| 1. | The Company and the Holder each agree that the Maturity Date shall be December 31,
2011 and that Schedule A to the Note remains unchanged. |
| 2. | Except as amended or revised by this Allonge, the terms of the Note remain in full
force and effect as of the date hereof. In the event the terms of the Note should conflict
with this Allonge, the terms of this Allonge shall control. |
| 3. | The Company hereby certifies, represents and warrants to the Holder that all
certifications, representations and warranties made by the Company to the Holder in or in
connection with this Allonge were true in all material respects as of the date of this
Allonge and are true in all material respects on and as of the date hereof as if made on
and as of the date hereof. |
| 4. | The obligations evidenced hereby are subordinate in the manner and to the extent set
forth in that certain Subordination Agreement, dated as of October 3, 2008 (the
Subordination Agreement) among, without limitation, the Holder, ISI Security Group, Inc.,
the Companys parent (the Parent), and the PrivateBank and Trust Company, to the
obligations (including interest) owed by the Parent to the holders of all of the notes
issued pursuant to that certain Loan and Security Agreement, dated as of October 3, 2008,
as has been amended (the Loan and Security Agreement), as such Agreement may hereafter 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. |
| 5. | This Allonge shall be governed by and construed in accordance with the laws of the
State of California. |
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| 6. | A facsimile copy of this Allonge shall be deemed an original for all purposes. |
| ISI DETENTION CONTRACTING GROUP, INC., a California corporation |
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| By: | /s/ Donald F. Neville | |||
| Name: | Donald F. Neville | |||
| Title: | CFO | |||
| ACCEPTED AND AGREED TO AS OF THE DATE FIRST WRITTEN ABOVE: PETERSON DETENTION, INC. |
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| By: | /s/ Michael Peterson | ||
| Name: | Michael Peterson | ||
| Title: | V.P. | ||