<SUBMISSION>
<ACCESSION-NUMBER>0000950123-09-029650
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20090803
<ITEMS>1.01
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20090804
<DATE-OF-FILING-DATE-CHANGE>20090804
<FILER>
<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>8-K
<ACT>34
<FILE-NUMBER>000-51639
<FILM-NUMBER>09984330
</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>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c88416e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</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: 10pt">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of
earliest event reported): August&nbsp;3, 2009</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>Argyle Security, Inc.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>000-51639</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>20-3101079</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>12903 Delivery Drive<BR>San Antonio, TX<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>78247</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(210) 495-5245</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000"><B>&nbsp;</B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>
<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>

</DIV>

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

<P align="center" style="font-size: 10pt; display: none">1
</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">

<P align="left" style="font-size: 10pt">&nbsp;
<BR>
<B>Item&nbsp;1.01&nbsp; Entry into a Material Definitive Agreement.</B>
<BR>
&nbsp;


<P align="left" style="font-size: 10pt; text-indent: 3%">On
August&nbsp;3, 2009, ISI Security Group, Inc. (&#147;ISI&#148;), a
Delaware corporation and wholly-owned subsidiary of Argyle
Security, Inc. (the &#147;Company&#148;), a Delaware corporation, entered into an Eighth Amendment and Waiver (the &#147;Blair Amendment&#148;) to the Note and
Warrant Purchase Agreement dated as of October&nbsp;22, 2004 (as amended) between ISI and William Blair Mezzanine Capital
Fund III, L.P. (&#147;Blair&#148;), a fund managed by Merit Capital Partners (the &#147;Agreement&#148;). Pursuant to the terms of the
Blair Amendment, in exchange for an amendment fee of $25,000, Blair agreed to waive a default of the negative covenant
restricting total indebtedness allowed under the Agreement (the
&#147;Blair Default&#148;) and amend the definition of Permitted Indebtedness to
increase the amount of permitted operating real estate lease obligations from $750,000 in any fiscal year to (1)
$850,000 in the aggregate during the Fiscal Year ending December&nbsp;31, 2009; (2) $1,000,000 in the aggregate during the
Fiscal Year ending December&nbsp;31, 2010; (3) $1,100,000 in the aggregate during the Fiscal Year ending December&nbsp;31,
2011; and (4) $1,200,000 in the aggregate for the Company and its Subsidiaries during the Fiscal Year ending December
31, 2012 and during each Fiscal Year thereafter. Also the definition of Permitted Indebtedness was amended to
separately include any real estate leases entered into specifically in connection with projects undertaken by ISI or
its subsidiaries.&nbsp;

<P align="left" style="font-size: 10pt; text-indent: 3%">In addition, The PrivateBank and Trust Company (the &#147;Bank&#148;) agreed to waive any cross-default or
Event of Default created under the senior credit facility between the Bank and ISI, solely as it
relates to occurrence of the Blair Default and ISI and the Bank
entered into Amendment No.&nbsp;3 to the Loan and Security Agreement (the &#147;Bank Amendment&#148;) whereby the Bank Amendment added the same
restrictions on the amount of the aggregate operating lease obligations as those set forth in the Blair Amendment.

<P align="left" style="font-size: 10pt; text-indent: 3%">The information set forth above is qualified in its entirety by reference to the actual terms of the Blair
Amendment filed herewith as Exhibit&nbsp;10.1 and the Bank Amendment
filed herewith as Exhibit&nbsp;10.2, which are incorporated herein by reference.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;8.01&nbsp; Other Events.</B>


<P align="left" style="font-size: 10pt; text-indent: 3%">The Company has informed MML Capital Partners LLC, in its capacity as advisor to, and on
behalf of, Mezzanine Management Fund IV &#145;A&#146; L.P. and Mezzanine Management Fund Coinvest A L.P.
(collectively &#147;MML&#148;) of the Blair Default and waivers by Blair and the Bank. Notwithstanding such
default and waivers, as well as the expiration of the exclusivity period in the non-binding letter
of intent entered into between the Company and MML on June&nbsp;15, 2009 (the &#147;LOI&#148;), the Company and
MML continue to be engaged in non-binding negotiations involving a
proposed transaction.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
<BR>
&nbsp;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(d)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibits.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

&nbsp;
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit&nbsp;No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <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">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Eighth Amendment and Waiver to Note and Warrant Purchase
Agreement, dated as of August&nbsp;3, 2009, between ISI Security Group,
Inc. and William Blair Mezzanine Capital Fund III, L.P.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment No.&nbsp;3 to Loan and Security Agreement, dated as of August&nbsp;3,
2009, between ISI Security Group, Inc. and The PrivateBank and Trust
Company.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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



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

<P align="center" style="font-size: 10pt; display: none">2
</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">





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



<P align="left" style="font-size: 10pt">&nbsp;
<BR>
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
<BR>
&nbsp;
<BR>
&nbsp;



<P align="left" style="margin-left:46%; font-size: 10pt">Argyle Security,&nbsp;Inc.,
<BR>
&nbsp;a Delaware corporation


<P align="left" style="font-size: 10pt">Dated: August&nbsp;4, 2009



<P align="left" style="margin-left:46%; font-size: 10pt; margin-top: -11pt">By:&nbsp;<U><B>/</B>s/ Donald F. Neville&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Donald F. Neville
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;Chief Financial Officer

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

<P align="center" style="font-size: 10pt; display: none">3
</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">

<P align="center" style="font-size: 10pt"><B>EXHIBIT INDEX</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit&nbsp;No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <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">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Eighth Amendment and Waiver to Note and Warrant Purchase
Agreement, dated as of August&nbsp;3, 2009, between ISI Security Group,
Inc. and William Blair Mezzanine Capital Fund III, L.P.</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment No.&nbsp;3 to Loan and Security Agreement, dated as of August&nbsp;3,
2009, between ISI Security Group, Inc. and The PrivateBank and Trust
Company.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<P align="center" style="font-size: 10pt; display: none">4




</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c88416exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

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


<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.1</B>



<P align="center" style="font-size: 10pt"><B>EIGHTH AMENDMENT AND WAIVER<BR>
TO NOTE AND WARRANT PURCHASE AGREEMENT</B>



<P align="justify" style="font-size: 10pt; text-indent: 4%">THIS EIGHTH AMENDMENT AND WAIVER TO NOTE AND WARRANT PURCHASE AGREEMENT (this &#147;<U>Amendment</U>&#148;) is dated as of
August&nbsp;3, 2009 (the &#147;<U>Eighth Amendment Effective Date</U>&#148;) by and among ISI Security Group, Inc., a Delaware
corporation formerly known as ISI Detention Contracting Group, Inc. (the &#147;<U>Company</U>&#148;), and William Blair
Mezzanine Capital Fund&nbsp;III, L.P., a Delaware limited partnership (the &#147;<U>Purchaser</U>&#148;).


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



<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Company, the Purchaser and the Guarantors (as such term is defined in the Purchase Agreement (as
defined below)) (such Guarantors are parties to the Purchase Agreement solely for the purposes of Section&nbsp;8 thereof)
previously entered into that certain Note and Warrant Purchase Agreement, dated as of October&nbsp;22, 2004, as amended by
that certain Omnibus First Amendment to Note and Warrant Purchase Agreement and Warrant dated as of November&nbsp;1, 2005,
by that certain Omnibus Second Amendment to Note and Warrant Purchase Agreement and Warrant, dated as of July&nbsp;31, 2007,
by that certain Third Amendment to Note and Warrant Purchase Agreement, dated as of January&nbsp;2, 2008, by that certain
Fourth Amendment to Note and Warrant Purchase Agreement, dated as of June&nbsp;25, 2008, by that certain Fifth Amendment and
Waiver to Note and Warrant Purchase Agreement, dated as of November&nbsp;13, 2008, by that certain Sixth Amendment to Note
and Warrant Purchase Agreement, dated as of January&nbsp;8, 2009 and by that certain Seventh Amendment to Note and Warrant
Purchase Agreement, dated as of March&nbsp;30, 2009 (as further amended, restated, supplemented or otherwise modified from
time to time, the &#147;<U>Purchase Agreement</U>&#148;);


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Company acknowledges that a certain default has occurred and is continuing relating to a negative
covenant under the Purchase Agreement, and the Purchaser is willing to provide a limited waiver in respect of such
default, subject to the terms and conditions of this Amendment;


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>WHEREAS</B>, in connection with the default, the Company wishes, and the Purchaser is willing to, amend the Purchase
Agreement, subject to the terms and conditions of this Amendment;


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>WHEREAS</B>, this Amendment shall constitute a Transaction Document, and these Recitals shall be construed as part of
this Amendment; and


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>WHEREAS</B>, capitalized terms used but not otherwise defined herein shall have the respective meanings given to them
in the Purchase Agreement.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>NOW, THEREFORE</B>, in consideration of the above premises, the agreements contained herein and other good and
valuable consideration, the adequacy, sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</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">

<P align="justify" style="font-size: 10pt; text-indent: 4%">Section&nbsp;1. Amendment to the Purchase Agreement. <U>Section&nbsp;1.1</U> of the Purchase Agreement is hereby amended
by amending and restating the following definition in its entirety:


<P align="justify" style="margin-left:8%; margin-right:4%; font-size: 10pt; text-indent: 4%">&#147;&#147;<U>Permitted Indebtedness</U>&#148; means:


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(a)&nbsp;the Obligations;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(b)&nbsp;the Senior Debt;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(c)&nbsp;Indebtedness (other than with regard to the Green Wing Lease as described
in subpart&nbsp;(k) below) not to exceed $600,000 in the aggregate at any time
outstanding secured by purchase money Liens or incurred with respect to Capital
Leases;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(d)&nbsp;Indebtedness identified on the Indebtedness Schedule;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(e)&nbsp;unsecured Indebtedness to trade creditors incurred in the ordinary course
of business;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(f)&nbsp;Indebtedness secured by Permitted Encumbrances;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(g)&nbsp;operating lease obligations, excluding real property leases, requiring
payments not to exceed $500,000 in the aggregate for the Company and its
Subsidiaries during any Fiscal Year of the Company;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(h)&nbsp;operating lease obligations solely with respect to real property leases
(excluding the real property leases described in subpart (i)&nbsp;below) (1)&nbsp;requiring
payments not to exceed $850,000 in the aggregate for the Company and its
Subsidiaries during the Fiscal Year ending December&nbsp;31, 2009; (2)&nbsp;requiring
payments not to exceed $1,000,000 in the aggregate for the Company and its
Subsidiaries during the Fiscal Year ending December&nbsp;31, 2010; (3)&nbsp;requiring
payments not to exceed $1,100,000 in the aggregate for the Company and its
Subsidiaries during the Fiscal Year ending December&nbsp;31, 2011; and (4)&nbsp;requiring
payments not to exceed $1,200,000 in the aggregate for the Company and its
Subsidiaries during the Fiscal Year ending December&nbsp;31, 2012 and during each
Fiscal Year of the Company and its Subsidiaries thereafter;


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(i)&nbsp;operating lease obligations solely with respect to real property leases
entered into by the Company and its Subsidiaries, solely with respect to
residential property utilized by their employees in connection with the completion
of work pursuant to contracts entered into in the course of ordinary course of
business (for which the cost of the lease payments has been or will be included in the cost to complete for such work required by such
contract), during any Fiscal Year of the Company;

<P align="center" style="font-size: 10pt; text-indent: 3%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</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">

<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(j)&nbsp;intercompany Indebtedness; and


<P align="justify" style="margin-left:12%; margin-right:4%; font-size: 10pt; text-indent: 3%">(k)&nbsp;Indebtedness in connection with the Green Wing Lease.&#148;


<P align="justify" style="font-size: 10pt; text-indent: 4%">Section&nbsp;2. <U>Waiver</U>.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(a)&nbsp;The Company has informed the Purchaser that as of May&nbsp;18, 2009, the Company exceeded the Indebtedness
limitation set forth in <U>Section&nbsp;4.5(a)</U> of the Purchase Agreement prior to the effectiveness of this Amendment
(the &#147;<U>Existing Default</U>&#148;). The Purchaser hereby waives compliance by the Company of Section&nbsp;4.5(a) of the
Purchase Agreement solely as it relates to the Existing Default. The Purchaser&#146;s waiver of non-compliance with
Section&nbsp;4.5(a) of the Purchase Agreement is limited to the specific instance of the Existing Default and shall not be
deemed a waiver of or consent to any other failure to comply with the terms of Section&nbsp;4.5(a) of the Purchase Agreement
or any other provisions of the Purchase Agreement. Such waiver shall not prejudice or constitute a waiver of any right
or remedies which the Purchaser may have or be entitled to with respect to any other breach of Section&nbsp;4.5(a) or any
other provision of the Purchase Agreement. The waiver is for this particular instance and shall not be construed as a
waiver of any other presently existing or future default or Event of Default. Subsequent to the date hereof, the
provisions of Section&nbsp;4.5(a) of the Purchase Agreement will apply as amended hereby, without any further action on the
part of the Purchaser.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(b)&nbsp;Other than as specifically set forth herein, the Purchaser reserves all of its interests, rights and remedies
under and pursuant to the Transaction Documents.


<P align="justify" style="font-size: 10pt; text-indent: 4%">Section&nbsp;3. <U>Representations and Warranties</U>. To induce the Purchaser to enter into this Amendment, the
Company represents and warrants that:


<P align="justify" style="font-size: 10pt; text-indent: 4%">(a)&nbsp;<U>Representations, Warranties; No Default</U>. The warranties and representations of the Company contained
in the Transaction Documents shall be true and correct as of the effective date hereof, with the same effect as though
made on such date, except to the extent that such warranties and representations expressly relate to an earlier date.
No Event of Default or Potential Event of Default (other than the Existing Default) has occurred and is continuing
under the Purchase Agreement.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(b)&nbsp;<U>Organizational Authority</U>. (i)&nbsp;The execution, delivery and performance by the Company of this
Amendment are within its corporate powers and have been duly authorized by all necessary corporate action, (ii)&nbsp;this
Amendment is the legal, valid and binding obligation of the Company enforceable in accordance with its terms and
(iii)&nbsp;neither the execution and delivery nor the performance by the Company of this Amendment (1)&nbsp;violates any law or
regulation, or any other decree of any governmental body, (2)&nbsp;conflicts with or results in the breach or termination
of, constitutes a default under or accelerates any performance required by, any indenture, mortgage, deed of trust,
lease, agreement or other instrument to which such Person is a party or by which such Person or any of its property is
bound, (3)&nbsp;results in the creation or imposition of any Lien, upon any of the Collateral (as defined in the Senior Loan Documents)&nbsp;other than Liens in favor of the Senior Lender, (4)&nbsp;violates or conflicts with the certificate of
incorporation or bylaws of such Person, or (5)&nbsp;requires the consent, approval or authorization of, or declaration or
filing with, any other Person, except for those already duly obtained.

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
</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">

<P align="justify" style="font-size: 10pt; text-indent: 4%">Section&nbsp;4. <U>Conditions Precedent</U>. The effectiveness of this Amendment is subject to the following
conditions precedent:


<P align="justify" style="font-size: 10pt; text-indent: 4%">(a)&nbsp;<U>No
Default</U>. No Event of Default or Potential Event of Default (other than the Existing Default) under
the Purchase Agreement shall have occurred and be continuing.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(b)&nbsp;<U>Warranties and Representations</U>. The warranties and representations of the Company contained in the
Transaction Documents shall be true and correct as of the effective date hereof, with the same effect as though made on
such date, except to the extent that such warranties and representations expressly relate to an earlier date.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(c)&nbsp;<U>Execution and Delivery</U>. The Company and the Purchaser shall have executed and delivered this
Amendment.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(d)&nbsp;<U>Initial Amendment Fee</U>. The Company shall have paid to the Purchaser an initial amendment fee in the
amount of $25,000, which fee shall be fully earned by Purchaser and payable on the Eighth Amendment Effective Date.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(e)&nbsp;<U>Other</U>. The Company shall have executed and delivered to the Purchaser such other documents and
instruments that the Purchaser may reasonably request to effect the
purposes of this Amendment, including, without limitation, a fully
executed copy of that certain Amendment No.&nbsp;3 to Loan and
Security Agreement dated as of even date herewith by and between the
Company and the Senior Lender.


<P align="justify" style="font-size: 10pt; text-indent: 4%">Section&nbsp;5. <U>Reference and Effect on Operative Documents</U>.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(a)&nbsp;<U>Ratification</U>. Except as specifically amended above, the Purchase Agreement and the other Transaction
Documents, as amended, shall remain in full force and effect. Notwithstanding anything contained herein, the terms of
this Agreement are not intended to and do not effect a novation of the Purchase Agreement or any other Transaction
Document. The Company hereby ratifies and reaffirms each of the terms and conditions of the Transaction Documents to
which it is a party and all of its obligations thereunder.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(b)&nbsp;<U>References</U>. Upon the effectiveness of this Amendment, each reference in (i)&nbsp;the Purchase Agreement to
&#147;this Agreement,&#148; &#147;hereunder,&#148; &#147;hereof,&#148; or words of similar import, and (ii)&nbsp;any other Transaction Document to &#147;the
Agreement&#148; or &#147;the Purchase Agreement&#148; shall, in each case and except as otherwise specifically stated therein, mean
and be a reference to the Purchase Agreement or such other Transaction Documents, as applicable, as amended hereby.


<P align="justify" style="font-size: 10pt; text-indent: 4%">Section&nbsp;6. <U>Miscellaneous</U>.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(a)&nbsp;<U>Additional Fee and Expenses</U>. Pursuant to <U>Section&nbsp;9.1</U> of the Purchase Agreement, the Company
further agrees to pay on demand all reasonable legal fees and out-of-pocket costs and expenses of or incurred by the
Purchaser in connection with the instruments and agreements contemplated hereby. The failure of the Company to comply with the foregoing requirements shall
constitute an immediate Event of Default under the Purchase Agreement.

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">4
</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">

<P align="justify" style="font-size: 10pt; text-indent: 4%">(b)&nbsp;<U>Binding Effect</U>. This Amendment shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(c)&nbsp;<U>Counterparts</U>. This Amendment 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.


<P align="justify" style="font-size: 10pt; text-indent: 4%">(d)&nbsp;<U>Governing Law</U>. This Amendment shall be governed by the laws of the State of Illinois, without giving
effect to its conflict of laws principles.


<P align="center" style="font-size: 10pt">&#091;<I>The remainder of this page is left blank intentionally.</I>&#093;



<P align="justify" style="font-size: 10pt; text-indent: 4%">

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">5
</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">

<P align="center" style="font-size: 10pt"><B><I>Signature Page&nbsp;to Eighth Amendment and Waiver to Note and Warrant Purchase Agreement</I></B>



<P align="justify" style="font-size: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date first written above.


<P><DIV style="position: relative; float: left; width: 45%">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>COMPANY:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>ISI SECURITY GROUP, INC.</B>, a</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">Delaware corporation, formerly known</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">as ISI Detention Contracting Group, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Sam Youngblood</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sam Youngblood</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">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and COO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

</DIV>
<DIV style="position: relative; float: right; width: 45%">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>PURCHASER:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>WILLIAM BLAIR MEZZANINE</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>CAPITAL FUND III, L.P.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William Blair Mezzanine Capital
Partners III, L.L.C., its General Partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ David M. Jones</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David M. Jones</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">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Managing Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>

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

<P align="center" style="font-size: 10pt; display: none">6




</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>c88416exv10w2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.2</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;10.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>AMENDMENT NO. 3 AND WAIVER</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>TO LOAN AND SECURITY AGREEMENT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">THIS AMENDMENT NO. 3 AND WAIVER TO LOAN AND SECURITY AGREEMENT (this &#147;Amendment&#148;) is dated as
of August&nbsp;3, 2009 by and between ISI SECURITY GROUP, INC. (the &#147;Borrower&#148;) and THE PRIVATEBANK AND
TRUST COMPANY (the &#147;Bank&#148;).
</DIV>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS,
the Borrower and the Bank are parties to the Loan and Security Agreement, dated as of
October&nbsp;3, 2008, as amended by Amendment No.&nbsp;1 to Loan and Security Agreement, dated as of January
8, 2009 and Amendment No.&nbsp;2 to Loan and Security Agreement,
dated as of March&nbsp;30, 2009 (the &#147;Loan
Agreement&#148;) (capitalized terms used and not otherwise defined herein shall have the meaning
ascribed thereto in the Loan Agreement); and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower has informed the Bank that as of May&nbsp;18, 2009, the Borrower exceeded the
Indebtedness limitation set forth in Section&nbsp;4.5(a) (as amended, the &#147;Blair Default&#148;) of the Note and Warrant
Purchase Agreement dated as of October&nbsp;22, 2004 (the &#147;Purchase Agreement&#148;) between the Borrower and William Blair Mezzanine
Capital Partners III, L.P. (&#147;Blair&#148;). The Borrower has informed the Bank that Blair has agreed to
waive the Blair Default and amend the Purchase Agreement whereby the Borrower is no longer
exceeding the Indebtedness limitation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower acknowledges that the Blair Default under the Purchase Agreement is a
default as set forth in Section&nbsp;11.5 of the Loan Agreement, and the Bank is willing to provide a
limited waiver in respect of such default, subject to the terms and conditions of this Amendment;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower has requested and the Bank has agreed to the amendments to the Loan
Agreement more fully set forth herein; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">WHEREAS, such amendments shall be of benefit, either directly or indirectly, to the Borrower;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, in consideration of the above premises, the agreements contained herein and
other good and valuable consideration, the adequacy, sufficiency and receipt of which are hereby
acknowledged, the parties hereto agree as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;1. <U>Amendments</U>. Upon and after the Amendment Effective Date (as defined
below), <U>Section&nbsp;9.1</U> of the Loan Agreement is restated and amended in its entirety as
follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U>Debt</U>. The Borrower shall not, either directly or indirectly, create, assume, incur
or have outstanding any Debt (including purchase money indebtedness), or become liable,
whether as endorser, guarantor, surety or otherwise, for any debt or obligation of any other
Person, except:
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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; margin-left: 4%">(a)&nbsp;the Obligations under this Agreement and the other Loan Documents;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;obligations of the Borrower for Taxes, assessments, municipal or other governmental
charges;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;obligations of the Borrower for accounts payable, other than for money borrowed,
incurred in the ordinary course of business;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;Subordinated Debt;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e)&nbsp;Hedging Obligations incurred in favor of the Bank or an Affiliate thereof for bona fide
hedging purposes and not for speculation;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;Capitalized Lease Obligations, provided that the aggregate amount of all such Debt
outstanding at any time shall not exceed, in the aggregate, Five Hundred Thousand and 00/100
Dollars ($500,000.00) plus the amount of any Capitalized Lease Obligations owing by the
Borrower to Green Wing for so long as the Green Wing lease remains subject to an enforceable
Subordination Agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(g)&nbsp;Debt for Capital Expenditures (other than Capitalized Lease Obligations permitted by
<U>Section&nbsp;9.1(f)</U> and purchase money indebtedness secured by vehicles permitted by
<U>Section&nbsp;9.1(h)</U>) not to exceed Five Hundred Thousand and 00/100 Dollars ($500,000.00)
in the aggregate at any time;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(h)&nbsp;Debt for purchase money indebtedness secured by vehicles in an amount not to exceed Five
Hundred Thousand and 00/100 Dollars ($500,000.00) in the aggregate at
any time;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(i)&nbsp;Debt described on <U>Schedule&nbsp;7.25</U> and any extension, renewal or refinancing
thereof so long as the principal amount thereof is not increased;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(j)&nbsp;other unsecured Debt, in addition to the Debt listed above, in an aggregate amount
outstanding at any time not to exceed Two Hundred Fifty Thousand and 00/100 Dollars
($250,000.00);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(k)&nbsp;operating lease obligations solely with respect to real property leases (excluding the
real property leases described in subpart (l)&nbsp;below) (1)&nbsp;requiring payments not to exceed
$850,000 in the aggregate for the Company and its Subsidiaries during the fiscal year ending
December&nbsp;31, 2009; (2)&nbsp;requiring payments not to exceed $1,000,000 in the aggregate for the
Company and its Subsidiaries during the fiscal year ending December&nbsp;31, 2010; (3)&nbsp;requiring
payments not to exceed $1,100,000 in the aggregate for the Company and its Subsidiaries
during the fiscal year ending December&nbsp;31, 2011; and (4)&nbsp;requiring payments not to exceed
$1,200,000 in the aggregate for the Company and its Subsidiaries during the fiscal year
ending December&nbsp;31, 2012 and during each fiscal year of the Company and its Subsidiaries
thereafter;
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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; margin-left: 4%">(l)&nbsp;operating lease obligations solely with respect to real property leases entered into by
the Company and its Subsidiaries, solely with respect to residential property utilized by their employees in connection with the completion of work pursuant to contracts entered
into in the course of ordinary course of business (for which the cost of the lease payments
has been or will be included in the cost to complete for such work required by such
contract), during any fiscal year of the Company; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(m)&nbsp;Debt secured only by Liens on amounts deposited by or paid on behalf of the Borrower
arising out of the financing of insurance premiums.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2. <U>Representations and Warranties</U>. In order to induce the Bank to agree to
the amendment described in <U>Section&nbsp;1</U> of this Amendment, the Borrower makes the following
representations and warranties, which shall survive the execution and delivery of this Amendment:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;No Event of Default will exist immediately after giving effect to the amendment contained
herein;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Each of the representations and warranties set forth in <U>Section&nbsp;7</U> of the Loan
Agreement are true and correct as though such representations and warranties were made at and as of
the Amendment Effective Date, except to the extent that any such representations or warranties are
made as of a specified date or with respect to a specified period of time, in which case such
representations and warranties shall be made as of such specified date or with respect to such
specified period. Each of the representations and warranties made under the Loan Agreement shall
survive to the extent provided therein and not be waived by the execution and delivery of this
Amendment;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Borrower is a duly organized, validly existing Delaware corporation and has the power
and authority to execute, deliver and carry out the terms and provisions of this Amendment, and has
taken or caused to be taken all necessary corporate action to authorize the execution, delivery and
performance of this Amendment;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;No consent of any other Person or filing or action by any governmental authorities, is
required to authorize the execution, delivery and performance of this Amendment;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;This Amendment has been duly executed by a duly authorized signatory on behalf of the
Borrower and constitutes the legal, valid and binding obligation of the Borrower, enforceable in
accordance with its terms, except as enforcement thereof may be subject to the effect of any
applicable (i)&nbsp;bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors&#146; rights generally and (ii)&nbsp;general principals of equity; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;The execution and delivery and performance of the agreements in this Amendment will not
violate any law, statute or regulation applicable to the Borrower or any order or decree of any
governmental authorities, or conflict with or result in the breach or any contractual obligation of
the Borrower.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3. <U>Conditions Precedent to Effectiveness of the Amendment</U>. This Amendment is
subject to the satisfaction of (or waiver by the Bank in its sole discretion) the following
conditions precedent:
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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%">(a)&nbsp;No
unmatured Event of Default or Event of Default (other than the Blair
Default) under the Loan Agreement shall have
occurred and be continuing;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Guarantors shall have executed and delivered to the Bank a Reaffirmation of Guaranty
Agreement in the form attached to this Amendment; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Borrower shall have executed and delivered such other documents and instruments that
the Bank may reasonably request to effect the purposes of this Amendment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Section&nbsp;4. <U>Waiver</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The
Bank hereby waives the Event of Default under Section&nbsp;11.5 of the Loan Agreement
solely as it relates to occurrence of the Blair Default. The Bank&#146;s waiver of the Event of Default
under Section&nbsp;11.5 of the Purchase Agreement is limited to the specific instance of the Blair
Default and shall not be deemed a waiver of or consent to any other failure to comply with the
terms of Section&nbsp;11.5 of the Loan Agreement or any other provisions of the Loan Agreement. Such
waiver shall not prejudice or constitute a waiver of any right or remedies which the Bank may have
or be entitled to with respect to any other breach of
Section&nbsp;11.5 or any other provision of the
Loan Agreement. The Bank also hereby waives any right to restrict Blair from accepting an
amendment fee from the Borrower in exchange for its agreement to amend the Purchase Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The waivers in section (a)&nbsp;above are for this particular instance and shall not be
construed as a waiver of any other presently existing or future default or Event of Default. Other
than as specifically set forth herein, the Bank reserves all of its interests, rights and remedies
under and pursuant to the Loan Documents.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5. <U>Effectiveness</U>. The amendments and waivers to the Loan Agreement contained
in Sections&nbsp;1 and 4 of this Amendment shall become effective as of the date first referenced above
after the Bank shall have received this Amendment, executed and delivered by the Borrower and the
Bank (the &#147;Amendment Effective Date&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6. <U>Expenses</U>. The Borrower agrees to pay on demand all reasonable costs and
expenses, including filing and recording fees, incurred by the Bank in connection with the
preparation, execution and delivery of this Amendment, and any other documents or instruments which
may be delivered in connection herewith, including without limitation, the reasonable fees and
expenses of legal counsel for the Bank.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7. <U>Counterparts</U>. This Amendment may be executed in counterparts and by
different parties hereto in separate counterparts, each of which, when so executed and delivered,
shall be deemed to be an original and all of which, when taken together, shall constitute one and
the same instrument. Faxed or emailed signatures of this Amendment shall be binding on the
parties. Each party shall promptly send to the other party signed originals of faxed or emailed
signatures to this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.
<U>Ratification</U>. The Loan Agreement, as amended hereby, is and shall continue to be in full force
and effect and is hereby in all respects confirmed, approved and
ratified. Except as amended and waived
hereby, all terms and conditions of the Loan Agreement remain the same.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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%">Section&nbsp;9. <U>Release</U>. In consideration of the amendments provided herein, the Borrower
releases and discharges the Bank, and its directors, officers, employees, agents, successors and
assigns from all claims and causes of action of any nature whatsoever, which the Borrower, its
successors and assigns ever had or have as of the date hereof against the Bank that arise, directly
or indirectly, out of or are related to the Loan Agreement. The Borrower acknowledges that the
Obligations arising under the Loan Agreement are not subject to any such counterclaim, offset,
defense or rights of recoupment against the Bank.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;10. <U>Governing Law</U>. The rights and duties of the Borrower and the Bank under
this Amendment shall be governed by the law of the State of Illinois.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;11. <U>Reference to Loan Agreement</U>. From and after the Amendment Effective Date,
each reference in the Loan Agreement to &#147;this Loan Agreement&#148;, &#147;hereof&#148;, &#147;hereunder&#148; or words of
like import, and all references to the Loan Agreement in any and all agreements, instruments,
documents, notes, certificates and other writings of every kind and nature, shall be deemed to mean
the Loan Agreement as modified and amended by this Amendment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>IN WITNESS WHEREOF</B>, the parties have caused this Amendment to be duly executed by their
authorized officers as of the date first written above.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ISI SECURITY GROUP, INC.</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="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Sam Youngblood
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Sam Youngblood
</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: COO</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"><B>THE PRIVATEBANK AND TRUST COMPANY</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="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nate Palmer
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Nate Palmer
</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Associate Managing Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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"><U><B>REAFFIRMATION OF GUARANTY AGREEMENT</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The undersigned (a)&nbsp;acknowledges receipt of a copy of (i)&nbsp;Amendment No.&nbsp;3 to Loan and Security
Agreement, dated August&nbsp;3, 2009, between ISI Security Group, Inc. and The PrivateBank and Trust
Company, (b)&nbsp;consents to such amendments and waivers and all prior amendments and each of the
transactions referenced therein, and (c)&nbsp;hereby reaffirms its obligations under its Unconditional
Continuing Guaranty Agreement, dated as of October&nbsp;3, 2008 in favor of The PrivateBank and Trust
Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Dated as of August&nbsp;3, 2009
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DETENTION CONTRACTING GROUP, LTD.,</B><BR>
a Texas limited partnership
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ISI DETENTION CONTRACTING</B></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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>GROUP, INC., </B>a Texas corporation,</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">its general partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&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">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Donald F. Neville</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>ISI DETENTION CONTRACTING</B><BR><B>
GROUP, INC</B>., a Texas corporation
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>ISI DETENTION CONTRACTING</B><BR><B>
GROUP, INC., </B>a California corporation
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>ISI DETENTION CONTRACTING</B><BR><B>
GROUP, INC., </B>a New Mexico corporation
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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"><B>ISI DETENTION SYSTEMS, INC.,</B><BR>
a Texas corporation
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>ISI SYSTEMS, LTD.,</B><BR>
a Texas limited partnership
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ISI DETENTION SYSTEMS, INC.,</B></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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">a Texas corporation, its general partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>METROPLEX CONTROL SYSTEMS, INC.,</B><BR>
a Texas corporation, (f/k/a ISI Metroplex Controls, Inc.)
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>ISI CONTROLS, LTD</B>.,<BR>
a Texas limited partnership
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>METROPLEX CONTROL SYSTEMS, INC.,</B></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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">a Texas corporation, its general partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>METROPLEX COMMERCIAL FIRE AND</B><BR><B>
SECURITY ALARMS, INC., </B>a Texas corporation
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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"><B>MCFSA, LTD.,</B><BR>
a Texas limited partnership
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>METROPLEX COMMERCIAL FIRE AND</B></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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SECURITY ALARMS, INC., </B>a Texas</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">corporation, its general partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</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"><B>COM-TEC SECURITY, LLC,</B><BR>
a Wisconsin limited partnership
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>COM-TEC CALIFORNIA LIMITED<BR>
PARTNERSHIP, </B>a Wisconsin<BR>
limited partnership

</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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"><U><B>REAFFIRMATION OF GUARANTY AGREEMENT</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The undersigned (a)&nbsp;acknowledges receipt of a copy of (i)&nbsp;Amendment No.&nbsp;3 to Loan and Security
Agreement, dated August&nbsp;3, 2009, between ISI Security Group, Inc. and The PrivateBank and Trust
Company, (b)&nbsp;consents to such amendments and waivers and all prior amendments and each of the
transactions referenced therein, and (c)&nbsp;hereby reaffirms its obligations under its Unconditional
Continuing Guaranty Agreement, dated as of January&nbsp;8, 2009 in favor of The PrivateBank and Trust
Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Dated as of August&nbsp;3, 2009
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ARGYLE SECURITY, INC., </B>a Delaware corporation
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: <BR>
Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Donald F. Neville
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Donald F. Neville
</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">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



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

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




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
