction
      of
      the following conditions (any or all of which may be waived by the Purchaser
      at
      or prior to the Closing):

     

    Section
      5.1. Representations,
      Warranties and Covenants.

     

    (a) All
      representations and warranties of the Seller contained in this Agreement must
      be
      true and correct in all material respects at and as of the Closing Date with
      the
      same effect as though those representations and warranties had been made again
      at and as of the Closing Date, except to the extent that certain of such
      representations and warranties are made as of or through a specified date (which
      representations and warranties must continue on the Closing Date to be true
      and
      correct in all material respects as of or through the specified
      date).

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (b) The
      Seller must have performed and complied, in all material respects, with all
      obligations and covenants required by this Agreement to be performed or complied
      with by them on or prior to the Closing Date.

     

    Section
      5.2. Litigation.
      No
      Legal Proceeding before any federal or state court or other Governmental
      Authority may have been instituted and be pending by any Person or been
      threatened by any Governmental Authority that (a) has or may have the effect
      of
      making illegal, impeding or otherwise restraining or prohibiting any of the
      transactions contemplated by this Agreement, (b) seeks to obtain damages in
      respect of the transactions contemplated by this Agreement or (c) could result
      in the disposition of any assets or operations of the Purchaser or its
      Affiliates or the Company or the imposition of any restriction on the manner
      in
      which the Purchaser or its Affiliates or the Company conduct their
      operations.

     

    Section
      5.3. Material
      Adverse Change.
      There
      must not have been a Material Adverse Change since the Balance Sheet
      Date.

     

    Section
      5.4. (Intentionally
      left blank)

     

    Section
      5.5. Consents.
      All
      consents, approvals, orders or authorizations of Governmental Authorities and
      other Persons (whether pursuant to Permits, Contracts or otherwise) necessary
      for the consummation of the transactions contemplated by this Agreement
      (including, without limitation, all consents or approvals by such directors,
      managers, general partners, or lenders of the Purchaser’s Affiliates as may be
      necessary for the consummation of the transactions contemplated by this
      Agreement) must have been obtained and all notices to Governmental Authorities
      and other Persons (whether pursuant to Permits, Contracts or otherwise)
      necessary for the consummation of the transactions contemplated by this
      Agreement must have been given. 

     

    Section
      5.6. Due
      Diligence.
      The
      Purchaser must have (a) completed its due diligence investigation of the
      Company, the Business and the Company’s assets (including legal, accounting,
      environmental and engineering matters) and the results of such investigation
      must have been satisfactory to the Purchaser, in its sole discretion, and (b)
      had the opportunity to discuss the Company’s business relationship with the
      Customers and the substance of such discussions must have been satisfactory
      to
      the Purchaser, in its sole discretion.

     

    Section
      5.7. Non-Competition
      Agreement.
      The
      Seller and those Company’s employees identified on Schedule
      5.7
      must
      have entered into a Non-competition Agreement (the “Non-Competition
      Agreement”)
      with
      the Purchaser in the form attached hereto as Exhibit
      C.

     

    Section
      5.8. Closing
      Deliveries.
      The
      Seller must have delivered (or caused to be delivered) to the Purchaser each
      of
      the following:

     

    (a) one
      or
      more certificates representing the Units, duly endorsed for transfer or
      accompanied by stock powers duly executed in blank, and any other documents
      that
      are necessary to transfer to Purchaser good title to all such Units,
free
      and
      clear of any Lien and subject to no legal or equitable restrictions of any
      kind
(collectively,
      the “Conveyance
      Agreements”);

     

    (b) a
      certificate (dated the Closing Date and in form and substance reasonably
      satisfactory to the Purchaser) in the form attached hereto as Exhibit
      D-1,
      executed on behalf of the Company, certifying as to the fulfillment of the
      conditions set forth in Section
      5.1
      and a
      certificate (dated the Closing Date and in form and substance reasonably
      satisfactory to the Purchaser) in the form attached hereto as Exhibit
      D-2,
      executed on behalf of the Seller, certifying as to the fulfillment of the
      conditions set forth in Section
      5.1;

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (c) receipts
      for the Cash Purchase Price paid to Seller at the Closing; 

     

    (d) all
      Business Information in the possession of the Seller, the Company or any of
      their Related Persons, agents or representatives; 

     

    (e) an
      original Non-Competition Agreement executed by the Seller for the benefit of
      the
      Purchaser, in the form attached hereto as Exhibit
      C;
      and

    

    (f) an
      original Lease executed by the Seller, in the form attached hereto as
Exhibit
      J;
      and

    

    (g) an
      original Subordination Agreement executed by the Seller, substantially in the
      form of Exhibit
      K,
      which
      is provided as a specimen.

    

    (h) one
      or
      more certificates representing the entire ownership interest in Com-Tec
      California, LP (and all other subsidiaries owned in whole or part by the
      Company), duly endorsed for transfer or accompanied by stock powers duly
      executed in blank, and any other documents that are necessary to transfer to
      Purchaser, or its designee, good title to all such ownership interests,
free
      and
      clear of any Lien and subject to no legal or equitable restrictions of any
      kind
(also
      included within the term “Conveyance
      Agreements”);

    

    Section
      5.9. Additional
      Matters.
      The
      Purchaser must have received such additional documents, instruments or items
      of
      information reasonably requested by it in respect of any aspect or consequence
      of the transactions contemplated by this Agreement. All corporate and other
      proceedings, and all documents, instruments and other legal matters in
      connection with the transactions contemplated by this Agreement or by the other
      agreements referred to in this Agreement must be reasonably satisfactory in
      form
      and substance to the Purchaser.

     

    ARTICLE
      VI.

    CONDITIONS
      PRECEDENT TO THE SELLER’S OBLIGATIONS

     

    The
      obligations of the Seller to consummate the sale, transfer and assignment to
      the
      Purchaser of the Units on the Closing Date is, at the option of the Seller
      Representative, subject to the satisfaction of the following conditions (any
      or
      all of which may be waived by the Seller Representative at or prior to the
      Closing):

     

    Section
      6.1. Representations,
      Warranties and Covenants.

     

    (a) All
      representations and warranties of the Purchaser contained in this Agreement
      must
      be true and correct in all material respects at and as of the Closing Date
      with
      the same effect as though those representations and warranties had been made
      again and as of the Closing Date.

     

    (b) The
      Purchaser must have performed and complied, in all material respects, with
      all
      obligations and covenants required by this Agreement to be performed or complied
      with by the Purchaser on or prior to the Closing Date.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Section
      6.2. Litigation.
      No
      Legal Proceeding before any federal or state court or other Governmental
      Authority may have been instituted and be pending by any Governmental Authority
      that has or would have the effect of making illegal, impeding or otherwise
      restraining or prohibiting any of the transactions contemplated by this
      Agreement.

     

    Section
      6.3. Closing
      Deliveries.
      The
      Purchaser must have delivered (or caused to be delivered) to the Seller each
      of
      the following:

     

    (a) the
      Cash
      Purchase Price by wire transfer of immediately available funds to an account
      or
      accounts designated in writing by the Seller Representative;

     

    (b) executed
      originals of the Conveyance Agreements to the extent any such Conveyance
      Agreements are required to be executed by the Purchaser;

     

    (c) an
      executed original of the Promissory Note;

     

    (d) an
      original General Business Security Agreement executed by ISI Controls, Ltd,.
      for
      the benefit of Seller in the form attached hereto as Exhibit
      E;

     

    (e) an
      original General Business Security Agreement executed by ISI Security Group,
      Inc. for the benefit of Seller in the form attached hereto as Exhibit
      F;

     

    (f) an
      original General Business Security Agreement executed by Argyle Security, Inc.
      for the benefit of Seller in the form attached hereto as Exhibit
      G;

     

    (g) an
      original guaranty agreement executed by ISI Security Group, Inc. for the benefit
      of the Seller in the form attached hereto as Exhibit
      H;

     

    (h) an
      original guaranty agreement executed by Argyle Security, Inc. for the benefit
      of
      the Seller in the form attached hereto as Exhibit
      I;
      

     

    (i) an
      original Subordination Agreement executed by the Purchaser, substantially in
      the
      form of Exhibit
      K,
      which
      is provided as a specimen;

     

    (j) a
      certificate (dated the Closing Date and in form and substance reasonably
      satisfactory to the Seller Representative) executed, on behalf of the Purchaser,
      by an officer of the Purchaser certifying as to the fulfillment of the
      conditions set forth in Section
      6.1
      and

     

    (k) the
      documentation required by Section 4.11.

     

    (l) an
      original Lease executed by the Purchaser, in the form attached hereto as
Exhibit
      J.

     

    Section
      6.4. Additional
      Matters.
      The
      Seller must have received such additional documents, instruments or items of
      information reasonably requested by it in respect of any aspect or consequence
      of the transactions contemplated by this Agreement. All corporate and other
      proceedings, and all documents, instruments and other legal matters in
      connection with the transactions contemplated by this Agreement or by the other
      agreements referred to in this Agreement must be reasonably satisfactory in
      form
      and substance to the Seller.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII.

    TERMINATION

     

    Section
      7.1. Termination.
      This
      Agreement may be terminated prior to or in the absence of the Closing as
      follows:

     

    (a) by
      the
      written agreement of the Purchaser and the Seller;

     

    (b) by
      either
      the Purchaser or the Seller if a final nonappealable Order is in effect
      restraining, enjoining or otherwise prohibiting the consummation of the
      transactions contemplated by this Agreement;

     

    (c) by
      the
      Purchaser, if Seller materially breaches any representation, warranty, covenant
      or agreement set forth in this Agreement or in any instrument executed in
      connection with the transactions contemplated by this Agreement that would
      be
      reasonably likely to prevent the Closing from occurring in accordance with
      this
      Agreement on or before the Closing Deadline;

     

    (d) by
      the
      Purchaser, if the Closing Date does not occur on or before the Closing Deadline,
      unless the failure of such occurrence is due to the failure of the Purchaser
      to
      perform or observe its agreements as set forth in this Agreement required to
      be
      performed or observed on or before the Closing Date;

     

    (e) by
      the
      Seller, if the Purchaser materially breaches any representation, warranty,
      covenant or agreement set forth in this Agreement or in any instrument executed
      in connection with the transactions contemplated by this Agreement that would
      be
      reasonably likely to prevent the Closing from occurring in accordance with
      this
      Agreement on or before the Closing Deadline;

     

    (f) by
      the
      Seller, if the Closing Date does not occur on or before the Closing Deadline,
      unless the failure of such occurrence is due to the failure of the Seller to
      perform or observe their agreements as set forth in this Agreement required
      to
      be performed or observed on or before the Closing Date; and

     

    (g) by
      the
      Purchaser, pursuant to Section
      7.3.

     

    (h) by
      either
      Party, pursuant to Section 7.4

    

    Section
      7.2. Effect
      of Termination.
      If this
      Agreement is terminated in accordance with Section
      7.1,
      and the
      transactions contemplated by this Agreement are not consummated, this Agreement
      will become null and void and of no further force and effect, except (a) for
      this Section
      7.2,
      (b) for
      the provisions of Section
      4.5,
      Section
      7.3
      (if
      applicable), Section
      7.4
      and
Section
      12.8
      and (c)
      that the termination of this Agreement for any cause will not relieve any party
      to this Agreement from any liability that at the time of termination had already
      accrued to any other party to this Agreement or that thereafter may accrue
      in
      respect of any act or omission of such party prior to such
      termination.

     

    Section
      7.3. Special
      Purchaser Termination Rights.
      The
      Purchaser may terminate this Agreement at any time without any liability
      accruing for such termination (“Termination
      for Cause”):
      (i) upon the filing or threat of filing of a Legal Proceeding against
      Seller relating to the transactions contemplated by this Agreement, (ii) if
      a
      substantial casualty occurs with respect to any material physical facilities
      of
      the Seller, (iii) if negative publicity occurs with respect to the Seller or
      the
      Business which a person could reasonably believe would have a material adverse
      effect on the Business after the closing date, (iv) the Seller is found by
      a
      Governmental Authority to have violated any material term of a Permit, (v)
      if
      any Governmental Authority initiates an investigation or Legal Proceeding
      against Seller or the Business, (vi) if there is any material inaccuracy in
      the
      Financial Statements, the financial statements provided pursuant to Section
      4.1(b)
      or other
      material business records of the Seller or the Business.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Section
      7.4. Termination
      Without Cause.
      Either
      Party may terminate this Agreement at any time without any liability accruing
      for such termination (“Termination without Cause”) at any time prior to the
      Closing, upon written notice to the other Party, and such Termination without
      Cause shall be effective immediately upon receipt of such notice or upon the
      effective date for such Termination without Cause stated in such notice
      whichever is later.

     

    Section
      7.5. Return
      of Confidential Information.
      If this
      Agreement is terminated in accordance with Section
      7.1 or 7.4,
      and the
      transactions contemplated by this Agreement are not consummated, (a) the
      Purchaser will (and will cause each of its Related Persons, agents and
      representatives to) return to the Seller or destroy all confidential or
      proprietary information of the Seller or the Company in their possession and
      certify such return or destruction to the Seller and (b) the Seller will (and
      will cause each of their Related Persons, agents and representatives to) return
      to the Purchaser or destroy all confidential or proprietary information of
      the
      Purchaser in their possession and certify such return or destruction to the
      Purchaser.

     

    ARTICLE
      VIII.

    INDEMNIFICATION

     

    Section
      8.1. Indemnification
      by the Seller.
      Subject
      to the other provisions of this Article
      VIII,
      the
      Persons constituting the Seller will jointly and severally defend, indemnify
      and
      hold the Purchaser and its Affiliates, shareholders and beneficial owners
      (whether direct or indirect), directors, officers, employees, consultants,
      agents and representatives (the “Indemnitees”)
      harmless from and against any and all Claims and Losses suffered by any
      Indemnitee arising from or relating to:

     

    (a) any
      facts
      that constitute, or any allegations that if true would constitute, a breach
      of
      any representation or warranty made by the Seller in this Agreement or in any
      certificate or other document required to be executed and delivered by the
      Seller pursuant to this Agreement;

     

    (b) any
      facts
      that constitute, or any allegations that if true would constitute, a breach
      or
      default in the performance of any covenant, obligation or agreement of the
      Seller pursuant to this Agreement or any certificate or other document required
      to be executed and delivered by them pursuant to this Agreement; 

     

    (c) any
      Claim
      founded in whole or in part on occurrences preceding the Closing (including,
      without limitation, Warranty Claims);

     

    (d) any
      Claim
      (of any and every nature possible) by an employee of the Company for any
      conduct, action or inaction of the Company, Seller or any employee of the
      Company, that occurred or caused (in whole or in part), prior to the Closing,
      any damage or injury, cost, fine or expense of any nature; 

     

    (e) any
      Claim
      for unpaid taxes or unpaid tax estimates relative to the conduct of the
      Company’s business prior to the Closing for so long as the applicable state and
      federal statute of limitations apply; and

    
      
        
        

      

      
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    (f) Claims
      or
      Losses suffered by Company, Purchaser, or its Affiliates, arising out of or
      related to any claim (of any and
      every
      nature possible) arising, in any manner, from any failure of Company to be
      authorized to conduct business as a foreign entity prior to the
      Closing.

     

    Section
      8.2. Threshold.
      The
      rights of the Indemnitees in this Article
      VIII
      are
      subject to a $100,000 threshold (the “Threshold
      Amount”).
      After
      the Indemnitees have suffered damages which in the aggregate equal or exceed
      the
      Threshold Amount from Claims or Losses subject to the Seller’s obligations of
      defense or indemnity in this Article
      VIII,
      the
      Indemnitees shall be entitled to assert claims for all damages suffered,
      including the Threshold Amount.

     

    Section
      8.3. Materiality.
      With
      respect to any claim for indemnification under this Article
      VIII
      relating
      to a breach (or alleged breach) of a representation or warranty that contains
      a
      materiality qualifier, such materiality qualifier will be considered for
      purposes of determining whether a breach of such representation and warranty
      has
      occurred, but such materiality qualifier will not be considered in determining
      the amount of the Losses arising out of such breach.

     

    Section
      8.4. Survival
      of Representations and Warranties.
      The
      representations and warranties of the Seller set forth in Article
      II
      and in
      the certificate delivered to the Purchaser pursuant to Section
      6.3(e)
      will
      survive the execution and delivery of this Agreement and the Closing until
      the
      three (3) year anniversary of the Closing, except that (a) the representations
      and warranties set forth in Section
      2.7(a)
      will
      survive indefinitely, (b) if the violation of any representation or warranty
      would constitute a violation of any Law, such representation or warranty will
      survive until thirty (30) days after expiration of the statute of limitations
      applicable to such violation and (c) any representation or warranty the
      violation of which is made the basis of a Claim for indemnification pursuant
      to
      this Article
      VIII
      will
      survive until such Claim is finally resolved if the Purchaser notifies the
      Seller of such Claim in reasonable detail prior to the date on which such
      representation or warranty would otherwise expire hereunder. No claim for
      indemnification pursuant to Section
      8.1(a)
      based on
      the breach or alleged breach of a representation or warranty may be asserted
      by
      the Purchaser after the date on which such representation or warranty
      expires.

     

    Section
      8.5. Termination
      of Indemnity Obligations. Any
      Claim
      sounding in tort brought by an Indemnitee against the Seller must be brought
      within two (2) years following the date that such Claim arises. Any Claim
      sounding in breach of contract brought by an Indemnitee against the Seller
      must
      be brought within three (3) years following the date that such Claim arises.
      Except as set forth in Sections 8.4(a), (b), and (c) and notwithstanding
      anything set forth in this Agreement to the contrary, the Seller’s obligations
      of defense and indemnity under this Article
      VIII
      terminate on the third (3rd)
      anniversary of the Closing Date.

     

    Section
      8.6. Notice
      and Resolution of Claims.

     

    (a) Notice.
      Each
      Indemnitee must provide reasonably prompt written notice to the Seller (the
      “Indemnifying
      Party”)
      after
      obtaining knowledge of any claim that it may have pursuant to Section
      8.1
      (whether
      for its own Losses or in connection with a Third Party Claim); provided that
      the
      failure to provide reasonably prompt notice will not limit the rights of an
      Indemnitee to indemnification hereunder except to the extent that such failure
      materially increases the dollar amount of any such claim for indemnification
      or
      materially prejudices the ability of the Indemnifying Party to defend such
      claim. Such notice will set forth in reasonable detail the claim and the basis
      for indemnification.

    
      
        
        

      

      
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    (b) Right
      to Assume Defense.
      With
      respect to a claim for indemnity that arises from a Third Party Claim, the
      Indemnifying Party will have thirty (30) days after receipt of notice to assume
      the conduct and control of the settlement or defense of such Third Party Claim,
      through counsel reasonably acceptable to the Indemnitee and at the expense
      of
      the Indemnifying Party, if (i) the Indemnifying Party acknowledges its
      obligation to indemnify the Indemnitee for any Losses resulting from such Third
      Party Claim, (ii) the Third Party Claim does not seek to impose any Liability
      on
      the Indemnitee other than for monetary damages and (iii) the Third Party Claim
      does not relate to the Indemnitee’s relationship with its customers or
      employees. The Indemnitee may participate in such defense or settlement through
      its own counsel, but such separate counsel will be at its own expense unless
      the
      conditions set forth above are not satisfied or unless one or more defenses,
      claims or counterclaims are available to the Indemnitee that conflict with
      one
      or more defenses, claims or counterclaims available to the Indemnifying Party.
      In no event, however, will the Indemnifying Party be liable for the fees and
      expenses of more than one separate counsel of the Indemnitee.

     

    (c) Obligations
      Following Assumption of Defense.
      If the
      Indemnifying Party assumes the defense of a Third Party Claim, it must take
      all
      steps necessary to investigate and defend or settle such Third Party Claim
      and
      will hold the Indemnitee harmless from and against any and all Losses caused
      by
      or arising out of any settlement approved by the Indemnifying Party or any
      judgment entered in connection with such Third Party Claim. Without the written
      consent of the Indemnitee, the Indemnifying Party will not consent to entry
      of
      any judgment or enter into any settlement that does not include an unconditional
      and complete release of the Indemnitee by the claimant or plaintiff making
      the
      Third Party Claim.

     

    (d) Failure
      to Assume Defense.
      Failure
      by the Indemnifying Party to notify the Indemnitee of its election to assume
      the
      defense of any Third Party Claim within thirty (30) days after its receipt
      of
      notice thereof pursuant to Section
      8.6(a)
      will be
      deemed a waiver by the Indemnifying Party of its right to assume the defense
      of
      such Third Party Claim. In such event, the Indemnitee may defend against such
      Third Party Claim in any manner it deems appropriate. The Indemnitee may settle
      such Third Party Claim or consent to the entry of any judgment with respect
      thereto, provided that it acts in good faith and in a commercially reasonable
      manner.

     

    Section
      8.7. Payment
      of Indemnity.
      Upon
      final agreement by the parties or the entry of a final, non-appealable order
      by
      a court of competent jurisdiction that an Indemnitee is entitled to
      indemnification under this Article
      VIII,
      the
      Indemnifying Party must promptly pay or reimburse, as appropriate, the
      Indemnitee for all Losses to which it is entitled to be indemnified hereunder.
      If Purchaser seeks to offset the principal balance due on the Promissory Note
      for any amount due, owing and unpaid by Seller pursuant to an obligation of
      indemnity hereunder, Purchaser must provide Seller with written notice of such
      intended offset in the same manner that notice of a Closing Adjustment is to
      be
      provided pursuant to Section 1.4(c), and provisions of Notice of Dispute and
      Dispute Resolution set forth in Sections 1.4(d) & (e) shall be applicable to
      any such offset.

     

    Section
      8.8. Indemnification
      by the Purchaser.
      Subject
      to the other provisions of this Article VIII, the Purchaser and its Affiliates,
      will jointly and severally, defend, indemnify, and hold the Seller (the
“Seller
      Indemnitees”)
      harmless from and against any and all Claims and Losses suffered by any of
      Seller Indemnitees arising out of or related to any claim (of any and every
      nature possible) by any construction bonding company of the Company for any
      conduct, action, or inaction by the Company or any employee of the Company,
      that
      occurred or caused (in whole or in part) prior to the Closing. 

     

    Section
      8.9. Notice
      and Resolution of Seller Indemnities Claim.
      

     

    (a) Notice.
      Each
      Seller Indemnitee must provide reasonably prompt written notice to the Purchaser
      (the “Purchaser Indemnifying
      Party”)
      after
      obtaining knowledge of any claim that it may have pursuant to Section
      8.8
      (a “Bond
      Claim”); provided that the failure to provide reasonably prompt notice will not
      limit the rights of a Seller Indemnitee to indemnification hereunder except
      to
      the extent that such failure materially increases the dollar amount of any
      such
      claim for indemnification or materially prejudices the ability of the Purchaser
      Indemnifying Party to defend such claim. Such notice will set forth in
      reasonable detail the claim and the basis for indemnification.

    
      
        
        

      

      
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    (b) Right
      to Assume Defense.
      With
      respect to a claim for indemnity that arises from a Bond Claim, the Purchaser
      Indemnifying Party will have thirty (30) days after receipt of notice to assume
      the conduct and control of the settlement or defense of such Bond Claim, through
      counsel reasonably acceptable to the Seller Indemnitee and at the expense of
      the
      Purchaser Indemnifying Party, if (i) the Purchaser Indemnifying Party
      acknowledges its obligation to indemnify the Seller Indemnitee for any Losses
      resulting from such Bond Claim, and (ii) the Bond Claim does not seek to impose
      any Liability on the Seller Indemnitee other than for monetary damages. The
      Seller Indemnitee may participate in such defense or settlement through its
      own
      counsel, but such separate counsel will be at its own expense unless the
      conditions set forth above are not satisfied or unless one or more defenses,
      claims or counterclaims are available to the Seller Indemnitee that conflict
      with one or more defenses, claims or counterclaims available to the Purchaser
      Indemnifying Party. In no event, however, will the Purchaser Indemnifying Party
      be liable for the fees and expenses of more than one separate counsel of the
      Seller Indemnitee.

     

    (c) Obligations
      Following Assumption of Defense.
      If the
      Purchaser Indemnifying Party assumes the defense of a Bond Claim, it must take
      all steps necessary to investigate and defend or settle such Bond Claim and
      will
      hold the Seller Indemnitee harmless from and against any and all Losses caused
      by or arising out of any settlement approved by the Purchaser Indemnifying
      Party
      or any judgment entered in connection with such Bond Claim. Without the written
      consent of the Seller Indemnitee, the Purchaser Indemnifying Party will not
      consent to entry of any judgment or enter into any settlement that does not
      include an unconditional and complete release of the Seller Indemnitee by the
      claimant or plaintiff making the Bond Claim.

     

    (d) Failure
      to Assume Defense.
      Failure
      by the Purchaser Indemnifying Party to notify the Seller Indemnitee of its
      election to assume the defense of any Bond Claim within thirty (30) days after
      its receipt of notice thereof pursuant to Section
      8.9(a)
      will be
      deemed a waiver by the Purchaser Indemnifying Party of its right to assume
      the
      defense of such Bond Claim. In such event, the Seller Indemnitee may defend
      against such Bond Claim in any manner it deems appropriate. The Seller
      Indemnitee may settle such Bond Claim or consent to the entry of any judgment
      with respect thereto, provided that it acts in good faith and in a commercially
      reasonable manner.

     

    Section
      8.10. Insurance
      Reimbursement and Tax Consequences.
      All
      amounts paid, by either party, pursuant to the parties’ indemnification
      obligations set forth in this Section 8 shall be net of any proceeds received
      from any insurance companies relative to the Claim or Loss, and shall further
      be
      net of any beneficial tax consequences, relative to such Claim or Loss, received
      by the indemnified party.

    
      
        
        

      

      
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    ARTICLE
      IX.

    TAX
      MATTERS

     

    Section
      9.1. Cooperation
      for Certain Tax-Related Matters.
      The
      Purchaser and the Seller will, and will cause their respective representatives
      and agents to, provide any requesting party that is a party to this Agreement
      with such assistance and documents, without charge, as may be reasonably
      requested by such party in connection with (a) the preparation of any Tax Return
      of or relating to the Seller, (b) the conduct of any Audit relating to liability
      for or refunds or adjustments with respect to Taxes and (c) any other
      Tax-related matter that is a subject of this Agreement. Such cooperation and
      assistance will be provided to the requesting party promptly upon its
      request.

     

    Section
      9.2. Transfer
      Taxes.
      Notwithstanding any other provision of this Agreement to the contrary, the
      Seller will be liable for and will pay of all transfer (including real property
      transfer and documentary), sales, use, gains (including state and local transfer
      gains taxes), excise and other transfer of similar Taxes incurred in connection
      with the transfer of the Units to the Purchaser, other than any Taxes based
      upon
      or measured by net income (collectively, “Transfer
      Taxes”).
      The
      Purchaser and the Seller will mutually cooperate in perfecting any exemption
      from Transfer Taxes available in connection with the transactions contemplated
      by this Agreement and in timely preparing and filing any Tax Returns required
      in
      connection with Transfer Taxes, provided,
      however,
      that in
      the case of any Tax Return required to be filed by only one party, such party
      will not file such Tax Return without the written consent of the other party,
      which consent will not be unreasonably withheld, conditioned or
      delayed.

     

    ARTICLE
      X.

    LEASE
      AGREEMENT

    

    The
      Seller and the Purchaser shall enter into the lease agreement, in substantially
      the form attached hereto as Exhibit
      J.

     

    ARTICLE
      XI.

    DEFINITIONS

     

    Section
      11.1. Definitions.
      As used
      in this Agreement, the following terms have the following meanings (such
      meanings to be equally applicable to both the singular and plural forms of
      the
      terms defined):

     

    “Acquisition”
means,
      other than the transactions contemplated by this Agreement, (a) a merger,
      consolidation, share exchange or business combination of the Company, (b) a
      sale, lease, exchange, mortgage, pledge, transfer or other disposition of twenty
      percent (20%) or more of the assets or profit- or revenue-generating capacity
      of
      the Company, (c) a sale of any of the capital stock or other equity interests
      in
      the Company, (d) a recapitalization (regardless of the form of transaction
      by
      which such recapitalization is accomplished) of the Company or (e) any other
      similar transaction involving Seller or the Company and a Third
      Party.

     

    “Affiliate”
means,
      with respect to a specified Person, any other Person or member of a group of
      Person acting together that, directly or indirectly, through one or more
      intermediaries, controls, or is controlled by or is under common control with,
      the specified Person. As used in this Agreement, the term “control”
      (including the terms “controlling,” “controlled by” and “under common control
      with”) means the possession, direct or indirect, of the power to direct or cause
      the direction of the management and policies of a Person, whether through the
      ownership of voting securities, by contract or otherwise.

    
      
        
        

      

      
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    “Balance
      Sheet”
means
      the balance sheet included in the Financial Statements.

     

    “Balance
      Sheet Date”
means
      the date of the Balance Sheet.

     

    “Business
      Day”
means
      any weekday on which nationally-chartered banks in San Antonio, Texas are open
      for business.

     

    “Charter
      Documents”
means
      the certificate of formation and limited liability company agreement or
      operating agreement of a limited liability company.

     

    “Claim”
means
      any existing or threatened claim, demand, suit, action, investigation,
      proceeding or cause of action of any kind or character (in each case, whether
      civil, criminal, investigative or administrative and whether made by a
      Governmental Authority or any other Person), known or unknown, absolute or
      contingent, asserted or unasserted, under any theory, including, without
      limitation, contract, tort, statutory liability, strict liability, employer
      liability, premises liability, products liability, breach of warranty or
      malpractice.

     

    “Closing
      Deadline”
means
      January 31, 2008.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended.

     

    “Company
      Contract”
means
      any Contract to which the Company is a party, obligor or beneficiary or by
      which
      any of the properties and assets of the Company is bound.

     

    “Contract”
means
      any written or oral contract, agreement, indenture, note, bond, loan,
      instrument, lease, mortgage, license, franchise, obligation, commitment or
      other
      arrangement, agreement or understanding.

     

    “Customer”
means
      any Person that has purchased goods or services from the Company during the
      twelve (12) month period immediately preceding the date of this Agreement and/or
      during the period between the date of this Agreement and the
      Closing.

     

    “Dollars”
means
      United States Dollars.

     

    “Encumbrance”
means
      any encumbrance, security interest, mortgage, deed of trust, lien, charge,
      pledge, option, right of first refusal or similar right, easement, restrictive
      covenant, Claim or restriction of any kind, including, without limitation,
      any
      restriction on the use, transfer, receipt of income or other exercise of any
      attributes of ownership.

     

    “Environmental
      Law”
means
      each present and future Law, Order or Permit pertaining to (a) public
      health or safety, (b) the protection, preservation or restoration of the
      environment or natural resources or (c) the generation, production, use,
      storage, transportation, processing, release or disposal of Hazardous
      Materials.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended.

     

    “Financial
      Statement”
is
      defined in Section
      2.4.

     

    “GAAP”
means
      generally accepted accounting principles in the United States as in effect
      on
      the date of this Agreement and incorporating management’s estimates used to
      prepare Financial Statements applied in a manner consistent with the Company’s
      historical accounting and bookkeeping practices and procedures, and historical
      financial statements, subject to determinations made by the Company’s
      auditor.

    
      
        
        

      

      
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    “Governmental
      Authority”
means
      any government or governmental or regulatory body thereof, or political
      subdivision thereof, whether federal, state, local or foreign, or any agency,
      department or instrumentality thereof, or any court (public or
      private).

     

    “Hazardous
      Material”
means
      any substance, material, contaminant, pollutant or waste presently or hereafter
      listed, defined, designated or classified as hazardous, toxic, radioactive
      or
      dangerous under any Environmental Law or regulated as such by any Governmental
      Authority including, without limitation, any industrial substance, petroleum
      (or
      any derivative or by-product thereof), radon, radioactive material, asbestos
      (or
      asbestos containing material), urea formaldehyde, foam insulation, lead or
      polychlorinated biphenyls.

     

    “Intellectual
      Property”
means
      all United States and foreign intellectual and industrial property, including
      patent applications, patents and any reissues or reexaminations thereof,
      trademarks, service marks, trademark/service mark registrations and
      applications, brand names, trade names, all other names and slogans embodying
      business or product goodwill (or both), copyright registrations, mask works,
      copyrights, moral rights of authorship, rights in designs, trade secrets,
      technology, inventions, discoveries, improvements, know-how, proprietary rights,
      computer software and firmware, internet domain names, specifications, drawings,
      designs, formulae, processes, methods, technical information, confidential
      and
      proprietary information, and all other intellectual and industrial property
      rights, whether or not subject to statutory registration or
      protection.

     

    “Law”
means
      any applicable law, statute, code, ordinance, rule or regulation promulgated
      by
      any Governmental Authority, including any policy having the force and effect
      of
      law, any rule of common law and any judicial or administrative interpretation
      thereof.

     

    “Legal
      Proceeding”
means
      any judicial, administrative, regulatory or arbitral proceeding, investigation
      or inquiry or administrative charge or complaint pending at law or in equity
      by
      or before any Governmental Authority.

     

    “Liabilities”
means
      any and all Claims, debts, liabilities and obligations of any nature whether
      absolute or contingent, asserted or unasserted, accrued or unaccrued, liquidated
      or otherwise.

     

    “Losses”
means
      all Liabilities, losses, damages, diminutions in value, costs (including,
      without limitation, costs of investigation), fines, fees and expenses (including
      reasonable attorneys’ fees incident to any of the foregoing).

     

    “Material
      Adverse Change”
means
      a
      material adverse change in the properties, assets, condition (financial or
      otherwise), Business, operations or prospects of the Company taken as a whole,
      or an increase in Seller’s liabilities, except trade obligations incurred in the
      Ordinary Course of Business.

     

    “Material
      Adverse Effect”
means,
      with respect to any Person, a material adverse effect on the properties, assets,
      condition (financial or otherwise), business, operations or prospects of such
      Person.

     

    “Order”
means
      any order, injunction, judgment, decree, ruling, writ, assessment or arbitration
      award by a Governmental Authority of competent jurisdiction.

     

    “Ordinary
      Course of Business”
means
      the usual and ordinary course of business for the Business, consistent with
      past
      practice.

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    “PBGC”
means
      the Pension Benefit Guaranty Corporation.

     

    “Permit”
means
      any written approval, consent, exemption, franchise, license, permit, waiver,
      registration, filing, certificate or other authorization required by Law to
      conduct any portion of the Business as currently conducted or as proposed to
      be
      conducted following this transaction, including without limitation all licenses
      and local health and fire permits pertaining to the physical facilities,
      manufacturing, equipment, staffing and records.

     

    “Person”
means
      any natural person, corporation, partnership, firm, joint venture, limited
      liability company, association, joint-stock company, trust, unincorporated
      organization, Governmental Authority or other legal entity.

     

    “Promissory
      Note”
is
      defined in Section
      1.3(b).

     

    “Related
      Parties”
means,
      with respect to any Person, the Affiliates, shareholders and beneficial owners
      (whether direct or indirect), directors, officers, employees and consultants
      of
      such Person, and the family members of each of the foregoing who are natural
      persons.

     

    “Seller
      Contract”
means
      any Contract to which Seller is a party, obligor or beneficiary or by which
      any
      of the properties and assets of Seller is bound.

     

    “Taxes”
      (including, with correlative meaning, the term “Tax”)
      means
      all taxes, charges, fees, levies, duties, penalties, assessments or other
      amounts imposed by or payable to any foreign, federal, state, local or other
      taxing authority or agency, including without limitation income, gross receipts,
      profits, windfall profits, gains, minimum, alternative minimum, estimated,
      ad
      valorem, value added, severance, stamp, customs, import, export, utility, use,
      service, excise, property, sales, transfer, franchise, payroll, withholding,
      social security, disability, employment, workers compensation, unemployment
      compensation and other taxes, and including any interest, penalties or additions
      attributable thereto.

     

    “Tax
      Return”
means
      any return, report, information return or other document (including any related
      or supporting information) required to be prepared with respect to
      Taxes.

     

    “Third
      Party”
means
      any Person other than the Seller, the Purchaser or any of their respective
      Affiliates.

     

    “Valuation
      Periods”
means
      the period from July 1, 2007 to the Closing Date (the “Working Capital Valuation
      Period”) and the period from the Closing Date to June 30, 2008 (the “2008
      Valuation Period”).

     

    “Warranty
      Claim”
means
      any Claims and Losses arising from or relating to any breach of any warranty
      owed for any work performed, goods or services delivered, or in any way related
      to any performance of any Company Contract by the Company.

     

    ARTICLE
      XII.

    MISCELLANEOUS

     

    Section
      12.1. Headings.
      Article
      and section headings of this Agreement are for reference purposes only and
      are
      to be given no effect in the construction or interpretation of this
      Agreement.

    
      
        
        

      

      
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    Section
      12.2. Article,
      Section, Schedule and Exhibit References.
      Except
      as otherwise specifically provided, any reference to any article, section,
      schedule or exhibit will be deemed to refer to such article or section of or
      schedule or exhibit to this Agreement.

     

    Section
      12.3. Usage.
      Whenever the plural form of a word is used in this Agreement, that word will
      include the singular form of that word. Whenever the singular form of a word
      is
      used in this Agreement, that word will include the plural form of that word.
      The
      term “or” does not exclude any of the items described. The term “include,” or
      any derivative of such term, does not mean that the items following such term
      are the only types of such items.

     

    Section
      12.4. Drafting.
      Neither
      this Agreement nor any provision contained in this Agreement may be interpreted
      in favor of or against any party hereto because such party or its legal counsel
      drafted this Agreement or such provision.

     

    Section
      12.5. Entire
      Agreement.
      The
      exhibits and schedules to this Agreement are hereby incorporated and made a
      part
      hereof and are an integral part of this Agreement. This Agreement (including
      such exhibits and schedules) represents, and is intended to be, a complete
      statement of all of the terms and the arrangements between the parties to this
      Agreement with respect to the matters provided for in this Agreement, supersedes
      any and all previous oral or written and all contemporaneous oral agreements,
      understandings, negotiations and discussions between the parties to this
      Agreement with respect to those matters.

     

    Section
      12.6. GOVERNING
      LAW; VENUE.
      THIS
      AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF TEXAS WITHOUT REFERENCE TO THE PRINCIPLES OF CONFLICTS OF LAWS OR
      ANY
      OTHER PRINCIPLE THAT COULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER
      JURISDICTION. ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
      THIS
      AGREEMENT MUST BE INSTITUTED IN THE STATE OR FEDERAL COURTS LOCATED IN BEXAR
      COUNTY, TEXAS, TO THE JURISDICTION OF WHICH EACH OF THE PARTIES HEREBY EXPRESSLY
      AND IRREVOCABLY AGREES TO SUBMIT. THE PARTIES AGREE TO ENTER INTO MEDIATION
      PRIOR TO TRIAL IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT. THE PARTIES HEREBY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUIT,
      ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

     

    Section
      12.7. Specific
      Performance.
      The
      Purchaser and the Seller each acknowledge and agree that the breach of this
      Agreement would cause irreparable damage to one or more of the other parties
      and
      that such other party or parties will not have an adequate remedy at law.
      Therefore, the obligations of the Purchaser and the Seller under this Agreement
      will be enforceable by a decree of specific performance issued by any court
      of
      competent jurisdiction, and appropriate injunctive relief may be applied for
      and
      granted in connection therewith. However, the remedies set forth in ARTICLE
      VIII, Indemnification, shall be exclusive remedy that the Parties may pursue
      for
      the subject matter reflected therein. 

     

    Section
      12.8. Expenses.

     

    (a) Except
      as
      otherwise expressly provided in this Agreement and regardless of whether the
      transactions contemplated in this Agreement are consummated, each of the parties
      to this Agreement will bear its own expenses (including, without limitation,
      fees and disbursements of its counsel, accountants, financial advisors and
      other
      experts), incurred in connection with the preparation, negotiation, execution,
      delivery and performance of this Agreement, each of the other documents and
      instruments executed in connection with or contemplated by this Agreement and
      the consummation of the transactions contemplated by this Agreement and
      thereby.

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    (b) If
      attorneys’ fees or other costs are incurred to secure performance of any
      obligation under this Agreement, to establish damages for the breach thereof
      or
      to obtain any other appropriate relief, whether by way of prosecution or
      defense, the prevailing party will be entitled to recover reasonable attorneys’
fees and costs incurred in connection therewith.

     

    Section
      12.9. Notices.
      All
      notices, requests, demands, and determinations under this Agreement (other
      than
      routine operational communications), must be in writing and will be deemed
      duly
      given (a) when delivered by hand, (b) one day after being given to an express
      courier with a reliable system for tracking delivery, (c) when sent by confirmed
      facsimile with a copy sent by another means specified in this provision or
      (d)
      five days after the day of mailing, when mailed by registered or certified
      mail,
      return receipt requested, postage prepaid, and addressed as set forth below.
      A
      party may from time to time change its address or designee for notification
      purposes by giving the other written notice of the new address or designee
      and
      the date upon which it will become effective.

     

    If
      to the
      Purchaser:                                  ISI
      Controls, Ltd.

    12903
      Delivery Drive

    San
      Antonio, TX 78247

    Facsimile:
      (210) 495-5613

    Attention:
      Sam Youngblood

     

    with
      a
      copy to:

     

    K&L
      Gates

    111
      Congress Avenue, Suite 900

    Austin,
      Texas 78701

    Facsimile:
      (512) 482-6859

    Attention:
      D. Hull Youngblood, Jr.

     

    If
      to the
      Seller:                                       
c/o
      Corcoran Glass & Paint, Inc.

    N100
      Craftsmen Drive

    Greenville,
      WI 54942

                         
    Facsimile:
      (920)
      757-9902

    Attn:
      Jeffrey E. Corcoran 

    

    with
      a
      copy to:

     

    Metzler,
      Timm, Treleven & Hermes, S.C. 

    222
      Cherry Street

    Green
      Bay, WI 54301-4223

    Facsimile:
      (920)435-8866

    Attn:
      David J. Timm 

    

    Section
      12.10. Severability.
      The
      invalidity or unenforceability of any provision of this Agreement will not
      affect the validity or enforceability of any other provision of this Agreement,
      each of which will remain in full force and effect, so long as the economic
      or
      legal substance of the transactions contemplated by this Agreement is not
      affected in a manner materially adverse to any party.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    Section
      12.11. Binding
      Effect; No Assignment.
      This
      Agreement will be binding upon and inure to the benefit of the parties and
      their
      respective successors and assigns. Nothing in this Agreement will create or
      be
      deemed to create any third party beneficiary rights in any Person not party
      to
      this Agreement except to the extent such obligations are specifically assumed.
      No assignment of this Agreement or of any rights or obligations under this
      Agreement may be made by any party (by operation of Law or otherwise) without
      the prior written consent of each of the other parties to this Agreement and
      any
      attempted assignment without such required consents will be void; provided,
      however,
      that
      the Purchaser may assign to one or more of its Affiliates any or all of its
      rights under this Agreement without the prior written consent of any other
      party, but no such assignment by the Purchaser will release the Purchaser from
      any of its obligations under this Agreement.

     

    Section
      12.12. Amendments.
      This
      Agreement may be amended, supplemented or modified, and any provision hereof
      may
      be waived, only by written instrument making specific reference to this
      Agreement signed by the Purchaser and the Seller. Except as otherwise provided
      in this Agreement, no action (other than a waiver) taken pursuant to this
      Agreement, including, without limitation, any investigation by or on behalf
      of
      any party, will be deemed to constitute a waiver by the party taking such action
      of compliance with any representation, warranty, covenant or agreement contained
      in this Agreement. The waiver by any party to this Agreement of a breach of
      any
      provision of this Agreement will not operate or be construed as a further or
      continuing waiver of such breach or as a waiver of any other or subsequent
      breach. Except as otherwise expressly provided in this Agreement, no failure
      on
      the part of any party to exercise, and no delay in exercising, any right, power
      or remedy under this Agreement will operate as a waiver thereof, nor will any
      single or partial exercise of such right, power or remedy by such party preclude
      any other or further exercise thereof or the exercise of any other right, power
      or remedy. 

     

    Section
      12.13. Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which will
      be
      deemed an original, but all of which together will constitute one and the same
      instrument.

     

    Section
      12.14. Provisions
      Concerning the Seller Representative.

     

    (a) Appointment.
      Each
      Person constituting the Seller hereby appoints the Seller Representative as
      the
      agent, proxy and attorney-in-fact for such Person for all purposes under this
      Agreement (including full power and authority to act on the Seller’s behalf).
      The action or inaction of the Seller Representative as contemplated in this
      Agreement shall bind all of the Persons constituting the Seller for all purposes
      of this Agreement, and the Seller may only take action in respect of this
      Agreement by and through the Seller Representative. Without limiting the
      generality of the foregoing, the Seller Representative will be authorized
      to:

     

    (i) in
      connection with the Closing, execute and receive all documents, instruments,
      certificates, statements and agreements on behalf of and in the name of the
      Seller necessary to effectuate the Closing and consummate the transactions
      contemplated hereby;

     

    (ii) take
      all
      actions on behalf of the Seller with respect to the matters set forth in
Section
      1.4;

     

    (iii) take
      all
      actions on behalf of the Seller in connection with any claims made under
Article
      VIII
      to
      defend or settle such claims, and to make payments in respect of such
      claims;

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    (iv) execute
      and deliver, should it elect to do so in its sole discretion, on behalf of
      the
      Seller, any amendment to this Agreement so long as such amendment will apply
      equally to each of the Persons constituting the Seller; and

     

    (v) take
      all
      other actions to be taken by or on behalf of the Seller and exercise any and
      all
      rights which the Seller are permitted or required to do or exercise under this
      Agreement.

     

    (b) Liability
      of the Seller Representative.
      The
      Seller Representative will not be liable to any Person constituting the Seller
      for any action taken by it in good faith pursuant to this Agreement, and each
      such Person will severally, but not jointly, indemnify the Seller Representative
      from any Losses arising out of its serving as the Seller Representative
      hereunder. The Seller Representative is serving in that capacity solely for
      purposes of administrative convenience, and is not personally liable in such
      capacity for any of the obligations of the Seller hereunder, and Buyer agrees
      that it will not look to the personal assets of the Seller Representative,
      acting in such capacity, for the satisfaction of any obligations to be performed
      by the Seller hereunder.

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties to this Agreement have executed this instrument
      as
      of the date and year first above written.

     

    
      	“PURCHASER”
	ISI
              Controls, Ltd.
	By:
              Metroplex Control Systems, Inc.
	Its:
              Sole General Partner
	 	 
	By:
              	
              /s/
                Sam Youngblood

            
	Name: 	
              Sam
                Youngblood

            
	Title: 	
              CEO

            

    

    

    
      	
              “SELLER”:

            
	 
	
              /s/
                Jeffrey E. Corcoran

            
	
              Jeffrey
                E. Corcoran

            
	 
	
              /s/
                Janell D. Corcoran

            
	
              Janell
                D. Corcoran

            

    

    

    
      	THE
              SELLER REPRESENTATIVE:
	 	 
	/s/
              Jeffrey E. Corcoran 
              

            
	Jeffrey
              E. Corcoran
	 	 
	 	 
	The
              Company is executing this Agreement for the purpose of Article
              II.
	 	 
	Com-Tec
              Security, LLC
	 	 
	By:
              	
              /s/
                Jeffrey E. Corcoran

            
	 	
               Jeffrey
                E. Corcoran, Manager

            

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    Annex
      A

    Selling
      Members

    

    Schedules
      to the Agreement

    

    Schedule
      2.6(g)

    List
      of Contracts

    

    Schedule
      2.6(j)

    Transactions
      between Company and a Related Party

     

    Schedule
      2.7(a)

    Untitled
      Assets

     

    Schedule
      2.7(d)

    Leased
      Properties

     

    Schedule
      2.7(d)(iv)

    List
      of Attachments, Executions or Assignments for the benefit of
      Creditors

     

    Schedule
      2.8(a)

    Company
      Contracts

     

    Schedule
      2.8(b)

    Selected
      Company Contracts

     

    Schedule
      2.10(a)

    Intellectual
      Property

     

    Schedule
      2.10(b)

    Business
      Intellectual Property

     

    Schedule
      2.12(a)

    List
      of Names and Addresses of Officers and Employees

     

    Schedule
      2.12(b)

    List
      of Labor, Union or Collective Bargaining Agreements

     

    Schedule
      2.13(a)

    Employee
      Benefit Plans

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

    Schedule
      2.15

    Company
      Permits

     

    Schedule
      2.17

    Pending
      or Threatened Legal Proceedings

     

    Schedule
      2.20

    Assumed
      Names

     

    Schedule
      2.21

    Subsidiaries
      and Investments

     

    Schedule
      5.7

    Company
      Employees (Employment Agreements)

     

    Exhibit
      A

    Promissory
      Note

     

    Exhibit
      B

    (Intentionally
      Omitted)

     

    Exhibit
      C

    Form
      of Non-Competition Agreement

     

    Exhibit
      D-1

    Form
      of Company Certificate

     

    Exhibit
      D-2

    Form
      of Seller’s Certificate

     

    Exhibit
      E

    Form
      of General Business Security Agreement (ISI Controls,
      Ltd.)

     

    Exhibit
      F

    Form
      of General Business Security Agreement (ISI Security Group,
      Inc.)

     

    Exhibit
      G

    Form
      of General Business Security Agreement (Argyle Security,
      Inc.)

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    Exhibit
      H

    Form
      of ISI Guaranty

     

    Exhibit
      I

    Form
      of Argyle Guaranty

     

    Exhibit
      J

    Lease
      Agreement

     

    Exhibit
      K

    LaSalle
      Subordination Agreement

    (specimen)

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    ANNEX
      A

    

    Selling
      Members

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1.
      Jeffrey E. Corcoran

    

    2.
      Janell
      D. Corcoran

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Schedules
      to Unit Purchase Agreement

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
        A

      

      Promissory
        Note

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

    

    
       

      ISI
        CONTROLS, LTD.

      (A
        TEXAS LIMITED PARTNERSHIP)

       

      SUBORDINATED
        PROMISSORY NOTE

      

      
        	
                $3,515,000.00

              	
                January
                  31, 2008

              
	
                 

              	
                 

                San
                  Antonio, Texas 

              

      

       

      FOR
        VALUE
        RECEIVED, ISI Controls, Ltd. (the “Maker”)
        promises to pay to JEFFREY
        E. CORCORAN and
        JANELL
        D. CORCORAN at
        N100
        Craftsmen Drive, Greenville, Wisconsin, 54942 (“Holder”),
        owners of all of issued and outstanding units of ownership of COM-TEC SECURITY,
        LLC (“COM-TEC”)
        in
        lawful money of the United States of America the principal sum of THREE MILLION
        FIVE HUNDRED FIFTEEN THOUSAND DOLLARS ($3,515,000.00), or such lesser amount
        as
        shall equal the outstanding principal amount hereof, together with interest
        from
        the date of this Note on the unpaid principal balance at a rate equal to
        7.0%
        per annum, computed on the basis of the actual number of days elapsed and
        a year
        of 365 days. All unpaid principal, together with any then unpaid and accrued
        interest and other amounts payable hereunder, shall be due and payable on
        the
        earlier of (i) April 1, 2011 (the “Maturity
        Date”),
        or
        (ii) when, upon or after the occurrence of an Event of Default (as defined
        below), such amounts are declared due and payable by Holder or made
        automatically due and payable in accordance with the terms hereof. Until
        the
        Maturity Date, payments shall be due and payable in accordance with the Payment
        Schedule attached hereto as Schedule
        A.
        This
        Note is issued pursuant to the Unit Purchase Agreement effective January
        31,
        2008 (as previously or hereafter amended, modified or supplemented, the
“Purchase
        Agreement”)
        between the Maker and COM-TEC, and is guaranteed by affiliates of the Maker
        pursuant to Guaranty Agreements of even date herewith. Notwithstanding anything
        to the contrary contained herein, the Note and all principal and accrued
        interest shall be due and payable on the Maturity Date. Unpaid principal
        and
        interest bear interest after maturity until paid (whether by acceleration
        or
        lapse of time) at the rate which would otherwise be applicable, plus five
        (5)
        percentage points.

       

      The
        following is a statement of the rights of Holder and the conditions to which
        this Note is subject, and to which Holder, by the acceptance of this Note,
        agrees: 

       

      1. Definitions.
        As used
        in this Note, the following capitalized terms have the following
        meanings:

       

      (a) “Maker”
        includes the limited partnership initially executing this Note and any Person
        which shall succeed to or assume the obligations of the Maker under this
        Note.

       

      (b) “Event
        of Default”
has
        the
        meaning given in Section 5
        hereof.

       

      (c) “Holder”
shall
        mean the Person specified in the introductory paragraph of this Note or any
        Person who shall, at the time, be the registered holder of this
        Note.

       

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

       

      (d) “Purchase
        Agreement”
has
        the
        meaning given in the introductory paragraph hereof.

       

      (e) “Obligations”
shall
        mean and include all loans, advances, debts, liabilities and obligations,
        howsoever arising, owed by the Maker to Holder of every kind and description
        (whether or not evidenced by any note or instrument and whether or not for
        the
        payment of money), now existing or hereafter arising under or pursuant to
        the
        terms of this Note, including, all interest, fees, charges, expenses, attorneys’
fees and costs and accountants’ fees and costs chargeable to and payable by the
        Maker hereunder, in each case, whether direct or indirect, absolute or
        contingent, due or to become due, and whether or not arising after the
        commencement of a proceeding under Title 11 of the United States Code (11
        U.S.C. Section 101 et
        seq.),
        as
        amended from time to time (including post-petition interest) and whether
        or not
        allowed or allowable as a claim in any such proceeding.

       

      (f) “Person”
shall
        mean and include an individual, a partnership, a corporation (including a
        business trust), a joint stock Maker, a limited liability Maker, an
        unincorporated association, a joint venture or other entity or a governmental
        authority.

       

      (g) “Securities
        Act”
shall
        mean the Securities Act of 1933, as amended.

       

      (h)
        Senior
        Indebtedness”
means,
        all principal of (and premium, if any) and interest on all indebtedness of
        Maker, whether outstanding on the date of this Note or thereafter created,
        incurred or assumed, arising only under (i) that certain Amended and Restated
        Loan and Security Agreement by and between LaSalle Bank, NA, and ISI Security
        Group, Inc. dated as of January 23, 2008, as it has been and may be amended
        from
        time to time, and (ii) that certain Note and Warrant Purchase Agreement (the
        “Blair
        Indebtedness”)
        by and
        among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
        partnership, Maker, and affiliates of Maker party thereto dated as of October
        22, 2004, as it has been and may be amended from time to time (collectively,
        the
“Senior
        Indebtedness”).
        Senior
        Indebtedness shall include any such indebtedness or any notes or other evidence
        of indebtedness issued in exchange for such Senior Indebtedness, or any
        indebtedness arising from the satisfaction of such Senior Indebtedness by
        a
        guarantor. No other indebtedness of the Maker shall be considered Senior
        Indebtedness.

       

      (i)
        “Subsidiary”
shall
        mean (a) any corporation of which more than 50% of the issued and
        outstanding equity securities having ordinary voting power to elect a majority
        of the Board of Directors of such corporation is at the time directly or
        indirectly owned or controlled by the Maker, (b) any partnership, joint
        venture, or other association of which more than 50% of the equity interest
        having the power to vote, direct or control the management of such partnership,
        joint venture or other association is at the time directly or indirectly
        owned
        and controlled by the Maker, (c) any other entity included in the financial
        statements of the Maker on a consolidated basis.

       

      2. Interest.
        Accrued
        interest on this Note shall be payable in accordance with Schedule A until
        the
        outstanding principal amount hereof shall be paid in full. Any accrued but
        unpaid interest on this Note shall be payable at the time this Note is paid
        in
        full.

       

      
        
          
          

        

        
          A-3

          
            

          

        

        
          
          

        

      

       

      3. Prepayment.
        Full or
        partial prepayment of this Note is permitted at any time without penalty.
        Unless
        otherwise agreed to by Lender at the time of payment, any payment shall be
        applied first against interest accrued to the date of such payment and then
        to
        principal. In the event of prepayment by Maker, such principal amounts being
        paid shall be applied to principal installments due under this Note in the
        inverse order in which they are due, and shall not defer any succeeding
        installments of principal or interest due hereunder. Maker agrees not to
        send
        Lender payments marked “paid in full,” “without recourse,” or similar language.
        If Maker sends such a payment, Lender may accept it without losing any of
        Lender’s rights under this Note, and Maker will remain obligated to pay any
        further amount owed to Lender.

       

      4. Subordination.
        The
        indebtedness evidenced by this Note is hereby expressly subordinated in right
        of
        payment to the prior payment in full of all of the Maker’s Senior Indebtedness,
        whether now or hereafter existing. Holder hereby agrees to execute and deliver
        such documents as may be reasonably requested from time to time by the Maker
        or
        a holder of any Senior Indebtedness, including customary forms of subordination
        agreement requested from time to time by a holder of Senior Indebtedness,
        in
        order to implement Section 4 hereof. The Maker may require that the Holder
        execute such documents as a condition to the Holder’s rights
        hereunder.

       

      5. Events
        of Default.
        Upon
        the occurrence of any one or more of the following events of
        default:

      A. Maker
        fails to pay any amount when due and such default remains uncured for a period
        of five (5) days after written or telephonic (promptly confirmed in writing)
        notice thereof has been given to Maker by Lender;

       

      B. Any
        representation or warranty made under this Note or in the Unit Purchase
        Agreement, or information provided by Maker to Lender in connection with
        this
        Note or the Unit Purchase Agreement is or was false or fraudulent in any
        material respect;

       

      C. A
        material adverse change occurs in Maker’s financial condition;

       

      D. Maker
        fails to timely observe or perform any of the non-monetary covenants or duties
        contained in this Note or the Unit Purchase Agreement, and such event shall
        remain uncured for a period of fourteen (14) days after written or telephonic
        (promptly confirmed in writing) notice thereof has been given to Maker by
        Lender;

       

      E. Maker
        fails to timely observe or perform any of the covenants or duties contained
        in
        the Lease Agreement, executed on even date herewith (the “Lease”) by and between
        Lender and Maker, which such default shall occur on or before the second
        anniversary of the Commencement Date, as defined in the Lease, and such default
        under the Lease shall remain uncured for a period fourteen (14) days after
        written or telephonic (promptly confirmed in writing) notice thereof has
        been
        given to Maker by Lender;

       

      F. Any
        guaranty of Maker’s obligations under this Note is revoked or becomes
        unenforceable for any reason; or

       

      
        
          
          

        

        
          A-4

          
            

          

        

        
          
          

        

      

       

      G. Maker
        or
        a surety or guarantor of this Note ceases to exist;

       

      H. An
        event
        of default occurs under any agreement securing this Note, and such event
        shall
        remain uncured for a period of fourteen (14) days after written or telephonic
        (promptly confirmed in writing) notice thereof has been given to Maker by
        Lender;

       

      then
        the
        unpaid balance and all accrued interest shall, at the option of Lender, without
        notice, mature and become immediately payable. The unpaid balance shall
        automatically mature and become immediately payable in the event any Maker,
        surety, endorser or guarantor becomes the subject of bankruptcy or other
        insolvency proceedings. Lender’s receipt of any payment on this Note after the
        occurrence of an event of default shall not constitute a waiver of the default
        or the Lender’s rights and remedies upon such default. 

       

      6. Rights
        of Holder upon Default.
        Upon
        the occurrence or existence of any Event of Default (other than an Event
        of
        Default described in Sections 5(b)
        or
5(c))
        and at
        any time thereafter during the continuance of such Event of Default, Holder
        may,
        by written notice to the Maker, declare all outstanding Obligations payable
        by
        the Maker hereunder to be immediately due and payable without presentment,
        demand, protest or any other notice of any kind, all of which are hereby
        expressly waived. Upon the occurrence or existence of any Event of Default
        described in Sections 5(b)
        and
5(c), immediately
        and without notice, all outstanding Obligations payable by the Maker hereunder
        shall automatically become immediately due and payable, without presentment,
        demand, protest or any other notice of any kind, all of which are hereby
        expressly waived. In addition to the foregoing remedies, upon the occurrence
        or
        existence of any Event of Default, Holder may exercise any other right power
        or
        remedy permitted to it by law, either by suit in equity or by action at law,
        or
        both, and shall be entitled to recover all costs, fees and expenses incurred
        as
        a result of such Event of Default, including but not limited to all reasonable
        attorneys fees.

       

      7. Successors
        and Assigns.
        Subject
        to the restrictions on transfer described in Sections 10
        and
11
        below,
        the rights and obligations of the Maker and Holder shall be binding upon
        and
        benefit the successors, assigns, heirs, administrators and transferees of
        the
        parties.

       

      8. Waiver
        and Amendment.
        Any
        provision of this Note may be amended, waived or modified upon the written
        consent of the Maker and Holder.

       

      9.Assignment.
        With
        respect to any offer, sale or other disposition of this Note Holder will
        give
        written notice to the Maker prior thereto, describing briefly the manner
        thereof, together with, a written opinion of Holder’s counsel, or other evidence
        reasonably satisfactory to the Maker, to the effect that such offer, sale
        or
        other distribution may be effected without registration or qualification
        (under
        any federal or state law then in effect). Upon receiving such written notice
        and
        reasonably satisfactory opinion, if so requested, or other reasonably
        satisfactory evidence, the Maker, as promptly as practicable, shall notify
        Holder that Holder may sell or otherwise dispose of this Note, in accordance
        with the terms of the notice delivered to the Maker. If a determination has
        been
        made pursuant to this Section 9
        that the
        opinion of counsel for Holder, or other evidence, is not reasonably satisfactory
        to the Maker, the Maker shall so notify Holder promptly after such determination
        has been made, stating with reasonable specificity the reason(s) for such
        determination. The Note shall bear the following legend (or a substantially
        similar legend) unless in the opinion of counsel for the Maker, such legend
        is
        not required in order to ensure compliance with the Securities Act:

       

      
        
          
          

        

        
          A-5

          
            

          

        

        
          
          

        

      

      

      THIS
        NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
        IT
        MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
        OF AN
        EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN
        OPINION OF COUNSEL SATISFACTORY TO THE MAKER THAT SUCH REGISTRATION IS NOT
        REQUIRED.

       

      10. The
        Maker
        or Argyle may issue stop transfer instructions to its transfer agent in
        connection with such restrictions. Notwithstanding
        the forgoing, Holder (or any assignee of the Holder permitted pursuant to
        the
        Section 10) may, after the expiration of six months following the Closing
        Date
        of the Purchase Agreement, transfer or assign all or any portion of this
        Note,
        upon 5 days advance written notice to the Maker, to any of the following
        entities, without securing prior approval from the Maker: (i) the Maker;
        (ii)
        any affiliate of the Holder; or (iii) any Immediate Family Member of Holder's
        assignee. As used herein the term "Immediate Family Member" shall mean, with
        respect to a natural person, any spouse, sibling, or child of such natural
        person, and any trust, custodianship, guardianship, family limited partnership
        or similar entity created for the primary benefit of one or more of the forgoing
        individuals..

       

      11. Notices.
        All
        notices, requests, demands, consents, instructions or other communications
        required or permitted hereunder shall in writing and faxed, mailed or delivered
        to each party at the respective addresses of the parties as set forth below,
        or
        at such other address or facsimile number as shall have been furnished to
        the
        receiving party in writing. All such notices and communications will be deemed
        effectively given the earlier of (i) when received, (ii) when
        delivered personally, (iii) one business day after being delivered by
        facsimile or by email (with evidence of delivery or confirmation), (iv) one
        business day after being deposited with a reliable overnight courier service,
        or
        (v) four days after being deposited in the U.S. mail, first class with
        postage prepaid.

       

      
        
          
          

        

        
          A-6

          
            

          

        

        
          
          

        

      

      

      
        	
                If
                  to the Maker:

              	
                ISI
                  Controls, Ltd.

              
	 	
                12903
                  Delivery Drive

              
	 	
                San
                  Antonio, TX 78247

              
	 	
                Attention:
                  Sam Youngblood

              
	 	
                Facsimile:
                  (210) 495-5613

              
	 	
                email:
                  syoungblood@isidet.com

              
	 	 
	
                with
                  a copy to:

              	
                K&L
                  Gates

              
	 	
                111
                  Congress Avenue, Suite 900

              
	 	
                Austin,
                  Texas 78701

              
	 	
                Attention:
                  D. Hull Youngblood, Jr.

              
	 	
                Facsimile:
                  (512) 482-6859

              
	 	
                email:
                  hull.youngblood@klgates.com

              
	 	 
	
                If
                  to Holder:

              	
                c/o
                  Corcoran Glass & Paint, Inc.

              
	 	
                N100
                  Craftsmen Drive

              
	 	
                Greenville,
                  WI 54942

              
	 	
                Attn:
                  Jeffrey E. Corcoran

              
	 	
                Facsimile:
                  (920) 757-9902

              
	 	 
	
                with
                  a copy to:

              	
                Metzler,
                  Timm, Treleven & Hermes, S.C.

              
	 	
                222
                  Cherry Street

              
	 	
                Green
                  Bay, WI 54301-4223

              
	 	
                Attn:
                  David J. Timm

              
	 	
                Facsimile:
                  (920)435-8866

              

      

       

      12. Usury.
        In the
        event any interest is paid on this Note which is deemed to be in excess of
        the
        then legal maximum rate, then that portion of the interest payment representing
        an amount in excess of the then legal maximum rate shall be deemed a payment
        of
        principal and applied against the principal of this Note.

       

      13. Waivers.
        The
        Maker hereby waives notice of default, presentment or demand for payment,
        protest or notice of nonpayment or dishonor and all other notices or demands
        relative to this instrument.

       

      14. Governing
        Law.
        This
        Note shall be governed by and construed in accordance with the internal laws
        of
        the State of Wisconsin. Any proceeding brought herewith shall be brought
        in
        state or federal Court located in Brown County, Wisconsin, and all parties
        waive
        any objections to venue in Brown County, Wisconsin.

       

      15. Subordination
        Legends.

       

      The
        obligations evidenced hereby are subordinate in the manner and to the extent
        set
        forth in that certain Subordination Agreement (the “Subordination Agreement”)
        created as of January 31, 2008, among, without limitation, Jeffrey Corcoran
        and
        Janell Corcoran (“Subordinated Lender”), ISI Controls, Ltd., a Texas limited
        partnership and LaSalle Bank National Association, a national banking
        association (“Senior Lender”) to the obligations (including interest) owed by
        ISI Security Group, Inc., a Delaware corporation, to the holders of all of
        the
        notes issued pursuant to that certain Amended and Restated Loan and Security
        Agreement dated as of January 23, 2008, between ISI Security Group, Inc.
        and
        Senior Lender, as such Agreement may be supplemented, modified, restated
        or
        amended from time to time; and each holder hereof, by its acceptance hereof,
        shall be bound by the provisions of the Subordination
        Agreement.

       

      
        
          
          

        

        
          A-7

          
            

          

        

        
          
          

        

      

       

      The
        obligations evidenced hereby are subordinate to the obligations (including
        interest) owed by Maker and affiliates of Maker to the holders of all of
        the
        notes issued pursuant to that certain Note and Warrant Purchase Agreement
        by and
        among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
        partnership, Maker and affiliates of Maker party thereto dated as of October
        22,
        2004, as such Agreement may be supplemented, modified, restated or amended
        from
        time to time.

       

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          A-8

          
            

          

        

        
          
          

        

      

       

      The
        Maker
        has caused this Note to be issued as of the date first written
        above.

      

      
        	
                MAKER:

              
	
                ISI
                  Controls, Ltd.

              
	
                By:
                  Metroplex Control Systems, Inc.

              
	
                Its:
                  Sole General Partner

              
	 
	
                By:

              	
                 

              
	
                Name:
                  Sam Youngblood

              
	
                Title:
                  CEO

              

      

      

      
        	
                AGREED
                  AND ACCEPTED BY:

              
	 
	
                HOLDER:

              
	 

	
                Jeffrey
                  E. Corcoran

              
	
                 

              
	
                Janell
                  D. Corcoran

              

      

      

      [Signature
        Page to Subordinated Promissory Note]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
        A 

       

      Payment
        Schedule

       

      1.
        Interest only payments made for each three-month period beginning on May
        1,
        2008, and August 1, 2008 as follows:

       

      
        	
                Due Date

              	 	
                Amount

              	
                 

              	
                Ending Prin Bal

              	 
	
                May
                  1, 2008

              	 	
                $

              	
                59,995.75

              	 	
                $

              	
                3,515,000

              	 
	
                August
                  1, 2008

              	 	
                $

              	
                62,018.08

              	 	
                $

              	
                3,515,000

              	 

      

       

      2.
        A
        single principal payment of One Hundred Thousand Dollars ($100,000.00) shall
        be
        due and payable on December 15, 2008; and

       

      3.
        Level
        principal and interest payments in the cumulative amount of $128,058.00 due
        monthly beginning on the 1st
        day of
        August 2008 and continuing monthly thereafter on the first day of each month
        for
        5 consecutive months, through December 1, 2008; then level principal and
        interest payments in the cumulative amount of $123,748 due monthly beginning
        on
        the 1st
        day of
        January 2009 and continuing monthly thereafter on the first day of each month
        through December 1, 2008, then for 25 consecutive months. The payment schedule
        for 30 consecutive months shall be as follows: 

      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

         

      

      
        	
                Due
                  Date

              	 	
                Beginning
                  Balance

              	 	
                Interest

              	 	
                Payment

              	 	
                End
                  Balance

              	 
	
                 8-1-2008
                   

              	 	
                $

              	
                3,515,000

              	 	
                $

              	
                20,504

              	 	
                $

              	
                128,058

              	 	
                $

              	
                3,407,446

              	 
	
                 9-1-2008
                   

              	 	 	
                3,407,446
                  

              	 	 	
                19,877
                  

              	 	 	
                128,058
                  

              	 	 	
                3,299,265
                  

              	 
	
                 10-1-2008 

              	 	 	
                3,299,265
                  

              	 	 	
                19,246
                  

              	 	 	
                128,058
                  

              	 	 	
                3,190,452
                  

              	 
	
                 11-1-2008 

              	 	 	
                3,190,452
                  

              	 	 	
                18,611
                  

              	 	 	
                128,058
                  

              	 	 	
                3,081,005
                  

              	 
	
                 12-1-2008 

              	 	 	
                3,081,005
                  

              	 	 	
                17,973
                  

              	 	 	
                128,058
                  

              	 	 	
                2,970,919
                  

              	 
	
                 12-15-2008* 

              	 	 	
                2,970,919
                  

              	 	 	
                0
                  

              	 	 	
                100,000
                  

              	 	 	
                2,870,919
                  

              	 
	
                 1-1-2009
                   

              	 	 	
                2,870,919
                  

              	 	 	
                16,747
                  

              	 	 	
                123,748
                  

              	 	
                $

              	
                2,763,918

              	 
	
                 2-1-2009
                   

              	 	 	
                2,763,918
                  

              	 	 	
                16,123
                  

              	 	 	
                123,748
                  

              	 	 	
                2,656,293
                  

              	 
	
                 3-1-2009
                   

              	 	 	
                2,656,293
                  

              	 	 	
                15,495
                  

              	 	 	
                123,748
                  

              	 	 	
                2,548,041
                  

              	 
	
                 4-1-2009
                   

              	 	 	
                2,548,041
                  

              	 	 	
                14,864
                  

              	 	 	
                123,748
                  

              	 	 	
                2,439,157
                  

              	 
	
                 5-1-2009
                   

              	 	 	
                2,439,157
                  

              	 	 	
                14,228
                  

              	 	 	
                123,748
                  

              	 	 	
                2,329,637
                  

              	 
	
                 6-1-2009
                   

              	 	 	
                2,329,637
                  

              	 	 	
                13,590
                  

              	 	 	
                123,748
                  

              	 	 	
                2,219,479
                  

              	 
	
                 7-1-2009
                   

              	 	 	
                2,219,479
                  

              	 	 	
                12,947
                  

              	 	 	
                123,748
                  

              	 	 	
                2,108,678
                  

              	 
	
                 8-1-2009
                   

              	 	 	
                2,108,678
                  

              	 	 	
                12,301
                  

              	 	 	
                123,748
                  

              	 	 	
                1,997,231
                  

              	 
	
                 9-1-2009
                   

              	 	 	
                1,997,231
                  

              	 	 	
                11,651
                  

              	 	 	
                123,748
                  

              	 	 	
                1,885,134
                  

              	 
	
                 10-1-2009 

              	 	 	
                1,885,134
                  

              	 	 	
                10,997
                  

              	 	 	
                123,748
                  

              	 	 	
                1,772,383
                  

              	 
	
                 11-1-2009 

              	 	 	
                1,772,383
                  

              	 	 	
                10,339
                  

              	 	 	
                123,748
                  

              	 	 	
                1,658,974
                  

              	 
	
                 12-1-2009 

              	 	 	
                1,658,974
                  

              	 	 	
                9,677
                  

              	 	 	
                123,748
                  

              	 	 	
                1,544,903
                  

              	 
	
                 1-1-2010
                   

              	 	 	
                1,544,903
                  

              	 	 	
                9,012
                  

              	 	 	
                123,748
                  

              	 	 	
                1,430,168
                  

              	 
	
                 2-1-2010
                   

              	 	 	
                1,430,168
                  

              	 	 	
                8,343
                  

              	 	 	
                123,748
                  

              	 	 	
                1,314,763
                  

              	 
	
                 3-1-2010
                   

              	 	 	
                1,314,763
                  

              	 	 	
                7,669
                  

              	 	 	
                123,748
                  

              	 	 	
                1,198,684
                  

              	 
	
                 4-1-2010
                   

              	 	 	
                1,198,684
                  

              	 	 	
                6,992
                  

              	 	 	
                123,748
                  

              	 	 	
                1,081,929
                  

              	 
	
                 5-1-2010
                   

              	 	 	
                1,081,929
                  

              	 	 	
                6,311
                  

              	 	 	
                123,748
                  

              	 	 	
                964,492
                  

              	 
	
                 6-1-2010
                   

              	 	 	
                964,492
                  

              	 	 	
                5,626
                  

              	 	 	
                123,748
                  

              	 	 	
                846,371
                  

              	 
	
                 7-1-2010
                   

              	 	 	
                846,371
                  

              	 	 	
                4,937
                  

              	 	 	
                123,748
                  

              	 	 	
                727,560
                  

              	 
	
                 8-1-2010
                   

              	 	 	
                727,560
                  

              	 	 	
                4,244
                  

              	 	 	
                123,748
                  

              	 	 	
                608,056
                  

              	 
	
                 9-1-2010
                   

              	 	 	
                608,056
                  

              	 	 	
                3,547
                  

              	 	 	
                123,748
                  

              	 	 	
                487,856
                  

              	 
	
                 10-1-2010 

              	 	 	
                487,856
                  

              	 	 	
                2,846
                  

              	 	 	
                123,748
                  

              	 	 	
                366,954
                  

              	 
	
                 11-1-2010 

              	 	 	
                366,954
                  

              	 	 	
                2,141
                  

              	 	 	
                123,748
                  

              	 	 	
                245,347
                  

              	 
	
                 12-1-2010 

              	 	 	
                245,347
                  

              	 	 	
                1,431
                  

              	 	 	
                123,748
                  

              	 	 	
                123,030
                  

              	 
	
                 1-1-2011
                   

              	 	 	
                123,030
                  

              	 	 	
                718
                  

              	 	 	
                123,748
                  

              	 	 	
                0
                  

              	 

      

      

      1.
        *
        Special
        one-time payment of $100,000 toward principal

      

      The
        final
        payment has been adjusted to account for the remaining
        indebtedness.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    

      EXHIBIT
        B

      

      (Intentionally
        Omitted)

       

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

      Form
        of
        Non-Competition Agreement

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

    

     

    NONCOMPETITION
      AND NONDISCLOSURE AGREEMENT

    

    This
      Noncompetition and Nondisclosure Agreement (this “Agreement”)
      is
      entered into to be effective on January 31, 2008 (the “Effective
      Date”),
      by
      and between ISI
      Controls, LTD.,
      a Texas
      limited partnership (the “Company”),
      and
Jeffrey
      E. Corcoran and Janell D. Corcoran,
      individual residents in the State of Wisconsin (collectively the “Restricted
      Parties”).
      This
      is the Noncompetition Agreement required by Section 5.7 of that certain Unit
      Purchase Agreement, of even date herewith (the “Purchase
      Agreement”),
      entered into between the Company and Restricted Parties.

     

    RECITALS

    

    WHEREAS,
      pursuant
      to the Purchase Agreement, the Company will purchase all the issued and
      outstanding units of ownership in Com-Tec Security, LLC (“Com-Tec”);
      and

     

    WHEREAS,
      it
      is a
      condition precedent to Closing under the Purchase Agreement that Restricted
      Parties execute and deliver this Agreement to the Company; and

     

    WHEREAS,
      Jeffery
      E. Corcoran has been responsible for management oversight of the Business as
      conducted by Com-Tec across the United States, and is a principal owner of
      Com-Tec; and

     

    WHEREAS,
      Janell
      D. Corcoran is a principal owner of Com-Tec, and is the spouse of Jeffery E.
      Corcoran;

     

    WHEREAS,
      Restricted Parties desire to enter into this Agreement and acknowledge that,
      as
      owners and Affiliates of Com-Tec, Restricted Parties will directly and
      materially benefit from the Purchase Agreement and the consideration paid by
      the
      Company to Restricted Parties thereunder.

     

    NOW,
      THEREFORE,
      (i) in
      order to comply with the terms and conditions of the Purchase Agreement, (ii)
      at
      the special instance and request of the Company and (iii) in consideration
      of
      the mutual promises, representations, warranties and covenants set forth in
      this
      Agreement, and the other good and valuable consideration exchanged between
      the
      parties, the receipt and sufficiency of which is hereby acknowledged, the
      Company and Restricted Parties intending to be legally bound agree as
      follows:

     

    AGREEMENTS

    

    1. DEFINITIONS.
      Capitalized terms used but not defined in this Agreement shall have the meanings
      given them in the Purchase Agreement.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    2. NON-DISCLOSURE
      OF CONFIDENTIAL INFORMATION.
      

    

    (a) Restricted
      Parties acknowledge that as Affiliates of Com-Tec for many years they have
      been
      entrusted with, have knowledge of, and have had access to information concerning
      the Business of Com-Tec that is Confidential Information (as hereinafter
      defined), and which Com-Tec and the Company desire to be kept secret. As used
      in
      this Agreement, the term “Confidential
      Information”
means
      all information concerning Com-Tec and its business, assets and properties,
      including without limitation, the names of customers and clients and any other
      information and data included in the Business Information of Com-Tec. But,
      Confidential Information does not include any information that is or becomes
      generally known to and available for use by the public other than as a result
      of
      the fault of Restricted Parties or any other Person bound by a duty of
      confidentiality to the Company.

     

    (b) Restricted
      Parties acknowledge that the Confidential Information is the sole and exclusive
      property of Com-Tec, and that the Confidential Information is a valuable,
      special and unique asset of Com-Tec. Restricted Parties further acknowledge
      that
      the Confidential Information has been revealed to them in trust, based solely
      upon the confidential relationship existing between them and Com-Tec, and that
      keeping such information secret, following the Closing, is important to Com-Tec
      and the Company. Restricted Parties agree not to make use of the Confidential
      Information for their personal benefit (except as specifically permitted by
      the
      Purchase Agreement) or in any way inconsistent with their obligations to the
      Company and agree that Com-Tec and the Company will suffer irreparable injury
      if
      such information is disclosed. 

     

    3. RESTRICTIVE
      COVENANTS.

    

    (a)
      Certain
      Definitions.
      As used
      in this Agreement, the following terms mean:

    

    “Restricted
      Activity”
means
      owning, managing, operating, working for, consulting with, advising,
      controlling, financing, guaranteeing the performance of, or otherwise engaging
      or participating in any manner whatsoever in business or other activities that
      in any manner whatsoever are in direct competition with the business
      of:

     

    design,
      manufacture and installation of electronic security and communication systems;
      

     

    including,
      but not limited to, by conducting or attempting to engage in business or other
      activities with or soliciting or diverting or attempting to solicit or divert
      away from Com-Tec or the Company the business of any of the clients or customers
      that Com-Tec had engaged in any of this business or other activities with prior
      to the Closing Date or which Com-Tec engages in any of this business or other
      activities with during the Restricted Period.

     

    “Restricted
      Capacity”
means
      as an employer, independent contractor, consultant, agent, principal, owner,
      partner, shareholder, member, manager, or in any other individual or
      representative capacity.

     

    “Restricted
      Period”
means
      the period beginning on the Effective Date and ending on the second anniversary
      of the Effective Date.

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    “Restricted
      Territory”
means
      the United States.

     

    (b)
      Statement
      of Enforceability.
      Restricted Parties acknowledges that this Section
      3
      is
      entered into in conjunction with the sale of all the ownership interest in
      Com-Tec, and is fully enforceable against them. Restricted Parties further
      acknowledge that entering into this Agreement is a condition precedent and
      material inducement to the Company entering into this Agreement, entering into
      the Purchase Agreement and consummating the transactions contemplated by the
      Purchase Agreement.

    

    (c)
      Noncompetition
      Covenant.
      

    

    (i)
      Restricted
      Parties agree that, during the Restricted Period, they will not, for themselves
      or any other Person or in any Restricted Capacity, directly or indirectly,
      engage or otherwise participate in any Restricted Activity anywhere in the
      Restricted Territory, except on behalf of the Company in facilitating the
      consummation of the transaction contemplated under the Purchase Agreement as
      a
      representative of Com-Tec. Restricted Parties acknowledge that while the
      business of the Company is based in Greenville, Wisconsin , its products and
      services are marketed throughout the United States, and the Company has existing
      clients throughout the Restricted Territory.

    

    (ii)
      For
      purposes of this Section
      3(c),
      a
      Person shall be deemed to be engaged or participating in business or other
      activities “in” the Restricted Territory, in addition to other activities that
      would constitute being engaged or participating in business or other activities,
      if such Person uses any telecommunication equipment or device (including without
      limitation any telephone, modem, the Internet, any intranet or extranet, a
      cellular telephone device, or any pager or satellite communication device)
      located in the Restricted Territory to communicate with any other Person,
      whether such other Person is located inside the Restricted Territory or outside
      the Restricted Territory or any such equipment is located outside the Restricted
      Territory to communicate with any Person located inside the Restricted
      Territory.

    

    (d)
      Nonsolicitation
      Covenant.
      Restricted Parties agree that during the Restricted Period (except for
      employment advertisements which are placed in newspapers or other periodicals
      of
      general circulation or otherwise widely disseminated such as on the Internet),
      they will not, for themselves or any other Person, directly or indirectly,
      (w)
      induce or attempt to induce any employee of Com-Tec at the time of the Closing
      or who is hired by Com-Tec, to leave the employ of the Company to engage or
      participate in any Restricted Activity, (x) in any way interfere with the
      relationship between the Com-Tec and any employee of Com-Tec, (y) employ, or
      otherwise engage as an employee, independent contractor or otherwise, any
      employee of Com-Tec, or (z) induce or attempt to induce any client, customer,
      supplier, vendor, licensee or business relation of Com-Tec or the Company to
      cease doing business with Com-Tec or the Company, or in any way interfere with
      the relationship between any client, customer, supplier, vendor, licensee,
      or
      business relation of Com-Tec or the Company.

    

    (e)
      Mutual
      Nondisparagement Covenant.
      Neither
      Restricted Parties nor the Company will, or encourage any of their respective
      members, managers, officers, employees or agents to, at any time during or
      after
      the Restricted Period, disparage the other Parties or any of its partners,
      officers, employees, agents, Subsidiaries, or Affiliates.

     

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

     

    (f)
      Remedies.

    

    (i)
      Injunctive
      Remedy.
      Restricted
      Parties acknowledge that the foregoing restrictions in Section
      2
      and
Section
      3
      hereof
      (the “Restrictions”),
      including those relating to geographic area, duration and scope of activity,
      in
      view of the nature of the business in which Com-Tec has been, is and will be
      engaged, are reasonable and necessary in order to protect the goodwill and
      other
      legitimate business interests of Com-Tec, and that any violation thereof would
      result in immediate and irreparable injury to Com-Tec and the Company.
      Restricted Parties, therefore, further acknowledge that, in the event they
      violate, or threaten to violate, any of the Restrictions, Com-Tec or the Company
      shall be entitled to obtain from any court of competent jurisdiction, without
      the posting of any bond or other security, preliminary and permanent injunctive
      relief as well as damages and an equitable accounting of all earnings, profits
      and other benefits arising from such violation, which rights shall be cumulative
      and in addition to any other rights or remedies in law or equity to which it
      may
      be entitled. If Restricted Parties violate any of the Restrictions, the
      applicable restricted period shall be tolled from the time of commencement
      of
      the violation until such time as the violation has been cured to the
      satisfaction of Com-Tec and the Company. If any Restrictions, or any part
      thereof, are determined in any Proceeding to be invalid or unenforceable, the
      remainder of the Restrictions shall not thereby be affected and shall be given
      full effect without regard to the invalid provisions. If the Restrictions should
      be adjudged unreasonable in any Proceeding, then the reviewing Governmental
      Body
      or other Person shall have the power to reform the Restrictions to the extent
      reasonably necessary to make the Restrictions valid and enforceable and, in
      the
      modified form, such provisions shall then be enforceable and shall be
      enforced.

    

    4. MISCELLANEOUS. 

    

    (a)
      Notices.
      Any
      notices required or permitted by this Agreement shall be in writing and shall
      be
      sufficiently given if personally delivered, mailed by certified or registered
      mail, return receipt requested or sent by Federal Express (or other nationally
      recognized guaranteed and receipted next day delivery service) to the following
      addresses (or such other address as specified by written notice furnished in
      accordance with this Subsection):

    

    
      	
              If
                to the Company:

            	
              ISI
                Controls, Ltd.

            
	 	
              12903
                Delivery Drive

            
	 	
              San
                Antonio, TX 78247

            
	 	
              Facsimile:
                (210) 495-5613

            
	 	
              Attention:
                Sam Youngblood

            
	 	 
	 	
              with
                a copy to:

            
	 	 
	 	
              K&L
                Gates

            
	 	
              111
                Congress Avenue, Suite 900

            
	 	
              Austin,
                Texas 78701

            
	 	
              Facsimile:
                (512) 482-6859

            
	 	
              Attention:
                D. Hull Youngblood, Jr.

            

    

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Restricted Parties:

            	
              c/o
                Corcoran Glass & Paint, Inc.

            
	 	
              N100
                Craftsmen Drive

            
	 	
              Greenville,
                WI 54942

            
	 	
              Facsimile:
                (920) 757-9902

            
	 	
              Attn:
                Jeffrey E. Corcoran

            
	 	 
	 	
              with
                a copy to:

            
	 	 
	 	
              Metzler,
                Timm, Treleven & Hermes, S.C.

            
	 	
              222
                Cherry Street

            
	 	
              Green
                Bay, WI 54301-4223

            
	 	
              Facsimile:
                (920)435-8866

            
	 	
              Attn:
                David J. Timm

            

    

    

    Any
      such
      notice shall be deemed to have been given: (i) if delivered by messenger, on
      the
      day of delivery, if a Business Day and if not, on the first Business Day
      thereafter; (ii) if sent by courier or Federal Express (or other guaranteed
      and
      receipted delivery service), on the next Business Day; or (iii) if sent by
      mail,
      on the third Business Day after mailing.

    

    (b) Assignability;
      Binding Effect; Third Parties.
       

    

    (i) The
      rights and obligations of any Parties under this Agreement may not be assigned
      or delegated by any Parties without the prior written consent of the other
      Parties, except that the Company may assign and delegate any of its rights
      and
      obligations to any Subsidiary or Affiliate or any successor in a merger, sale
      of
      all or substantially all of its assets or other similar transaction. Subject
      to
      the preceding sentence, this Agreement shall be binding upon and inure to the
      benefit of the parties and their respective successors and permitted assigns.
      

    

    (ii) Except
      as
      otherwise set forth in this Agreement, nothing in this Agreement, whether
      express or implied, is intended to confer any rights or remedies arising from
      this Agreement on any person other than the parties and their respective
      successors or assigns, nor is anything in this Agreement intended to relieve
      or
      discharge the obligation or liability of any third Parties to a Parties, nor
      shall any provision of this Agreement give any third Parties a right of
      subrogation or action against any Parties.

     

    (c) Waiver.
      There
      can
      be no waiver of any term, provision or condition of this Agreement which is
      not
      in writing signed by the Parties against whom the waiver is sought to be
      enforced. Waiver by any Parties of the default or breach of any provision of
      this Agreement by another shall not operate or be construed as a waiver of
      any
      subsequent default or breach.

    

    (d) Severability. If
      any
      provision of this Agreement is held invalid or unenforceable by a court of
      final
      jurisdiction, it is the parties' intent that all other provisions of this
      Agreement shall remain fully valid, enforceable and binding on the
      parties.

     

    
      
        
        

      

      
        C-6

        
          

        

      

      
        
        

      

    

     

    (e) Further
      Assurances.
      The
      parties agree to take such further actions, including the execution and delivery
      of any documents, as may be required, necessary or desirable for the performance
      of this Agreement.

    

    (f) Entire
      Agreement; Headings; Incorporation by Reference.
      This
      Agreement, together with the Purchase Agreement, Exhibits, Schedules, documents,
      and instruments referred to herein, constitutes the entire agreement between
      the
      parties relating to the subject matter hereof, and supersedes all previous
      agreements, written or oral. Except as provided otherwise in this Agreement,
      this Agreement shall not be amended or modified except by an instrument in
      writing signed by all parties. Headings are for convenience of reference only
      and shall not affect the interpretation or construction of this Agreement.
      All
      Exhibits, Schedules, documents, and instruments referred to in this Agreement
      are incorporated by reference for all purposes.

    

    (g) Governing
      Law; Venue; Attorney's Fees.
      

    

    (i) Any
      dispute between the parties relating to this Agreement shall be construed under
      and in accordance with the laws of the State of Texas applicable to contracts
      between residents of Texas that are to be wholly performed within such state,
      without regard to conflicts of law principles.

    

    (ii) The
      parties agree that the United States District Court for the Western District
      of
      Texas, San Antonio Division, and the state courts within Bexar County, Texas
      shall have exclusive venue and jurisdiction of any litigation between the
      parties.

    

    (iii) The
      prevailing Parties in any litigation shall be entitled to recover from the
      other
      Parties reasonable attorney and expert witness fees, all other expenses of
      litigation, and court costs incurred in the same, in addition to any other
      relief that may be awarded.

    

    (h) Multiple
      Counterparts.
      This
      Agreement may be executed in multiple counterparts, each of which shall
      constitute an original and all of which shall constitute one document; and
      furthermore, a facsimile signature shall be deemed an original.

    
 

    [SIGNATURES
      ON FOLLOWING PAGE]

    

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement and caused same to be duly delivered on
      their behalf on the day and year first written above.

    

    
      	
              Company

            
	 
	
              ISI
                Controls, Ltd

            
	 
	
              By:
                Metroplex Controls Systems, Inc.

            
	
              Its: 
                Sole General Partner

            
	 	 
	 	 
	
              By:

            	 

	 	
              Sam
                Youngblood, CEO

            
	 	 
	 	 
	
              Restricted
                Parties:

            
	 	 
	 	 
	 

	
              Jeffery
                E. Corcoran

            
	 	 
	 	 
	  
	
              Janell
                D. Corcoran

            

    

    

    
      
        
        

      

      
        C-8

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
        D-1

      

      Form
        of
        Company Certificate

       

      
        
          
          

        

        
          D-1-1

          
            

          

        

        
          
          

        

      

    

     

    COM-TEC
      SECURITY, LLC

     

    COMPANY
      CERTIFICATE

     

    The
      undersigned, Jeffrey E. Corcoran, Seller Representative of Com-Tec Security,
      LLC, a Wisconsin limited liability company (the "Company"), pursuant to Section
      5.8(b) of the Unit Purchase Agreement (the “Agreement”) dated as of January 7,
      2008, by, between and among Seller and ISI Controls, Ltd., a Texas limited
      partnership, HEREBY CERTIFIES AS FOLLOWS:

     

    (i) the
      representations and warranties of the Company contained in the Agreement are
      true and correct in all material respects at and as of the Closing Date of
      the
      Agreement with the same effect as though those representations and warranties
      had been made again at and as of the Closing Date, except to the extent that
      certain of such representations and warranties are made as of or through a
      specified date (which representations and warranties must continue on the
      Closing Date to be true and correct in all material respect as of or through
      the
      specified date), and

     

    (ii) the
      Company has performed and complied, in all material respects, with all
      obligations and covenants required by the Agreement to be performed or complied
      with by them on or prior to the Closing Date of the Agreement. 

     

    The
      capitalized terms not otherwise defined herein shall have the same meanings
      as
      in the Agreement.

     

    IN
      WITNESS WHEREOF,
      the
      undersigned has executed this Certificate as of this 31st
      day of
      January, 2008.

    

    
      	 	
              COM-TEC
                SECURITY, LLC

            
	 	 
	 	
              By:

            	 
	 	 	
              Jeffrey
                E. Corcoran

            
	 	 	
              Seller
                Representative

            

    

     

    
      
        
        

      

      
        D-1-2

        
          

        

      

      
        
        

      

    

     

    
      EXHIBIT
        D-2

      

      Form
        of
        Seller’s Certificate

    

     

    
      
        
        

      

      
        
          D-2-1

        

        
          

        

      

      
        
        

      

    

     

    COM-TEC
      SECURITY, LLC

     

    SELLER’S
      CERTIFICATE

     

    The
      undersigned owners and members of Com-Tec Security, LLC, a Wisconsin limited
      liability company (the “Company”), Jeffrey E. Corcoran and Janell D. Corcoran
      (collectively, “Seller”), pursuant to Section 5.8(b) and 5.8(c) of the Unit
      Purchase Agreement (the “Agreement”) dated as of January 7, 2008, by, between
      and among Seller and ISI Controls, Ltd., a Texas limited partnership, HEREBY
      CERTIFY AS FOLLOWS:

     

    (i) the
      representations and warranties of Seller and the Company contained in the
      Agreement are true and correct in all material respects at and as of the Closing
      Date of the Agreement with the same effect as though those representations
      and
      warranties had been made again at and as of the Closing Date, except to the
      extent that certain of such representations and warranties are made as of or
      through a specified date (which representations and warranties must continue
      on
      the Closing Date to be true and correct in all material respect as of or through
      the specified date);

     

    (ii) Seller
      and the Company has performed and complied, in all material respects, with
      all
      obligations and covenants required by the Agreement to be performed or complied
      with by them on or prior to the Closing Date of the Agreement; and

     

    (iii) Seller
      has received the Cash Purchase Price from Purchaser.

     

    The
      capitalized terms not otherwise defined herein shall have the same meanings
      as
      in the Agreement.

     

    IN
      WITNESS WHEREOF,
      the
      undersigned have executed this Certificate as of this 31st
      day of
      January, 2008.

     

    
      	
              SELLER:

            
	
               

            
	
              Jeffrey
                E. Corcoran

            
	
               

            
	
              Janell
                D. Corcoran

            

    

    

    
      
        
        

      

      
        D-2-2

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      E

    

    Form
      of
      General Business Security Agreement (ISI Controls, Ltd.)

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    GENERAL
      BUSINESS SECURITY AGREEMENT

    

    
      	
              1.

            	
              SECURITY
                INTEREST

            

    

    

    In
      consideration of the financial accommodation granted by JEFFREY
      E. CORCORAN and
      JANELL
      D. CORCORAN (together
      or separately, “Lender”) to ISI
      CONTROLS, LTD, a
      Texas
      limited partnership (the
      “Debtor”), the undersigned, grants to Lender, a security interest in all
      equipment, fixtures, inventory (including all goods held for sale, lease or
      demonstration or to be furnished under contracts of service, goods leased to
      others, trade-ins and repossessions, raw materials, work in process and
      materials or supplies used or consumed in the Debtor’s business), documents
      relating to inventory, general intangibles, accounts, contract rights, chattel
      paper and instruments, now owned or hereafter acquired by Debtor, and all
      additions and accessions to, all spare and repair parts, special tools,
      equipment and replacements for, all returned or repossessed goods the sale
      of
      which gave rise to, and all proceeds and products of the foregoing
      ("Collateral"), wherever located to secure all debts, obligations and
      liabilities of the Debtor to Lender arising out of credit previously granted
      and
      credit contemporaneously granted by Lender to the Debtor
      ("Obligations").

    

    
      	
              2.

            	
              DEBTOR'S
                WARRANTIES

            

    

    

    Debtor
      warrants that while any of the Obligations are unpaid:

    

    A. Ownership.
      Debtor
      owns the Collateral, subject only to security interests identified in Section
      8,
      and otherwise free of all encumbrances and security interests (except Lender's
      security interest). Chattel paper constituting Collateral evidences a perfected
      security interest in the goods covered by it, free from all other encumbrances
      and security interests (except as described herein), and no financing statement
      (other than those indicated in Section 8) is on file covering the Collateral
      or
      any of it. Debtor, acting alone, may grant a security interest in the
      Collateral.

    

    B. Sale
      of goods or services rendered.
      Each
      account and chattel paper constituting Collateral as of this date arose from
      the
      performance of services by Debtor or from a bona fide sale or lease of goods,
      which have been delivered or shipped to the account debtor and for which Debtor
      has genuine invoices, shipping documents or receipts.

    

    C. Enforceability.
      Each
      account, contract right and chattel paper constituting Collateral as of this
      date is genuine and enforceable against the account debtor according to its
      terms. It and the transaction out of which it arose comply with all applicable
      laws and regulations. The amount represented by Debtor to Lender as owing by
      each account debtor is the amount actually owing and is not subject to setoff,
      credit, allowance or adjustment, except discount for prompt payment, nor has
      any
      account debtor returned the goods or disputed his liability.

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

    

    D. Due
      date.
      There
      has been no default as of this date according to the terms of any Collateral
      and
      no step has been taken to foreclose the security interest it evidences or
      otherwise enforce its payment.

    

    E. Financial
      condition of account debtor.
      As of
      this date Debtor has no notice or knowledge of anything which might impair
      the
      credit standing of any account debtor.

     

    F. Valid
      incorporation.
      Debtor
      is duly organized, validly existing and in good standing under the laws of
      the
      state of incorporation.

    

    G. Other
      agreements.
      Debtor
      is not in default under any agreement for the payment of money.

    

    H. Authority
      to contract.
      The
      execution and delivery of this Agreement and any instruments evidencing
      Obligations will not violate or constitute a breach of Debtor's articles of
      incorporation, by-laws, partnership agreement or any agreement or restriction
      to
      which Debtor is a party or is subject.

    

    I. Accuracy
      of information.
      All
      information, certificates or statements given to Lender pursuant to this
      Agreement shall be true and complete when given.

    

    J. Addresses.
      The
      address of Debtor's place of business is shown opposite the Debtor’s signature.
      The address where the Collateral will be kept is at 3030 East Goodland Drive,
      Appleton, Wisconsin. Such locations shall not be changed without prior or
      written consent of Lender, but the parties intend that the Collateral, wherever
      located, is covered by this Agreement.

    

    K. Change
      of name or address.
      Debtor
      shall immediately advise Lender in writing of any change in name or
      address.

    

    L. Fixtures.
      If any
      of the Collateral is affixed to real estate, the legal description of the real
      estate set forth in each UCC Financing Statement signed by Debtor is true and
      correct.

    

    
      	
              3.

            	
              SALE
                AND COLLECTIONS

            

    

    

    A. Sale
      of inventory.
      So long
      as no default exists under any of the Obligations or this Agreement, Debtor
      may
      (a) sell inventory in the ordinary course of Debtor's business for cash or
      on
      terms customary in the trade, at prices not less than any minimum sale price
      shown on instruments evidencing Obligations and describing inventory, or (b)
      lease inventory on terms customary in the trade.

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

    

    B. Verification
      and notification.
      Lender
      may verify Collateral in any manner, and Debtor shall assist Lender in so doing.
      Upon default Lender may at any time and Debtor shall, upon request of Lender,
      notify the account debtors to make payment directly to Lender and Lender may
      enforce collection of, settle, compromise, extend or renew the indebtedness
      of
      such account debtors. Until account debtors are so notified, Debtor as agent
      of
      Lender, shall make collections on the Collateral. Lender may at any time notify
      the bailee of any Collateral of Lender's security interest.

    

    
      	
              4.

            	
              DEBTOR'S
                COVENANTS

            

    

    

    A. Maintenance
      of Collateral.
      Debtor
      shall: maintain the Collateral in good condition and repair and not permit
      its
      value to be impaired; keep it free from all liens, encumbrances and security
      interests (other than Lender's security interest and those indicated in Section
      8); defend it against all claims and legal proceedings by persons other than
      Lender; pay and discharge when due all taxes, license fees, levies and other
      charges upon it; not sell, lease or otherwise dispose of it or permit it to
      become a fixture or an accession to other goods, except for sales or leases
      of
      inventory as provided in this Agreement, not permit it to be used in violation
      of any applicable law, regulation or policy of insurance; and, as to Collateral
      consisting of instruments and chattel paper, preserve rights in it against
      prior
      parties. Loss of or damage to the Collateral shall not release a Debtor from
      any
      of the Obligations.

    

    B. Insurance.
      Debtor
      shall keep the Collateral and Lender's interest in it insured under policies
      with such provisions, for such amounts and by such insurers as shall be
      satisfactory to Lender from time to time, and shall furnish evidence of such
      insurance satisfactory to Lender. Subject to Lender’s priority as secured
      creditor of Debtor, Debtor assigns (and directs any insurer to pay) to Lender
      the proceeds of all such insurance and any premium refund, and authorizes Lender
      to indorse in the name of Debtor any instruments for such proceeds or refunds
      and, at the option of Lender, to apply such proceeds and refunds to any unpaid
      balance of the Obligations; whether or not due, and/or to restoration of the
      Collateral, returning any excess to Debtor. Lender is authorized, in the name
      of
      Debtor or otherwise, to make, adjust, and/or settle claims under any insurance
      on the Collateral, or cancel the same after the occurrence of an event of
      default.

    

    C. Maintenance
      of security interest.
      Debtor
      shall pay all expenses and upon request, take any action reasonably deemed
      advisable by Lender to preserve the Collateral or to establish, determine
      priority of, perfect, continue perfected, terminate and/or enforce Lender's
      interest in it or rights under this Agreement.

    

    D. Taxes
      and other charges.
      Pay and
      discharge all lawful taxes, assessments and government charges upon Debtor
      or
      against its properties prior to the date on which penalties attach, unless
      and
      to the extent only that such taxes, assessments and charges are contested in
      good faith and by appropriate proceedings by Debtor.

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

    

    E. Chattel
      paper.
      Lender
      may require that chattel paper constituting Collateral shall be on forms
      approved by Lender. Debtor shall promptly mark all chattel paper constituting
      Collateral, and all copies, to indicate conspicuously the Lender's interest
      and,
      upon request, deliver them to Lender.

    

    F. United
      State contracts.
      If any
      accounts or contract rights constituting Collateral arose out of contracts
      with
      the United States or any of its departments, agencies or instrumentalities,
      Debtor will notify Lender and execute writings required by Lender in order
      that
      all money due or to become due under such contracts shall be assigned to Lender
      and proper notice of the assignment given under the Federal Assignment of Claims
      Act.

    

    G. Modifications.
      Without
      the prior written consent of Lender, Debtor shall not alter, modify, extend,
      renew or cancel any accounts or chattel paper constituting Collateral or any
      Collateral constituting part of the Debtor's borrowing base.

    

    
      	
              5.

            	
              RIGHTS
                OF LENDER

            

    

    

    A. Authority
      to perform for Debtor.
      Upon the
      occurrence of an event of default or if Debtor fails to perform any of Debtor's
      duties set forth in this Agreement or in any evidence of or document relating
      to
      the Obligations, Lender is authorized, in the Debtor's name or otherwise, to
      take any such action including without limitation signing Debtor's name or
      paying any amount so required, and the cost shall be one of the Obligations
      secured by this Agreement and shall be payable by the Debtor upon demand with
      interest from the date of payment by Lender at the highest rate stated in any
      evidence of any Obligation but not in excess of the maximum rate permitted
      by
      law.

    

    B. Power
      of attorney.
      Debtor
      irrevocably appoints Lender as Debtor's attorney, with power after an event
      of
      default to receive, open and dispose of all mail addressed to Debtor; to notify
      the Post Office authorities to change the address for delivery of all mail
      addressed to Debtor to such address as Lender may designate; and to endorse
      the
      name of Debtor upon any instruments which may come into Lender's possession.
      Debtor agrees that Obligations may be created by drafts drawn on Lender by
      shippers of inventory named in section 4. Debtor authorizes Lender to honor
      any
      such draft accompanied by invoices aggregating the amount of the draft and
      describing inventory to be shipped to Debtor and to pay any such invoices not
      accompanied by drafts. Debtor appoints any employee of Lender as Debtor's
      attorney, with full power to sign Debtor's name on any instrument evidencing
      an
      Obligation, or any renewals or extensions, or the amount of such drafts honored
      by Lender and such instruments may be payable at fixed times or on demand,
      shall
      bear interest at the rate from time to time or the amount of such drafts honored
      by Lender and such instruments may be payable at fixed times or on demand,
      shall
      bear interest at the rate from time to time fixed by Lender and Debtor agrees,
      upon request of Lender, to execute any such instruments. This power of attorney
      to execute instruments may be revoked by Debtor only by written notice to Lender
      and no such revocation shall affect any instruments executed prior to the
      receipt of Lender of such notice. All acts of such attorney are ratified and
      approved and he is not liable for any act or omission or for any error of
      judgment or mistake of fact or law.

    
      
        
        

      

      
        E-5

        
          

        

      

      
        
        

      

    

    

    C. Non-liability
      of Lender.
      Lender
      has no duty to determine the validity of any invoice, the authority of any
      shipper named in section 4 to ship goods to Debtor or compliance with any order
      of Debtor. Lender has no duty to protect, insure, collect or realize upon the
      Collateral or preserve rights in it against prior parties. Debtors release
      Lender from any liability for any act or omission relating to the Obligations,
      the Collateral or this Agreement, except Lender's wilful
      misconduct.

    

    
      	
              6.

            	
              DEFAULT

            

    

    

    Upon
      the
      occurrence of one or more of the following events of default:

    

    Nonperformance.
      The
      Debtor fails to pay when due (and after notice) any of the Obligations or to
      perform, or rectify breach of, any warranty or other undertaking by the Debtor
      in this Agreement or in any evidence of or document relating to the Obligations;
      or

    

    Inability
      to Perform.
      The
      Debtor or a surety or guarantor for any of the Obligations ceases to exist
      or
      becomes insolvent or the subject of bankruptcy or insolvency
      proceedings;

    

    all
      of
      the Obligations shall, at the option of Lender and without notice or demand,
      become immediately payable; and Lender shall have all rights and remedies for
      default provided by the Wisconsin Uniform Commercial Code, as well as any other
      applicable law and any evidence of or document relating to any such Obligation.
      With respect to Lender’s rights and remedies:

    

    A. Repossession.
      Lender
      may take possession of Collateral without notice or hearing, which Debtor
      waives;

    

    B. Assembling
      collateral.
      Lender
      may require Debtor to assemble the Collateral and to make it available to Lender
      at any convenient place designated by Lender;

    

    C. Notice
      of disposition.
      Written
      notice, when required by law, sent to any address of Debtor in this Agreement
      at
      least 10 calendar days (counting the day of sending) before the date of a
      proposed disposition of the Collateral is reasonable notice;

    

    D. Expenses
      and application of proceeds.
      Debtors
      shall reimburse Lender for any expense incurred by Lender in protecting or
      enforcing its rights under this Agreement before and after judgment, including,
      without limitation, reasonable attorneys' fees and legal expenses of taking
      possession, holding, preparing for disposition and disposing of Collateral.
      After deduction of such expenses, Lender may apply the proceeds of disposition
      to the Obligations in such order and amounts as it elects; and 

    
      
        
        

      

      
        E-6

        
          

        

      

      
        
        

      

    

    

    E. Waiver.
      Lender
      may permit a Debtor to remedy any default without waiving the default so
      remedied, and Lender may waive any default without waiving any other subsequent
      or prior default by a Debtor.

    

    
      	
              7.

            	
              INTERPRETATION

            

    

    

    The
      validity, construction and enforcement of this Agreement are governed by the
      internal laws of Wisconsin. All terms not otherwise defined have the meanings
      assigned to them by the Wisconsin Uniform Commercial Code. Invalidity of any
      provision of this Agreement shall not affect the validity of any other
      provision. This Agreement is intended by the Debtor and Lender as a final
      expression of this Agreement and as a complete and exclusive statement of its
      terms, there being no conditions to the enforceability of this Agreement. This
      Agreement may not be supplemented or modified except in writing.

    

    8. EXCEPTIONS

    

    The
      obligations evidenced hereby are subordinate in the manner and to the extent
      set
      forth in that certain Subordination Agreement (the “Subordination Agreement”)
      created as of January 31, 2008, among, without limitation, Jeffrey Corcoran
      and
      Janell Corcoran (“Subordinated Lender”), ISI Controls, Ltd., a Texas limited
      partnership and LaSalle Bank National Association, a national banking
      association (“Senior Lender”) to the obligations (including interest) owed by
      ISI Security Group, Inc., a Delaware corporation, to the holders of all of
      the
      notes issued pursuant to that certain Amended and Restated Loan and Security
      Agreement dated as of January 23, 2008, between ISI Security Group, Inc. and
      Senior Lender, as such Agreement may be supplemented, modified, restated or
      amended from time to time; and each holder hereof, by its acceptance hereof,
      shall be bound by the provisions of the Subordination
      Agreement.

    

    The
      obligations evidenced hereby are subordinate to the obligations (including
      interest) owed by Debtor and affiliates of Debtor to the holders of all of
      the
      notes issued pursuant to that certain Note and Warrant Purchase Agreement by
      and
      among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
      partnership, Debtor and affiliates of Debtor party thereto dated as of October
      22, 2004, as such Agreement may be supplemented, modified, restated or amended
      from time to time.

    
      
        
        

      

      
        E-7

        
          

        

      

      
        
        

      

    

    
      	 	
              DEBTOR:

            
	 	
              ISI
                Controls, Ltd.

            
	 	
              By:
                Metroplex Control Systems, Inc.

            
	 	
              Its:
                Sole General Partner

            
	 	 
	 	 
	 	
              By:

            	 
	 	 
	 	
              Sam
                Youngblood, CEO

            
	 	 
	 	
              Dated:
                January 31, 2008

            
	 	 
	 	
              Address:

            
	 	
              12903
                Delivery Drive

            
	 	
              San
                Antonio, Texas 78247

            

    

    

      [Signature
        Page to ISI Controls, Ltd. General Business Security
        Agreement]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      EXHIBIT
        F

      

      Form
        of
        General Business Security Agreement (ISI Security Group, Inc.)

       

      
        
          
          

        

        
          F-1

          
            

          

        

        
          
          

        

      

      GENERAL
        BUSINESS SECURITY AGREEMENT

       

      
        
          1.
            SECURITY
            INTEREST

        

      

      

      In
        consideration of the financial accommodation granted by JEFFREY
        E. CORCORAN and
        JANELL
        D. CORCORAN (together
        or separately, “Lender”) to ISI
        CONTROLS, LTD.
        (the
“Borrower”), the undersigned, ISI
        SECURITY GROUP, INC. (“ISI
        Security”) grants to Lender, a security interest in all equipment, fixtures,
        inventory (including all goods held for sale, lease or demonstration or to
        be
        furnished under contracts of service, goods leased to others, trade-ins and
        repossessions, raw materials, work in process and materials or supplies used
        or
        consumed in the ISI Security’s business), documents relating to inventory,
        general intangibles, accounts, contract rights, chattel paper and instruments,
        now owned or hereafter acquired by ISI Security, and all additions and
        accessions to, all spare and repair parts, special tools, equipment and
        replacements for, all returned or repossessed goods the sale of which gave
        rise
        to, and all proceeds and products of the foregoing ("Collateral"), wherever
        located to secure all debts, obligations and liabilities of the
        Borrower to
        Lender
        arising out of credit previously granted and credit contemporaneously granted
        by
        Lender to the Borrower ("Obligations").

      

      
        
          2.
            ISI
            SECURITY 'S WARRANTIES

        

      

      

      ISI
        Security warrants that while any of the Obligations are unpaid:

      

      A. Ownership.
        ISI
        Security owns the Collateral, subject only to security interests identified
        in
        Section 8, and otherwise free of all encumbrances and security interests
        (except
        Lender's security interest). Chattel paper constituting Collateral evidences
        a
        perfected security interest in the goods covered by it, free from all other
        encumbrances and security interests (except as described herein), and no
        financing statement (other than those indicated in Section 8) is on file
        covering the Collateral or any of it. ISI Security, acting alone, may grant
        a
        security interest in the Collateral.

      

      B. Sale
        of goods or services rendered.
        Each
        account and chattel paper constituting Collateral as of this date arose from
        the
        performance of services by ISI Security or from a bona fide sale or lease
        of
        goods, which have been delivered or shipped to the account debtor and for
        which
        ISI Security has genuine invoices, shipping documents or receipts.

      

      C. Enforceability.
        Each
        account, contract right and chattel paper constituting Collateral as of this
        date is genuine and enforceable against the account debtor according to its
        terms. It and the transaction out of which it arose comply with all applicable
        laws and regulations. The amount represented by ISI Security to Lender as
        owing
        by each account debtor is the amount actually owing and is not subject to
        setoff, credit, allowance or adjustment, except discount for prompt payment,
        nor
        has any account debtor returned the goods or disputed his
        liability.

       

      
        
          
          

        

        
          F-2

          
            

          

        

        
          
          

        

      

       

      D. Due
        date.
        There
        has been no default as of this date according to the terms of any Collateral
        and
        no step has been taken to foreclose the security interest it evidences or
        otherwise enforce its payment.

      

      E. Financial
        condition of account debtor.
        As of
        this date, ISI Security has no notice or knowledge of anything which might
        impair the credit standing of any account debtor.

       

      F. Valid
        incorporation.
        ISI
        Security is duly organized, validly existing and in good standing under the
        laws
        of the state of incorporation.

      

      G. Other
        agreements.
        ISI
        Security is not in default under any agreement for the payment of
        money.

      

      H. Authority
        to contract.
        The
        execution and delivery of this Agreement and any instruments evidencing
        Obligations will not violate or constitute a breach of ISI Security's articles
        of incorporation, by-laws, partnership agreement or any agreement or restriction
        to which ISI Security is a party or is subject.

      

      I. Accuracy
        of information.
        All
        information, certificates or statements given to Lender pursuant to this
        Agreement shall be true and complete when given.

      

      J. Addresses.
        The
        address of ISI Security's place of business is shown opposite the Corporation’s
        signature. The address where the Collateral will be kept is 3030 East Goodland
        Drive, Appleton, Wisconsin. Such locations shall not be changed without prior
        or
        written consent of Lender, but the parties intend that the Collateral, wherever
        located, is covered by this Agreement.

      

      K. Change
        of name or address.
        ISI
        Security shall immediately advise Lender in writing of any change in name
        or
        address.

      

      L. Fixtures.
        If any
        of the Collateral is affixed to real estate, the legal description of the
        real
        estate set forth in each UCC Financing Statement signed by ISI Security is
        true
        and correct.

      

      
        
          3.
            SALE
            AND COLLECTIONS

        

      

      

      A. Sale
        of inventory.
        So long
        as no default exists under any of the Obligations or this Agreement, ISI
        Security may (a) sell inventory in the ordinary course of ISI Security's
        business for cash or on terms customary in the trade, at prices not less
        than
        any minimum sale price shown on instruments evidencing Obligations and
        describing inventory, or (b) lease inventory on terms customary in the
        trade.

       

      
        
          
          

        

        
          F-3

          
            

          

        

        
          
          

        

      

       

      B.
        Verification
        and notification.
        Lender
        may verify Collateral in any manner, and ISI Security shall assist Lender
        in so
        doing. Upon default Lender may at any time and ISI Security shall, upon request
        of Lender, notify the account debtors to make payment directly to Lender
        and
        Lender may enforce collection of, settle, compromise, extend or renew the
        indebtedness of such account debtors. Until account debtors are so notified,
        ISI
        Security as agent of Lender, shall make collections on the Collateral. Lender
        may at any time notify the bailee of any Collateral of Lender's security
        interest.

      

      
        
          4.
            ISI
            SECURITY'S COVENANTS

        

      

      

      A. Maintenance
        of Collateral.
        ISI
        Security shall: maintain the Collateral in good condition and repair and
        not
        permit its value to be impaired; keep it free from all liens, encumbrances
        and
        security interests (other than Lender's security interest and those indicated
        in
        Section 8); defend it against all claims and legal proceedings by persons
        other
        than Lender; pay and discharge when due all taxes, license fees, levies and
        other charges upon it; not sell, lease or otherwise dispose of it or permit
        it
        to become a fixture or an accession to other goods, except for sales or leases
        of inventory as provided in this Agreement, not permit it to be used in
        violation of any applicable law, regulation or policy of insurance; and,
        as to
        Collateral consisting of instruments and chattel paper, preserve rights in
        it
        against prior parties. Loss of or damage to the Collateral shall not release
        the
        Borrower from
        any
        of the Obligations.

      

      B. Insurance.
        ISI
        Security shall keep the Collateral and Lender's interest in it insured under
        policies with such provisions, for such amounts and by such insurers as shall
        be
        satisfactory to Lender from time to time, and shall furnish evidence of such
        insurance satisfactory to Lender. Subject to Lender’s priority as secured
        creditor of ISI Security, ISI Security assigns (and directs any insurer to
        pay)
        to Lender the proceeds of all such insurance and any premium refund, and
        authorizes Lender to indorse in the name of ISI Security any instruments
        for
        such proceeds or refunds and, at the option of Lender, to apply such proceeds
        and refunds to any unpaid balance of the Obligations; whether or not due,
        and/or
        to restoration of the Collateral, returning any excess to ISI Security. Lender
        is authorized, in the name of ISI Security or otherwise, to make, adjust,
        and/or
        settle claims under any insurance on the Collateral, or cancel the same after
        the occurrence of an event of default.

      

      C. Maintenance
        of security interest.
        ISI
        Security shall pay all expenses and upon request, take any action reasonably
        deemed advisable by Lender to preserve the Collateral or to establish, determine
        priority of, perfect, continue perfected, terminate and/or enforce Lender's
        interest in it or rights under this Agreement.

      

      D. Taxes
        and other charges.
        Pay and
        discharge all lawful taxes, assessments and government charges upon ISI Security
        or against its properties prior to the date on which penalties attach, unless
        and to the extent only that such taxes, assessments and charges are contested
        in
        good faith and by appropriate proceedings by ISI Security.

       

      
        
          
          

        

        
          F-4

          
            

          

        

        
          
          

        

      

       

      E. Chattel
        paper.
        Lender
        may require that chattel paper constituting Collateral shall be on forms
        approved by Lender. ISI Security shall promptly mark all chattel paper
        constituting Collateral, and all copies, to indicate conspicuously the Lender's
        interest and, upon request, deliver them to Lender.

      

      F. United
        State contracts.
        If any
        accounts or contract rights constituting Collateral arose out of contracts
        with
        the United States or any of its departments, agencies or instrumentalities,
        ISI
        Security will notify Lender and execute writings required by Lender in order
        that all money due or to become due under such contracts shall be assigned
        to
        Lender and proper notice of the assignment given under the Federal Assignment
        of
        Claims Act.

      

      G. Modifications.
        Without
        the prior written consent of Lender, ISI Security shall not alter, modify,
        extend, renew or cancel any accounts or chattel paper constituting Collateral
        or
        any Collateral constituting part of the ISI Security's borrowing
        base.

      

      
        
          5.
            RIGHTS
            OF LENDER

        

      

      

      A. Authority
        to perform for ISI Security.
        Upon the
        occurrence of an event of default or if ISI Security fails to perform any
        of ISI
        Security's duties set forth in this Agreement or in any evidence of or document
        relating to the Obligations, Lender is authorized, in the ISI Security's
        name or
        otherwise, to take any such action including without limitation signing ISI
        Security's name or paying any amount so required, and the cost shall be one
        of
        the Obligations secured by this Agreement and shall be payable by the ISI
        Security upon demand with interest from the date of payment by Lender at
        the
        highest rate stated in any evidence of any Obligation but not in excess of
        the
        maximum rate permitted by law.

      

      B. Power
        of attorney.
        ISI
        Security irrevocably appoints Lender as ISI Security's attorney, with power
        after an event of default to receive, open and dispose of all mail addressed
        to
        ISI Security; to notify the Post Office authorities to change the address
        for
        delivery of all mail addressed to ISI Security to such address as Lender
        may
        designate; and to endorse the name of ISI Security upon any instruments which
        may come into Lender's possession. ISI Security agrees that Obligations may
        be
        created by drafts drawn on Lender by shippers of inventory named in section
        4.
        ISI Security authorizes Lender to honor any such draft accompanied by invoices
        aggregating the amount of the draft and describing inventory to be shipped
        to
        ISI Security and to pay any such invoices not accompanied by drafts. ISI
        Security appoints any employee of Lender as ISI Security's attorney, with
        full
        power to sign ISI Security's name on any instrument evidencing an Obligation,
        or
        any renewals or extensions, or the amount of such drafts honored by Lender
        and
        such instruments may be payable at fixed times or on demand, shall bear interest
        at the rate from time to time or the amount of such drafts honored by Lender
        and
        such instruments may be payable at fixed times or on demand, shall bear interest
        at the rate from time to time fixed by Lender and ISI Security agrees, upon
        request of Lender, to execute any such instruments. This power of attorney
        to
        execute instruments may be revoked by ISI Security only by written notice
        to
        Lender and no such revocation shall affect any instruments executed prior
        to the
        receipt of Lender of such notice. All acts of such attorney are ratified
        and
        approved and he is not liable for any act or omission or for any error of
        judgment or mistake of fact or law.

       

      
        
          
          

        

        
          F-5

          
            

          

        

        
          
          

        

      

       

      C. Non-liability
        of Lender.
        Lender
        has no duty to protect, insure, collect or realize upon the Collateral or
        preserve rights in it against prior parties. ISI Security’s releases Lender from
        any liability for any act or omission relating to the Obligations, the
        Collateral or this Agreement, except Lender's willful misconduct.

      

      
        
          6.
            DEFAULT

        

      

      

      Upon
        the
        occurrence of one or more of the following events of default:

      

      Nonperformance.
        The
        Borrower fails
        to
        pay when due (and after notice) any of the Obligations or to perform, or
        rectify
        breach of, any warranty or other undertaking by the Borrower in any evidence
        of
        or document relating to the Obligations; or

      

      Inability
        to Perform.
        The
        Borrower or a surety or guarantor for any of the Obligations ceases to exist
        or
        becomes insolvent or the subject of bankruptcy or insolvency
        proceedings;

      

      all
        of
        the Obligations shall, at the option of Lender and without notice or demand,
        become immediately payable; and Lender shall have all rights and remedies
        for
        default provided by the Wisconsin Uniform Commercial Code, as well as any
        other
        applicable law and any evidence of or document relating to any such Obligation.
        With respect to Lender’s rights and remedies:

      

      A. Repossession.
        Lender
        may take possession of Collateral without notice or hearing, which ISI Security
        waives;

      

      B. Assembling
        collateral.
        Lender
        may require ISI Security to assemble the Collateral and to make it available
        to
        Lender at any convenient place designated by Lender;

      

      C. Notice
        of disposition.
        Written
        notice, when required by law, sent to any address of ISI Security in this
        Agreement at least 10 calendar days (counting the day of sending) before
        the
        date of a proposed disposition of the Collateral is reasonable
        notice;

      

      D. Expenses
        and application of proceeds.
        ISI
        Security shall reimburse Lender for any expense incurred by Lender in protecting
        or enforcing its rights under this Agreement before and after judgment,
        including, without limitation, reasonable attorneys' fees and legal expenses
        of
        taking possession, holding, preparing for disposition and disposing of
        Collateral. After deduction of such expenses, Lender may apply the proceeds
        of
        disposition to the Obligations in such order and amounts as it elects; and
        

       

      
        
          
          

        

        
          F-6

          
            

          

        

        
          
          

        

      

       

      E. Waiver.
        Lender
        may permit ISI Security to remedy any default without waiving the default
        so
        remedied, and Lender may waive any default without waiving any other subsequent
        or prior default by ISI Security.

      

      
        
          7.
            INTERPRETATION

        

      

      

      The
        validity, construction and enforcement of this Agreement are governed by
        the
        internal laws of Wisconsin. All terms not otherwise defined have the meanings
        assigned to them by the Wisconsin Uniform Commercial Code. Invalidity of
        any
        provision of this Agreement shall not affect the validity of any other
        provision. This Agreement is intended by the ISI Security and Lender as a
        final
        expression of this Agreement and as a complete and exclusive statement of
        its
        terms, there being no conditions to the enforceability of this Agreement.
        This
        Agreement may not be supplemented or modified except in writing.

      

      8. EXCEPTIONS

      

      The
        obligations evidenced hereby are subordinate in the manner and to the extent
        set
        forth in that certain Subordination Agreement (the “Subordination Agreement”)
        created as of January 31, 2008, among, without limitation, Jeffrey Corcoran
        and
        Janell Corcoran (“Subordinated Lender”), ISI Controls, Ltd., a Texas limited
        partnership and LaSalle Bank National Association, a national banking
        association (“Senior Lender”) to the obligations (including interest) owed by
        ISI Security Group, Inc., a Delaware corporation, to the holders of all of
        the
        notes issued pursuant to that certain Amended and Restated Loan and Security
        Agreement dated as of January 23, 2008, between ISI Security Group, Inc.
        and
        Senior Lender, as such Agreement may be supplemented, modified, restated
        or
        amended from time to time; and each holder hereof, by its acceptance hereof,
        shall be bound by the provisions of the Subordination
        Agreement.

      

      The
        obligations evidenced hereby are subordinate to the obligations (including
        interest) owed by ISI Security and affiliates of ISI Security to the holders
        of
        all of the notes issued pursuant to that certain Note and Warrant Purchase
        Agreement by and among William Blair Mezzanine Capital Fund III, L.P., a
        Delaware limited partnership, ISI Security and affiliates of ISI Security
        party
        thereto dated as of October 22, 2004, as such Agreement may be supplemented,
        modified, restated or amended from time to time.

       

      
        
          
          

        

        
          F-7

          
            

          

        

        
          
          

        

      

       

      
        	
                ISI
                  SECURITY GROUP, INC.

              
	 	 
	
                By:

              	 

	 	 
	Sam
                Youngblood, CEO
	 	 
	
                Dated:
                  January 31, 2008

              
	 
	
                Address:

              
	
                12903
                  Delivery Drive

              
	
                San
                  Antonio, TX 78247

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        EXHIBIT
          G

        

        Form
          of
          General Business Security Agreement (Argyle Security, Inc.)

         

        
          
            
            

          

          
            G-1

            
              

            

          

          
            
            

          

           

        

      

      GENERAL
        BUSINESS SECURITY AGREEMENT

      

      
        	
                1.

              	
                SECURITY
                  INTEREST

              

      

      

      In
        consideration of the financial accommodation granted by JEFFREY
        E. CORCORAN and
        JANELL
        D. CORCORAN (together
        or separately, “Lender”) to ISI
        Controls, Ltd.
        (the
“Borrower”), the undersigned, ARGYLE
        SECURITY, INC. (“Argyle”)
        grants to Lender, a security interest in all equipment, fixtures, inventory
        (including all goods held for sale, lease or demonstration or to be furnished
        under contracts of service, goods leased to others, trade-ins and repossessions,
        raw materials, work in process and materials or supplies used or consumed
        in the
        Argyle’s business), documents relating to inventory, general intangibles,
        accounts, contract rights, chattel paper and instruments, now owned or hereafter
        acquired by Argyle, and all additions and accessions to, all spare and repair
        parts, special tools, equipment and replacements for, all returned or
        repossessed goods the sale of which gave rise to, and all proceeds and products
        of the foregoing ("Collateral"), wherever located to secure all debts,
        obligations and liabilities of the Borrower to Lender arising out of credit
        previously granted and credit contemporaneously granted by Lender to the
        Borrower ("Obligations"). The capital stock of ISI Security Group, Inc.,
        a
        Delaware corporation, owned now or hereafter by Argyle, is specifically excluded
        from the definition of “Collateral” and no lien, security interest or other
        encumbrance of any nature is imposed upon such capital stock by the Borrower.
        

      

      
        	
                2.

              	
                ARGYLE
                  'S WARRANTIES

              

      

      

      Argyle
        warrants that while any of the Obligations are unpaid:

      

      A. Ownership.
        Argyle
        owns the Collateral, subject only to security interests identified in Section
        8,
        and otherwise free of all encumbrances and security interests (except Lender's
        security interest). Chattel paper constituting Collateral evidences a perfected
        security interest in the goods covered by it, free from all other encumbrances
        and security interests (except as described herein), and no financing statement
        (other than those indicated in Section 8) is on file covering the Collateral
        or
        any of it. Argyle, acting alone, may grant a security interest in the
        Collateral.

      

      B. Sale
        of goods or services rendered.
        Each
        account and chattel paper constituting Collateral as of this date arose from
        the
        performance of services by Argyle or from a bona fide sale or lease of goods,
        which have been delivered or shipped to the account debtor and for which
        Argyle
        has genuine invoices, shipping documents or receipts.

      

      C. Enforceability.
        Each
        account, contract right
        and
        chattel paper constituting Collateral as of this date is genuine and enforceable
        against the account debtor according to its terms. It and the transaction
        out of
        which it arose comply with all applicable laws and regulations. The amount
        represented by Argyle to Lender as owing by each account debtor is the amount
        actually owing and is not subject to setoff, credit, allowance or adjustment,
        except discount for prompt payment, nor has any account debtor returned the
        goods or disputed his liability.

       

      
        
          
          

        

        
          G-2

          
            

          

        

        
          
          

        

      

       

      D. Due
        date.
        There
        has been no default as of this date according to the terms of any Collateral
        and
        no step has been taken to foreclose the security interest it evidences or
        otherwise enforce its payment.

      

      E. Financial
        condition of account debtor.
        As of
        this date Argyle has no notice or knowledge of anything which might impair
        the
        credit standing of any account debtor.

       

      F. Valid
        incorporation.
        Argyle
        is duly organized, validly existing and in good standing under the laws of
        the
        state of incorporation.

      

      G. Other
        agreements.
        Argyle
        is not in default under any agreement for the payment of money.

      

      H. Authority
        to contract.
        The
        execution and delivery of this Agreement and any instruments evidencing
        Obligations will not violate or constitute a breach of Argyle's articles
        of
        incorporation, by-laws, partnership agreement or any agreement or restriction
        to
        which Argyle is a party or is subject.

      

      I. Accuracy
        of information.
        All
        information, certificates or statements given to Lender pursuant to this
        Agreement shall be true and complete when given.

      

      J. Addresses.
        The
        address of Argyle's place of business is shown opposite the Corporation’s
        signature. The address where the Collateral will be kept is 3030 East Goodland
        Drive, Appleton, Wisconsin. Such locations shall not be changed without prior
        or
        written consent of Lender, but the parties intend that the Collateral, wherever
        located, is covered by this Agreement.

      

      K. Change
        of name or address.
        Argyle
        shall immediately advise Lender in writing of any change in name or
        address.

      

      L. Fixtures.
        If any
        of the Collateral is affixed to real estate, the legal description of the
        real
        estate set forth in each UCC Financing Statement signed by Argyle is true
        and
        correct.

      

      
        	
                3.

              	
                SALE
                  AND COLLECTIONS

              

      

      

      A. Sale
        of inventory.
        So long
        as no default exists under any of the Obligations or this Agreement, Argyle
        may
        (a) sell inventory in the ordinary course of Argyle's business for cash or
        on
        terms customary in the trade, at prices not less than any minimum sale price
        shown on instruments evidencing Obligations and describing inventory, or
        (b)
        lease inventory on terms customary in the trade.

      
        
          
          

        

        
          G-3

          
            

          

        

        
          
          

        

      

      B. Verification
        and notification.
        Lender
        may verify Collateral in any manner, and Argyle shall assist Lender in so
        doing.
        Upon default Lender may at any time and Argyle shall, upon request of Lender,
        notify the account debtors to make payment directly to Lender and Lender
        may
        enforce collection of, settle, compromise, extend or renew the indebtedness
        of
        such account debtors. Until account debtors are so notified, Argyle as agent
        of
        Lender, shall make collections on the Collateral. Lender may at any time
        notify
        the bailee of any Collateral of Lender's security interest.

      

      
        	
                4.

              	
                ARGYLE'S
                  COVENANTS

              

      

      

      A. Maintenance
        of Collateral.
        Argyle
        shall: maintain the Collateral in good condition and repair and not permit
        its
        value to be impaired; keep it free from all liens, encumbrances and security
        interests (other than Lender's security interest and those indicated in Section
        8); defend it against all claims and legal proceedings by persons other than
        Lender; pay and discharge when due all taxes, license fees, levies and other
        charges upon it; not sell, lease or otherwise dispose of it or permit it
        to
        become a fixture or an accession to other goods, except for sales or leases
        of
        inventory as provided in this Agreement, not permit it to be used in violation
        of any applicable law, regulation or policy of insurance; and, as to Collateral
        consisting of instruments and chattel paper, preserve rights in it against
        prior
        parties. Loss of or damage to the Collateral shall not release the
        Borrower from
        any
        of the Obligations.

      

      B. Insurance.
        Argyle
        shall keep the Collateral and Lender's interest in it insured under policies
        with such provisions, for such amounts and by such insurers as shall be
        satisfactory to Lender from time to time, and shall furnish evidence of such
        insurance satisfactory to Lender. Subject to Lender’s priority as secured
        creditor of Argyle, Argyle assigns (and directs any insurer to pay) to Lender
        the proceeds of all such insurance and any premium refund, and authorizes
        Lender
        to indorse in the name of Argyle any instruments for such proceeds or refunds
        and, at the option of Lender, to apply such proceeds and refunds to any unpaid
        balance of the Obligations; whether or not due, and/or to restoration of
        the
        Collateral, returning any excess to Argyle. Lender is authorized, in the
        name of
        Argyle or otherwise, to make, adjust, and/or settle claims under any insurance
        on the Collateral, or cancel the same after the occurrence of an event of
        default.

      

      C. Maintenance
        of security interest.
        Argyle
        shall pay all expenses and upon request, take any action reasonably deemed
        advisable by Lender to preserve the Collateral or to establish, determine
        priority of, perfect, continue perfected, terminate and/or enforce Lender's
        interest in it or rights under this Agreement.

       

      
        D. Taxes
          and other charges.
          Pay and
          discharge all lawful taxes, assessments and government charges upon Argyle
          or
          against its properties prior to the date on which penalties attach, unless
          and
          to the extent only that such taxes, assessments and charges are contested
          in
          good faith and by appropriate proceedings by Argyle.

      

       

      
        
          
          

        

        
          G-4

          
            

          

        

        
          
          

        

      

       

      E. Chattel
        paper.
        Lender
        may require that chattel paper constituting Collateral shall be on forms
        approved by Lender. Argyle shall promptly mark all chattel paper constituting
        Collateral, and all copies, to indicate conspicuously the Lender's interest
        and,
        upon request, deliver them to Lender.

      

      F. United
        State contracts.
        If any
        accounts or contract rights constituting Collateral arose out of contracts
        with
        the United States or any of its departments, agencies or instrumentalities,
        Argyle will notify Lender and execute writings required by Lender in order
        that
        all money due or to become due under such contracts shall be assigned to
        Lender
        and proper notice of the assignment given under the Federal Assignment of
        Claims
        Act.

      

      G. Modifications.
        Without
        the prior written consent of Lender, Argyle shall not alter, modify, extend,
        renew or cancel any accounts or chattel paper constituting Collateral or
        any
        Collateral constituting part of the Argyle's borrowing base.

      

      
        	
                5.

              	
                RIGHTS
                  OF LENDER

              

      

      

      A. Authority
        to perform for Argyle.
        Upon the
        occurrence of an event of default or if Argyle fails to perform any of Argyle's
        duties set forth in this Agreement or in any evidence of or document relating
        to
        the Obligations, Lender is authorized, in the Argyle's name or otherwise,
        to
        take any such action including without limitation signing Argyle's name or
        paying any amount so required, and the cost shall be one of the Obligations
        secured by this Agreement and shall be payable by the Argyle upon demand
        with
        interest from the date of payment by Lender at the highest rate stated in
        any
        evidence of any Obligation but not in excess of the maximum rate permitted
        by
        law.

      

      B. Power
        of attorney.
        Argyle
        irrevocably appoints Lender as Argyle's attorney, with power after an event
        of
        default to receive, open and dispose of all mail addressed to Argyle; to
        notify
        the Post Office authorities to change the address for delivery of all mail
        addressed to Argyle to such address as Lender may designate; and to endorse
        the
        name of Argyle upon any instruments which may come into Lender's possession.
        Argyle agrees that Obligations may be created by drafts drawn on Lender by
        shippers of inventory named in section 4. Argyle authorizes Lender to honor
        any
        such draft accompanied by invoices aggregating the amount of the draft and
        describing inventory to be shipped to Argyle and to pay any such invoices
        not
        accompanied by drafts. Argyle appoints any employee of Lender as Argyle's
        attorney, with full power to sign Argyle's name on any instrument evidencing
        an
        Obligation, or any renewals or extensions, or the amount of such drafts honored
        by Lender and such instruments may be payable at fixed times or on demand,
        shall
        bear interest at the rate from time to time or the amount of such drafts
        honored
        by Lender and such instruments may be payable at fixed times or on demand,
        shall
        bear interest at the rate from time to time fixed by Lender and Argyle agrees,
        upon request of Lender, to execute any such instruments. This power of attorney
        to execute instruments may be revoked by Argyle only by written notice to
        Lender
        and no such revocation shall affect any instruments executed prior to the
        receipt of Lender of such notice. All acts of such attorney are ratified
        and
        approved and he is not liable for any act or omission or for any error of
        judgment or mistake of fact or law.

       

      
        
          
          

        

        
          G-5

          
            

          

        

        
          
          

        

      

       

      C. Non-liability
        of Lender.
        Lender
        has no duty to protect, insure, collect or realize upon the Collateral or
        preserve rights in it against prior parties. Argyles releases Lender from
        any
        liability for any act or omission relating to the Obligations, the Collateral
        or
        this Agreement, except Lender's willful misconduct.

      

      
        	
                6.

              	
                DEFAULT

              

      

      

      Upon
        the
        occurrence of one or more of the following events of default:

      

      Nonperformance.
        The
        Borrower fails
        to
        pay when due (and after notice) any of the Obligations or to perform, or
        rectify
        breach of, any warranty or other undertaking by the Borrower in any evidence
        of
        or document relating to the Obligations; or

      

      Inability
        to Perform.
        The
        Borrower or a surety or guarantor for any of the Obligations ceases to exist
        or
        becomes insolvent or the subject of bankruptcy or insolvency
        proceedings;

      

      all
        of
        the Obligations shall, at the option of Lender and without notice or demand,
        become immediately payable; and Lender shall have all rights and remedies
        for
        default provided by the Wisconsin Uniform Commercial Code, as well as any
        other
        applicable law and any evidence of or document relating to any such Obligation.
        With respect to Lender’s rights and remedies:

      

      A. Repossession.
        Lender
        may take possession of Collateral without notice or hearing, which Argyle
        waives;

      

      B. Assembling
        collateral.
        Lender
        may require Argyle to assemble the Collateral and to make it available to
        Lender
        at any convenient place designated by Lender;

      

      C. Notice
        of disposition.
        Written
        notice, when required by law, sent to any address of Argyle in this Agreement
        at
        least 10 calendar days (counting the day of sending) before the date of a
        proposed disposition of the Collateral is reasonable notice;

      

      D. Expenses
        and application of proceeds.
        Argyles
        shall reimburse Lender for any expense incurred by Lender in protecting or
        enforcing its rights under this Agreement before and after judgment, including,
        without limitation, reasonable attorneys' fees and legal expenses of taking
        possession, holding, preparing for disposition and disposing of Collateral.
        After deduction of such expenses, Lender may apply the proceeds of disposition
        to the Obligations in such order and amounts as it elects; and 

      

      E. Waiver.
        Lender
        may permit Argyle to remedy any default without waiving the default so remedied,
        and Lender may waive any default without waiving any other subsequent or
        prior
        default by Argyle.

      
        
          
          

        

        
          G-6

          
            

          

        

        
          
          

        

      

      

      
        	
                7.

              	
                INTERPRETATION

              

      

      

      The
        validity, construction and enforcement of this Agreement are governed by
        the
        internal laws of Wisconsin. All terms not otherwise defined have the meanings
        assigned to them by the Wisconsin Uniform Commercial Code. Invalidity of
        any
        provision of this Agreement shall not affect the validity of any other
        provision. This Agreement is intended by the Argyle and Lender as a final
        expression of this Agreement and as a complete and exclusive statement of
        its
        terms, there being no conditions to the enforceability of this Agreement.
        This
        Agreement may not be supplemented or modified except in writing.

      

      
        	8.	
                EXCEPTIONS

              

      

      

      The
        obligations evidenced hereby are subordinate to the obligations (including
        interest) owed by Argyle and affiliates of Argyle to the holders of all of
        the
        notes issued pursuant to that certain Note and Warrant Purchase Agreement
        by and
        among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
        partnership, Argyle and affiliates of Argyle party thereto dated as of October
        22, 2004, as such Agreement may be supplemented, modified, restated or amended
        from time to time.

       

      ARGYLE
        SECURITY, INC.

      

      By:____________________________

      Name:
        Don
        Neville 

      Its:
        Chief Financial Officer

      Dated:
        January 31, 2008 

      

      Address:

      200
        Concord Plaza

      San
        Antonio, Texas 78216

      

        [Signature
          Page to Argyle Security, Inc. General Business Security Agreement]

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        H

      

      Form
        of
        ISI Guaranty

       

      
        
          
          

        

        
          H-1

          
            

          

        

        
          
          

        

      

      GUARANTY

       

      THIS
        GUARANTY OF PROMISSORY NOTE (this “Guaranty”),
        made
        as of the 31st day of January, 2008 (the “Effective
        Date”),
        by
        ISI Security
        Group,
        Inc.,
        a
        Delaware corporation (“Guarantor”),
        to
        and for the benefit of JEFFREY CORCORAN and JANELL CORCORAN (collectively
        referred to herein as “Payee”).

      

      RECITALS

      

      A. On
        even
        date herewith, ISI Controls, Ltd., a Texas limited partnership (“Borrower”),
        has
        issued to Payee a promissory note in the original principal amount of $3,515,000
        (the “Note”);
        

       

      B. Guarantor
        has agreed to guarantee the payment of the Note; and

       

      C. Guarantor
        is an affiliate of Borrower and has a financial interest in inducing Payee
        to
        accept the Note from Borrower, and Guarantor having such interest has agreed
        to
        execute and deliver this Guaranty;

       

      1. Definitions.
        Terms
        defined in the Note and not otherwise defined in this Guaranty shall have
        the
        meanings given those terms in the Note when used herein and such definitions
        are
        incorporated herein as though set forth in full.

       

      2. Guaranty.
        In
        order to induce Payee to accept the Note, Guarantor hereby unconditionally
        and
        irrevocably guarantees to Payee the full and punctual payment of the Note,
        together with any and all interest and expenses (including attorney’s fees)
        allowed under any applicable federal, state or local law (collectively, the
        “Guaranteed
        Obligations”).

       

      3. Continuing
        Guaranty.
        This
        Guaranty is irrevocable and continuing in nature and relates to the Note,
        and
        Guarantor is jointly and severally liable with Borrower and all other guarantors
        for such obligation. This Guaranty is a guaranty of prompt payment and
        performance and is not merely a guaranty of collection. This Guaranty is
        in full
        force and effect on the date hereof and shall continue until the Note has
        been
        paid or satisfied in full at which time Payee shall terminate this Guaranty
        by
        marking it cancelled and returning it to Guarantor.

       

      4. Security.
        This
        Guaranty is not secured by any security agreement, deed of trust or
        mortgage.

      

      5. Waiver
        of Rights.
        Guarantor hereby waives (a) notice of acceptance hereof (which acceptance
        is
        conclusively presumed by delivery to Borrower), except to the extent expressly
        provided in the same; (b) grace, demand, presentment, and protest with respect
        to the Guaranteed Obligations or to any instrument, agreement or document
        evidencing or creating same; (c) notice of or as to grace, demand, presentment
        and protest, except to the extent expressly provided in the applicable document;
        (d) notice of or any right to consent or object to the amendment or modification
        of any of the instruments, agreements and documents executed in connection
        with
        the Guaranteed Obligations; (e) filing of suit and diligence by Payee in
        collection or enforcement of the Guaranteed Obligations; and (f) any other
        notice regarding the Guaranteed Obligations, except to the extent expressly
        provided in the same.

       

      
        
          
          

        

        
          H-2

          
            

          

        

        
          
          

        

      

       

      6. Relationship
        to Other Agreements.
        Nothing
        herein shall in any way modify or limit the effect of terms or conditions
        set
        forth in any other documents or agreements between Borrower, Payee, or
        Guarantor, but each and every term and condition hereof shall be in addition
        thereto.

       

      7. Consents.
        Guarantor consents and agrees that Payee, at any time and from time to time,
        without notice or demand, without incurring any responsibility to Guarantor,
        and
        without impairing, reducing, modifying, amending, releasing or discharging
        the
        obligations of Guarantor, may take any of the following actions or take no
        action in connection with Borrower, including without limitation: 

       

      (a)
        supplement, modify, amend, extend, renew, accelerate or otherwise change
        the
        time for payment or the terms of the Note or any part thereof;

       

      (b)
        supplement, modify, amend or waive, or enter into or give any agreement,
        approval or consent with respect to, the Note or any part thereof, or any
        additional security or guaranties, or any condition, covenant, default, remedy,
        right, representation or term thereof;

       

      (c)
        accept new or additional instruments, documents or agreements in exchange
        for or
        relative to the Note;

       

      (d)
        accept partial payments on the Note;

       

      (e)
        receive and hold additional security or guaranties for the Note or any part
        thereof;

       

      (f)
        release, reconvey, terminate, waive, abandon, fail to perfect, subordinate,
        exchange, substitute, transfer or enforce any security or guaranties, and
        apply
        any security and direct the order or manner of sale thereof as Payee in its
        sole
        and absolute discretion may determine;

       

      (g)
        release any Person from any personal liability with respect to the Note or
        any
        part thereof;

       

      (h)
        settle, release on terms satisfactory to Payee or by operation of applicable
        laws or otherwise liquidate or enforce the Note and any security or guaranty
        therefor in any manner, consent to the transfer of any security and bid and
        purchase at any sale; and/or

       

      (i)
        consent to the merger, change or any other restructuring or termination of
        the
        corporate existence of Borrower or any other Person, and correspondingly
        restructure the Note, and any such merger, change, restructuring or termination
        shall not affect the liability of Borrower or the continuing effectiveness
        hereof, or the enforceability hereof with respect to all or any part of the
        Note.

       

      
        
          
          

        

        
          H-3

          
            

          

        

        
          
          

        

      

       

      8. Representations,
        Warranties and Covenants.
        Guarantor hereby makes the following representations, warranties and covenants
        which survive the execution and delivery of this Guaranty:

       

      (a)
        Guarantor has the power and/or legal right to own Guarantor’s assets and to
        enter into and perform the provisions of this Guaranty.

       

      (b)
        The
        execution, delivery and performance of this Guaranty by Guarantor does not
        contravene (i) any existing law or any legal order applicable to, or license
        or
        permit granted to Guarantor, or (ii) any agreement or instrument to which
        Guarantor is a party or to which Guarantor or any of Guarantor’s assets is
        subject.

       

      (c)
        Guarantor (i) is not, and will not as a result of performing this Guaranty
        be
        rendered, insolvent, and (ii) does not intend to incur, or believe Guarantor
        is
        incurring, obligations beyond Guarantor’s ability to pay.

       

      (d)
        This
        Guaranty is a legal, valid and binding obligation of Guarantor, enforceable
        against Guarantor in accordance with its terms, except as the enforceability
        thereof may be limited by bankruptcy, insolvency or other similar laws of
        general application affecting the enforcement of creditors' rights or by
        general
        principles of equity limiting the availability of equitable
        remedies.

       

      (e)
        No
        governmental approval is required for the due execution, delivery and
        performance of this Guaranty and there are no conditions precedent to the
        effectiveness of this Guaranty that have not been satisfied or
        waived.

       

      (f)
        Guarantor is financially interested in Borrower and will receive material
        economic benefits as a result of the Note provided to Payee. Guarantor is
        entering into this Guaranty as a material inducement to Payee to accept the
        Note. 

       

      9. LIMITATION
        ON INTEREST.
        NOTWITHSTANDING ANY OTHER PROVISION HEREOF, IN NO EVENT SHALL THE AMOUNT
        OR RATE
        OF INTEREST PAYABLE, CONTRACTED FOR, CHARGED OR RECEIVED UNDER OR IN CONNECTION
        WITH THIS GUARANTY OR THE NOTE GUARANTIED HEREUNDER, FROM TIME TO TIME OR
        FOR
        WHATEVER REASON, EXCEED THE MAXIMUM RATE OR AMOUNT, IF ANY, SPECIFIED BY
        APPLICABLE LAW.

       

      10. Miscellaneous.
        

       

      (a)
        Costs
        and Expenses. Guarantor shall pay to Payee all reasonable costs and expenses
        (including court costs and reasonable attorneys’ fees) incurred by Payee in the
        preservation of enforcement of Payee’s rights and remedies
        hereunder.

       

      (b)
        Amendment. Neither this Guaranty nor any provision hereof may be amended,
        altered, modified, changed, waived, discharged or terminated, except by an
        instrument in writing signed by Payee.

       

      
        
          
          

        

        
          H-4

          
            

          

        

        
          
          

        

      

       

      (c)
        Governing Law. This Agreement shall be governed by and construed in accordance
        with the internal laws of the State of Wisconsin. Any proceeding brought
        to
        enforce this Agreement or any document delivered in connection herewith shall
        be
        brought in state or federal court located in Brown County, Wisconsin, and
        all
        parties waive any objections to venue in Brown County, Wisconsin.

       

      (d)
        Notices. All notices and other communications hereunder shall be given in
        the
        manner set forth in the Note to the parties at their respective addresses
        set
        forth below, as the same may be changed by written notice to the other
        party.

       

      (e)
        Assignment, Binding Effect, Benefit of Agreement. This Guaranty and the duties
        and obligations of Guarantor hereunder, together with Payee's rights and
        privileges under the Note, (A) shall be fully assignable, in whole or in
        part,
        and transferable by Payee; (B) may not be delegated or transferred by Guarantor
        without the prior written consent of Payee, which consent shall not be
        unreasonably withheld; and (C) shall inure to the benefit of, and be enforceable
        by, Payee and its successors and assigns and the duties and obligations of
        Guarantor shall bind Guarantor and Guarantor's successors and permitted
        assigns.

       

      (f)
        Severability. Whenever possible this Guaranty and each provision hereof shall
        be
        interpreted in such manner as to be effective, valid and enforceable under
        applicable law. Any provisions of this Guaranty which are prohibited or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction. In addition, any determination that the application of
        any
        provision hereof to any person or under any circumstance is illegal and
        unenforceable shall not affect the legality, validity and enforceability
        of such
        provision as it may be applied to any other person or in any other
        circumstance.

       

      11. ACKNOWLEDGEMENT.
        GUARANTOR HEREBY ACKNOWLEDGES AND AGREES THAT GUARANTOR MAKES ALL OF THE
        WAIVERS, AGREEMENTS AND CONSENTS ("WAIVERS")
        SET
        FORTH IN THIS GUARANTY KNOWINGLY, INTENTIONALLY, VOLUNTARILY, WITHOUT DURESS,
        AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF SUCH WAIVERS
        WITH
        GUARANTOR’S COUNSEL; GUARANTOR FURTHER ACKNOWLEDGES THAT SUCH WAIVERS ARE A
        MATERIAL INDUCEMENT TO PAYEE’S ACCEPTANCE OF THE NOTE. GUARANTOR ACKNOWLEDGES
        THAT GUARANTOR HAS SUFFICIENT KNOWLEDGE AND EXPERIENCE TO EVALUATE THE RISKS
        OF
        THIS GUARANTY. IF ANY OF THE WAIVERS HEREIN ARE DETERMINED TO BE UNENFORCEABLE
        UNDER APPLICABLE LAW, SUCH WAIVERS SHALL BE EFFECTIVE TO THE MAXIMUM EXTENT
        PERMITTED BY LAW.

       

      
        
          
          

        

        
          H-5

          
            

          

        

        
          
          

        

      

       

      12. SUBORDINATION The
        obligations evidenced hereby are subordinate in the manner and to the extent
        set
        forth in that certain Subordination Agreement (the “Subordination Agreement”)
        created as of January 31, 2008, among, without limitation, Jeffrey Corcoran
        and
        Janell Corcoran (“Subordinated Lender”), ISI Controls, Ltd., a Texas limited
        partnership and LaSalle Bank National Association, a national banking
        association (“Senior Lender”) to the obligations (including interest) owed by
        ISI Security Group, Inc., a Delaware corporation, to the holders of all of
        the
        notes issued pursuant to that certain Amended and Restated Loan and Security
        Agreement dated as of January 23, 2008, between ISI Security Group, Inc.
        and
        Senior Lender, as such Agreement may be supplemented, modified, restated
        or
        amended from time to time; and each holder hereof, by its acceptance hereof,
        shall be bound by the provisions of the Subordination
        Agreement.

      

      The
        obligations evidenced hereby are subordinate to the obligations (including
        interest) owed by Guarantor and affiliates of Guarantor to the holders of
        all of
        the notes issued pursuant to that certain Note and Warrant Purchase Agreement
        by
        and among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
        partnership, Guarantor and affiliates of Guarantor party thereto dated as
        of
        October 22, 2004, as such Agreement may be supplemented, modified, restated
        or
        amended from time to time.

       

      
        
          
          

        

        
          H-6

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, THE PARTIES HERETO EXECUTED AND DELIVERED THIS AGREEMENT
        AS OF
        THE EFFECTIVE DATE.

      

        
          	
                  GUARANTOR:

                	 	
                  PAYEE:

                
	 	 	 
	
                  ISI
                    Security Group, Inc.

                	 	 
	
                  A
                    Delaware corporation

                	 	
                  JEFFREY
                    E. CORCORAN

                
	 	 	 
	 	 	 
	
                  By:

                	 	 	 
	
                  Name:
                    Sam Youngblood

                	 	
                  JANELL
                    D. CORCORAN

                
	
                  Its:
                    CEO

                	 	 
	 	 	 
	
                  GUARANTOR'S
                    ADDRESS 

                	 	
                  PAYEE’S
                    ADDRESS

                
	
                  12903
                    DELIVERY DRIVE

                	 	
                  N100
                    CRAFTSMEN DRIVE

                
	
                  SAN
                    ANTONIO, TX 78247

                	 	
                  GREENVILLE,
                    WI 54942

                
	
                  ATTENTION:
                    SAM YOUNGBLOOD

                	 	
                  ATTENTION:
                    JEFF CORCORAN

                

        

      

       

      [Signature
        Page to Guaranty of ISI Security Group, Inc.]

       

      
        
          
          

        

        
          H-7

          
            

          

        

        
          
          

        

      

       

      

        EXHIBIT
          I

        

        Form
          of
          Argyle Guaranty

         

        
          
            
            

          

          
            I-1

            
              

            

          

          
            
            

          

           

        

      

      GUARANTY

      OF

      ARGYLE
        SECURITY, INC.

       

      THIS
        GUARANTY OF PROMISSORY NOTE (this “Guaranty”),
        made
        as of the 31st day of January, 2008 (the “Effective
        Date”),
        by
        Argyle Security, Inc., a Delaware corporation (“Guarantor”),
        to
        and for the benefit of Jeffery Corcoran and Janell Corcoran (collectively
        referred to herein as “Payee”).

      

      RECITALS

      

      A. On
        even
        date herewith, ISI Controls, Ltd., a Texas limited partnership (“Borrower”),
        has
        issued to Payee a promissory note in the original principal amount of $3,515,000
        (the “Note”);
        

       

      B. Guarantor
        has agreed to guarantee the payment of the Note; and

       

      C. Guarantor
        is an affiliate of Borrower and has a financial interest in inducing Payee
        to
        accept the Note from Borrower, and Guarantor having such interest has agreed
        to
        execute and deliver this Guaranty;

       

      1. Definitions.
        Terms
        defined in the Note and not otherwise defined in this Guaranty shall have
        the
        meanings given those terms in the Note when used herein and such definitions
        are
        incorporated herein as though set forth in full.

       

      2. Guaranty.
        In
        order to induce Payee to accept the Note, Guarantor hereby unconditionally
        and
        irrevocably guarantees to Payee the full and punctual payment of the Note,
        together with any and all interest and expenses (including attorney’s fees)
        allowed under any applicable federal, state or local law (collectively, the
        “Guaranteed
        Obligations”).

       

      3. Continuing
        Guaranty.
        This
        Guaranty is irrevocable and continuing in nature and relates to the Note,
        and
        Guarantor is jointly and severally liable with Borrower for such obligation.
        This Guaranty is a guaranty of prompt payment and performance and is not
        merely
        a guaranty of collection. This Guaranty is in full force and effect on the
        date
        hereof and shall continue until the Note has been paid or satisfied in full
        at
        which time Payee shall terminate this Guaranty by marking it cancelled and
        returning it to Guarantor.

       

      4. Security.
        This
        Guaranty is secured by a security agreement of even date herewith.

      

      5. Waiver
        of Rights.
        Guarantor hereby waives (a) notice of acceptance hereof (which acceptance
        is
        conclusively presumed by delivery to Borrower), except to the extent expressly
        provided in the same; (b) grace, demand, presentment, and protest with respect
        to the Guaranteed Obligations or to any instrument, agreement or document
        evidencing or creating same; (c) notice of or as to grace, demand, presentment
        and protest, except to the extent expressly provided in the applicable document;
        (d) notice of or any right to consent or object to the amendment or modification
        of any of the instruments, agreements and documents executed in connection
        with
        the Guaranteed Obligations; (e) filing of suit and diligence by Payee in
        collection or enforcement of the Guaranteed Obligations; and (f) any other
        notice regarding the Guaranteed Obligations, except to the extent expressly
        provided in the same.

       

      
        
          
          

        

        
          I-2

          
            

          

        

        
          
          

        

      

       

      6. Relationship
        to Other Agreements.
        Nothing
        herein shall in any way modify or limit the effect of terms or conditions
        set
        forth in any other documents or agreements between Borrower, Payee, or
        Guarantor, but each and every term and condition hereof shall be in addition
        thereto.

       

      7. Consents.
        Guarantor consents and agrees that Payee, at any time and from time to time,
        without notice or demand, without incurring any responsibility to Guarantor,
        and
        without impairing, reducing, modifying, amending, releasing or discharging
        the
        obligations of Guarantor, may take any of the following actions or take no
        action in connection with Borrower, including without limitation: 

       

      (a)
        supplement, modify, amend, extend, renew, accelerate or otherwise change
        the
        time for payment or the terms of the Note or any part thereof;

       

      (b)
        supplement, modify, amend or waive, or enter into or give any agreement,
        approval or consent with respect to, the Note or any part thereof, or any
        additional security or guaranties, or any condition, covenant, default, remedy,
        right, representation or term thereof;

       

      (c)
        accept new or additional instruments, documents or agreements in exchange
        for or
        relative to the Note;

       

      (d)
        accept partial payments on the Note;

       

      (e)
        receive and hold additional security or guaranties for the Note or any part
        thereof;

       

      (f)
        release, reconvey, terminate, waive, abandon, fail to perfect, subordinate,
        exchange, substitute, transfer or enforce any security or guaranties, and
        apply
        any security and direct the order or manner of sale thereof as Payee in its
        sole
        and absolute discretion may determine;

       

      (g)
        release any Person from any personal liability with respect to the Note or
        any
        part thereof;

       

      (h)
        settle, release on terms satisfactory to Payee or by operation of applicable
        laws or otherwise liquidate or enforce the Note and any security or guaranty
        therefor in any manner, consent to the transfer of any security and bid and
        purchase at any sale; and/or

       

      (i)
        consent to the merger, change or any other restructuring or termination of
        the
        corporate existence of Borrower or any other Person, and correspondingly
        restructure the Note, and any such merger, change, restructuring or termination
        shall not affect the liability of Borrower or the continuing effectiveness
        hereof, or the enforceability hereof with respect to all or any part of the
        Note.

       

      
        
          
          

        

        
          I-3

          
            

          

        

        
          
          

        

      

       

      8. Representations,
        Warranties and Covenants.
        Guarantor hereby makes the following representations, warranties and covenants
        which survive the execution and delivery of this Guaranty:

       

      (a)
        Guarantor has the power and/or legal right to own Guarantor’s assets and to
        enter into and perform the provisions of this Guaranty.

       

      (b)
        The
        execution, delivery and performance of this Guaranty by Guarantor does not
        contravene (i) any existing law or any legal order applicable to, or license
        or
        permit granted to Guarantor, or (ii) any agreement or instrument to which
        Guarantor is a party or to which Guarantor or any of Guarantor’s assets is
        subject.

       

      (c)
        Guarantor (i) is not, and will not as a result of performing this Guaranty
        be
        rendered, insolvent, and (ii) does not intend to incur, or believe Guarantor
        is
        incurring, obligations beyond Guarantor’s ability to pay.

       

      (d)
        This
        Guaranty is a legal, valid and binding obligation of Guarantor, enforceable
        against Guarantor in accordance with its terms, except as the enforceability
        thereof may be limited by bankruptcy, insolvency or other similar laws of
        general application affecting the enforcement of creditors' rights or by
        general
        principles of equity limiting the availability of equitable
        remedies.

       

      (e)
        No
        governmental approval is required for the due execution, delivery and
        performance of this Guaranty and there are no conditions precedent to the
        effectiveness of this Guaranty that have not been satisfied or
        waived.

       

      (f)
        Guarantor is financially interested in Borrower and will receive material
        economic benefits as a result of the Note provided to Payee. Guarantor is
        entering into this Guaranty as a material inducement to Payee to accept the
        Note. 

       

      9. LIMITATION
        ON INTEREST.
        NOTWITHSTANDING ANY OTHER PROVISION HEREOF, IN NO EVENT SHALL THE AMOUNT
        OR RATE
        OF INTEREST PAYABLE, CONTRACTED FOR, CHARGED OR RECEIVED UNDER OR IN CONNECTION
        WITH THIS GUARANTY OR THE NOTE GUARANTIED HEREUNDER, FROM TIME TO TIME OR
        FOR
        WHATEVER REASON, EXCEED THE MAXIMUM RATE OR AMOUNT, IF ANY, SPECIFIED BY
        APPLICABLE LAW.

       

      10. Miscellaneous.
        

       

      (a)
        Costs
        and Expenses. Guarantor shall pay to Payee all reasonable costs and expenses
        (including court costs and reasonable attorneys’ fees) incurred by Payee in the
        preservation of enforcement of Payee’s rights and remedies
        hereunder.

       

      
        
          
          

        

        
          I-4

          
            

          

        

        
          
          

        

      

       

      (b)
        Amendment. Neither this Guaranty nor any provision hereof may be amended,
        altered, modified, changed, waived, discharged or terminated, except by an
        instrument in writing signed by Payee.

       

      (c)
        Governing Law. This
        Agreement shall be governed by and construed in accordance with the internal
        laws of the State of Wisconsin. Any proceeding brought to enforce this Agreement
        or any document delivered in connection herewith shall be brought in state
        or
        federal court located in Brown County, Wisconsin, and all parties waive any
        objections to venue in Brown County, Wisconsin.

       

      (d)
        Notices. All notices and other communications hereunder shall be given in
        the
        manner set forth in the Note to the parties at their respective addresses
        set
        forth below, as the same may be changed by written notice to the other
        party.

       

      (e)
        Assignment, Binding Effect, Benefit of Agreement. This Guaranty and the duties
        and obligations of Guarantor hereunder, together with Payee's rights and
        privileges under the Note, (A) shall be fully assignable, in whole or in
        part,
        and transferable by Payee; (B) may not be delegated or transferred by Guarantor
        without the prior written consent of Payee, which consent shall not be
        unreasonably withheld; and (C) shall inure to the benefit of, and be enforceable
        by, Payee and its successors and assigns and the duties and obligations of
        Guarantor shall bind Guarantor and Guarantor's successors and permitted
        assigns.

       

      (f)
        Severability. Whenever possible this Guaranty and each provision hereof shall
        be
        interpreted in such manner as to be effective, valid and enforceable under
        applicable law. Any provisions of this Guaranty which are prohibited or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction. In addition, any determination that the application of
        any
        provision hereof to any person or under any circumstance is illegal and
        unenforceable shall not affect the legality, validity and enforceability
        of such
        provision as it may be applied to any other person or in any other
        circumstance.

       

      11. ACKNOWLEDGEMENT.
        GUARANTOR HEREBY ACKNOWLEDGES AND AGREES THAT GUARANTOR MAKES ALL OF THE
        WAIVERS, AGREEMENTS AND CONSENTS ("WAIVERS")
        SET
        FORTH IN THIS GUARANTY KNOWINGLY, INTENTIONALLY, VOLUNTARILY, WITHOUT DURESS,
        AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF SUCH WAIVERS
        WITH
        GUARANTOR’S COUNSEL; GUARANTOR FURTHER ACKNOWLEDGES THAT SUCH WAIVERS ARE A
        MATERIAL INDUCEMENT TO PAYEE’S ACCEPTANCE OF THE NOTE. GUARANTOR ACKNOWLEDGES
        THAT GUARANTOR HAS SUFFICIENT KNOWLEDGE AND EXPERIENCE TO EVALUATE THE RISKS
        OF
        THIS GUARANTY. IF ANY OF THE WAIVERS HEREIN ARE DETERMINED TO BE UNENFORCEABLE
        UNDER APPLICABLE LAW, SUCH WAIVERS SHALL BE EFFECTIVE TO THE MAXIMUM EXTENT
        PERMITTED BY LAW.

       

      
        
          
          

        

        
          I-5

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, THE PARTIES HERETO EXECUTED AND DELIVERED THIS AGREEMENT
        AS OF
        THE EFFECTIVE DATE.

      

      
        	
                GUARANTOR:

              	
                PAYEE:

              
	 	 
	
                Argyle
                  Security, Inc.

              	
                __________________________________________

              
	 	
                Jeffrey
                  E. Corcoran

              
	 	 
	 	 
	
                By:_________________________________

              	 
	
                Name:
                  Don Neville

              	
                ___________________________________________

              
	
                Its:
                  Chief Financial Officer

              	
                Janell
                  D. Corcoran

              
	 	 
	
                GUARANTOR'S
                  ADDRESS 

              	
                PAYEE’S
                  ADDRESS

              
	
                200
                  CONCORD PLAZA, STE 700

              	
                N100
                  CRAFTSMEN DRIVE

              
	
                SAN
                  ANTONIO, TX 78216

              	
                GREENVILLE,
                  WI 54942

              
	
                ATTENTION:
                  DON NEVILLE

              	
                ATTENTION:
                  JEFF CORCORAN

              

      

       

      [Signature
        Page to Guaranty of Argyle Security, Inc.]

       

      
        
          
          

        

        
          I-6

          
            

          

        

        
          
          

        

      

      

        EXHIBIT
          J

        

        Lease
          Agreement

         

        
          
            
            

          

          
            J-1

            
              

            

          

          
            
            

          

        

      

       

      LEASE
        AGREEMENT

       

      THIS
        LEASE AGREEMENT
        (the
“Lease”), is made and entered into this 1st
        day of
        February, 2008, by and between J.J.C.
        VALLEY PROPERTIES, LLC,
        (the
“Lessor”), and ISI
        CONTROLS, LTD. (the
        “Lessee”).

      

      WITNESSETH:

      

      IN
        CONSIDERATION
        of the
        rents and agreements of Lessee herein, Lessor hereby leases to Lessee the
        following-described premises situated at 3030 East Goodland Drive, City of
        Appleton, Outagamie County, Wisconsin (hereinafter referred to as the
“Premises”), on and subject to the terms, conditions and provisions herein
        contained. 

      

      1. Term.
        To have
        and to hold the Premises to Lessee for a term of five (5) years, commencing
        on
        February 1, 2008 (the “Commencement Date”) and ending at midnight on January 31,
        2013 (the “Initial Term”).

      

      2. Option
        to Extend Lease Term.
        Provided that Lessee is not in default with respect to any term or condition
        of
        this Lease,
        Lessee
        shall have the option to extend the Lease for two (2) additional five (5)-year
        terms, provided notice in writing shall be given to Lessor at least one hundred
        eighty (180) days prior to the end of the initial term of the Lease or any
        extended term thereof. The rental for the extension period shall be as provided
        below. 

      

      3. Rent.
        Lessee
        agrees to pay to Lessor, as rent during the Initial Term of this Lease and
        the
        first renewal term, the sum of Fourteen Thousand Dollars ($14,000.00) per
        month
        (“Base Rent”), commencing on the Commencement Date and on the 1st day of each
        calendar month thereafter. Notwithstanding anything contained in the preceding
        sentence, unless and until Lessee defaults beyond any applicable notice and
        cure
        periods, with respect to any covenant or obligation set forth in this Lease
        or
        in the Business Note (the “Note”), executed on even date herewith by and between
        Lessee and Lessor, Lessee’s obligation to pay rent from the Commencement Date up
        through and including January 31, 2010, shall abate (the “Rental Abatement
        Period”).

      

      In
        the
        event that Lessee defaults, with respect to any covenant or obligation set
        forth
        in this Lease or in the Note during the Rental Abatement Period, which such
        default is not cured within fourteen (14) days of Lessor’s written notice to
        Lessee (the “Notice Period”), then this Lease shall terminate on the last day of
        the Notice Period and all Base Rent that would have been due to Lessor from
        Lessee during the Rental Abatement Period shall be immediately due and
        payable.

      

      In
        the
        event that Lessee defaults with respect to any covenant or obligation set
        forth
        in the Note during the Rental Abatement Period and such default is cured
        during
        the Notice Period, then this Lease will not terminate, but the rental abatement
        shall be revoked retroactive to the Commencement Date. Thereafter, Lessee’s Base
        Rent shall be increased to an amount equal to the total of Lessee’s Base Rent
        that would have been due during the Rental Abatement Period but for the
        abatement of such Base Rent, plus the total of all Base Rent due throughout
        the
        balance of the Initial Term of this Lease divided by the number of months
        remaining in the Initial Term of this Lease. Said increased Base Rent shall
        be
        due and payable on the first day of the first month immediately after the
        end of
        the Notice Period, during which Lessee’s default was cured, and, thereafter, on
        the first day of each month thereafter throughout the balance of the Initial
        Term. During the first renewal term, however, Lessee’s Base Rent shall be
        reduced to Fourteen Thousand Dollars ($14,000.00) per month payable on the
        first
        day of the first month of the first renewal term and on the same day of each
        successive month thereafter.

      
         

        
          J-2

          
            

          

        

        
          
          

        

      

      

      In
        the
        event that Lessee shall exercise Lessee’s option to renew this Lease for a
        second renewal term, then Lessee’s monthly rental obligation, throughout the
        entire second renewal term, shall be equal to ninety-five percent (95%) of
        the
        prevailing market rate for commercial premises of like kind construction,
        design, use, and location (the “Prevailing Market Rate”). For purposes of this
        Lease, the Prevailing Market Rate shall be determined, as of the first day
        of
        the second renewal term, by the written mutual agreement of Lessor and Lessee.
        In the event that Lessee and Lessor have not mutually agreed as to the
        Prevailing Market Rate by a date that is forty-five (45) days prior to the
        first
        day of the second renewal term, then Lessor shall, at Lessor’s expense, obtain
        an independent written determination of the Prevailing Market Rate from a
        qualified commercial real estate broker familiar with the Premises and
        commercial real estate, in general, in Outagamie County, Wisconsin. Lessee
        shall
        also, at Lessee’s expense, obtain an independent written determination of the
        Prevailing Market Rate from a qualified commercial real estate broker familiar
        with the Premises and commercial real estate, in general, in Outagamie County,
        Wisconsin. If the two (2) opinions are within ten percent (10%) of each other,
        determined according to ten percent (10%) of the higher of the two (2) opinions,
        then the Prevailing Market Rate shall be equal to the average of the two
        (2)
        opinions. If the two (2) opinions are not within ten percent (10%) of each
        other, determined according to ten percent (10%) of the higher of the two
        (2)
        opinions, and Lessor and Lessee are still unable to agree as to the Prevailing
        Market Rate, then the two (2) commercial real estate brokers shall appoint
        a
        third qualified commercial real estate broker familiar with the Premises
        and
        commercial real estate, in general, in Outagamie County, Wisconsin, the expense
        of which shall be divided equally between Lessor and Lessee, and the opinion
        of
        the third commercial real estate broker shall be the Prevailing Market
        Rate.

      

      Notwithstanding
        anything contained in this Section 3 to the contrary, for any month during
        the
        second renewal term during which Lessee’s Base Rent is in dispute and subject to
        the dispute resolution process set forth above, Lessee’s monthly rental
        obligation shall be Fourteen Thousand Dollars ($14,000.00) subject to
        adjustment, upward or downward, upon the determination of Lessee’s Base Rent due
        and owing throughout the second renewal term. Any such adjustment shall be
        made
        to the first and, if necessary, second Base Rent payments due immediately
        after
        the final second renewal term Base Rent determination.

      

      4. Charge
        for Late Rent.
        Any
        rent not timely paid by or on the fourteenth (14th) day of any calendar month
        shall accrue a late charge of one and one-half percent (1-1/2%) for each
        month,
        or portion thereof, that such rent remains unpaid.

      

      5. Security
        Deposit.
        Upon
        the execution of this Lease, Lessee shall pay a security deposit of Fourteen
        Thousand Dollars ($14,000.00) to be held by Lessor to secure Lessee’s
        performance of Lessee’s obligations and protect Lessor’s rights under this
        Lease, which sum shall be refunded to Tenant within ten (10) days of the
        expiration of this Lease.

      

      6. Use
        and Care of Premises.
        The
        Premises may be used for any lawful purpose and shall be kept in a clean
        and
        safe condition in accordance with local ordinances and lawful direction of
        proper authorities.

      

      7. Structural
        Alterations or Additions.
        No
        structural alterations or additions shall be made by Lessee during the term
        of
        this Lease, in or to the Premises, without the prior written consent of Lessor,
        which consent shall not be unreasonably withheld. Any alterations or additions
        to be made shall comply with appropriate building code and zoning ordinances.
        All additions or alterations as made shall, at the option of Lessor, become
        part
        of the Premises and property of Lessor or, upon termination of the Lease,
        Lessor
        may demand that Lessee remove the same and restore the Premises to a
        substantially similar condition they were in prior to Lessee’s occupancy,
        reasonable wear and tear, and damage caused by casualty, excepted. However,
        once
        Lessor agrees that an alteration shall become part f the Premises and the
        property of Lessor, Lessee shall have no obligation to remove said alteration.
        

      
         

        
          J-3

          
            

          

        

        
          
          

        

      

      

      8. Utilities
        and Services.
        Lessee
        shall pay all utility and service charges, including but not limited to,
        gas,
        water, heat, air-conditioning or electricity charges, used in the Premises,
        as
        the same shall become due.

      

      9. Taxes.
        Lessee
        shall, during the term of this Lease, pay all real estate taxes levied in
        respect of the Premises, or any part thereof, whether assessed against Lessor
        or
        against Lessee. Lessee shall pay to Lessor, as additional rent, an amount
        equal
        to one-twelfth (1/12th) of the real estate taxes levied in respect of the
        Premises. Said amount shall be calculated on the basis of the prior year’s real
        estate taxes and shall be payable, in advance, with each of Lessee’s monthly
        rental payments.

       

      If
        the
        total of Lessee’s additional rent payments, relative to real estate taxes with
        respect to any tax year, is less than the actual amount of the Premises’ real
        estate taxes, then Lessee shall pay, within thirty (30) days of Lessee’s receipt
        of Lessor’s written demand, the difference between the total of Lessee’s
        additional rent payments, for the applicable year, and the actual real estate
        taxes due and owing with respect to the Premises. 

      

      If
        the
        total of Lessee’s additional rent payments, relative to real estate taxes with
        respect to any tax year, exceeds the actual amount of the Premises’ real estate
        taxes, then the excess shall be credited against Lessee’s obligation to pay real
        estate taxes for the Premises for the following year, or in the event this
        Lease
        has terminated, Lessor shall promptly refund such overpayment amount to
        Tenant.

      

      In
        the
        event any special assessments, including specifically, but not exclusively,
        curb, gutter, paving, etc., are levied against the Premises and are not caused
        specifically by the actions of Lessee, then Lessor shall be responsible for
        the
        payment of said special assessments in full when levied or, if an alternative
        installment payment is available, at Lessor’s option, Lessor shall pay said
        special assessments over the installment periods.

      

      The
        foregoing notwithstanding, to the extent that any structural alterations
        or
        additions are made to the Premises which increase the value of the Premises
        for
        purposes of real estate taxes or result in a special assessment being levied
        against the Premises, Lessee shall be responsible for the payment of said
        increase in said real estate taxes and/or said special assessment.

      

      10. Repairs
        and Maintenance.
        Lessee
        shall keep and maintain the Premises in good condition and repair (except
        for
        reasonable wear and tear and damage by casualty), including, but not limited
        to,
        the heating, electrical, plumbing and air-conditioning systems exclusively
        serving the Premises, and shall replace all broken and cracked glass. Except
        as
        set forth below, Lessee shall also be responsible for repairing any damage
        caused to the Premises, whether directly or indirectly, during Lessee’s
        occupancy of the Premises.

      

      Lessor
        has delivered the building in good repair and condition to Lessee, but agrees
        that Lessor shall be obligated to maintain such structural portions of the
        building (i.e., walls, roof and foundations) during the term hereof, provided
        that said repair is not due to the actions of Lessee in which event Lessee
        shall
        be responsible for such repair and maintenance.

      

      If
        Lessee
        refuses or neglects to commence or complete repairs promptly and adequately,
        Lessor may, but shall not be required to do so, make or complete said repairs
        and Lessee shall pay the reasonable third-party costs thereof to Lessor within
        ten (10) days written demand therefore.. Lessee shall comply with the directions
        of proper public officers as to the maintenance of the Premises and shall
        comply
        with all health and police regulations applicable to or affecting the
        Premises.

      
         

        
          J-4

          
            

          

        

        
          
          

        

      

      

      Lessee
        shall undertake appropriate measures to maintain the Premises in a sanitary
        condition and free from rodents and/or pests.

      

      Lessee
        shall be responsible for snow removal and lawn and landscape maintenance
        at the
        Premises.

      

      11. Insurance.

      

      A. Fire
        and Extended Coverage.
        Lessee
        shall carry fire and extended coverage insurance on the Premises during the
        entire term of this Lease in an amount equal to the full insurable value
        of the
        buildings and all additions or improvements made thereon by either party,
        written by a reliable insurance company or companies authorized to do business
        in the State of Wisconsin.

      

      B. Liability.
        Lessee
        shall keep in force for the benefit of Lessor and Lessee comprehensive general
        liability insurance with minimum limits of liability in respect to bodily
        injury
        of One Million Dollars ($1,000,000.00) for each person and Two Million Dollars
        ($2,000,000.00) for each occurrence and, with respect to property damage,
        the
        sum of Five Hundred Thousand Dollars ($500,000.00) for each
        occurrence.

      

      C. Contents.
        Lessee
        shall keep in force for Lessee’s benefit a policy of insurance in broad
        endorsement form to protect damage to the contents on the Premises.

      

      D. Waiver
        of Subrogation.
        Each
        party mutually releases and discharges the other, and its employees, from
        all
        claims and liabilities arising from or caused by any hazard covered by insurance
        on the Premises or covered by insurance in connection with property on or
        activities conducted on the Premises, regardless of the cause of the damage
        or
        loss.

      

      This
        release is conditioned upon the inclusion in the policy or policies of a
        provision whereby any such release shall not adversely affect said policies
        or
        prejudice any right of the party releasing the other to recover through said
        policy. Each party agrees that such party’s insurance policy shall include such
        a provision so long as the same shall be obtainable without extra
        cost.

      

      E. Certificates
        of Insurance.
        All
        Certificates of Insurance shall be deposited with Lessor. The policy or policies
        shall name Lessor and Lessee as insureds and shall bear endorsements to the
        effect that the insurer agrees to notify Lessor not less than thirty (30)
        days
        in advance of any modification or cancellation thereof.

      

      Lessee
        agrees that no act or thing shall be done on the Premises which may void,
        or
        make voidable, any insurance on the Premises, or any part thereof.

      

      12. Damage
        by Fire or Other Casualty.
        Damage
        not in excess of thirty-three and one-third percent (33-1/3%) of the Premises
        by
        fire or any other cause shall not terminate this Lease, but shall entitle
        Lessee
        to a pro rata abatement or reduction in rent payable to Lessor. Lessor shall
        proceed with due diligence to collect the proceeds of any available insurance,
        and rebuild or restore the Premises to at least as good a condition as existed
        immediately prior to the casualty.

       

      
         

        
          J-5

          
            

          

        

        
          
          

        

      

      
         

        In
          the
          event of damage in excess of thirty-three and one-third percent (33-1/3%)
          of the
          Premises or its total destruction, Lessee shall have the option to terminate
          this Lease and surrender the Premises, or to a pro rata abatement or reduction
          of the rent payable to Lessor.

      In
        the
        event Lessor and Lessee mutually agree that it would be in their best interest
        to rebuild or restore the Premises, then Lessor shall proceed with due diligence
        to collect the proceeds of any available insurance and rebuild or restore
        the
        Premises to at least as good a condition as existed immediately prior to
        the
        casualty.

      

      13. Lessor’s
        Right of Entry.
        Lessor
        may enter into and on the Premises, including any building or structure thereon,
        during Lessee’s normal business hours, and on twenty-four (24) hours prior
        notice, for the purpose of examining or inspecting the conditions thereof
        in
        order to exercise any right or power reserved to Lessor under the terms and
        provisions of this Lease.

      

      14. “For
        Rent” or “For Sale” Signs of Lessor.
        Lessor
        may, within one hundred eighty (180) days prior to the expiration of any
        Lease
        term, if there has been no extension or renewal, place signs on the walls,
        doors
        or windows of the building on the Premises, advertising that the Premises
        are
        for rent or for sale, which signs shall remain thereon without hindrance
        or
        molestation by Lessee.

      

      15. Restrictions
        Against Liens.
        Lessee
        shall pay and settle all expenses and liabilities arising out of or in any
        way
        connected with any and all construction, repairs, alterations or maintenance
        authorized by Lessee and approved by Lessor of any and all buildings on the
        Premises, and Lessee shall keep the Premises and the structures thereon free
        and
        clear from all liens of mechanics or materialmen, and all liens of a similar
        character, arising out of or growing out of the construction, repair, alteration
        or maintenance of such structures.

      

      16. Indemnity.
        Lessee
        assumes all risks and responsibilities for accidents, injuries, or death
        resulting from injuries or damages to person or property occurring in, on,
        or
        about the Premises. Subject to the waiver of subrogation set forth in Section
        11D hereof, Lessee agrees to indemnify and hold Lessor, and Lessor’s members,
        officers, directors, employees, agents, and assigns from any and all claims,
        liabilities, losses, costs, and expenses (including reasonable attorneys’ fees)
        arising from or in connection with, the condition, use, or control of the
        Premises, including the improvements thereon, during the term of this Lease
        and
        any renewal term. Subject to the waiver of subrogation set forth in Section
        11D
        hereof, Lessee shall be liable to Lessor for any damages to the Premises,
        including the improvements thereon, and for any act done by Lessee or any
        employee or agent of Lessee, or any invitee or licensee of Lessee.

      

      17. Waste.
        Lessee
        shall not suffer or permit any waste, or overloading, damaging or defacing
        of
        the Premises, or any uses thereof which shall be unlawful, improper or contrary
        to any law of the State of Wisconsin, or ordinance of the municipality, or
        rule
        or regulation of any public authority at the time being in force, or injurious
        to any person or property.

      
         

        
          J-6

          
            

          

        

        
          
          

        

      

      

      18. Assignment
        and Subleases.
        Lessee
        may not assign or transfer this Lease or sublease the whole or any part of
        the
        Premises, without the written consent of Lessor, which shall not be unreasonably
        withheld, provided that Lessee shall nevertheless remain primarily liable
        to
        Lessor for the payment of all rent and for the full performance of all of
        the
        covenants and conditions of this Lease.

      

      Lessor
        shall, however, have the right to sell or transfer the Premises, subject
        to all
        of the provisions of this Lease.

      

      19. Compliance
        with Laws.
        Lessee
        agrees to observe and comply with all rules, regulations and laws now in
        effect,
        or which may be enacted during the continuance of this Lease, by any municipal,
        county, State or Federal authorities having jurisdiction over the
        Premises.

      

      20. Lessee’s
        Default.
        This
        Lease is made upon the condition that Lessee shall punctually and faithfully
        perform all of the covenants and agreements by Lessee to be performed as
        herein
        set forth, and if any of the following events of default shall occur,
        to-wit:

      

      A. The
        rent
        or any other sums required to be paid by Lessee hereunder, or any part thereof,
        shall at any time be in arrears and unpaid for fourteen (14) days after receipt
        of written notice of default from Lessor to Lessee; or

      

      B. There
        be
        any default in the observance or performance of any of the other covenants,
        agreements or conditions of this Lease on the part of Lessee to be kept and
        performed, and said default shall continue for a period of thirty (30) days
        after written notice thereof from Lessor to Lessee (unless such default cannot
        be reasonably cured within thirty (30) days and Lessee shall have commenced
        to
        cure said default within said thirty (30) days and continues diligently to
        pursue the curing of the same); or

      

      C. Any
        proceedings in bankruptcy, insolvency or reorganization shall be instituted
        against Lessee, and such proceeding is not stayed within 45 days of its
        commencement, pursuant to any federal or state law, or any receiver or trustee
        shall be appointed for all or any portion of Lessee’s business or property, or
        any final, non-appealable execution or attachment in excess of $500,000 shall
        issue against Lessee or Lessee’s business or property or against the leasehold
        estate created under this Lease or Lessee shall be adjudged a bankrupt or
        insolvent, or Lessee shall make an assignment for the benefit of creditors,
        or
        Lessee shall file a voluntary petition in bankruptcy or petitions for (or
        enters
        into) an arrangement for reorganization, composition or any other arrangement
        with Lessee’s creditors under any federal or state law; or 

      

      D. The
        leasehold estate hereby created shall be taken on execution or by other process
        of law;

      
         

        
          J-7

          
            

          

        

        
          
          

        

      

      

      then,
        and
        in any of said cases, Lessor, at Lessor’s option, may terminate this Lease and
        reenter upon the Premises and take possession thereof with full right to
        sue for
        and collect all sums or amounts with respect to which Lessee may then be
        in
        default and accrued up to the time of such entry, including damages to Lessor
        by
        reason of any breach or default on the part of Lessee, or Lessor may, if
        Lessor
        elects so to do, bring suit for the collection of such rents and damages
        without
        entering into possession of the Premises or voiding this Lease.

      

      In
        addition to, but not in limitation of, any of the remedies set forth in this
        Lease or given to Lessor by law or in equity, Lessor shall also have the
        right
        and option, in the event of any default by Lessee under this Lease and the
        continuance of such default after the period of notice above provided, to
        retake
        possession of the Premises from Lessee by summary proceedings or otherwise
        (and
        it is agreed that the commencement and prosecution of any action by Lessor
        in
        forcible entry and detainer, ejectment or otherwise, or any execution of
        any
        judgment or decree obtained in any action to recover possession of the Premises,
        shall not be construed as an election to terminate this Lease unless Lessor
        expressly exercises Lessor’s option hereinbefore provided to declare the term
        hereof ended, whether or not such entry or reentry be had or taken under
        summary
        proceedings or otherwise, and shall not be deemed to have absolved or discharged
        Lessee from any of Lessee’s obligations and liabilities for the remainder of the
        term of this Lease) and Lessee shall, notwithstanding such entry or reentry,
        continue to be liable for the payment of the rents and the performance of the
        other covenants and conditions hereof and shall pay to Lessor all monthly
        deficits after any such reentry in monthly installments as the amounts of
        such
        deficits from time to time are ascertained and if, in the event of any such
        ouster, Lessor rents or leases the Premises to some other person, firm or
        corporation (whether for a term greater than, less than or equal to the
        unexpired portion of the term created hereunder) for an aggregate rent during
        the portion of such new lease coextensive with the term hereby created which
        is
        less than the rent Lessee would pay hereunder for such period, Lessor may
        immediately, upon the making of such new lease or the creation of such new
        tenancy, sue for and recover the difference between the aggregate rental
        provided for in said new lease or the portion of the term thereof coextensive
        with the term created hereunder and the rent which Lessee would pay hereunder
        for such period, together with any expenses to which Lessor may be put for
        brokerage commission, placing the Premises in tenantable condition or otherwise.
        If such new lease or tenancy is made for a shorter term than the balance
        of the
        term of this Lease, any such action brought by Lessor to collect the deficit
        for
        that period shall not bar Lessor from thereafter suing for any loss accruing
        during the balance of the unexpired term of this Lease.

      

      In
        addition to all other sums due and owing from Lessee to Lessor, as the result
        of
        Lessee’s default in any term or condition set forth in this Lease, Lessee shall
        be responsible for and shall pay to Lessor all of Lessor’s costs and expenses,
        including actual attorneys’ fees, incurred by Lessor in enforcing Lessee’s
        obligations pursuant to this Lease. However, Lessor acknowledges that Lessor
        has
        a duty to mitigate Lessor’s damages in the event of a default by
        Lessee.

      

      21. Quiet
        Enjoyment.
        Lessor
        agrees that if the rent aforesaid shall be paid as hereinabove provided and
        Lessee shall keep and perform the covenants of this Lease on the part of
        Lessee
        to be kept and performed, Lessee shall peaceably and quietly hold, occupy
        and
        enjoy the Premises during the term hereof, without hindrance or molestation
        by
        Lessor or any person or persons lawfully claiming under Lessor.

      

      22. Lessor’s
        Remedies; Cumulative, etc.
        Each
        right, power and remedy of Lessor provided for in this Lease shall be cumulative
        and concurrent and shall be in addition to every other right, power or remedy
        provided for in this Lease or now or hereafter existing at law or in equity
        or
        by statute or otherwise, and the exercise or beginning of the exercise by
        Lessor
        of any one or more of the rights, powers or remedies provided for in this
        Lease
        or now or hereafter existing at law or in equity or by statute or otherwise
        shall not preclude the simultaneous or later exercise by Lessor of any or
        all
        other such rights, powers or remedies.

      
         

        
          J-8

          
            

          

        

        
          
          

        

      

      

      23. Waiver.
        Any
        assent, express or implied, by Lessor to any breach of any agreement or
        condition herein contained, or any waiver, express or implied, by Lessor
        of any
        such agreement or condition herein contained shall operate as such only in
        specific instances, and shall not be construed as an assent or waiver of
        any
        such agreement or condition generally or of any subsequent breach
        thereof.

      

      24. Signs.
        Lessee
        shall have the right at all times during the term of this Lease, at Lessee’s
        sole expense, to erect, install, operate and maintain identifying signs on
        the
        Premises provided that, upon the removal of said signs, the Premises are
        restored to at least as good a condition as existed prior to their
        installation.

      

      25. Hazardous
        Substances.
        Lessee
        shall not cause or permit any hazardous substances to be used, stored, generated
        or disposed of on, in or about the Premises by Lessee, Lessee’s agents,
        employees, contractors or invitees; provided, however, that Lessee may keep
        and
        use small quantities of hazardous substances as are necessary in the ordinary
        course of Lessee’s business, and further provided that Lessee shall handle,
        store, use and dispose of any such hazardous substance in accordance with
        applicable Federal, State and local laws and regulations, and in a manner
        which
        shall not cause contamination to the Premises.

      

      Lessee
        shall indemnify and hold Lessor harmless from any liability, claim, demand,
        order or injury (including reasonable attorney, consultant and expert fees),
        arising from Lessee’s, or Lessee’s agents’, employees’, contractors’ or
        invitees’ handling, storage, disposal or release of any hazardous substance in,
        under or about the Premises, including, without limitation, the cost of any
        required or necessary repair, cleanup, remediation or detoxification of the
        Premises.

      

      The
        foregoing covenants and indemnification shall survive the expiration of the
        term
        of this Lease.

      

      The
        foregoing covenants and indemnification are cumulative to any rights or remedies
        which Lessor or Lessee may have at law or in equity, and shall not operate
        to
        limit such rights or remedies.

      

      As
        used
        herein, “hazardous substance” means any substance that is toxic, ignitable,
        reactive or corrosive, and whose storage, handling, disposal or transport
        is
        regulated by Federal, State or local statute, rule, regulation or ordinance,
        and
        shall include any material or substance that is defined as “hazardous waste,”
“extremely hazardous waste” or a “hazardous substance” pursuant to Federal,
        State or local statute, rule, regulation or ordinance, including, but not
        limited to, asbestos, polychlorinated biphenyls (“PCBs”) and petroleum. In no
        event shall Tenant be liable or responsible for any environmental conditions
        or
        hazardous substances existing prior to the date of this Lease

      

      26. Holding
        Over.
        If
        Lessee remains in possession of the Premises after the expiration of the
        term,
        or after termination of this Lease, and without the execution of a new Lease,
        Lessee shall be deemed to be occupying the Premises as a lessee from
        month-to-month, subject to all the conditions, provisions, and obligations
        of
        this Lease insofar as they are applicable to a month-to-month tenancy. The
        inclusion of this paragraph or acceptance by Lessor of any rent after the
        expiration of the term or termination of this Lease shall not constitute
        permission for Lessee to hold over. Lessee expressly waives any requirement
        for
        Lessor to give Lessee any notice to quit the Premises, whether at the end
        of the
        term or during any hold-over period.

      

      27. Eminent
        Domain.
        In case
        the Premises, or any part thereof, shall be taken by right of eminent domain,
        or
        by other authority of law, after execution hereof, and before expiration
        of said
        term, this Lease and said term shall terminate at the election of the Lessee;
        and if the Lessee shall not so elect, then in case of such taking, a just
        proportion of rent hereinbefore reserved, according to nature and extent
        of
        injuries sustained by the Premises, shall be abated until the Premises, or
        whatever may remain thereof, shall have been put in proper condition for
        use and
        occupancy. In case of any such taking, the total damages arising therefrom
        shall
        be recovered by Lessor, Lessee hereby assigning all rights in or to such
        damages
        to Lessor, and the net amount recoverable and recovered therefor shall be
        apportioned between Lessor and Lessee in such proportions as shall be reasonably
        determined by Lessor. It is the intention of the parties, in regard to
        distribution of damages or indemnity for taking by public authority, to appoint
        Lessor as the person to whom such damages or indemnity are to be paid, and
        to
        provide that such sums shall be distributed in the manner herein provided
        for.

      
         

        
          J-9

          
            

          

        

        
          
          

        

      

      

      28. Subordination.
        This
        Lease and all rights of Lessee hereunder shall be subject and subordinate
        to the
        lien of any and all mortgages on the underlying financing of the Lessor which
        affect the Premises or any part thereof and to any and all renewals,
        modifications or extensions of any such mortgages. Conditioned on Lessee
        first
        receiving from any lien holder of the Premises an executed Subordination,
        Non-Disturbance and Attornment Agreement in form and content reasonably
        acceptable to Lessee(“SNDA”),Lessee shall on demand execute, acknowledge and
        deliver to Lessor without expense to Lessor any and all instruments that
        may be
        necessary or proper to subordinate this Lease and all rights therein to the
        lien
        of any such mortgage or mortgages and each renewal, modification or extension
        and if Lessee shall fail at any time to execute, acknowledge and deliver
        any
        such subordination instrument, Lessor, in addition to any other remedies
        available and consequence thereof, may execute, acknowledge and deliver the
        same
        as Lessee’s attorney-in-fact and in Lessee’s name. Lessee hereby irrevocably
        makes, constitutes and appoints Lessor, Lessor’s successors and assigns, as
        Lessee’s attorney-in-fact for that purpose.

      

      29. Notices.
        Any
        notice or other communication required by or permitted to be given in connection
        with this Lease shall be in writing, and shall be delivered in person or
        sent
        first class mail, certified or registered mail, return receipt requested,
        postage prepaid, to the respective parties at the addresses set forth below,
        or
        at such other address as may be specified from time to time in writing delivered
        by the other party:

      

      Lessor:

      J.J.C.
        Valley Properties,
        LLC

      Attn:
        Jeffrey E. Corcoran

      N100
        Craftsmen Drive

      Greenville,
        WI 54942

      

      With
        a copy
        to:                Metzler,
        Timm, Treleven & Hermes, S.C. 

      Attn:
        David J. Timm 

      222
        Cherry Street

      Green
        Bay, WI 54301-4223

      

      Lessee:

      ISI
        Controls,
        Ltd.

      12903
        Delivery Drive

      San
        Antonio, Texas 78247

      

      With
        a copy
        to:                 D.
        Hull Youngblood, Jr. 

      K&L
        Gates

      111
        Congress Avenue

      Suite
        900

      Austin,
        Texas 78701

       

      
         

        
          J-10

          
            

          

        

        
          
          

        

      

      

      30. Construction
        of Lease.
        This
        Lease shall be construed in accordance with the laws of the State of Wisconsin,
        and shall further be construed without regard to any presumption or rule
        requiring construction against the party causing the Lease to be
        drafted.

      

      31. Recordation
        of Memorandum of Lease.
        Neither
        Lessor nor Lessee shall record this Lease. However, either party may record
        a
        Memorandum of Lease, providing notice of Lessee’s interests described herein for
        the entire Lease term, including extensions. Said Memorandum of Lease shall
        not
        contain any specific information about the Lease rental payment
        amounts.

      

      32. Entire
        Lease.
        This
        Lease evidences the entire agreement between the parties hereto with respect
        to
        the matters provided for herein and there are no agreements, representations
        or
        warranties with respect to any matters provided for herein other than those
        set
        forth herein.

      

      33. Severability.
        The
        parties agree that, if any provision of this Lease shall, under any
        circumstances, be deemed invalid or inoperative, this Lease shall be construed
        with the invalid or inoperative provision deleted and the rights and obligations
        of the parties shall be construed and enforced accordingly.

      

      34. Amendment
        and Modification.
        The
        parties hereto may amend, modify or supplement this Lease in such manner
        as may
        be mutually agreed upon by them in writing.

      

      35. Binding
        Effect.
        This
        Lease shall be binding upon and inure to the benefit of the parties, their
        respective heirs, successors, personal representatives and assigns.

      

      36. Arbitration.
        Except
        for matters related to the Lessee’s obligation to timely pay rent, when due and
        any related action to terminate Lessee’s tenancy and evict Lessee from the
        Premises; disputes arising under this Lease or in any way relating to the
        relationship of Lessee and Lessor as contemplated in this Lease, shall be
        resolved through binding arbitration located in Appleton, Outagamie County,
        Wisconsin. Arbitration shall be initiated by either party providing to the
        other
        party written notice of a request for arbitration which such notice shall
        include facts of sufficient detail in order to apprise the other party of
        the
        nature of the alleged dispute. Each party shall appoint one (1) representative
        and said representatives shall, thereafter, mutually agree upon and select
        one
        (1) person who shall serve as the parties’ arbitrator hereunder (the
“Arbitrator”). If the parties’ representatives are unable to agree, as
        determined in the sole discretion of Lessor’s representative, as to the
        appointment of the Arbitrator, then the Arbitrator shall be selected by Lessor’s
        representative with notice of said selection being delivered to Lessee in
        writing; provided, however, that the Arbitrator selected solely by Lessor’s
        representative must be a former Wisconsin Circuit Court judge. The initiating
        party’s representative shall be identified in the initiating party’s initial
        notice. The other party’s representative shall be named, in writing, by delivery
        of a notice to the initiating party within five (5) days of said party’s receipt
        of the initial arbitration notice. Each of parties’ representatives shall be
        members in good standing of the Wisconsin State Bar Association and who shall
        have expertise in commercial disputes and/or business transactions. The parties’
representatives shall select the Arbitrator who shall also be a member in
        good
        standing of the Wisconsin State Bar Association and who shall also have
        expertise in commercial disputes and/or business transactions. If either
        Lessee
        or Lessor fails to timely appoint their representative, then the other party’s
        timely appointed member may select the Arbitrator. The Arbitrator shall provide
        a written decision stating his findings based on the facts of any dispute
        and
        the applicable law. Except as specifically set forth herein, all matters
        relating to the arbitration proceedings contemplated in this Lease, shall
        be
        governed by and be conducted in accordance with Chapter 788 of the Wisconsin
        Statutes, as may be amended from time to time. The decision of the Arbitrator
        shall be conclusively binding on the parties hereto.

      
         

        
          J-11

          
            

          

        

        
          
          

        

      

      The
        terms
        of this Section 36, with respect to arbitration, are self executing. If any
        party refuses or neglects to appear at or participate in any arbitration
        proceeding conducted pursuant to the terms and conditions of this Lease,
        after
        reasonable notice, the Arbitrator shall proceed ex parte to decide the matter
        in
        accordance with the evidence as presented by the participating party. All
        hearings conducted by the Arbitrator shall be conducted within forty-five
        (45)
        days of the date of appointment of the Arbitrator and all discovery deadlines
        and other time sensitive matters shall be scheduled consistent therewith.
        Not
        later than seven (7) days prior to any arbitration hearing, including, but
        not
        limited to, a final hearing, the parties shall deliver to one another and
        to the
        Arbitrator, a written list of the names of all witnesses and a specific written
        summary of the testimony expected to be provided by each witness. In addition,
        each party shall provide to the other party copies of all documents intended
        to
        be presented at said hearings within said seven (7) day time period. No witness
        or document shall be allowed to testify at or shall be allowed presented
        at said
        hearings which has not been disclosed to the other party and to the Arbitrator
        as required in the preceding sentences. 

      

      In
        any
        arbitration proceeding conducted pursuant to the terms and conditions of
        this
        Lease, the prevailing party, as determined by the Arbitrator, shall be entitled
        to recover from the non-prevailing party, in addition to such other relief
        as
        may have been provided by the Arbitrator, the prevailing party’s reasonable
        attorneys’ fees and costs incurred in connection with the arbitration
        proceeding. If neither party is determined by the Arbitrator to have prevailed
        on all
        issues,
        then the Arbitrator shall be entitled to, but shall not be obligated to,
        assess
        costs and reasonable attorneys’ fees, against the parties the Arbitrator deems
        appropriate. Under all circumstances, the costs and expenses of the Arbitrator
        shall be split equally between Lessee and Lessor.

       

      IN
        WITNESS WHEREOF,
        the
        parties hereto have executed this Lease on the date first written
        above.

      

      
        	
                LESSOR:

              	 	
                LESSEE:

              
	
                J.J.C.
                  VALLEY PROPERTIES, LLC

              	 	
                ISI
                  Controls, Ltd.

              
	 	 	
                By:
                  Metroplex Control Systems, Inc

              
	 	 	
                Its:
                  Sole General Partner

              
	 	 	 
	
                By:
                  ______________________________ 

              	 	
                By:______________________________

              
	
                      
                  Jeffrey E. Corcoran, Member

              	 	
                     
                  Sam Youngblood

              
	 	 	
                Its:
                  CEO

              
	 	 	 
	
                By:
                  ______________________________

              	 	 
	
                      
                  Janell D. Corcoran, Member

              	 	 

      

      

      THIS
        INSTRUMENT WAS DRAFTED BY:

      

      Attorney
        David J. Timm 

      Metzler,
        Timm, Treleven & Hermes, S.C. 

      222
        Cherry Street

      Green
        Bay, WI 54301-4223

      (920)
        435-9393

      

      [Signature
        Page to JJC/ISI Lease Agreement]

      
         

        
          J-12

          
            

          

        

        
          
          

        

      

       

      

        EXHIBIT
          K

        

        La
          Salle
          Subordination Agreement

        (specimen)

      

       

      
        
          
          

        

        
          K-1

          
            

          

        

        
          
          

        

      

       

      LASALLE
        BANK NATIONAL ASSOCIATION

      ISI
        CONTROLS, LTD.,

      A
        Texas limited partnership

      JEFFREY
        CORCORAN 

      AND
        

      JANELL
        CORCORAN

      
 

      SUBORDINATION
        AGREEMENT

      

      This
        SUBORDINATION
        AGREEMENT
        (this
“Agreement”) is entered into as of January 31, 2008, among ISI
        CONTROLS, LTD.,
        a Texas
        limited partnership (“Borrower”), JEFFREY
        CORCORAN AND JANELL CORCORAN
        (collectively referred to herein as “Subordinated Lender”) and LASALLE
        BANK NATIONAL ASSOCIATION,
        a
        national banking association (“Senior Lender”).

      

      RECITALS

      

      A.  ISI
        Security Group, Inc., a Delaware corporation, formerly known as ISI Detention
        Contracting Group, Inc., a Delaware Corporation (the parent corporation of
        Borrower and referred to herein as “ISI”) and Senior Lender have entered into an
        Amended and Restated Loan and Security Agreement dated January 23, 2008 (as
        the
        same hereafter may be amended, restated, supplemented or otherwise modified
        from
        time to time, the “Senior Loan Agreement”), subject to the terms and conditions
        of which the Senior Lender has agreed to make, and has made, loans and other
        financial accommodations to ISI.

      

      B.  Borrower
        has entered into an Amended and Restated Continuing Unconditional Guaranty
        with
        Senior Lender dated January 23, 2008, through which Borrower has provided
        Senior
        Lender with an unconditional, unlimited guaranty of all of the loans and
        other
        financial accommodations that have been granted and will be granted in the
        future by Senior Lender to ISI.

      

      C.  Borrower
        is indebted to Subordinated Lender pursuant to the terms and conditions of
        that
        certain Subordinated Promissory Note of even date herewith, in the original
        principal amount of $3,515,000.00, made by Borrower in favor of Subordinated
        Lender (as the same hereafter may be amended, restated, supplemented or
        otherwise modified from time to time, the “Subordinated Note”), which
        Subordinated Note has been issued pursuant to the terms of that certain Unit
        Purchase Agreement effective January 31, 2008 among ISI, the Subordinated
        Lender
        and certain other parties (as the same hereafter may be amended, restated,
        supplemented or otherwise modified from time to time the “Subordinated Unit
        Purchase Agreement”).

       

      
        
          
          

        

        
          K-2

          
            

          

        

        
          
          

        

      

       

      D.  One
        of
        the conditions precedent to Senior Lender’s obligations under the Senior Loan
        Agreement is that this Subordination Agreement shall have been executed and
        delivered.

      

      NOW
        THEREFORE,
        the
        parties hereto hereby agree as follows:

       

      SECTION
        1.

      RECITALS
        AND DEFINITIONS

      

      1.1
         Recitals.
        The
        Recitals set forth above are acknowledged by the parties hereto to be true
        and
        correct and are incorporated herein by this reference.

      

      1.2
         Definitions.
        All
        capitalized terms used but not elsewhere defined herein shall have the
        respective meanings ascribed to such terms in the Senior Loan Agreement.
        As used
        herein, the following terms shall have the following meanings:

      

      “Collateral”
shall
        mean all real or personal property described in all security agreements,
        pledge
        agreements, mortgages, deeds of trust, assignments, or other instruments
        now or
        hereafter executed by ISI, Borrower, or any other Obligor.

      

      “Impairment
        Default”
shall
        mean any of the Events of Default set forth at Sections 15.7, 15.8 or 15.12
        of
        the Senior Loan Agreement, or any Default or Event of Default caused by a
        fraudulent breach of a provision of the Senior Loan Agreement or any Other
        Agreement resulting in a material impairment of the Senior Lender’s
        Collateral.

      

      “Lien”
shall
        mean any mortgage, deed of trust, pledge, charge, encumbrance, security
        interest, collateral assignment or other lien or restriction of any kind,
        whether based on common law, constitutional provision, statute or
        contract.

      

      “Person”
shall
        mean any individual, sole proprietorship, partnership, joint venture, trust,
        unincorporated organization, association, corporation, limited liability
        company, institution, entity, party or foreign or United States government
        (whether federal, state, county, city, municipal or otherwise), including,
        without limitation, any instrumentality, division, agency, body or department
        thereof.

      

      “Proceeding”
shall
        mean any insolvency, bankruptcy, receivership, custodianship, liquidation,
        reorganization, assignment for the benefit of creditors or other proceeding
        for
        the liquidation, dissolution or other winding up of Borrower or its properties
        (including, without limitation, any such proceeding under the Bankruptcy
        Code).

      

      “Senior
        Collection Action”
shall
        mean any judicial or non-judicial proceeding initiated by Senior Lender to
        collect the Senior Indebtedness, to foreclose the Senior Liens or otherwise
        to
        enforce the rights of Senior Lender under the Senior Loan Agreement and the
        other Senior Instruments or applicable law with respect to the Senior
        Indebtedness.

       

      
        
          
          

        

        
          K-3

          
            

          

        

        
          
          

        

      

       

      “Senior
        Indebtedness”
shall
        mean all liabilities, indebtedness and obligations, regardless of the principal
        amount outstanding, owed to Senior Lender under the Senior Instruments, whether
        now due or hereafter arising, direct or indirect, absolute or contingent,
        joint
        and several or several, secured or unsecured, together with all accrued and
        unpaid interest thereon, including all interest which accrues during the
        pendency of any Proceeding, whether or not allowed in such Proceeding. The
        Senior Indebtedness shall specifically include the two new credit facilities
        recently approved by Lender for a $12,000,000.00 revolving credit line and
        a
        $4,250,000.00 acquisition line. 

       

      “Senior
        Instruments”
shall
        mean the Senior Loan Agreement, and all notes now or hereafter evidencing
        the
        Senior Indebtedness, all guaranties of the Senior Indebtedness, all documents
        and instruments securing the repayment of the Senior Indebtedness and all
        other
        documents or instruments executed and delivered to Senior Lender evidencing
        or
        pertaining to the Senior Indebtedness as any of the same may be modified,
        extended, supplemented, amended and/or restated from time to time.

       

      “Senior
        Liens”
shall
        mean all Liens granted to Senior Lender by ISI or by any Guarantor (including
        but not limited to Borrower) to secure the Senior Indebtedness.

      

      “Senior
        Payment Default”
shall
        mean a failure to pay when due, declared due, or properly demanded by Senior
        Lender, any of the Senior Indebtedness.

      

      “Subordinated
        Collection Action”
shall
        mean (i) any acceleration of the Subordinated Indebtedness, (ii) to file
        or
        initiate, or to join with other Persons in filing or initiating, a Proceeding
        against Borrower or (iii) any judicial proceeding or other action initiated
        or
        taken by Subordinated Lender, or by Subordinated Lender in concert with other
        Persons, against Borrower or any other Person who is liable for the repayment
        of
        the Senior Indebtedness to collect the Subordinated Indebtedness or otherwise
        to
        enforce the rights of Subordinated Lender under the Subordinated Instruments
        or
        applicable law with respect to the Subordinated Indebtedness against the
        Borrower or any Person who is liable for the repayment of the Senior
        Indebtedness. The term “Subordinated Collection Action” shall not include any
        legal proceeding or other Proceeding initiated by Subordinate Lender to enforce
        the terms of any guaranty of the Subordinated Indebtedness by Argyle Security
        Inc., a Delaware corporation.

      

      “Subordinated
        Default”
shall
        mean a default in the payment of the Subordinated Indebtedness or any other
        occurrence permitting Subordinated Lender to accelerate the payment of all
        or
        any portion of the Subordinated Indebtedness.

      

      “Subordinated
        Default Notice”
shall
        mean a written notice from Subordinated Lender to Borrower of the occurrence
        of
        a Subordinated Default. “Subordinated Indebtedness” shall mean all of the
        Indebtedness of Borrower to Subordinated Lender under the Subordinated
        Instruments and all other amounts now or hereafter owed by any Borrower to
        Subordinated Lender.

       

      
        
          
          

        

        
          K-4

          
            

          

        

        
          
          

        

      

       

      “Subordinated
        Indebtedness”
shall
        mean all of the Indebtedness of Borrower to Subordinated Lender under the
        Subordinated Instruments and all other amounts now or hereafter owed by any
        Borrower to Subordinated Lender.

      

      “Subordinated
        Instruments”
shall
        mean the Subordinated Note, the Unit Purchase Agreement, and all other documents
        and instruments executed and delivered by Borrower to Subordinated Lender
        evidencing or pertaining to the Subordinated Indebtedness.

      

      SECTION
        2.

      SUBORDINATION
        OF THE SUBORDINATED

      INDEBTEDNESS
        TO SENIOR INDEBTEDNESS

      

      2.1
         Debt
        Subordination.
        Upon
        the terms and conditions contained in this Agreement, the payment of any
        and all
        of the Subordinated Indebtedness hereby expressly is subordinated to the
        prior
        indefeasible payment in full in cash of the Senior Indebtedness. Subordinated
        Lender does hereby subordinate any and all liens and security interests,
        whether
        now existing or hereafter created and whether perfected or unperfected, in
        and
        to any of Borrower’s assets securing the Subordinated Indebtedness all of which
        are, and shall at all times remain junior and subordinate to any liens and
        security interests, whether now existing or hereafter created and whether
        perfected or unperfected, in favor of Senior Lender to secure any of the
        Senior
        Indebtedness. Notwithstanding the date, manner or order of perfection of
        the
        security interests and liens granted to the Senior Lender or Subordinated
        Lender, and notwithstanding any provisions of the Uniform Commercial Code
        of any
        state or any applicable law or decision or any provisions of the Subordinated
        Documents, and irrespective of whether the Senior Lender or the Subordinated
        Lender holds possession of all or any part of the Collateral, the Senior
        Lender
        and the Subordinated Lender hereby agree that the Senior Lender shall have
        a
        first and prior security interest in or lien upon all Collateral, whether
        real
        or personal and whether now owned or hereafter acquired, of the Borrower.
        The
        Subordinated Lender hereby agrees that it will not contest the validity,
        perfection, priority or enforceability of the Senior Lender’s liens and security
        interests in the Collateral. All proceeds of Collateral shall be first paid
        to
        the Senior Lender for application to the Senior Indebtedness until the Senior
        Indebtedness obligations are paid in full in cash and all commitments under
        the
        Senior Loan Agreement are terminated. Any payments on Collateral received
        by the
        Subordinated Lender shall be subject to the provisions of Section 2.5 of
        this
        Agreement. Subordinated Lender agrees not to acquire, by subrogation, contract
        or otherwise, any lien, security interest or other right, title or interest
        in
        any of the assets of Borrower (including, but not limited to, any which may
        arise with respect to taxes, assessments or other governmental charges) which
        is
        or may be prior in right to, or pari passu with, the liens and security
        interests held by Senior Lender.

       

      
        
          
          

        

        
          K-5

          
            

          

        

        
          
          

        

      

       

      2.2 Lien
        Subordination.
        Subordinated Lender does hereby subordinate any and all Liens, whether now
        existing or hereafter created and whether perfected or unperfected, in and
        to
        any assets securing the Subordinated Indebtedness all of which are, and shall
        at
        all times remain junior and subordinate to any Liens, whether now existing
        or
        hereafter created and whether perfected or unperfected, in favor of Senior
        Lender to secure any of the Senior Indebtedness. Notwithstanding the date,
        manner or order of perfection of the Liens granted to the Senior Lender or
        Subordinated Lender, and notwithstanding any provisions of the Uniform
        Commercial Code of any state or any applicable law or decision or any provisions
        of the Subordinated Instruments, and irrespective of whether the Senior Lender
        or the Subordinated Lender holds possession of all or any part of the
        Collateral, the Senior Lender and the Subordinated Lender hereby agree that
        the
        Senior Lender shall have a first and prior Lien upon all Collateral, whether
        real or personal and whether now owned or hereafter acquired, of ISI, Borrower,
        and all of their Subsidiaries. The Subordinated Lender hereby agrees that
        it
        will not contest the validity, perfection, priority or enforceability of
        the
        Senior Lender’s Liens in the Collateral. All proceeds of Collateral shall be
        first paid to the Senior Lender for application to the Senior Indebtedness
        until
        the Senior Indebtedness obligations are paid in full in cash and all commitments
        under the Senior Instruments are terminated. Any payments or Collateral received
        by the Subordinated Lender shall be subject to the provisions of Section
        2.5 of
        this Agreement. Subordinated Lender agrees not to acquire, by subrogation,
        contract or otherwise, any Lien, security interest or other right, title
        or
        interest in any of the assets of ISI or any of its Subsidiaries (including,
        but
        not limited to, any which may arise with respect to taxes, assessments or
        other
        governmental charges) which is or may be prior in right to, or pari passu
        with,
        the Liens held by Senior Lender.

      

      2.3
         Restrictions
        on Payments.
        Notwithstanding any provision of the Subordinated Instruments to the contrary
        and in addition to any other limitations set forth herein or therein, except
        as
        expressly permitted under this Section 2.3, no payment of principal, interest,
        fees or any other amount due with respect to the Subordinated Indebtedness
        shall
        be made, and Subordinated Lender shall not exercise any right of setoff or
        recoupment with respect to any Subordinated Indebtedness, until all of the
        Senior Indebtedness is paid in full in cash. Prior to the date the Senior
        Indebtedness is paid in full in cash, Borrower may only make and Subordinated
        Lender may only receive the payments described on Exhibit A to the Subordinated
        Indebtedness; provided, however, that Borrower will not be permitted to make
        and
        Subordinated Lender shall not accept such payments if, at the time of such
        payment there exists, (w) a Senior Payment Default, (x) an Impairment Default
        and with respect to such Impairment Default, Senior Lender has given
        Subordinated Lender written notice (an “Impairment Default Notice”) of the
        existence of an Impairment Default, (y) there exists any Event of Default
        other
        than a Senior Payment Default or an Impairment Default (collectively, a
“Non-Payment Default”) and with respect to such Event of Default Senior Lender
        has given to Subordinated Lender written notice (a “Default Notice”) of such
        Non-Payment Default; or (z) the payment would result in an Event of Default
        under the Senior Loan Agreement, including without limitation, a violation
        of
        any of the financial covenants contained therein. No payment shall be made or
        received during the period (the “Payment Blockage Period”) commencing on the
        date the date such payment is prohibited as provided above and ending on
        the
        date on which the Event of Default giving rise to the Payment Blockage Period
        is
        cured or waived by Senior Lender in writing. Following the expiration of
        any
        Payment Blockage Period, or the cure or waiver of any Senior Payment Default
        or
        Impairment Default, Borrower may pay and Subordinated Lender may receive
        any
        payments which were not made as a result of the foregoing so long as such
        payment would not result in an Event of Default under the Senior Loan
        Agreement.

      

      
        
          
          

        

        
          K-6

          
            

          

        

        
          
          

        

         

      

      2.4
         Proceedings.
        In the
        event of any Proceeding (a) all Senior Indebtedness first shall be paid in
        full
        in cash before any payment of or with respect to the Subordinated Indebtedness
        shall be made; (b) any payment which, but for the terms hereof, otherwise
        would
        be payable or deliverable in respect of the Subordinated Indebtedness shall
        be
        paid or delivered directly to Senior Lender (to be held and/or applied by
        Senior
        Lender in accordance with the terms of the Senior Loan Agreement) until all
        Senior Indebtedness is paid in full, and Subordinated Lender irrevocably
        authorizes, empowers and directs all receivers, trustees, liquidators,
        custodians, conservators and others having authority in the premises to effect
        all such payments and deliveries and further irrevocably authorizes and empowers
        Senior Lender to demand, sue for, collect and receive every such payment
        or
        distribution; (c) Subordinated Lender agrees to execute and deliver to Senior
        Lender or its representative all such further instruments requested by Senior
        Lender confirming the authorization referred to in the foregoing clause (b);
        (d)
        Subordinated Lender agrees (i) not to waive, discharge, release or compromise
        any claim of Subordinated Lender in respect of the Subordinated Indebtedness
        without the prior written consent of Senior Lender; and (ii) to take all
        actions
        as Senior Lender reasonably may request in order to enable Senior Lender
        to
        enforce all claims upon or in respect of the Subordinated Indebtedness; (e)
        Subordinated Lender expressly consents to the granting by Borrower to Senior
        Lender of first priority liens on Borrower’s property in connection with any
        financing provided by Senior Lender to Borrower after the commencement of
        such
        Proceeding; and (f) Subordinated Lender agrees to timely execute, verify,
        deliver and file any proofs of claim in respect of the Subordinated Indebtedness
        in connection with any such Proceeding and agrees to vote such proofs of
        claim
        in any such Proceeding in a manner which is consistent with the terms of
        this
        Agreement; provided, however, that Subordinated Lender will not vote in a
        manner
        which provides for less than full payment of the Senior Indebtedness or which
        is
        otherwise inconsistent with this Agreement.

      

      2.5
         Incorrect
        Payment.
        If any
        payment not permitted under this Agreement is received by Subordinated Lender
        on
        account of the Subordinated Indebtedness before all Senior Indebtedness is
        paid
        in full in cash, such payment shall be held in trust by Subordinated Lender
        for
        the benefit of Senior Lender and shall be paid over to Senior Lender, or
        its
        designated representative, for application (in accordance with the Senior
        Loan
        Agreement) to the payment of the Senior Indebtedness then remaining unpaid,
        until all of the Senior Indebtedness is paid in full in cash. Except for
        any
        payment made by Subordinated Lender to Senior Lender pursuant to this Section
        2.5, Subordinated Lender has no other payment obligation, duty or commitment
        with respect to the Senior Indebtedness.

      

      
        
          
          

        

        
          K-7

          
            

          

        

        
          
          

        

         

      

      2.6
         Sale,
        Transfer.
        Subordinated Lender shall not sell, assign, dispose of or otherwise transfer
        all
        or any portion of the Subordinated Indebtedness unless, prior to the
        consummation of any such action, the transferee thereof executes and delivers
        to
        Senior Lender an agreement substantially identical to this Agreement, providing
        for the continued subordination and forbearance of the Subordinated Indebtedness
        to the Senior Indebtedness as provided herein and for the continued
        effectiveness of all of the rights of Senior Lender arising under this
        Agreement. Notwithstanding the failure to execute or deliver any such agreement,
        the subordination effected hereby shall survive any sale, assignment,
        disposition or other transfer of all or any portion of the Subordinated
        Indebtedness, and the terms of this Agreement shall be binding upon the
        successors and assigns of Subordinated Lender, as provided in Section 10
        below.

      

      2.7
         Legends.
        Until
        the Senior Indebtedness is paid in full in cash, each of the Subordinated
        Instruments at all times shall contain in a conspicuous manner a legend stating
        substantially as follows:

      

      “The
        obligations evidenced hereby are subordinate in the manner and to the extent
        set
        forth in that certain Subordination Agreement (the “Subordination Agreement”)
        created as of January 31, 2008, among, without limitation, Jeffrey Corcoran
        and
        Janell Corcoran (“Subordinated Lender”), ISI Controls, Ltd., a Texas limited
        partnership and LaSalle Bank National Association, a national banking
        association (“Senior Lender”) to the obligations (including interest) owed by
        ISI Security Group, Inc., a Delaware corporation to the holders of all of
        the
        notes issued pursuant to that certain Amended and Restated Loan and Security
        Agreement dated as of January 23, 2008, between ISI Security Group, Inc.
        and
        Senior Lender, as such Agreement may be supplemented, modified, restated
        or
        amended from time to time; and each holder hereof, by its acceptance hereof,
        shall be bound by the provisions of the Subordination
        Agreement.”

      

      2.8
         Restriction
        on Action by Subordinated Lender.

      

      (A)
         Until
        the
        Senior Indebtedness is paid in full in cash and notwithstanding anything
        contained in the Subordinated Instruments or the Senior Loan Agreement to
        the
        contrary, Subordinated Lender shall not agree to any amendment or modification
        of, or supplement to, the Subordinated Instruments as in effect on the date
        hereof, the effect of which is to (i) increase the rate of interest on or
        fees
        payable in respect of the Subordinated Indebtedness, (ii) accelerate the
        date of
        any regularly scheduled interest or principal payment on the Subordinated
        Indebtedness, (iii) shorten the final maturity date of the Subordinated
        Indebtedness, (iv) increase the principal amount of the Subordinated
        Indebtedness or (v) make the covenants and events of default contained in
        the
        Subordinated Instruments materially more restrictive.

       

      
        
          
          

        

        
          K-8

          
            

          

        

        
          
          

        

      

       

      (B)
         Until
        the
        Senior Indebtedness is paid in full in cash, Subordinated Lender shall not
        take
        any Subordinated Collection Action during any Payment Blockage Period. If
        Subordinated Lender has commenced and is continuing to pursue any Subordinated
        Collection Action when a Payment Blockage Period is instituted, Subordinated
        Lender shall stay or cease any further Subordinated Collection Action until
        the
        Payment Blockage Period terminates. Subordinate Lender may pursue enforcement
        of
        the terms of any guaranty of the Subordinated Indebtedness by Argyle Security,
        Inc. even during a Payment Blockage Period.

      

      (C)
         Until
        the
        Senior Indebtedness is paid in full, in cash, the Subordinated Lender agrees
        and
        confirms that the Subordinated Lender shall not take any action, judicial
        or
        otherwise, to repossess, dispose of, foreclose, realize upon, or otherwise
        exercise any rights the Subordinated Lender may have with respect to any
        Collateral securing the Subordinated Indebtedness or otherwise enforce any
        Lien
        securing the Subordinated Indebtedness, or any other rights or remedies with
        respect to any Collateral securing the Subordinated Indebtedness.

      

      (D)
         Notwithstanding
        the provisions of the foregoing clause (B), (i) Subordinated Lender may
        participate in any Proceeding not initiated by or at the request of Subordinated
        Lender or any other Persons acting in concert with Subordinated Lender and
        (ii)
        in the event the Senior Indebtedness is accelerated, Subordinated Lender
        may
        accelerate the Subordinated Indebtedness. If Senior Lender subsequently rescinds
        such acceleration, then all Subordinated Collection Actions shall likewise
        be
        rescinded or terminated, without prejudice to the rights of Subordinated
        Lender.

      

      (E)
         The
        Subordinated Lender agrees that, notwithstanding anything to the contrary
        contained in the Subordinated Documents to which it is a party (including,
        without limitation, any so-called “integration” provisions contained therein),
        until the full and final payment in cash of the Senior Indebtedness, whether
        now
        or hereafter incurred or owed by the Borrower, nothing contained in the
        Subordinated Documents to which it is a party shall: (i) restrict or prohibit
        the Borrower or any Obligor from taking any action (including, without
        limitation, the incurrence of any lien or indebtedness, the making of any
        dividend, distribution, payment or investment, the sale, transfer or other
        disposition of any assets, or the consolidation or merger of any such Person)
        if
        such action is not so restricted or prohibited pursuant to the terms of the
        Senior Indebtedness; (ii) require the Borrower or any Obligor to take any
        action, cause the occurrence of any event, or cause to be obtained any condition
        or state of affairs if such action is not required to be taken, such event
        is
        not required to occur, or such condition or state of affairs is not required
        to
        be obtained pursuant to the terms of the Senior Indebtedness; (iii) prohibit
        or
        limit the existence of any condition or state of affairs or the occurrence
        of
        any event if such condition, state of affairs or event is not so prohibited
        or
        limited pursuant to the terms of the Senior Indebtedness; or (iv) result
        in any
        condition, event or state of affairs constituting a default or event of default
        under the Subordinated Indebtedness if such event or state of affairs does
        not
        constitute a default or Event of Default pursuant to the terms of the Senior
        Indebtedness. Subordinated Lender agrees that in the event Senior Lender
        forecloses or realizes upon or enforces any of its rights with respect to
        the
        collateral subject to Subordinated Indebtedness, or Borrower sells any such
        collateral or property in a transaction consented to by Senior Lender,
        Subordinated Lender shall, upon demand, execute such terminations, partial
        releases and other documents as Senior Lender requests in its reasonable
        discretion to release Subordinated Lender’s lien, if any, upon such
        property.

       

      
        
          
          

        

        
          K-9

          
            

          

        

        
          
          

        

      

       

      2.9
         Subrogation.
        Subject
        to the payment in full in cash of all Senior Indebtedness, Subordinated Lender
        shall be subrogated to the rights of Senior Lender to receive payments or
        distributions of assets of Borrower applicable to the Senior Indebtedness
        until
        the principal of, and interest and premium, if any, on, and all other amounts
        payable in respect of the Subordinated Indebtedness shall be paid in full.
        For
        purposes of such subrogation, no payment or distribution to Senior Lender
        under
        the provisions hereof to which Subordinated Lender would have been entitled
        but
        for the provisions of this Agreement, and no payment pursuant to the provisions
        of this Agreement to Senior Lender by Subordinated Lender, as among Borrower
        and
        its creditors other than Senior Lender, shall be deemed to be a payment by
        Borrower to or on account of the Senior Indebtedness.

      

      2.10
         Waivers.
        All of
        the Senior Indebtedness shall be deemed to have been made or incurred in
        reliance upon this Agreement. Subordinated Lender expressly waives all notice
        of
        the acceptance by Senior Lender of the subordination and other provisions
        of
        this Agreement and agrees that Senior Lender has made no warranties or
        representations with respect to the legality, validity, enforceability,
        collectability or perfection of the Senior Indebtedness or any liens or security
        interests held in connection therewith. Subordinated Lender waives any notice
        of
        advances under the Senior Indebtedness or the creation of new or additional
        indebtedness under the Senior Instruments, it being understood that Lender
        may
        make advances under the Senior Instruments without notice to or authorization
        of
        Subordinated Lender, in reliance upon the subordination provisions contained
        herein. The Subordinated Lender agrees that Senior Lender shall be entitled
        to
        manage and supervise its loans in accordance with applicable law and its
        usual
        practices, modified from time to time as it deems appropriate under the
        circumstances, without regard to the existence of any rights that Subordinated
        Lender may now or hereafter have in or to any assets. Senior Lender shall
        have
        no liability to Subordinated Lender as a result of any and all lawful actions,
        which do not violate any express provision of this Agreement, which Senior
        Lender takes or omits to take (including, without limitation, actions with
        respect to the creation, perfection or continuation of liens or security
        interests, actions with respect to the occurrence of any Default under the
        Senior Loan Agreement, actions with respect to the foreclosure upon, sale,
        release or failure to realize upon, any collateral, and actions with respect
        to
        the collection of any claim for all or any part of the Senior Indebtedness
        from
        any account debtor or any other party), regardless of whether any such actions
        or omissions may affect Senior Lender’s rights to a deficiency or Subordinated
        Lender’s rights of subrogation or reimbursement. Senior Lender may, from time to
        time, enter into agreements and settlements with Borrower as they may determine,
        including, without limitation, any substitution of collateral, any release
        of
        any lien or security interest and any release of Borrower. Subordinated Lender
        waives any and all rights it may have to require Senior Lender to marshal
        assets. Subordinated Lender agrees that in the event Senior Lender forecloses
        or
        realizes upon or enforces any of its rights with respect. to the collateral
        subject to Senior Liens, or Borrower sells any such collateral or property
        in a
        transaction consented to by Senior Lender, Subordinated Lender shall, upon
        demand, execute such terminations, partial releases and other documents as
        Senior Lender requests in its reasonable discretion to release Subordinated
        Lender’s lien, if any, upon such property. 

      

      
        
          
          

        

        
          K-10

          
            

          

        

        
          
          

        

      

      

      SECTION
        3.

      CONTINUED
        EFFECTIVENESS OF THIS AGREEMENT

      

      The
        terms
        of this Agreement, the subordination effected hereby, and the rights and
        the
        obligations of Subordinated Lender and Senior Lender arising hereunder, shall
        not be affected, modified or impaired in any manner or to any extent by (a)
        any
        amendment or modification of or supplement to the Senior Loan Agreement or
        any
        of the other Senior Instruments or any of the Subordinated Instruments, and
        Subordinated Lender hereby irrevocably consents to and waives any claim it
        may
        have as a result of any such amendment, modification or supplement of the
        Senior
        Loan Agreement or the other Senior Instruments; (b) the validity or
        enforceability of any of such documents; or (c) any exercise or non-exercise
        of
        any right, power or remedy under or in respect of the Senior Indebtedness
        or the
        Subordinated Indebtedness or any of the instruments or documents referred
        to in
        clause (a) above. The Senior Indebtedness shall continue to be treated as
        Senior
        Indebtedness and the provisions of this Agreement shall continue to govern
        the
        relative rights and priorities of the holders of Senior Indebtedness and
        Subordinated Lender even if all or part of the Senior Liens are subordinated,
        set aside, avoided or disallowed in connection with any Proceeding (or if
        all or
        part of the Senior Indebtedness is subordinated, set aside, avoided or
        disallowed in connection with any Proceeding as a result of the fraudulent
        conveyance or fraudulent transfer provisions under the Bankruptcy Code or
        under
        any state fraudulent conveyance or fraudulent transfer statute or if any
        interest accruing on the Senior Indebtedness following the commencement of
        such
        Proceeding is otherwise disallowed) and this Agreement shall be reinstated
        if at
        any time any payment of any of the Senior Indebtedness is rescinded or must
        otherwise be returned by any holder of Senior Indebtedness or any representative
        of such holder.

      

      SECTION
        4.

      REPRESENTATIONS
        AND WARRANTIES

      

      Subordinated
        Lender hereby represents and warrants to Senior Lender as follows:

      

      4.1
         Existence
        and Power.
        Subordinated Lender is duly organized, validly existing and in good standing
        under the laws of its state of organization and has all requisite power and
        authority to own its property and to carry on its business as now conducted
        and
        as proposed to be conducted.

      

      4.2
         Authority.
        Subordinated Lender has full power and authority to enter into, execute,
        deliver
        and carry out the terms of this Agreement and to incur the obligations provided
        for herein, all of which have been duly authorized by all proper and necessary
        action and are not prohibited by the organizational instruments of Subordinated
        Lender.

       

      
        
          
          

        

        
          K-11

          
            

          

        

        
          
          

        

      

       

      4.3
         Binding
        Agreements.
        This
        Agreement, when executed and delivered, will constitute the valid and legally
        binding obligation of Subordinated Lender enforceable in accordance with
        its
        terms, except as such enforceability may be limited by applicable bankruptcy,
        insolvency, reorganization, moratorium or similar laws affecting the enforcement
        of creditors’ rights generally and by equitable principles.

      

      4.4
         No
        Conflicts.
        Subordinated Lender is the current owner and holder of the Subordinated
        Indebtedness free and clear of any Liens. No provisions of any mortgage,
        indenture, contract, agreement, statute, rule, regulation, judgment, decree
        or
        order binding on Subordinated Lender or affecting the property of Subordinated
        Lender conflicts with, or requires any consent which has not already been
        obtained under, or would in any way prevent the execution, delivery or
        performance of the terms of this Agreement. No pending or, to the best of
        Subordinated Lender’s knowledge, threatened, litigation, arbitration or other
        proceedings if adversely determined would in any way prevent the performance
        by
        Subordinated Lender of the terms of this Agreement.

       

      SECTION
        5.

      CUMULATIVE
        RIGHTS, NO WAIVERS

      

      Each
        and
        every right, remedy and power granted to Senior Lender hereunder shall be
        cumulative and in addition to any other right, remedy or power specifically
        granted herein, in the Senior Loan Agreement and the other Senior Instruments
        or
        in the Subordinated instruments or now or hereafter existing in equity, at
        law,
        by virtue of statute or otherwise, and may be exercised by Senior Lender,
        from
        time to time, concurrently or independently and as often and in such order
        as
        Senior Lender may deem expedient. Any failure or delay on the part of Senior
        Lender in exercising any such right, remedy or power, or abandonment or
        discontinuance of steps to enforce the same, shall not operate as a waiver
        thereof or affect Senior Lender’s right thereafter to exercise the same, and any
        single or partial exercise of any such right, remedy or power shall not preclude
        any other or further exercise thereof or the exercise of any other right,
        remedy
        or power, and no such failure, delay, abandonment or single or partial exercise
        of Senior Lender’s rights hereunder shall be deemed to establish a custom or
        course of dealing or performance among the parties hereto.

       

      SECTION
        6.

      MODIFICATION

      

      Any
        modification, termination or waiver of any provision of this Agreement, or
        any
        consent to any departure by Subordinated Lender therefrom, shall not be
        effective in any event unless the same is in writing and signed by Senior
        Lender
        and Subordinated Lender and then such modification, termination, waiver or
        consent shall be effective only in the specific instance and for the specific
        purpose given. Any notice to or demand on Subordinated Lender in any event
        not
        specifically required of Senior Lender hereunder shall not entitle Subordinated
        Lender to any other or further notice or demand in the same, similar or other
        circumstances unless specifically required hereunder.

       

      
        
          
          

        

        
          K-12

          
            

          

        

        
          
          

        

      

       

      SECTION
        7.

      ADDITIONAL
        DOCUMENTS AND ACTIONS

      

      Subordinated
        Lender at any time, and from time to time, after the execution and delivery
        of
        this Agreement, upon the reasonable request of Senior Lender, promptly will
        execute and deliver such further documents and do such further acts and things
        as Senior Lender reasonably may request in order to affect fully the purposes
        of
        this Agreement.

       

      SECTION
        8.

      NOTICES

      

      All
        notices under this Agreement shall be in writing and shall be (a) delivered
        in
        person, (b) sent by telecopy or (c) mailed, postage prepaid, either by
        registered or certified mail, return receipt requested, or by overnight express
        courier, addressed as follows:

      

      
        	
                To
                  Borrower: 

              	
                ISI
                  Controls, Ltd.,

              
	 	
                A
                  Texas limited partnership

              
	 	
                12903
                  Delivery

              
	 	
                San
                  Antonio, TX 78247

              
	 	
                ATTN:
                  Samuel C. Youngblood

              
	 	 
	
                With
                  a copy to: 

              	
                K&L
                  Gates

              
	 	
                111
                  Congress Avenue

              
	 	
                Suite
                  900

              
	 	
                Austin,
                  TX 78701

              
	 	
                ATTN:
                  Hull Youngblood

              
	 	 
	
                To
                  Subordinated Lender: 

              	
                c/o
                  Corcoran Glass & Paint, Inc.

              
	 	
                N100
                  Craftsmen Drive

              
	 	
                Greenville,
                  WI 54942

              
	 	
                Facsimile:
                  (920) 757-9902

              
	 	
                Attn:
                  Jeffrey E. Corcoran

              
	 	 
	
                To
                  Senior Lender: 

              	
                LaSalle
                  Bank National Association

              
	 	
                Republic
                  Plaza

              
	 	
                370
                  17th Street, Suite 3590

              
	 	
                Denver,
                  CO 80202

              
	 	
                ATTN:
                  Nate Palmer

              

      

       

      
        
          
          

        

        
          K-13

          
            

          

        

        
          
          

        

      

       

      
        	 	 
	
                With
                  a copy to: 

              	
                Sherman
                  & Howard L.L.C.

              
	 	
                63317th
                  Street

              
	 	
                Suite
                  3000

              
	 	
                Denver,
                  CO 80203

              
	 	
                ATTN:
                  Alan M. Keeffe

              

      

      

      or
        to any
        other address or telecopy number, as to any of the parties hereto, as such
        party
        shall designate in a notice to the other parties hereto. All notices sent
        pursuant to the terms of this Section 8 shall be deemed received (a) if
        personally delivered, then on the Business Day of delivery, (b) if sent by
        telecopy, on the next Business Day, (c) if sent by registered or certified
        mail,
        on the earlier of the seventh (7th) Business Day following the day sent or
        when
        actually received or (d) if sent by overnight, express courier, on the second
        Business Day immediately following the day sent. Any notice by telecopy shall
        be
        followed by delivery of a copy of such notice on the next Business Day by
        overnight, express courier or by personal delivery.

       

      SECTION
        9.

      SEVERABILITY

      

      In
        the
        event that any provision of this Agreement is deemed to be invalid by reason
        of
        the operation of any law or by reason of the interpretation placed thereon
        by
        any court or governmental authority, the validity, legality and enforceability
        of the remaining terms and provisions of this Agreement shall not in any
        way be
        affected or impaired thereby, all of which shall remain in full force and
        effect; and the affected term or provision shall be modified to the minimum
        extent permitted by law so as to achieve most fully the intention of this
        agreement.

       

      SECTION
        10.

      SUCCESSORS
        AND ASSIGNS

      This
        Agreement shall be binding upon and inure to the benefit of the successors
        and
        assigns of Senior Lender, Borrower and Subordinated Lender.

       

      SECTION
        11.

      COUNTERPARTS

      

      This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed to be an original, but all of which taken together shall be one and
        the
        same instrument.

       

      
        
          
          

        

        
          K-14

          
            

          

        

        
          
          

        

      

      

      SECTION
        12.

      DEFINES
        RIGHTS OF CREDITORS

      

      The
        provisions of this Agreement are solely for the purpose of defining the relative
        rights of Subordinated Lender and Senior Lender and shall not be deemed to
        create any rights or priorities in favor of any other Person, including,
        without
        limitation, Borrower. This Agreement or any part hereof shall not be deemed
        the
        creation of a security interest for the benefit of any party hereto in the
        Subordinated Indebtedness.

      

      SECTION
        13.

      CONFLICT

      

      In
        the
        event of any conflict between any term, covenant or condition of this Agreement
        and any term, covenant or condition of any of the Subordinated Instruments,
        the
        Senior Loan Agreement or the other Senior Instruments, the provisions of
        this
        Agreement shall control and govern. For purposes of this Section 13, to the
        extent that any provisions of any of the Subordinated Instruments provide
        rights, remedies and benefits to Senior Lender that exceed the rights, remedies
        and benefits provided to Senior Lender under this Agreement, such provisions
        of
        the applicable Subordinated Instruments shall be deemed to supplement (and
        not
        to conflict with) the provisions hereof.

      

      SECTION
        14.

      STATEMENTS
        OF INDEBTEDNESS

      

      Upon
        demand by Senior Lender, Subordinated Lender will furnish to Senior Lender
        a
        statement of the indebtedness owing from Borrower to Subordinated Lender.
        Senior
        Lender may rely without further investigation upon such statements.

      

      SECTION
        15.

      HEADINGS

      

      The
        paragraph headings used in this Agreement are for convenience only and shall
        not
        affect the interpretation of any of the provisions hereof.

      

      SECTION
        16.

      TERMINATION

      

      This
        Agreement shall terminate upon the indefeasible payment in full in cash of
        the
        Senior Indebtedness. 

      

      
        
          
          

        

        
          K-15

          
            

          

        

        
          
          

        

      

      

      SECTION
        17.

      DEFAULT
        NOTICES

      

      Subordinated
        Lender shall provide Senior Lender with a copy of each Subordinated Default
        Notice concurrently with the sending thereof to Borrower and promptly shall
        notify Senior Lender in the event the Subordinated Default which is the subject
        of such Subordinated Default Notice is cured or waived.

      

      SECTION
        18.

      NO
        CONTEST OF LIENS

      

      Subordinated
        Lender agrees that it will not at any time contest the validity, perfection,
        priority or enforceability of the Liens in the Collateral granted to Senior
        Lender pursuant to the Senior Loan Agreement and the other Senior Instruments.
        Notwithstanding the date, manner or order of perfection of the security
        interests and liens granted to Senior Lender and Subordinated Lender, and
        notwithstanding any provisions of the Uniform Commercial Code, or any applicable
        law or decision or whether Senior Lender or Subordinated Lender holds possession
        of all or any part of the collateral security for the repayment of the Senior
        Indebtedness or the Subordinated Indebtedness, as between Senior Lender and
        Subordinated Lender, Senior Lender shall have a first (and prior in right
        and
        time to Subordinated Lender) interest in all the Collateral and proceeds
        thereof, including insurance proceeds relating thereto, and products thereof.
        The provisions of this Agreement shall apply regardless of any invalidity,
        unenforceability or lack of perfection of the Senior Liens.

      

      SECTION
        19.

      GOVERNING
        LAW

      

      THIS
        AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED AS TO VALIDITY,
        INTERPRETATION, CONSTRUCTION, EFFECT AND IN ALL OTHER RESPECTS BY THE LAWS
        AND
        DECISIONS OF THE STATE OF ILLINOIS. FOR PURPOSES OF THIS SECTION 19, THIS
        AGREEMENT SHALL BE DEEMED TO BE PERFORMED AND MADE IN THE STATE OF
        ILLINOIS.

      

      
        
          
          

        

        
          K-16

          
            

          

        

        
          
          

        

      

       

      SECTION
        20.

      JURISDICTION
        AND VENUE

      

      SUBORDINATED
        LENDER HEREBY AGREES THAT ALL ACTIONS OR PROCEEDINGS INITIATED BY SUBORDINATED
        LENDER AND ARISING DIRECTLY OR INDIRECTLY OUT OF THE SENIOR INSTRUMENTS SHALL
        BE
        LITIGATED IN EITHER THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS OR IN THE
        UNITED
        STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, OR IF SENIOR
        LENDER
        INITIATES SUCH ACTION, IN ADDITION TO THE FOREGOING COURTS, ANY COURT IN
        WHICH
        SENIOR LENDER SHALL INITIATE OR TO WHICH SENIOR LENDER SHALL REMOVE SUCH
        ACTION,
        TO THE EXTENT SUCH COURT HAS JURISDICTION. SUBORDINATED LENDER HEREBY EXPRESSLY
        SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING
        COMMENCED BY SENIOR LENDER IN OR REMOVED BY SENIOR LENDER TO ANY OF SUCH
        COURTS.
        SUBORDINATED LENDER WAIVES ANY CLAIM THAT EITHER THE CIRCUIT COURT OF COOK
        COUNTY, ILLINOIS OR THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT
        OF ILLINOIS IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF
        VENUE. TO THE EXTENT PROVIDED BY LAW, SHOULD SUBORDINATED LENDER, AFTER BEING
        SO
        SERVED, FAIL TO APPEAR OR ANSWER TO ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS
        SO
        SERVED WITHIN THE NUMBER OF DAYS PRESCRIBED BY LAW AFTER THE MAILING THEREOF,
        SUBORDINATED LENDER SHALL BE DEEMED IN DEFAULT AND AN ORDER AND/OR JUDGMENT
        MAY
        BE ENTERED BY THE COURT AGAINST SUBORDINATED LENDER AS DEMANDED OR PRAYED
        FOR IN
        SUCH SUMMONS, COMPLAINT, PROCESS OR PAPERS. THE EXCLUSIVE CHOICE. OF FORUM
        FOR
        SUBORDINATED LENDER SET FORTH IN THIS SECTION 20 SHALL NOT BE DEEMED TO PRECLUDE
        THE ENFORCEMENT BY SENIOR LENDER OF ANY JUDGMENT OBTAINED IN ANY OTHER FORUM
        OR
        THE TAKING BY SENIOR LENDER OF ANY ACTION TO ENFORCE THE SAME IN ANY OTHER
        APPROPRIATE JURISDICTION, AND SUBORDINATED LENDER HEREBY WAIVES THE RIGHT
        TO
        COLLATERALLY ATTACK ANY SUCH JUDGMENT OR ACTION.

      

      SECTION
        21.

      WAIVER
        OF RIGHT TO JURY TRIAL

      

      SENIOR
        LENDER AND SUBORDINATED LENDER ACKNOWLEDGE AND AGREE THAT ANY CONTROVERSY
        WHICH
        MAY ARISE UNDER THIS AGREEMENT WOULD BE BASED UPON DIFFICULT AND COMPLEX
        ISSUES
        AND THEREFORE, SENIOR LENDER AND SUBORDINATED LENDER AGREE THAT ANY COURT
        PROCEEDING ARISING OUT OF ANY SUCH CONTROVERSY WILL BE TRIED IN A COURT OF
        COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

      

      SECTION
        22.

      TIME
        OF ESSENCE

      

      Time
        for
        the performance of Subordinated Lender’s obligations under this Agreement is of
        the essence.

       

      
        
          
          

        

        
          K-17

          
            

          

        

        
          
          

        

         

      

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

      

      
        	
                BORROWER:

              
	 
	
                ISI
                  Controls, Ltd.

              
	
                By:
                  Metroplex Control Systems, Inc.

              
	
                Its:
                  Sole General Partner

              
	 	 
	 	 
	
                By:

              	  

	
                Name:
                  Sam Youngblood

              
	
                Title:
                  CEO

              
	 	 
	 	 
	 	 
	
                SUBORDINATED
                  LENDER:

              
	 	 
	 	 
	 	 
	 

	
                Jeffrey
                  E. Corcoran

              
	 	 
	 	 
	 	 
	 

	
                Janell
                  D. Corcoran

              
	 	 
	 	 
	 	 
	
                SENIOR
                  LENDER:

              
	 
	
                LASALLE
                  BANK NATIONAL ASSOCIATION,

              
	
                a
                  national banking association

              
	
                By:

              	 

	
                Name:

              	 

	
                Title:

              	 

      

       

       

       

      [Signature
        Page to Com-Tec Subordination Agreement]

       

      
        
          
          

        

        
          K-18ISI
      CONTROLS, LTD.

    (A
      TEXAS LIMITED PARTNERSHIP)

     

    SUBORDINATED
      PROMISSORY NOTE

    

    
      	
              $3,515,000.00

            	
              January
                31, 2008

            

    

     

    San
      Antonio, Texas

     

    FOR
      VALUE
      RECEIVED, ISI Controls, Ltd. (the “Maker”)
      promises to pay to JEFFREY
      E. CORCORAN and
      JANELL
      D. CORCORAN at
      N100
      Craftsmen Drive, Greenville, Wisconsin, 54942 (“Holder”),
      owners of all of issued and outstanding units of ownership of COM-TEC SECURITY,
      LLC (“COM-TEC”)
      in
      lawful money of the United States of America the principal sum of THREE MILLION
      FIVE HUNDRED FIFTEEN THOUSAND DOLLARS ($3,515,000.00), or such lesser amount
      as
      shall equal the outstanding principal amount hereof, together with interest
      from
      the date of this Note on the unpaid principal balance at a rate equal to 7.0%
      per annum, computed on the basis of the actual number of days elapsed and a
      year
      of 365 days. All unpaid principal, together with any then unpaid and accrued
      interest and other amounts payable hereunder, shall be due and payable on the
      earlier of (i) April 1, 2011 (the “Maturity
      Date”),
      or
      (ii) when, upon or after the occurrence of an Event of Default (as defined
      below), such amounts are declared due and payable by Holder or made
      automatically due and payable in accordance with the terms hereof. Until the
      Maturity Date, payments shall be due and payable in accordance with the Payment
      Schedule attached hereto as Schedule
      A.
      This
      Note is issued pursuant to the Unit Purchase Agreement effective January 31,
      2008 (as previously or hereafter amended, modified or supplemented, the
“Purchase
      Agreement”)
      between the Maker and COM-TEC, and is guaranteed by affiliates of the Maker
      pursuant to Guaranty Agreements of even date herewith. Notwithstanding anything
      to the contrary contained herein, the Note and all principal and accrued
      interest shall be due and payable on the Maturity Date. Unpaid principal and
      interest bear interest after maturity until paid (whether by acceleration or
      lapse of time) at the rate which would otherwise be applicable, plus five (5)
      percentage points.

     

    The
      following is a statement of the rights of Holder and the conditions to which
      this Note is subject, and to which Holder, by the acceptance of this Note,
      agrees: 

     

    1. Definitions.
      As used
      in this Note, the following capitalized terms have the following
      meanings:

     

    (a) “Maker”
      includes the limited partnership initially executing this Note and any Person
      which shall succeed to or assume the obligations of the Maker under this
      Note.

     

    (b) “Event
      of Default”
has
      the
      meaning given in Section 5
      hereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) “Holder”
shall
      mean the Person specified in the introductory paragraph of this Note or any
      Person who shall, at the time, be the registered holder of this
      Note.

     

    (d) “Purchase
      Agreement”
has
      the
      meaning given in the introductory paragraph hereof.

     

    (e) “Obligations”
shall
      mean and include all loans, advances, debts, liabilities and obligations,
      howsoever arising, owed by the Maker to Holder of every kind and description
      (whether or not evidenced by any note or instrument and whether or not for
      the
      payment of money), now existing or hereafter arising under or pursuant to the
      terms of this Note, including, all interest, fees, charges, expenses, attorneys’
fees and costs and accountants’ fees and costs chargeable to and payable by the
      Maker hereunder, in each case, whether direct or indirect, absolute or
      contingent, due or to become due, and whether or not arising after the
      commencement of a proceeding under Title 11 of the United States Code (11
      U.S.C. Section 101 et
      seq.),
      as
      amended from time to time (including post-petition interest) and whether or
      not
      allowed or allowable as a claim in any such proceeding.

     

    (f) “Person”
shall
      mean and include an individual, a partnership, a corporation (including a
      business trust), a joint stock Maker, a limited liability Maker, an
      unincorporated association, a joint venture or other entity or a governmental
      authority.

     

    (g) “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    (h)
      Senior
      Indebtedness”
means,
      all principal of (and premium, if any) and interest on all indebtedness of
      Maker, whether outstanding on the date of this Note or thereafter created,
      incurred or assumed, arising only under (i) that certain Amended and Restated
      Loan and Security Agreement by and between LaSalle Bank, NA, and ISI Security
      Group, Inc. dated as of January 23, 2008, as it has been and may be amended
      from
      time to time, and (ii) that certain Note and Warrant Purchase Agreement (the
      “Blair
      Indebtedness”)
      by and
      among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
      partnership, Maker, and affiliates of Maker party thereto dated as of October
      22, 2004, as it has been and may be amended from time to time (collectively,
      the
“Senior
      Indebtedness”).
      Senior
      Indebtedness shall include any such indebtedness or any notes or other evidence
      of indebtedness issued in exchange for such Senior Indebtedness, or any
      indebtedness arising from the satisfaction of such Senior Indebtedness by a
      guarantor. No other indebtedness of the Maker shall be considered Senior
      Indebtedness.

     

    (i)
      “Subsidiary”
shall
      mean (a) any corporation of which more than 50% of the issued and
      outstanding equity securities having ordinary voting power to elect a majority
      of the Board of Directors of such corporation is at the time directly or
      indirectly owned or controlled by the Maker, (b) any partnership, joint
      venture, or other association of which more than 50% of the equity interest
      having the power to vote, direct or control the management of such partnership,
      joint venture or other association is at the time directly or indirectly owned
      and controlled by the Maker, (c) any other entity included in the financial
      statements of the Maker on a consolidated basis.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    2. Interest.
      Accrued
      interest on this Note shall be payable in accordance with Schedule A until
      the
      outstanding principal amount hereof shall be paid in full. Any accrued but
      unpaid interest on this Note shall be payable at the time this Note is paid
      in
      full.

     

    3. Prepayment.
      Full or
      partial prepayment of this Note is permitted at any time without penalty. Unless
      otherwise agreed to by Lender at the time of payment, any payment shall be
      applied first against interest accrued to the date of such payment and then
      to
      principal. In the event of prepayment by Maker, such principal amounts being
      paid shall be applied to principal installments due under this Note in the
      inverse order in which they are due, and shall not defer any succeeding
      installments of principal or interest due hereunder. Maker agrees not to send
      Lender payments marked “paid in full,” “without recourse,” or similar language.
      If Maker sends such a payment, Lender may accept it without losing any of
      Lender’s rights under this Note, and Maker will remain obligated to pay any
      further amount owed to Lender.

     

    4. Subordination.
      The
      indebtedness evidenced by this Note is hereby expressly subordinated in right
      of
      payment to the prior payment in full of all of the Maker’s Senior Indebtedness,
      whether now or hereafter existing. Holder hereby agrees to execute and deliver
      such documents as may be reasonably requested from time to time by the Maker
      or
      a holder of any Senior Indebtedness, including customary forms of subordination
      agreement requested from time to time by a holder of Senior Indebtedness, in
      order to implement Section 4 hereof. The Maker may require that the Holder
      execute such documents as a condition to the Holder’s rights
      hereunder.

     

    5. Events
      of Default.
      Upon
      the occurrence of any one or more of the following events of
      default:

    A. Maker
      fails to pay any amount when due and such default remains uncured for a period
      of five (5) days after written or telephonic (promptly confirmed in writing)
      notice thereof has been given to Maker by Lender;

     

    B. Any
      representation or warranty made under this Note or in the Unit Purchase
      Agreement, or information provided by Maker to Lender in connection with this
      Note or the Unit Purchase Agreement is or was false or fraudulent in any
      material respect;

     

    C. A
      material adverse change occurs in Maker’s financial condition;

     

    D. Maker
      fails to timely observe or perform any of the non-monetary covenants or duties
      contained in this Note or the Unit Purchase Agreement, and such event shall
      remain uncured for a period of fourteen (14) days after written or telephonic
      (promptly confirmed in writing) notice thereof has been given to Maker by
      Lender;

     

    E. Maker
      fails to timely observe or perform any of the covenants or duties contained
      in
      the Lease Agreement, executed on even date herewith (the “Lease”) by and between
      Lender and Maker, which such default shall occur on or before the second
      anniversary of the Commencement Date, as defined in the Lease, and such default
      under the Lease
      shall remain uncured for a period fourteen (14) days after written or telephonic
      (promptly confirmed in writing) notice thereof has been given to Maker by
      Lender;

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    F. Any
      guaranty of Maker’s obligations under this Note is revoked or becomes
      unenforceable for any reason; or

     

    G. Maker
      or
      a surety or guarantor of this Note ceases to exist;

     

    H. An
      event
      of default occurs under any agreement securing this Note, and such event shall
      remain uncured for a period of fourteen (14) days after written or telephonic
      (promptly confirmed in writing) notice thereof has been given to Maker by
      Lender;

     

    then
      the
      unpaid balance and all accrued interest shall, at the option of Lender, without
      notice, mature and become immediately payable. The unpaid balance shall
      automatically mature and become immediately payable in the event any Maker,
      surety, endorser or guarantor becomes the subject of bankruptcy or other
      insolvency proceedings. Lender’s receipt of any payment on this Note after the
      occurrence of an event of default shall not constitute a waiver of the default
      or the Lender’s rights and remedies upon such default. 

     

    6. Rights
      of Holder upon Default.
      Upon
      the occurrence or existence of any Event of Default (other than an Event of
      Default described in Sections 5(b)
      or
5(c))
      and at
      any time thereafter during the continuance of such Event of Default, Holder
      may,
      by written notice to the Maker, declare all outstanding Obligations payable
      by
      the Maker hereunder to be immediately due and payable without presentment,
      demand, protest or any other notice of any kind, all of which are hereby
      expressly waived. Upon the occurrence or existence of any Event of Default
      described in Sections 5(b)
      and
5(c), immediately
      and without notice, all outstanding Obligations payable by the Maker hereunder
      shall automatically become immediately due and payable, without presentment,
      demand, protest or any other notice of any kind, all of which are hereby
      expressly waived. In addition to the foregoing remedies, upon the occurrence
      or
      existence of any Event of Default, Holder may exercise any other right power
      or
      remedy permitted to it by law, either by suit in equity or by action at law,
      or
      both, and shall be entitled to recover all costs, fees and expenses incurred
      as
      a result of such Event of Default, including but not limited to all reasonable
      attorneys fees.

     

    7. Successors
      and Assigns.
      Subject
      to the restrictions on transfer described in Sections 10
      and
11
      below,
      the rights and obligations of the Maker and Holder shall be binding upon and
      benefit the successors, assigns, heirs, administrators and transferees of the
      parties.

     

    8. Waiver
      and Amendment.
      Any
      provision of this Note may be amended, waived or modified upon the written
      consent of the Maker and Holder.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    9.
      Assignment.
      With
      respect to any offer, sale or other disposition of this Note Holder will give
      written notice to the Maker prior thereto, describing briefly the manner
      thereof, together with, a written opinion of Holder’s counsel, or other evidence
      reasonably satisfactory to the Maker, to the effect that such offer, sale or
      other distribution may be effected without registration or qualification (under
      any federal or state law then in effect). Upon receiving such written notice
      and
      reasonably satisfactory opinion, if so requested, or other reasonably
      satisfactory evidence, the Maker, as promptly as practicable, shall notify
      Holder that Holder may sell or otherwise dispose of this Note, in accordance
      with the terms of the notice delivered to the Maker. If a determination has
      been
      made pursuant to this Section 9
      that the
      opinion of counsel for Holder, or other evidence, is not reasonably satisfactory
      to the Maker, the Maker shall so notify Holder promptly after such determination
      has been made, stating with reasonable specificity the reason(s) for such
      determination. The Note shall bear the following legend (or a substantially
      similar legend) unless in the opinion of counsel for the Maker, such legend
      is
      not required in order to ensure compliance with the Securities Act:

    

    THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
      IT
      MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
      AN
      EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN
      OPINION OF COUNSEL SATISFACTORY TO THE MAKER THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    10. The
      Maker
      or Argyle may issue stop transfer instructions to its transfer agent in
      connection with such restrictions. Notwithstanding
      the forgoing, Holder (or any assignee of the Holder permitted pursuant to the
      Section 10) may, after the expiration of six months following the Closing Date
      of the Purchase Agreement, transfer or assign all or any portion of this Note,
      upon 5 days advance written notice to the Maker, to any of the following
      entities, without securing prior approval from the Maker: (i) the Maker; (ii)
      any affiliate of the Holder; or (iii) any Immediate Family Member of Holder's
      assignee. As used herein the term "Immediate Family Member" shall mean, with
      respect to a natural person, any spouse, sibling, or child of such natural
      person, and any trust, custodianship, guardianship, family limited partnership
      or similar entity created for the primary benefit of one or more of the forgoing
      individuals..

     

    11. Notices.
      All
      notices, requests, demands, consents, instructions or other communications
      required or permitted hereunder shall in writing and faxed, mailed or delivered
      to each party at the respective addresses of the parties as set forth below,
      or
      at such other address or facsimile number as shall have been furnished to the
      receiving party in writing. All such notices and communications will be deemed
      effectively given the earlier of (i) when received, (ii) when
      delivered personally, (iii) one business day after being delivered by
      facsimile or by email (with evidence of delivery or confirmation), (iv) one
      business day after being deposited with a reliable overnight courier service,
      or
      (v) four days after being deposited in the U.S. mail, first class with
      postage prepaid.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    
      	
              If
                to the Maker:

            	
              ISI
                Controls, Ltd.

            
	 	
              12903
                Delivery Drive

            
	 	
              San
                Antonio, TX 78247

            
	 	
              Attention:
                Sam Youngblood

            
	 	
              Facsimile:
                (210) 495-5613

            
	 	
              email:
                syoungblood@isidet.com

            
	 	 
	
              with
                a copy to:

            	
              K&L
                Gates

            
	 	
              111
                Congress Avenue, Suite 900

            
	 	
              Austin,
                Texas 78701

            
	 	
              Attention:
                D. Hull Youngblood, Jr.

            
	 	
              Facsimile:
                (512) 482-6859

            
	 	
              email:
                hull.youngblood@klgates.com

            
	 	 
	
              If
                to Holder:

            	
              c/o
                Corcoran Glass & Paint, Inc.

            
	 	
              N100
                Craftsmen Drive

            
	 	
              Greenville,
                WI 54942

            
	 	
              Attn:
                Jeffrey E. Corcoran

            
	 	
              Facsimile:
                (920) 757-9902

            
	 	 
	
              with
                a copy to:

            	
              Metzler,
                Timm, Treleven & Hermes, S.C.

            
	 	
              222
                Cherry Street

            
	 	
              Green
                Bay, WI 54301-4223

            
	 	
              Attn:
                David J. Timm

            
	 	
              Facsimile:
                (920)435-8866

            

    

     

    12. Usury.
      In the
      event any interest is paid on this Note which is deemed to be in excess of
      the
      then legal maximum rate, then that portion of the interest payment representing
      an amount in excess of the then legal maximum rate shall be deemed a payment
      of
      principal and applied against the principal of this Note.

     

    13. Waivers.
      The
      Maker hereby waives notice of default, presentment or demand for payment,
      protest or notice of nonpayment or dishonor and all other notices or demands
      relative to this instrument.

     

    14. Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the internal laws
      of
      the State of Wisconsin. Any proceeding brought herewith shall be brought in
      state or federal Court located in Brown County, Wisconsin, and all parties
      waive
      any objections to venue in Brown County, Wisconsin.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    15. Subordination
      Legends.

     

    The
      obligations evidenced hereby are subordinate in the manner and to the extent
      set
      forth in that certain Subordination Agreement (the “Subordination Agreement”)
      created as of January 31, 2008, among, without limitation, Jeffrey Corcoran
      and
      Janell Corcoran (“Subordinated Lender”), ISI Controls, Ltd., a Texas limited
      partnership and LaSalle Bank National Association, a national banking
      association (“Senior Lender”) to the obligations (including interest) owed by
      ISI Security Group, Inc., a Delaware corporation, to the holders of all of
      the
      notes issued pursuant to that certain Amended and Restated Loan and Security
      Agreement dated as of January 23, 2008, between ISI Security Group, Inc. and
      Senior Lender, as such Agreement may be supplemented, modified, restated or
      amended from time to time; and each holder hereof, by its acceptance hereof,
      shall be bound by the provisions of the Subordination
      Agreement.

     

    The
      obligations evidenced hereby are subordinate to the obligations (including
      interest) owed by Maker and affiliates of Maker to the holders of all of the
      notes issued pursuant to that certain Note and Warrant Purchase Agreement by
      and
      among William Blair Mezzanine Capital Fund III, L.P., a Delaware limited
      partnership, Maker and affiliates of Maker party thereto dated as of October
      22,
      2004, as such Agreement may be supplemented, modified, restated or amended
      from
      time to time.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    The
      Maker
      has caused this Note to be issued as of the date first written
      above.

    

    
      	
              MAKER:

            
	
              ISI
                Controls, Ltd.

            
	
              By:

            	
              Metroplex
                Control Systems, Inc.

            
	
              Its:
                

            	
              Sole
                General Partner

            
	 	 
	 	 
	
              By:

            	
              /s/
                Sam Youngblood

            
	
              Name:

            	
              Sam
                Youngblood

            
	
              Title:

            	
              CEO

            

    

    

    
      	
              AGREED
                AND ACCEPTED BY:

            
	 
	
              HOLDER:

            
	 
	
              /s/
                Jeffrey E. Corcoran

            
	
              Jeffrey
                E. Corcoran

            
	 
	
              /s/
                Janell D. Corcoran

            
	
              Janell
                D. Corcoran

            

    

    

    [Signature
      Page to Subordinated Promissory Note]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      A 

     

    Payment
      Schedule

     

    1.
      Interest only payments made for each three-month period beginning on May 1,
      2008, and August 1, 2008 as follows:

    

    
      	
              Due
                Date

            	 	
              Amount

            	 	
              Ending Prin Bal

            	 
	
              May
                1, 2008

            	 	
              $

            	
              59,995.75

            	 	
              $

            	
              3,515,000

            	 
	
              August
                1, 2008

            	 	
              $

            	
              62,018.08

            	 	
              $

            	
              3,515,000

            	 

    

     

    2.
      A
      single principal payment of One Hundred Thousand Dollars ($100,000.00) shall
      be
      due and payable on December 15, 2008; and

     

    3.
      Level
      principal and interest payments in the cumulative amount of $128,058.00 due
      monthly beginning on the 1st
      day of
      August 2008 and continuing monthly thereafter on the first day of each month
      for
      5 consecutive months, through December 1, 2008; then level principal and
      interest payments in the cumulative amount of $123,748 due monthly beginning
      on
      the 1st
      day of
      January 2009 and continuing monthly thereafter on the first day of each month
      through December 1, 2008, then for 25 consecutive months. The payment schedule
      for 30 consecutive months shall be as follows: 

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    
      	
              Due
                Date 

            	 	
              Beginning Balance
                

            	 	
              Interest
                

            	 	
              Payment
                

            	 	
              End Balance
                

            	 
	
              8-1-2008
                

            	 	
              $

            	
              3,515,000

            	 	
              $

            	
              20,504

            	 	
              $

            	
              128,058

            	 	
              $

            	
              3,407,446

            	 
	
              9-1-2008
                

            	 	 	
              3,407,446
                

            	 	 	
              19,877
                

            	 	 	
              128,058
                

            	 	 	
              3,299,265
                

            	 
	
              10-1-2008

            	 	 	
              3,299,265
                

            	 	 	
              19,246
                

            	 	 	
              128,058
                

            	 	 	
              3,190,452
                

            	 
	
              11-1-2008

            	 	 	
              3,190,452
                

            	 	 	
              18,611
                

            	 	 	
              128,058
                

            	 	 	
              3,081,005
                

            	 
	
              12-1-2008

            	 	 	
              3,081,005
                

            	 	 	
              17,973
                

            	 	 	
              128,058
                

            	 	 	
              2,970,919
                

            	 
	
              12-15-2008*

            	 	 	
              2,970,919
                

            	 	 	
              0
                

            	 	 	
              100,000
                

            	 	 	
              2,870,919
                

            	 
	
              1-1-2009
                

            	 	 	
              2,870,919
                

            	 	 	
              16,747
                

            	 	 	
              123,748
                

            	 	
              $

            	
              2,763,918

            	 
	
              2-1-2009
                

            	 	 	
              2,763,918
                

            	 	 	
              16,123
                

            	 	 	
              123,748
                

            	 	 	
              2,656,293
                

            	 
	
              3-1-2009
                

            	 	 	
              2,656,293
                

            	 	 	
              15,495
                

            	 	 	
              123,748
                

            	 	 	
              2,548,041
                

            	 
	
              4-1-2009
                

            	 	 	
              2,548,041
                

            	 	 	
              14,864
                

            	 	 	
              123,748
                

            	 	 	
              2,439,157
                

            	 
	
              5-1-2009
                

            	 	 	
              2,439,157
                

            	 	 	
              14,228
                

            	 	 	
              123,748
                

            	 	 	
              2,329,637
                

            	 
	
              6-1-2009
                

            	 	 	
              2,329,637
                

            	 	 	
              13,590
                

            	 	 	
              123,748
                

            	 	 	
              2,219,479
                

            	 
	
              7-1-2009
                

            	 	 	
              2,219,479
                

            	 	 	
              12,947
                

            	 	 	
              123,748
                

            	 	 	
              2,108,678
                

            	 
	
              8-1-2009
                

            	 	 	
              2,108,678
                

            	 	 	
              12,301
                

            	 	 	
              123,748
                

            	 	 	
              1,997,231
                

            	 
	
              9-1-2009
                

            	 	 	
              1,997,231
                

            	 	 	
              11,651
                

            	 	 	
              123,748
                

            	 	 	
              1,885,134
                

            	 
	
              10-1-2009

            	 	 	
              1,885,134
                

            	 	 	
              10,997
                

            	 	 	
              123,748
                

            	 	 	
              1,772,383
                

            	 
	
              11-1-2009

            	 	 	
              1,772,383
                

            	 	 	
              10,339
                

            	 	 	
              123,748
                

            	 	 	
              1,658,974
                

            	 
	
              12-1-2009

            	 	 	
              1,658,974
                

            	 	 	
              9,677
                

            	 	 	
              123,748
                

            	 	 	
              1,544,903
                

            	 
	
              1-1-2010
                

            	 	 	
              1,544,903
                

            	 	 	
              9,012
                

            	 	 	
              123,748
                

            	 	 	
              1,430,168
                

            	 
	
              2-1-2010
                

            	 	 	
              1,430,168
                

            	 	 	
              8,343
                

            	 	 	
              123,748
                

            	 	 	
              1,314,763
                

            	 
	
              3-1-2010
                

            	 	 	
              1,314,763
                

            	 	 	
              7,669
                

            	 	 	
              123,748
                

            	 	 	
              1,198,684
                

            	 
	
              4-1-2010
                

            	 	 	
              1,198,684
                

            	 	 	
              6,992
                

            	 	 	
              123,748
                

            	 	 	
              1,081,929
                

            	 
	
              5-1-2010
                

            	 	 	
              1,081,929
                

            	 	 	
              6,311
                

            	 	 	
              123,748
                

            	 	 	
              964,492
                

            	 
	
              6-1-2010
                

            	 	 	
              964,492
                

            	 	 	
              5,626
                

            	 	 	
              123,748
                

            	 	 	
              846,371
                

            	 
	
              7-1-2010
                

            	 	 	
              846,371
                

            	 	 	
              4,937
                

            	 	 	
              123,748
                

            	 	 	
              727,560
                

            	 
	
              8-1-2010
                

            	 	 	
              727,560
                

            	 	 	
              4,244
                

            	 	 	
              123,748
                

            	 	 	
              608,056
                

            	 
	
              9-1-2010
                

            	 	 	
              608,056
                

            	 	 	
              3,547
                

            	 	 	
              123,748
                

            	 	 	
              487,856
                

            	 
	
              10-1-2010

            	 	 	
              487,856
                

            	 	 	
              2,846
                

            	 	 	
              123,748
                

            	 	 	
              366,954
                

            	 
	
              11-1-2010

            	 	 	
              366,954
                

            	 	 	
              2,141
                

            	 	 	
              123,748
                

            	 	 	
              245,347
                

            	 
	
              12-1-2010

            	 	 	
              245,347
                

            	 	 	
              1,431
                

            	 	 	
              123,748
                

            	 	 	
              123,030
                

            	 
	
              1-1-2011
                

            	 	 	
              123,030
                

            	 	 	
              718
                

            	 	 	
              123,748
                

            	 	 	
              0
                

            	 

    

     

    1.
      *
      Special one-time payment of $100,000 toward principal

     

    The
      final
      payment has been adjusted to account for the remaining
      indebtedness.

     

    
      
        
        

      

      
        -3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]