telling sharepoint not to manage a .net application

Sharepoint 2010. asp.net 3.5

I created a .net application. I tested it and it runs on a dev box under IIS 7. 

I'm now trying to make it run on my sharepoint server under the layouts folder.

I added the code to a subfolder in the layouts folder.
I added the application to IIS under the layout folder.

I'm now trying to figure out how to tell sharepoint to not manage the application and to let IIS manage the application. Googling this told me that in 2003 sharepoint I could use central admin to create an exclude directory entry. That doesn't exist in 2010. what do I do to exclude my application?

Mike