<SUBMISSION>
<ACCESSION-NUMBER>0000950123-09-071378
<TYPE>SC 13D/A
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20091217
<DATE-OF-FILING-DATE-CHANGE>20091216
<GROUP-MEMBERS>MEZZANINE MANAGEMENT FUND IV A, L.P.
<GROUP-MEMBERS>MEZZANINE MANAGEMENT FUND IV COINVEST A, L.P.
<GROUP-MEMBERS>MEZZANINE MANAGEMENT LIMITED
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>ARGYLE SECURITY, INC.
<CIK>0001332585
<ASSIGNED-SIC>7381
<IRS-NUMBER>203101079
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
<ACT>34
<FILE-NUMBER>005-81380
<FILM-NUMBER>091245936
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>12903 DELIVERY DRIVE
<CITY>SAN ANTONIO
<STATE>TX
<ZIP>78247
<PHONE>210-495-5245
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>12903 DELIVERY DRIVE
<CITY>SAN ANTONIO
<STATE>TX
<ZIP>78247
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>Argyle Security Acquisition CORP
<DATE-CHANGED>20050708
</FORMER-COMPANY>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>MEZZANINE MANAGEMENT LTD
<CIK>0001434284
<IRS-NUMBER>000000000
<STATE-OF-INCORPORATION>D0
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>CENTURY HOUSE, 16 PAR LA VILLE ROAD
<CITY>HAMILTON
<STATE>D0
<ZIP>HM 08
<PHONE>203.323.9118
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>C/O MEZZANINE MANAGEMENT, LLC
<STREET2>333 LUDLOW STREET, 2ND FL, NORTH TOWER
<CITY>STAMFORD
<STATE>CT
<ZIP>06902
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>c93758sc13dza.htm
<DESCRIPTION>SCHEDULE 13D AMENDMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>Schedule 13D Amendment</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid"> </DIV> <DIV style="font-size: 1pt; width: 100%; border-bottom: black 1pt solid"> </DIV> <P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>SCHEDULE 13D</B>


<P align="center" style="font-size: 12pt"><B>Under the Securities Exchange Act of 1934<BR>
(Amendment No.&nbsp;9)*</B>


<DIV align="center">
<DIV style="font-size: 24pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">Argyle Security, Inc.</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt">(Name of Issuer)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">Common Stock, par value $0.0001</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">(Title of Class of Securities)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">040311102</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">(CUSIP Number)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">Mezzanine Management Limited<BR>Century House<BR>16 Par la Ville Road<BR>Hamilton, Bermuda<BR>Attention: Arthur Morris<BR>(441) 296-8099<BR></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt">(Name, Address and Telephone Number of Person Authorized to<BR>
Receive Notices and Communications)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">December 14, 2009</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">(Date of Event Which Requires Filing of this Statement)
</DIV>

<P align="left" style="font-size: 10pt">If the filing person has previously filed a statement on Schedule&nbsp;13G to report the acquisition that is the subject of this Schedule&nbsp;13D, and is filing this schedule because of &#167;&#167;240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. <FONT face="wingdings" size="2">&#111;</FONT>

<P align="left" style="font-size: 10pt"><B>Note: </B>Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

<P align="left" style="font-size: 10pt">* The remainder of this cover page shall be filled out for a reporting person&#146;s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

<P align="left" style="font-size: 10pt">The information required on the remainder of this cover page shall not be deemed to be &#147;filed&#148; for the purpose of Section 18 of the Securities Exchange Act of 1934 (&#147;Act&#148;) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt">
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">CUSIP No.</DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000">040311102&nbsp;</DIV></TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAMES OF REPORTING PERSONS<BR>
<BR>
Mezzanine Management Fund IV A, L.P.</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#254;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">United Kingdom
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>5,300,100</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">5,300,100</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">5,300,100 shares of common stock</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">48.7&#37;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>


<P align="center" style="font-size: 10pt">

Page 2 of 7 Pages

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">CUSIP No.</DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000">040311102&nbsp;</DIV></TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAMES OF REPORTING PERSONS<BR>
<BR>
Mezzanine Management Fund IV Coinvest A, L.P.</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#254;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">United Kingdom
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>69,700</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">69,700</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">69,700 shares of common stock</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">0.6&#37;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>


<P align="center" style="font-size: 10pt">

Page 3 of 7 Pages

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">CUSIP No.</DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000">040311102&nbsp;</DIV></TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAMES OF REPORTING PERSONS<BR>
<BR>
Mezzanine Management Limited </TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#254;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">Bermuda
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>5,369,800</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">5,369,800</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">5,369,800 shares of common stock</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">49.4&#37;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">
</DIV>


<P align="center" style="font-size: 10pt">

Page 4 of 7 Pages

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">CUSIP No.</DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000">040311102&nbsp;</DIV></TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>Amendment No.&nbsp;9 to Schedule&nbsp;13D</U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This Amendment No.&nbsp;9 to Schedule&nbsp;13D (this &#147;Ninth Amendment&#148;) amends and supplements the Schedule
13D originally filed on May&nbsp;5, 2008, as amended by Amendment No.&nbsp;1 filed on January&nbsp;15, 2009,
Amendment No.&nbsp;2 filed on May&nbsp;20, 2009, Amendment No.&nbsp;3 filed on June&nbsp;2, 2009, Amendment No.&nbsp;4 filed
on June&nbsp;5, 2009, Amendment No.&nbsp;5 filed on June&nbsp;11, 2009, Amendment No.&nbsp;6 filed on June&nbsp;16, 2009,
Amendment No.&nbsp;7 filed on August&nbsp;5, 2009 and Amendment No.&nbsp;8 filed on October&nbsp;1, 2009 (together, the
&#147;Schedule&nbsp;13D&#148;), and relates to the common stock, par value $0.0001 (the &#147;Common Stock&#148;), of Argyle
Security, Inc., a Delaware corporation (the &#147;Issuer&#148;). This Ninth Amendment is being filed by and
on behalf of Mezzanine Management Fund IV A, L.P., a limited partnership organized under the laws
of the United Kingdom (&#147;Fund IV&#148;), Mezzanine Management Fund IV Coinvest A, L.P., a limited
partnership organized under the laws of the United Kingdom (&#147;Fund IV Coinvest&#148;), and Mezzanine
Management Limited, a limited partnership organized under the laws of Bermuda (&#147;Mezzanine&#148;). Fund
IV, Fund IV Coinvest, and Mezzanine are collectively referred to herein as the &#147;Reporting Persons.&#148;
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;4.</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Purpose of the Transaction.</B></DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Paragraphs (a), (d)&nbsp;and (j)&nbsp;of Item&nbsp;4 of the Schedule&nbsp;13D are hereby amended and supplemented, with
effect from the date of this Ninth Amendment, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On December&nbsp;14, 2009, the Issuer, in exchange for cash, issued to each of Fund IV and Fund IV
Coinvest convertible bridge notes (the &#147;MML Bridge Notes&#148;) in an aggregate principal amount of $8.0
million and convertible subordinated promissory notes in the aggregate principal amount of $2.45
million (the &#147;MML Convertible Notes&#148;), with each of these notes bearing interest at 10% per annum.
On each interest payment date, accrued but unpaid interest on the MML Bridge Notes is capitalized
and added to the principal balance thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Under the MML Bridge Notes, the Issuer has agreed to use its commercially reasonable efforts to
complete a rights offering of Common Stock to its existing common stockholders as promptly as
reasonably practicable. The proceeds from such rights offering received from stockholders, other
than Fund IV and Fund IV Coinvest, will be used to repay the MML Bridge Notes. Any portion of the
MML Bridge Notes not repaid or otherwise used by Fund IV or Fund IV Coinvest to subscribe for
shares of Common Stock in such rights offering (or other Issuer equity offering for cash) will
automatically be converted into such Common Stock as of the earlier of (1)&nbsp;the closing of the
rights offering (or such other Issuer equity offering) or (2)&nbsp;June&nbsp;30, 2010, at a price per share
equal to (A)&nbsp;the price per share offered in the rights offering (or such other Issuer equity
offering) or (B)&nbsp;if no rights offering (or other Issuer equity offering) is consummated by June&nbsp;30,
2010, $0.4302, which reflects the volume weighted average sale price for the Common Stock from
trades quoted on the OTC Bulletin Board for the ten days ending on the day prior to the issuance of
the MML Bridge Notes (the &#147;VWAP Price&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The MML Convertible Notes are convertible into shares of Common Stock, at the option of Fund IV and
Fund IV Coinvest, at a price equal to (1)&nbsp;the price per share offered in the rights offering (or
such other Issuer equity offering) if consummated on or prior to June&nbsp;30, 2010, or (2)&nbsp;the VWAP
Price if no such rights offering (or such other Issuer equity offering) is consummated by June&nbsp;30, 2010.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 5 of 7 Pages<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">CUSIP No.</DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000"> 040311102&nbsp;</DIV></TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The provisions of the Issuer&#146;s outstanding preferred stock currently provide for customary weighted average
anti-dilution protections based on the issuance of new securities at a price per share lower than (i)&nbsp;in the case of
the Issuer&#146;s outstanding Series&nbsp;A Convertible Preferred Stock (the &#147;Series&nbsp;A Stock&#148;), the then fair market value of the
Common Stock and (ii)&nbsp;in the case of the Issuer&#146;s outstanding Series&nbsp;B Convertible Preferred Stock (the &#147;Series&nbsp;B
Stock&#148;), the greater of (A)&nbsp;the conversion price (currently $1.10 per share) or (B)&nbsp;the then fair market value of the
Common Stock. The Issuer has obtained from the Reporting Persons, as the holder of all of the Issuer&#146;s outstanding
Series&nbsp;A Stock and Series&nbsp;B Stock, a waiver of any anti-dilution protections that may be triggered as a result of the
original issuance of the MML Bridge Notes, the MML Convertible Notes and the Subordinated Interest Note (as defined
below) (collectively, the &#147;New Securities&#148;) on December&nbsp;14, 2009. For purposes of this Ninth Amendment, &#147;Subordinated
Interest Note&#148; means that certain convertible subordinated promissory note dated December&nbsp;14, 2009, issued by ISI
Security Group, Inc., a subsidiary of the Issuer (&#147;ISI&#148;), in favor of ISI&#146;s primary subordinated lender in the
aggregate principal amount of approximately $897,000, which promissory note is convertible into Common Stock in
generally the same manner as the MML Bridge Notes. Notwithstanding the foregoing, upon the ability of the holders of
the New Securities to convert them into Common Stock, the anti-dilution protection provided to the holders of each of
the Series&nbsp;A Stock and the Series&nbsp;B Stock will apply in full force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In addition, the Reporting Persons, as the holders of all of the Issuer&#146;s outstanding Series&nbsp;A Stock and the
Series&nbsp;B Stock, provided a waiver to the Issuer of the change of control liquidation event provided for under the terms
of the Series&nbsp;A Stock and the Series&nbsp;B Stock to the extent the Reporting Persons (or their affiliates) may obtain such
control as a result of the consummation of an equity offering by the Issuer on or prior to June&nbsp;29, 2010, issuance or
conversion of the New Securities, or the ability of the holders to convert the New Securities into Common Stock.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The foregoing description of the MML Bridge Notes and the MML Convertible Notes are qualified in
their entirety by the actual terms of the form of MML Bridge Notes and MML Convertible Notes filed
herewith as Exhibits B and C.
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;6.</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.</B></DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Item&nbsp;6 of the Schedule&nbsp;13D is hereby amended and supplemented, with effect from the date of this
Ninth Amendment, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">See the discussion of the MML Bridge Notes and the MML Convertible Notes in Item&nbsp;4 above.
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;7.</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Material to be Filed as Exhibits.</B></DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Item&nbsp;7 of the Schedule&nbsp;13D is hereby amended and supplemented, with effect from the date of this
Ninth Amendment, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Exhibit&nbsp;A</U> &#151; Joint Filing Agreement for the Ninth Amendment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Exhibit&nbsp;B</U> &#151; Form of 10% Convertible Subordinated Bridge Promissory Note from the Issuer,
as debtor.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Exhibit&nbsp;C</U> &#151; Form of 10% Convertible Subordinated Promissory Note from the Issuer, as
debtor.
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 6 of 7 Pages<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURE</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Date: December&nbsp;16, 2009
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT FUND IV A, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Christopher C. Morris</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Christopher C. Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT FUND IV COINVEST A, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Christopher C. Morris</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Christopher C. Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT LIMITED<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Christopher C. Morris</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Christopher C. Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 7 of 7 Pages<!-- /Folio -->

</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A
<SEQUENCE>2
<FILENAME>c93758exv99wa.htm
<DESCRIPTION>EXHIBIT A
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>EXHIBIT A</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt">JOINT FILING AGREEMENT

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The undersigned agree that this Ninth Amendment dated December&nbsp;16, 2009, relating to Argyle
Security, Inc., shall be filed on behalf of the undersigned.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT FUND IV A, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Christopher C. Morris</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Christopher C. Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT FUND IV COINVEST A, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Christopher C. Morris</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Christopher C. Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT LIMITED<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Christopher C. Morris</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Christopher C. Morris&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.B
<SEQUENCE>3
<FILENAME>c93758exv99wb.htm
<DESCRIPTION>EXHIBIT B
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit B</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;B</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">THIS NOTE (AS DEFINED BELOW) AND THE SHARES OF COMMON STOCK (AS DEFINED BELOW) ISSUABLE UPON THE
CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
&#147;<U>SECURITIES ACT</U>&#148;). THE SHARES OF COMMON STOCK MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THE
SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO DEBTOR (AS DEFINED
BELOW) THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SUCH COMMON STOCK IS SOLD PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">THIS NOTE IS SUBORDINATED TO THE SENIOR INDEBTEDNESS (AS DEFINED BELOW) IN THE MANNER AND TO THE
EXTENT SET FORTH IN <U>SECTION 12</U> OF THIS NOTE.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>10% CONVERTIBLE SUBORDINATED BRIDGE PROMISSORY NOTE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>

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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">$<B>&#091;_____________&#093;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">December&nbsp;14, 2009</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">FOR VALUE RECEIVED, the undersigned, ARGYLE SECURITY, INC., a Delaware corporation
(&#147;<U>Debtor</U>&#148;), promises to pay to the order of MEZZANINE MANAGEMENT FUND IV <B>&#091;COINVEST&#093; </B>A, LP,
a limited partnership organized under the laws of the United Kingdom, its successors and assigns
(&#147;<U>Purchaser</U>&#148;), the principal sum of
<B>&#091;_____________________&#093; </B>and
<B>&#091;__&#093;</B>/100 Dollars
($<B>&#091;_____________&#093;</B>), in lawful currency of the United States of America, together with interest
accrued thereon (this &#147;<U>Note</U>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1.&nbsp;<U>Defined Terms</U>. As used in this Note, the following terms have the meanings set
forth below.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) &#147;<U>Affiliate</U>&#148; of any particular Person means any other Person controlling,
controlled by or under common control with such particular Person, where &#147;<U>control</U>&#148;
means the possession, directly or indirectly, of the power to direct the management and
policies of a Person whether through the ownership of voting securities, contract or
otherwise.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) &#147;<U>Blair Mezz</U>&#148; means William Blair Mezzanine Capital Fund III, L.P., a
Delaware limited partnership.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) &#147;<U>Blair Mezz Guaranty</U>&#148; means Debtor&#146;s guaranty of ISI&#146;s Indebtedness under
the Senior Note and Warrant Purchase Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) &#147;<U>Board of Directors</U>&#148; means the board of directors of Debtor as elected from
time to time or any duly authorized committee of that board.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) &#147;<U>Business Day</U>&#148; means every day other than a Saturday, Sunday or other day
on which commercial banks are authorized to close under the laws of, or are in fact closed
in, the State of Texas.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) &#147;<U>Change of Control</U>&#148; means (i)&nbsp;any merger, consolidation, sale or other
transaction or event (other than a Qualified Equity Offering) by virtue of which any Person
or group (within the meaning of Section&nbsp;13(d)(3) of the Exchange Act) of Persons, as the
case may be, other than Purchaser and its Affiliates, acquires, directly or indirectly
(including by means of a merger or other business combination), beneficial ownership (as
defined in Rule&nbsp;13d-3 promulgated under the Exchange Act) of thirty-five percent or more of
Common Stock or other equity interests of Debtor having general voting rights that would
enable such Person or group to elect a majority of the Board of Directors, (ii)&nbsp;the sale of
all or substantially all of the assets of Debtor or of Debtor and its Subsidiaries, taken as
a whole or (iii)&nbsp;the sale, transfer or other distribution of any of the capital stock of ISI
by Debtor (other than a pledge of such capital stock to PrivateBank to secure ISI&#146;s
Indebtedness under the Senior Loan Agreement).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) &#147;<U>COC Conversion Amount</U>&#148; has the meaning set forth in <U>Section&nbsp;6(c)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h) &#147;<U>Common Stock</U>&#148; means the common stock, par value $0.0001 per share, of
Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(i) &#147;<U>Conversion Date</U>&#148; has the meaning set forth in <U>Section&nbsp;6(d)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(j) &#147;<U>Conversion Shares</U>&#148; has the meaning set forth in <U>Section&nbsp;9(b)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(k) &#147;<U>Corcoran Notes</U>&#148; means the subordinated promissory note dated January&nbsp;31,
2008, issued by ISI Controls, Ltd., a Texas limited partnership and Subsidiary of Debtor, in
the original principal amount of $3,515,000 in favor of Jeffery E. Corcoran and Janell D.
Corcoran.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(l) &#147;<U>Corcoran Notes Guaranty</U>&#148; means Debtor&#146;s guaranty of the Corcoran Notes.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(m) &#147;<U>Debtor Relief Laws</U>&#148; means Title 11 of the United States Code and all other
applicable liquidation, conservatorship, bankruptcy, fraudulent transfer, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
suspension of payments, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(n) &#147;<U>DI Promissory Note</U>&#148; shall mean that certain Senior Subordinated (DI)
Promissory Note dated as of December&nbsp;14, 2009, in the original principal amount of Eight
Hundred Ninety-Seven Thousand Two Hundred Fifteen and 18/100 Dollars ($897,215.18), made
payable by ISI in favor of the Blair Mezz, as may be amended, restated, substituted,
replaced or otherwise modified from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(o) &#147;<U>Exchange Act</U>&#148; means the Securities Exchange Act of 1934, as amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(p) &#147;<U>Event of Default</U>&#148; has the meaning set forth in <U>Section&nbsp;13</U>.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(q) &#147;<U>GAAP</U>&#148; means generally accepted accounting principles in the United States
set forth in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board, consistently applied and as in effect from time to
time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(r) &#147;<U>Governmental Authority</U>&#148; means any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of, or
pertaining to, government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(s) &#147;<U>Indebtedness</U>&#148; means, relative to any Person, without duplication:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;all obligations of such Person for borrowed money and all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;all obligations, contingent or otherwise, relative to the face amount of
all letters of credit (or reimbursement agreements in respect thereof), whether or
not drawn, and banker&#146;s acceptances issued for the account of such Person;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;all obligations of such Person as lessee under leases which have been or
should be, in accordance with GAAP, recorded as capitalized lease liabilities; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;whether or not so included as liabilities in accordance with GAAP, all
obligations of such Person to pay the deferred purchase price of property or
services, and indebtedness (excluding, however, prepaid interest thereon) secured by
a Lien on property owned or being purchased by such Person (including indebtedness
arising under conditional sales or other title retention agreements), whether or not
such indebtedness shall have been assumed by such Person or is limited in recourse.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(t) &#147;<U>Interest Payment Date</U>&#148; has the meaning set forth in <U>Section&nbsp;3(c)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(u) &#147;<U>ISI</U>&#148; means ISI Security Group, Inc., a Delaware corporation and wholly
owned Subsidiary of Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v) &#147;<U>ISI Detention</U>&#148; means ISI Detention Contracting Group, Inc., a California
corporation and Subsidiary of Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(w) &#147;<U>Issuance Date</U>&#148; means December&nbsp;14, 2009.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(x) &#147;<U>Issuance Date Conversion Price</U>&#148; means $0.4302, representing the volume
weighted average sales price per share of Common Stock for trades quoted on the OTC Bulletin
Board (&#147;<U>VWAP</U>&#148;) for the ten trading days ending on the trading day immediately prior
to the Issuance Date. For purposes of this calculation, any trading day
during such ten day trading period for which no trades occur shall be deemed to have a
VWAP for that day equal to the VWAP of the nearest immediately preceding trading day on
which a trade occurred.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(y) &#147;<U>Laws</U>&#148; means, collectively, all international, foreign, federal, state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders,
requests, licenses, authorizations and permits of, and agreements with, any Governmental
Authority (whether or not such orders, requests, licenses, authorizations, permits or
agreements have the force of law).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(z) &#147;<U>Lien</U>&#148; means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title retention
agreement, any easement, right of way or other encumbrance on title to real property, and
any financing lease having substantially the same economic effect as any of the foregoing).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(aa) &#147;<U>Maturity Date</U>&#148; means June&nbsp;30, 2010, subject to the conversion rights and
obligations set forth in <U>Section&nbsp;6</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(bb) &#147;<U>Maturity Date Converted Amount</U>&#148; has the meaning set forth in <U>Section
6(b)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(cc) &#147;<U>MML Bridge Notes</U>&#148; means this Note together with the 10% Convertible
Subordinated Bridge Promissory Note dated as of the Issuance Date issued by Debtor in favor
of Mezzanine Management Fund IV <B>&#091;Coinvest&#093; </B>A, LP, a limited partnership organized under the
laws of the United Kingdom, in the original principal amount of
$&#091;_______________&#093;.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(dd) &#147;<U>MML Convertible Notes</U>&#148; means the 10% Convertible Subordinated Promissory
Notes dated as of the Issuance Date, issued by Debtor in favor of the Purchaser and
Mezzanine Management Fund IV <B>&#091;Coinvest&#093; </B>A, LP, a limited partnership organized under the
laws of the United Kingdom in the aggregate principal amount of $2,450,000.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ee) &#147;<U>Net Cash Proceeds</U>&#148; means the net cash proceeds of any Qualified Equity
Offering to the extent such proceeds are received from (i)&nbsp;in the case of the Rights
Offering, stockholders of Debtor other than the Purchasers, and (ii)&nbsp;in the case of any
other private or public placement of capital stock of Debtor, investors other than the
Purchasers.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ff) &#147;<U>Note</U>&#148; has the meaning set forth in the preamble.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(gg) &#147;<U>OTC Bulletin Board</U>&#148; means the electronic quotation medium for subscribing
members, regulated by the Financial Industry Regulatory Authority, Inc. (FINRA), that
displays real-time quotes, last-sale prices, and volume information for over-the-counter
(OTC)&nbsp;domestic and certain foreign securities that are not listed on a national securities
exchange.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(hh) &#147;<U>Person</U>&#148; means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or political
subdivision thereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii) &#147;<U>PDI Notes</U>&#148; means collectively, the two Guaranteed Convertible Promissory
Notes dated as of January&nbsp;2, 2008, issued by ISI Detention, each in the original principal
amount of $1,500,000, and one payable to the order Mike Peterson and the other payable to
the order of Leonard Peterson, together the assignees of LAMSP, Corp., a California
corporation formerly known as Peterson Detention, Inc., a California corporation, as
amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(jj) &#147;<U>PDI Notes Guaranty</U>&#148; means Debtor&#146;s guaranty of the PDI Notes.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(kk) &#147;<U>PIK Interest</U>&#148; has the meaning set forth in <U>Section&nbsp;3(c)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ll) &#147;<U>Post-QEO Converted Amount</U>&#148; has the meaning set forth in <U>Section
6(a)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(mm) &#147;<U>PrivateBank</U>&#148; means The PrivateBank and Trust Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(nn) &#147;<U>PrivateBank Guaranty</U>&#148; means Debtor&#146;s guaranty of ISI&#146;s Indebtedness under
the Senior Loan Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(oo) &#147;<U>Purchasers</U>&#148; means collectively Purchaser and Mezzanine Management Fund IV
<B>&#091;Coinvest&#093; </B>A, LP, a limited partnership organized under the laws of the United Kingdom.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(pp) &#147;<U>Qualified Equity Offering</U>&#148; means the first to occur of (i)&nbsp;the Rights
Offering or (ii)&nbsp;private or public placement of shares of capital stock of Debtor, for cash
(other than the Rights Offering), in either case, during the QEO Period.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(qq) &#147;<U>QEO Conversion Price</U>&#148; shall be (i)&nbsp;if the Qualified Equity Offering is
the Rights Offering, the price per share of Common Stock at which the shares of Common Stock
were offered in the Rights Offering or (ii)&nbsp;if the Qualified Equity Offering is a private or
public placement of shares of capital stock of Debtor (other than the Rights Offering), the
Common Stock equivalent price per share paid in such private or public placement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(rr) &#147;<U>QEO Period</U>&#148; means the period commencing on the Issuance Date and ending
June&nbsp;29, 2010.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ss) &#147;<U>Responsible Officer</U>&#148; means the chief executive officer, president, chief
financial officer, treasurer, assistant treasurer or controller of Debtor and any other
officer of Debtor so designated by any of the foregoing officers in a notice to Purchaser
Any document delivered hereunder that is signed by a Responsible Officer of Debtor shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or
other action on the part of Debtor and such Responsible Officer shall be conclusively
presumed to have acted on behalf of Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(tt) &#147;<U>Rights Offering</U>&#148; means a rights offering to purchase shares of Common
Stock for cash (or, in the case of the Purchasers, by off-set against the MML Bridge Notes)
to the holders of the Common Stock, including the Purchasers.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(uu) &#147;<U>Sarbanes-Oxley Act</U>&#148; means the Sarbanes-Oxley Act of 2002, as amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vv) &#147;<U>SEC</U>&#148; has the meaning set forth in <U>Section&nbsp;8(d)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ww) &#147;<U>SEC Reports</U>&#148; has the meaning set forth in <U>Section&nbsp;8(d)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xx) &#147;<U>Securities Act</U>&#148; means the Securities Act of 1933, as amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(yy) &#147;<U>Senior Creditors</U>&#148; means, at any time, collectively, Persons who, at such
time are the holders of the Senior Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(zz) &#147;<U>Senior Indebtedness</U>&#148; means, collectively, the indebtedness and other
obligations owing by (i)&nbsp;Debtor pursuant to the PrivateBank Guaranty, the Blair Mezz
Guaranty, the PDI Notes Guaranty, and the Corcoran Notes Guaranty and (ii)&nbsp;ISI to
PrivateBank under the Senior Loan Agreement and Blair Mezz under the Senior Note and Warrant
Purchase Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(aaa) &#147;<U>Senior Loan Agreement</U>&#148; means the Loan and Security Agreement dated as of
October&nbsp;3, 2008, by and between ISI and PrivateBank, as amended, restated or otherwise
modified from time to time, including pursuant to that certain Amendment No.&nbsp;4 thereto dated
the date hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(bbb) &#147;<U>Senior Note and Warrant Purchase Agreement</U>&#148; means the Note and Warrant
Purchase Agreement dated as of October&nbsp;22, 2004, by and among ISI, Blair Mezz and the
guarantors from time-to-time a party thereto, as amended, restated or otherwise modified
from time to time, including pursuant to that certain Ninth Amendment thereto dated the date
hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ccc) &#147;<U>Subordinated Indebtedness</U>&#148; has the meaning set forth in <U>Section
12</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ddd) &#147;<U>Subsidiary</U>&#148; means, with respect to any Person, (a)&nbsp;any corporation 50%
or more of whose stock of any class or classes having by the terms thereof ordinary voting
power to elect a majority of the directors of such corporation (irrespective of whether or
not at the time stock of any class or classes of such corporation have or might have voting
power by reason of the happening of any contingency) is at the time owned
by such Person, directly or indirectly through Subsidiaries, and (b)&nbsp;any partnership,
limited liability company, association, joint venture, trust or other entity in which such
Person, directly or indirectly through Subsidiaries, is either a general partner, has a 50%
or greater equity interest at the time or otherwise owns a controlling interest.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;<U>Other Definitional Provisions</U>. References in this Note to &#147;Sections&#148; or
&#147;subsections&#148; shall be to Sections or subsections of this Note unless otherwise specifically
provided. Any of the terms defined in <U>Section&nbsp;1</U> may, unless the context otherwise
requires, be used in the singular or plural depending on the reference. &#147;Include,&#148; &#147;includes&#148; and
&#147;including&#148; shall be deemed to be followed by &#147;without limitation&#148; whether or not they are in fact
followed by such words or words of like import. &#147;Writing,&#148; &#147;written&#148; and comparable terms refer to
printing, typing and other means of reproducing words in a visible form. References to any
agreement or contract are to such agreement or contract as amended, modified or supplemented from
time to time in accordance with the terms hereof and thereof. References to any Person include the
successors and assigns of such Person. References &#147;from&#148; or &#147;through&#148; any date mean, unless
otherwise specified, &#147;from and including&#148; or &#147;through and including,&#148; respectively.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">3. <U>Interest</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Interest Rate</I>. Subject to <U>Section&nbsp;3(b)</U>, the outstanding principal amount
of this Note shall bear interest, for each day from the date of this Note until its
principal amount is paid in full, at a rate per annum equal to 10%.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Default Rate of Interest</I>. After the occurrence and during the continuance of an
Event of Default, the unpaid principal amount of this Note outstanding from time to time
shall bear interest at a rate per annum equal to 12%.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Payment of Interest</I>. Interest will be payable in arrears on the last day of each
quarter and on the Maturity Date, commencing on March&nbsp;31, 2010 (each such date being
referred to herein as an &#147;<U>Interest Payment Date</U>&#148;). All interest shall be computed
on the basis of a 360-day year and paid for the actual number of days elapsed.
Notwithstanding any provision in this Note to the contrary, in lieu of paying in cash for
interest accrued to any Interest Payment Date, accrued but unpaid interest shall be
capitalized and added as of such Interest Payment Date to the outstanding principal amount
of this Note (the amount so capitalized, the &#147;<U>PIK Interest</U>&#148;). The PIK Interest
shall bear interest from the applicable Interest Payment Date at the same rate per annum as
the original principal amount of this Note and be payable in the same manner as the original
principal amount of this Note and shall otherwise be treated as principal of this Note for
all purposes. From and after each Interest Payment Date, the principal amount of this Note
shall, without further action on the part of Debtor or Purchaser, be deemed to be increased
by the PIK Interest so capitalized and added to principal in accordance with the provisions
hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">4. <U>Payment of Principal</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Mandatory Payments</I>. Subject to the conversion of this Note, in full or in part, in
accordance with the provisions of <U>Section&nbsp;6</U> below, the outstanding principal
amount of this Note shall be due and payable (i)&nbsp;in full after the occurrence of a
Change of Control, subject to the payment in full of any amount due and payable to the
Senior Creditors with respect to outstanding Senior Indebtedness that is required to be
repaid as a result of such Change of Control, such payment to be made on the earlier of (x)
thirty (30)&nbsp;days after the date such Change of Control occurs or (y)&nbsp;the date such Change of
Control occurs if, on or before such date, the holder of this Note has waived its right to
give notice of its election to convert this Note pursuant to <U>Section&nbsp;6(c)</U> or (ii)
upon the closing of the Qualified Equity Offering, to the extent of the Net Cash Proceeds.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Voluntary Prepayments</I>. Debtor may not prepay the principal amount of or interest
on this Note in whole or in part. Nothing herein contained shall in any way restrict the
ability of the holder of this Note to accept mandatory payments required to be made pursuant
to <U>Section&nbsp;4(a)</U>, to participate in the Rights Offering as provided in <U>Section
4(c)</U> or convert the Note as herein provided.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Satisfaction by Participation in Rights Offering</I>. If Debtor makes the Rights
Offering, the holder of this Note will purchase shares of Common Stock offered in the Rights
Offering (including its basic subscription rights, its oversubscription rights and any
backstop commitment) up to the full extent of the unpaid principal amount of the Note,
together with any remaining accrued but unpaid interest, after the application of the Net
Cash Proceeds, and the holder shall be entitled to satisfy its obligations under the Rights
Offering by offsetting the amount owed by the holder with respect to its obligations under
the Rights Offering against the amount owed to the holder under this Note. At the Closing
of the Rights Offering, any amount not so satisfied pursuant to <U>Section&nbsp;4(a)(ii)</U> or
this <U>Section&nbsp;4(c)</U> shall be converted as provided in <U>Section&nbsp;6(a)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">5. <U>Manner and Time of Payment</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Payment in Same Day Funds</I>. All payments by Debtor with respect to this Note shall
be made in same day funds and delivered to Purchaser by wire transfer to such accounts as
Purchaser may designate from time to time. Debtor shall receive credit for such funds on
the date received if Purchaser receives such funds by 5:00 p.m. (New York City time) on such
day. In the absence of timely receipt, such funds shall be deemed to have been paid by
Debtor on the next succeeding Business Day.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Payment on Non-Business Days</I>. If any payment on this Note shall become due on a
day that is not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension of time shall in such case be included in computing any interest due
in connection with such payment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">6. <U>Conversion of Note</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Automatic Conversion upon a Qualified Equity Offering</I>. If a Qualified Equity
Offering is closed and funded during the QEO Period, the principal balance outstanding under
this Note, together with any then accrued but unpaid interest, after application of
mandatory prepayments of Net Cash Proceeds pursuant to <U>Section&nbsp;4(a)(ii)</U> and
Purchaser&#146;s participation in the tender offer pursuant to <U>Section&nbsp;4(c)</U> (the
&#147;<U>Post-QEO Converted Amount</U>&#148;), shall automatically be converted into a number of fully
paid and nonassessable shares of Common Stock equal to the quotient obtained by dividing (i)
the Post-QEO Converted Amount by (ii)&nbsp;the QEO Conversion Price.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Automatic Conversion at the Maturity Date</I>. If no Qualified Equity Offering is
consummated during the QEO Period, then on June&nbsp;30, 2010, the unpaid principal balance
outstanding under this Note, together with any then accrued and unpaid interest (the
&#147;<U>Maturity Date Converted Amount</U>&#148;), shall automatically be converted into a number of
fully paid and nonassessable shares of Common Stock equal to the quotient obtained by
dividing (i)&nbsp;the Maturity Date Converted Amount by (ii)&nbsp;the Issuance Date Conversion Price,
as the same may be adjusted pursuant to <U>Section&nbsp;7</U> hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Optional Conversion Upon Change of Control</I>. Not less than thirty (30)&nbsp;days prior
to consummation of any Change of Control (or, if such Change of Control occurs without the
agreement or participation by Debtor, as soon as reasonably possible after Debtor obtains
knowledge of the occurrence of such Change of Control or of any event, or the taking of any
action, by any Person, that could reasonably be expected to cause, or result in, a Change of
Control), Debtor shall give the holder of this Note written notice of such Change of
Control, event or action, and the holder of this Note may at any time prior to the date
thirty (30)&nbsp;days after such Change of Control is consummated, notify Debtor that it has
elected to convert all or any portion of the principal balance outstanding under this Note,
together with any then accrued and unpaid interest (the amount to be so converted, the
&#147;<U>COC Conversion Amount</U>&#148;), whereupon the COC Conversion Amount shall automatically
convert into fully paid and nonassessable shares of Common Stock on the date such notice is
given by such holder. Any such notice by the holder may be conditioned upon the
consummation of the Change of Control. The number of shares of Common Stock that the holder
of this Note shall be entitled to receive upon such conversion pursuant to this <U>Section
6(c)</U> shall equal the quotient obtained by dividing (i)&nbsp;the total COC Conversion Amount
by (ii)&nbsp;the Issuance Date Conversion Price, as the same may be adjusted pursuant to
<U>Section&nbsp;7</U> hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Certain Procedures</I>. The holder of this Note that is entitled to receive shares of
Common Stock issuable upon conversion of this Note pursuant to <U>Section&nbsp;6(a), (b)&nbsp;or
(c)</U>, as applicable, shall be deemed to have converted this Note as of (i)&nbsp;in the event
of a conversion pursuant to <U>Section&nbsp;6(a)</U>, the time of the closing and funding of the
Qualified Equity Offering during the QEO Period, (ii)&nbsp;in the event of a conversion pursuant
to <U>Section&nbsp;6(b)</U>, June&nbsp;30, 2010, and (iii)&nbsp;in the event of a conversion pursuant to
<U>Section&nbsp;6(c)</U>, upon the giving of the holder&#146;s notice of conversion pursuant to
<U>Section&nbsp;6(c)</U> (as applicable, the &#147;<U>Conversion Date</U>&#148;). As of the Conversion
Date, the Post-QEO Converted Amount, the Maturity Date Converted Amount or the COC
Conversion Amount, as applicable, shall be converted automatically without any further
action by the holder and whether this Note is surrendered to Debtor at the QEO Conversion
Price or the Issuance Date Conversion Price (as the same may be adjusted pursuant to
<U>Section&nbsp;7</U> hereof), as applicable; <U>provided</U>, <U>however</U>, that Debtor
shall not be obligated to issue certificates evidencing the shares of Common Stock issuable
upon such conversion until this Note is either delivered to Debtor, as hereinafter provided,
or the holder of this Note notifies Debtor, as hereinafter provided, that such Note have
been lost, stolen or
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">destroyed and executes an agreement reasonably satisfactory to Debtor to indemnify
Debtor from any loss incurred by it in connection therewith. Thereupon, there shall be
issued and delivered to such holder, promptly at such office and in the name of such holder
as shown hereon, a certificate or certificates for the number of shares of Common Stock into
which the Note surrendered was convertible as of such Conversion Date, and with respect to
partial conversions, a new note in the form of this Note for the remaining principal balance
outstanding, together with accrued and unpaid interest, not so converted. Any person whose
name the certificate for shares of Common Stock is to be issued shall be considered to have
become a holder of record of such shares of Common Stock as of the closing of business on
the applicable Conversion Date.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) <I>No Fractional Shares</I>. No fractional shares of Common Stock shall be issued upon
conversion of the Post-QEO Converted Amount, the Maturity Date Converted Amount or the COC
Conversion Amount, as applicable, and the number of shares of Common Stock to be issued upon
such conversion shall be rounded down to the nearest whole share. Instead of any fractional
share of Common Stock which would otherwise be issuable upon conversion of the Post-QEO
Converted Amount, the Maturity Date Converted Amount or the COC Conversion Amount, as
applicable, Debtor shall pay a cash adjustment in respect of such fractional interest in an
amount equal to the product of (i)&nbsp;the fractional amount, multiplied by, (ii)&nbsp;the QEO
Conversion Price or the Issuance Date Conversion Price (as the same may be adjusted pursuant
to <U>Section&nbsp;7</U> hereof), as applicable.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 0%">7. <U>Adjustment to Issuance Date Conversion Price for Diluting Issues</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Special Definitions</I>. For purposes of this <U>Section&nbsp;7</U>, the following
definitions shall apply:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) &#147;<U>Additional Shares of Common</U>&#148; shall mean all shares of Common Stock
issued (or, pursuant to <U>Section&nbsp;7(c)</U>, deemed to be issued) by Debtor after
the Issuance Date, other than (1)&nbsp;shares of Common Stock issued or issuable to
officers, directors, employees or consultants to Debtor or its Subsidiaries pursuant
to a stock grant, stock option plan, stock purchase plan or other stock incentive
agreement (collectively, the &#147;<U>Plans</U>&#148;) approved by the Board of Directors;
(2)&nbsp;shares of Common Stock issued or issuable pursuant to exercise, conversion or
exchange of options, warrants or Convertible Securities outstanding as of the
Issuance Date, including the MML Bridge Notes, the MML Convertible Notes and the DI
Promissory Note, (3)&nbsp;shares of Common Stock issued or issuable in connection with a
business acquisition or combination approved by the Board of Directors, (4)&nbsp;shares
of Common Stock or Convertible Securities issued or issuable in a Qualified Equity
Offering, (5)&nbsp;shares of Common Stock issued or issuable for which an adjustment to
the Issuance Date Conversion Price is made pursuant to <U>Section&nbsp;7(f)</U>, or (6)
upon the written approval or consent of the holders of a majority of the then
outstanding aggregate principal balance of the MML Bridge Notes.
</DIV>
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</DIV>

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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) &#147;<U>Convertible Securities</U>&#148; shall mean any evidences of indebtedness,
 shares (other than Common Stock) and all other securities convertible into or
exchangeable for Additional Shares of Common.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii) &#147;<U>Market Price</U>&#148; shall mean the value that would be paid by a
willing buyer to an unaffiliated willing seller in a transaction not involving
distress or necessity of either party, determined in good faith by the Board of
Directors.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv) &#147;<U>Options</U>&#148; shall mean rights, options or warrants to subscribe for,
purchase or otherwise acquire either Additional Shares of Common or Convertible
Securities.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>No Adjustment of Issuance Date Conversion Price</I>. No adjustment in the Issuance
Date Conversion Price shall be made in respect of the issuance of Additional Shares of
Common unless the consideration per share (determined pursuant to <U>Section&nbsp;7(a)(i)</U>
for an Additional Share of Common issued or deemed to be issued by Debtor is less than the
Issuance Date Conversion Price, in effect on the date of, and immediately prior to, such
issuance.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Deemed Issue of Additional Shares of Common</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) <U>Options and Convertible Securities</U>. In the event Debtor at any time
or from time to time after the Issuance Date and while any portion of this Note is
outstanding shall issue any Options or Convertible Securities, other than Options or
Convertible Securities exempted pursuant to <U>Section&nbsp;7(a)(i)</U>, or shall fix a
record date for the determination of holders of any class of securities entitled to
receive any such Options or Convertible Securities, then the maximum number of
 shares (as set forth in the instrument relating thereto without regard to any
provisions contained therein for a subsequent adjustment of such number) of Common
Stock issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible
Securities, shall be deemed to be Additional Shares of Common issued as of the time
of such issue or, in case such a record date shall have been fixed, as of the close
of business on such record date. Provided that Additional Shares of Common shall
not be deemed to have been issued unless the consideration per share (determined
pursuant to <U>Section&nbsp;7(e)</U> hereof) of such Additional Shares of Common would
be less than the Issuance Date Conversion Price in effect on the date of and
immediately prior to such issue, or such record date, as the case may be, and
provided further that in any such case in which Additional Shares of Common are
deemed to be issued:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">no further adjustment in the
Issuance Date Conversion Price shall be made upon the subsequent
issuance of Convertible Securities or shares of Common Stock
upon the exercise of such Options or conversion or exchange of
such Convertible Securities;</DIV></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">if such Options or Convertible
Securities by their terms provide, with the passage of time or
otherwise, for any increase or decrease in the consideration
payable to Debtor, or increase or decrease in the number of
 shares of Common Stock issuable, upon the exercise, conversion
or exchange thereof, the Issuance Date Conversion Price computed
upon the original issue thereof (or upon the occurrence of a
record date with respect thereto), and any subsequent
adjustments based thereon, shall, upon any such increase or
decrease becoming effective, be recomputed to reflect such
increase or decrease; <U>provided</U><I>, </I><U>however</U>, that no
such adjustment of the Issuance Date Conversion Price shall
affect Common Stock previously issued upon conversion of the
Note;</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">if any such Options or
Convertible Securities shall expire without having been
exercised or converted, the Issuance Date Conversion Price as
adjusted upon the issuance of such Options or Convertible
Securities (or upon the occurrence of a record date with respect
thereto) and any subsequent adjustments based thereon shall be
readjusted to the Issuance Date Conversion Price that would have
been in effect had an adjustment been made on the basis that the
only Additional Shares of Common so issued were the Additional
Shares of Common, if any, actually issued or sold on the
exercise of such Options or the conversion of such Convertible
Securities, and such Additional Shares of Common, if any, were
issued or sold for the consideration actually received by Debtor
upon such exercise, plus the consideration, if any, actually
received by Debtor for the granting of all such Options, whether
or not exercised, plus the consideration received for issuing or
selling the Convertible Securities actually converted plus the
consideration, if any, actually received by Debtor (other than
by cancellation of liabilities or obligations evidenced by such
Convertible Securities) on the conversion of such Convertible
Securities; and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">no readjustment pursuant to
clauses (2)&nbsp;or (3)&nbsp;above shall have the effect of increasing the
Issuance Date Conversion Price to an amount which exceeds the
lower of (i)&nbsp;the Issuance Date Conversion Price on the original
adjustment date immediately prior to the adjustment), or (ii)
the Issuance Date Conversion Price that results from any actual
issuance of Additional Shares of Common between the original
adjustment date and such readjustment date.</DIV></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Adjustment of Issuance Date Conversion Price Upon Issuance of Additional Shares of
Common</I>. In the event Debtor shall issue Additional Shares of Common (including Additional
Shares of Common deemed to be issued pursuant to <U>Section&nbsp;7(c)</U>, without consideration
or for a consideration per share less than the Issuance Date Conversion Price in effect on
the date or and immediately prior to such issue, then and in such event, the Issuance Date
Conversion Price in effect immediately prior to the issuance or such Additional Shares of
Common shall be reduced, concurrent with such issue, to an amount (calculated to the nearest
one hundredth of one cent ($0.0001)) determined by multiplying the Issuance Date Conversion
Price by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issuance plus the number of shares of Common Stock
that the aggregate consideration received by Debtor for such issuance would purchase at the
Issuance Date Conversion Price, and the denominator of which shall be the number of shares
of Common Stock outstanding immediately prior to such issuance plus the number of such
Additional Shares of Common; <U>provided</U> <U>that</U>, for the purposes of this
<U>Section&nbsp;7(d)</U>, the number of shares of Common Stock outstanding immediately prior to
such issuance shall be calculated on a fully diluted basis, as if all Convertible Securities
had been fully converted into shares of Common Stock immediately prior to such issuance and
any outstanding Options (including those granted pursuant to the Plans) had been fully
exercised immediately prior to such issuance (and the resulting securities fully converted
into shares of Common Stock, if so convertible) as of such date, but such calculation shall
not include any Additional Shares of Common issuable with respect to shares of Convertible
Securities, or outstanding Options, solely as a result of the adjustment of the Issuance
Date Conversion Price resulting from the issuance of Additional Shares of Common causing
such adjustment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) <I>Determination of Consideration</I>. For purposes of this <U>Section&nbsp;7</U>, the
consideration received by Debtor for the issuance of any Additional Shares of Common shall
be computed as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(i) <U>Cash and Property</U>. Such consideration shall:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">insofar as it consists of cash,
be computed at the aggregate amount of cash received by Debtor
excluding amounts paid or payable for accrued interest or
accrued dividends;</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">insofar as it consists of
property other than cash, be computed at the Market Price
thereof at the time of such issue; and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">in the event Additional Shares of
Common are issued together with other shares or securities or
other assets of Debtor for consideration that covers both, by
the proportion of such consideration so received, computed as
provided in clauses (1)&nbsp;and (2)&nbsp;above, as determined in good
faith by the Board of Directors.</DIV></TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) <U>Options and Convertible Securities</U>. The consideration per share
received by Debtor for Additional Shares of Common deemed to have been issued
pursuant to <U>Section&nbsp;7(c)(i)</U>, relating to Options and Convertible Securities,
shall be determined by dividing:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the total amount, if any,
received or receivable by Debtor as consideration for the
issuance of such Options or Convertible Securities, plus the
minimum aggregate amount of additional consideration (as set
forth in the instruments relating thereto, without regard to any
provisions contained therein for a subsequent adjustment of such
consideration) payable to Debtor upon the exercise of such
Options or the conversion or exchange of such Convertible
Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible
Securities and the conversion or exchange of such Convertible
Securities, by</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="16%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the maximum number of shares of
Common Stock (as set forth in the instruments relating thereto,
without regard to any provisions contained therein for a
subsequent adjustment of such number) issuable upon the exercise
of such Options or the conversion or exchange of such
Convertible Securities.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) <I>Adjustments for Dividends, Distributions, Subdivisions, Combinations or
Consolidation of Common Stock</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) <U>Stock Dividends, Distributions or Subdivisions</U>. In the event
Debtor shall issue Additional Shares of Common pursuant to a stock dividend, stock
distribution or subdivision on shares of Common Stock, the Issuance Date Conversion
Price in effect immediately prior to such stock dividend, stock distribution or
subdivision shall concurrently with such stock dividend, stock distribution or
subdivision, be proportionately decreased.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) <U>Combinations or Consolidations</U>. In the event the outstanding
 shares of Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, the Issuance Date
Conversion Price in effect immediately prior to such combination or consolidation
shall, concurrently with the effectiveness of such combination or consolidation, be
proportionately increased.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) <I>No Impairment</I>. Debtor will not, by agreement, amendment to its Certificate of
Incorporation or otherwise, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by Debtor but will at all times in good
faith assist in the carrying out of all the provisions of this <U>Section&nbsp;7</U> and in the taking of all such action as may be necessary or appropriate in
order to protect the conversion rights of the holders of this Note against impairment.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h) <I>Certificate as to Adjustments</I>. Upon the occurrence or each adjustment or
readjustment of the Issuance Date Conversion Price pursuant to this <U>Section&nbsp;7</U>,
Debtor, at its expense, shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to the holders of this Note a certificate setting forth
such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. Debtor shall, upon the written request at any time of any holder
of this Note, furnish or cause to be furnished to such holder a like certificate setting
forth (i)&nbsp;all such adjustments and readjustments, (ii)&nbsp;the Issuance Date Conversion Price at
the time in effect, and (iii)&nbsp;the number of shares of Common Stock and the amount, if any,
of other property which at the time would be received upon the conversion of the Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">8.&nbsp;<U>Representations and Warranties of Debtor</U>. Debtor represents and warrants to
Purchaser as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Existence and Good Standing</I>. Debtor is a corporation duly organized, validly
existing, and in good standing under the Laws of Delaware. Debtor is duly qualified to
transact business and is in good standing as a foreign entity in each jurisdiction where the
nature and extent of its business and properties require due qualification and good
standing. Debtor (i)&nbsp;possesses all requisite authority, power, licenses, permits and
franchises to conduct its business as is now being, or is contemplated to be, conducted, and
(ii)&nbsp;and is in compliance with all applicable Laws, except where the failure to be in
compliance would not reasonably be expended to have a material adverse effect on Debtor&#146;s
ability to perform its obligation under this Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Authorization, Compliance, and No Default</I>. The execution and delivery by Debtor of
this Note and Debtor&#146;s performance of its obligations under this Note (i)&nbsp;are within its
corporate power, (ii)&nbsp;have been duly authorized by all necessary corporate action, (iii)&nbsp;do
not require action by, or filing with, or consent of, any Governmental Authority, (iv)&nbsp;do
not violate any provision of Debtors&#146; organizational documents, (v)&nbsp;do not violate any
material provision of Law or any order of any Governmental Authority, in each case
applicable to Debtor, and (vi)&nbsp;do not violate any material agreements to which it is a
party.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Enforceability</I>. This Note has been executed and delivered by, and is the legal and
binding obligation of, Debtor and is enforceable against Debtor in accordance with its
terms, except as enforceability may be limited by applicable Debtor Relief Laws and general
principles of equity.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>SEC Filings</I>. Debtor has heretofore filed all forms, reports, registration
statements, definitive proxy statements, schedules and other materials with the Securities
and Exchange Commission (&#147;<U>SEC</U>&#148;) required to be filed pursuant to the Exchange Act or
other federal securities Laws since July&nbsp;31, 2007 (the &#147;<U>SEC Reports</U>&#148;). As of their
respective dates, or, if applicable, the dates such SEC Reports were amended prior to the
date hereof, the SEC Reports (including, without limitation, all financial statements
included therein, exhibits and schedules thereto and documents incorporated by
reference therein) complied in all material respects with all applicable requirements
(including but not limited to the Sarbanes-Oxley Act to the extent then in effect and
applicable) of the Securities Act or the Exchange Act, as applicable, and other federal
securities Laws as of the date thereof and did not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements made therein, in light of the circumstances under which they
were made, not misleading; <U>provided</U>, <U>however</U>, that no representation is made
as to the accuracy of any financial projections or forward looking statements, or the
completeness of any information furnished by the Debtor to the SEC solely for the purposes
of complying with Regulation&nbsp;FD promulgated by the SEC under the Exchange Act or other
information that is treated by SEC regulations as not being &#147;filed&#148; for the purposes of the
Exchange Act.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9. <U>Representations and Warranties of Purchaser</U>. Purchaser represents and warrants to the
Debtor as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Authorization; Enforcement</I>. The Purchaser has the requisite power and authority to
enter into this Note and to consummate the transactions contemplated hereby. The Purchaser
has taken all necessary action to authorize the execution and delivery of this Note. Upon
the execution and delivery of this Note, this Note shall constitute a valid and binding
obligation of the Purchaser enforceable in accordance with its terms, except (i)&nbsp;as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar Laws affecting creditors&#146; and contracting parties&#146; rights generally,
(ii)&nbsp;as enforceability may be subject to general principles of equity and (iii)&nbsp;as rights to
indemnity and contribution may be limited by applicable securities Laws or public policy
underlying such Laws.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Investment Purpose</I>. The Purchaser is purchasing the Note for its own account for
investment and not with a present view toward the public sale or distribution thereof and
has no intention of selling or distributing or any arrangement or understanding with any
other persons regarding the sale or distribution of the Note or any shares of Common Stock
issuable on conversion of the Note (&#147;<U>Conversion Shares</U>&#148;), except as contemplated by
this Note and in compliance with the Securities Act. The Purchaser will not, directly or
indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) this Note or Conversion Shares
except in accordance with the provisions of this Note and in accordance with the Securities
Act. In making the representation herein, however, except as otherwise provided by this
Note, the Purchaser does not agree to hold the Note or Conversion Shares for any minimum or
other specified term and reserves the right to dispose of this Note or Conversion Shares at
any time in compliance with the Securities Act and the terms of this Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Purchaser Status</I>. At the time Purchaser was offered the Note, it was, and at the
date hereof it is, an &#147;accredited investor&#148; as defined in Rule 501(a) under the Securities
Act.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Reliance on Exemptions</I>. The Purchaser understands that the Note is being offered
and sold to it in reliance upon specific exemptions from or non-application of the
registration requirements of United States federal and state securities Laws and that the
Debtor is relying upon the truth and accuracy of, and the Purchaser&#146;s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of the Purchaser
set forth herein in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire this Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) <I>Acknowledgment of Risk</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;The Purchaser acknowledges and understands that its investment in the Note
and Conversion Shares involves a significant degree of risk, including, without
limitation, (A)&nbsp;an investment in the Debtor is speculative, and only Purchasers who
can afford the loss of their entire investment should consider investing in the
Debtor and the Note and Conversion Shares; (B)&nbsp;the Purchaser may not be able to
liquidate its investment; (C)&nbsp;transferability of the Note and Conversion Shares may
be limited; (v)&nbsp;in the event of a disposition of this Note or the Conversion Shares,
the Purchaser could sustain the loss of its entire investment; and (D)&nbsp;the Debtor
has not paid any dividends on its Common Stock since inception and does not
anticipate the payment of dividends in the foreseeable future; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;The Purchaser is able to bear the economic risk of holding this Note and
the Conversion Shares for an indefinite period, and has knowledge and experience in
financial and business matters such that it is capable of evaluating the risks of
the investment in the Note and the Conversion Shares.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) <I>Restrictions on Transfer and Lack of Registration</I>. The Purchaser understands that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;this Note and the Conversion Shares have not been and are not being
registered under the Securities Act (other than as which may occur as a result of
Purchaser&#146;s participation in a Rights Offering) or any applicable state securities
Laws and, consequently, the Purchaser may have to bear the risk of owning the Note
or Conversion Shares for an indefinite period of time because the Note or Conversion
Shares may not be transferred unless (i)&nbsp;the sale of this Note or Conversion Shares
is registered pursuant to an effective registration statement under the Securities
Act in connection with a Rights Offering or otherwise; (ii)&nbsp;the Purchaser has
delivered to the Debtor an opinion of counsel (in form, substance and scope
customary for opinions of counsel in comparable transactions) to the effect that the
Note or Conversion Shares (other than Conversion Shares that are subsequently
registered in a Rights Offering or otherwise) to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration; or (iii)&nbsp;the
Conversion Shares are sold or transferred pursuant to Rule&nbsp;144; and
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;except pursuant to a Rights Offering as contemplated by this Note, neither
the Debtor nor any other person is under any obligation to register the sale of the
Note or Conversion Shares under the Securities Act or any state or foreign
securities Laws or to comply with the terms and conditions of any exemption
thereunder.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) <I>Legends</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;The Purchaser understands that, except for Conversion Shares that may be
registered in connection with a Rights Offering contemplated under this Note, the
certificates representing the Conversion Shares will bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed against
transfer of the certificates for such Conversion Shares, as applicable):
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">THE SHARES OF COMMON STOCK OF ARGYLE SECURITY, INC. (THE &#147;COMPANY&#148;)
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE OF THE UNITED STATES IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;SECURITIES ACT&#148;) OR
REGULATIONS THEREUNDER, AND ACCORDINGLY, MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY SATISFACTORY TO THE COMPANY.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;The Purchaser may request that the Debtor remove, and the Debtor agrees to
authorize the removal of any legend from the Conversion Shares (i)&nbsp;following any
sale of the Conversion Shares pursuant to an effective registration statement, or
(ii)&nbsp;if such Conversion Shares are eligible for sale under Rule&nbsp;144 without volume
limitations or under any no-action letter issued by the SEC (it being understood
that the Debtor may obtain an opinion of counsel with respect to such removal of
legend). Following the time a legend is no longer required for the Conversion
Shares hereunder, the Debtor will, no later than five (5)&nbsp;Business Days following
the delivery by a Purchaser to the Debtor or the Debtor&#146;s transfer agent of a
legended certificate representing such shares, accompanied by such additional
information as the Debtor or the Debtor&#146;s transfer agent may
reasonably request, deliver or cause to be delivered to such Purchaser a
certificate representing such shares that is free from all restrictive and other
legends.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;Notwithstanding anything herein to the contrary, the Debtor acknowledges
and agrees that the Debtor will not require an opinion of counsel in connection with
the transfer of this Note or Conversion Shares by a Purchaser to a Person that is an
&#147;accredited investor&#148; as defined in Rule 501(a) under the Securities Act and which
transfer involves (i)&nbsp;a partnership transferring to its partners or former partners
in accordance with partnership interests; (ii)&nbsp;a corporation transferring to a
wholly-owned subsidiary or a parent corporation that owns all of the capital stock
of such Purchaser; (iii)&nbsp;a limited liability company transferring to its members or
former members in accordance with their interest in the limited liability company;
or (iv)&nbsp;an affiliated investment fund transferring to another affiliated investment
fund; provided that in each case the transfer is effected in accordance with
applicable securities Laws and the transferee agrees in writing, in connection with
a transfer of the Note to be subject to the terms of this to the same extent as if
the transferee were the Purchaser hereunder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.&nbsp;<U>Affirmative Covenants</U>. So long as the Note shall remain unpaid or unsatisfied,
Debtor shall:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Notices</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;Promptly notify Purchaser of the occurrence of any Event of Default.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;Promptly notify Purchaser of any matter that has resulted or could
reasonably be expected to result in a material adverse effect upon the business,
operations or properties of Debtor or any of its Subsidiaries, including (A)&nbsp;breach
or non performance of, or any default under, a material agreement of Debtor; (B)&nbsp;any
material dispute, litigation, investigation, proceeding or suspension between Debtor
and any Governmental Authority; or (C)&nbsp;the commencement of, or any material
development in, any litigation or proceeding affecting Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;Promptly notify Purchaser of the occurrence of any (A)&nbsp;sale or
disposition of material assets of Debtor, (B)&nbsp;sale, transfer, or assignment of any
equity interests held by Debtor in its Subsidiaries, (C)&nbsp;any Change of Control or
any event, or the taking of any action by any Person, that could reasonably be
expected to cause a Change of Control or (D)&nbsp;incurrence or issuance of any
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;Notify Purchaser of any agreement or expression of intent to take any of
the actions described in <U>Section&nbsp;10(a)(iii)</U> hereof (A)&nbsp;at least 30&nbsp;days
prior to the consummation of such actions or, (B)&nbsp;if such action is a Change of
Control that occurs without the consent, agreement or knowledge of Debtor, as soon
as reasonably possible after Debtor obtains knowledge of the occurrence of such
Change of Control or of any event, or the taking of any action, by any Person
that could reasonably be expected to cause, or result in, a Change of Control.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 0%">Each notice pursuant to this <U>Section&nbsp;10(a)</U> shall be accompanied by a
statement of a Responsible Officer of Debtor setting forth details of the occurrence
referred to therein and stating what action Debtor has taken and proposes to take
with respect thereto. In the case of a Notice pursuant to <U>Section
10(a)(iv)</U>, Debtor (i)&nbsp;shall provide to Purchaser copies of any related
agreements or expressions of intent with respect to the related transaction, other
relevant information regarding the transaction and the identity and other relevant
information regarding the counterparty (or intended counterparty) to such
transaction and the holder of this Note shall be subject to the same terms of any
confidentiality obligations to which Debtor is required to be subject and (ii)&nbsp;from
time to time prior to the consummation of such transaction shall advise the
Purchaser of all material developments regarding such transaction (including at
least five Business Days&#146; notice of the closing date of the transaction). Each
notice pursuant to <U>Section&nbsp;10(a)</U> shall describe with particularity any and
all provisions of the Note that have been breached.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Payment of Obligations</I>. Pay and discharge, as the same shall become due and
payable, all its material obligations and liabilities, including (i)&nbsp;all tax liabilities,
assessments and governmental charges or levies upon it or its properties or assets, unless
the same are being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by Debtor, (ii)&nbsp;all
lawful claims which, if unpaid, would by law become a material Lien upon its property, and
(iii)&nbsp;all material Indebtedness, as and when due and payable, but subject to any
subordination provisions contained in any instrument or agreement evidencing or relating to
such Indebtedness or unless such Indebtedness is being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Compliance with Laws</I>. Comply in all material respects with all applicable Laws.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Use of Proceeds</I>. Use the proceeds of this Note to make a capital contribution to
ISI and cause ISI to use the proceeds of such capital contribution to prepay (i)&nbsp;a portion
of the term loan under the Senior Loan Agreement, and (ii)&nbsp;in full Note A under the Senior
Note and Warrant Purchase Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) <I>Rights Offering</I>. Debtor will use reasonable commercial efforts to consummate the
Rights Offering to its existing stockholders on terms reasonably acceptable to Purchaser
(including terms reasonably required to permit the holder of this Note to participate in
such Rights Offering (including the basic subscription, the oversubscription and the
backstop on terms acceptable to the Purchaser) and to exchange the Note for shares of Common
Stock to be acquired by the holder in the Rights Offering as contemplated by <U>Section
4(c)</U> and obligating Debtor to use any Net Cash Proceeds of the Rights Offering to repay
the obligations hereunder or contemplated by <U>Section&nbsp;4(a)(ii)</U>) as promptly as reasonably possible following the date hereof to the
extent it is not legally prohibited from doing so. Debtor will permit Purchaser to review
and comment upon the Debtor&#146;s proposed form of registration statement prior to filing
thereof.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) <I>Compliance Certificates</I>. No later than forty-five (45)&nbsp;days after the end of each
of the first three quarters of Debtor&#146;s fiscal year and no later than ninety (90)&nbsp;days after
the end of Debtor&#146;s fiscal year, Debtor shall deliver to Purchaser a fully and properly
completed compliance certificate or similar report required to be provided by ISI to the
holders of the Indebtedness under the Senior Loan Agreement and the Senior Note and Warrant
Purchase Agreement) signed by each of ISI&#146;s chief executive officer, chief operating officer
and chief financial officer as to compliance with the financial covenants set out in
<U>Section&nbsp;11</U> below.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">11.&nbsp;<U>Financial Covenants</U>. So long as any portion of the principal amount of this Note
remains outstanding Debtor covenants and agrees that it shall and shall cause each of its
Subsidiaries to perform and comply with all covenants in this <U>Section&nbsp;11</U> applicable to such
Person:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Maximum Capital Expenditures</I>. ASO, on a consolidated basis, shall not make Capital
Expenditures in excess of $250,000 per fiscal quarter.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Minimum Fixed Charge Coverage</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;While a Payment Blockage Period is not in effect under, and as defined in,
the Senior Subordination Agreement (as defined in the Senior Note and Warrant
Purchase Agreement), or any other subordination agreement, as of the end of each of
its fiscal quarters, ASO shall maintain a ratio (the &#147;<U>Fixed Charge Coverage
Ratio</U>&#148;) of (A)&nbsp;for the applicable reporting period EBITDA <U>minus</U> the sum
of all income taxes paid in cash by ISI and its Subsidiaries and all Capital
Expenditures which are not financed with Funded Debt, to (B)&nbsp;the sum for such
reporting period of (1)&nbsp;cash Interest Expense paid <U>plus</U> (2)&nbsp;required
payments of principal of Total Debt (including the Facility C Loans (as defined in
the Senior Loan Agreement), but excluding the Facility A Loans and Facility B Loans
(each as defined in the Senior Loan Agreement)), of not less than 0.81 to 1.00 for
the fiscal quarter ending March&nbsp;31, 2010 and 0.90 to 1.00 for each fiscal quarter
ending June&nbsp;30, 2010 and thereafter. For each of the fiscal quarters commencing
with the fiscal quarter ending December&nbsp;31, 2009 through the fiscal quarter ending
June&nbsp;30, 2010, the Fixed Charge Coverage Ratio shall be based on cumulative
reporting beginning October&nbsp;1, 2009 for such periods, and for each of the fiscal
quarters ending September&nbsp;30, 2010 and thereafter, the Fixed Charge Coverage Ratio
shall be measured on a trailing twelve (12)&nbsp;month basis.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;Until January&nbsp;1, 2010 or otherwise while a Payment Blockage Period is in
effect under the Senior Subordination Agreement, or any other subordination
agreements, as of the end of each of its fiscal quarters, ASO shall maintain a ratio
of (A)&nbsp;for the applicable reporting period EBITDA <U>minus</U> the sum
of all income taxes paid in cash by ASO and all Capital Expenditures which are
not financed with Funded Debt, to (B)&nbsp;the sum for such reporting period of (1)&nbsp;cash
Interest Expense paid <U>plus</U> (2)&nbsp;required payments of principal of Total Debt
(including the Facility C Loans, but excluding the Facility A Loans and Facility B
Loans), provided, however, that cash Interest Expense and principal paid by Debtor
on behalf of ISI on Senior Debt and Subordinated Debt (each as defined in the Senior
Loan Agreement) shall be deducted from the sum of cash Interest Expense and
principal payments on Total Debt, of not less than 0.81 to 1.00 for the fiscal
quarter ending December&nbsp;31, 2009, of not less than 0.81 to 1.00 for the fiscal
quarter ending March&nbsp;31, 2010 and of not less than 0.90 to 1.00 for the fiscal
quarter ending June&nbsp;30, 2010 and thereafter. For each of the fiscal quarters
commencing with the fiscal quarter ending December&nbsp;31, 2009 through the fiscal
quarter ending June&nbsp;30, 2010, the Fixed Charge Coverage Ratio shall be based on
cumulative reporting beginning October&nbsp;1, 2009 for such periods, and for each of the
fiscal quarters ending September&nbsp;30, 2010 and thereafter, the Fixed Charge Coverage
Ratio shall be measured on a trailing twelve (12)&nbsp;month basis.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Senior Debt to EBITDA</I>. As of the end of each of its fiscal quarters, ASO shall
maintain a ratio of consolidated Senior Debt to consolidated trailing twelve (12)&nbsp;month
EBITDA of not greater than
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">2.42 to 1.00 for the fiscal quarters ending
December&nbsp;31, 2009 and March&nbsp;31, 2010,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">3.27 to 1.00 for the fiscal quarter ending June
30, 2010, and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">2.42 to 1.00 for the fiscal quarter ending September&nbsp;30, 2010 and for
each of the fiscal quarters ending thereafter.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Total Debt to EBITDA</I>. As of the end of each of its fiscal quarters, ASO shall
maintain a ratio of consolidated Total Debt <U>plus</U> an amount equal to undrawn Letters
of Credit (as defined in the Loan and Security Agreement) under the Facility A Loan
Commitment (as defined in the Loan and Security Agreement) and any undrawn Letters of Credit
(as defined in the Loan and Security Agreement) under the Facility B Loan Commitment (as
defined in the Loan and Security Agreement) to consolidated trailing twelve (12)&nbsp;month
EBITDA of not greater than
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">5.15 to 1.00 for the fiscal quarter ending
December&nbsp;31, 2009,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">6.36 to 1.00 for the fiscal quarter ending
March&nbsp;31, 2010,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">9.08 to 1.00 for the fiscal quarter ending
June&nbsp;30, 2010,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">4.24 to 1.00 for the fiscal quarter ending September&nbsp;30, 2010, and for
each of the fiscal quarters ending thereafter.</DIV></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For purposes of this <U>Section&nbsp;11</U>, the following terms have the following meanings:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>ASO</U>&#148; means collectively, ISI and its Subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Capital Expenditures</U>&#148; means, with respect to any period, the aggregate of
all expenditures (whether paid in cash or accrued as liabilities and including
expenditures for Capital Lease Obligations, but excluding any expenditures for any
Green Wing Lease, as defined in the Senior Note and Warrant Purchase Agreement) by
ASO during such period that are required by GAAP, consistently applied, to be
included in or reflected by the property, plant and equipment or similar fixed asset
accounts (or intangible accounts) subject to amortization on the balance sheet of
ASO.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Capital Lease</U>&#148; means, with respect to any Person, any lease of any property
(whether real, personal, or mixed) by such Person as lessee that, in accordance with
GAAP, would be required to be classified and accounted for as a capital lease on a
balance sheet of such Person.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Capital Lease Obligations</U>&#148; means, with respect to any Capital Lease of any
Person, the amount of the obligation of the lessee thereunder that, in accordance
with GAAP, would appear on the balance sheet of such lessee in respect of such
Capital Lease.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Consolidated Net Income</U>&#148; means, for any Person, the consolidated net income
of such Person during the measuring period, determined in accordance with GAAP,
excluding the following: (a)&nbsp;the income (or deficit) of any Person accrued prior to
the date it became a Subsidiary of, or was merged or consolidated into, such Person;
(b)&nbsp;the income (or deficit) of any person (other than a Subsidiary) in which such
Person has an ownership interest except to the extent any such income has actually
been received by such Person or any of its Subsidiaries in the form of cash
dividends or distributions; (c)&nbsp;the undistributed earnings of any Subsidiary of such
Person to the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary is not at the time permitted by the terms of any
contractual obligation or requirement of law applicable to such Subsidiary; (d)&nbsp;any
restoration to income of any contingency reserve, except to the extent that
provision of such reserve was made out of income accrued during such period; (e)&nbsp;any
net gain attributable to the write-up of any asset: (f)&nbsp;any net gain on the
collection of proceeds of life insurance policies; (g)&nbsp;any net gain arising from the
acquisition of any securities, or the extinguishment of any Indebtedness, of such
Person or any of its Subsidiaries; (h)&nbsp;in the case of a successor to such Person or
any of its Subsidiaries by consolidation or merger or as a transferee of its assets,
any earnings of such successor prior to such consolidation, merger or transfer of
assets; and (i)&nbsp;any deferred credit representing the excess of equity in any
Subsidiary of such Person at the date of acquisition of such Subsidiary over the
cost to such Person of the investment in such Subsidiary.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Contingent Obligations</U>&#148; means, as applied to any Person, any direct or
indirect liability of that Person: (a)&nbsp;with respect to Indebtedness guaranteed by
any Person and with respect to any Indebtedness, lease, dividend or other obligation
of
another Person if the purpose or intent of the Person incurring such liability, or
the effect thereof, is to provide assurance to the oblige of such liability that
such liability will be paid or discharged, or that any agreement relating thereto
will be complied with, or that the holders of such liability will be protected (in
whole or in part) against loss with respect thereto: (b)&nbsp;with respect to any letter
of credit issued for the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings; (c)&nbsp;under any foreign exchange
contract, currency swap agreement, interest rate swap agreement or other similar
agreement or arrangement designed to alter the risks of that Person arising from
fluctuations in currency values or interest rates; (d)&nbsp;any agreement, contract or
transaction involving commodity options or future contracts; (e)&nbsp;to make take-or-pay
or similar payments if required regardless of nonperformance by any other party or
parties to an agreement; or (f)&nbsp;pursuant to any agreement to purchase, repurchase or
otherwise acquire any obligation or any property constituting security therefor, to
provide funds for the payment or discharge of such obligation or to maintain the
solvency, financial condition or any balance sheet item or level of income of
another. The amount of any Contingent Obligation shall be equal to the amount of
the obligation so guaranteed or otherwise supported or, if not a fixed and
determined amount, the maximum amount so guaranteed.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>EBITDA</U>&#148; means, for any period, the sum for such period of: (i)&nbsp;Consolidated
Net Income, plus (ii)&nbsp;Interest Expense, plus (iii)&nbsp;federal and state income taxes
and the Texas Margin Tax, plus (iv)&nbsp;depreciation and amortization, plus (v)&nbsp;non-cash
management compensation expense, plus (vi)&nbsp;certain one-time charges and expenses of
ASO permitted by PrivateBank, in its sole discretion, after written notice from ASO,
plus (vii)&nbsp;all other non-cash charges.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Funded Debt</U>&#148; means, with respect to any Person, without duplication, all
Indebtedness for borrowed money evidenced by notes, bonds, debentures, or similar
evidences of Indebtedness and that by its terms matures more that one (1)&nbsp;year from,
or is directly or indirectly renewable or extendible at such Person&#146;s option under a
revolving credit or similar agreement obligating the lender or lenders to extend
credit over a period of more than one (1)&nbsp;year from the date of creation thereof,
and specifically including Capital Lease Obligations, current maturities of long
term debt, revolving credit and short term debt extendible beyond one (1)&nbsp;year at
the option of the debtor, and also including the Senior Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Indebtedness</U>&#148; means, with respect to any Person, without duplication (a)
all indebtedness of such Person for borrowed money or for the deferred purchase
price of property payment for which is deferred six (6)&nbsp;months or more, but
excluding obligations to trade creditors incurred in the ordinary course of business
that are unsecured and not overdue by more than six (6)&nbsp;months unless being
contested in good faith; (b)&nbsp;all reimbursement and other obligations with respect to
letters of credit, banker&#146;s acceptances and surety bonds, whether or not matured;
(c)&nbsp;all obligations evidenced by notes, bonds, debentures or similar instruments;
(d)&nbsp;all indebtedness created or arising under any conditional sale or
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">other title retention agreement with respect to property acquired by such Person
(even though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property); (e)&nbsp;all
Capital Lease Obligations and the present value of future rental payments under all
synthetic leases; (f)&nbsp;all obligations of such Person under commodity purchase or
option agreements or other commodity price hedging arrangements, in each case
whether contingent or matured; (g)&nbsp;all obligations of such Person under any foreign
exchange contract, currency swap agreement, interest rate swap, cap or collar
agreement or other similar agreement or arrangement designed to alter the risks of
that Person arising from fluctuations in currency values or interest rates, in each
case whether contingent or matured; (h)&nbsp;all Indebtedness refereed to above secured
by (or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien upon or in property or other assets
(including accounts and contract rights ) owned by such Person, even though such
Person has not assumed or become liable for the payment of such Indebtedness; and
(i) &#147;earnouts&#148; and similar payment obligations.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Interest Expense</U>&#148; means, for any period, the sum of: (a)&nbsp;all interest,
charges and related expenses payable with respect to that fiscal period to a lender
in connection with borrowed money or the deferred purchase price of assets that are
treated as interest in accordance with GAAP, plus (b)&nbsp;the portion of Capital Lease
Obligations with respect to that fiscal period that should be treated as interest in
accordance with GAAP, plus (c)&nbsp;all charges paid or payable (without duplication)
during that period with respect to any Hedging Agreements (as defined in the Senior
Loan Agreement).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Total Debt</U>&#148; means all Indebtedness of ASO, determined on a consolidated
basis, excluding (a)&nbsp;Contingent Obligations (except to the extent constituting
Contingent Obligations in respect of the Indebtedness of a Person other than ISI or
any Subsidiary of ISI), (b)&nbsp;Hedging Obligations (as defined in the Senior Loan
Agreement), (c)&nbsp;Indebtedness of ISI to Subsidiaries and Indebtedness of Subsidiaries
to ISI or to other Subsidiaries, and (d)&nbsp;contingent obligations in respect to
undrawn Letters of Credit (as defined in the Senior Loan Agreement).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">12.&nbsp;<U>Subordination</U>. The payment of any amounts owing under this Note, including
principal and interest (other than PIK Interest) (&#147;<U>Subordinated Indebtedness</U>&#148;), is
subordinated to the payment of any amounts owing (including interest accruing after the filing of a
petition initiating any proceeding pursuant to any bankruptcy law with respect to Debtor) under the
Senior Indebtedness on the following terms and conditions:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;No payment of principal, interest (other than PIK Interest) or any other amounts in
respect of this Note shall be paid by Debtor on the Subordinated Indebtedness (whether
pursuant to the terms hereof or upon acceleration or otherwise) unless, at the time of any
such payment, all of the Senior Indebtedness shall have been paid in full in cash.
Notwithstanding the fact that the Subordinated Indebtedness becomes due prior to the Senior
Indebtedness, at the Maturity Date of the Subordinated Indebtedness the Debtor shall not
make and the holder of this Note shall not accept any payment on the
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Subordinated Indebtedness if, upon the Maturity Date of the Subordinated Indebtedness,
Borrower has not paid in full all outstanding obligations arising under the Senior
Indebtedness. Notwithstanding any provision of this <U>Section&nbsp;12</U> or any other
provision of this Note to the contrary, the unpaid principal balance due under this Note,
together with any then accrued but unpaid interest, may be (i)&nbsp;converted into Common Stock
pursuant to the terms of <U>Section&nbsp;6</U> or (ii)&nbsp;mandatorily prepaid pursuant to the terms
of <U>Section&nbsp;4(a)(ii)</U> to the extent of Net Proceeds, and the holder of this Note may
take any action to enforce its rights to such conversion or mandatory prepayment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;Upon any distribution to creditors of Debtor in a liquidation or dissolution of
Debtor or in a bankruptcy, reorganization, insolvency, receivership, or other similar
proceeding with respect to Debtor or any of its property: (i)&nbsp;the holders of the Senior
Indebtedness will be entitled to receive payment in full in cash, of all amounts payable
under or in respect of the Senior Indebtedness (including interest accrued after the
commencement of such proceeding) before the holders of the Subordinated Indebtedness will be
entitled to receive from Debtor or its assets any payment under or in respect of the
Subordinated Indebtedness (other than shares of Common Stock to be received by the holder of
this Note upon a conversion of this Note pursuant to <U>Section&nbsp;6</U> hereof), and (ii)
until the holders of the Senior Indebtedness have received such payment in full in cash, any
distribution from Debtor or its assets to which the holders of the Subordinated Indebtedness
would otherwise be entitled (other than shares of Common Stock to be received by the holder
of this Note upon a conversion of this Note pursuant to <U>Section&nbsp;6</U> hereof) shall be
made to the holders of the Senior Indebtedness (or one or more trustees or representatives
acting on their behalf). Subject to the prior payment in full of all Senior Indebtedness
(or provision made for payment in full in cash of all Senior Indebtedness), the holders of
the Subordinated Indebtedness shall be subrogated to the rights of the holders of the Senior
Indebtedness to receive payments or distribution of assets of Debtor applicable to the
Senior Indebtedness until all amounts owing on the Subordinated Indebtedness shall be paid
in full.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c)&nbsp;The holders of the Subordinated Indebtedness (or a trustee, representative, or
agent acting on its behalf) will be obligated to hold in trust for, and to pay over promptly
to, the holders of the Senior Indebtedness (or one or more trustees, representatives, or
agents acting on their behalf) all payments and distributions received by the holders of the
Subordinated Indebtedness (i)&nbsp;in contravention of the restrictions contained in the
preceding clauses (a)&nbsp;and (b)&nbsp;of this <U>Section&nbsp;12</U> or (ii)&nbsp;as a result of any Lien in
violation of clause (d)&nbsp;of this <U>Section&nbsp;12</U>; <U>provided</U>, <U>however</U>, that
notwithstanding such restrictions, the holders of the Subordinated Indebtedness shall be
entitled to receive and to retain any and all payments (i)&nbsp;made in securities of Debtor
provided the same are subordinated to the Senior Indebtedness at least to the same extent as
the Subordinated Indebtedness or (ii)&nbsp;made in accordance with any relevant court order
respecting the subordination provided for herein.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d)&nbsp;The holders of the Subordinated Indebtedness will not create, assume, or suffer to
exist any Lien, security interest, or assignment of collateral securing the repayment of the
Subordinated Indebtedness. Any such judgment Lien, and any other Lien, security interest,
or assignment existing in violation of the foregoing shall be fully
subordinate to any Lien, security interest, or assignment in favor of the holders of
the Senior Indebtedness which secures any of the Senior Indebtedness. At the request of the
holders of the Senior Indebtedness, the holders of the Subordinated Indebtedness and Debtor
will take any and all steps necessary to fully effect the release of any such Lien, security
interest, assignment, or collateral.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e)&nbsp;The provisions of this <U>Section&nbsp;12</U> are irrevocable and the holders of the
Senior Indebtedness are intended to be third party beneficiaries of this <U>Section&nbsp;12</U>
and such holders may, without notice to any of the parties hereto and without impairing or
releasing the obligations of Debtor and the holders of the Subordinated Indebtedness
hereunder, (i)&nbsp;change the terms of or increase the amount of the Senior Indebtedness by
increasing, extending, rearranging, amending, supplementing, or otherwise modifying any
instrument or agreement creating Senior Indebtedness, (ii)&nbsp;sell, exchange, release, or
otherwise deal with any collateral securing any Senior Indebtedness, (iii)&nbsp;release anyone,
including Debtor or any guarantor, liable in any manner for the payment or collection of any
Senior Indebtedness, (iv)&nbsp;exercise or refrain from exercising any rights against Debtor or
any other Person, and (v)&nbsp;apply any sums received by any holders of the Senior Indebtedness,
from whatever source, to the payment of the Senior Indebtedness. The provisions of this
<U>Section&nbsp;12</U> shall constitute a continuing agreement among each holder of Senior
Indebtedness, Debtor and its Subsidiaries, and all Persons who hold the Subordinated
Indebtedness, whether now outstanding or hereafter created, incurred or assumed, and the
provisions of this <U>Section&nbsp;12</U> are made for the benefit of the holders of the Senior
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f)&nbsp;Unless and until the Senior Indebtedness is paid in full, without first obtaining
the prior written consent of each holder of Senior Indebtedness in each instance, the
holders of Subordinated Indebtedness agree not to (i)&nbsp;sell, assign or dispose of any of the
Subordinated Indebtedness or any interest therein unless the assignee, participant and/or
purchaser agrees to be bound by and assume the terms hereof and the obligations hereunder
prior to consummating such purchase or assignment, or (ii)&nbsp;grant, create, or incur any
security interest, Lien, charge or other encumbrance whatsoever upon the Subordinated
Indebtedness unless the secured party or pledgee that is to be granted such security
interest, Lien, charge or other encumbrance agrees to be bound by the terms hereof and
assume the obligations hereunder in the event of an exercise of rights and remedies with
respect to any such security interest, Lien, charge or other encumbrance prior to being
granted such security interest, Lien, charge or other encumbrance.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g)&nbsp;Unless and until the Senior Indebtedness is paid in full, the holders of
Subordinated Indebtedness and Debtor shall not, without the prior written consent of each
holders of Senior Indebtedness, amend, modify or alter this Note to:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;increase the rate of interest that is payable on this Note;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;increase the principal of, or accelerate the final Maturity Date of, the
Indebtedness evidenced by this Note;
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;alter the redemption provisions or the price or terms at which Debtor is
required to offer to purchase the Indebtedness evidenced by this Note; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;amend the provisions of <U>Section&nbsp;12</U> of this Note (which relate to
subordination) or the related definitions;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U>provided</U>, <U>however</U>, for the avoidance of doubt, none of the following shall
be deemed to constitute an amendment, modification or alteration in violation of this
provision: (A)&nbsp;an increase in the principal amount of this Note resulting from the payment
of interest on, or fees with respect to, this Note in the form of PIK Interest, and (B)&nbsp;any
conversion of this Note that is permitted by <U>Section&nbsp;6</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h)&nbsp;The foregoing provisions will be enforceable against the holders of the
Subordinated Indebtedness, by or on behalf of any of the holders of the Senior Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;Unless and until the Senior Indebtedness is paid in full, the holders of
Subordinated Indebtedness shall not, directly or indirectly, take any action to enforce the
payment of the obligations of Debtor under this Note, whether as a result of the occurrence
or during the continuance of and Event of Default (as defined below).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(j)&nbsp;Notwithstanding anything to the contrary above, the terms and conditions of this
<U>Section&nbsp;12</U> shall be null and void and of no further effect once the Senior
Indebtedness has been paid in full.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">13.&nbsp;<U>Events of Default and Remedies</U>. If any one or more of the following events (each
an &#147;<U>Event of Default</U>&#148;) shall occur and be continuing for any reason whatsoever (whether
voluntary or involuntary, by operation of law or otherwise):
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;Debtor shall fail to pay (i)&nbsp;any principal on the MML Bridge Notes or the MML
Convertible Notes when due and payable (whether by acceleration or otherwise) or (ii)&nbsp;any
interest on the MML Bridge Notes or the MML Convertible Notes within five (5)&nbsp;Business Days
after Debtor&#146;s receipt of written notice that such payment is past due (whether by
acceleration or otherwise);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;Debtor shall fail to observe or perform any covenant or agreement (i)&nbsp;contained in
<U>Section&nbsp;10</U> and such failure shall continue for ten (10)&nbsp;days after written notice of
such default from the holder of this Note to Debtor, or (ii)&nbsp;contained in <U>Section
11</U>;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c)&nbsp;any representation, warranty, certification or statement made by Debtor in this
Note or in any certificate or other document delivered pursuant to this Note shall prove to
have been incorrect in any respect (or in any material respect if such representation,
warranty, certification or statement is not by its terms already qualified as to
materiality) when made (or deemed made);
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d)&nbsp;Debtor shall fail to observe or perform any covenant or agreement in respect of any
material agreement or the documents evidencing the Senior Indebtedness, beyond any
applicable grace periods, which results in the acceleration of the maturity of such material
agreement or any such Senior Indebtedness;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e)&nbsp;a judgment or order for the payment of money in excess of $500,000 (excluding,
however, any amounts fully covered by insurance (less any applicable deductible) or
indemnification and as to which the insurer or the indemnifying party, as the case may be,
has acknowledged its responsibility to cover such judgment or order) shall be rendered
against Debtor or any of its Subsidiaries and such judgment or order shall continue
unsatisfied or unstayed pending appeal for a period of sixty (60)&nbsp;Business Days;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f)&nbsp;Debtor or any of its Subsidiaries shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or its
debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, or shall consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case or
other proceeding commenced against it, or shall make a general assignment for the benefit of
creditors, or shall fail generally to pay its debts as they become due, or shall take any
corporate or company action to authorize any of the foregoing;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g)&nbsp;an involuntary case or other proceeding shall be commenced against Debtor or any of
its Subsidiaries seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such involuntary case or other
proceeding shall remain undismissed and unstayed for a period of sixty days; or an order for
relief shall be entered against Debtor or any of its Subsidiaries under the federal
bankruptcy laws as now or hereafter in effect;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h)&nbsp;a default or event of default occurs under the Senior Loan Agreement and if as a
result of such default or event of default the indebtedness under the Senior Loan Agreement
is accelerated prior to its maturity; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;a default or event of default occurs under the Senior Note and Warrant Purchase
Agreement and if as a result of such default or event of default the indebtedness under the
Senior Note and Warrant Purchase Agreement is accelerated prior to its maturity;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">then, and in every such event and at any time thereafter during the continuance of such event,
Purchaser may by written notice to Debtor (i)&nbsp;declare this Note (together with accrued interest
thereon) to be, and this Note shall, subject to <U>Section&nbsp;12</U> hereof, thereupon become,
immediately due and payable without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by Debtor; <U>provided</U>, <U>however</U>, that in the case of any of
the Events of Default specified in clauses (f)&nbsp;or (g)&nbsp;above, without any notice to Debtor or any
other act by Purchaser,
this Note (together with accrued interest thereon) shall become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by Debtor,
and/or (ii)&nbsp;exercise any or all of the rights and remedies which may be taken upon the occurrence
and/or during the continuance of Event of Default.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.&nbsp;<U>Amendment</U>. Subject to the terms of <U>Section&nbsp;12</U> and <U>Section&nbsp;17</U>,
this Note may be amended, superseded, cancelled, or renewed, and the terms thereof may be waived,
only by written consent of Debtor and Purchaser.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">15.&nbsp;<U>Waiver of Demand and Notice</U>. Debtor hereby waives demand, notice, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">16.&nbsp;<U>Expenses and Attorneys&#146; Fees</U>. Debtor agrees to pay on demand all reasonable
out-of-pocket legal fees and expenses incurred by Purchaser in connection with the preparation,
negotiation, execution, and delivery of this Note, and any and all amendments, modifications, and
supplements to this Note. Debtor agrees to promptly reimburse Purchaser for all reasonable fees,
costs and expenses (including reasonable attorneys&#146; fees) incurred by Purchaser in any action to
enforce this Note or to collect any payments due from Debtor under this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.&nbsp;<U>Binding Agreement; Transfer</U>. The terms and conditions of this Note shall inure to
the benefit of and be binding upon the respective successors and permitted assigns of the parties.
Subject to the terms of <U>Section&nbsp;12</U> and the receipt by Purchaser of the prior written
consent of each of the holders of the Senior Indebtedness (other than the Corcoran Notes Guaranty)
(which consent shall not be unreasonably withheld, delayed or conditioned), Purchaser may sell this
Note to any purchaser or purchasers that are Affiliated with the Purchasers (but expressly
including for this purpose any limited partners or other equity owners of any of the Purchasers or
any other funds Affiliated with the Purchasers or their Affiliates), and in each case in compliance
with the Securities Act or any laws of any State of the United States that regulate the offer and
sale of securities. This provision may not be amended without the prior written consent of the
parties hereto and each of the holders of the Senior Indebtedness (other than the Corcoran Notes
Guaranty).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">18.&nbsp;<U>Invalid Provisions</U>. If any provision of this Note is held to be illegal, invalid
or unenforceable, (i)&nbsp;the legality, validity and enforceability of the remaining provisions shall
not be affected or impaired thereby and (ii)&nbsp;the parties shall endeavor in good faith negotiations
to replace the illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">19.&nbsp;<U>Cumulative Rights</U>. No delay on the part of the holder of this Note in the
exercise of any power or right under this Note shall operate as a waiver thereof, nor shall a
single or partial exercise of any other power or right.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">20.&nbsp;<U>Notices</U>. Unless otherwise specifically provided herein, all notices,
modifications, consents, requests, demands and other communications required or permitted
hereunder:
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;shall be in writing;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;shall be sent by messenger, certified or registered U.S. mail, a reliable express
delivery service, facsimile or sent via electronic mail (with a copy sent by one of the
foregoing means), charges prepaid as applicable, to the appropriate address(es) or number(s)
set forth below; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c)&nbsp;shall be deemed to have been given on the date of receipt by the addressee (or, if
the date of receipt is not a Business Day, on the first Business Day after the date of
receipt), as evidenced by (i)&nbsp;a receipt executed by the addressee (or a responsible person
in his or her office), the records of the Person delivering such communication or a notice
to the effect that such addressee refused to claim or accept such communication, if sent by
messenger, U.S. mail or express delivery service, or (ii)&nbsp;a receipt generated by the
sender&#146;s facsimile or electronic mail server showing that such communication was sent to the
appropriate number on a specified date, if sent by facsimile or electronic mail.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">All such communications shall be sent to the following addresses or numbers, or to such other
addresses or numbers as any party may inform the others by giving five Business Days&#146; prior notice:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Debtor:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Argyle Security, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loeb &#038; Loeb LLP</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12903 Delivery Drive
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">345 Park Avenue</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">San Antonio, Texas 78247
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10154</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn: Donald F. Neville
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Giovanni Caruso, Esq.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Facsimile No.: (210)&nbsp;793-3917
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile No.: (212)&nbsp;937-3943</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Email: dneville@argylesecurity.com
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: gcaruso@loeb.com</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Lender:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mezzanine Management Fund IV <B>&#091;Coinvest&#093;</B>
A, LP <br>
c/o MML Capital Partners, LLC <br>
Stamford Harbor Park <br>
333 Ludlow Street <br>
Stamford, Connecticut 06902<br>
Attn: Robert Davies <br>
Facsimile No.: (203)&nbsp;323-9119<br>
Email : rdavies@mmlcapital.com
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Porter &#038; Hedges, L.L.P. <br>
1000 Main Street, 36<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor <br>
Houston, Texas 77002<br>
Attn: Chris A. Ferazzi <br>
Facsimile No.: (713)&nbsp;226-6226<br>
Email: cferazzi@porterhedges.com</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">21.&nbsp;<U>Choice of Law, Venue and Forum</U>. This Agreement, the entire relationship of the
parties hereto, and any litigation between the parties (whether grounded in contract, tort,
statute, law or equity) shall be governed by, construed in accordance with, and interpreted
pursuant to the laws of the State of Texas, without giving effect to its choice of laws principles.
Exclusive venue for any litigation between the parties hereto shall be in Bexar County, Texas, and
shall be brought in the State District Courts of Bexar County, Texas, or in the United States
District
Court for the Western District of Texas, San Antonio Division. The parties hereto waive any
challenge to personal jurisdiction or venue (including without limitation a challenge based on
inconvenience) in Bexar County, Texas, and specifically consent to the jurisdiction of the State
District Courts of Bexar County and the United States District Court for the Western District of
Texas, San Antonio Division.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">22.&nbsp;<U>Usury Savings Clause</U>. Any provision in this Note or in any other document
executed in connection herewith, or in any other agreement or commitment, whether written or oral,
express or implied, to the contrary notwithstanding, Lender shall not in any event be entitled to
receive or collect, nor shall or may amounts received hereunder be credited, so that Lender shall
be paid, as interest, a sum greater than the maximum rate of interest permitted by applicable law.
If any construction of this Note, or any and all other papers, agreements or commitments, indicates
a different right given to Lender to ask for, demand or receive any larger sum as interest, such is
a mistake in calculation or wording, which this clause shall override and control; it being the
intention of the parties that this Note and all other instruments relating to this Note shall in
all things comply with applicable law, and proper adjustment shall automatically be made
accordingly. In the event Lender ever receives, collects or applies as interest, any sum in excess
of the maximum rate of interest permitted by applicable law, such excess amount shall be applied to
the reduction of the unpaid principal balance of this Note in the inverse order of maturity, and if
this Note is paid in full, any remaining excess shall be paid to Debtor. In determining whether or
not the interest paid or payable, under any specific contingency, exceeds the maximum rate of
interest permitted by applicable law, Debtor and Lender shall, to the maximum extent permitted
under applicable law (a)&nbsp;characterize any nonprincipal payment as an expense, fee or premium rather
than as interest, (b)&nbsp;exclude voluntary prepayments and the effects thereof, and (c) &#147;spread&#148; the
total amount of interest throughout the entire term of this Note so that the interest rate is
uniform throughout the entire term hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">23. <U>Headings</U>. The headings of the
sections of this Note are inserted for convenience only and shall not be deemed to constitute a
part hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">24.&nbsp;<U>Counterparts</U>. This Note may be executed in one or more counterparts, each of
which when so executed and delivered, shall be an original, and all of which together shall
constitute one and the same instrument.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">25.&nbsp;<U>Entirety</U>. THIS NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;<I>Signature Page Follows</I>&#093;
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the undersigned has executed this Note to be effective as of the date
first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ARGYLE SECURITY, INC.,<BR>
a Delaware corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">AGREED AND ACCEPTED<BR>
THIS
&nbsp;___&nbsp;
DAY OF DECEMBER 2009<BR>
FOR THE SOLE PURPOSE OF<BR>
SECTIONS 9 AND 12 OF THIS NOTE

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT FUND IV &#091;<B>COINVEST</B>&#093; A, LP<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;<FONT style="font-variant: SMALL-CAPS">Signature Page to 10% Convertible Subordinated Bridge Promissory Note &#151; MMIV<B>&#091;A/Coinvest A&#093;</B>&#093;</FONT>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.C
<SEQUENCE>4
<FILENAME>c93758exv99wc.htm
<DESCRIPTION>EXHIBIT C
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhiibt C</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit C</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">THIS NOTE (AS DEFINED BELOW) AND THE SHARES OF COMMON STOCK (AS DEFINED BELOW) ISSUABLE UPON THE
CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
&#147;<U>SECURITIES ACT</U>&#148;). THE SHARES OF COMMON STOCK MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THE
SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO DEBTOR (AS DEFINED
BELOW) THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SUCH COMMON STOCK IS SOLD PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">THIS NOTE IS SUBORDINATED TO THE SENIOR INDEBTEDNESS (AS DEFINED BELOW) IN THE MANNER AND TO THE
EXTENT SET FORTH IN <U>SECTION 13</U> OF THIS NOTE.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>10% CONVERTIBLE SUBORDINATED PROMISSORY NOTE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">$<B>&#091;</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>&#093;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">December&nbsp;14, 2009</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">FOR VALUE RECEIVED, the undersigned, ARGYLE SECURITY, INC., a Delaware corporation
(&#147;<U>Debtor</U>&#148;), promises to pay to the order of MEZZANINE MANAGEMENT FUND IV <B>&#091;COINVEST&#093; </B>A, LP,
a limited partnership organized under the laws of the United Kingdom, its successors and assigns
(&#147;<U>Purchaser</U>&#148;), the principal sum of <B>&#091;</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>&#093; </B>and
<B>&#091;___&#093;</B>/100 Dollars
($<B>&#091;</B>____________<B>&#093;</B>), in lawful currency of the United States of America, together with interest
accrued thereon (this &#147;<U>Note</U>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1.&nbsp;<U>Defined Terms</U>. As used in this Note, the following terms have the meanings set
forth below.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) &#147;<U>Affiliate</U>&#148; of any particular Person means any other Person controlling,
controlled by or under common control with such particular Person, where &#147;<U>control</U>&#148;
means the possession, directly or indirectly, of the power to direct the management and
policies of a Person whether through the ownership of voting securities, contract or
otherwise.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) &#147;<U>Blair Mezz</U>&#148; means William Blair Mezzanine Capital Fund III, L.P., a
Delaware limited partnership.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) &#147;<U>Blair Mezz Guaranty</U>&#148; means Debtor&#146;s guaranty of ISI&#146;s Indebtedness under
the Senior Note and Warrant Purchase Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) &#147;<U>Board of Directors</U>&#148; means the board of directors of Debtor as elected from
time to time or any duly authorized committee of that board.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) &#147;<U>Business Day</U>&#148; means every day other than a Saturday, Sunday or other day
on which commercial banks are authorized to close under the laws of, or are in fact closed
in, the State of Texas.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) &#147;<U>Change of Control</U>&#148; means (i)&nbsp;any merger, consolidation, sale or other
transaction or event (other than a Qualified Equity Offering) by virtue of which any Person
or group (within the meaning of Section&nbsp;13(d)(3) of the Exchange Act) of Persons, as the
case may be, other than Purchaser and its Affiliates, acquires, directly or indirectly
(including by means of a merger or other business combination), beneficial ownership (as
defined in Rule&nbsp;13d-3 promulgated under the Exchange Act) of thirty-five percent or more of
Common Stock or other equity interests of Debtor having general voting rights that would
enable such Person or group to elect a majority of the Board of Directors, (ii)&nbsp;the sale of
all or substantially all of the assets of Debtor or of Debtor and its Subsidiaries, taken as
a whole or (iii)&nbsp;the sale, transfer or other distribution of any of the capital stock of ISI
by Debtor (other than a pledge of such capital stock to PrivateBank to secure ISI&#146;s
Indebtedness under the Senior Loan Agreement).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) &#147;<U>COC Conversion Amount</U>&#148; has the meaning set forth in <U>Section&nbsp;6(b)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h) &#147;<U>Common Stock</U>&#148; means the common stock, par value $0.0001 per share, of
Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i) &#147;<U>Conversion Date</U>&#148; has the meaning set forth in <U>Section&nbsp;6(c)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(j) &#147;<U>Conversion Shares</U>&#148; has the meaning set forth in <U>Section&nbsp;9(b)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(k) &#147;<U>Conversion Price</U>&#148; means the QEO Conversion Price or the Issuance Date
Conversion Price, as applicable.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(l) &#147;<U>Corcoran Notes</U>&#148; means the subordinated promissory note dated January&nbsp;31,
2008, issued by ISI Controls, Ltd., a Texas limited partnership and Subsidiary of Debtor, in
the original principal amount of $3,515,000 in favor of Jeffery E. Corcoran and Janell D.
Corcoran.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(m) &#147;<U>Corcoran Notes Guaranty</U>&#148; means Debtor&#146;s guaranty of the Corcoran Notes.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(n) &#147;<U>Debtor Relief Laws</U>&#148; means Title 11 of the United States Code and all other
applicable liquidation, conservatorship, bankruptcy, fraudulent transfer, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
suspension of payments, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(o) &#147;<U>DI Promissory Note</U>&#148; shall mean that certain Senior Subordinated (DI)
Promissory Note dated as of December&nbsp;14, 2009, in the original principal amount of Eight
Hundred Ninety-Seven Thousand Two Hundred Fifteen and 18/100 Dollars ($897,215.18), made
payable by ISI in favor of the Blair Mezz, as may be amended, restated, substituted,
replaced or otherwise modified from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(p) &#147;<U>Event of Default</U>&#148; has the meaning set forth in <U>Section&nbsp;14</U>.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(q) &#147;<U>Exchange Act</U>&#148; means the Securities Exchange Act of 1934, as amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(r) &#147;<U>GAAP</U>&#148; means generally accepted accounting principles in the United States
set forth in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board, consistently applied and as in effect from time to
time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(s) &#147;<U>Governmental Authority</U>&#148; means any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of, or
pertaining to, government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(t) &#147;<U>Indebtedness</U>&#148; means, relative to any Person, without duplication:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;all obligations of such Person for borrowed money and all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;all obligations, contingent or otherwise, relative to the face amount of
all letters of credit (or reimbursement agreements in respect thereof), whether or
not drawn, and banker&#146;s acceptances issued for the account of such Person;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;all obligations of such Person as lessee under leases which have been or
should be, in accordance with GAAP, recorded as capitalized lease liabilities; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;whether or not so included as liabilities in accordance with GAAP, all
obligations of such Person to pay the deferred purchase price of property or
services, and indebtedness (excluding, however, prepaid interest thereon) secured by
a Lien on property owned or being purchased by such Person (including indebtedness
arising under conditional sales or other title retention agreements), whether or not
such indebtedness shall have been assumed by such Person or is limited in recourse.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(u) &#147;<U>Interest Payment Date</U>&#148; has the meaning set forth in <U>Section&nbsp;3(c)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v) &#147;<U>ISI</U>&#148; means ISI Security Group, Inc., a Delaware corporation and wholly
owned Subsidiary of Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(w) &#147;<U>ISI Detention</U>&#148; means ISI Detention Contracting Group, Inc., a California
corporation and Subsidiary of Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(x) &#147;<U>Issuance Date</U>&#148; means December&nbsp;14, 2009.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(y) &#147;<U>Issuance Date Conversion Price</U>&#148; means $0.4302, representing the volume
weighted average sales price per share of Common Stock for trades quoted on the
OTC Bulletin Board (&#147;<U>VWAP</U>&#148;) for the ten trading days ending on the trading day
immediately prior to the Issuance Date. For purposes of this calculation, any trading day
during such ten day trading period for which no trades occur shall be deemed to have a VWAP
for that day equal to the VWAP of the nearest immediately preceding trading day on which a
trade occurred.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(z) &#147;<U>Laws</U>&#148; means, collectively, all international, foreign, federal, state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders,
requests, licenses, authorizations and permits of, and agreements with, any Governmental
Authority (whether or not such orders, requests, licenses, authorizations, permits or
agreements have the force of law).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(aa) &#147;<U>Lien</U>&#148; means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title retention
agreement, any easement, right of way or other encumbrance on title to real property, and
any financing lease having substantially the same economic effect as any of the foregoing).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(bb) &#147;<U>Maturity Date</U>&#148; means January&nbsp;3, 2012.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(cc) &#147;<U>MML Bridge Notes</U>&#148; means the 10% Convertible Subordinated Bridge
Promissory Notes dated as of the Issuance Date, issued by Debtor in favor of the Purchasers
in the aggregate original principal amount of $8,000,000.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(dd) &#147;<U>MML Convertible Notes</U>&#148; means this Note together with the 10% Convertible
Subordinated Promissory Note dated as of the Issuance Date, issued by Debtor in favor of
Mezzanine Management Fund IV <B>&#091;Coinvest&#093; </B>A, LP, a limited partnership organized under the
laws of the United Kingdom, in the original principal amount of $&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(ee) &#147;<U>Note</U>&#148; has the meaning set forth in the preamble
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ff) &#147;<U>OTC Bulletin Board</U>&#148; means the electronic quotation medium for subscribing
members, regulated by the Financial Industry Regulatory Authority, Inc. (FINRA)&nbsp;that
displays real-time quotes, last-sale prices, and volume information for over-the-counter
(OTC)&nbsp;domestic and certain foreign securities that are not listed on a national securities
exchange.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(gg) &#147;<U>Permitted Lien</U>&#148; has the meaning set forth in <U>Section&nbsp;10(b)</U>.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(hh) &#147;<U>Person</U>&#148; means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or
political subdivision thereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii) &#147;<U>PDI Notes</U>&#148; means collectively, the two Guaranteed Convertible Promissory
Notes dated as of January&nbsp;2, 2008, issued by ISI Detention, each in the original principal
amount of $1,500,000, and one payable to the order Mike Peterson and the other payable to
the order of Leonard Peterson, together the assignees of LAMSP, Corp., a California
corporation formerly known as Peterson Detention, Inc., a California corporation, as
amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(jj) &#147;<U>PDI Notes Guaranty</U>&#148; means Debtor&#146;s guaranty of the PDI Notes.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(kk) &#147;<U>PIK Interest</U>&#148; has the meaning set forth in <U>Section&nbsp;3(a)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ll) &#147;<U>PrivateBank</U>&#148; means The PrivateBank and Trust Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(mm) &#147;<U>PrivateBank Guaranty</U>&#148; means Debtor&#146;s guaranty of ISI&#146;s Indebtedness under
the Senior Loan Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(nn) &#147;<U>Purchasers</U>&#148; means collectively Purchaser and Mezzanine Management Fund IV
<B>&#091;Coinvest&#093; </B>A, LP, a limited partnership organized under the laws of the United Kingdom.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(oo) &#147;<U>Qualified Equity Offering</U>&#148; means the first to occur of (i)&nbsp;the Rights
Offering or (ii)&nbsp;any private or public placement of shares of capital stock of Debtor, for
cash (other than the Rights Offering), in either case, during the QEO Period.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(pp) &#147;<U>QEO Conversion Price</U>&#148; shall be (i)&nbsp;if the Qualified Equity Offering is
the Rights Offering, the price per share of Common Stock at which the shares of Common Stock
were offered in the Rights Offering or (ii)&nbsp;if the Qualified Equity Offering is a private or
public placement of shares of capital stock of Debtor (other than the Rights Offering), the
Common Stock equivalent price per share paid in such private or public placement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(qq) &#147;<U>QEO Period</U>&#148; means the period commencing on the Issuance Date and ending
June&nbsp;29, 2010.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(rr) &#147;<U>Responsible Officer</U>&#148; means the chief executive officer, president, chief
financial officer, treasurer, assistant treasurer or controller of Debtor and any other
officer of Debtor so designated by any of the foregoing officers in a notice to Purchaser
Any document delivered hereunder that is signed by a Responsible Officer of Debtor shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or
other action on the part of Debtor and such Responsible Officer shall be conclusively
presumed to have acted on behalf of Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ss) &#147;<U>Rights Offering</U>&#148; means a rights offering to purchase shares of Common
Stock for cash (or, in the case of the Purchasers, by off-set against the MML Bridge Notes)
to the holders of the Common Stock, including the Purchasers.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(tt) &#147;<U>Sarbanes-Oxley Act</U>&#148; means the Sarbanes-Oxley Act of 2002, as amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(uu) &#147;<U>SEC</U>&#148; has the meaning set forth in <U>Section&nbsp;8(d)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vv) &#147;<U>SEC Reports</U>&#148; has the meaning set forth in <U>Section&nbsp;8(d)</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ww) &#147;<U>Securities Act</U>&#148; means the Securities Act of 1933, as amended.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xx) &#147;<U>Senior Creditors</U>&#148; means, at any time, collectively, Persons who, at such
time are the holders of the Senior Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(yy) &#147;<U>Senior Indebtedness</U>&#148; means, collectively, the indebtedness and other
obligations owing by (i)&nbsp;Debtor pursuant to the PrivateBank Guaranty, the Blair Mezz
Guaranty, the PDI Notes Guaranty, and the Corcoran Notes Guaranty and (ii)&nbsp;ISI to
PrivateBank under the Senior Loan Agreement and Blair Mezz under the Senior Note and Warrant
Purchase Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(zz) &#147;<U>Senior Loan Agreement</U>&#148; means the Loan and Security Agreement dated as of
October&nbsp;3, 2008, by and between ISI and PrivateBank, as amended, restated or otherwise
modified from time to time, including pursuant to that certain Amendment No.&nbsp;4 thereto dated
the date hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(aaa) &#147;<U>Senior Note and Warrant Purchase Agreement</U>&#148; means the Note and Warrant
Purchase Agreement dated as of October&nbsp;22, 2004, by and among ISI, Blair Mezz, and the
guarantors from time-to-time a party thereto, as amended, restated or otherwise modified
from time to time, including pursuant to that certain Ninth Amendment thereto dated the date
hereof..
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(bbb) &#147;<U>Subordinated Indebtedness</U>&#148; has the meaning set forth in <U>Section
13</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ccc) &#147;<U>Subsidiary</U>&#148; means, with respect to any Person, (a)&nbsp;any corporation 50%
or more of whose stock of any class or classes having by the terms thereof ordinary voting
power to elect a majority of the directors of such corporation (irrespective of whether or
not at the time stock of any class or classes of such corporation have or might have voting
power by reason of the happening of any contingency) is at the time owned by such Person,
directly or indirectly through Subsidiaries, and (b)&nbsp;any partnership, limited liability
company, association, joint venture, trust or other entity in which such Person, directly or
indirectly through Subsidiaries, is either a general partner, has a 50% or greater equity
interest at the time or otherwise owns a controlling interest.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ddd) &#147;<U>Voluntary Conversion Amount</U>&#148; has the meaning set forth in <U>Section
6(a)</U>.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;<U>Other Definitional Provisions</U>. References in this Note to &#147;Sections&#148; or
&#147;subsections&#148; shall be to Sections or subsections of this Note unless otherwise specifically
provided. Any of the terms defined in <U>Section&nbsp;1</U> may, unless the context otherwise
requires, be used in the singular or plural depending on the reference. &#147;Include,&#148; &#147;includes&#148; and
&#147;including&#148;
shall be deemed to be followed by &#147;without limitation&#148; whether or not they are in fact
followed by such words or words of like import. &#147;Writing,&#148; &#147;written&#148; and comparable terms refer to
printing, typing and other means of reproducing words in a visible form. References to any
agreement or contract are to such agreement or contract as amended, modified or supplemented from
time to time in accordance with the terms hereof and thereof. References to any Person include the
successors and assigns of such Person. References &#147;from&#148; or &#147;through&#148; any date mean, unless
otherwise specified, &#147;from and including&#148; or &#147;through and including,&#148; respectively.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">3. <U>Interest</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Interest Rate</I>. Subject to <U>Section&nbsp;3(b)</U>, the outstanding principal amount
of this Note shall bear interest, for each day from the date of this Note until its
principal amount is paid in full, at a rate per annum equal to 10%.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Default Rate of Interest</I>. After the occurrence and during the continuance of an
Event of Default, the unpaid principal amount of this Note outstanding from time to time
shall bear interest at a rate per annum equal to 12%.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Payment of Interest</I>. Interest will be payable in arrears on the last day of each
quarter and on the Maturity Date, commencing on March&nbsp;31, 2010 (each such date being
referred to herein as an &#147;<U>Interest Payment Date</U>&#148;). All interest shall be computed
on the basis of a 360-day year and paid for the actual number of days elapsed.
Notwithstanding any provision in this Note to the contrary, in lieu of paying in cash for
interest accrued to any Interest Payment Date, accrued but unpaid interest shall be
capitalized and added as of such Interest Payment Date to the outstanding principal amount
of this Note (the amount so capitalized, the &#147;<U>PIK Interest</U>&#148;). The PIK Interest
shall bear interest from the applicable Interest Payment Date at the same rate per annum as
the original principal amount of this Note and be payable in the same manner as the original
principal amount of this Note and shall otherwise be treated as principal of this Note for
all purposes. From and after each Interest Payment Date, the principal amount of this Note
shall, without further action on the part of Debtor or Purchaser, be deemed to be increased
by the PIK Interest so capitalized and added to principal in accordance with the provisions
hereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">4. <U>Payment of Principal</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Mandatory Payments</I>. Subject to the conversion of this Note, in full or in part, in
accordance with the provisions of <U>Section&nbsp;6</U> below, the outstanding principal amount
of this Note shall be due and payable (i)&nbsp;in full on the Maturity Date or (ii)&nbsp;in full after
the occurrence of a Change of Control, subject to the payment in full of any amount due and
payable to the Senior Creditors with respect to outstanding Senior Indebtedness that is
required to be repaid as a result of such Change of Control, such payment to be made on the
earlier of (x)&nbsp;thirty (30)&nbsp;days after the date such Change of Control occurs or (y)&nbsp;the date
such Change of Control occurs if, on or before such date, the holder of this Note has waived
its right to give notice of its election to convert this Note pursuant to <U>Section
6(b)</U>.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Voluntary Prepayments</I>. Without the prior written consent of the holder of this
Note, Debtor may not prepay the principal amount of or interest on this Note in whole or in
part. Nothing herein contained shall in any way restrict the ability of the holder of this
Note to accept mandatory payments required to be made pursuant to <U>Section&nbsp;4(a)</U> or
convert the Note as herein provided.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">5. <U>Manner and Time of Payment</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Payment in Same Day Funds</I>. All payments by Debtor with respect to this Note shall
be made in same day funds and delivered to Purchaser by wire transfer to such accounts as
Purchaser may designate from time to time. Debtor shall receive credit for such funds on
the date received if Purchaser receives such funds by 5:00 p.m. (New York City time) on such
day. In the absence of timely receipt, such funds shall be deemed to have been paid by
Debtor on the next succeeding Business Day.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Payment on Non-Business Days</I>. If any payment on this Note shall become due on a
day that is not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension of time shall in such case be included in computing any interest due
in connection with such payment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">6. <U>Conversion of Note</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Optional Conversion upon a Qualified Equity Offering or After Time Certain</I>. During
the period commencing on the earlier of (i)&nbsp;the closing and funding of a Qualified Equity
Offering and (ii)&nbsp;June&nbsp;30, 2010 and ending as of last Business Day immediately preceding the
Maturity Date, the holder of this Note shall have the right to convert all or any portion of
the principal balance outstanding under this Note, together with any accrued and unpaid
interest, into fully paid and nonassessable shares of Common Stock. A holder of this Note
shall exercise its conversion rights under this <U>Section&nbsp;6(a)</U> by notifying Debtor
that it has elected to convert and specifying the portion of the principal balance
outstanding under this Note, together with any accrued and unpaid interest, to be converted
into shares of Common Stock (the amount of principal and interest so specified, the
&#147;<U>Voluntary Conversion Amount</U>&#148;), whereupon the Voluntary Conversion Amount shall
automatically covert into fully paid and nonassessable shares of Common Stock on the date
such notice is given by such holder. The number of shares of Common Stock that the holder
of this Note shall be entitled to receive upon such conversion pursuant to this <U>Section
6(a)</U> shall equal the quotient obtained by dividing (x)&nbsp;the Voluntary Conversion Amount
by (y) (A)&nbsp;the QEO Conversion Price, as adjusted pursuant to <U>Section&nbsp;7</U> hereof, if
the conversion right resulted from the event described in <U>Section&nbsp;6(a)(i)</U> above or
(B)&nbsp;the Issuance Date Conversion Price, as adjusted pursuant to <U>Section&nbsp;7</U> hereof, if
the conversion right resulted from the event described in <U>Section&nbsp;6(a)(ii)</U> above.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Optional Conversion Upon Change of Control</I>. Not less than thirty (30)&nbsp;days prior
to consummation of any Change of Control (or, if such Change of Control occurs without the
agreement or participation by Debtor, as soon as reasonably possible after Debtor obtains
knowledge of the occurrence of such Change of Control or of any
event, or the taking of any action, by any Person, that could reasonably be expected to
cause, or result in, a Change of Control), Debtor shall give the holder of this Note written
notice of such Change of Control, event or action, and the holder of this Note may at any
time prior to the date thirty (30)&nbsp;days after such Change of Control is consummated, notify
Debtor that it has elected to convert all or any portion of the principal balance
outstanding under this Note, together with any then accrued and unpaid interest (the amount
to be so converted, the &#147;<U>COC Conversion Amount</U>&#148;), whereupon the COC Conversion
Amount shall automatically convert into fully paid and nonassessable shares of Common Stock
on the date such notice is given by such holder. Any such notice by the holder may be
conditioned upon the consummation of the Change of Control. The number of shares of Common
Stock that the holder of this Note shall be entitled to receive upon such conversion
pursuant to this <U>Section&nbsp;6(c)</U> shall equal the quotient obtained by dividing (i)&nbsp;the
COC Conversion Amount by (ii)&nbsp;A) the QEO Conversion Price, as adjusted pursuant to
<U>Section&nbsp;7</U> hereof, if the Conversion Date with respect to such conversion occurs
after the occurrence of a Qualified Equity Offering or (B)&nbsp;the Issuance Date Conversion
Price, as adjusted pursuant to <U>Section&nbsp;7</U> hereof, if the Conversion Date with respect
to such conversion occurs before the occurrence of a Quality Equity Offering or if no
Qualified Equity Offering occurs during the QEO Period.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Certain Procedures</I>. The holder of this Note that is entitled to receive shares of
Common Stock issuable upon conversion of this Note pursuant to <U>Section&nbsp;6(a) or (b)</U>,
as applicable, shall be deemed to have converted this Note upon the giving of the holder&#146;s
notice of conversion pursuant to <U>Section&nbsp;6(a) or (b)</U> (as applicable, the
&#147;<U>Conversion Date</U>&#148;). As of the Conversion Date, the Voluntary Conversion Amount or
the COC Conversion Amount, as applicable, shall be converted automatically without any
further action by the holder and whether this Note is surrendered to Debtor at the QEO
Conversion Price or the Issuance Date Conversion Price (as each may be adjusted pursuant to
<U>Section&nbsp;7</U> hereof), as applicable; <U>provided</U>, <U>however</U>, that Debtor
shall not be obligated to issue certificates evidencing the shares of Common Stock issuable
upon such conversion until this Note is either delivered to Debtor, as hereinafter provided,
or the holder of this Note notifies Debtor, as hereinafter provided, that such Note have
been lost, stolen or destroyed and executes an agreement reasonably satisfactory to Debtor
to indemnify Debtor from any loss incurred by it in connection therewith. Thereupon, there
shall be issued and delivered to such holder, promptly at such office and in the name of
such holder as shown hereon, a certificate or certificates for the number of shares of
Common Stock into which the Note surrendered was convertible as of such Conversion Date, and
with respect to partial conversions, a note in the form of this Note for the remaining
principal balance outstanding, together with accrued and unpaid interest, not so converted.
Any person whose name the certificate for shares of Common Stock is to be issued shall be
considered to have become a holder of record of such shares of Common Stock as of the
closing of business on the applicable Conversion Date.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>No Fractional Shares</I>. No fractional shares of Common Stock shall be issued upon
conversion of the Voluntary Conversion Amount or the COC Conversion Amount, as applicable,
and the number of shares of Common Stock to be issued upon such conversion shall be rounded
down to the nearest whole share. Instead of any
fractional share of Common Stock which would otherwise be issuable upon conversion of
the Voluntary Conversion Amount or the COC Conversion Amount, as applicable, Debtor shall
pay a cash adjustment in respect of such fractional interest in an amount equal to the
product of (i)&nbsp;the fractional amount, multiplied by, (ii)&nbsp;the QEO Conversion Price or the
Issuance Date Conversion Price (as each may be adjusted pursuant to <U>Section&nbsp;7</U>
hereof), as applicable.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">7. <U>Adjustment to Conversion Price for Diluting Issues</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Special Definitions</I>. For purposes of this <U>Section&nbsp;7</U>, the following
definitions shall apply:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) &#147;<U>Additional Shares of Common</U>&#148; shall mean all shares of Common Stock
issued (or, pursuant to <U>Section&nbsp;7(c)</U>, deemed to be issued) by Debtor after
the Issuance Date, other than (1)&nbsp;shares of Common Stock issued or issuable to
officers, directors, employees or consultants to Debtor or its Subsidiaries pursuant
to a stock grant, stock option plan, stock purchase plan or other stock incentive
agreement (collectively, the &#147;<U>Plans</U>&#148;) approved by the Board of Directors;
(2)&nbsp;shares of Common Stock issued or issuable pursuant to exercise, conversion or
exchange of options, warrants or Convertible Securities outstanding as of the
Issuance Date, including the MML Bridge Notes, the MML Convertible Notes and the DI
Promissory Note, (3)&nbsp;shares of Common Stock issued or issuable in connection with a
business acquisition or combination approved by the Board, (4)&nbsp;shares of Common
Stock or Convertible Securities issued or issuable in a Qualified Equity Offering,
(5)&nbsp;shares of Common Stock issued or issuable for which an adjustment to the
Conversion Price is made pursuant to <U>Section&nbsp;7(f)</U>, (6)&nbsp;in the case of
determining adjustments to the QEO Conversion Price only, any shares of Common Stock
or Convertible Securities issued during the period commencing on the Issuance Date
and ending on the closing of a Qualified Equity Offering, or (7)&nbsp;upon the written
approval or consent of the holders of a majority of the then outstanding aggregate
principal balance of the MML Convertible Notes.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) &#147;<U>Convertible Securities</U>&#148; shall mean any evidences of indebtedness,
 shares (other than Common Stock) and all other securities convertible into or
exchangeable for Additional Shares of Common.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii) &#147;<U>Market Price</U>&#148; shall mean the value that would be paid by a
willing buyer to an unaffiliated willing seller in a transaction not involving
distress or necessity of either party, determined in good faith by the Board of
Directors.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv) &#147;<U>Options</U>&#148; shall mean rights, options or warrants to subscribe for,
purchase or otherwise acquire either Additional Shares of Common or Convertible
Securities.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>No Adjustment of Conversion Price</I>. No adjustment in the Conversion Price shall be
made in respect of the issuance of Additional Shares of Common unless the consideration per
share (determined pursuant to <U>Section&nbsp;7(a)(i)</U> for an Additional Share of Common
issued or deemed to be issued by Debtor is less than the Conversion Price, in effect on the
date of, and immediately prior to, such issuance.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(c) <I>Deemed Issue of Additional Shares of Common</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) <U>Options and Convertible Securities</U>. In the event Debtor at any time
or from time to time after the Issuance Date and while any portion of this Note is
outstanding shall issue any Options or Convertible Securities, other than Options or
Convertible Securities exempted pursuant to <U>Section&nbsp;7(a)(i)</U>, or shall fix a
record date for the determination of holders of any class of securities entitled to
receive any such Options or Convertible Securities, then the maximum number of
 shares (as set forth in the instrument relating thereto without regard to any
provisions contained therein for a subsequent adjustment of such number) of Common
Stock issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible
Securities, shall be deemed to be Additional Shares of Common issued as of the time
of such issue or, in case such a record date shall have been fixed, as of the close
of business on such record date. Provided that Additional Shares of Common shall
not be deemed to have been issued unless the consideration per share (determined
pursuant to <U>Section&nbsp;7(e)</U> hereof) of such Additional Shares of Common would
be less than the Conversion Price in effect on the date of and immediately prior to
such issue, or such record date, as the case may be, and provided further that in
any such case in which Additional Shares of Common are deemed to be issued:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(1)&nbsp;no further adjustment in the Conversion Price shall be made upon
the subsequent issuance of Convertible Securities or shares of Common Stock
upon the exercise of such Options or conversion or exchange of such
Convertible Securities;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(2)&nbsp;if such Options or Convertible Securities by their terms provide,
with the passage of time or otherwise, for any increase or decrease in the
consideration payable to Debtor, or increase or decrease in the number of
 shares of Common Stock issuable, upon the exercise, conversion or exchange
thereof, the Conversion Price computed upon the original issue thereof (or
upon the occurrence of a record date with respect thereto), and any
subsequent adjustments based thereon, shall, upon any such increase or
decrease becoming effective, be recomputed to reflect such increase or
decrease; <U>provided</U><I>, </I><U>however</U>, that no such adjustment of the
Conversion Price shall affect Common Stock previously issued upon conversion
of the Note;
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(3)&nbsp;if any such Options or Convertible Securities shall expire without
having been exercised or converted, the Conversion Price as
adjusted upon the issuance of such Options or Convertible Securities
(or upon the occurrence of a record date with respect thereto) and any
subsequent adjustments based thereon shall be readjusted to the Conversion
Price that would have been in effect had an adjustment been made on the
basis that the only Additional Shares of Common so issued were the
Additional Shares of Common, if any, actually issued or sold on the exercise
of such Options or the conversion of such Convertible Securities, and such
Additional Shares of Common, if any, were issued or sold for the
consideration actually received by Debtor upon such exercise, plus the
consideration, if any, actually received by Debtor for the granting of all
such Options, whether or not exercised, plus the consideration received for
issuing or selling the Convertible Securities actually converted plus the
consideration, if any, actually received by Debtor (other than by
cancellation of liabilities or obligations evidenced by such Convertible
Securities) on the conversion of such Convertible Securities; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(4)&nbsp;no readjustment pursuant to clauses (2)&nbsp;or (3)&nbsp;above shall have the
effect of increasing the Conversion Price to an amount which exceeds the
lower of (i)&nbsp;the Conversion Price on the original adjustment date
immediately prior to the adjustment), or (ii)&nbsp;the Conversion Price that
results from any actual issuance of Additional Shares of Common between the
original adjustment date and such readjustment date.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Adjustment of Conversion Price Upon Issuance of Additional Shares of Common</I>. In
the event Debtor shall issue Additional Shares of Common (including Additional Shares of
Common deemed to be issued pursuant to <U>Section&nbsp;7(c)</U>, without consideration or for a
consideration per share less than the Conversion Price in effect on the date or and
immediately prior to such issue, then and in such event, the Conversion Price in effect
immediately prior to the issuance or such Additional Shares of Common shall be reduced,
concurrent with such issue, to an amount (calculated to the nearest one hundredth of one
cent ($0.0001)) determined by multiplying the Conversion Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such
issuance plus the number of shares of Common Stock that the aggregate consideration
received by Debtor for such issuance would purchase at the Conversion Price, and the
denominator of which shall be the number of shares of Common Stock outstanding immediately
prior to such issuance plus the number of such Additional Shares of Common; <U>provided</U>
<U>that</U>, for the purposes of this <U>Section&nbsp;7(d)</U>, the number of shares of Common
Stock outstanding immediately prior to such issuance shall be calculated on a fully diluted
basis, as if all Convertible Securities had been fully converted into shares of Common Stock
immediately prior to such issuance and any outstanding Options (including those granted
pursuant to the Plans) had been fully exercised immediately prior to such issuance (and the
resulting securities fully converted into shares of Common Stock, if so convertible) as of
such date, but such calculation shall not include any Additional Shares of Common issuable
with respect to shares of Convertible Securities, or outstanding Options, solely as a result
of the adjustment of the Conversion Price resulting from the issuance of Additional Shares of
Common causing such adjustment.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) <I>Determination of Consideration</I>. For purposes of this <U>Section&nbsp;7</U>, the
consideration received by Debtor for the issuance of any Additional Shares of Common shall
be computed as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(i) <U>Cash and Property</U>. Such consideration shall:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(1)&nbsp;insofar as it consists of cash, be computed at the aggregate amount
of cash received by Debtor excluding amounts paid or payable for accrued
interest or accrued dividends;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(2)&nbsp;insofar as it consists of property other than cash, be computed at
the Market Price thereof at the time of such issue; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(3)&nbsp;in the event Additional Shares of Common are issued together with
other shares or securities or other assets of Debtor for consideration that
covers both, by the proportion of such consideration so received, computed
as provided in clauses (1)&nbsp;and (2)&nbsp;above, as determined in good faith by the
Board of Directors.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) <U>Options and Convertible Securities</U>. The consideration per share
received by Debtor for Additional Shares of Common deemed to have been issued
pursuant to <U>Section&nbsp;7(c)(i)</U>, relating to Options and Convertible Securities,
shall be determined by dividing:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(1)&nbsp;the total amount, if any, received or receivable by Debtor as
consideration for the issuance of such Options or Convertible Securities,
plus the minimum aggregate amount of additional consideration (as set forth
in the instruments relating thereto, without regard to any provisions
contained therein for a subsequent adjustment of such consideration) payable
to Debtor upon the exercise of such Options or the conversion or exchange of
such Convertible Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the
conversion or exchange of such Convertible Securities, by
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(2)&nbsp;the maximum number of shares of Common Stock (as set forth in the
instruments relating thereto, without regard to any provisions contained
therein for a subsequent adjustment of such number) issuable upon the
exercise of such Options or the conversion or exchange of such Convertible
Securities.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) <I>Adjustments for Dividends, Distributions, Subdivisions, Combinations or
Consolidation of Common Stock</I>.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) <U>Stock Dividends, Distributions or Subdivisions</U>. In the event
Debtor shall issue Additional Shares of Common pursuant to a stock dividend, stock
distribution or subdivision on shares of Common Stock, the Conversion Price in
effect immediately prior to such stock dividend, stock distribution or subdivision
shall concurrently with such stock dividend, stock distribution or subdivision, be
proportionately decreased.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) <U>Combinations or Consolidations</U>. In the event the outstanding
 shares of Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, the Conversion Price in
effect immediately prior to such combination or consolidation shall, concurrently
with the effectiveness of such combination or consolidation, be proportionately
increased.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) <I>No Impairment</I>. Debtor will not, by agreement, amendment to its Certificate of
Incorporation or otherwise, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by Debtor but will at all times in good
faith assist in the carrying out of all the provisions of this <U>Section&nbsp;7</U> and in the
taking of all such action as may be necessary or appropriate in order to protect the
conversion rights of the holders of this Note against impairment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h) <I>Certificate as to Adjustments</I>. Upon the occurrence or each adjustment or
readjustment of the Conversion Price pursuant to this <U>Section&nbsp;7</U>, Debtor, at its
expense, shall promptly compute such adjustment or readjustment in accordance with the terms
hereof and furnish to the holders of this Note a certificate setting forth such adjustment
or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. Debtor shall, upon the written request at any time of any holder of this Note,
furnish or cause to be furnished to such holder a like certificate setting forth (i)&nbsp;all
such adjustments and readjustments, (ii)&nbsp;the Conversion Price at the time in effect, and
(iii)&nbsp;the number of shares of Common Stock and the amount, if any, of other property which
at the time would be received upon the conversion of the Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">8.&nbsp;<U>Representations and Warranties of Debtor</U>. Debtor represents and warrants to
Purchaser as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Existence and Good Standing</I>. Debtor is a corporation duly organized, validly
existing, and in good standing under the Laws of Delaware. Debtor is duly qualified to
transact business and is in good standing as a foreign entity in each jurisdiction where the
nature and extent of its business and properties require due qualification and good
standing. Debtor (i)&nbsp;possesses all requisite authority, power, licenses, permits and
franchises to conduct its business as is now being, or is contemplated to be, conducted, and
(ii)&nbsp;and is in compliance with all applicable Laws, except where the failure to be in
compliance would not reasonably be expected to have a material adverse effect on Debtor&#146;s
ability to perform its obligations under this Note.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Authorization, Compliance, and No Default</I>. The execution and delivery by Debtor of
this Note and Debtor&#146;s performance of its obligations under this Note (i)&nbsp;are
within its corporate power, (ii)&nbsp;have been duly authorized by all necessary corporate
action, (iii)&nbsp;do not require action by, or filing with, or consent of, any Governmental
Authority, (iv)&nbsp;do not violate any provision of Debtors&#146; organizational documents, (v)&nbsp;do
not violate any material provision of Law or any order of any Governmental Authority, in
each case applicable to Debtor, and (vi)&nbsp;do not violate any material agreements to which it
is a party.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Enforceability</I>. This Note has been executed and delivered by, and is the legal and
binding obligation of, Debtor and is enforceable against Debtor in accordance with its
terms, except as enforceability may be limited by applicable Debtor Relief Laws and general
principles of equity.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>SEC Filings</I>. Debtor has heretofore filed all forms, reports, registration
statements, definitive proxy statements, schedules and other materials with the Securities
and Exchange Commission (&#147;<U>SEC</U>&#148;) required to be filed pursuant to the Exchange Act or
other federal securities Laws since July&nbsp;31, 2007 (the &#147;<U>SEC Reports</U>&#148;). As of their
respective dates, or, if applicable, the dates such SEC Reports were amended prior to the
date hereof, the SEC Reports (including, without limitation, all financial statements
included therein, exhibits and schedules thereto and documents incorporated by reference
therein) complied in all material respects with all applicable requirements (including but
not limited to the Sarbanes-Oxley Act to the extent then in effect and applicable) of the
Securities Act or the Exchange Act, as applicable, and other federal securities Laws as of
the date thereof and did not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not
misleading; <U>provided</U>, <U>however</U>, that no representation is made as to the
accuracy of any financial projections or forward looking statements, or the completeness of
any information furnished by the Debtor to the SEC solely for the purposes of complying with
Regulation&nbsp;FD promulgated by the SEC under the Exchange Act or other information that is
treated by SEC regulations as not being &#147;filed&#148; for the purposes of the Exchange Act.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.&nbsp;<U>Representations and Warranties of Purchaser</U>. Purchaser represents and warrants to
the Debtor as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Authorization; Enforcement</I>. The Purchaser has the requisite power and authority to
enter into this Note and to consummate the transactions contemplated hereby. The Purchaser
has taken all necessary action to authorize the execution and delivery of this Note. Upon
the execution and delivery of this Note, this Note shall constitute a valid and binding
obligation of the Purchaser enforceable in accordance with its terms, except (i)&nbsp;as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar Laws affecting creditors&#146; and contracting parties&#146; rights generally,
(ii)&nbsp;as enforceability may be subject to general principles of equity and (iii)&nbsp;as rights to
indemnity and contribution may be limited by applicable securities Laws or public policy
underlying such Laws.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Investment Purpose</I>. The Purchaser is purchasing the Note for its own account for
investment and not with a present view toward the public sale or distribution thereof and
has no intention of selling or distributing or any arrangement or understanding with any
other persons regarding the sale or distribution of the Note or any shares of Common Stock
issuable on conversion of the Note (&#147;<U>Conversion Shares</U>&#148;), except as contemplated by
this Note and in compliance with the Securities Act. The Purchaser will not, directly or
indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) this Note or Conversion Shares
except in accordance with the provisions of this Note and in accordance with the Securities
Act. In making the representation herein, however, except as otherwise provided by this
Note, the Purchaser does not agree to hold the Note or Conversion Shares for any minimum or
other specified term and reserves the right to dispose of this Note or Conversion Shares at
any time in compliance with the Securities Act and the terms of this Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Purchaser Status</I>. At the time Purchaser was offered the Note, it was, and at the
date hereof it is, an &#147;accredited investor&#148; as defined in Rule 501(a) under the Securities
Act.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Reliance on Exemptions</I>. The Purchaser understands that the Note is being offered
and sold to it in reliance upon specific exemptions from or non-application of the
registration requirements of United States federal and state securities Laws and that the
Debtor is relying upon the truth and accuracy of, and the Purchaser&#146;s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of the Purchaser
set forth herein in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire the Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(e) <I>Acknowledgment of Risk</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;The Purchaser acknowledges and understands that its investment in the Note
and Conversion Shares involves a significant degree of risk, including, without
limitation, (A)&nbsp;an investment in the Debtor is speculative, and only Purchasers who
can afford the loss of their entire investment should consider investing in the
Debtor and the Note and Conversion Shares; (B)&nbsp;the Purchaser may not be able to
liquidate its investment; (C)&nbsp;transferability of the Note and Conversion Shares may
be limited; (v)&nbsp;in the event of a disposition of this Note or the Conversion Shares,
the Purchaser could sustain the loss of its entire investment; and (D)&nbsp;the Debtor
has not paid any dividends on its Common Stock since inception and does not
anticipate the payment of dividends in the foreseeable future; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;The Purchaser is able to bear the economic risk of holding this Note and
the Conversion Shares for an indefinite period, and has knowledge and experience in
financial and business matters such that it is capable of evaluating the risks of
the investment in the Note and the Conversion Shares.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(f) <I>Restrictions on Transfer and Lack of Registration</I>. The Purchaser understands that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;this Note and the Conversion Shares have not been and are not being
registered under the Securities Act or any applicable state securities Laws and,
consequently, the Purchaser may have to bear the risk of owning the Note or
Conversion Shares for an indefinite period of time because the Note or Conversion
Shares may not be transferred unless (i)&nbsp;the sale of this Note or Conversion Shares
is registered pursuant to an effective registration statement under the Securities
Act; (ii)&nbsp;the Purchaser has delivered to the Debtor an opinion of counsel (in form,
substance and scope customary for opinions of counsel in comparable transactions) to
the effect that the Note or Conversion Shares to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration; or (iii)&nbsp;the
Conversion Shares are sold or transferred pursuant to Rule&nbsp;144; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;neither the Debtor nor any other person is under any obligation to
register the sale of the Note or Conversion Shares under the Securities Act or any
state or foreign securities Laws or to comply with the terms and conditions of any
exemption thereunder.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(g) <I>Legends</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;The Purchaser understands that the certificates representing the Conversion
Shares will bear a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of the certificates for such
Conversion Shares, as applicable):
</DIV>

<DIV align="justify" style="margin-top: 10pt; margin-left:8%; margin-right:0%; font-size: 10pt; text-indent: 4%">THE SHARES OF COMMON STOCK OF ARGYLE SECURITY, INC. (THE
&#147;COMPANY&#148;) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE OF THE UNITED STATES IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE &#147;SECURITIES ACT&#148;) OR REGULATIONS THEREUNDER,
AND ACCORDINGLY, MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY SATISFACTORY TO THE
COMPANY.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;The Purchaser may request that the Debtor remove, and the Debtor agrees to
authorize the removal of any legend from the Conversion Shares (i)&nbsp;following any
sale of the Conversion Shares pursuant to an effective registration statement, or
(ii)&nbsp;if such Conversion Shares are eligible for sale under Rule&nbsp;144 without volume
limitations or under any no-action letter issued by the SEC (it being understood
that the Debtor may obtain an opinion of counsel with respect to such removal of
legend). Following the time a legend is no longer required for the Conversion
Shares hereunder, the Debtor will, no later than five (5)&nbsp;Business Days following
the delivery by a Purchaser to the Debtor or the Debtor&#146;s transfer agent of a
legended certificate representing such shares, accompanied by such additional
information as the Debtor or the Debtors transfer agent may reasonably request,
deliver or cause to be delivered to such Purchaser a certificate representing such
 shares that is free from all restrictive and other legends.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;Notwithstanding anything herein to the contrary, the Debtor acknowledges
and agrees that the Debtor will not require an opinion of counsel in connection with
the transfer of this Note or Conversion Shares by a Purchaser to a Person that is an
&#147;accredited investor&#148; as defined in Rule 501(a) under the Securities Act and which
transfer involves (i)&nbsp;a partnership transferring to its partners or former partners
in accordance with partnership interests; (ii)&nbsp;a corporation transferring to a
wholly-owned subsidiary or a parent corporation that owns all of the capital stock
of such Purchaser; (iii)&nbsp;a limited liability company transferring to its members or
former members in accordance with their interest in the limited liability company;
or (iv)&nbsp;an affiliated investment fund transferring to another affiliated investment
fund; <I>provided that </I>in each case the transfer is effected in accordance with
applicable securities Laws and the transferee agrees in writing, in connection with
a transfer of the Note to be subject to the terms of this to the same extent as if
the transferee were the Purchaser hereunder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.&nbsp;<U>Affirmative Covenants</U>. So long as the Note shall remain unpaid or unsatisfied,
Debtor shall:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(a) <I>Notices</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(i)&nbsp;Promptly notify Purchaser of the occurrence of any Event of Default.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;Promptly notify Purchaser of any matter that has resulted or could
reasonably be expected to result in a material adverse effect upon the business,
operations or properties of Debtor or any of its Subsidiaries, including (A)&nbsp;breach
or non performance of, or any default under, a material agreement of Debtor; (B)&nbsp;any
material dispute, litigation, investigation, proceeding or suspension between Debtor
and any Governmental Authority; or (C)&nbsp;the commencement of, or any material
development in, any litigation or proceeding affecting Debtor.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;Promptly notify Purchaser of the occurrence of any (A)&nbsp;sale or
disposition of material assets of Debtor; (B)&nbsp;sale, transfer, or assignment of any
equity interests held by Debtor in its Subsidiaries;; (C)&nbsp;any Change of Control or
any event, or the taking of any action by any Person, that could reasonably be
expected to cause a Change of Control or (D; incurrence or issuance of any
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;Notify Purchaser of any agreement or expression of intent to take any of
the actions described in <U>Section&nbsp;10(a)(iii)</U> hereof (A)&nbsp;at least 30&nbsp;days
prior to the consummation of such actions or, (B)&nbsp;if such action is a Change of
Control that occurs without the consent, agreement or knowledge of Debtor, as soon
as reasonably possible after Debtor obtains knowledge of the occurrence of such
Change of Control or of any event, or the taking of any action, by any Person that
could reasonably be expected to cause, or result in, a Change of Control.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(v)&nbsp;Notify Purchaser if Debtor authorizes or otherwise proposes to (A)&nbsp;declare
any dividend or distribution upon the Common Stock, whether in cash, property, stock
or other securities, whether a regular cash dividend and whether out or earnings or
earned surplus, other than distributions to former employees of Debtor or its
Subsidiaries in connection with the repurchase of shares of such former employees
pursuant to terms approved by the Board of Directors; (B)&nbsp;offer for subscription to
the holders of any class or series of its capital stock any additional shares of
capital stock of any class or series of the Debtor or any other rights (other than
in connection with the Qualified Equity Offering during the QEO Period); (C)&nbsp;effect
any reclassification or recapitalization of any of its capital stock; or (D)&nbsp;merge
or consolidate with or into any other corporation or other entity, or sell, lease or
convey all or substantially all its property or business, or liquidate, dissolve or
wind up. Such notification shall be given:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(1)&nbsp;at least twenty (20)&nbsp;days prior to the date on which a record shall
be taken for such dividend, distribution or subscription rights (and
specifying the date on which the holders of Common Stock shall be entitled
thereto) or for determining rights to vote in respect of the matters
referred to in subclauses (C)&nbsp;and (D)&nbsp;of this <U>Section&nbsp;10(a)(v)</U>; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 3%">(2)&nbsp;in the case of the matters referred to in subclauses (C)&nbsp;and (D)&nbsp;of
this <U>Section&nbsp;10(a)(v)</U>, at least twenty (20)&nbsp;days prior to the date
of a stockholders&#146; meeting or at which a vote on such matters shall take
place (or written consent of stockholders executed in lieu thereof) (and
specifying the date on which the holders of Common Stock shall be entitled
to exchange their Common Stock for securities or other property deliverable
upon the occurrence or such event and the amount of the securities or other
property deliverable upon such event).
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Each notice pursuant to this <U>Section&nbsp;10(a)</U> shall be accompanied by a
statement of a Responsible Officer of Debtor setting forth details of the occurrence
referred to therein and stating what action Debtor has taken and proposes to take
with respect
thereto. In the case of a Notice pursuant to <U>Section&nbsp;10(a)(iv)</U>, Debtor (i)
shall provide to Purchaser copies of any related agreements or expressions of intent
with respect to the related transaction, other relevant information regarding the
transaction and the identity and other relevant information regarding the
counterparty (or intended counterparty) to such transaction and the holder of this
Note shall be subject to the same terms or any confidentiality obligations to which
Debtor is required to be subject and (ii)&nbsp;from time to time prior to the
consummation of such transaction shall advise the Purchaser of all material
developments regarding such transaction (including at least five Business Days&#146;
notice of the closing date of the transaction). Each notice pursuant to <U>Section
10(a)</U> shall describe with particularity any and all provisions of the Note that
have been breached.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Payment of Obligations</I>. Pay and discharge, as the same shall become due and
payable, all its material obligations and liabilities, including (i)&nbsp;all tax liabilities,
assessments and governmental charges or levies upon it or its properties or assets, unless
the same are being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by Debtor, (ii)&nbsp;all
lawful claims which, if unpaid, would by law become a material Lien upon its property, and
(iii)&nbsp;all material Indebtedness, as and when due and payable, but subject to any
subordination provisions contained in any instrument or agreement evidencing or relating to
such Indebtedness or unless such Indebtedness is being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by Debtor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(c) <I>Compliance with Laws</I>. Comply in all material respects with all applicable Laws.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Use of Proceeds</I>. Use the proceeds of this Note for Debtor&#146;s working capital and
general corporate expenses.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) <I>Compliance Certificates</I>. No later than forty-five (45)&nbsp;days after the end of each
of the first three quarters of Debtor&#146;s fiscal year and no later than ninety (90)&nbsp;days after
the end of Debtor&#146;s fiscal year, Debtor shall deliver to Purchaser a fully and properly
completed compliance certificate or similar report required to be provided by ISI to the
holders of the Indebtedness under the Senior Loan Agreement and the Senior Note and Warrant
Purchase Agreement) signed by each of ISI&#146;s chief executive officer, chief operating officer
and chief financial officer as to compliance with the financial covenants set out in
<U>Section&nbsp;12</U> below.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">11.&nbsp;<U>Negative Covenants</U>. So long as the Note shall remain unpaid or unsatisfied,
Debtor shall not, nor shall it permit any Subsidiary to, directly or indirectly:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(a) <I>Debt</I>. Create, incur, assume or suffer to exist any Indebtedness, except:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(i)&nbsp;the Senior Indebtedness;
</DIV>
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</DIV>

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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(ii)&nbsp;the MML Bridge Notes;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(iii)&nbsp;the MML Convertible Notes;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(iv)&nbsp;Indebtedness of ISI or any Subsidiary of ISI to the Senior Creditors;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(v)&nbsp;Indebtedness permitted to be incurred by ISI and its Subsidiaries pursuant
to any agreement between ISI and/or its Subsidiaries and any of the Senior
Creditors; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(vi)&nbsp;Indebtedness of Debtor or any Subsidiary to Debtor or a Subsidiary.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) <I>Liens</I>. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than the following (the
&#147;<U>Permitted Liens</U>&#148;).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;Liens in favor of the Senior Creditors securing all or any portion of the
Senior Indebtedness and Liens securing all Indebtedness of ISI or any Subsidiary of
ISI to any of the Senior Creditors;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;Liens to secure the performance of statutory obligations, surety or appeal
bonds, bid bonds, payment and performance bonds or other obligations of a like
nature incurred in the ordinary course of business of such Person;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(iii)&nbsp;Liens existing on the Issuance Date;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;Liens for statutory Liens of landlords, and carriers&#146;, warehousemen&#146;s,
mechanics&#146;, suppliers&#146;, materialmen&#146;s, repairmen&#146;s or other similar Liens arising in
the ordinary course of business, with respect to amounts that either (A)&nbsp;are not yet
delinquent or (B)&nbsp;are being diligently contested in good faith by appropriate
proceedings, <U>provided</U>, <U>however</U>, that, with respect to all of the
Liens listed in this clause (iv), any reserve or other appropriate provision as
shall be required in conformity with GAAP shall have been made therefor;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(v)&nbsp;easements, rights-of-way, navigational servitude, restrictions, minor
defects or irregularities in title and other similar charges or encumbrances which
do not interfere in any material respect with the ordinary conduct of business of
Debtor;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(vi)&nbsp;licenses of patents, trademarks and other intellectual property rights
granted by Debtor in the ordinary course of business;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(vii)&nbsp;any judgment attachment or judgment Lien not constituting an Event of
Default;
</DIV>
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</DIV>

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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(viii)&nbsp;Liens incurred or deposits made in the ordinary course of business in
connection with workers&#146; compensation, unemployment insurance and other types of
social security, liability insurance premiums or to secure the performance
of tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, trade contracts, performance and return-of-money bonds and
other similar obligations (excluding, however, obligations for the payment of
borrowed money), incurred in the ordinary course of business so long as no
foreclosure, sale or similar proceedings have been commenced with respect to any
portion of the security on account thereof, (x)&nbsp;for amounts not yet overdue or (y)
for amounts that are overdue and that (in the case of any such amounts overdue for a
period in excess of 30&nbsp;days) are being contested in good faith by appropriate
proceedings, so long as such reserves or other appropriate provisions, if any, as
shall be required by GAAP shall have been made for any such contested amounts; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ix)&nbsp;Liens for taxes, assessments or governmental charges or claims the payment
of which is not, at the time due and payable or which is being contested in good
faith by appropriate governmental proceedings promptly instituted and diligently
contested, so long as (A)&nbsp;such reserve or other appropriate provision, if any, as
shall be required in conformity with GAAP shall have been made therefor and (B)&nbsp;in
case of any charge or claim which has or may become a Lien against any portion of
Debtor&#146;s property, such contest proceedings operate to stay the sale of any portion
of such property or to satisfy such charge or claim.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">12.&nbsp;<U>Financial Covenants</U>. So long as any portion of the principal amount of this Note
remains outstanding Debtor covenants and agrees that it shall and shall cause each of its
Subsidiaries to perform and comply with all covenants in this <U>Section&nbsp;12</U> applicable to such
Person:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a) <I>Maximum Capital Expenditures</I>. ASO, on a consolidated basis, shall not make Capital
Expenditures in excess of $250,000 per fiscal quarter.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(b) <I>Minimum Fixed Charge Coverage</I>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i)&nbsp;While a Payment Blockage Period is not in effect under, and as defined in,
the Senior Subordination Agreement (as defined in the Senior Note and Warrant
Purchase Agreement), or any other subordination agreement, as of the end of each of
its fiscal quarters, ASO shall maintain a ratio (the &#147;<U>Fixed Charge Coverage
Ratio</U>&#148;) of (A)&nbsp;for the applicable reporting period EBITDA <U>minus</U> the sum
of all income taxes paid in cash by ASO and all Capital Expenditures which are not
financed with Funded Debt, to (B)&nbsp;the sum for such reporting period of (1)&nbsp;cash
Interest Expense paid <U>plus</U> (2)&nbsp;required payments of principal of Total Debt
(including the Facility C Loans (as defined in the Senior Loan Agreement), but
excluding the Facility A Loans and Facility B Loans (each as defined in the Senior
Loan Agreement)), of not less than 0.81 to 1.00 for the fiscal quarter ending March
31, 2010 and 0.90 to 1.00 for each fiscal quarter ending June&nbsp;30, 2010 and
thereafter. For each of the fiscal quarters commencing with the fiscal quarter
ending December&nbsp;31, 2009 through the fiscal quarter ending June&nbsp;30, 2010, the Fixed
Charge Coverage Ratio shall be based on cumulative reporting beginning October&nbsp;1,
2009 for such periods, and for each of
the fiscal quarters ending September&nbsp;30, 2010 and thereafter, the Fixed Charge
Coverage Ratio shall be measured on a trailing twelve (12)&nbsp;month basis.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;Until January&nbsp;1, 2010 or otherwise while a Payment Blockage Period is in
effect under the Senior Subordination Agreement, or any other subordination
agreements, as of the end of each of its fiscal quarters, ASO shall maintain a ratio
of (A)&nbsp;for the applicable reporting period EBITDA <U>minus</U> the sum of all
income taxes paid in cash by ASO and all Capital Expenditures which are not financed
with Funded Debt, to (B)&nbsp;the sum for such reporting period of (1)&nbsp;cash Interest
Expense paid <U>plus</U> (2)&nbsp;required payments of principal of Total Debt
(including the Facility C Loans, but excluding the Facility A Loans and Facility B
Loans), provided, however, that cash Interest Expense and principal paid by Debtor
on behalf of ISI on Senior Debt and Subordinated Debt (each as defined in the Senior
Loan Agreement) shall be deducted from the sum of cash Interest Expense and
principal payments on Total Debt, of not less than 0.81 to 1.00 for the fiscal
quarter ending December&nbsp;31, 2009, of not less than 0.81 to 1.00 for the fiscal
quarter ending March&nbsp;31, 2010 and of not less than 0.90 to 1.00 for the fiscal
quarter ending June&nbsp;30, 2010 and thereafter. For each of the fiscal quarters
commencing with the fiscal quarter ending December&nbsp;31, 2009 through the fiscal
quarter ending June&nbsp;30, 2010, the Fixed Charge Coverage Ratio shall be based on
cumulative reporting beginning October&nbsp;1, 2009 for such periods, and for each of the
fiscal quarters ending September&nbsp;30, 2010 and thereafter, the Fixed Charge Coverage
Ratio shall be measured on a trailing twelve (12)&nbsp;month basis.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) <I>Senior Debt to EBITDA</I>. As of the end of each of its fiscal quarters, ASO shall
maintain a ratio of consolidated Senior Debt to consolidated trailing twelve (12)&nbsp;month
EBITDA of not greater than
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">2.42 to 1.00 for the fiscal quarters ending
December&nbsp;31, 2009 and March&nbsp;31, 2010,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">3.27 to 1.00 for the fiscal quarter ending June
30, 2010, and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">2.42 to 1.00 for the fiscal quarter ending September&nbsp;30, 2010 and for
each of the fiscal quarters ending thereafter.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) <I>Total Debt to EBITDA</I>. As of the end of each of its fiscal quarters, ASO shall
maintain a ratio of consolidated Total Debt <U>plus</U> an amount equal to undrawn Letters
of Credit (as defined in the Loan and Security Agreement) under the Facility A Loan
Commitment (as defined in the Loan and Security Agreement) and any undrawn Letters of Credit
(as defined in the Loan and Security Agreement) under the Facility B Loan Commitment (as
defined in the Loan and Security Agreement) to consolidated trailing twelve (12)&nbsp;month
EBITDA of not greater than
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">5.15 to 1.00 for the fiscal quarter ending
December&nbsp;31, 2009,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">6.36 to 1.00 for the fiscal quarter ending
March&nbsp;31, 2010,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">9.08 to 1.00 for the fiscal quarter ending
June&nbsp;30, 2010,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">4.24 to 1.00 for the fiscal quarter ending September&nbsp;30, 2010, and for
each of the fiscal quarters ending thereafter.</DIV></TD>
</TR>

</TABLE>
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For purposes of this <U>Section&nbsp;12</U>, the following terms have the following meanings:
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>ASO</U>&#148; means collectively, ISI and its Subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Capital Expenditures</U>&#148; means, with respect to any period, the aggregate of
all expenditures (whether paid in cash or accrued as liabilities and including
expenditures for Capital Lease Obligations, but excluding any expenditures for any
Green Wing Lease, as defined in the Senior Note and Warrant Purchase Agreement) by
ASO during such period that are required by GAAP, consistently applied, to be
included in or reflected by the property, plant and equipment or similar fixed asset
accounts (or intangible accounts) subject to amortization on the balance sheet of
ASO.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Capital Lease</U>&#148; means, with respect to any Person, any lease of any property
(whether real, personal, or mixed) by such Person as lessee that, in accordance with
GAAP, would be required to be classified and accounted for as a capital lease on a
balance sheet of such Person.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Capital Lease Obligations</U>&#148; means, with respect to any Capital Lease of any
Person, the amount of the obligation of the lessee thereunder that, in accordance
with GAAP, would appear on the balance sheet of such lessee in respect of such
Capital Lease.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Consolidated Net Income</U>&#148; means, for any Person, the consolidated net income
of such Person during the measuring period, determined in accordance with GAAP,
excluding the following: (a)&nbsp;the income (or deficit) of any Person accrued prior to
the date it became a Subsidiary of, or was merged or consolidated into, such Person;
(b)&nbsp;the income (or deficit) of any person (other than a Subsidiary) in which such
Person has an ownership interest except to the extent any such income has actually
been received by such Person or any of its Subsidiaries in the form of cash
dividends or distributions; (c)&nbsp;the undistributed earnings of any Subsidiary of such
Person to the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary is not at the time permitted by the terms of any
contractual obligation or requirement of law applicable to such Subsidiary; (d)&nbsp;any
restoration to income of any contingency reserve, except to the extent that
provision of such reserve was made out of income accrued during such period; (e)&nbsp;any
net gain attributable to the write-up of any asset: (f)&nbsp;any net gain on the
collection of proceeds of life insurance policies; (g)&nbsp;any net gain arising from the
acquisition of any securities, or the extinguishment of any Indebtedness, of such
Person or any of its Subsidiaries; (h)&nbsp;in the case of a successor to such Person or
any of its Subsidiaries by consolidation or merger or as a transferee of its assets,
any earnings of such successor prior to such consolidation, merger or transfer of
assets; and (i)&nbsp;any deferred credit representing the excess of equity in any
Subsidiary of such Person at the date of acquisition of such Subsidiary over the
cost to such Person of the investment in such Subsidiary.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Contingent Obligations</U>&#148; means, as applied to any Person, any direct or
indirect liability of that Person: (a)&nbsp;with respect to Indebtedness guaranteed by
any Person and with respect to any Indebtedness, lease, dividend or other obligation
of another Person if the purpose or intent of the Person incurring such liability,
or the effect thereof, is to provide assurance to the oblige of such liability that
such liability will be paid or discharged, or that any agreement relating thereto
will be complied with, or that the holders of such liability will be protected (in
whole or in part) against loss with respect thereto: (b)&nbsp;with respect to any letter
of credit issued for the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings; (c)&nbsp;under any foreign exchange
contract, currency swap agreement, interest rate swap agreement or other similar
agreement or arrangement designed to alter the risks of that Person arising from
fluctuations in currency values or interest rates; (d)&nbsp;any agreement, contract or
transaction involving commodity options or future contracts; (e)&nbsp;to make take-or-pay
or similar payments if required regardless of nonperformance by any other party or
parties to an agreement; or (f)&nbsp;pursuant to any agreement to purchase, repurchase or
otherwise acquire any obligation or any property constituting security therefor, to
provide funds for the payment or discharge of such obligation or to maintain the
solvency, financial condition or any balance sheet item or level of income of
another. The amount of any Contingent Obligation shall be equal to the amount of
the obligation so guaranteed or otherwise supported or, if not a fixed and
determined amount, the maximum amount so guaranteed.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>EBITDA</U>&#148; means, for any period, the sum for such period of: (i)&nbsp;Consolidated
Net Income, plus (ii)&nbsp;Interest Expense, plus (iii)&nbsp;federal and state income taxes
and the Texas Margin Tax, plus (iv)&nbsp;depreciation and amortization, plus (v)&nbsp;non-cash
management compensation expense, plus (vi)&nbsp;certain one-time charges and expenses of
ASO permitted by PrivateBank, in its sole discretion, after written notice from ASO,
plus (vii)&nbsp;all other non-cash charges.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Funded Debt</U>&#148; means, with respect to any Person, without duplication, all
Indebtedness for borrowed money evidenced by notes, bonds, debentures, or similar
evidences of Indebtedness and that by its terms matures more that one (1)&nbsp;year from,
or is directly or indirectly renewable or extendible at such Person&#146;s option under a
revolving credit or similar agreement obligating the lender or lenders to extend
credit over a period of more than one (1)&nbsp;year from the date of creation thereof,
and specifically including Capital Lease Obligations, current maturities of long
term debt, revolving credit and short term debt extendible beyond one (1)&nbsp;year at
the option of the debtor, and also including the Senior Indebtedness.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Indebtedness</U>&#148; means, with respect to any Person, without duplication (a)
all indebtedness of such Person for borrowed money or for the deferred purchase
price of property payment for which is deferred six (6)&nbsp;months or more, but
excluding obligations to trade creditors incurred in the ordinary course of business
that are unsecured and not overdue by more than six (6)&nbsp;months unless being
contested in good faith; (b)&nbsp;all reimbursement and other obligations with respect to
letters of credit, banker&#146;s acceptances and surety bonds, whether or not matured;
(c)&nbsp;all obligations evidenced by notes, bonds, debentures or similar instruments;
(d)&nbsp;all indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even though
the rights and remedies of the seller or lender under such agreement in the event of
default are limited to repossession or sale of such property); (e)&nbsp;all Capital Lease
Obligations and the present value of future rental payments under all synthetic
leases; (f)&nbsp;all obligations of such Person under commodity purchase or option
agreements or other commodity price hedging arrangements, in each case whether
contingent or matured; (g)&nbsp;all obligations of such Person under any foreign exchange
contract, currency swap agreement, interest rate swap, cap or collar agreement or
other similar agreement or arrangement designed to alter the risks of that Person
arising from fluctuations in currency values or interest rates, in each case whether
contingent or matured; (h)&nbsp;all Indebtedness refereed to above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in property or other assets (including
accounts and contract rights ) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness; and (i) &#147;earnouts&#148;
and similar payment obligations.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Interest Expense</U>&#148; means, for any period, the sum of: (a)&nbsp;all interest,
charges and related expenses payable with respect to that fiscal period to a lender
in connection with borrowed money or the deferred purchase price of assets that are
treated as interest in accordance with GAAP, plus (b)&nbsp;the portion of Capital Lease
Obligations with respect to that fiscal period that should be treated as interest in
accordance with GAAP, plus (c)&nbsp;all charges paid or payable (without duplication)
during that period with respect to any Hedging Agreements (as defined in the Senior
Loan Agreement).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">&#147;<U>Total Debt</U>&#148; means all Indebtedness of ASO, determined on a consolidated
basis, excluding (a)&nbsp;Contingent Obligations (except to the extent constituting
Contingent Obligations in respect of the Indebtedness of a Person other than ISI or
any Subsidiary of ISI), (b)&nbsp;Hedging Obligations (as defined in the Senior Loan
Agreement), (c)&nbsp;Indebtedness of ISI to Subsidiaries and Indebtedness of Subsidiaries
to ISI or to other Subsidiaries, and (d)&nbsp;contingent obligations in respect to
undrawn Letters of Credit (as defined in the Senior Loan Agreement).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">13.&nbsp;<U>Subordination</U>. The payment of any amounts owing under this Note, including
principal and interest (other than PIK Interest) (&#147;<U>Subordinated Indebtedness</U>&#148;), is
subordinated to the payment of any amounts owing (including interest accruing after the filing of a
petition initiating any proceeding pursuant to any bankruptcy law with respect to Debtor) under the
Senior Indebtedness on the following terms and conditions:
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;No payment of principal, interest (other than PIK Interest) or any other amounts in
respect of this Note shall be paid by Debtor on the Subordinated Indebtedness (whether
pursuant to the terms hereof or upon acceleration or otherwise) unless, at the time of any
such payment, all of the Senior Indebtedness shall have been paid in full in cash.
Notwithstanding the fact that the Subordinated Indebtedness becomes due prior to the Senior
Indebtedness, at the Maturity Date of the Subordinated Indebtedness the Debtor shall not
make and holder of this Note shall not accept any payment on the Subordinated Indebtedness
if, upon the Maturity Date of the Subordinated Indebtedness, Debtor has not paid in full all
outstanding obligations arising under the Senior Indebtedness. Notwithstanding any
provision of this <U>Section&nbsp;13</U> or any other provision of this Note to the contrary,
the unpaid principal balance due under this Note, together with any then accrued but unpaid
interest, may be converted into Common Stock pursuant to the terms of <U>Section&nbsp;6</U>, and
the holder of this Note may take any action to enforce its rights to such conversion.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;Upon any distribution to creditors of Debtor in a liquidation or dissolution of
Debtor or in a bankruptcy, reorganization, insolvency, receivership, or other similar
proceeding with respect to Debtor or any of its property: (i)&nbsp;the holders of the Senior
Indebtedness will be entitled to receive payment in full in cash, of all amounts payable
under or in respect of the Senior Indebtedness (including interest accrued after the
commencement of such proceeding) before the holders of the Subordinated Indebtedness will be
entitled to receive from Debtor or its assets any payment under or in respect of the
Subordinated Indebtedness (other than shares of Common Stock to be received by the holder of
this Note upon a conversion of this Note pursuant to <U>Section&nbsp;6</U> hereof), and (ii)
until the holders of the Senior Indebtedness have received such payment in full in cash, any
distribution from Debtor or its assets to which the holders of the Subordinated Indebtedness
would otherwise be entitled (other than shares of Common Stock to be received by the holder
of this Note upon a conversion of this Note pursuant to <U>Section&nbsp;6</U> hereof) shall be
made to the holders of the Senior Indebtedness (or one or more trustees or representatives
acting on their behalf). Subject to the prior payment in full of all Senior Indebtedness
(or provision made for payment in full in cash of all Senior Indebtedness), the holders of
the Subordinated Indebtedness shall be subrogated to the rights of the holders of the Senior
Indebtedness to receive payments or distribution of assets of Debtor applicable to the
Senior Indebtedness until all amounts owing on the Subordinated Indebtedness shall be paid
in full.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c)&nbsp;The holders of the Subordinated Indebtedness (or a trustee, representative, or
agent acting on its behalf) will be obligated to hold in trust for, and to pay over promptly
to, the holders of the Senior Indebtedness (or one or more trustees, representatives, or
agents acting on their behalf) all payments and distributions received by the holders of the
Subordinated Indebtedness (i)&nbsp;in contravention of the restrictions contained in the
preceding clauses (a)&nbsp;and (b)&nbsp;of this <U>Section&nbsp;13</U> or (ii)&nbsp;as a result of any Lien in
violation of clause (d)&nbsp;of this <U>Section&nbsp;13</U>; <U>provided</U>, <U>however</U>, that
notwithstanding such restrictions, the holders of the Subordinated Indebtedness shall be
entitled to receive and to retain any and all payments (i)&nbsp;made in securities of Debtor
provided the same are subordinated to the Senior Indebtedness at least to the same extent as
the Subordinated Indebtedness or (ii)&nbsp;made in accordance with any relevant court order respecting the
subordination provided for herein.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d)&nbsp;The holders of the Subordinated Indebtedness will not create, assume, or suffer to
exist any Lien, security interest, or assignment of collateral securing the repayment of the
Subordinated Indebtedness. Any such judgment Lien, and any other Lien, security interest,
or assignment existing in violation of the foregoing shall be fully subordinate to any Lien,
security interest, or assignment in favor of the holders of the Senior Indebtedness which
secures any of the Senior Indebtedness. At the request of the holders of the Senior
Indebtedness, the holders of the Subordinated Indebtedness and Debtor will take any and all
steps necessary to fully effect the release of any such Lien, security interest, assignment,
or collateral.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e)&nbsp;The provisions of this <U>Section&nbsp;13</U> are irrevocable and the holders of the
Senior Indebtedness are intended to be third-party beneficiaries of this <U>Section&nbsp;13</U>
and such holders may, without notice to any of the parties hereto and without impairing or
releasing the obligations of Debtor and the holders of the Subordinated Indebtedness
hereunder, (i)&nbsp;change the terms of or increase the amount of the Senior Indebtedness by
increasing, extending, rearranging, amending, supplementing, or otherwise modifying any
instrument or agreement creating Senior Indebtedness, (ii)&nbsp;sell, exchange, release, or
otherwise deal with any collateral securing any Senior Indebtedness, (iii)&nbsp;release anyone,
including Debtor or any guarantor, liable in any manner for the payment or collection of any
Senior Indebtedness, (iv)&nbsp;exercise or refrain from exercising any rights against Debtor or
any other Person, and (v)&nbsp;apply any sums received by any holders of the Senior Indebtedness,
from whatever source, to the payment of the Senior Indebtedness. The provisions of this
<U>Section&nbsp;13</U> shall constitute a continuing agreement among each holder of Senior
Indebtedness, Debtor and its Subsidiaries, and all Persons who hold the Subordinated
Indebtedness, whether now outstanding or hereafter created, incurred or assumed, and the
provisions of this <U>Section&nbsp;13</U> are made for the benefit of the holders of the Senior
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f)&nbsp;Unless and until the Senior Indebtedness is paid in full, without first obtaining
the prior written consent of each holder of Senior Indebtedness in each instance, the
holders of Subordinated Indebtedness agree not to (i)&nbsp;sell, assign or dispose of any of the
Subordinated Indebtedness or any interest therein unless the assignee, participant and/or
purchaser agrees to be bound by and assume the terms hereof and the obligations hereunder
prior to consummating such purchase or assignment, or (ii)&nbsp;grant, create, or incur any
security interest, Lien, charge or other encumbrance whatsoever upon the Subordinated
Indebtedness unless the secured party or pledgee that is to be granted such security
interest, Lien, charge or other encumbrance agrees to be bound by the terms hereof and
assume the obligations hereunder in the event of an exercise of rights and remedies with
respect to any such security interest, Lien, charge or other encumbrance prior to being
granted such security interest, Lien, charge or other encumbrance.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g)&nbsp;Unless and until the Senior Indebtedness is paid in full, the holders of
Subordinated Indebtedness and Debtor shall not, without the prior written consent of each
holders of Senior Indebtedness, amend, modify or alter this Note to:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(i)&nbsp;increase the rate of interest that is payable on this Note;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii)&nbsp;increase the principal of, or accelerate the final Maturity Date of, the
Indebtedness evidenced by this Note;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii)&nbsp;alter the redemption provisions or the price or terms at which Debtor is
required to offer to purchase the Indebtedness evidenced by this Note; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv)&nbsp;amend the provisions of <U>Section&nbsp;13</U> of this Note (which relate to
subordination) or the related definitions;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U>provided</U>, <U>however</U>, for the avoidance of doubt, none of the following shall
be deemed to constitute an amendment, modification or alteration in violation of this
provision: (A)&nbsp;an increase in the principal amount of this Note resulting from the payment
of interest on, or fees with respect to, this Note in the form of PIK Interest, and (B)&nbsp;any
conversion of this Note that is permitted by <U>Section&nbsp;6</U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h)&nbsp;The foregoing provisions will be enforceable against the holders of the
Subordinated Indebtedness, by or on behalf of any of the holders of the Senior Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;Unless and until the Senior Indebtedness is paid in full, the holders of
Subordinated Indebtedness shall not, directly or indirectly, take any action to enforce the
payment of the obligations of Debtor under this Note, whether as a result of the occurrence
or during the continuance of and Event of Default (as defined below).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(j)&nbsp;Notwithstanding anything to the contrary above, the terms and conditions of this
<U>Section&nbsp;13</U> shall be null and void and of no further effect once the Senior
Indebtedness has been paid in full.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.&nbsp;<U>Events of Default and Remedies</U>. If any one or more of the following events (each
an &#147;<U>Event of Default</U>&#148;) shall occur and be continuing for any reason whatsoever (whether
voluntary or involuntary, by operation of law or otherwise):
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;Debtor shall fail to pay (i)&nbsp;any principal on the MML Bridge Notes or the MML
Convertible Notes when due and payable (whether by acceleration or otherwise) or (ii)&nbsp;any
interest on the MML Bridge Notes or the MML Convertible Notes due within five (5)&nbsp;days after
Debtor&#146;s receipt of written notice that such payment is past due (whether by acceleration or
otherwise);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;Debtor shall fail to observe or perform any covenant or agreement (i)&nbsp;contained in
<U>Section&nbsp;10</U> and such failure shall continue for ten (10)&nbsp;days after written notice of
such default from the holder of this Note to Debtor, or (ii)&nbsp;contained in <U>Section&nbsp;11</U>
or <U>Section&nbsp;12</U>;
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c)&nbsp;any representation, warranty, certification or statement made by Debtor in this
Note or in any certificate or other document delivered pursuant to this Note shall
prove to have been incorrect in any respect (or in any material respect if such
representation, warranty, certification or statement is not by its terms already qualified
as to materiality) when made (or deemed made);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d)&nbsp;Debtor shall fail to observe or perform any covenant or agreement in respect of any
material agreement or the documents evidencing the Senior Indebtedness, beyond any
applicable grace periods, which results in the acceleration of the maturity of such material
agreement or any such Senior Indebtedness;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e)&nbsp;a judgment or order for the payment of money in excess of $500,000 (excluding,
however, any amounts fully covered by insurance (less any applicable deductible) or
indemnification and as to which the insurer or the indemnifying party, as the case may be,
has acknowledged its responsibility to cover such judgment or order) shall be rendered
against Debtor or any of its Subsidiaries and such judgment or order shall continue
unsatisfied or unstayed pending appeal for a period of sixty (60)&nbsp;Business Days;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f)&nbsp;Debtor or any of its Subsidiaries shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or its
debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, or shall consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case or
other proceeding commenced against it, or shall make a general assignment for the benefit of
creditors, or shall fail generally to pay its debts as they become due, or shall take any
corporate or company action to authorize any of the foregoing;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g)&nbsp;an involuntary case or other proceeding shall be commenced against Debtor or any of
its Subsidiaries seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such involuntary case or other
proceeding shall remain undismissed and unstayed for a period of sixty days; or an order for
relief shall be entered against Debtor or any of its Subsidiaries under the federal
bankruptcy laws as now or hereafter in effect;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h)&nbsp;a default or event of default occurs under the Senior Loan Agreement if as a result
of such default or event of default the indebtedness under the Senior Loan Agreement is
accelerated prior to its maturity; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;a default or event of default occurs under the Senior Note and Warrant Purchase
Agreement if as a result of such default or event of default the indebtedness under the
Senior Note and Warrant Purchase Agreement is accelerated prior to its maturity;
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">then, and in every such event and at any time thereafter during the continuance of such event,
Purchaser may by written notice to Debtor (i)&nbsp;declare this Note (together with accrued interest
thereon) to be, and this Note shall, subject to <U>Section&nbsp;13</U> hereof, thereupon become,
immediately due and payable without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by Debtor; <U>provided</U>, <U>however</U>, that in the case of any of
the Events of Default specified in clauses (f)&nbsp;or (g)&nbsp;above, without any notice to Debtor or any
other act by Purchaser, this Note (together with accrued interest thereon) shall become immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by Debtor, and/or (ii)&nbsp;exercise any or all of the rights and remedies which may be
taken upon the occurrence and/or during the continuance of Event of Default.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">15.&nbsp;<U>Amendment</U>. Subject to the terms of <U>Section&nbsp;13</U> and <U>Section&nbsp;18</U>,
this Note may be amended, superseded, cancelled, or renewed, and the terms thereof may be waived,
only by written consent of Debtor and Purchaser.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">16.&nbsp;<U>Waiver of Demand and Notice</U>. Debtor hereby waives demand, notice, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">17.&nbsp;<U>Expenses and Attorneys&#146; Fees</U>. Debtor agrees to pay on demand all reasonable
out-of-pocket legal fees and expenses incurred by Purchaser in connection with the preparation,
negotiation, execution, and delivery of this Note, and any and all amendments, modifications, and
supplements to this Note. Debtor agrees to promptly reimburse Purchaser for all reasonable fees,
costs and expenses (including reasonable attorneys&#146; fees) incurred by Purchaser in any action to
enforce this Note or to collect any payments due from Debtor under this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">18.&nbsp;<U>Binding Agreement; Transfer</U>. The terms and conditions of this Note shall inure to
the benefit of and be binding upon the respective successors and permitted assigns of the parties.
Subject to the terms of <U>Section&nbsp;13</U> and the receipt by Purchaser of the prior written
consent of each of the holders of the Senior Indebtedness (other than the Corcoran Notes Guaranty)
(which consent shall not be unreasonably withheld, delayed or conditioned), Purchaser may sell this
Note to any purchaser or purchasers that are Affiliated with the Purchasers (but expressly
including for this purpose any limited partners or other equity owners of any of the Purchasers or
any other funds Affiliated with the Purchasers or their Affiliates), and in each case, in
compliance with the Securities Act or any laws of any State of the United States that regulate the
offer and sale of securities. This provision may not be amended without the prior written consent
of the parties hereto and each of the holders of the Senior Indebtedness (other than the Corcoran
Notes Guaranty).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">19.&nbsp;<U>Invalid Provisions</U>. If any provision of this Note is held to be illegal, invalid
or unenforceable, (i)&nbsp;the legality, validity and enforceability of the remaining provisions shall
not be affected or impaired thereby and (ii)&nbsp;the parties shall endeavor in good faith negotiations
to replace the illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">20.&nbsp;<U>Cumulative Rights</U>. No delay on the part of the holder of this Note in the
exercise of any power or right under this Note shall operate as a waiver thereof, nor shall a
single or partial exercise of any other power or right.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">21.&nbsp;<U>Notices</U>. Unless otherwise specifically provided herein, all notices, consents,
requests, demands and other communications required or permitted hereunder:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(a)&nbsp;shall be in writing;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;shall be sent by messenger, certified or registered U.S. mail, a reliable express
delivery service or facsimile or sent via electronic mail (with a copy sent by one of the
foregoing means), charges prepaid as applicable, to the appropriate address(es) or number(s)
set forth below; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c)&nbsp;shall be deemed to have been given on the date of receipt by the addressee (or, if
the date of receipt is not a Business Day, on the first Business Day after the date of
receipt), as evidenced by (i)&nbsp;a receipt executed by the addressee (or a responsible person
in his or her office), the records of the Person delivering such communication or a notice
to the effect that such addressee refused to claim or accept such communication, if sent by
messenger, U.S. mail or express delivery service, or (ii)&nbsp;a receipt generated by the
sender&#146;s facsimile or electronic mail server showing that such communication was sent to the
appropriate number on a specified date, if sent by facsimile or electronic mail.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">All such communications shall be sent to the following addresses or numbers, or to such other
addresses or numbers as any party may inform the others by giving five Business Days&#146; prior notice:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Debtor:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Argyle Security, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loeb &#038; Loeb LLP</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12903 Delivery Drive
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">345 Park Avenue</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">San Antonio, Texas 78247
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10154</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn: Donald F. Neville
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Giovanni Caruso, Esq.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Facsimile No.: (210)&nbsp;798-3917
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile No.: (212)&nbsp;937-3943</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Email: dneville@argylesecurity.com
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: gcaruso@loeb.com</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Lender:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mezzanine Management Fund IV
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Porter &#038; Hedges, L.L.P.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#091;Coinvest&#093; </B>A, LP
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1000 Main Street, 36<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">c/o MML Capital Partners, LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Houston, Texas 77002</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stamford Harbor Park
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Chris A. Ferazzi</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">333 Ludlow Street
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile No.: (713)&nbsp;226-6226</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stamford, Connecticut 06902
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: cferazzi@porterhedges.com</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn: Robert Davies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Facsimile No.: (203)&nbsp;323-9119</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Email : rdavies@mmlcapital.com</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">22.&nbsp;<U>Choice of Law, Venue and Forum</U>. This Agreement, the entire relationship of the
parties hereto, and any litigation between the parties (whether grounded in contract, tort,
statute, law or equity) shall be governed by, construed in accordance with, and interpreted
pursuant to the laws of the State of Texas, without giving effect to its choice of laws principles.
Exclusive venue for any litigation between the parties hereto shall be in Bexar County, Texas, and
shall be brought in the State District Courts of Bexar County, Texas, or in the United States
District Court for the Western District of Texas, San Antonio Division. The parties hereto waive
any challenge to personal jurisdiction or venue (including without limitation a challenge based on
inconvenience) in Bexar County, Texas, and specifically consent to the jurisdiction of the State
District Courts of Bexar County and the United States District Court for the Western District of
Texas, San Antonio Division.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">23.&nbsp;<U>Usury Savings Clause</U>. Any provision in this Note or in any other document
executed in connection herewith, or in any other agreement or commitment, whether written or oral,
express or implied, to the contrary notwithstanding, Lender shall not in any event be entitled to
receive or collect, nor shall or may amounts received hereunder be credited, so that Lender shall
be paid, as interest, a sum greater than the maximum rate of interest permitted by applicable law.
If any construction of this Note, or any and all other papers, agreements or commitments, indicates
a different right given to Lender to ask for, demand or receive any larger sum as interest, such is
a mistake in calculation or wording, which this clause shall override and control; it being the
intention of the parties that this Note and all other instruments relating to this Note shall in
all things comply with applicable law, and proper adjustment shall automatically be made
accordingly. In the event Lender ever receives, collects or applies as interest, any sum in excess
of the maximum rate of interest permitted by applicable law, such excess amount shall be applied to
the reduction of the unpaid principal balance of this Note in the inverse order of maturity, and if
this Note is paid in full, any remaining excess shall be paid to Debtor. In determining whether or
not the interest paid or payable, under any specific contingency, exceeds the maximum rate of
interest permitted by applicable law, Debtor and Lender shall, to the maximum extent permitted
under applicable law (a)&nbsp;characterize any nonprincipal payment as an expense, fee or premium rather
than as interest, (b)&nbsp;exclude voluntary prepayments and the effects thereof, and (c) &#147;spread&#148; the
total amount of interest throughout the entire term of this Note so that the interest rate is
uniform throughout the entire term hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">24.&nbsp;<U>Headings</U>. The headings of the
sections of this Note are inserted for convenience only and shall not be deemed to constitute a
part hereof.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">25.&nbsp;<U>Counterparts</U>. This Note may be executed in one or more counterparts, each of
which when so executed and delivered, shall be an original, and all of which together shall
constitute one and the same instrument.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">26.&nbsp;<U>Entirety</U>. THIS NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;<I>Signature Page Follows</I>&#093;
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the undersigned has executed this Note to be effective as of the date
first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ARGYLE SECURITY, INC.,<BR>
a Delaware corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">AGREED AND ACCEPTED<BR>
THIS
&nbsp;_____&nbsp;
DAY OF DECEMBER 2009<BR>
FOR THE SOLE PURPOSE OF<BR>
SECTIONS 9 AND 13 OF THIS NOTE

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">MEZZANINE MANAGEMENT FUND IV &#091;<B>COINVEST</B>&#093; A, LP<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;<FONT style="font-variant: SMALL-CAPS">Signature Page to 10% Convertible Subordinated Promissory Note &#151; MMIV<B>&#091;A/Coinvest A&#093;</B>&#093;</FONT>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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