Document:

Exhibit

Exhibit 10.12
Execution Version

SECOND AMENDMENT TO CREDIT AGREEMENT
This Second Amendment to Credit Agreement (this “Amendment”) dated as of December 7, 2015, is by and among ALARM.COM INCORPORATED, a Delaware corporation (“Alarm”), ALARM.COM HOLDINGS, INC., a Delaware corporation (“Holdings”, and together with Alarm, individually and collectively, jointly and severally, the “Borrower”), the several banks and other financial institutions or entities party hereto, including SILICON VALLEY BANK (“SVB”) (each a “Lender” and, collectively, the “Lenders”), SVB, as the Issuing Lender and the Swingline Lender, and SVB, as administrative agent and collateral agent for the Lenders (in such capacity, the “Administrative Agent”).
W I T N E S S E T H:
WHEREAS, the Borrower, the Lenders, the Administrative Agent, the Issuing Lender and the Swingline Lender are party to that certain Credit Agreement dated as of May 8, 2014, as amended by a First Amendment to Credit Agreement dated February 23, 2015 (as amended, modified, supplemented or restated and in effect from time to time, the “Credit Agreement”); and
WHEREAS, the Borrower has requested that the Required Lenders and the Administrative Agent agree to modify and amend certain terms and conditions of the Credit Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1.Capitalized Terms.  All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Credit Agreement.
2.    Amendment to the definition of “Applicable Margin” in Section 1.1 of the Credit Agreement.  The definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended and restated in full to read as follows:
“Applicable Margin”:  the rate per annum set forth under the relevant column heading below:
	
			
	Consolidated Leverage Ratio
	Eurodollar 
Loans/Letter of Credit Fees
	ABR Loans

	≥ 2.00:1.00
	2.50%
	1.50%

	≥ 1.00:1.00 but < 2.00:1.00
	2.25%
	1.25%

	< 1.00:1.00
	2.00%
	1.00%

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Notwithstanding the foregoing, if the Borrower fails to deliver the financial statements required by Section 6.1 and the related Compliance Certificate required by Section 6.2(b), by the respective date required thereunder after the end of any related fiscal quarter of Holdings, the Applicable Margin shall be the rates corresponding to the Consolidated Leverage Ratio of ≥2.00:1.00 in the foregoing table until such financial statements and Compliance Certificate are delivered, and (b) no reduction to the Applicable Margin shall become effective at any time when an Event of Default has occurred and is continuing.
If, as a result of any restatement of or other adjustment to the financial statements of the Loan Parties or for any other reason, the Administrative Agent determines that (x) the Consolidated Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (y) a proper calculation of the Consolidated Leverage Ratio would have resulted in different pricing for any period, then (i) if the proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall automatically and retroactively be obligated to pay to the Administrative Agent, for the benefit of the applicable Lenders, promptly on demand by the Administrative Agent, an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period; and (ii) if the proper calculation of the Consolidated Leverage Ratio would have resulted in lower pricing for such period, neither the Administrative Agent nor any Lender shall have any obligation to repay any interest or fees to the Borrower. ”
3.    Amendment to the definition of “Change of Control” in Section 1.1 of the Credit Agreement.  The definition of “Change of Control” in Section 1.1 of the Credit Agreement is hereby amended and restated in full to read as follows:
“Change of Control”:  (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of 35% or more of the voting Capital Stock of Holdings; (b) [reserved]; or (c) at any time, Holdings shall cease to own and control, of record and beneficially, directly or indirectly, 100% of each class of outstanding Capital Stock of Alarm and each other Loan Party free and clear of all Liens (except Liens created by the Security Documents).  A public offering of Capital Stock of the Borrower pursuant to a registration statement filed with the SEC or any successor or similar authority shall not constitute a “Change of Control”.”
4.    Amendment to Section 6.1 of the Credit Agreement.  Section 6.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“6.1    Financial Statements.  Furnish to the Administrative Agent, with sufficient copies for distribution to each Lender:

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(a)    as soon as available, but in any event within 90 days after the end of each fiscal year of the Borrower, a copy of the audited consolidated balance sheet of Holdings and its consolidated Subsidiaries as at the end of such fiscal year and the related audited consolidated statements of income and of cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous year, together with an unqualified opinion of certified public accountants of nationally recognized standing and reasonably acceptable to the Administrative Agent;
(b)    [Reserved]; and
(c)    as soon as available, but in any event not later than 45 days after the end of each of the first three (3) fiscal quarters occurring during each fiscal year of the Borrower, the unaudited consolidated balance sheet of Holdings and its consolidated Subsidiaries as at the end of such quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the previous year, certified by a Responsible Officer of the Borrower as being fairly stated in all material respects (subject to normal year-end audit adjustments). 
All such financial statements shall be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied (except as approved by such accountants or officer, as the case may be, and disclosed in reasonable detail therein) consistently throughout the periods reflected therein and with prior periods.”
5.    Amendment to Section 7.8(m)(vii) of the Credit Agreement.  Section 7.8(m)(vii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“(vii) except with respect to an acquisition in which the acquisition consideration is less than $10,000,000, delivery by the Borrower to the Administrative Agent of (i) a description of the proposed acquisition, and (ii) to the extent available, a due diligence package, in each case, prior to closing of the acquisition;”
6.    Conditions Precedent to Effectiveness.  This Amendment shall not be effective until each of the following conditions precedent have been fulfilled to the satisfaction of the Administrative Agent:
(a)    This Amendment shall have been duly executed and delivered by the respective parties hereto.  The Administrative Agent shall have received a fully executed copy hereof.

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(b)    All necessary consents and approvals to this Amendment shall have been obtained by the Loan Parties.
(c)    After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.
(d)    The Administrative Agent shall have received the fees costs and expenses required to be paid pursuant to Section 8 of this Amendment (including the reasonable and documented fees and disbursements of legal counsel required to be paid thereunder).
7.    Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders as follows:
(a)    This Amendment is, and each other Loan Document to which it is or will be a party, when executed and delivered by each Loan Party that is a party thereto, will be the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally and equitable principals (whether enforcement is sought by proceedings in equity or at law).
(b)    Its representations and warranties set forth in this Amendment, the Credit Agreement, as amended by this Amendment and after giving effect hereto, and the other Loan Documents to which it is a party are (i) to the extent qualified by materiality, true and correct in all respects and (ii) to the extent not qualified by materiality, true and correct in all material respects, in each case, on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date).
(c)    The execution and delivery by each Loan Party of this Amendment, the performance by such Loan Party of its obligations hereunder and the performance of the Borrower under the Credit Agreement, as amended by this Amendment, (i) have been duly authorized by all necessary organizational action on the part of such Loan Party and (ii) will not (A) violate any provisions of the certificate of incorporation or formation or organization or by-laws or limited liability company agreement or limited partnership agreement of such Loan Party or (B) constitute a violation by such Loan Party of any applicable material Requirement of Law.
Each Loan Party acknowledges that the Administrative Agent and the Lenders have acted in good faith and have conducted in a commercially reasonable manner their relationships with each Loan Party in connection with this Amendment and in connection with the other Loan Documents.  Each Loan Party understands and acknowledges that the Administrative Agent and the Lenders are entering into this Amendment in reliance upon, and in partial consideration for, the 

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above representations, warranties, and acknowledgements, and agrees that such reliance is reasonable and appropriate.
8.    Payment of Costs and Expenses.  The Borrower shall pay to the Administrative Agent all reasonable costs and out-of-pocket expenses of every kind in connection with the preparation, negotiation, execution and delivery of this Amendment and any documents and instruments relating hereto or thereto (which costs include, without limitation, the reasonable and documented fees and expenses of any attorneys retained by the Administrative Agent).
9.    Choice of Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  Each party hereto submits to the exclusive jurisdiction of the State and Federal courts in the Southern District of the State of New York; provided, however, that nothing in the Credit Agreement as amended by this Amendment shall be deemed to operate to preclude the Administrative Agent or any Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of such Agent or such Lender.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AMENDMENT, THE OTHER LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AMENDMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
10.    Counterpart Execution.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment.  Delivery of an executed counterpart of this Amendment by telefacsimile or by e-mail transmission of an Adobe file format document (also known as a PDF file) shall be equally as effective as delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile or by e-mail transmission of an Adobe file format document (also known as a PDF file) also shall deliver an 

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original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.
11.    Effect on Loan Documents.
(a)    The amendments set forth herein shall be limited precisely as written and shall not be deemed (a) to be a forbearance, waiver, or modification of any other term or condition of the Credit Agreement or of any Loan Documents or to prejudice any right or remedy which the Administrative Agent may now have or may have in the future under or in connection with the Loan Documents; (b) to be a consent to any future consent or modification, forbearance, or waiver to the Credit Agreement or any other Loan Document, or to any waiver of any of the provisions thereof; or (c) to limit or impair the Administrative Agent’s right to demand strict performance of all terms and covenants as of any date.  Each Loan Party hereby ratifies and reaffirms its obligations under the Credit Agreement and the other Loan Documents to which it is a party and agrees that none of the amendments or modifications to the Credit Agreement set forth in this Amendment shall impair such Loan Party’s obligations under the Loan Documents or the Administrative Agent’s rights under the Loan Documents.  Each Loan Party hereby further ratifies and reaffirms the validity and enforceability of all of the Liens heretofore granted, pursuant to and in connection with the Guarantee and Collateral Agreement or any other Loan Document to the Administrative Agent on behalf and for the benefit of the Secured Parties, as collateral security for the obligations under the Loan Documents, in accordance with their respective terms, and acknowledges that all of such Liens, and all collateral heretofore pledged as security for such obligations, continues to be and remain collateral for such obligations from and after the date hereof.  Each Loan Party acknowledges and agrees that the Credit Agreement and each other Loan Document is still in full force and effect and acknowledges as of the date hereof that such Loan Party has no defenses to enforcement of the Loan Documents.  Each Loan Party waives any and all defenses to enforcement of the Credit Agreement as amended hereby and each other Loan Documents that might otherwise be available as a result of this Amendment of the Credit Agreement.  To the extent any terms or provisions of this Amendment conflict with those of the Credit Agreement or other Loan Documents, the terms and provisions of this Amendment shall control.
(b)    To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.
(c)    This Amendment is a Loan Document.
12.    Entire Agreement.  This Amendment constitutes the entire agreement between the Loan Parties and the Lenders pertaining to the subject matter contained herein and supersedes all prior agreements, understandings, offers and negotiations, oral or written, with respect hereto and 

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no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment.  All of the terms and provisions of this Amendment are hereby incorporated by reference into the Credit Agreement, as applicable, as if such terms and provisions were set forth in full therein, as applicable.  All references in the Credit Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import shall mean the Credit Agreement as amended hereby.
13.    Severability.  The provisions of this Amendment are severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this Amendment in any jurisdiction.
[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.
BORROWER:
ALARM.COM INCORPORATED
By:  /s/ Jennifer A. Moyer    
Name:  Jennifer A. Moyer    
Title:  CFO    
ALARM.COM HOLDINGS, INC.
By:  /s/ Jennifer A. Moyer    
Name:  Jennifer A. Moyer    
Title:  CFO    

ADMINISTRATIVE AGENT: 
SILICON VALLEY BANK, 
as the Administrative Agent
By:  /s/ Will Deevy    
Name:  Will Deevy    
Title:  Vice President    

LENDERS:
SILICON VALLEY BANK, 
as Issuing Lender, Swingline Lender and as a Lender
By:  /s/ Will Deevy    
Name:  Will Deevy    
Title:  Vice President    

BANK OF AMERICA, N.A., 
as a Lender
By:  /s/ Mary K. Giermek    
Name:  Mary K. Giermek    
Title:  Senior Vice President    

7Exhibit

    Exhibit 10.14

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

THIRD AMENDMENT TO
THE ALARM.COM DEALER PROGRAM AGREEMENT
 BETWEEN ALARM.COM INCORPORATED 
AND MONITRONICS INTERNATIONAL, INC.

THIS THIRD AMENDMENT (the “Amendment”) by and between Alarm.com Incorporated, a company with its principal place of business at 8150 Leesburg Pike, Suite 1400, Vienna, VA 22182 (“Alarm.com”), and Monitronics International, Inc., a Delaware company with its principal place of business at 1990 Wittington Place, Dallas, TX 75234 (“Monitronics”), hereby amends the October 22, 2007 Alarm.com Agreement (“Agreement”), as amended, by and between Monitronics and Alarm.com.  In the event of a conflict between any provisions of the Agreement, as amended, and this Amendment, the provisions of this Amendment shall prevail.  Capitalized terms used herein without definition have the meanings assigned to them in the Agreement.

WHEREAS, Alarm.com and Monitronics are parties to the Agreement, as amended by way of Amendment No. 1 dated January 15, 2008 and the Second Amendment dated February 25, 2013; 

WHEREAS, Alarm.com and Monitronics desire to amend and supplement certain provisions of the Agreement, as amended, on the terms and subject to the conditions set forth below.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, Alarm.com and Monitronics agree as follows:

1.AMENDMENTS RELATING TO THE ALARM.COM SERVICES

1.1    Amendment Effective Date.   All price adjustments reflected in this Amendment shall be effective for new accounts created on or after the first day of the month in which this agreement has been signed by both parties (“Amendment Effective Date”).  For the avoidance of doubt, for all accounts owned by Monitronics and created prior to the Amendment Effective Date, Monitronics’ existing pricing shall remain in effect, except as allowed by Section 1.5 (Upgrade Conversion Pricing).  Further, the provisions in Section 1.4 shall apply to the [...***...] of [...***...].

1.2    High Volume Pricing Qualification.  Monitronics desires to obtain the advantage of certain lower prices for Alarm.com Services that can be offered by Alarm.com.  Alarm.com desires to see ongoing new account production by Monitronics and the Monitronics Dealers.  Alarm.com shall offer its high volume 

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

pricing set forth in Schedule A to Monitronics, as well as the other incentives contained in this Section 1, for all accounts owned by Monitronics and created by Monitronics or a third party on Monitronics’ behalf on or after the Amendment Effective Date ([...***...]) so long as either (a) the cumulative percentage of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date exceeds [...***...]% of the cumulative number of [...***...] accounts (regardless of whether [...***...] is the [...***...] or a [...***...]) activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date, or (b) the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date exceeds [...***...] ([...***...]) per month (the “Account Production Threshold”).  Bulk purchases of accounts are excluded from the high volume pricing qualification calculations set forth above.
1.3     Bulk Purchase Pricing.   If, following the Amendment Effective Date,  Monitronics purchases accounts in a bulk acquisition, the following pricing shall apply to said accounts:
(a)     If the account was created on or after the Amendment Effective Date, and in the [...***...] the [...***...] the [...***...] the [...***...], then the rate charged for said account shall be the rate set forth on Schedule A.
(b)      For all other bulk accounts not covered by paragraph 1.3 (a) above, if Monitronics or a third party on Monitronic’s behalf has created at least [...***...] accounts per month for the [...***...] ([...***...]) months, the rate charged shall be the rate set forth on Schedule B.4.
(c)    For all other bulk purchases not covered by paragraph 1.3(a) and 1.3(b) above, the rate on such accounts shall [...***...] be subject to [...***...] and shall [...***...] at the [...***...] to [...***...].
Notwithstanding the foregoing, in no event shall pricing on any bulk account be [...***...] the rate charged to the [...***...] on the respective bulk account. 
If the number of accounts acquired in a bulk transaction exceeds [...***...] ([...***...]), then Alarm.com shall [...***...] on those acquired accounts [...***...] over a period of [...***...] from the [...***...] of [...***...] according to the schedule below until the [...***...] (as set forth above in paragraphs 1.3 (a) and  (b).

	
							
	[...***...] After the [...***...]

	 
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]%
	[...***...]%
	[...***...]%
	[...***...]%
	[...***...]%
	[...***...]%

** Alarm.com Confidential **

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

.  1.4 [...***...] Account Production [...***...].  Monitronics shall be [...***...] an [...***...] in the [...***...] a [...***...] pursuant to the [...***...]. If in any given month Monitronics [...***...] this [...***...], then it shall receive a [...***...] pursuant to the following table.

	
		
	Monitronics [...***...] Level

	[...***...] Monthly Service Billing Amount ([...***...])
	Discount % [...***...]

	$0 - $[...***...]mm
	[...***...]%

	$[...***...]mm - $[...***...]mm
	[...***...]%

	$[...***...]mm - $[...***...]mm
	[...***...]%

	$[...***...]mm - $[...***...]mm
	[...***...]%

	+ Every [...***...] $[...***...] Above $[...***...]mm
	+ [...***...]%

This [...***...] will be capped at [...***...]%.   As of September 30, 2015, the Monitronics [...***...] was $[...***...] million, [...***...].  By way of example, if in July 2017 Monitronics has achieved the Account Production Threshold, and its August 1, 2017 [...***...] is $[...***...] million, then Monitronics will [...***...] for and receive a [...***...]% [...***...] of $[...***...] which will be applied as a [...***...].  The [...***...], however, shall be [...***...] a [...***...] of [...***...] after the Amendment Effective Date such that [...***...] of the [...***...] that Monitronics [...***...] pursuant to this Section 1.4 shall be [...***...] to Monitronics each [...***...] until the [...***...] is achieved in [...***...].  If for example Monitronics [...***...] a [...***...]% [...***...], then Alarm.com shall apply a [...***...]% [...***...] in [...***...] after the Amendment Effective Date, [...***...]% in [...***...], and so on until in [...***...] the [...***...]% [...***...] is applied. 

1.5 2g Upgrade Conversion Pricing.  Alarm.com recognizes that Monitronics owns Subscriber accounts whose equipment utilizes the 2g GSM network and that those accounts may need to be upgraded to newer generation technology in the coming years.  For any non-Alarm.com 2g account owned by Monitronics, Alarm.com shall [...***...] in this replacement initiative by [...***...] the [...***...] to Monitronics on that account if it is converted to the Alarm.com Services [...***...] a [...***...] to $[...***...] per month.  The $[...***...] per month charge shall be the monthly fee for each such converted account [...***...], and shall last for a period of [...***...] ([...***...]) billing cycles, at which point the rate charged by Alarm.com for that account shall be the rate set forth on Schedule A or Schedule B, whichever 

** Alarm.com Confidential **

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

is in effect at such time.  Monitronics shall provide to Alarm.com a list of accounts each month which are upgrades of non-Alarm.com 2G accounts which were immediately previously serviced by Monitronics on a third party 2G offering, and inclusive of the Alarm.com Customer ID for such accounts. Such list shall be officially approved by either the CFO or the Senior Vice President of Operations at Monitronics and provided to Alarm.com by the 15th business day of each month (for the previous month’s conversion activity) and Alarm.com shall enroll these customers in the [...***...] effective the billing cycle after notification.  By way of example, if Monitronics upgraded a non-Alarm.com 2g account to the Alarm.com Services [...***...] a [...***...] on February 6th, 2016, and Monitronics notified Alarm.com on March 10th, 2016 of such conversion, then Alarm.com would bill Monitronics $[...***...] per month on their next [...***...] invoices (or for so long as the account remained active) for that account beginning April 1st, 2016, and on [...***...] the rate charged for the account would be [...***...] according to [...***...] rates with Alarm.com as of [...***...] for any features the account is subscribed to.

Furthermore, upon the upgrade of any Alarm.com subscriber account from a 2g to 3g or LTE Alarm.com module, the monthly fee for such subscriber account will be changed to the [...***...] rate [...***...] at the time of upgrade (i.e., [...***...] as a [...***...], and shall [...***...] in [...***...]).  For the avoidance of doubt, the conversion of an AT&T 2g account to [...***...] shall not be eligible for new pricing and the existing rate for such account shall continue to apply.

1.6  Pricing Changes.  If during any month following the Amendment Effective Date,  the Account Production Threshold outlined in section 1.2, is not satisfied  the following price increases shall take effect:
		
	◦
	For each account created in the month immediately after the month in which the Account Production Threshold is not met, the pricing for such accounts shall be increased to the rate set forth in Schedule B (based on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date. At such time as the Account Production Threshold is again achieved, the rate on newly generated accounts shall be as set forth in Schedule A, however all accounts created during the months in which the Account Production Threshold was not met shall continue to be charged at the rate at which they were created pursuant to Schedule B.

		
	◦
	Further, in any month that the Account Threshold is not met and in which Monitronics creates less than [...***...] new accounts, (based 

** Alarm.com Confidential **

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date) the [...***...], if any, to which Monitronics is entitled pursuant to Section 1.4 shall be [...***...] for the respective month as follows:
		
	◦
	If Monitronics creates [...***...] than [...***...] accounts (based on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date) but [...***...], (based on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date) Monitronics shall receive [...***...]% of the [...***...];

		
	◦
	If Monitronics creates [...***...] or [...***...] accounts (based on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date) but [...***...], (based on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date) Monitronics shall receive [...***...]% of the [...***...];

		
	◦
	If Monitronics creates [...***...] or [...***...] accounts, (based on the [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date) Monitronics shall receive [...***...]% of the [...***...].

2.    GENERAL TERMS

2.1    Confidentiality.  For the avoidance of doubt, this Amendment forms part of the Agreement and therefore the provision of Section 8.6 of the Agreement shall apply to any disclosure of the existence or terms of this Amendment, including the pricing contemplated hereby.
2.2    Press Release.  The parties agree to issue a press release as mutually agreed by the parties. 
2.3    Effect of this Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of Alarm.com and Monitronics and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Agreement, as amended, all 

** Alarm.com Confidential **

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

of which are ratified or affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle either Alarm.com or Monitronics to consent to, or constitute a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Agreement, as amended, in similar or different circumstances.  After the Amendment Effective Date, any reference to the Agreement shall mean the Agreement as amended hereby.
2.4    Entire Agreement.  This Amendment, together with the Agreement, as amended, contains the entire agreement and understanding between the parties concerning its subject matter.  This Amendment supersedes all prior proposals, representations, agreements, and understandings, written or oral, concerning its subject matter.  No amendment to this Amendment shall be effective unless it is in writing and signed by the parties.
2.5    [...***...].   Except as otherwise set forth in Section 4.1 (a) (i.e., third party telecommunication charges) of the original Agreement dated October 22, 2007, or in the event of verifiable government or regulatory surcharges or taxes, [...***...] may [...***...] the [...***...] in this Amendment without the express written consent of [...***...]. 
2.6    Assent to this Amendment.  Monitronics signifies its assent to this Amendment by signing the Amendment in the indicated signature block and faxing or otherwise providing it to Alarm.com.  Alarm.com signifies its assent to this Amendment by signing this Amendment and returning it to Monitronics.  Alarm.com, at its option, may sign a counterpart of this Agreement other than the counterpart assented to by Monitronics.  The parties intend that facsimile signatures shall have the same binding effect as originals.  The individual signing on behalf of Monitronics represents and warrants that he or she is a representative of Monitronics duly authorized by to signify assent to this Agreement.
2.7    [...***...].  [...***...]. At the request of Monitronics, the CFO or CEO of Alarm.com shall certify in writing that Alarm.com is in compliance with its obligations hereunder. As of the date of this Amendment, Alarm.com acknowledges and agrees it is in compliance with this covenant.

2.7  Additional Changes.  Except as set forth in the Agreement, as amended, and this Amendment, Alarm.com shall not change the rates for any services to Monitronics without the mutual written consent of Monitronics.

*            *            *            *

** Alarm.com Confidential **

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IN WITNESS WHEREOF, this Third Amendment to the Alarm.com Dealer Program Agreement, as amended, has been executed and delivered by the duly authorized officers of the parties hereto on the date first above written.

	
		
	ALARM.COM INCORPORATED

	Monitronics International,  inc.

	

By:     /s/ Stephen Trundle      

	

By:     /s/ Bruce Mungiguerra   

	Name:   Stephen Trundle      

	Name:   Bruce Mungiguerra      

	Title:   CEO                      

	Title:   Senior Vice President Operations          

	Date:  12/31/2015   
	Date:  12/31/2015   

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Schedule A
 
[...***...] ALARM SIGNALING AND ENHANCED SERVICES PLAN PRICING 

	
		
	Service
	Price

	Wireless Signal Forwarding 1
	$[...***...]

	Home Center 2
	$[...***...]

	Silver Interactive 3
	$[...***...]

	Silver Interactive + Automation 4
	$[...***...]

	Interactive Gold 5
	$[...***...]

	2-Way Voice
	$[...***...]

	Pro Video 6
	$[...***...]

	Video Expansion Packs 7
	$[...***...]

	Video 24x7 8
	$[...***...]

1 Wireless Signal Forwarding (WSF) includes Daily Supervision, Usage Reporting, and Level 1 Smash and Crash and all enterprise management capabilities associated with AirFX as well as the Business Intelligence module.
2 Home Center includes all of the features of Wireless Signal Forwarding, as well as Level 2 Smash and Crash, remote arming, alerts for alarm and other system events, and cellular 2-Way Voice, and 5 day weather as well as severe weather alerts. 
3 Silver Interactive includes all of the features of Wireless Signal Forwarding, as well as Level 2 Smash and Crash, remote arming, alerts with up to 30 sensors for alarm events, system events, and non-alarm sensor events, and cellular 2-Way Voice, and 5 day weather and severe weather alerts.
4 Silver Interactive + Automation includes all of the features of Silver Interactive as well as automation of thermostats, lights, locks, and garage doors.
5 Interactive Gold includes all of the features of Silver Interactive + Automation as well as Image Sensor photo notifications and Identity Theft Protection.
6 Pro Video includes support for up to 4 cameras, with 1,000 clips of cloud storage and 1,000 clip uploads per month.
7 Video Expansion Packs require a Pro Video subscription and allow support for up to an additional 4 cameras, as well as 5,000 clips of cloud storage and 5,000 clip uploads per month.
8 Video 24x7 provides continuous recording service, and requires a Pro Video subscription and a Streaming Video Recorder.

In addition to the above capabilities, the following business tools will be included at [...***...] to Monitronics: [...***...], and [...***...].

Alarm.com will charge an [...***...] of up to $[...***...] per [...***...] for each of [...***...], and [...***...] accounts when used in [...***...].
    

** Alarm.com Confidential **

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*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Schedule B

Pricing for Accounts when Account Production Threshold Not Met 

		
	1.
	Pricing for [...***...] accounts if [...***...] creation rate is between [...***...] and [...***...] (based on the  [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date)

Wireless Signal Forwarding    $    [...***...]
Home Center    $    [...***...]
Silver Interactive    $    [...***...]
Silver Interactive + Automation    $    [...***...]
Interactive Gold    $    [...***...]
2-Way Voice    $    [...***...]
Pro Video*    $    [...***...]
Video Expansion Packs    $    [...***...]
Video 24x7    $    [...***...]

		
	2.
	Pricing for [...***...] accounts if [...***...] creation rate is between [...***...] and [...***...] accounts (based on the  [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date)

Wireless Signal Forwarding    $    [...***...]
Home Center    $    [...***...]
Silver Interactive    $       [...***...]
Silver Interactive + Automation    $      [...***...]
Interactive Gold    $    [...***...]
2-Way Voice    $    [...***...]
Pro Video*    $    [...***...]
Video Expansion Packs    $    [...***...]
Video 24x7    $    [...***...]

		
	3.
	Pricing for [...***...] accounts if [...***...] creation rate is between [...***...] and [...***...] accounts (based on the  [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date)

Wireless Signal Forwarding    $    [...***...]
Home Center    $    [...***...]
Silver Interactive    $   [...***...]
Silver Interactive + Automation    $   [...***...]
Interactive Gold    $    [...***...]
2-Way Voice    $    [...***...]
Pro Video*    $    [...***...]
Video Expansion Packs    $    [...***...]
Video 24x7    $    [...***...]

** Alarm.com Confidential **

- 10 –
*** Confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		
	4.
	Pricing for [...***...] accounts if [...***...] creation rate is [...***...] accounts (based on the  [...***...] of Alarm.com accounts activated by Monitronics or a third party on Monitronics’ behalf after the Amendment Effective Date)

Wireless Signal Forwarding    $    [...***...]
Home Center    $    [...***...]
Silver Interactive    $   [...***...]
Silver Interactive + Automation    $   [...***...]
Interactive Gold    $    [...***...]
2-Way Voice    $    [...***...]
Pro Video*    $    [...***...]
Video Expansion Packs    $    [...***...]
Video 24x7                     $   [...***...]

** Alarm.com Confidential **

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