Document:

Exhibit 10.1

 

July
26, 2006

VIA
FEDERAL EXPRESS

V.
Randy White, Ph.D.

15080 La Planideras

Rancho Santa Fe, CA 92067

Dear Dr. White:

Your employment with Xenomics, Inc. (“Xenomics”) ceased on February 23,
2006 (the “Termination Date”). Although Xenomics is not obligated to pay
you any severance in connection with the termination of your employment,
because we hope to part amicably, Xenomics is prepared to provide you with the
severance benefits and other consideration set forth in this Agreement (this “Agreement”)
in consideration of your executing, delivering and performing all of the terms,
conditions and obligations applicable to you under this Agreement.

Be advised that you will have at
least twenty-one (21) days to consider this Agreement, including the waivers
and releases set forth below.  This
Agreement, however, shall become
automatically null and void after August 16, 2006 unless it is executed by you and returned to L. David Tomei’s attention
on or prior to that date. You are entitled to revoke this Agreement in the
manner provided in Section 11(g) below, including the waivers and releases
contained herein, within seven (7) days after its execution.
Accordingly, the Effective Date of this Agreement (the “Effective Date”) shall be the eighth (8th) day following your execution of this Agreement
(unless this Agreement is revoked by you as provided in Section 11(g)).

Now, therefore, in consideration of the recitals, covenants and promises contained
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, you and Xenomics
agree as follows:

1.             Termination of Employment/Effect
on Benefits

(a)  Your last day of employment was
the Termination Date. You will not accrue credit toward vacation or the
vesting of any other rights, benefits or awards after that date.

(b)  You hereby represent, warrant
and confirm that: (i) as of the date of your execution and delivery of this
Agreement, you have returned to the Company (as that term is defined in Section
3(a) below) all of  the Company’s
property, including, without limitation, Confidential and Proprietary
Information (as that term is defined in Section 6(b) below), office keys,
Company identification cards, access passes, and all documents, files,
equipment, computers, laptops, printers, telephones, cell phones, beepers, pagers, palm pilots, BlackBerry or similar
devices, fax machines, credit cards, computer software, diskettes and access
materials and other property prepared by, for or belonging to the Company (all of
such 

 

 

Company Property being referred to herein as “Company Property”); (ii)
you have not and will not utilize the Company Property or make or retain
any copies, duplicates, reproductions or excerpts of the Company Property; and
(iii) you have not and will not access, utilize or affect in any manner, any of
the Company Property, including, without limitation, its electronic
communications systems or any information contained therein,

(c)  Your Company sponsored health
and dental coverage ceased as of the Termination Date.   In the event you elect to receive health
insurance coverage in accordance with the federal COBRA statute, the Company
shall pay, on your behalf, any required premiums for coverage under any one health
plan of your choice (which you were covered under as an employee of the Company
prior to the Termination Date), for any period in which you remain eligible for
such COBRA benefits, through and including May 23, 2006 ( the “Health Benefits”).  You have elected to receive, in cash, the
premium payments to be paid on your behalf which aggregate $3,284.88 (the “Premium
Payments”).  Premium and other payments
required for any further continued health insurance coverage, in accordance
with COBRA, shall be the sole responsibility of Employee.

(d)  Company-provided services ceased as of the
Termination Date. You may continue to receive
any Company services at your own cost after that date.

(e)  This Agreement is in full and
complete satisfaction and is in excess of all obligations or agreements of the
Company to you, including for: (i) any severance benefits in connection with
the termination of your employment or otherwise; (ii) any incentives, awards
and bonuses, (iii) any accrued, unused vacation pay, sick pay and personal day
pay to which you may have been entitled to under Company policies through the
Termination Date; and (iv) any other compensation, deferred, contingent or
otherwise, or any program or award thereunder (collectively, “Incentive
Plans”) or any other payment that may have been due to you for any reason whatsoever.

(f)   Nothing in this Agreement will
affect your eligibility for unemployment benefits to the extent provided by law.

(g)  Your reimbursable expenses of
$3,970.03 will be paid upon execution of this Agreement.

2.         Consideration

(a)  Subject to the terms and conditions contained
in this Agreement, and in addition to
our commitment to provide you with the other
benefits set forth herein, if you execute and deliver to the Company
this Agreement by the date set forth above and are in full
compliance with all of the terms
and conditions contained herein, then:

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(1)           the Company will pay you Eighty Thousand Six Hundred
Twenty Five Dollars ($80,625) (the “Severance”) subject to reduction for
all applicable withholding and other taxes and deductions, as follows:

(i)            Ten Thousand Dollars ($10,000) will be paid in a lump sum
on the Effective Date.

(ii)           The remaining Seventy Thousand Six Hundred Twenty Five
Dollars ($70,625) will be paid no later than September 5, 2006 (the “Future
Payments”); and

(2)           the expiration date of your stock options which are vested
as of February 23, 2006 will be extended until August 23, 2006.

(b)  Without waiver of the Company’s
remedies for any breach of this Agreement as set forth herein
(including, without limitation, under Sections 9 and 13 below), the Future Payments and the payment of the Premium Payments
are expressly conditioned on your not, at any time, being in breach of this
Agreement.

3.             Release

(a)  By countersigning and delivering to the
Company the enclosed copy of this Agreement, and in consideration of the
Company’s promise to provide you with the Severance and other benefits and
consideration set forth in this Agreement, you hereby release and discharge:
(i) Xenomics or any of its respective present and former parent corporations,
their now or hereafter existing predecessors, joint venturers, partners,
affiliates, subsidiaries, successors, assigns and otherwise related entities
(collectively, the “Company”), and (ii) the Company’s incumbent or former officers,
directors, employees, consultants, agents, representatives, successors and assigns (the Company, together with the
persons listed in this Section 3(a) being referred to collectively as, the “Released
Entities and Persons” and each, a “Released Entity or Person”), from any and
all claims, liabilities, demands or causes of action of whatever nature, known
or unknown, inchoate or otherwise, whether based in contract (written, oral,
express, implied or otherwise) and/or any local, state or federal statute,
regulation or other law (including common law) or in equity, that you had, ever
had, or could have had as of the date of this Agreement (and to the extent this
Agreement is not revoked as of the Effective Date) including, without
limitation, any claim arising out of or in any way connected with or related
to:

(i)           your employment by the Company and/or
the termination thereof,

(ii)          any claim for additional wages or pay,
severance pay, benefits, incentives, awards, commissions or bonuses

(iii)         any claim regarding bias, age, sex,
religion, religious creed, citizenship, color, race, ancestry, national origin,
veteran, familial or marital status, sexual orientation or 

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preference, genetic predisposition or carrier status,
physical or mental disability or past or present history of the same or any
other form of discrimination, including, without limitation, any rights or
claims under the Americans with Disabilities Act as amended, (“ADA”), the Age Discrimination in
Employment Act of 1967 (“ADEA”), as amended, the New York Constitution, the New
York Labor Law, as amended, the New York State Executive Law (including New
York State’s Human Rights Law), as amended, the New York City Administrative
Code, as amended, Title VII of the Civil Rights Act of 1964, as amended, (“Title VII”), the Civil Rights Act of 1991, Sections 1981,
1983, 1985 and 1986 of Title 42 of the United States Code, as amended, the
Family and Medical Leave Act of 1990, the Equal Pay Act, the Fair Labor
Standards Act, as amended, the Execrative Retirement Income Security Act of
1974, as amended; and any other federal, state, local law or ordinance;

(iv)        any claim for: (a) wrongful discharge,
harassment or retaliation; (b) intentional or negligent infliction of emotional
harm, defamation or any other tort; (c) fraud, misrepresentation or conversion;
or (d) mental, physical or other personal injuries, or pain and suffering;

(v)         any Company-sponsored health or dental
(other than for claims occurring prior to February 23, 2006), life insurance, savings, retirement or
other benefit plan offered by the Company (other than claims for vested
benefits); and/or

(vi)        any expenses, disbursements, costs, tax
gross-ups, fees or other expenses, including without limitation attorneys’ fees
and  disbursements.

(b)  You hereby represent, warrant and confirm that
you are not suffering from any work-related physical or mental impairment and
are not suffering from any work-related injury or disease as of the date
hereof.

(c)  If the release contained in this Section 3 of
this Agreement is found to be invalid or unenforceable in any way, you agree to
execute and deliver to the Company a revised release which will effectuate your
intention to release the Released Entities and Persons unconditionally, as set
forth above in this Section 3, to the maximum extent permitted by law.

4.             Covenant Not to Sue

(a)  You hereby represent, warrant and confirm that
you have not filed, with any local, state or federal court or administrative
agency, any complaints, charges, or claims for relief against the Company or
any other Released Entity or Person arising out of any acts or omissions any of
them allegedly may have committed in connection with this Agreement, your
employment or the termination of such employment or any other matter. In
addition, you hereby represent and warrant that you have not authorized any
other person or entity to assert any claim on your behalf and you do not know
of arty basis upon which any claim could reasonably be made against you, the
Company or any other Released Entity or Person. Other than for claims arising
under the ADEA, you hereby also agree, to the fullest extent permitted by law,
not to 

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commence, encourage, facilitate or participate in any
action or proceeding for damages, reinstatement, injunctive or any other type
of relief, in any state, federal or local court or before any administrative
agency relating to this Agreement, the enforceability of any, provision thereof, your employment with the
Company or the-termination
thereof (unless requested by the Company) or any other matter involving the
Company.

(b)  Nothing in this Agreement is intended to
prevent you from filing a charge or participating in any investigation or
proceeding conducted by the Equal Employment Opportunity Commission (the “Commission”).
If you countersign the enclosed Agreement, however, you will not be able to
obtain any relief or recovery upon any charge filed with the Commission,
including costs and attorneys’ fees, except where permissible by law or
regulation. This Agreement does not affect your right to challenge the validity
of the ADEA waiver set forth in Section 11 below.

5.         Confidentiality
of Agreement

You hereby agree to keep the existence and terms of this Agreement
strictly confidential and not to disclose them (or any of the Agreement’s terms
or conditions) to any persons other than your legal and/or financial advisors
and members of your immediate family (who shall also be bound by the foregoing
confidentiality covenant), except as may be required by law, in which case
you shall notify the Company in writing in
advance of such disclosure and afford the Company an opportunity to respond and
to seek protective relief prior to such
disclosure. You hereby agree to cooperate with the Company in obtaining
confidential treatment in connection with any such legally compelled
disclosure.

6.             Confidential and Proprietary Information of the
Company

(a)  You hereby acknowledge and
agree that: (i) during the course of your employment, you have had access to
Confidential and Proprietary Information (as defined in Section 6(b) below),
(ii) you have not taken nor are you in possession of any Confidential or
Proprietary information, and (iii) you shall retain in strict confidence and shall not use for any purpose whatsoever or
divulge, disseminate, copy, disclose to any third party, or otherwise use any
Confidential or Proprietary Information.

(b)  As used in this Agreement, the
term “Confidential and Proprietary Information”
means any non-public information of the Company or any other Released Entity or
Person, including, without limitation: (i) information of a commercially
sensitive, proprietary or personal nature or that, if disclosed, could have an
adverse affect on the Company’s or any other Released Person or Entity’s standing in the community, its business reputation, operations
or competitive
position; (ii) information and
documents that have been designated or treated as confidential; (iii) financial
data, customer, vendor or shareholder
lists or data; advertising, business, sales or marketing plans, tactics and
strategies; projects: technical or strategic information about any of the
Company’s businesses economic or commercially sensitive information, policies,
practices, procedures or techniques; trade secrets and other

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intellectual
property; merchandising, advertising, marketing or sales strategies or
plans; litigation theories or strategies; terms of agreements with third parties and third party trade secrets;
information about the Company’s (and/or, to the extent applicable any other
Released Person’s or Entity’s) employees compensation, (including, without
limitation, bonuses, incentives and commissions), or other human resources
policies, plans and procedures, or any other non-public material or information
relating to the Company or any other Released Entity or Person; and (iv) or
any member of the Company’s senior management team or Board of Directors,
whether prior to your employment by the Company or subsequent to such
employment.

(c)  You hereby acknowledge and agree that the
Company is the owner of all rights, title and interest in and to all
Confidential and Proprietary Information, regardless of whether it was
developed or prepared by you or with your cooperation during the course of your
employment by the Company or otherwise, including documents, tapes, videos,
designs, plans, formulas, models, processes, computer programs, inventions
(whether patentable or et), trademarks, software or other intellectual
property, schematics, other technical, business, financial, advertising, sales,
marketing, customer or product development plans, forecasts, strategies,
information and materials (in any media whatsoever) (collectively, the “Materials”).
You further acknowledge and agree that the Company will have the sole and
exclusive authority to use the Materials in any manner that it deems
appropriate, in perpetuity, without additional payment to you or any other
restriction.

(d)  If you are at any time required to disclose
any Confidential and Proprietary Information as a result of any federal, state
and local laws or judicial proceedings, then you shall provide the Company with
written notice in advance of such disclosure and afford the Company an
opportunity to respond and to seek protective relief prior to such disclosure,
You hereby agree to cooperate with the Company in obtaining confidential
treatment in connection with any such legally compelled disclosure.

7.            Non-Solicit

(a)  You hereby
represent, warrant and confirm that you will not for a period of one (1)
year from the date hereof, hire, seek to hire, or cause any person or entity
to hire or seek to hire (without the prior written consent of the Company),
directly or indirectly (whether for your own interest or any other person or
entity’s interest) any current employee of the Company. This restriction
does not apply to any employee who was
discharged by the Company.

(c)  You hereby acknowledge that this Non-Solicit
provision is necessary for the Company’s legitimate protection of its business interests, are
reasonable, and will not prevent you from obtaining other employment or a
livelihood.

 

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8.             Non-Disparagement

(a)  You hereby agree, for yourself
and any other representatives while they are acting on your behalf, that
you (and they) have not and will not, directly or indirectly, disparage, make negative statements about
or act in any manner which is intended to or
does damage to the goodwill or business or personal reputations of the Company,
or any Released Person or Entity.

(b)  This Agreement in no way
restricts or prevents you from providing truthful testimony as may be required
by court order or other legal process; provided that you afford the Company
advance written notice and an appropriate period of time and opportunity
to respond prior to such disclosure.

9.             Remedies
for Breach of Agreement

(a)  You hereby acknowledge and
agree that your breach or threatened breach of Sections 5, 6, 7 or 8 will cause
irreparable harm to the Company for which monetary damages alone will
not provide an adequate remedy. Accordingly, you agree that if you violate any of these provisions, the Company,
in addition to any other rights or remedies
available to it under this Agreement or otherwise, will be entitled to an
injunction to be issued by any court of competent jurisdiction restraining you
from committing or continuing any violation of these provisions, without
the necessity of showing actual damage and without any bond or other security
being required.

(b)  In addition to any other
remedies available under the law or at equity and including those set forth in
Sections 2 and 9(a) above and 13 below, if you breach any of the provisions of
this Agreement, this Agreement shall terminate and you will be required to
immediately pay back to the Company, upon demand the Severance and the Premium
Payments.  You further understand that
this provision shall not be effective
with respect to, or adversely affect your rights under, the ADEA with respect
to any challenge you make as to the validity of the ADEA waivers in Section 3
above or 11 below.

10.           Further Cooperation

You hereby
represent, warrant and agree that, after the Termination Date, you will not
provide any regular services to the Company or represent yourself as a Company
agent. If, however, the Company so requests, you agree to cooperate fully with
the Company in connection with any matter with which you were involved prior to
the Termination Date, or in any litigation or administrative proceedings or
appeals (including any preparation therefor) where the Company believes that
your personal knowledge, attendance and participation could be beneficial to
the Company. Such cooperation shall include, but is not limited to, your
providing truthful testimony by affidavit, deposition, testimony or otherwise
in connection with a trial, arbitration or similar proceeding, upon the Company’s
reasonable request.

11.                                 Additional Waivers and Acknowledgements
Including Express
Waiver Under
the ADEA

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(a)  By execution of this Agreement, you expressly
waive any and all claims relating to age discrimination you may have under the
ADEA.

(b)  You hereby acknowledge that you have read this
Agreement in its entirety and understand all of its terms and conditions and
that you knowingly and voluntarily assent to all of the terms and conditions
contained herein, including without limitation, the waiver and release set
forth in Section 3, and that your waiver of rights or claims arising under the
ADEA is in writing and is understood by you.

(c)  You expressly understand that by your
execution of this Agreement, you do not waive any rights or claims that may
arise after the date this Agreement is executed (other than, if this Agreement
is not revoked by you, rights or claims arising on or prior to the Effective
Date).

(d)  You hereby acknowledge that the waiver of your
rights and/or claims existing under the ADEA is in exchange for consideration
which is in excess of any severance or other benefits which you have received or may have been
entitled to receive contractually or under the policies of the Company in
connection with the termination of your employment.

(e)  You hereby acknowledge that you have been
advised to consult with an attorney of your choosing prior to executing this
Agreement and specifically in connection with the waivers and releases set
forth in
Section 3 of this Agreement and under this Section 11.

(f)   You have been advised that you have a period
of not less than twenty-one (21) days from the date on which you received a
copy of this Agreement, within which to consider this Agreement, including the
waivers and releases set forth in Section 3 above and under this Section 11, and
that you may choose to sign this Agreement at any time subsequent to the close
of business on the Termination Date, but prior to the expiration of the
twenty-one (21) day period. You hereby acknowledge that if you choose to
execute this Agreement before the expiration of the twenty-one (21) day period,
you do so freely, voluntarily and with full knowledge of your rights.

(g)  You hereby acknowledge that you have been
advised that you are entitled to revoke this Agreement, including all waivers
and releases, within seven (7) days after execution, and that this Agreement, including the waivers
and releases, will not and does not become effective or
enforceable until the seven (7) day revocation
period has expired, Accordingly, if you decide to revoke this Agreement, you
must notify the Company of your revocation in a letter (the “Revocation Letter”)
signed by you and received by L. David
Tomei by no later than 5:01 p.m.
on the seventh (7th) day after you have signed this
Agreement.  For example, if you execute
this Agreement on a Monday, you would have until 5:01 p.m. on the following
Monday for the Company to receive your Revocation Letter. The Revocation Letter
must be sent in accordance with Section 16. A Revocation Letter that is not
received on the seventh (7th) day
by 5:01 p.m. after you have signed this Agreement will be invalid and will not
revoke this Agreement.

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12.           Choice of Law/Forum/Waiver of Jury Trial/Contract
Interpretation

(a)  This Agreement shall be deemed to be made
under, and in all respects shall be interpreted, construed and governed by and
in accordance with, the laws of the State of New York without reference to its
conflict of law principles.

(b)  You hereby irrevocably submit to the
jurisdiction of the courts of the State of
New York and the federalcourts of the United States of America located in the State of New York in respect of
the interpretation and enforcement of the provisions of this Agreement, and you
hereby waive, and agree not to assert, as a defense that you are not subject
thereto or that the venue thereof may not be appropriate, You further hereby
waive your right to a jury trial in any action that arises out of or relates to
any breach or failure to perform by you any of the terms and provisions of this
Agreement. You hereby agree that mailing of process or other papers in
connection with any such action or proceeding in any manner as may be permitted
by law shall be valid and sufficient service thereof.

(c)  You agree that the language of all parts of
this Agreement shall be construed as a whole, and according to its fair
meaning, and not strictly for or against you or the Company.

13.        Indemnification

You hereby agree
to indemnify and hold harmless each Released Person or Entity against any and
all damages or liabilities (including, without limitation, tax liabilities),
expenses and costs that may arise out of or that is in any way related to a breach or failure to perform by you of any of the
terms and provisions of this Agreement. You hereby further agree to pay
any legal fees and costs incurred by the Company to defend any claim you may
bring (other than a proceeding to receive unemployment insurance benefits or
arising under the ADEA) or to enforce any rights the Company may have under
this Agreement.

14.           Non-Assignability

You may not assign this Agreement without the express written consent of
the Company.

15.           Complete Agreement; Amendment

You acknowledge and agree
that this Agreement sets forth the entire agreement of the parties concerning
its subject matter, and supersedes any and all prior agreements and
discussions. This Agreement may be modified only by a written instrument signed
by you and the Company.

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16.           Notices

(a)  My notice required or permitted under this
Agreement shall be in writing and shall be deemed to have been duly given if
sent by personal delivery or Federal Express to such party at the address below
or such other address as a party hereto shall have last designated by notice to
the other party. Notice shall be deemed delivered when actually delivered to
such address.

	
  If to V. Randy White, Ph.D.:

  
	
   

  
	
  15080 La Planideras

  
	
  Rancho Santa Fe, CA 92067

  
	
   

  
	
  With a copy to:

  
	
   

  
	
   

  
	
  If to the Company:

  
	
   

  
	
  420 Lexington Avenue, Suite 1701

  
	
  New York, NY 10170

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Sichenzia Ross Freidman Ference LLP

  
	
  1065 Avenue of the Americas, 21st Floor

  
	
  New York, NY 10018

  
	
  Attention: Jeffrey J. Fessler, Esq.

  

 

17.           No Admission of Liability

You hereby acknowledge that nothing contained in this Agreement shall
constitute an admission of liability or wrongdoing on the part of the Company
and that nothing contained herein or therein should be construed as such.

We wish you success in your future undertakings.

	
  

   

  	
  Sincerely yours,

  
	
   

  	
  By:

  	
  

  
	
   

  	
   

  	
  L. David Tomei,
  Chief Executive Officer

  

 

	
  Accepted and Agreed to:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  
			

 

 10Exhibit
4.3

SUPPLEMENTAL
INDENTURE

This Supplemental
Indenture (this “Supplemental Indenture”), dated
as of May 30, 2006, between Monitronics Canada, Inc., a Delaware corporation
(the “Guaranteeing Subsidiary”), a subsidiary
of Monitronics International, Inc. (or its permitted successor), a Texas
corporation (the “Company”), the Company and The
Bank of New York Trust Company, N.A. (or its permitted successor), as trustee
under the Indenture referred to below (the “Trustee”).

W I T N E S S E T
H

WHEREAS, the
Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of August 25, 2003 providing for the
issuance of 113/4% Senior Subordinated Notes due
2010 (the “Notes”);

WHEREAS, the
Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to
which the Guaranteeing Subsidiary shall unconditionally guarantee all of the
Company’s obligations under the Notes and the Indenture on the terms and
conditions set forth herein (the “Note Guarantee”);
and

WHEREAS, pursuant
to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and
the Trustee mutually covenant and agree for the equal and ratable benefit of
the Holders of the Notes as follows:

1. Capitalized
Terms.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

2. Agreement
to Guarantee.

(a)                                  The
Guaranteeing Subsidiary, along with all other Guarantors, jointly and
severally, fully and unconditionally, guarantees to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of the
Indenture, the Notes or the obligations of the Company hereunder or thereunder,
that:

(i)                                     the
principal of, premium, if any, and interest and Liquidated Damages, if any, on
the Notes will be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal,
premium, if any, and interest and Liquidated Damages (as defined in the
Indenture), if any, on the Notes, if lawful (subject in all cases to any
applicable grace period provided herein), and all other obligations of the
Company to the Holders or the Trustee hereunder or thereunder will be promptly
paid in full or performed, all in accordance with the terms hereof and thereof.

 

(ii)                                  in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. Failing payment when due of any amount
so guaranteed or any performance so guaranteed for whatever reason, the
Guaranteeing Subsidiary shall be jointly and severally obligated to pay the
same immediately. The Guaranteeing Subsidiary agrees that this is a guarantee
of payment and not a guarantee of collection.

(b)                                 The
Guaranteeing Subsidiary hereby agrees that, to the maximum extent permitted
under applicable law, its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or the
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company, any action to enforce the
same or any other circumstance that might otherwise constitute a legal or
equitable discharge or defense of a Guarantor.

(c)                                  The
Guaranteeing Subsidiary, subject to Section 6.06 of the Indenture, hereby
waives diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that this Note Guarantee shall not be discharged
except by complete performance of the obligations contained in the Notes and
the Indenture.

(d)                                 The
Guaranteeing Subsidiary agrees that if any Holder or the Trustee is required by
any court or otherwise to return to the Company, the Guarantors, or any
custodian, trustee, liquidator or other similar official acting in relation to
any of the Company or the Guarantors, any amount paid by any of them to the
Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.

(e)                                  The
Guaranteeing Subsidiary agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby.

(f)                                    The
Guaranteeing Subsidiary agrees that, as between the Guarantors, on the one
hand, and the Holders and the Trustee, on the other hand, (x) the maturity of
the obligations guaranteed hereby may be accelerated as provided in Article Six
of the Indenture for the purposes of this Note Guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby, and (y) in the event of any declaration
of acceleration of such obligations as provided in Article Six of the
Indenture, such obligations (whether or not due and payable) shall forthwith
become due and payable by the Guarantors for the purpose of this Note
Guarantee.

(g)                                 The
Guaranteeing Subsidiary shall have the right to seek contribution form any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of Holders under the Note Guarantee.

 

(h)                                 The
Guaranteeing Subsidiary confirms that it is the intention of such Guaranteeing
Subsidiary that its Note Guarantee not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to
the extent applicable to its Note Guarantee and, to effectuate the foregoing
intention, agrees hereby irrevocably that the obligations of such Guaranteeing
Subsidiary will be limited to the maximum amount as will, after giving effect
to all other contingent and fixed liabilities of such Guaranteeing Subsidiary
that are relevant under such laws, and after giving effect to any collections
from, rights to receive contribution from or payments made by or on behalf of
any other Guarantor in respect of the obligations of such other Guarantor under
the Indenture, result in the obligations of such Guaranteeing Subsidiary under
its Note Guarantee not constituting a fraudulent transfer or conveyance.

3. Agreement
to Subordinate.

The Note Guarantee
of each Guaranteeing Subsidiary shall be subordinated to all Senior Debt of
such Guarantor, as and to the extent provided in Article Ten of the Indenture.

4. Execution
and Delivery. The Guaranteeing Subsidiary agrees that the Note Guarantees
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Note Guarantee.

5. Guaranteeing
Subsidiary May Consolidate, Etc., on Certain Terms.

(a)                                  A
Guarantor may not sell or otherwise dispose of all or substantially all of its
assets, or consolidate with or merge with or into (whether or not such
Guarantor is the surviving Person) another Person, other than the Company or
another Guarantor, unless:

(i)                                     immediately
after giving effect to that transaction, no Default or Event of Default exists;
and

(ii)                                  either:

(A)                              the
Person acquiring the property in any such sale disposition or the Person formed
by or surviving any such consolidation or merger (if other than the Guarantor)
is a corporation or limited liability company organized or existing under the
laws of the United States, any state thereof or the District of Columbia and
assumes all the obligations of that Guarantor under the Indenture, its Note
Guarantee and the Registration Rights Agreement pursuant to a supplemental
indenture reasonably satisfactory to the Trustee; or

(B)                                such
sale or other disposition or consolidation or merger complies with Section 4.10
of the Indenture.

(b)                                 In
case of any such consolidation, merger, sale or conveyance governed by Section
4(a) hereof and upon the assumption by the successor Person, by supplemental
indenture, executed and delivered to the Trustee and reasonably satisfactory in
form to the

 

Trustee, of the Note
Guarantee endorsed upon the Notes and the due and punctual performance of all
of the covenants and conditions of the Indenture to be performed by a
Guarantor, such successor Person shall succeed to and be substituted for a
Guarantor with the same effect as if it had been named herein as a
Guarantor.  Such successor Person
thereupon may cause to be signed any or all of the Note Guarantees to be
endorsed upon all of the Notes issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee.  All the Note Guarantees so issued shall in
all respects have the same legal rank and benefit under the Indenture as the
Note Guarantees theretofore and thereafter issued in accordance with the terms
of the Indenture as though all of such Note Guarantees had been issued at the
date of the execution hereof.

6. Release.

(a)                                  Any
Guarantor will be released and relieved of any obligations under its Note
Guarantee, (i) in connection with any sale or other disposition of all of the
Capital Stock of that Guarantor to a Person that is not (either before or after
giving effect to such transaction) an Affiliate of the Company, if the sale of
all such Capital Stock of that Guarantor complies with Section 4.10 of the
Indenture; (ii) if the Company properly designates that Guarantor as an
Unrestricted Subsidiary under the Indenture or (iii) upon the release or
discharge of the Guarantee which resulted in the creation of such Note
Guarantee pursuant to Section 4.17(a) and (b) of the Indenture, except a
discharge or release by or as a result of payment under such Guarantee.  Upon delivery by the Company to the Trustee
of an Officers’ Certificate and an Opinion of Counsel to the effect that one of
the foregoing requirements has been satisfied and the conditions to the release
of a Guarantor under this Section 5 have been satisfied, the Trustee shall
execute any documents reasonably required in order to evidence the release of
such Guarantor from its obligations under its Note Guarantee.

(b)                                 Any
Guarantor not released from its obligations under its Note Guarantee shall
remain liable for the full amount of principal of and interest and Liquidated
Damages, if any, on the Notes and for the other obligations of any Guarantor
under this Supplemental Indenture.

7. NEW
YORK LAW TO GOVERN.  THE LAW OF THE
STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE.

8. Counterparts.
The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

9. Effect of
Headings. The Section headings herein are for convenience only and shall
not affect the construction hereof.

10. Trustee.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary and the
Company.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

	
   

  	
  MONITRONICS CANADA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael R.
  Meyers

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael R.
  Meyers

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President
  and

  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MONITRONICS
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael R.
  Meyers

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael R.
  Meyers

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President
  and

  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Bank of New
  York Trust Company, N.A.,

  
	
   

  	
  AS TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tamara K.
  Ellis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Tamara K. Ellis

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

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