Document:

EX-10.30 2004 NON-EMPLOYEE DIRECTOR STOCK PLAN

 

EXHIBIT 10.30

DELTA APPAREL, INC.

2004 NON-EMPLOYEE DIRECTOR STOCK PLAN

1. Purpose. The purpose of the 2004 Non-Employee Director Stock Plan (the “Plan”) is to
include equity as a component of the compensation of non-employee members of the Board of Directors
(the “Board”) of Delta Apparel, Inc. (the “Company”).

2. Effective Date and Term of Plan. Subject to approval of the shareholders of the Company in
accordance with applicable law and securities exchange rules, the Plan shall be effective as of
October 1, 2004 and shall remain in effect until the earlier of (a) the date the Plan is terminated
by the Committee (as defined below); or (b) December 31, 2009.

3. Eligibility. Any member of the Board who is not an employee of the Company or any of its
subsidiaries shall be eligible to receive an award under the Plan.

4. Administration. The Board, or if the Board so elects a committee of the Board (the “Committee”)
shall administer the Plan. Subject to the express provisions of this Plan, the Committee shall have
the authority to do all things that it may deem necessary or desirable in connection with the
administration of the Plan, including without limitation the authority (a) to establish, modify and
revoke rules relating to the Plan; (b) to interpret the terms of the Plan, any rules under the Plan
and the terms and conditions of any award under the Plan; (c) to approve the form and content of
any documentation relating to awards under the Plan or Plan administration; and (d) consistent with
the express provisions of the Plan, to approve, establish and amend (subject to the award
recipient’s consent except with respect to amendments pursuant to Section 8) the terms governing an
award under the Plan. All determinations, interpretations and decisions made by the Committee under
or with respect to the Plan and awards under the Plan shall be final, conclusive and binding on the
Company, each eligible person, each Plan participant and any beneficiary of an award. No member of
the Committee or the Board shall be liable for any action taken in good faith with respect to the
Plan.

5. Shares Subject to Plan. Up to 25,000 shares of the common stock of the Company may be issued
pursuant to awards under the Plan. In any fiscal year, awards may not be granted providing for the
issue of more than 5,000 shares. In the event that any shares subject to an award are forfeited or
otherwise fail to be issued prior to the forfeiture, cancellation or expiration of an award, such
shares shall again be available for awards under the Plan.

6. Awards. The Committee shall determine which eligible individuals will receive awards under the
Plan, the number of shares granted to each award recipient and the other terms and conditions, if
any, of each award. No awards under the Plan shall be effective unless and until the Plan has been
approved by the shareholders of the Company in accordance with applicable law and securities
exchange rules.

7. Dividends; Shareholder Rights. An award of shares under the Plan shall not entitle a recipient
to receive any dividends or any equivalent amounts prior to the actual issue of shares to the
recipient. An award recipient shall not have any rights as a shareholder prior to the actual issue
of shares to the recipient.

8. Adjustments. In the event of any stock dividend, stock split, combination or exchange of shares,
merger, consolidation, spin-off or other distribution (other than normal cash dividends) of Company
assets to shareholders or any other change affecting the common stock of the Company, the Committee
may make such adjustments to any outstanding awards that the Committee, in its sole discretion, may
deem appropriate to reflect such change. Unless the Committee determines otherwise, in the event of
a stock split, reverse stock split or share dividend having the effect of a stock split, the number
of shares of common stock issuable under the Plan and the number of shares of common stock for
which awards may be granted in any fiscal year shall increase or decrease, as the case may be, in
the same manner and proportion as the outstanding shares of common stock of the Company increase or
decrease as a result of such stock split, reverse stock split or dividend.

9. Compliance with Applicable Laws. Notwithstanding any other provision in the Plan, the Company
shall have no liability to issue any shares under the Plan unless such issuance would comply with
all applicable laws, including without limitation the Securities Act of 1933, the Securities
Exchange Act of 1934 and any applicable state securities laws, and all applicable requirements of
any securities exchange or similar entity.

10. No Fractional Shares. If any award would result in the issue of fractional shares, cash shall
be paid in lieu of the issue of such fractional shares.

11. Transferability. Awards under the Plan may not be sold, assigned, pledged, alienated or
otherwise transferred or encumbered except by will, the laws of descent and distribution or
pursuant to a domestic relations order entered by a court of competent jurisdiction.

12. Amendment; Termination. The Committee may amend or terminate the Plan at any time, provided
that (a) no such amendment or termination shall affect the terms of any award previously granted
under the Plan without the award recipient’s consent and (b) no amendment that changes the class of
individuals eligible to receive awards or, except as provided in Section 8, increases the total
numbers of shares that

19

 

may be issued under the Plan or under awards granted within the same fiscal year shall be effective
unless and until duly approved by the shareholders of the Company in accordance with applicable law
and securities exchange rules.

13. Successors and Assigns. The Plan shall be binding on all successors and permitted assigns of an
award recipient or eligible individual, including without limitation any such person’s executor,
personal representative, estate, trustee, receiver or trustee in bankruptcy or creditor
representative.

14. No Right to Continued Service. Neither the Plan nor any award under the Plan shall be construed
to grant any individual any right to continued service with the Company in any capacity.

15. Governing Law. The validity, interpretation and effect of the Plan, any instrument or document
created in connection with the Plan and any actions taken with respect or relating to the Plan
shall be determined in accordance with the laws of the State of Georgia, without the application of
choice of law principles, and applicable U.S. federal law.

     Executed on behalf of the Company effective as of October 1, 2004 on this ___day of
___, 2004.

	 	 	 	 	 
	 	 	DELTA APPAREL, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	Martha M. Watson, Vice President

20<PAGE>

                                                                     EXHIBIT 4.1

            UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

            TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

            THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS SECURITY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY
NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

            THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY
THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (I) TO THE COMPANY, (II) WITHIN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (III) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE
501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS SECURITY (THE
FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN
RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF SECURITIES LESS THAN $250,000, AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES

<PAGE>

ACT, (V) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH
(VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.

            THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT ("OID") FOR
PURPOSES OF SECTIONS 1271 ET SEQ. OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED. THE ISSUE DATE OF THIS NOTE IS SEPTEMBER 9, 2004. FOR INFORMATION
REGARDING THE ISSUE PRICE, AMOUNT OF OID PER $1,000 OF PRINCIPAL AMOUNT, THE
COMPARABLE YIELD TO MATURITY AND PROJECTED PAYMENT SCHEDULE. FOR PURPOSES OF THE
OID RULES, PLEASE CONTACT THE ISSUER AT SECURUS TECHNOLOGIES, INC., C/O H.I.G.
CAPITAL, LLC, 1001 BRICKELL BAY DRIVE, 27TH FLOOR, MIAMI, FLORIDA 33131,
TELEPHONE: (305) 379-2322, ATTENTION: ALEXANDER MOSKOVITZ.

<PAGE>

                           SECURUS TECHNOLOGIES, INC.
                 Second-Priority Senior Secured Notes Due 2011

                                                       CUSIP No. 81517NAA3
                                                       ISIN No.US81517NAA37

No. 1                                                               $149,515,000

            Securus Technologies, Inc., a Delaware corporation, promises to pay
to CEDE & CO., or registered assigns, the principal sum of ONE HUNDRED FORTY
NINE MILLION, FIVE HUNDRED FIFTEEN THOUSAND DOLLARS on September 1, 2011.

            Interest Payment Dates: March 1 and September 1.

            Record Dates: February 15 and August 15.

            Additional provisions of this Security are set forth on the other
side of this Security.

Dated: September 9, 2004

                             SIGNATURE PAGES FOLLOW

<PAGE>

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated: September 9, 2004

                                          SECURUS TECHNOLOGIES, INC.,

                                             by /s/ Brian Schwartz
                                                --------------------------------
                                                Name: Brian Schwartz
                                                Title: Vice President

                                             by /s/ Lewis Schoenwetter
                                                --------------------------------
                                                Name: Lewis Schoenwetter
                                                Title: Vice President

<PAGE>

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

THE BANK OF NEW YORK TRUST
COMPANY, N.A.,

    as Trustee, certifies
       that this is one of
       the Securities referred
       to in the Indenture.

    by [ILLEGIBLE]
       -------------------------
       Authorized Signatory

<PAGE>

                11% Second-Priority Senior Secured Note Due 2011

1.    Interest

      Securus Technologies, Inc., a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the "Company"), promises to pay interest on the principal amount
of this Security at the rate per annum shown above; provided, however, that if a
Registration Default (as defined in the Registration Rights Agreement) occurs,
additional interest shall accrue on this Security at a rate of 0.50% per annum
(increasing by an additional 0.50% per annum after each consecutive 90-day
period that occurs after the date on which such Registration default occurs up
to a maximum additional interest rate of 2.00%) from and including the date on
which any such Registration Default shall occur to but excluding the date on
which all Registration Defaults have been cured. The Company shall pay interest
semiannually on March 1 and September 1 of each year, commencing March 1, 2005.
Interest on the Securities shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from September 9, 2004.
Interest shall be computed on the basis of a 360-day year of twelve 30-day
months. The Company shall pay interest on overdue principal at the rate borne by
this Security plus 1.0% per annum, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

2.    Method of Payment

      The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the February 15 or August 15 next preceding the interest payment
date even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium and interest)
shall be made by wire transfer of immediately available funds to the accounts
specified by the Depository. The Company shall make all payments in respect of a
certificated Security (including principal, premium and interest) by mailing a
check to the registered address of each Holder thereof; provided, however, that
payments on a certificated Security shall be made by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than 30
days immediately preceding the relevant due date for payment (or such other date
as the Trustee may accept in its discretion).

3.    Paving Agent and Registrar

      Initially, The Bank of New York Trust Company, N.A., a national banking
association (the "Trustee"), shall act as Paying Agent and Registrar. The
Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice. The

<PAGE>

Company or any of its domestically incorporated Wholly Owned Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4.    Indenture

      The Company issued the Securities under an Indenture dated as of September
9, 2004 ("Indenture"), among the Company, the Subsidiary Guarantors and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bbbb) (the "Act"). Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to
the Indenture and the Act for a statement of those terms.

      The Securities are general secured obligations of the Company. The Company
shall be entitled, subject to its compliance with Section 4.03 of the Indenture,
to issue Additional Securities pursuant to Section 2.13 of the Indenture. The
Initial Securities issued on the Issue Date, any Additional Securities and all
Exchange Securities or Private Exchange Securities issued in exchange therefor
shall be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants that limit the ability of the Company and its
subsidiaries to incur additional indebtedness; pay dividends or distributions
on, or redeem or repurchase capital stock; make investments; issue or sell
capital stock of subsidiaries; engage in transactions with affiliates; create
liens on assets; transfer or sell assets; guarantee indebtedness; restrict
dividends or other payments of subsidiaries; consolidate, merge or transfer all
or substantially all of its assets and the assets of its subsidiaries; and
engage in sale/leaseback transactions. These covenants are subject to important
exceptions and qualifications.

5.    Optional Redemption

      Except as set forth below, the Company shall not be entitled to redeem the
Securities.

      On and after September 1, 2008, the Company shall be entitled at its
option to redeem all or a portion of the Securities upon not less than 30 nor
more than 60 days' notice, at the redemption prices (expressed in percentages of
principal amount on the redemption date), plus accrued interest to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date), if
redeemed during the 12-month period commencing on September 1 of the years set
forth below:

<TABLE>
<CAPTION>
                   Redemption
Period               Price
------             ----------
<S>                <C>
2008                105.500%
2009                102.750%
2010                100.000%
</TABLE>

<PAGE>

      In addition, prior to September 1, 2007, the Company shall be entitled at
its option on one or more occasions to redeem Securities (which includes
Additional Securities, if any) in an aggregate principal amount not to exceed
35% of the aggregate principal amount of the Securities (which includes
Additional Securities, if any) originally issued at a redemption price
(expressed as a percentage of principal amount) of 111.000%, plus accrued and
unpaid interest to the redemption date, with the net cash proceeds from one or
more Equity Offerings; provided, however, that (1) at least 65% of such
aggregate principal amount of Securities (which includes Additional Securities,
if any) remains outstanding immediately after the occurrence of each such
redemption (other than Securities held, directly or indirectly, by the Company
or its Affiliates); and (2) each such redemption occurs within 90 days after the
date of the related Equity Offering.

      Prior to September 1, 2008, the Company shall be entitled at its option to
redeem all, but not less than all, of the Securities at a redemption price equal
to 100% of the principal amount of the Securities plus the Applicable Premium as
of, and accrued and unpaid interest to, the redemption date (subject to the
right of Holders on the relevant record date to receive interest due on the
relevant interest payment date). The Company shall cause notice of such
redemption to be mailed by first-class mail to each Holder's registered address,
not less than 30 nor more than 60 days prior to the redemption date.

6.    Notice of Redemption

      Notice of redemption shall be mailed at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000 principal
amount may be redeemed in part but only in whole multiples of $1,000. If money
sufficient to pay the redemption price of and accrued interest on all Securities
(or portions thereof) to be redeemed on the redemption date is deposited with
the Paying Agent on or before the redemption date and certain other conditions
are satisfied, on and after such date interest ceases to accrue on such
Securities (or such portions thereof) called for redemption.

7.    Put Provisions

      Upon a Change of Control, any Holder of Securities shall have the right to
cause the Company to purchase all or any part of the Securities of such Holder
at a repurchase price equal to 101% of the principal amount of the Securities to
be repurchased plus accrued interest to the date of repurchase (subject to the
right of holders of record on the relevant record date to receive interest due
on the related interest payment date) as provided in, and subject to the terms
of, the Indenture.

8.    Guaranty

      The payment by the Company of the principal of, and premium and interest
on, the Securities is fully and unconditionally guaranteed on a joint and
several senior basis by each of the Subsidiary Guarantors to the extent set
forth in the Indenture.

<PAGE>

9.    Security

            The Securities shall be secured by the Collateral on the terms and
subject to the conditions set forth in the Indenture and the Security Documents,
such security interest to be second in priority to security interests granted
for the benefit of holders of First-Priority Lien Obligations. The Trustee and
the Collateral Agent, as the case may be, hold the Collateral in trust for the
benefit of the Trustee and the Holders, in each case pursuant to the Security
Documents and the Intercreditor Agreement. Each Holder, by accepting this
Security, consents and agrees to the terms of the Security Documents (including
the provisions providing for the foreclosure and release of Collateral) and the
Intercreditor Agreement as the same may be in effect or may be amended from time
to time in accordance with their terms and the Indenture and authorizes and
directs the Trustee and the Collateral Agent to enter into the Security
Documents and the Intercreditor Agreement, and to perform their respective
obligations and exercise their respective rights thereunder in accordance
therewith.

10.   Denominations; Transfer; Exchange

      The Securities are in registered form without coupons in denominations of
$1,000 principal amount and whole multiples of $1,000. A Holder may transfer or
exchange Securities in accordance with the Indenture, The Registrar may require
a Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture. The Registrar need not register the transfer of or exchange any
Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities for a period of 15 days before a selection of Securities to be
redeemed or 15 days before an interest payment date.

11.   Persons Deemed Owners

      The registered Holder of this Security may be treated as the owner of it
for all purposes.

12.   Unclaimed Money

      If money for the payment of principal or interest remains unclaimed for
two years, the Trustee or Paying Agent shall pay the money back to the Company
at its request unless an abandoned property law designates another Person. After
any such payment, Holders entitled to the money must look only to the Company
and not to the Trustee for payment.

13.   Discharge and Defeasance

      Subject to certain conditions, the Company at any time shall be entitled
to terminate some or all of its obligations under the Securities and the
Indenture if the Company deposits with the Trustee money or U.S. Government
Obligations for the payment of principal and interest on the Securities to
redemption or maturity, as the case may be.

<PAGE>

14.   Amendment, Waiver

      Subject to certain exceptions set forth in the Indenture, (a) the
Indenture and the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Securities
and (b) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount outstanding of
the Securities. Subject to certain exceptions set forth in the Indenture,
without the consent of any Securityholder, the Company, the Subsidiary
Guarantors and the Trustee shall be entitled to amend the Indenture or the
Securities to cure any ambiguity, omission, defect or inconsistency, or to
comply with Article 5 of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add
guarantees with respect to the Securities, including Subsidiary Guaranties, or
to provide further security for the Securities, or to add additional covenants
or surrender rights and powers conferred on the Company or the Subsidiary
Guarantors, or to comply with any requirement of the SEC in connection with
qualifying the Indenture under the Act, or to make any change that does not
adversely affect the rights of any Securityholder, or to make amendments to
provisions of the Indenture relating to the form, authentication, transfer and
legending of the Securities, or in the event that such amendment is expressly
permitted pursuant to Section 11.01(b) of the Indenture or pursuant to the
Security Documents.

15.   Defaults and Remedies

      Under the Indenture, Events of Default include (a) default for 30 days in
payment of interest on the Securities; (b) default in payment of principal on
the Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Company to
purchase Securities when required; (c) failure by the Company or any Subsidiary
Guarantor to comply with other agreements in the Indenture or the Securities, in
certain cases subject to notice and lapse of tune; (d) certain accelerations
(including failure to pay within any grace period after final maturity) of other
Indebtedness of the Company, a Subsidiary Guarantor or any Significant
Subsidiary if the amount accelerated (or so unpaid) exceeds $10.0 million; (e)
certain events of bankruptcy or insolvency with respect to the Company, the
Subsidiary Guarantors and the Significant Subsidiaries; (f) certain judgments or
decrees for the payment of money in excess of $10.0 million; (g) certain
defaults with respect to Subsidiary Guaranties; and (h) certain defaults with
respect to the Security Documents. If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may declare all the Securities to be due and payable immediately.
Certain events of bankruptcy or insolvency are Events of Default which shall
result in the Securities being due and payable immediately upon the occurrence
of such Events of Default.

      Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives indemnity or security satisfactory to it.
Subject to certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from
<PAGE>

Securityholders notice of any continuing Default (except a Default in payment of
principal or interest) if it determines that withholding notice is in the
interest of the Holders.

16.   Trustee Dealings with the Company

      Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17.   No Recourse Against Others

      A director, officer, employee or stockholder, as such, of the Company or
the Trustee shall not have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation. By accepting a Security,
each Securityholder waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Securities.

18.   Authentication

      This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

19.   Abbreviations

      Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

20.   CUSIP Numbers

      Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders. No representation is
made as to the accuracy of such numbers either as printed on the Securities or
as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

21. Holders' Compliance with Registration Rights Agreement.

      Each Holder of a Security, by acceptance hereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, including the
obligations of the Holders

<PAGE>

with respect to a registration and the indemnification of the Company to the
extent provided therein.

22.   Governing Law.

      THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

      The Company shall furnish to any Securityholder upon written request and
without charge to the Securityholder a copy of the Indenture which has in it the
text of this Security in larger type. Requests may be made to:

            Securus Technologies, Inc.
            c/o H.I.G. Capital, LLC
            1001 Brickell Bay Drive, 27th Floor
            Miami, Florida 33131
            Attention: Alexander Moskovitz

<PAGE>
________________________________________________________________________________

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

      (Print or type assignee's name, address and zip code)

      (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint        agent to transfer this Security on the books of
the Company. The agent may substitute another to act for him.

_______________________________________________________________________________

Date: _____________________ Your Signature: ___________________________________

_______________________________________________________________________________

Sign exactly as your name appears on the other side of this Security.

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act after the later of the date of original issuance
of such Securities and the last date, if any, on which such Securities were
owned by the Company or any Affiliate of the Company, the undersigned confirms
that such Securities are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

[ ]   to the Company; or

      1.    [ ]   pursuant to an effective registration statement under the
                  Securities Act of 1933; or

      2.    [ ]   inside the United States to a "qualified institutional
                  buyer" (as defined in Rule 144A under the Securities Act of
                  1933) that purchases for its own account or for the account of
                  a qualified institutional buyer to whom notice is given that
                  such transfer is being made in reliance on Rule 144A, in each
                  case pursuant to and in compliance with Rule 144A under the
                  Securities Act of 1933; or

      3.    [ ]   outside the United States in an offshore transaction within
                  the meaning of Regulation S under the Securities Act in
                  compliance with Rule 904 under the Securities Act of 1933; or

<PAGE>

      4.    [ ]   pursuant to the exemption from registration provided by
                  Rule 144 under the Securities Act of 1933; or

      5.    [ ]   to an institutional "accredited investor" (as defined in Rule
                  501 (a)(1), (2), (3) or (7) under the Securities Act of 1933)
                  that has furnished to the Trustee a signed letter containing
                  certain representations and agreements.

      Unless one of the boxes is checked, the Trustee shall refuse to register
      any of the Securities evidenced by this certificate in the name of any
      person other than the registered holder thereof; provided, however, that
      if box (4) is checked, the Trustee shall be entitled to require, prior to
      registering any such transfer of the Securities, such legal opinions,
      certifications and other information as the Company has reasonably
      requested to confirm that such transfer is being made pursuant to an
      exemption from, or in a transaction not subject to, the registration
      requirements of the Securities Act of 1933, such as the exemption provided
      by Rule 144 under such Act.

                                             _________________________________
                                             Signature

Signature Guarantee:

_________________________________________   __________________________________
Signature must be guaranteed                Signature

      Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

_______________________________________________________________________________

<PAGE>

      TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

      The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

Dated: _________________________     __________________________________________
                                     Notice: To be executed by
                                             an executive officer

<PAGE>

             SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

  The following increases or decreases in this Global Security have been made:

<TABLE>
<CAPTION>
            Amount of decrease in       Amount of increase        Principal amount of this   Signature of authorized
 Date of  Principal amount of this  in Principal amount of this  Global Security following    officer of Trustee or
Exchange      Global Security             Global Security        such decrease or increase)    Securities Custodian
<S>       <C>                       <C>                          <C>                         <C>
</TABLE>

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

            If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06, 4.10 or 4.19 of the Indenture, check the box: [ ]

            If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06, 4.10 or 4.19 of the Indenture, state the
amount in principal amount: $_________________

Dated:________________________    Your Signature:_______________________________
                                                        (Sign exactly as your
                                                        name appears on the
                                                        other side of this
                                                        Security.)

Signature Guarantee: _________________________________________________________
                                (Signature must be guaranteed)

      Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

<PAGE>

            UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

            TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

            UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE
OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER
(AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE
WITH RULE 144A THEREUNDER.

            THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY
U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE
SECURITIES ACT.

            EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS
TEMPORARY REGULATION S GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN
THE PERMANENT REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN
INTEREST IN THE SECURITIES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND
CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE "40-DAY
DISTRIBUTION COMPLIANCE PERIOD" (WITHIN THE MEANING OF RULE 903(b)(2) OF
REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON

<PAGE>

CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH
BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO
PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION
UNDER THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD,
BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY
MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE COMPANY, (II) OUTSIDE THE
UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. HOLDERS OF
INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN
APPLICABLE.

            AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD
BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE
EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE
OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH RULE
144A AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS
TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE)
TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO
A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS
OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

            AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD,
BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE
EXCHANGED FOR INTERESTS IN AN IAI GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE
OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH AN
EXEMPTION UNDER THE SECURITIES ACT AND (2) THE TRANSFEROR OF THE REGULATION S
GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM
ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL
SECURITY IS BEING TRANSFERRED (A) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF RULE 501(A)(1),(2),(3) OR (7) UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING

<PAGE>

TO THE TRANSFER OF THIS SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
SECURITIES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER JURISDICTIONS.

            BENEFICIAL INTERESTS IN A RULE 144A GLOBAL SECURITY OR AN IAI GLOBAL
SECURITY MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN
INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR AFTER THE
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR
FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO
THIS CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE
WITH RULE 903 OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE).

            THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT ("OID") FOR
PURPOSES OF SECTIONS 1271 ET SEQ. OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED. THE ISSUE DATE OF THIS NOTE IS SEPTEMBER 9, 2004. FOR INFORMATION
REGARDING THE ISSUE PRICE, AMOUNT OF OID PER $1,000 OF PRINCIPAL AMOUNT, THE
COMPARABLE YIELD TO MATURITY AND PROJECTED PAYMENT SCHEDULE. FOR PURPOSES OF THE
OID RULES, PLEASE CONTACT THE ISSUER AT SECURUS TECHNOLOGIES, INC., C/O H.I.G.
CAPITAL, LLC, 1001 BRICKELL BAY DRIVE, 27TH FLOOR, MIAMI, FLORIDA 33131,
TELEPHONE: (305) 379-2322, ATTENTION: ALEXANDER MOSKOVITZ.

<PAGE>

                           SECURUS TECHNOLOGIES, INC.
                 Second-Priority Senior Secured Notes Due 2011

                                                           CUSIP No. U81483AA4
                                                           ISIN No. USU81483AA49

No. 2                                                                 $4,485,000

            Securus Technologies, Inc., a Delaware corporation, promises to pay
to CEDE & CO., or registered assigns, the principal sum of FOUR MILLION, FOUR
HUNDRED EIGHTY FIVE THOUSAND DOLLARS on September 1, 2011.

            Interest Payment Dates: March 1 and September 1.

            Record Dates: February 15 and August 15.

            Additional provisions of this Security are set forth on the other
side of this Security.

Dated: September 9, 2004

                             SIGNATURE PAGES FOLLOW

<PAGE>

            IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed.

Dated: September 9, 2004

                                          SECURUS TECHNOLOGIES, INC.,

                                          by: /s/ Brian Schwartz
                                              ----------------------------
                                              Name: Brian Schwartz
                                              Title: Vice President

                                          by: /s/ Lewis Schoenwetter
                                              ----------------------------
                                              Name: Lewis Schoenwetter
                                              Title: Vice President
<PAGE>

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

THE BANK OF NEW YORK TRUST
COMPANY, N.A.,

      as Trustee, certifies
            that this is one of
            the Securities referred
            to in the Indenture.

      by [ILLEGIBLE]
         -----------------------------
         Authorized Signatory

<PAGE>

                11% Second-Priority Senior Secured Note Due 2011

1.    Interest

      Securus Technologies, Inc., a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the "Company"), promises to pay interest on the principal amount
of this Security at the rate per annum shown above; provided, however, that if a
Registration Default (as defined in the Registration Rights Agreement) occurs,
additional interest shall accrue on this Security at a rate of 0.50% per annum
(increasing by an additional 0.50% per annum after each consecutive 90-day
period that occurs after the date on which such Registration default occurs up
to a maximum additional interest rate of 2.00%) from and including the date on
which any such Registration Default shall occur to but excluding the date on
which all Registration Defaults have been cured. The Company shall pay interest
semiannually on March 1 and September 1 of each year, commencing March 1, 2005.
Interest on the Securities shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from September 9,2004.
Interest shall be computed on the basis of a 360-day year of twelve 30-day
months. The Company shall pay interest on overdue principal at the rate borne by
this Security plus 1.0% per annum, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

2.    Method of Payment

      The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the February 15 or August 15 next preceding the interest payment
date even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium and interest)
shall be made by wire transfer of immediately available funds to the accounts
specified by the Depository. The Company shall make all payments in respect of a
certificated Security (including principal, premium and interest) by mailing a
check to the registered address of each Holder thereof; provided, however, that
payments on a certificated Security shall be made by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than 30
days immediately preceding the relevant due date for payment (or such other date
as the Trustee may accept in its discretion).

3     Paying Agent and Registrar

      Initially, The Bank of New York Trust Company, N. A., a national banking
association (the "Trustee"), shall act as Paying Agent and Registrar. The
Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice. The

<PAGE>

Company or any of its domestically incorporated Wholly Owned Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4.    Indenture

      The Company issued the Securities under an Indenture dated as of September
9, 2004 ("Indenture"), among the Company, the Subsidiary Guarantors and the
Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bbbb) (the "Act"). Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to
the Indenture and the Act for a statement of those terms.

      The Securities are general secured obligations of the Company. The Company
shall be entitled, subject to its compliance with Section 4.03 of the Indenture,
to issue Additional Securities pursuant to Section 2.13 of the Indenture. The
Initial Securities issued on the Issue Date, any Additional Securities and all
Exchange Securities or Private Exchange Securities issued in exchange therefor
shall be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants that limit the ability of the Company and its
subsidiaries to incur additional indebtedness; pay dividends or distributions
on, or redeem or repurchase capital stock; make investments; issue or sell
capital stock of subsidiaries; engage in transactions with affiliates; create
liens on assets; transfer or sell assets; guarantee indebtedness; restrict
dividends or other payments of subsidiaries; consolidate, merge or transfer all
or substantially all of its assets and the assets of its subsidiaries; and
engage in sale/leaseback transactions. These covenants are subject to important
exceptions and qualifications.

5.    Optional Redemption

      Except as set forth below, the Company shall not be entitled to redeem the
Securities.

On and after September 1, 2008, the Company shall be entitled at its option to
redeem all or a portion of the Securities upon not less than 30 nor more than 60
days' notice, at the redemption prices (expressed in percentages of principal
amount on the redemption date), plus accrued interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during
the 12-month period commencing on September 1 of the years set forth below:

<TABLE>
<CAPTION>
                            Redemption
Period                        Price
------                      ----------
<S>                         <C>
2008                         105.500%
2009                         102.750%
2010                         100.000%
</TABLE>

<PAGE>

      In addition, prior to September 1, 2007, the Company shall be entitled at
its option on one or more occasions to redeem Securities (which includes
Additional Securities, if any) in an aggregate principal amount not to exceed
35% of the aggregate principal amount of the Securities (which includes
Additional Securities, if any) originally issued at a redemption price
(expressed as a percentage of principal amount) of 111.000%, plus accrued and
unpaid interest to the redemption date, with the net cash proceeds from one or
more Equity Offerings; provided, however, that (1) at least 65% of such
aggregate principal amount of Securities (which includes Additional Securities,
if any) remains outstanding immediately after the occurrence of each such
redemption (other than Securities held, directly or indirectly, by the Company
or its Affiliates); and (2) each such redemption occurs within 90 days after the
date of the related Equity Offering.

      Prior to September 1, 2008, the Company shall be entitled at its option to
redeem all, but not less than all, of the Securities at a redemption price equal
to 100% of the principal amount of the Securities plus the Applicable Premium as
of, and accrued and unpaid interest to, the redemption date (subject to the
right of Holders on the relevant record date to receive interest due on the
relevant interest payment date). The Company shall cause notice of such
redemption to be mailed by first-class mail to each Holder's registered address,
not less than 30 nor more than 60 days prior to the redemption date.

6.    Notice of Redemption

      Notice of redemption shall be mailed at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000 principal
amount may be redeemed in part but only in whole multiples of $1,000. If money
sufficient to pay the redemption price of and accrued interest on all Securities
(or portions thereof) to be redeemed on the redemption date is deposited with
the Paying Agent on or before the redemption date and certain other conditions
are satisfied, on and after such date interest ceases to accrue on such
Securities (or such portions thereof) called for redemption.

7.    Put Provisions

      Upon a Change of Control, any Holder of Securities shall have the right to
cause the Company to purchase all or any part of the Securities of such Holder
at a repurchase price equal to 101% of the principal amount of the Securities to
be repurchased plus accrued interest to the date of repurchase (subject to the
right of holders of record on the relevant record date to receive interest due
on the related interest payment date) as provided in, and subject to the terms
of, the Indenture.

8.    Guaranty

      The payment by the Company of the principal of, and premium and interest
on, the Securities is fully and unconditionally guaranteed on a joint and
several senior basis by each of the Subsidiary Guarantors to the extent set
forth in the Indenture.

<PAGE>

9.    Security

      The Securities shall be secured by the Collateral on the terms and subject
to the conditions set forth in the Indenture and the Security Documents, such
security interest to be second in priority to security interests granted for the
benefit of holders of First-Priority Lien Obligations. The Trustee and the
Collateral Agent, as the case may be, hold the Collateral in trust for the
benefit of the Trustee and the Holders, in each case pursuant to the Security
Documents and the Intercreditor Agreement. Each Holder, by accepting this
Security, consents and agrees to the terms of the Security Documents (including
the provisions providing for the foreclosure and release of Collateral) and the
Intercreditor Agreement as the same may be in effect or may be amended from time
to time in accordance with their terms and the Indenture and authorizes and
directs the Trustee and the Collateral Agent to enter into the Security
Documents and the Intercreditor Agreement, and to perform their respective
obligations and exercise their respective rights thereunder in accordance
therewith.

10.   Denominations; Transfer; Exchange

      The Securities are in registered form without coupons in denominations of
$1,000 principal amount and whole multiples of $1,000. A Holder may transfer or
exchange Securities in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture. The Registrar need not register the transfer of or exchange any
Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities for a period of 15 days before a selection of Securities to be
redeemed or 15 days before an interest payment date.

11.   Persons Deemed Owners

      The registered Holder of this Security may be treated as the owner of it
for all purposes.

12.   Unclaimed Money

      If money for the payment of principal or interest remains unclaimed for
two years, the Trustee or Paying Agent shall pay the money back to the Company
at its request unless an abandoned property law designates another Person. After
any such payment, Holders entitled to the money must look only to the Company
and not to the Trustee for payment.

13.   Discharge and Defeasance

      Subject to certain conditions, the Company at any time shall be entitled
to terminate some or all of its obligations under the Securities and the
Indenture if the Company deposits with the Trustee money or U.S. Government
Obligations for the payment of principal and interest on the Securities to
redemption or maturity, as the case may be.

<PAGE>

14.   Amendment, Waiver

      Subject to certain exceptions set forth in the Indenture, (a) the
Indenture and the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Securities
and (b) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount outstanding of
the Securities. Subject to certain exceptions set forth in the Indenture,
without the consent of any Securityholder, the Company, the Subsidiary
Guarantors and the Trustee shall be entitled to amend the Indenture or the
Securities to cure any ambiguity, omission, defect or inconsistency, or to
comply with Article 5 of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add
guarantees with respect to the Securities, including Subsidiary Guaranties, or
to provide further security for the Securities, or to add additional covenants
or surrender rights and powers conferred on the Company or the Subsidiary
Guarantors, or to comply with any requirement of the SEC in connection with
qualifying the Indenture under the Act, or to make any change that does not
adversely affect the rights of any Securityholder, or to make amendments to
provisions of the Indenture relating to the form, authentication, transfer and
legending of the Securities, or in the event that such amendment is expressly
permitted pursuant to Section 11.01(b) of the Indenture or pursuant to the
Security Documents.

15.   Defaults and Remedies

      Under the Indenture, Events of Default include (a) default for 30 days in
payment of interest on the Securities; (b) default in payment of principal on
the Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Company to
purchase Securities when required; (c) failure by the Company or any Subsidiary
Guarantor to comply with other agreements in the Indenture or the Securities, in
certain cases subject to notice and lapse of time; (d) certain accelerations
(including failure to pay within any grace period after final maturity) of other
Indebtedness of the Company, a Subsidiary Guarantor or any Significant
Subsidiary if the amount accelerated (or so unpaid) exceeds $10.0 million; (e)
certain events of bankruptcy or insolvency with respect to the Company, the
Subsidiary Guarantors and the Significant Subsidiaries; (f) certain judgments or
decrees for the payment of money in excess of $ 10.0 million; (g) certain
defaults with respect to Subsidiary Guaranties; and (h) certain defaults with
respect to the Security Documents. If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may declare all the Securities to be due and payable immediately.
Certain events of bankruptcy or insolvency are Events of Default which shall
result in the Securities being due and payable immediately upon the occurrence
of such Events of Default.

      Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives indemnity or security satisfactory to it.
Subject to certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from

<PAGE>

Securityholders notice of any continuing Default (except a Default in payment of
principal or interest) if it determines that withholding notice is in the
interest of the Holders.

16.   Trustee Dealings with the Company

      Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17.   No Recourse Against Others

      A director, officer, employee or stockholder, as such, of the Company or
the Trustee shall not have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation. By accepting a Security,
each Securityholder waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Securities.

18.   Authentication

      This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

19.   Abbreviations

      Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

20.   CUSIP Numbers

      Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders. No representation is
made as to the accuracy of such numbers either as printed on the Securities or
as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

21.   Holders' Compliance with Registration Rights Agreement.

      Each Holder of a Security, by acceptance hereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, including the
obligations of the Holders

<PAGE>

with respect to a registration and the indemnification of the Company to the
extent provided therein.

22.   Governing Law.

      THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

      The Company shall furnish to any Securityholder upon written request and
without charge to the Securityholder a copy of the Indenture which has in it the
text of this Security in larger type. Requests may be made to:

            Securus Technologies, Inc.
            c/o H.I.G. Capital, LLC
            1001 Brickell Bay Drive, 27th Floor
            Miami, Florida 33131
            Attention: Alexander Moskovitz
<PAGE>

________________________________________________________________________________

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

      (Print or type assignee's name, address and zip code)

      (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint        agent to transfer this Security on the books of
the Company. The agent may substitute another to act for him.

________________________________________________________________________________

Date: ___________________ Your Signature: ______________________________________

________________________________________________________________________________

Sign exactly as your name appears on the other side of this Security.

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act after the later of the date of original issuance
of such Securities and the last date, if any, on which such Securities were
owned by the Company or any Affiliate of the Company, the undersigned confirms
that such Securities are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

[ ]     to the Company; or

      1. [ ] pursuant to an effective registration statement under the
             Securities Act of 1933; or

      2. [ ] inside the United States to a "qualified institutional buyer" (as
             defined in Rule 144A under the Securities Act of 1933) that
             purchases for its own account or for the account of a qualified
             institutional buyer to whom notice is given that such transfer is
             being made in reliance on Rule 144A, in each case pursuant to and
             in compliance with Rule 144A under the Securities Act of 1933; or

      3. [ ] outside the United States in an offshore transaction within the
             meaning of Regulation S under the Securities Act in compliance with
             Rule 904 under the Securities Act of 1933; or

<PAGE>

      4. [ ] pursuant to the exemption from registration provided by Rule 144
             under the Securities Act of 1933; or

      5. [ ] to an institutional" accredited investor" (as defined in Rule
             501(a)(l), (2), (3) or (7) under the Securities Act of 1933) that
             has furnished to the Trustee a signed letter containing certain
             representations and agreements.

      Unless one of the boxes is checked, the Trustee shall refuse to register
      any of the Securities evidenced by this certificate in the name of any
      person other than the registered holder thereof; provided, however, that
      if box (4) is checked, the Trustee shall be entitled to require, prior to
      registering any such transfer of the Securities, such legal opinions,
      certifications and other information as the Company has reasonably
      requested to confirm that such transfer is being made pursuant to an
      exemption from, or in a transaction not subject to, the registration
      requirements of the Securities Act of 1933, such as the exemption provided
      by Rule 144 under such Act.

                                              ___________________________
                                              Signature

Signature Guarantee;

_____________________________________         ___________________________
Signature must be guaranteed                  Signature

      Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

________________________________________________________________________________
<PAGE>

      TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

      The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

Dated:__________________________     ________________________________________
                                     Notice: To be executed by
                                             an executive officer

<PAGE>

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

      The following increases or decreases in this Global Security have been
made:

<TABLE>
<CAPTION>
            Amount of decrease in     Amount of increase in    Principal amount of this   Signature of authorized
 Date of  Principal amount of this  Principal amount of this   Global Security following   officer of Trustee or
Exchange       Global Security           Global Security      such decrease or increase)    Securities Custodian
<S>       <C>                       <C>                       <C>                         <C>
</TABLE>

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

            If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06, 4.10 or 4.19 of the Indenture, check the box: [ ]

            If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06, 4.10 or 4.19 of the Indenture, state the
amount in principal amount: $_________________

Dated:__________________    Your Signature:_____________________________________
                                           (Sign exactly as your name appears
                                           on the other side of this Security.)

Signature Guarantee:______________________________________________________
                                           (Signature must be guaranteed)

      Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

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