<PAGE>

                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of May 20, 2003

                                  by and among

                                   MUZAK LLC,

                              MUZAK FINANCE CORP.,

                                 THE GUARANTORS

                                  named herein

                                       and

                            BEAR, STEARNS & CO. INC.,
                              LEHMAN BROTHERS INC.
                                       and
                             FLEET SECURITIES, INC.

                              as Initial Purchasers

                                   ----------

                                  $220,000,000

                            10% SENIOR NOTES DUE 2009

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
1.    Definitions.............................................................1
2.    Exchange Offer..........................................................5
3.    Shelf Registration......................................................8
4.    Additional Interest.....................................................9
5.    Registration Procedures................................................11
6.    Registration Expenses..................................................19
7.    Indemnification........................................................20
8.    Rules 144 and 144A.....................................................23
9.    Underwritten Registrations.............................................23
10.   Miscellaneous..........................................................24
      (a)   Remedies.........................................................24
      (b)   No Inconsistent Agreements.......................................24
      (c)   Adjustments Affecting Registrable Notes..........................24
      (d)   Amendments and Waivers...........................................24
      (e)   Notices..........................................................25
      (f)   Successors and Assigns...........................................26
      (g)   Counterparts.....................................................26
      (h)   Headings.........................................................26
      (i)   Governing Law....................................................26
      (j)   Severability.....................................................26
      (k)   Notes Held by any Issuer or Its Affiliates.......................27
      (l)   Third Party Beneficiaries........................................27
      (m)   Entire Agreement.................................................27
      (n)   Joint and Several Obligations....................................27

                                      -i-

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                          REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the "Agreement") is made and
entered into as of May 20, 2003, by and among Muzak LLC, a Delaware limited
liability company (the "Company"), Muzak Finance Corp., a Delaware corporation
("Finance Corp." together with the Company, the "Notes Issuers"), the Guarantors
(as defined) and Bear, Stearns & Co. Inc., Lehman Brothers Inc. and Fleet
Securities, Inc. (the "Initial Purchasers").

          This Agreement is entered into in connection with the Purchase
Agreement, dated May 20, 2003, by and among the Notes Issuers, the Guarantors
and the Initial Purchasers (the "Purchase Agreement") relating to the sale by
the Notes Issuers to the Initial Purchasers of $220,000,000 aggregate principal
amount of the Notes Issuers' 10% Senior Notes due 2009 (the "Notes") and the
unconditional guarantee thereof by the Guarantors on a joint and several basis
(the "Guarantee"). In order to induce the Initial Purchasers to enter into the
Purchase Agreement, the Issuers (as defined) have agreed to provide the
registration rights set forth in this Agreement for the benefit of the holders
of Registrable Notes (as defined), including, without limitation, the Initial
Purchasers. The execution and delivery of this Agreement is a condition to the
Initial Purchasers' obligation to purchase the Notes under the Purchase
Agreement.

          The parties hereby agree as follows:

1.   Definitions

          As used in this Agreement, the following terms shall have the
following meanings:

          Additional Interest: See Section 4(a).

          Advice: See the last paragraph of Section 5.

          Agreement: See the first introductory paragraph to this Agreement.

          Applicable Period: See Section 2(b).

          Business Day: A day that is not a Saturday, a Sunday, or a day on
which banking institutions in New York, New York are required to be closed.

          Commission: The Securities and Exchange Commission.

          Company: See the first introductory paragraph to this Agreement.

          Deadline: See Section 5.

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                                      -2-

          Effectiveness Date: The 180th day after the Issue Date, in the case of
the Exchange Registration Statement (or in the case of a Shelf Registration
Statement filed before the filing of an Exchange Registration Statement), and
the 90th day after the delivery of the Shelf Notice, in the case of the Initial
Shelf Registration.

          Effectiveness Period: See Section 3(a).

          Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.

          Exchange Notes: See Section 2(a).

          Exchange Offer: See Section 2(a).

          Exchange Registration Statement: See Section 2(a).

          Filing Date: The 90th day after the Issue Date (regardless of whether
the actual filing precedes such date).

          Guarantee: See the second introductory paragraph to this Agreement.

          Guarantors: Each of Business Sound, Inc., an Ohio corporation, Muzak
Capital Corporation, a Delaware corporation, MLP Environmental Music, LLC, a
Washington limited liability company, BI Acquisition, LLC, a Delaware limited
liability company, Background Music Broadcasters Inc., a California corporation,
Telephone Audio Productions, Inc., a Texas corporation, Vortex Sound
Communications Company, Inc., a Delaware corporation, Music Incorporated, a
Delaware corporation, Muzak Houston, Inc., a Texas corporation, and Muzak
Holdings LLC, a Delaware limited liability company.

          Holder: Any registered holder of Registrable Notes.

          Indemnified Person: See Section 7(c).

          Indemnifying Person: See Section 7(c).

          Indenture: The Indenture, dated May 20, 2003, by and among the Issuers
and State Street Bank and Trust Company, as trustee, pursuant to which the Notes
are being issued, as amended or supplemented from time to time in accordance
with the terms thereof.

          Initial Purchasers: See the first introductory paragraph to this
Agreement.

          Initial Shelf Registration: See Section 3(a).

          Inspectors: See Section 5(o).

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                                      -3-

          Issue Date: The date on which the original Notes were sold to the
Initial Purchasers pursuant to the Purchase Agreement.

          Issuers: The Notes Issuers and the Guarantors, collectively.

          NASD: National Association of Securities Dealers, Inc.

          Notes: See the second introductory paragraph to this Agreement.

          Notes Issuers: See the first introductory paragraph to this Agreement.

          Participating Broker-Dealer: See Section 2(b).

          Person: Any individual, corporation, partnership, limited liability
company, joint venture, association, joint stock company, trust, unincorporated
organization or government (including any agency or political subdivision
thereof).

          Private Exchange: See Section 2(b).

          Private Exchange Notes: See Section 2(b).

          Prospectus: The prospectus included in any Registration Statement
(including, without limitation, any prospectus subject to completion and a
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Notes covered by such Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

          Purchase Agreement: See the second introductory paragraph to this
Agreement.

          Records: See Section 5(o).

          Registrable Notes: Each Note upon original issuance thereof and at all
times subsequent thereto, each Exchange Note as to which Section 2(c)(iv) hereof
is applicable upon original issuance thereof and at all times subsequent thereto
and each Private Exchange Note upon original issuance thereof and at all times
subsequent thereto, until, in the case of any such Note, Exchange Note or
Private Exchange Note, as the case may be, the earliest to occur of (i) a
Registration Statement (other than, with respect to any Exchange Note as to
which Section 2(c)(iv) hereof is applicable) covering such Note, Exchange Note
or Private Exchange Note, as the case may be, has been declared effective by the
Commission and such

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                                      -4-

Note, Exchange Note or Private Exchange Note, as the case may be, has been
disposed of in accordance with such effective Registration Statement, (ii) such
Note, Exchange Note or Private Exchange Note, as the case may be, is sold in
compliance with Rule 144, (iii) in the case of any Note, such Note has been
exchanged pursuant to the Exchange Offer for an Exchange Note or Exchange Notes
which may be resold without restriction under federal securities laws, or (iv)
such Note, Exchange Note or Private Exchange Note, as the case may be, ceases to
be outstanding for purposes of the Indenture.

          Registration Statement: Any registration statement of any of the
Issuers, including, but not limited to, the Exchange Registration Statement,
that covers any of the Registrable Notes pursuant to the provisions of this
Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all material incorporated by reference or deemed to be incorporated by reference
in such registration statement.

          Rule 144: Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the Commission providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

          Rule 144A: Rule 144A under the Securities Act, as such Rule may be
amended from time to time, or any similar rule (other than Rule 144) or
regulation hereafter adopted by the Commission.

          Rule 415: Rule 415 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the Commission.

          Securities Act: The Securities Act of 1933, as amended, and the rules
and regulations of the Commission promulgated thereunder.

          Shelf Notice: See Section 2(c).

          Shelf Registration: See Section 3(b).

          Subsequent Shelf Registration: See Section 3(b).

          TIA: The Trust Indenture Act of 1939, as amended.

          Trustee: The trustee under the Indenture and, if existent, the trustee
under any indenture governing the Exchange Notes and Private Exchange Notes (if
any).

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                                      -5-

          Underwritten registration or underwritten offering: A registration in
which securities of one or more of the Issuers are sold to an underwriter for
reoffering to the public.

2.   Exchange Offer

          (a) Each of the Issuers agrees to file with the Commission no later
than the Filing Date, an offer to exchange (the "Exchange Offer") any and all of
the Registrable Notes (other than Private Exchange Notes, if any) for a like
aggregate principal amount of debt securities of the Notes Issuers which are
identical in all material respects to the Notes (the "Exchange Notes") (and
which are entitled to the benefits of the Indenture or a trust indenture which
is identical in all material respects to the Indenture (other than such changes
to the Indenture or any such identical trust indenture as are necessary to
comply with any requirements of the Commission to effect or maintain the
qualification thereof under the TIA) and which, in either case, has been
qualified under the TIA and which shall also be entitled to the benefits of the
Guarantees of the Guarantors), except that the Exchange Notes shall have been
registered pursuant to an effective Registration Statement under the Securities
Act and shall contain no restrictive legend thereon. The Exchange Offer shall be
registered under the Securities Act on the appropriate form (the "Exchange
Registration Statement") and shall comply with all applicable tender offer rules
and regulations under the Exchange Act. Each of the Issuers agrees to use its
reasonable best efforts to (x) cause the Exchange Registration Statement to be
declared effective under the Securities Act on or before the Effectiveness Date;
(y) keep the Exchange Offer open for at least 30 days (or longer if required by
applicable law) after the date that notice of the Exchange Offer is first mailed
to Holders; and (z) consummate the Exchange Offer on or prior to the 35th day
following the date on which the Exchange Registration Statement is declared
effective. If after such Exchange Registration Statement is initially declared
effective by the Commission, the Exchange Offer or the issuance of the Exchange
Notes thereunder is interfered with by any stop order, injunction or other order
or requirement of the Commission or any other governmental agency or court, such
Exchange Registration Statement shall be deemed not to have become effective for
purposes of this Agreement. Each Holder who participates in the Exchange Offer
will be required to represent that any Exchange Notes received by it will be
acquired in the ordinary course of its business, that at the time of the
consummation of the Exchange Offer such Holder will have no arrangement or
understanding with any Person to participate in the distribution of the Exchange
Notes, that such Holder is not an affiliate of any Issuer within the meaning of
the Securities Act, and any additional representations that in the written
opinion of counsel to the Issuers are necessary under then-existing
interpretations of the Commission in order for the Exchange Registration
Statement to be declared effective. Upon consummation of the Exchange Offer in
accordance with this Section 2, the provisions of this Agreement shall continue
to apply, mutatis mutandis, solely with respect to Registrable Notes that are
Private Exchange Notes and Exchange Notes held by Participating Broker-Dealers,
and the Issuers shall have no further obligation to register Registrable Notes
(other than Private Exchange Notes and other than in respect of any

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                                      -6-

Exchange Notes as to which clause 2(c)(iv) hereof applies) pursuant to Section 3
of this Agreement.

          (b) The Issuers shall include within the Prospectus contained in the
Exchange Registration Statement a section entitled "Underwriting," reasonably
acceptable to the Initial Purchasers, which shall contain a summary statement of
the positions taken or policies made by the Staff of the Commission with respect
to the potential "underwriter" status of any broker-dealer that is the
beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Notes received by such broker-dealer in the Exchange Offer (a "Participating
Broker-Dealer"), whether such positions or policies have been publicly
disseminated by the Staff of the Commission or such positions or policies, in
the reasonable judgment of the Initial Purchasers, represent the prevailing
views of the Staff of the Commission. Such "Underwriting" section shall also
allow, to the extent permitted by applicable policies and regulations of the
Commission, the use of the Prospectus by all Persons subject to the prospectus
delivery requirements of the Securities Act, including, to the extent so
permitted, all Participating Broker-Dealers, and include a statement describing
the manner in which Participating Broker-Dealers may resell the Exchange Notes.

          Each of the Issuers shall use its reasonable best efforts to keep the
Exchange Registration Statement effective and to amend and supplement the
Prospectus contained therein, in order to permit such Prospectus to be lawfully
delivered by all Persons subject to the prospectus delivery requirements of the
Securities Act for such period of time, not to exceed 180 days from the date the
Exchange Offer is consummated, as such Persons must comply with such
requirements in connection with offers and sales of the Exchange Notes (the
"Applicable Period").

          If, upon consummation of the Exchange Offer, any Initial Purchaser
holds any Notes acquired by it and having the status of an unsold allotment in
an initial distribution, the Issuers upon the request of any Initial Purchaser
shall, simultaneously with the delivery of the Exchange Notes in the Exchange
Offer, issue and deliver to such Initial Purchaser, in exchange (the "Private
Exchange") for the Notes held by such Initial Purchaser, a like principal amount
of debt securities of the Notes Issuers that are identical in all material
respects to the Exchange Notes except for the existence of restrictions on
transfer thereof under the Securities Act and securities laws of the several
states of the United States (the "Private Exchange Notes") (and which are issued
pursuant to the same indenture as the Exchange Notes and which will have the
Guarantees of the Guarantors). The Private Exchange Notes shall bear the same
CUSIP number as the Exchange Notes. Interest on the Exchange Notes and Private
Exchange Notes will accrue from the last interest payment date on which interest
was paid on the Notes surrendered in exchange therefor or, if no interest has
been paid on the Notes, from the Issue Date.

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                                      -7-

          In connection with the Exchange Offer, the Issuers shall:

          (1) mail to each Holder a copy of the Prospectus forming part of the
     Exchange Registration Statement, together with an appropriate letter of
     transmittal and related documents;

          (2) permit Holders to withdraw tendered Registrable Notes at any time
     prior to the close of business, New York time, on the last Business Day on
     which the Exchange Offer shall remain open; and

          (3) otherwise comply in all material respects with all applicable
     laws.

          As soon as practicable after the close of the Exchange Offer or the
Private Exchange, as the case may be, the Issuers shall:

          (1) accept for exchange all Registrable Notes validly tendered and not
     validly withdrawn pursuant to the Exchange Offer or the Private Exchange;

          (2) deliver to the Trustee for cancellation all Registrable Notes so
     accepted for exchange; and

          (3) cause the Trustee to authenticate and deliver promptly to each
     Holder tendering such Registrable Notes, Exchange Notes or Private Exchange
     Notes, as the case may be, equal in principal amount to the Notes of such
     Holder so accepted for exchange.

          The Exchange Notes and the Private Exchange Notes may be issued under
(i) the Indenture or (ii) an indenture identical in all material respects to the
Indenture, which in either event will provide that the Exchange Notes will not
be subject to the transfer restrictions set forth in the Indenture and that the
Exchange Notes, the Private Exchange Notes and the Notes, if any, will vote and
consent together on all matters as one class and that none of the Exchange
Notes, the Private Exchange Notes or the Notes, if any, will have the right to
vote or consent as a separate class on any matter.

          (c) If, (i) because of any change in law or in currently prevailing
interpretations of the staff of the Commission, the Notes Issuers are not
permitted to effect an Exchange Offer, (ii) the Exchange Offer is not
consummated within 225 days of the Issue Date, (iii) any holder of Private
Exchange Notes so requests in writing to the Company or (iv) in the case of any
Holder that participates in the Exchange Offer (and tenders its Registrable
Notes prior to the expiration thereof), such Holder does not receive Exchange
Notes that may be sold without restriction under federal securities laws (other
than due solely to the status of such Holder as an affiliate of any Issuer
within the meaning of the Securities Act) and so notifies the Company within 30
days following the consummation of the Exchange Offer (and providing a rea-

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                                      -8-

sonable basis for its conclusions), in the case of each of clauses (i)-(iv),
then the Issuers shall promptly deliver to the Holders and the Trustee written
notice thereof (the "Shelf Notice") and shall file a Shelf Registration pursuant
to Section 3.

3.   Shelf Registration

          If a Shelf Notice is delivered as contemplated by Section 2(c), then:

          (a) Shelf Registration. The Issuers shall as promptly as reasonably
     practicable file with the Commission a Registration Statement for an
     offering to be made on a continuous basis pursuant to Rule 415 covering all
     of the Registrable Notes (the "Initial Shelf Registration"). If the Issuers
     shall not have yet filed the Exchange Registration Statement, each of the
     Issuers shall use its reasonable best efforts to file with the Commission
     the Initial Shelf Registration on or prior to the Filing Date and shall use
     its reasonable best efforts to cause such Initial Shelf Registration to be
     declared effective under the Securities Act on or prior to the
     Effectiveness Date. Otherwise, each of the Issuers shall file with the
     Commission the Initial Shelf Registration within 90 days of the delivery of
     the Shelf Notice and shall use its reasonable best efforts to cause such
     Shelf Registration to be declared effective under the Securities Act on or
     prior to the Effectiveness Date. The Initial Shelf Registration shall be on
     Form S-1 or another appropriate form permitting registration of such
     Registrable Notes for resale by Holders in the manner or manners designated
     by them (including, without limitation, one or more underwritten
     offerings). The Issuers shall not permit any securities other than the
     Registrable Notes to be included in any Shelf Registration. Each of the
     Issuers shall use its reasonable best efforts to keep the Initial Shelf
     Registration continuously effective under the Securities Act until the date
     which is two years from the effective date of such Initial Shelf
     Registration (or, if Rule 144(k) under the Securities Act is amended to
     permit unlimited resales by non-affiliates within a lesser period, such
     lesser period) (subject to extension pursuant to the last paragraph of
     Section 5 hereof) (the "Effectiveness Period") or such shorter period
     ending when (i) all Registrable Notes covered by the Initial Shelf
     Registration have been sold in the manner set forth and as contemplated in
     the Initial Shelf Registration or (ii) a Subsequent Shelf Registration
     covering all of the Registrable Notes has been declared effective under the
     Securities Act.

          (b) Subsequent Shelf Registrations. If the Initial Shelf Registration
     or any Subsequent Shelf Registration ceases to be effective for any reason
     at any time during the Effectiveness Period (other than because of the sale
     of all of the securities registered thereunder), each of the Issuers shall
     use its reasonable best efforts to obtain the prompt withdrawal of any
     order suspending the effectiveness thereof, and in any event shall within
     45 days of such cessation of effectiveness amend the Shelf Registration in
     a manner to obtain the withdrawal of the order suspending the effectiveness
     thereof, or

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                                      -9-

     file an additional "shelf" Registration Statement pursuant to Rule 415
     covering all of the Registrable Notes (a "Subsequent Shelf Registration").
     If a Subsequent Shelf Registration is filed, each of the Issuers shall use
     its reasonable best efforts to cause the Subsequent Shelf Registration to
     be declared effective as soon as practicable after such filing and to keep
     such Subsequent Shelf Registration continuously effective for a period
     equal to the number of days in the Effectiveness Period less the aggregate
     number of days during which the Initial Shelf Registration or any
     Subsequent Shelf Registrations was previously continuously effective. As
     used herein the term "Shelf Registration" means the Initial Shelf
     Registration and any Subsequent Shelf Registration.

          (c) Supplements and Amendments. Each of the Issuers shall promptly
     supplement and amend any Shelf Registration if required by the rules,
     regulations or instructions applicable to the registration form used for
     such Shelf Registration, if required by the Securities Act, or if
     reasonably requested by the Holders of a majority in aggregate principal
     amount of the Registrable Notes covered by such Shelf Registration or by
     any underwriter of such Registrable Notes, in each case, with each Issuer's
     consent, which consent shall not be unreasonably withheld or delayed.

4.   Additional Interest

          (a) The Issuers and the Initial Purchasers agree that the Holders of
Registrable Notes will suffer damages if the Issuers fail to fulfill their
obligations under Section 2 or Section 3 hereof and that it would not be
feasible to ascertain the extent of such damages with precision. Accordingly,
each of the Issuers agrees to pay, as liquidated damages, additional interest on
the Registrable Notes ("Additional Interest") under the circumstances and to the
extent set forth below (each of which shall be given independent effect):

          (i) if (A) neither the Exchange Registration Statement nor the Initial
     Shelf Registration has been filed on or prior to the Filing Date or (B)
     notwithstanding that the Issuers have consummated or will consummate an
     Exchange Offer, the Issuers are required to file a Shelf Registration and
     such Shelf Registration is not filed on or prior to the 90th day after
     delivery of the Shelf Notice, then, in the case of subclause (A),
     commencing on the day after the Filing Date or, in the case of subclause
     (B), commencing on the 91st day following delivery of the Shelf Notice,
     Additional Interest shall accrue on the Registrable Notes over and above
     the stated interest at a rate of 0.50% per annum for the first 90 days
     immediately following the Filing Date, such Additional Interest rate
     increasing by an additional 0.25% per annum at the beginning of each
     subsequent 90-day period;

          (ii) if (A) neither the Exchange Registration Statement nor the
     Initial Shelf Registration is declared effective on or prior to the
     Effectiveness Date applicable thereto or (B) notwithstanding that the
     Issuers have consummated or will consummate

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                                      -10-

     an Exchange Offer, the Issuers are required to file a Shelf Registration
     and such Shelf Registration is not declared effective by the Commission on
     or prior to the Effectiveness Date, then, commencing on the day after such
     applicable Effectiveness Date, Additional Interest shall accrue on the
     Registrable Notes over and above the stated interest at a rate of 0.50% per
     annum for the first 90 days immediately following the day after the
     applicable Effectiveness Date, such Additional Interest rate increasing by
     an additional 0.25% per annum at the beginning of each subsequent 90-day
     period; and

          (iii) if (A) the Issuers have not exchanged Exchange Notes for all
     Notes validly tendered in accordance with the terms of the Exchange Offer
     on or prior to 35 days after the date on which the Exchange Registration
     Statement was declared effective, (B) the Exchange Registration Statement
     ceases to be effective prior to consummation of the Exchange Offer or (C)
     if applicable, a Shelf Registration has been declared effective and such
     Shelf Registration ceases to be effective at any time during the
     Effectiveness Period, then Additional Interest shall accrue on the
     Registrable Notes over and above the stated interest at a rate of 0.50% per
     annum for the first 90 days commencing on the (x) 36th day after such
     effective date in the case of (A) above or (y) the day such Exchange
     Registration Statement or Shelf Registration ceases to be effective in the
     case of (B) and (C) above, such Additional Interest rate increasing by an
     additional 0.25% per annum at the beginning of each such subsequent 90-day
     period;

provided, however, that the Additional Interest rate on the Registrable Notes
may not exceed in the aggregate 2.0% per annum; provided further that (1) upon
the filing of the Exchange Registration Statement or each Shelf Registration (in
the case of (i) above), (2) upon the effectiveness of the Exchange Registration
Statement or each Shelf Registration, as the case may be (in the case of (ii)
above), or (3) upon the exchange of Exchange Notes for all Registrable Notes
validly tendered (in the case of (iii)(A) above) or upon the effectiveness of an
Exchange Registration Statement or Shelf Registration which had ceased to remain
effective (in the case of (iii)(B) and (C) above), Additional Interest on any
Registrable Notes then accruing Additional Interest as a result of such clause
(or the relevant subclause thereof), as the case may be, shall cease to accrue.

          (b) The Issuers shall notify the Trustee within one Business Day after
each and every date on which an event occurs in respect of which Additional
Interest is required to be paid. Any amounts of Additional Interest due pursuant
to (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be payable in cash
semi-annually on each regular interest payment date specified in the Indenture
(to the Holders of Registrable Notes of record on the regular record date
therefor (as specified in the Indenture) immediately preceding such dates),
commencing with the first such regular interest payment date occurring after any
such Additional Interest commences to accrue. The amount of Additional Interest
will be determined by multiplying the applicable Additional Interest rate by the
principal amount of the Notes subject thereto, multi-

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                                      -11-

plied by a fraction, the numerator of which is the number of days such
Additional Interest rate was applicable during such period (determined on the
basis of a 360-day year comprised of twelve 30-day months), and the denominator
of which is 360.

5.   Registration Procedures

          In connection with the filing of any Registration Statement pursuant
to Sections 2 or 3 hereof, each Issuer shall effect such registrations to permit
the sale of such securities covered thereby in accordance with the intended
method or methods of disposition thereof, and pursuant thereto and in connection
with any Registration Statement filed by each Issuer hereunder, each Issuer
shall:

          (a) Prepare and file with the Commission prior to the Filing Date, the
     Exchange Registration Statement or if the Exchange Registration Statement
     is not filed or is unavailable, a Shelf Registration as prescribed by
     Section 2 or 3, and use its reasonable best efforts to cause each such
     Registration Statement to become effective and remain effective as provided
     herein; provided that, if (1) a Shelf Registration is filed pursuant to
     Section 3, or (2) a Prospectus contained in an Exchange Registration
     Statement filed pursuant to Section 2 is required to be delivered under the
     Securities Act by any Participating Broker-Dealer who seeks to sell
     Exchange Notes during the Applicable Period and has advised the Company
     that it is a Participating Broker-Dealer, before filing any Registration
     Statement or Prospectus or any amendments or supplements thereto, the
     Issuers shall, if requested, furnish to and afford the Holders of the
     Registrable Notes to be registered pursuant to such Shelf Registration or
     each such Participating Broker-Dealer, as the case may be, covered by such
     Registration Statement, their counsel and the managing underwriters, if
     any, a reasonable opportunity to review copies of all such documents
     (including copies of any documents to be incorporated by reference therein
     and all exhibits thereto) proposed to be filed (in each case, to the extent
     practicable at least five Business Days prior to such filing). The Issuers
     shall not file any such Registration Statement or Prospectus or any
     amendments or supplements thereto if the Holders of a majority in aggregate
     principal amount of the Registrable Notes covered by such Registration
     Statement, or any such Participating Broker-Dealer, as the case may be,
     their counsel, or the managing underwriters, if any, shall reasonably
     object.

          (b) Prepare and file with the Commission such amendments and
     post-effective amendments to each Shelf Registration or Exchange
     Registration Statement, as the case may be, as may be necessary to keep
     such Registration Statement continuously effective for the Effectiveness
     Period or the Applicable Period, as the case may be; cause the related
     Prospectus to be supplemented by any Prospectus supplement required by
     applicable law, and as so supplemented to be filed pursuant to Rule 424 (or
     any similar provisions then in force) under the Securities Act; and comply
     with the

<PAGE>

                                      -12-

     provisions of the Securities Act and the Exchange Act applicable to it with
     respect to the disposition of all securities covered by such Registration
     Statement as so amended or in such Prospectus as so supplemented and with
     respect to the subsequent resale of any securities being sold by a
     Participating Broker-Dealer covered by any such Prospectus. The Issuers
     shall be deemed not to have used their reasonable best efforts to keep a
     Registration Statement effective during the Applicable Period if they
     voluntarily take any action that would result in selling Holders of the
     Registrable Notes covered thereby or Participating Broker-Dealers seeking
     to sell Exchange Notes not being able to sell such Registrable Notes or
     such Exchange Notes during that period unless such action is required by
     applicable law, rule or regulation or unless the Issuers comply with this
     Agreement, including, without limitation, the provisions of paragraph 5(k)
     hereof and the last paragraph of Section 5.

          (c) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Notes during the
     Applicable Period from whom the Issuers have received written notice that
     it will be a Participating Broker-Dealer, notify the selling Holders of
     Registrable Notes, and each such Participating Broker-Dealer, their counsel
     and the managing underwriters, if any, promptly (but in any event within
     two Business Days), and confirm such notice in writing, (i) when a
     Prospectus or any Prospectus supplement or post-effective amendment has
     been filed, and, with respect to a Registration Statement or any
     post-effective amendment, when the same has become effective (including in
     such notice a written statement that any Holder may, upon request, obtain,
     without charge, one conformed copy of such Registration Statement or
     post-effective amendment including financial statements and schedules,
     documents incorporated or deemed to be incorporated by reference and
     exhibits), (ii) of the issuance by the Commission of any stop order
     suspending the effectiveness of a Registration Statement or of any order
     preventing or suspending the use of any preliminary prospectus or the
     initiation of any proceedings for that purpose, (iii) if at any time when a
     prospectus is required by the Securities Act to be delivered in connection
     with sales of the Registrable Notes the representations and warranties of
     any Issuer contained in any agreement (including any underwriting agreement
     contemplated by Section 5(n) hereof) cease to be true and correct in any
     material respect, (iv) of the receipt by any Issuer of any notification
     with respect to the suspension of the qualification or exemption from
     qualification of a Registration Statement or any of the Registrable Notes
     or the Exchange Notes to be sold by any Participating Broker-Dealer for
     offer or sale in any jurisdiction, or the initiation or threatening of any
     proceeding for such purpose, (v) of the happening of any event, the
     existence of any condition or any information becoming known that makes any
     statement made in such Registration Statement or related Prospectus or any
     document incorporated or deemed to be incorporated therein by reference
     untrue in any material respect or that requires the making

<PAGE>

                                      -13-

     of any changes in, or amendments or supplements to, such Registration
     Statement, Prospectus or documents so that, in the case of the Registration
     Statement, it will not contain any untrue statement of a material fact or
     omit to state any material fact required to be stated therein or necessary
     to make the statements therein not misleading, and that in the case of the
     Prospectus, it will not contain any untrue statement of a material fact or
     omit to state any material fact required to be stated therein or necessary
     to make the statements therein, in light of the circumstances under which
     they were made, not misleading, and (vi) of the Issuers' reasonable
     determination that a post-effective amendment to a Registration Statement
     would be appropriate.

          (d) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Notes during the
     Applicable Period, use its reasonable best efforts to prevent the issuance
     of any order suspending the effectiveness of a Registration Statement or of
     any order preventing or suspending the use of a Prospectus or suspending
     the qualification (or exemption from qualification) of any of the
     Registrable Notes or the Exchange Notes to be sold by any Participating
     Broker-Dealer, for sale in any jurisdiction, and, if any such order is
     issued, to use its reasonable best efforts to obtain the withdrawal of any
     such order at the earliest possible date.

          (e) If a Shelf Registration is filed pursuant to Section 3 and if
     requested by the managing underwriters, if any, or the Holders of a
     majority in aggregate principal amount of the Registrable Notes being sold
     in connection with an underwritten offering, (i) as promptly as practicable
     incorporate in a prospectus supplement or post-effective amendment such
     information or revisions to information therein relating to such
     underwriters or selling Holders as the managing underwriters, if any, or
     such Holders or their counsel reasonably request to be included or made
     therein, (ii) make all required filings of such prospectus supplement or
     such post-effective amendment as soon as practicable after the Issuers have
     received notification of the matters to be incorporated in such prospectus
     supplement or post-effective amendment, and (iii) supplement or make
     amendments to such Registration Statement.

          (f) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Notes during the
     Applicable Period, furnish to each selling Holder of Registrable Notes and
     to each such Participating Broker-Dealer who so requests and to counsel and
     each managing underwriter, if any, without charge, one conformed copy of
     the Registration Statement or Registration Statements and each
     post-effective amendment thereto, including financial statements and
     schedules, and, if re-

<PAGE>

                                      -14-

     quested, all documents incorporated or deemed to be incorporated therein by
     reference and all exhibits.

          (g) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer, deliver to each selling Holder of Registrable
     Notes or each such Participating Broker-Dealer, as the case may be, their
     respective counsel, and the underwriters, if any, without charge, as many
     copies of the Prospectus or Prospectuses (including each form of
     preliminary prospectus) and each amendment or supplement thereto and any
     documents incorporated by reference therein as such Persons may reasonably
     request; and, subject to the last paragraph of this Section 5, the Issuers
     hereby consent to the use of such Prospectus and each amendment or
     supplement thereto by each of the selling Holders of Registrable Notes and
     each Participating Broker-Dealer, and the underwriters or agents, if any,
     and dealers (if any), in connection with the offering and sale of the
     Registrable Notes covered by, or the sale by Participating Broker-Dealers
     of the Exchange Notes pursuant to, such Prospectus and any amendment or
     supplement thereto.

          (h) Prior to any public offering of Registrable Notes or any delivery
     of a Prospectus contained in the Exchange Registration Statement by any
     Participating Broker-Dealer who seeks to sell Exchange Notes during the
     Applicable Period, use its reasonable best efforts to register or qualify,
     and cooperate with the selling Holders of Registrable Notes and each such
     Participating Broker-Dealer, the underwriters, if any, and their respective
     counsel in connection with the registration or qualification (or exemption
     from such registration or qualification) of such Registrable Notes or
     Exchange Notes, as the case may be, for offer and sale under the securities
     or Blue Sky laws of such jurisdictions within the United States as any
     selling Holder, Participating Broker-Dealer, or the managing underwriter or
     underwriters, if any, reasonably request in writing; provided that where
     Exchange Notes held by Participating Broker-Dealers or Registrable Notes
     are offered pursuant to an underwritten offering, counsel to the
     underwriters shall, at the reasonable cost and expense of the Issuers,
     perform the Blue Sky investigations and file registrations and
     qualifications required to be filed pursuant to this Section 5(h); keep
     each such registration or qualification (or exemption therefrom) effective
     during the period such Registration Statement is required to be kept
     effective and do any and all other acts or things reasonably necessary or
     advisable to enable the disposition in such jurisdictions of the Exchange
     Notes by Participating Broker-Dealers or the Registrable Notes covered by
     the applicable Registration Statement; provided that no Issuer shall be
     required to (A) qualify generally to do business in any jurisdiction where
     it is not then so qualified, (B) take any action that would subject it to
     general service of process in any such jurisdiction where it is not

<PAGE>

                                      -15-

     then so subject or (C) subject itself to taxation in excess of a nominal
     dollar amount in any such jurisdiction where it is not then so subject.

          (i) If a Shelf Registration is filed pursuant to Section 3, cooperate
     with the selling Holders of Registrable Notes, any Participating
     Broker-Dealer and the managing underwriter or underwriters, if any, to
     facilitate the timely preparation and delivery of certificates representing
     Registrable Notes to be sold, which certificates shall not bear any
     restrictive legends and shall be in a form eligible for deposit with The
     Depository Trust Company; and enable such Registrable Notes to be in such
     denominations and registered in such names as the managing underwriter or
     underwriters, if any, or Holders may reasonably request.

          (j) Use its reasonable best efforts to cause the Registrable Notes
     covered by the Registration Statement to be registered with or approved by
     such governmental agencies or authorities as may be necessary to enable the
     seller or sellers thereof or the underwriters, if any, to consummate the
     disposition of such Registrable Notes, in which case the Issuers will
     cooperate in all reasonable respects with the filing of such Registration
     Statement and the granting of such approvals.

          (k) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Notes during the
     Applicable Period, upon the occurrence of any event contemplated by
     paragraph 5(c)(v) or 5(c)(vi) hereof, as promptly as reasonably practicable
     prepare and (subject to Section 5(a) hereof) file with the Commission, at
     the Issuers' sole expense, a supplement or post-effective amendment to the
     Registration Statement or a supplement to the related Prospectus or any
     document incorporated or deemed to be incorporated therein by reference, or
     file any other required document so that, as thereafter delivered to the
     purchasers of the Registrable Notes being sold thereunder or to the
     purchasers of the Exchange Notes to whom such Prospectus will be delivered
     by a Participating Broker-Dealer, any such Prospectus will not contain an
     untrue statement of a material fact or omit to state a material fact
     required to be stated therein or necessary to make the statements therein,
     in light of the circumstances under which they were made, not misleading.

          (l) Use its reasonable best efforts to cause the Registrable Notes
     covered by a Registration Statement to be rated with the appropriate rating
     agencies, if so requested by the Holders of a majority in aggregate
     principal amount of Registrable Notes covered by such Registration
     Statement or the managing underwriter or underwriters, if any.

          (m) Prior to the effective date of the first Registration Statement
     relating to the Registrable Notes, (i) provide the Trustee with printed
     certificates for the Registra-

<PAGE>

                                      -16-

     ble Notes in a form eligible for deposit with The Depository Trust Company
     and (ii) provide a CUSIP number for the Registrable Notes.

          (n) In connection with an underwritten offering of Registrable Notes
     pursuant to a Shelf Registration, enter into an underwriting agreement as
     is customary in underwritten offerings of debt securities similar to the
     Notes and take all such other actions as are reasonably requested by the
     managing underwriter or underwriters in order to expedite or facilitate the
     registration or the disposition of such Registrable Notes and, in such
     connection, (i) make such reasonable representations and warranties to the
     underwriters, with respect to the business of the Issuers and their
     subsidiaries and the Registration Statement, Prospectus and documents, if
     any, incorporated or deemed to be incorporated by reference therein, in
     each case, as are customarily made by issuers to underwriters in
     underwritten offerings of debt securities similar to the Notes, and confirm
     the same in writing if and when requested; (ii) obtain the opinion of
     counsel to the Issuers and updates thereof in form and substance reasonably
     satisfactory to the managing underwriter or underwriters, addressed to the
     underwriters covering the matters customarily covered in opinions requested
     in underwritten offerings of debt securities similar to the Notes and such
     other matters as may be reasonably requested by underwriters; (iii) obtain
     "cold comfort" letters and updates thereof in form and substance reasonably
     satisfactory to the managing underwriter or underwriters from the
     independent certified public accountants of the Issuers (and, if necessary,
     any other independent certified public accountants of any subsidiary of any
     Issuer or of any business acquired by any Issuer (including Muzak Limited
     Partnership, a Delaware limited partnership) for which financial statements
     and financial data are, or are required to be, included in the Registration
     Statement), addressed to each of the underwriters, such letters to be in
     customary form and covering matters of the type customarily covered in
     "cold comfort" letters in connection with underwritten offerings of debt
     securities similar to the Notes and such other matters as reasonably
     requested by the managing underwriter or underwriters; and (iv) if an
     underwriting agreement is entered into, the same shall contain
     indemnification provisions and procedures no less favorable than those set
     forth in Section 7 hereof (or such other provisions and procedures
     acceptable to Holders of a majority in aggregate principal amount of
     Registrable Notes covered by such Registration Statement and the managing
     underwriter or underwriters or agents) with respect to all parties to be
     indemnified pursuant to said Section. The above shall be done at each
     closing under such underwriting agreement, or as and to the extent required
     thereunder.

          (o) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Notes during the
     Applicable Period, make available for inspection by any selling Holder of
     such Registrable Notes being sold, and each Partici-

<PAGE>

                                      -17-

     pating Broker-Dealer, any underwriter participating in any such disposition
     of Registrable Notes, if any, and any attorney, accountant or other agent
     retained by any such selling Holder, each Participating Broker-Dealer, as
     the case may be, or underwriter (collectively, the "Inspectors"), at the
     offices where normally kept, during reasonable business hours, all
     financial and other records, pertinent corporate documents and properties
     of each Issuer and its subsidiaries (collectively, the "Records") as shall
     be reasonably necessary to enable them to exercise any applicable due
     diligence responsibilities, and cause the officers, directors and employees
     of each Issuer and its subsidiaries to supply all information reasonably
     requested by any such Inspector in connection with such Registration
     Statement. Records which an Issuer determines, in good faith, to be
     confidential and any Records which it notifies the Inspectors are
     confidential shall not be disclosed by the Inspectors unless (i) the
     disclosure of such Records is necessary to avoid or correct a misstatement
     or omission in such Registration Statement, (ii) the release of such
     Records is ordered pursuant to a subpoena or other order from a court of
     competent jurisdiction or (iii) the information in such Records has been
     made generally available to the public other than as a result of a
     disclosure or failure to safeguard by such Inspector. Each selling Holder
     of such Registrable Notes and each Participating Broker-Dealer will be
     required to agree that information obtained by it as a result of such
     inspections shall be deemed confidential and shall not be used by it as the
     basis for any market transactions in the securities of any Issuer unless
     and until such is made generally available to the public. Each Inspector,
     each selling Holder of such Registrable Notes and each Participating
     Broker-Dealer will be required to further agree that it will, upon learning
     that disclosure of such Records is sought in a court of competent
     jurisdiction pursuant to clause (ii) of the previous sentence or otherwise,
     give notice to the Issuers and allow the Issuers to undertake appropriate
     action to obtain a protective order or otherwise prevent disclosure of the
     Records deemed confidential at its expense.

          (p) Provide an indenture trustee for the Registrable Notes or the
     Exchange Notes, as the case may be, and cause the Indenture or the trust
     indenture provided for in Section 2(a), as the case may be, to be qualified
     under the TIA not later than the effective date of the Exchange Offer or
     the first Registration Statement relating to the Registrable Notes; and in
     connection therewith, cooperate with the trustee under any such indenture
     and the Holders of the Registrable Notes, to effect such changes to such
     indenture as may be required for such indenture to be so qualified in
     accordance with the terms of the TIA; and execute, and use its reasonable
     best efforts to cause such trustee to execute, all documents as may be
     required to effect such changes, and all other forms and documents required
     to be filed with the Commission to enable such indenture to be so qualified
     in a timely manner.

          (q) Comply in all material respects with all applicable rules and
     regulations of the Commission and make generally available to its
     securityholders earnings state-

<PAGE>

                                      -18-

     ments satisfying the provisions of Section 11(a) of the Securities Act and
     Rule 158 thereunder (or any similar rule promulgated under the Securities
     Act) no later than 90 days after the end of any 12-month period (i)
     commencing at the end of any fiscal quarter in which Registrable Notes are
     sold to underwriters in a firm commitment or best efforts underwritten
     offering and (ii) if not sold to underwriters in such an offering,
     commencing on the first day of the first fiscal quarter of the Company
     after the effective date of a Registration Statement, which statements
     shall cover said 12-month periods.

          (r) Upon consummation of the Exchange Offer or a Private Exchange,
     obtain an opinion of counsel to the Issuers, in a form customary for
     underwritten transactions, addressed to the Trustee for the benefit of all
     Holders of Registrable Notes participating in the Exchange Offer or the
     Private Exchange, as the case may be, that the Exchange Notes or the
     Private Exchange Notes, as the case may be, the Guarantees and the related
     indenture constitute legally valid and binding obligations of the Issuers,
     enforceable against the Issuers in accordance with their respective terms.

          (s) If the Exchange Offer or a Private Exchange is to be consummated,
     upon delivery of the Registrable Notes by Holders to the Issuers (or to
     such other Person as directed by the Company) in exchange for the Exchange
     Notes or the Private Exchange Notes, as the case may be, the Issuers shall
     mark, or caused to be marked, on such Registrable Notes that such
     Registrable Notes are being canceled in exchange for the Exchange Notes or
     the Private Exchange Notes, as the case may be; in no event shall such
     Registrable Notes be marked as paid or otherwise satisfied.

          (t) Cooperate with each seller of Registrable Notes covered by any
     Registration Statement and each underwriter, if any, participating in the
     disposition of such Registrable Notes and their respective counsel in
     connection with any filings required to be made with the NASD.

          (u) Use its reasonable best efforts to take all other steps reasonably
     necessary to effect the registration of the Registrable Notes covered by a
     Registration Statement contemplated hereby.

          The Issuers may require each seller of Registrable Notes as to which
any registration is being effected to furnish to the Issuers such information
regarding such seller and the distribution of such Registrable Notes as the
Issuers may, from time to time, reasonably request including, without
limitation, the information specified in Item 507 or Item 508 of Regulation S-K
promulgated under the Securities Act. The Issuers may exclude from such
registration the Registrable Notes of any seller who fails to furnish such
information within 20 Business Days (the "Deadline") after receiving such
request. No Holder shall be entitled to liquidated damages pursuant to Section 4
hereof unless such Holder shall have provided all such information by the
Deadline. Each seller as to which any Shelf Registration Statement is

<PAGE>

                                      -19-

being effected agrees to furnish promptly to the Issuers all information
required to be disclosed in order to make the information previously furnished
to the Issuers by such seller not materially misleading.

          Each Holder of Registrable Notes and each Participating Broker-Dealer
agrees by acquisition of such Registrable Notes or Exchange Notes to be sold by
such Participating Broker-Dealer, as the case may be, that, upon receipt of any
notice from the Issuers of the happening of any event of the kind described in
Section 5(c)(ii), 5(c)(iv), 5(c)(v), or 5(c)(vi), such Holder will forthwith
discontinue disposition of such Registrable Notes covered by such Registration
Statement or Prospectus or Exchange Notes to be sold by such Holder or
Participating Broker-Dealer, as the case may be, and, in each case,
dissemination of such Prospectus until such Holder's or Participating
Broker-Dealer's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(k), or until it is advised in writing (the "Advice")
by the Company that the use of the applicable Prospectus may be resumed, and has
received copies of any amendments or supplements thereto. In the event the
Issuers shall give any such notice, each of the Effectiveness Period and the
Applicable Period shall be extended by the number of days during such periods
from and including the date of the giving of such notice to and including the
date when each seller of Registrable Notes covered by such Registration
Statement or Exchange Notes to be sold by such Participating Broker-Dealer, as
the case may be, shall have received (x) the copies of the supplemented or
amended Prospectus contemplated by Section 5(k) or (y) the Advice.

6.   Registration Expenses

          All reasonable fees and expenses incident to the performance of or
compliance with this Agreement by the Issuers shall be borne by the Issuers
whether or not the Exchange Offer or a Shelf Registration is filed or becomes
effective, including, without limitation, (i) registration and filing fees
(including, without limitation, (A) fees with respect to filings required to be
made with the NASD in connection with an underwritten offering and (B) fees and
expenses of compliance with state securities or Blue Sky laws (including,
without limitation, reasonable fees and disbursements of counsel in connection
with Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for
investment under the laws of such jurisdictions (x) where the holders of
Registrable Notes are located, in the case of the Exchange Notes, or (y) as
provided in Section 5(h) hereof, in the case of Registrable Notes or Exchange
Notes to be sold by a Participating Broker-Dealer during the Applicable
Period)), (ii) printing expenses, including, without limitation, expenses of
printing certificates for Registrable Notes or Exchange Notes in a form eligible
for deposit with The Depository Trust Company and of printing prospectuses if
the printing of prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement or by any
Participating Broker-Dealer, as the case may be, (iii) reasonable messenger,
telephone and delivery expenses incurred in con-

<PAGE>

                                      -20-

nection with the Exchange Registration Statement and any Shelf Registration,
(iv) rating agency fees, (v) Securities Act liability insurance, if any Issuer
desires such insurance, (vi) fees and expenses of all other Persons retained by
the Issuers, (vii) internal expenses of the Issuers (including, without
limitation, all salaries and expenses of officers and employees of the Issuers
performing legal or accounting duties), (viii) the expense of any annual or
special audit, (ix) the fees and expenses incurred in connection with the
listing of the securities to be registered on any securities exchange, (x) the
fees and disbursements of underwriters, if any, customarily paid by issuers or
sellers of securities (but not including any underwriting discounts or
commissions or transfer taxes, if any, attributable to the sale of the
Registrable Notes which discounts, commissions or taxes shall be paid by Holders
of such Registrable Notes) and (xi) the expenses relating to printing, word
processing and distributing all Registration Statements, underwriting
agreements, securities sales agreements, indentures and any other documents
necessary in order to comply with this Agreement.

7.   Indemnification

          (a) Each of the Issuers agree, jointly and severally to indemnify and
hold harmless each Holder, its directors, officers, and each Person, if any, who
controls such Holder (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act), from and against any and all losses, claims,
damages, liabilities and judgments (including, without limitation, any legal or
other expenses incurred in connection with investigating or defending any
matter, including any action that could give rise to any such losses, claims,
damages, liabilities or judgments) caused by any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement,
preliminary prospectus or Prospectus (or any amendments or supplements thereto)
provided by the Issuers to any Holder or any prospective purchaser of
Registrable Notes, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein not misleading, except
insofar as such losses, claims, damages, liabilities or judgments are caused by
an untrue statement or omission or alleged untrue statement or omission that is
based upon information relating to any Holder furnished in writing to the
Issuers by any such Holder.

          (b) Each Holder agrees, severally and not jointly, to indemnify and
hold harmless each Issuer, and their respective directors and officers, and each
Person, if any, who controls (within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act) each Issuer to the same extent as the foregoing
indemnity from the Issuers set forth in section (a) above, but only with
reference to information relating to such Holder furnished in writing to the
Issuers by such Holder expressly for use in any Registration Statement. In no
event shall any Holder, its directors, officers or any Person who controls such
Holder be liable or responsible for any amount in excess of the amount by which
the total amount received by such Holder with respect to its sale of Registrable
Notes pursuant to a Registration Statement exceeds (i) the amount paid by such
Holder for such Registrable Notes and (ii) the amount of any damages that such
Holder, its directors, officers or any Person who controls such Holder

<PAGE>

                                      -21-

has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

          (c) In case any action shall be commenced involving any person in
respect of which indemnity may be sought pursuant to Section 7(a) or Section
7(b) hereof (the "Indemnified Person"), the Indemnified Person shall promptly
notify the person against whom such indemnity may be sought (the "Indemnifying
Person") in writing and the Indemnifying Person shall assume the defense of such
action, including the employment of counsel reasonably satisfactory to the
Indemnified Person and the payment of all fees and expenses of such counsel, as
incurred (except that in the case of any action in respect of which indemnity
may be sought pursuant to both Sections 7(a) and 7(b) hereof, a Holder shall not
be required to assume the defense of such action pursuant to this Section 7(c),
but may employ separate counsel and participate in the defense thereof, but the
fees and expenses of such counsel, except as provided below, shall be at the
expense of the Holder). Any Indemnified Person shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of the Indemnified
Person unless (i) the employment of such counsel shall have been specifically
authorized in writing by the Indemnifying Person, (ii) the Indemnifying Person
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the Indemnified Person or (iii) the named parties to
any such action (including any impleaded parties) include both the Indemnified
Person and the Indemnifying Person, and the Indemnified Person shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
Indemnifying Person (in which case the Indemnifying Person shall not have the
right to assume the defense of such action on behalf of the Indemnified Person).
In any such case, the Indemnifying Person shall not, in connection with any one
action or separate but substantially similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) for all Indemnified Persons and all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated
in writing by a majority of the Holders, in the case of the parties indemnified
pursuant to Section 7(a) hereof, and by the Issuers, in the case of parties
indemnified pursuant to Section 7(b) hereof. The Indemnifying Person shall
indemnify and hold harmless the Indemnified Person from and against any and all
losses, claims, damages, liabilities and judgments by reason of any settlement
of any action (i) effected with its written consent or (ii) effected without its
written consent if the settlement is entered into more than twenty business days
after the Indemnifying Person shall have received a request from the Indemnified
Person for reimbursement for the fees and expenses of counsel (in any case where
such fees and expenses are at the expense of the Indemnifying Person) and, prior
to the date of such settlement, the Indemnifying Person shall have failed to
comply with such reimbursement request. No Indemnifying Person shall, without
the prior written consent of the Indemnified Person, effect any settlement or
compromise of, or consent to the entry of judgment with respect to, any pending
or threatened action in respect of which the Indemni-

<PAGE>

                                      -22-

fied Person is or could have been a party and indemnity or contribution may be
or could have been sought hereunder by the Indemnified Person, unless such
settlement, compromise or judgment (i) includes an unconditional release of the
Indemnified Person from all liability on claims that are or could have been the
subject matter of such action and (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act, by or on behalf of the
Indemnified Person.

          (d) To the extent that the indemnification provided for in this
Section 7 is unavailable to an Indemnified Person in respect of any losses,
claims, damages, liabilities or judgments referred to therein, then each
Indemnifying Person, in lieu of indemnifying such Indemnified Person, shall
contribute to the amount paid or payable by such Indemnified Person as a result
of such losses, claims, damages, liabilities or judgments (i) in such proportion
as is appropriate to reflect the relative benefits received by the Issuers, on
the one hand, and the Holders, on the other hand, from their sale of Registrable
Notes or (ii) if the allocation provided by clause 7(d)(i) hereof is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause 7(d)(i) above but also the
relative fault of the Issuers, on the one hand, and of the Holder, on the other
hand, in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities or judgments, as well as any other relevant
equitable considerations. The relative fault of the Issuers, on the one hand,
and of the Holder, on the other hand, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Issuers, on the one hand, or by the Holder, on the
other hand, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The amount
paid or payable by a party as a result of the losses, claims, damages,
liabilities and judgments referred to above shall be deemed to include, subject
to the limitations set forth in Section 7(c) hereof, any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or
defending any action or claim

          (e) The Issuers and each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 7(e) were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an Indemnified Person as a result of the losses,
claims, damages, liabilities or judgments referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such Indemnified
Person in connection with investigating or defending any matter, including any
action that could have given rise to such losses, claims, damages, liabilities
or judgments. Notwithstanding the provisions of this Section 7, no Holder, its
directors, its officers or any Person, if any, who controls such Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total received by such Holder with respect to the sale of Registrable
Notes pursuant to a Regis-

<PAGE>

                                      -23-

tration Statement exceeds (i) the amount paid by such Holder for such
Registrable Notes and (ii) the amount of any damages which such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders' obligations to contribute pursuant to this
Section 7(e) are several in proportion to the respective principal amount of
Registrable Notes held by each Holder hereunder and not joint.

          (f) The indemnity and contribution agreements contained in this
Section 7 will be in addition to any liability which the Indemnifying Persons
may otherwise have to the Indemnified Persons referred to above.

8.   Rules 144 and 144A

          Each of the Issuers covenants that it will file the reports required
to be filed by it under the Securities Act and the Exchange Act and the rules
and regulations adopted by the Commission thereunder in a timely manner and, if
at any time it is not required to file such reports, it will, upon the request
of any Holder of Registrable Notes, make publicly available other information so
long as necessary to permit sales pursuant to Rule 144 and Rule 144A under the
Securities Act. Each of the Issuers further covenants, for so long as any
Registrable Notes remain outstanding, to make available to any Holder or
beneficial owner of Registrable Notes in connection with any sale thereof and
any prospective purchaser of such Registrable Notes from such Holder or
beneficial owner, the information required by Rule 144A(d)(4) under the
Securities Act in order to permit resales of such Registrable Notes pursuant to
Rule 144A.

9.   Underwritten Registrations

          If any of the Registrable Notes covered by any Shelf Registration are
to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering and reasonably acceptable to the Issuers.

          No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

<PAGE>

                                      -24-

10.  Miscellaneous

          (a) Remedies. In the event of a breach by any Issuer of any of its
obligations under this Agreement, each Holder of Registrable Notes and each
Participating Broker-Dealer holding Exchange Notes, in addition to being
entitled to exercise all rights provided herein, in the Indenture or, in the
case of an Initial Purchaser, in the Purchase Agreement, or granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Agreement. Each Issuer agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of
any of the provisions of this Agreement and hereby further agrees that, in the
event of any action for specific performance in respect of such breach, it shall
waive the defense that a remedy at law would be adequate.

          (b) No Inconsistent Agreements. None of the Issuers has entered, as of
the date hereof, and none of the Issuers shall enter, after the date of this
Agreement, into any agreement with respect to any of its securities that is
inconsistent with the rights granted to the Holders of Registrable Notes in this
Agreement or otherwise conflicts with the provisions hereof. None of the Issuers
has entered and none of the Issuers shall enter into any agreement with respect
to any of its securities which will grant to any Person piggy-back rights with
respect to a Registration Statement.

          (c) Adjustments Affecting Registrable Notes. None of the Issuers
shall, directly or indirectly, take any action with respect to the Registrable
Notes as a class that would adversely affect the ability of the Holders of
Registrable Notes to include such Registrable Notes in a registration undertaken
pursuant to this Agreement.

          (d) Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of (A) the Holders of not less than a majority in aggregate principal
amount of the then outstanding Registrable Notes and (B) in circumstances that
would adversely affect Participating Broker-Dealers, the Participating
Broker-Dealers holding not less than a majority in aggregate principal amount of
the Exchange Notes held by all Participating Broker-Dealers. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of Holders of Registrable
Notes whose securities are being tendered pursuant to the Exchange Offer or sold
pursuant to a Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders of Registrable
Notes may be given by Holders of at least a majority in aggregate principal
amount of the Registrable Notes being tendered or being sold by such Holders
pursuant to such Registration Statement.

<PAGE>

                                      -25-

          (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, next-day air courier or telecopier:

          1. if to a Holder of Registrable Notes or any Participating
     Broker-Dealer, at the most current address of such Holder or Participating
     Broker-Dealer, as the case may be, set forth on the records of the
     registrar under the Indenture, with a copy in like manner to the Initial
     Purchasers as follows:

               Bear, Stearns & Co. Inc.
               Lehman Brothers Inc.
               Fleet Securities, Inc.
               c/o Bear, Stearns & Co. Inc.
                   383 Madison Avenue
                   New York, New York 10179
               Facsimile No.: (212) 881-9502

          with a copy to:

               Cahill Gordon & Reindel LLP
               80 Pine Street
               New York, New York 10005
               Facsimile No.: (212) 269-5420
               Attention: John A. Tripodoro, Esq.

          2. if to the Initial Purchasers, at the address specified in Section
10(e)(1);

          3. if to the Issuers, as follows:

               c/o Muzak LLC
               3318 Lakemont Boulevard
               Fort Mill, South Carolina 29708
               Facsimile No.: (803) 396-3264
               Attention: Michael F. Zendan II, Esq.

          with copies to:

               Kirkland & Ellis
               153 East 53rd Street
               New York, New York  10022
               Facsimile No.: (212) 446-4900
               Attention: Joshua N. Korff, Esq.

<PAGE>

                                      -26-

          and to:

               ABRY Partners, LLC
               111 Huntington Avenue, 30th Floor
               Boston, Massachusetts 02199
               Facsimile No.: (617) 859-8797
               Attention: Peni Garber

          All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; one Business Day after
being timely delivered to a next-day air courier guaranteeing overnight
delivery; and when receipt is acknowledged by the addressee, if telecopied.

          Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee under the
Indenture at the address specified in such Indenture.

          (f) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties hereto
and the Holders; provided, however, that this Agreement shall not inure to the
benefit of or be binding upon a successor or assign of a Holder unless and to
the extent such successor or assign holds Registrable Notes.

          (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW THAT WOULD APPLY THE LAW OF ANY OTHER JURISDICTION. EACH OF THE
PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

          (j) Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unen-

<PAGE>

                                      -27-

forceable, the remainder of the terms, provisions, covenants and restrictions
set forth herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated, and the parties hereto shall use their best
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

          (k) Notes Held by any Issuer or Its Affiliates. Whenever the consent
or approval of Holders of a specified percentage of Registrable Notes is
required hereunder, Registrable Notes held by any Issuer or its affiliates (as
such term is defined in Rule 405 under the Securities Act) shall not be counted
in determining whether such consent or approval was given by the Holders of such
required percentage.

          (l) Third Party Beneficiaries. Holders of Registrable Notes and
Participating Broker-Dealers are intended third party beneficiaries of this
Agreement and this Agreement may be enforced by such Persons.

          (m) Entire Agreement. This Agreement, together with the Purchase
Agreement and the Indenture, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and therein and any and all prior oral or
written agreements, representations, or warranties, contracts, understandings,
correspondence, conversations and memoranda among the Initial Purchasers on the
one hand and the Issuers on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or
successors in interest with respect to the subject matter hereof and thereof are
merged herein and replaced hereby.

          (n) Joint and Several Obligations. All of the obligations of the
Issuers hereunder shall be joint and several obligations of each of them.

<PAGE>

                                      -28-

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

                              MUZAK LLC, a Delaware limited liability company


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              MUZAK FINANCE CORP., a Delaware corporation


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              MUZAK HOLDINGS LLC, a Delaware limited
                                 liability company


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              MUZAK CAPITAL CORPORATION, a Delaware corporation


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President

<PAGE>

                                      -29-

                              MLP ENVIRONMENTAL MUSIC, LLC, a
                                 Washington limited liability company


                              By:/s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              BUSINESS SOUND, INC., an Ohio corporation


                              By:/s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              AUDIO ENVIRONMENTS, INC., a California corporation


                              By:/s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              BI ACQUISITION, LLC, a
                                 Delaware limited liability company


                              By:/s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              BACKGROUND MUSIC BROADCASTERS INC.,
                                 a California corporation


                              By:/s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President

<PAGE>

                                      -30-

                              TELEPHONE AUDIO PRODUCTIONS, INC.,
                                 a Texas corporation


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              VORTEX SOUND COMMUNICATIONS COMPANY, INC., a
                                 Delaware corporation


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              MUSIC INCORPORATED, a Delaware corporation


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President


                              MUZAK HOUSTON, INC., a Texas corporation


                              By: /s/ Michael F. Zendan II
                                  ----------------------------------------------
                                  Name:  Michael F. Zendan II
                                  Title: Vice President

<PAGE>

                                      -31-

The foregoing Agreement is hereby
confirmed and accepted as of the date
first above written.

BEAR, STEARNS & CO. INC.


By:  /s/ Joseph B. Sheehan
    ---------------------------------
    Name:  Joseph B. Sheehan
    Title: SMD


LEHMAN BROTHERS INC.


By:  /s/ Michael Goldberg
    ---------------------------------
    Name:  Michael Goldberg
    Title: Managing Director


FLEET SECURITIES, INC.


By:  /s/ Brad Stewart
    ---------------------------------
    Name:  Brad Stewart
    Title: Director